CONVERSE INC. ANNOUNCES FOURTH QUARTER AND 1994 RESULTS.NORTH READING, Mass.--(BUSINESS WIRE)--February 17, 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 fourth quarter and fiscal year ended December 31, 1994. Record-setting revenues for the year increased 15% to $437.3 million, compared to $380.4 million in 1993, while net earnings increased 45% to $17.6 million, or $1.05 per share, over the $12.1 million, or $0.73 per share last year. Gib Ford, Chairman and Chief Executive Officer, stated, "The significant increase in global sales reflects growth in the core Converse categories of basketball, athleisure and children's products, along with incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. sales from the Psycho Psycho Hitchcock’s classic horror film. [Am. Cinema: NCE, 1249] See : Horror TrainingTM category and double-digit increases in both the U.S. and international markets. The earnings improvement was achieved through sales growth, improvement in gross profit, management of operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. and increased profit from royalty income." On November 17, 1994, Converse common shares were spun-off in the form of a tax free distribution to the stockholders of its former parent company, INTERCO INTERCO International Code of signals INTERCO International Council on Jewish Social and Welfare Services INCORPORATED. 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 results reflect the refinancing Refinancing An extension and/or increase in amount of existing debt. of the Converse debt had it occurred at the beginning of each year, in connection with the spin-off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. . Consequently, on a pro forma basis, net earnings increased 54% to $16.0 million, or $0.96 per share, over the $10.4 million, or $0.62 per share reported in 1993. Revenues for the quarter were $83.8 million compared to $77.3 million in the fourth quarter of 1993. Net earnings were $0.2 million, or $0.01 per share compared to $0.5 million, or $0.03 per share in the same period last year. On a pro forma basis, the net loss for the quarter was $0.3 million, or $0.02 per share, versus net earnings of $0.03 per share in 1993. The Company stated that results for the quarter reflect an increase in spending to support the conversions of its independent European distributors to directly-controlled Converse 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 in a 12-month period, combined with manufacturing rationalization to reduce year-end inventory levels. Mr. Ford commented, "The conversion of our European distributors resulting in the direct control of western European sales is a key growth strategy for Converse as it provides us with greater control over product distribution, resulting in enhanced gross profits, more competitive pricing and service, broader product distribution and improved product mix." "As reported earlier this month, our global backlog was up 15.8% to $174.7 million at year-end, driven by the strength of our athleisure, children's and new Psycho TrainingTM products. At the recent Atlanta Super Show, we received a positive response to the introduction of a broad range of fall products in the basketball, athleisure, Psycho Training, children's, tennis, outdoor and team sports categories. We also introduced our new AccupodTM REACT technology which is featured in the Converse R.A.W. (REACT At Work) EnergyTM basketball shoe." Mr. Ford concluded, "We believe the solid brand franchise we have built at Converse, combined with our expansion and growth strategies, position the Company for continued strength in sales and earnings as we penetrate additional global markets." 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 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. -0-
CONVERSE INC.
CONSOLIDATED OPERATING RESULTS
(In Millions Except Per Share Amounts)
(Unaudited)
Three Months Ended Twelve Months Ended
12/31/94 01/1/94 12/31/94 01/1/94
Net sales $83.8 $77.3 $437.3 $380.4 Gross profit 25.0 25.3 150.8 126.1 Earnings from operations 1.8 5.1 36.1 28.8 Net earnings 0.2 0.5 17.6 12.1 Earnings per share $0.01 $0.03 $1.05 $0.73 Earnings (loss) per share ($0.02) $0.03 $0.96 $0.62 (pro forma) (1) Weighted average common shares outstanding 16.7 16.7 16.7 16.7 (1) Pro forma adjustments included adjustments to reflect the refinancing of Converse debt. CONTACT: Converse Inc. Investor Contact: Donald J. Camacho Chief Financial Officer 508/664-1100 or Robert Jones/Christine DiSanto Morgen-Walke Associates 212/850-5600 or Media Contact: Jennifer C.B. Murray Director of Public Relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most 508/664-1100 or Stacy Berns Morgen-Walke Associates 212/850-5600 |
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