Dan River Inc. Announces Fourth Quarter Waiver and Amendment.Business Editors DANVILLE, Va.--(BUSINESS WIRE)--Dec. 19, 2003 Dan River Inc. (NYSE NYSE See: New York Stock Exchange : DRF DRF Daily Racing Form (horse racing) DRF Dansk Ride Forbund (Danish) DRF Deafness Research Foundation DRF Disaster Relief Fund DRF Data Recovery Field DRF Demat Request Form DRF Dose Reduction Factor ) announced today that it has entered into a second amendment and waiver agreement with its lending group related to its senior secured credit facility. The amendment provides for permanent waiver of anticipated violations of the minimum fixed charge coverage ratio and maximum leverage covenants for the fourth quarter of fiscal 2003. Among other things, the amendment provides monthly limitations on capital expenditures and specifies minimum levels of excess availability under the Company's revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility and monthly operating 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 during the first quarter of fiscal 2004. "We are pleased with the cooperation from our lending group in working with us to date," said Joseph L. Lanier, Jr., Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "We will continue to work with them to negotiate such further amendments or waivers as will be necessary." FORWARD-LOOKING STATEMENTS AND ADDITIONAL INFORMATION: This news release contains forward-looking statements under applicable securities laws. The Company believes its forward-looking statements are reasonable; however, undue reliance should not be placed on such statements, which are based on current expectations. The Company's financial condition and results of operations could be materially and adversely affected by numerous market and industry factors outside of its control. In particular, weak demand for the Company's products has had an adverse effect on its operating results. Should operating results deteriorate or fail to improve as expected, (i) the Company's ability to comply with the requirements set forth in its senior secured credit facility, as amended, and (ii) its negotiations with its lenders concerning further amendments, could be adversely affected, with a resultant material adverse effect on the Company's liquidity. Additional risks associated with the Company's business are detailed in its annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed with the SEC on February 21, 2003 and in its quarterly report on Form 10-Q Form 10-Q See 10-Q. filed with the SEC on November 12, 2003. Investors should refer to the text of the second amendment and waiver agreement for a complete understanding of its contents. The Company will file the form of the amendment with the SEC as an exhibit to a Current Report on Form 8-K. |
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