Collins & Aikman Reports 61% Increase in Operating Income.CHARLOTTE, N.C.--(BUSINESS WIRE)--Aug. 20, 1996--Collins & Aikman Aikman is a surname, and may refer to
See: New York Stock Exchange : CKC CKC Canadian Kennel Club CKC Chiang Kai-Shek (former leader of the Republic of China) CKC California Kiwifruit Commission CKC Cool Kids Club CKC Cairo Kidney Center CKC Cold Knife Cone (biopsy) ), reported operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the second quarter ended July July: see month. 27, 1996 of $37.8 million, an increase of 61% compared to $23.5 million in the second quarter of fiscal 1995. Sales for the second quarter rose $82.4 million or 31% to $347.6 million from $265.2 million in the comparable 1995 period. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become for the second quarter of fiscal 1996 was $49.0 million, an increase of 47% compared to $33.3 million in the second quarter of fiscal 1995. Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs E. Hannah Hannah, in the Bible, Samuel's mother. Her song is recalled in the Magnificat. The names Anna and Ann are variants of Hannah. Hannah jubilantly thankful to God for giving son. See : Gratitude , chief executive officer, said, "A very strong North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. automotive build contributed to the positive results for the quarter. Strong convertible build, particularly of the Chrysler Sebring The Chrysler Sebring is a line of mid-size cars sold by Chrysler LLC. There have been three entirely different vehicles with this name:
Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. , has had a very positive impact on us all year. We also experienced a significant improvement in sales at Mastercraft MasterCraft, which is headquartered in Vonore, Tennessee, is a United States manufacturer of recreational boats, founded in 1968.[1] MasterCraft boats are popular for use in water skiing and wakeboarding. , our principal Decorative Fabrics unit this quarter. Generally strong production levels company-wide enabled us to realize operating efficiencies in most of our 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 ." The results for the quarter reflect the discontinuation dis·con·tin·u·a·tion n. A cessation; a discontinuance. Noun 1. discontinuation - the act of discontinuing or breaking off; an interruption (temporary or permanent) discontinuance of the company's Floorcoverings subsidiary which the company plans to sell to more aggressively pursue its automotive growth strategy. As previously reported, the company recognized a $150 million deferred tax asset as of the end of fiscal 1995. As a result of this adjustment, the company's reported tax rate in the second fiscal quarter of 1996 increased to 42%, compared to 18% for the second quarter of fiscal 1995. Income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the second quarter ended July 27, 1996 was $11.8 million or $0.17 per share, a 26% increase compared to $9.4 million or $0.13 per share for the second quarter of 1995. The increase was driven by stronger operating results, partially offset by higher interest expense resulting principally from the acquisition of Manchester Manchester, city, England Manchester (măn`chəstər, –chĕs'tər), city and metropolitan district (1991 pop. 397,400), NW England, on the Irwell, Medlock, Irk, and Tib rivers. Plastics in January January: see month. 1996, a loss on foreign currency of $1.5 million and, most significantly, an increase in the company's reported tax rate as described above. The company recognized a non-cash extraordinary charge of $6.6 million, net of income taxes, in the second quarter related to the refinancing Refinancing An extension and/or increase in amount of existing debt. of its bank facilities. The refinancing was done in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with the company's public debt offering of $400 million principal amount of 11.5% Senior Subordinated Subordinated A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt. Notes Due 2006, priced at 100% of their principal amount, which closed on June June: see month. 10, 1996. The company used the majority of the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of the offering to repay a portion of outstanding bank indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. and intends to use the remainder for general corporate purposes, including working capital, capital expenditures and acquisitions. Net income for the second quarter ended July 27, 1996 was $8.9 million or $0.13 per share, a 42% decrease when compared to $15.4 million or $0.22 per share in the second quarter of 1995. Excluding the extraordinary charge previously discussed, earnings were $0.22 per share for the second quarter of 1996, unchanged from the second quarter of 1995. For the six months ended July 27, 1996, operating income increased to $75.0 million from $62.3 million for the comparable 