CONVERSE INC. TO WITHDRAW PUBLIC OFFERING.NORTH READING, Mass.--(BUSINESS WIRE)-- December 19, 1994 -- 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 it has deferred plans to undertake an approximately $40 million public offering of its common stock. On November 17, 1994, INTERCO INTERCO International Code of signals INTERCO International Council on Jewish Social and Welfare Services INCORPORATED, Converse's former parent, spun off 100 percent of the common stock of Converse to INTERCO stockholders. In the information statement distributed to stockholders, Converse stated that it intended to undertake the public offering of common stock in the first quarter of 1995 to pay down bank debt. Given the Company's strong capital structure and the current unfavorable market conditions that have developed subsequent to 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. , the offering has been deferred. "We do not believe that the present market valuation of Converse common stock accurately reflects our strong financial performance for the first nine months of this year and the positive outlook for the future," said Converse Chairman and Chief Executive Officer Gib Ford. He noted that net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight rose 16.6% to $353,507,000 for the nine months ended October 1, 1994, from $303,155,000 in the year-ago period. Net earnings for the latest nine months on a pro-forma basis were $15,156,000, or $0.91 per share. For the 1993 calendar year, net earnings were $9,677,000, or $0.58 per share. "Converse has produced outstanding results over the past three years and we believe the Company will continue to achieve solid sales and profit growth and gain market share in 1994, " Mr. Ford said. 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 licenser 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: Investor Access: 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
508-664-1100
or
Stacy Berns
Morgen-Walke Associates
212-850-5600
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