CONVERSE ANNOUNCES FIRST QUARTER RESULTS.NORTH READING, Mass.--(BUSINESS WIRE)--May 9, 1995--Converse Inc. (NYSE NYSE See: New York Stock Exchange :CVE (Common Vulnerabilities and Exposures) A list of information security exposures and vulnerabilities sponsored by US-CERT and maintained by the MITRE Corporation. ) today announced financial results for the first quarter of fiscal 1995 ended April 1, 1995. Revenues for the quarter increased 6.8% to $131.2 million compared to $122.9 million in the first quarter of 1994. Operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before increased 8.9% to $17.1 million versus $15.7 million in the first quarter of last year. Net earnings reached $8.5 million, or $0.51 per share, over the $8.2 million, or $0.49 per share on a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis in the comparable period last year. The Company stated that global sales were up 6.8% with international sales showing strong growth due to the favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impact of the conversion of major European distributors to direct Converse (logic) converse - The truth of a proposition of the form A => B and its converse B => A are shown in the following truth table: A B | A => B B => A ------+---------------- f f | t t f t | t f t f | f t t t | t t operating units operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon , combined with substantial market share growth in all product categories. The increase is also a result of the strength of the Company's athleisure category and the growth of the cross training category. The first quarter sales increases were partially offset by weaker sales in the basketball and children's categories, and a softness in the Company's domestic business, which is in line with the significant slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in U.S. retail sales. Gib Ford, Chairman and Chief Executive Officer, said, "We are pleased with the results of our global investments over the past few years, which are continuing to enhance our infrastructure and build upon our position within the global marketplace. In addition, we have instituted a number of strategic programs aimed at stimulating both our domestic and global sales growth including, the creation of an advanced vision and technology group to develop innovative and break-through product and technology designs. This group was recently moved to a new and separate R&D facility close to corporate headquarters. We have also implemented a number of global cost reduction programs and organizational efficiencies." Mr. Ford concluded, "Our long-term outlook is positive, but due to industry conditions, we are remaining cautious about the second and third quarters of this year. In a separate release today, we announced the signing of a definitive agreement to purchase Apex One, Inc. This acquisition will provide Converse with a complementary apparel product line and a strategic entry point into the licensed apparel sector, plus significant relationships with the National Football League, the United States Olympic Committee “USOC” redirects here. For USOC in telephony, see registered jack. The United States Olympic Committee (USOC) is a non-profit organization that serves as the National Olympic Committee (NOC) for the United States and coordinates the relationship between the and numerous colleges and universities in North America Universities in North America have an extensive history of being some of the leading educational institutions in the world. North American universities were originally modelled after universities in Europe but have developed different systems of their own. . We think this business will offer important long-term opportunities for the Converse brand and will contribute to our earnings growth in 1996." The Company stated that at the close of the first quarter, global backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. stood at $157 million versus $190 million at April 2, 1994, due to the weakness in the U.S. retail market and the timing impact of international orders as the Company's business shifts from distributors to direct operating units.
CONVERSE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended Three Months Ended
April 1, 1995 April 2, 1994
Net Sales $131,196 $122,910 Cost of sales 85,527 78,617 Gross profit 45,669 44,293 Selling, general and administrative expenses 31,888 31,224 Royalty income 3,303 2,589 Earnings from operations 17,084 15,658 Interest expense 2,951 1,855 Other income (expense), net (68) (333) Earnings before income tax expense 14,065 13,470 Income tax expense 5,556 5,242 Net earnings $8,509 $8,228 Net earnings per share $0.51 $0.49 Weighted average common shares 16,692 16,692
CONVERSE INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Unaudited)
April 1, 1995 December 31, 1994
Assets
Cash and cash equivalents $5,342 $4,992
Accounts receivables, net 120,161 68,921
Inventories 89,113 99,482
Other current assets 10,889 11,540
Property, plant and
equipment, net 21,234 20,349
Other assets 18,180 18,442
Total assets $264,919 $223,726
Liabilities and Stockholders' Equity Short-term debt $39,910 $5,813 Other current liabilities 41,371 47,722 Long-term debt, less current maturities 80,000 77,087 Current assets in excess of reorganization value 36,012 36,532 Other liabilities 11,620 11,585 Stockholders' equity, net 56,006 44,987 Total liabilities and stockholders' equity $264,919 $223,726 Converse Inc., the largest U.S. manufacturer of athletic shoes An athletic shoe is a generic name for a shoe designed for sporting and physical activities, and is different in style and build than a dress shoe. Originally known as sporting apparel, today they are known as casual footwear. , is a leading designer, manufacturer and marketer of high quality athletic and leisure footwear Footwear consists of garments worn on the feet. It is worn for a variety of reasons, including protection against the environment, hygiene and adornment. Usually, socks and other hosiery are worn between the feet and the footwear, except for sandals and flip flops (thongs). and is a licensor of sports apparel and accessories that are distributed worldwide through over 9,000 athletic specialty, sporting goods Noun 1. sporting goods - sports equipment sold as a commodity commodity, trade good, good - articles of commerce sports equipment - equipment needed to participate in a particular sport , department and shoe stores. CONTACT: Converse Inc. Investor Contact: Donald J. Camacho, 508/664-1100 or Morgen-Walke Associates Robert Jones/Christine DiSanto, 212/850-5600 or Media Contact: Jennifer Murray Jennifer Murray born June, 1940 in Providence, Rhode Island, who in 1997 circumnavigated the world aboard a Robinson R44 helicopter the distance of 36,000 miles in 97 days, earning her the current Guinness World Record for , 508/664-1100 or Morgen-Walke Associates Stacy Berns, 212/850-5600 |
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