1995 period, and sales rose by $118.0 million to $694.4 million from $576.4 million. EBITDA for the six months increased to $97.4 million from $81.8 million in the comparable 1995 period. For the six months ended July 27, 1996, income from continuing operations and net income were $26.1 million or $0.37 per share, and $24.1 million or $0.34 per share, respectively, compared to $32.8 million or $0.46 per share, and $44.3 million or $0.62 per share in the first six months of 1995. Excluding the extraordinary charge, earnings were $0.43 per share for the first six months of 1996 as compared to $0.62 per share for the same period in 1995. The company's Automotive Products and Decorative Fabrics segments are discussed below. Operating data tables for each segment are contained at the end of the release. Automotive Products Automotive Products' 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 increased 35% to $275.7 million for the second quarter compared to $204.8 million for the same quarter of 1995. Year to date, net sales increased by 25% to $558.4 million from $448.5 million in 1995. The company's Manchester Plastics subsidiary, which was acquired in January 1996, contributed $40.4 million in plastic interior trim sales for the quarter and $78.7 million for the six months ended July 27, 1996. The company's non-U non-U adj. Chiefly British Not characteristic of the upper class, especially in language usage. [non- + U2. .S. operations also contributed substantially to the sales improvement for the second quarter. Net sales for the second quarter included a 95% increase in sales of convertible top systems and a 21% increase in sales of automotive carpet carpet or rug, thick fabric, usually woolen (but often synthetic), commonly used today as a floor covering. Carpet Types and Modern Manufactures products which helped offset reduced sales of automotive bodycloth. The successful launch of the Chrysler Sebring, which the company supplies primarily from its Mexican Mexican named after or originating in Mexico. Mexican axolotl see ambystomamexicanum. Mexican beaded lizard (Heloderma horridum operations, contributed significantly to strong convertible top sales during the quarter. Additionally, the company's foreign automotive carpet operations benefited from a 25% increase in sales from Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of , sales from the UK-based Fatati business acquired in May of 1996 and sales from the Austrian carpet operation which initiated production in the third quarter of 1995. Automotive bodycloth sales were down approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 8% primarily as a result of reduced demand from Ford and GM during the quarter. EBITDA for the Automotive Products segment increased 51% during the second quarter compared to the same quarter of 1995. EBITDA as a percent of sales improved to 14% from 13% in the same quarter of 1995. The improvement was driven primarily by increases in operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: in the automotive group and the automotive carpet group, strong sales of higher margin convertible top systems and the company's comprehensive Value Engineering/Value Analysis (VE/VA) program which is targeted toward cost reductions. Decorative Fabrics Decorative Fabrics' net sales for the second quarter increased 19% to $71.9 million compared to $60.4 million in the 1995 quarter. Sales were up in all product categories, with the Mastercraft Fabrics product line, the segment's largest, improving by approximately 20%. The segment also benefited from increased demand for Mastercraft's Advantage product, which was introduced in August of 1994. Year to date, net sales increased 6% to $136.0 million from $127.9 million in 1995. EBITDA for Decorative Fabrics was $10.2 million for the second quarter, a 40% increase compared to the second quarter for 1995. Adding to the EBITDA improvement for the quarter were increased sales, efficiency improvements in the company's 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. and improved control of selling, general and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. . Year to date, EBITDA was 15% of sales or $19.7 million compared to 14% of sales or $18.0 million for the comparable period of 1995. Collins & Aikman Corp. is a major supplier of textile textile Any filament, fibre, or yarn that can be made into fabric or cloth, and the resulting material itself. The word originally referred only to woven fabrics but now includes knitted, bonded, felted, and tufted fabrics as well. and plastic interior trim products and convertible top systems to the North American automotive industry The automotive industry is the industry involved in the design, development, manufacture, marketing, and sale of motor vehicles. In 2006, more than 69 million motor vehicles, including cars and commercial vehicles were produced worldwide. , and a leading manufacturer of residential upholstery upholstery, general term for household fittings, hangings, curtains, cushions, and covers. It refers to stuffed, padded, and spring-cushioned furniture, such as chairs and sofas, or to the usually decorative materials and fabrics that cover them. fabrics. -0-
