CONVERSE ANNOUNCES SECOND QUARTER RESULTS.North Reading, Mass.--(BUSINESS WIRE)--August 15, 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 second quarter and six-month period ended July July: see month. 1, 1995. Results for the latest quarter were in line with the numbers reported by the Company last week. Revenues for the 1995 second quarter were $89.3 million, compared to $104.2 million in the second quarter of 1994. 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 incurred a loss of $5.9 million after taxes, excluding non-recurring charges, compared with net earnings from operations of $4.3 million in the second quarter of last year. Results for the 1995 second quarter included a non-recurring charge of $41.6 million ($25.9 million after taxes) for the previously announced write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of the Company's investment in Apex One, Inc., a subsidiary which ceased operations last week, as well as a restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of $1.0 million ($0.6 million after taxes) related to the closing of the Company's Mission, Texas factory. After giving effect to these charges, the net loss was $32.4 million, or $1.94 per share. This compares with net income of $4.3 million, or $0.26 per share in the second quarter of 1994. In addition to the charge related to Apex, results for the 1995 second quarter reflected a decrease of 33% in domestic 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). sales which includes the athletic and athleisure footwear categories as compared with the same quarter of 1994. This was partially offset by continuing strong international sales, which rose 39% for the latest quarter. The Company noted that 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 $139 million at July 1, 1995, versus $169 million at July 2, 1994. This backlog was affected by weakness in the U.S. retail market, as well as the timing impact of international orders as the Company's business shifts from distributors to direct 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 . Additionally, the Company stated orders had improved during July 1995, with backlog at month-end similar to the same period last year. For the first six months of 1995, revenues were $220.5 million, compared to $227.2 million in the 1994 period. Net earnings year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. , excluding non-recurring charges, were $2.7 million after taxes, compared with $12.5 million in the first half of 1994. Including the non-recurring charges for the write-off of the Company's investment in Apex and the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of its manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. , the net loss for the first half of 1995 was $23.8 million, or $1.43 per share. Gib Ford, Chairman and Chief Executive Officer, said, "Despite the unsatisfactory financial performance for the recent quarter we are encouraged by the improvement in our global backlog since the end of the second quarter. As reported previously, we are implementing tough cost reduction measures to improve financial performance, including a restructuring of the corporate organization, the rationalization rationalization, in psychology: see defense mechanism. of manufacturing and distribution operations, workforce reductions and other decreases in SG&A. As a result of these actions, we expect to reduce operating costs operating costs npl → gastos mpl operacionales in 1996 by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $15 million." Mr. Ford continued, "We are increasing our marketing thrust in the international area, where sales are continuing to grow at a strong pace. While the domestic footwear market remains challenging, our Spring 1996 products and new Converse head-to-toe apparel and footwear programs are meeting with good responses from retailers." -0-
CONVERSE INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
7/1/95 7/2/94 7/1/95 7/2/94
Net Sales $89,324 $104,245 $220,520 $227,155 Cost of sales 59,509 65,351 145,037 143,968 Gross profit 29,815 38,894 75,483 83,187 Selling, general and administrative expenses 42,673 33,060 74,560 64,284 Royalty income 4,448 2,800 7,751 5,389 Earnings (loss) from operations (8,410) 8,634 8,674 24,292 Loss on investment in unconsolidated subsidiary 41,599 - 41,599 - Restructuring expense 1,000 - 1,000 - Interest expense 3,042 1,678 5,993 3,533 Other income (expense), net 1,584 (33) 1,517 (366) Earnings (loss) before income tax (52,467) 6,923 (38,401) 20,393 Income tax expense (benefit) (20,114) 2,615 (14,558) 7,857 Net earnings (loss) $(32,353) $4,308 $(23,843) $12,536 Net earnings (loss) per share $ (1.94) $ 0.26 $ (1.43) $ 0.75 Weighted average number of common shares 16,692 16,692 16,692 16,692
-0-
CONVERSE INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share amounts)
(Unaudited)
July 1, 1995 December 31, 1994
Assets
Current assets:
Cash and cash equivalents $ 5,754 $ 4,992
Receivables, less allowances
of $2,269 and $1,553 respectively 90,907 68,921
Inventories 110,535 99,482
Prepaid expenses and other
current assets 14,587 11,540
Refundable income taxes 11,612 -
Total current assets 233,395 184,935
Property, plant and equipment:
Buildings and improvements 11,467 10,288
Machinery and equipment 15,791 12,315
27,258 22,603
Less accumulated depreciation 3,640 2,254
Net property, plant and equipment 23,618 20,349
Other assets 19,963 18,442
Total assets $276,976 $223,726
Liabilities and Stockholders' Equity
Current liabilities:
Short-term debt 114,391 5,813
Accounts payable 50,391 30,540
Accrued employee compensation 5,039 7,078
Accrued interest expense 437 788
Other accrued expenses 24,590 7,743
Income taxes payable - 1,573
Total current liabilities 194,848 53,535
Long-term debt, less current maturities - 77,087
Senior subordinated debt 9,644 -
Current assets in excess of
reorganization value 35,493 36,532
Deferred postretirement
benefits other than pensions 11,147 11,307
Other liabilities 278 278
Stockholders' equity:
Common stock $1.00 stated value,
50,000,000 shares
authorized, 16,692,156 shares
issued and outstanding 16,692 16,692
Preferred stock, no par value,
authorized 10,000,000 shares
none issued and outstanding - -
Additional paid in capital 3,528 -
Retained earnings 6,074 29,917
Foreign currency translation
adjustment (728) (1,622)
Total stockholders' equity 25,566 44,987
Total liabilities &
stockholders' equity $276,976 $223,726
-0-
Converse Inc., the largest U.S. manufacturer of athletic shoes,
is a leading designer, manufacturer and marketer of high quality
athletic and leisure footwear and is a licensor of sports apparel and
accessories that are distributed worldwide through over 9,000
athletic specialty, sporting goods, department and shoe stores.
CONTACT: Investor Contact: Donald Donald (Domnall, Domhnall, Dumhnuil, Dónall) is an anglicized version of a Scottish or Irish Gaelic personal name, containing the elements dumno "world" and val "rule", viz. "ruler of the world". Compare Dumnorix. J. Camacho Camacho cheated of bride after lavish wedding preparations. [Span. Lit.: Don Quixote] See : Trickery Chief Financial Officer 508/664-1100 or Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. Jones/Christine DiSanto Morgen-Walke Associates 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 Director of Corporate Communications Corporate communications is the process of facilitating information and knowledge exchanges with internal and key external groups and individuals that have a direct relationship with an enterprise. 508/664-1100 or Stacy Stacy may refer to: Places:
Morgen-Walke Associates 212/850-5600 |
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