COLLINS & AIKMAN CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except for per share data)
Quarter Ended
July 27, July 29,
1996 1995
Net sales $347,609 $265,160
Cost of goods sold 277,870 215,949
Selling, general and administrative expenses 31,970 25,758
-------- --------
309,840 241,707
Operating income 37,769 23,453 Interest expense, net 14,455 10,296 Loss on sale of receivables 1,284 1,744 Other expense 1,538 -- Income from continuing operations before income taxes 20,492 11,413 Income taxes 8,688 2,015 Income from continuing operations 11,804 9,398 Income from discontinued operations, net of income taxes 3,717 6,047 Income before extraordinary loss 15,521 15,445 Extraordinary loss, net of income taxes (6,610) -- Net income $ 8,911 $ 15,445 Net income per primary and fully diluted common share: Continuing operations $ .17 $ .13 Discontinued operations .05 .09 Extraordinary item (.09) -- Net income $ .13 $ .22 Average common shares outstanding: Primary 69,990 71,529 Fully diluted 70,016 71,686
COLLINS & AIKMAN CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except for per share data)
Six Months Ended
July 27, July 29,
1996 1995
Net sales $694,353 $576,371
Cost of goods sold 556,693 463,758
Selling, general and administrative expenses 62,701 50,309
-------- --------
619,394 514,067
Operating income 74,959 62,304 Interest expense, net 27,676 20,128 Loss on sale of receivables 3,142 4,249 Other expense 231 -- Income from continuing operations before income taxes 43,910 37,927 Income taxes 17,771 5,165 Income from continuing operations 26,139 32,762 Income from discontinued operations, net of income taxes 4,524 11,584 Income before extraordinary loss 30,663 44,346 Extraordinary loss, net of income taxes (6,610) -- Net income $ 24,053 44,346 Net income per primary and fully diluted common share: Continuing operations $ .37 $ .46 Discontinued operations .06 .16 Extraordinary item (.09) -- Net income $ .34 $ .62 Average common shares outstanding: Primary 70,013 71,639 Fully diluted 70,067 71,717
COLLINS & AIKMAN CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)
July 27, Jan. 27,
1996 1996
ASSETS
Current Assets: Cash and cash equivalents $ 14,542 $ 977 Accounts and notes receivable, net 165,004 127,583 Inventories 132,720 134,309 Net assets of discontinued operations 116,412 93,003 Other 55,034 73,127 Total current assets 483,712 428,999
Property, plant and equipment, net 282,081 271,902
Deferred tax assets 128,020 127,176
Goodwill, net 160,409 159,347
Other assets 57,599 49,313
---------- ----------
$1,111,821 $1,036,737
LIABILITIES AND COMMON STOCKHOLDERS' DEFICIT Current Liabilities: Notes payable $ 1,542 $ 2,101 Current maturities of long-term debt 28,649 51,508 Accounts payable 100,513 110,236 Accrued expenses 123,920 93,820 Total current liabilities 254,624 257,665 Long-term debt 782,613 713,514 Other, including postretirement benefit obligation 277,433 293,410 Commitments and contingencies Common stock (150,000 shares authorized, 70,521 shares issued and 69,067 shares outstanding at July 27, 1996 and 70,521 shares issued and 69,074 outstanding at Jan. 27, 1996) 705 705 Other paid-in capital 585,422 585,469 Accumulated deficit (746,086) (770,139) Foreign currency translation adjustments (22,573) (23,719) Pension equity adjustment (9,090) (9,090) Treasury stock, at cost (1,454 shares at July 27, 1996 and 1,447 shares at Jan. 27, 1996) (11,227) (11,078)
Total common stockholders' deficit (202,849) (227,852)
---------- ----------
$1,111,821 $1,036,737
COLLINS & AIKMAN CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
Quarter Ended
July 27, July 29,
1996 1995
OPERATING ACTIVITIES
Income from continuing operations $ 11,804 $ 9,398
Adjustments to derive cash flow from
continuing operating activities:
Depreciation and leasehold amortization 9,475 9,761
Amortization of goodwill 1,030 --
Amortization of other assets 1,732 1,124
Decrease (increase) in accounts and
notes receivable 6,961 28,601
Decrease (increase) in inventories (4,066) (88)
Decrease in accounts payable (8,398) (795)
Increase in interest payable 3,025 3
Other, net 6,312 (7,320)
Net cash provided by continuing
operating activities 27,875 40,684
Cash provided by (used in) Wallcoverings and
Floorcovering discontinued operations 928 3,245
Cash provided by (used in) other
discontinued operations (1,897) (12,015)
Net cash provided by (used in)
discontinued operations (969) (8,770)
INVESTING ACTIVITIES Additions to property, plant and equipment (22,782) (20,704) Sales of property, plant and equipment 701 42 Acquisition of businesses, net of cash acquired (8,007) -- Proceeds from sale-leaseback arrangement -- 17,645 Other, net (4,263) (2,187) Net cash used in investing activities (34,351) (5,204)
FINANCING ACTIVITIES
Issuance of long-term debt 400,045 3,639
Repayment of long-term debt (264,461) (968)
Proceeds from (reduction of) participating
interests in accounts receivable, net of
redemptions (19,000) (23,000)
Net borrowings (repayments) on revolving
credit facilities (83,000) --
Net borrowings (repayments) on notes payable 299 (1,012)
Purchase of treasury stock (149) (3,776)
Other, net (17,240) 38
Net cash provided by (used in)
financing activities 16,494 (25,079)
Net increase in cash and cash equivalents 9,049 1,631 Cash and cash equivalents at beginning of period 5,493 13,719 Cash and cash equivalents at end of period 14,542 15,350
COLLINS & AIKMAN CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
Six Months Ended
July 27, July 29,
1996 1995
OPERATING ACTIVITIES
Income from continuing operations $ 26,139 $ 32,762
Adjustments to derive cash flow from
continuing operating activities:
Depreciation and leasehold amortization 18,699 19,476
Amortization of goodwill 2,060 --
Amortization of other assets 3,727 1,858
Decrease (increase) in accounts and
notes receivable (19,421) 55,072
Decrease (increase) in inventories 1,589 3,745
Decrease in accounts payable (9,723) (22,064)
Increase in interest payable 3,471 733
Other, net 29,794 (10,158)
Net cash provided by continuing
operating activities 56,335 81,424
Cash provided by (used in) Wallcoverings and
Floorcovering discontinued operations (255) (6,039)
Cash provided by (used in) other discontinued
operations 488 (18,846)
Net cash provided by (used in)
discontinued operations 233 (24,885)
INVESTING ACTIVITIES Additions to property, plant and equipment (42,722) (42,166) Sales of property, plant and equipment 3,064 316 Acquisition of businesses, net of cash acquired (8,007) -- Proceeds from sale-leaseback arrangement -- 17,645 Other, net (5,515) (4,437) Net cash used in investing activities (53,180) (28,642)
FINANCING ACTIVITIES
Issuance of long-term debt 400,229 4,356
Repayment of long-term debt (278,977) (2,831)
Proceeds from (reduction of) participating
interests in accounts receivable, net
of redemptions (18,000) (28,000)
Net borrowings (repayments) on revolving
credit facilities (75,000) 15,000
Net borrowings (repayments) on notes payable (559) (785)
Purchase of treasury stock (149) (3,776)
Other, net (17,367) 172
Net cash provided by (used in) financing
activities 10,177 (15,864)
Net increase in cash and cash equivalents 13,565 12,033 Cash and cash equivalents at beginning of period 977 3,317 Cash and cash equivalents at end of period 14,542 15,350 AUTOMOTIVE PRODUCTS
Quarter Ended
July 27, 1996 July 29, 1995
$ % $ %
-------- ------ -------- ------
(Dollar amounts in thousands)
Net sales $275,683 100.0% $204,794 100.0% Cost of goods sold 223,428 81.0 169,732 82.9 Gross margin 52,255 19.0 35,062 17.1 Selling, general and administrative 22,302 8.1 15,896 7.7 Operating income $ 29,953 10.9% $ 19,166 9.4% EBITDA $ 38,805 14.1% $ 25,626 12.5%
Six Months Ended
July 27, 1996 July 29, 1995
$ % $ %
-------- ------ -------- ------
(Dollar amounts in thousands)
Net sales $558,383 100.0% $448,488 100.0% Cost of goods sold 454,257 81.4 367,698 82.0 Gross margin 104,126 18.6 80,790 18.0 Selling, general and administrative 44,029 7.9 30,544 6.8 Operating income $ 60,097 10.7% $ 50,246 11.2% EBITDA $ 77,725 13.9% $ 63,213 14.1%
DECORATIVE FABRICS
Quarter Ended
July 27, 1996 July 29, 1995
$ % $ %
-------- ------ -------- ------
(Dollar amounts in thousands)
Net sales $ 71,926 100.0% $ 60,366 100.0% Cost of goods sold 54,442 75.7 46,217 76.6 Gross margin 17,484 24.3 14,149 23.4 Selling, general and administrative 9,668 13.4 9,862 16.3 Operating income $ 7,816 10.9% $ 4,287 7.1% EBITDA $ 10,236 14.2% $ 7,337 12.2%
Six Months Ended
July 27, 1996 July 29, 1995
$ % $ %
-------- ------ -------- ------
(Dollar amounts in thousands)
Net sales $135,970 100.0% $127,883 100.0% Cost of goods sold 102,436 75.3 96,060 75.1 Gross margin 33,534 24.7 31,823 24.9 Selling, general and administrative 18,672 13.7 19,765 15.5 Operating income $ 14,862 11.0% $ 12,058 9.4% EBITDA $ 19,686 14.5% $ 18,015 14.1% CONTACT: Collins & Aikman Corp., Charlotte A. Dennis Dennis is a male first name derived from the Greco-Roman name Dionysius meaning "servant of Dionysus", the Thracian god of wine, which is ultimately derived from the Greek Dios (Διος, "of Zeus") combined with Nysos or Nysa (Νυσα), where the Mahedy, 704/548-2072 (Treasurer TREASURER. An officer entrusted with the treasures or money either of a private individual, a corporation, a company, or a state. 2. It is his duty to use ordinary diligence in the performance of his office, and to account with those whose money he has. ) J. Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. Stepp, 704/548-2395 (Exec. VP & CFO See Chief Financial Officer. ) |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion