Dan River Inc. Reports Second Quarter 2000 Financial Results.
Business Editors
DANVILLE, Va.--(BUSINESS WIRE)--July 26, 2000--Dan River Inc.
(NYSE:DRF) today reported results for the second quarter and six
months ended July 1, 2000.
Net sales for the second quarter of 2000 were $157.2 million, up
$3.1 million or 2.0% from the second quarter of 1999. The Company
reported that net income of $4.4 million for the second quarter of
2000, or $0.20 per basic share, increased 50.5% from second quarter
1999 net income of $2.9 million, or $0.13 per basic share.
Sales of home fashions products for the second quarter of 2000
were $105.6 million, up $2.2 million or 2.2% over the prior year.
Sales of apparel fabrics were $38.3, down $1.1 million or 2.9% from
the second quarter of 1999. Sales of engineered products were $13.3
million, up $2.0 million or 17.8% over the same quarter in 1999.
For the six months ended July 1, 2000, net sales were $322.2
million, a decrease of $1.5 million or 0.5% from the first six months
of 1999. Sales of home fashions products for the first six months of
2000 were $220.0 million, down $0.8 million or 0.3% versus the prior
year. Sales of apparel fabrics were $75.2 million, down $4.4 million
or 5.5% from the first six months of 1999. Sales of engineered
products were $27.0 million, up $3.7 million or 16.0% over the same
period in 1999. Net income for the first half of 2000 of $9.3 million,
or $0.42 per basic share, was up 107.7% over net income for the first
six months of 1999 of $4.5 million, or $0.19 per basic share.
Mr. Joseph L. Lanier, Jr., Chairman and Chief Executive Officer,
said, "Earnings for the second quarter were slightly below our
expectations due to a slowdown of reorders of home fashions products
by retailers. We expect our third quarter sales of home fashions
products to be greatly improved because of the rollout of major new
programs. Accordingly, in spite of the slowdown at retail in the
second quarter, our outlook for the remainder of the year remains
positive."
Dan River Inc. is a leading manufacturer and marketer of textile
products for the home fashions, apparel fabrics and industrial
textiles markets. The company designs, manufactures and markets a
coordinated line of value-added home fashions products consisting of
bedroom furnishings such as comforters, sheets, pillowcases, shams,
bed skirts, decorative pillows, and draperies for the adult, juvenile,
and institutional markets. Dan River also manufactures and markets a
broad range of high quality woven cotton and cotton blend fabrics for
apparel. Additionally, Dan River manufactures and markets specialty
engineered textile products used in making high-pressure hoses and
other industrial products.
Note: This press release contains forward-looking statements under
applicable securities laws. Dan River's performance could be
materially and adversely affected by a number of factors, many of
which are outside Dan River's control. Risks generally associated with
Dan River's business are detailed in Dan River's Current Report on
Form 8-K which was filed with the Securities and Exchange Commission
on July 20, 1998. Management believes these forward-looking statements
are reasonable; however, undue reliance should not be placed on such
statements, which are based on current expectations.
The following are the financial highlights:
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UNAUDITED
CONDENSED CONSOLIDATED INCOME STATEMENT
(OOO's EXCEPT PER SHARE DATA)
Three Months Ended Six Months Ended
July 1, July 3, July 1, July 3,
2000 1999 2000 1999
Net Sales $157,232 $154,104 $322,181 $323,640
Cost of Sales 123,326 125,257 255,128 266,899
Gross Profit 33,906 28,847 67,053 56,741
S, G and A 17,764 16,034 34,652 33,395
Amortization of Goodwill 810 696 1,522 1,392
Operating Income 15,332 12,117 30,879 21,954
Other Income 153 69 352 358
Interest Expense 7,869 6,985 15,207 14,329
Income Before Taxes 7,616 5,201 16,024 7,983
Provision for Income Taxes 3,210 2,274 6,726 3,507
Net Income $ 4,406 $ 2,927 $ 9,298 $ 4,476
Earnings Per Share:
Basic $ 0.20 $ 0.13 $ 0.42 $ 0.19
Diluted $ 0.20 $ 0.12 $ 0.42 $ 0.19
Wtd. Avg. No. Shares:
Basic 22,063 23,368 22,282 23,362
Diluted 22,063 23,530 22,282 23,527
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
(000's)
July 1, January 1,
2000 2000
---- ----
Assets:
Cash $ 4,354 $ 2,084
Accounts Receivable 81,674 77,009
Inventories 215,477 168,487
Other Current Assets 21,254 17,513
-------- --------
Total Current Assets 322,759 265,093
Property, Plant & Equipment, Net 293,976 296,733
Goodwill, Net 116,508 110,384
Other Assets 16,396 12,372
-------- --------
Total Assets $749,639 $684,582
======== ========
Liabilities and Shareholders' Equity:
Current Maturities of Long-Term Debt $ 25,876 $ 22,368
Accounts Payable & Accrued Expenses 77,577 68,360
-------- --------
Total Current Liabilities 103,453 90,728
Long-Term Debt 335,718 292,416
Deferred Income Taxes and Other Liabilities 34,751 30,486
Shareholders' Equity 275,717 270,952
-------- --------
Total Liabilities & Shareholders' Equity $749,639 $684,582
======== ========
UNAUDITED
SEGMENT INFORMATION
(000's)
Three Months Ended Six Months Ended
------------------ ----------------
July 1, July 3, July 1, July 3,
2000 1999 2000 1999
---- ---- ---- ----
Net Sales:
Home Fashions $ 105,624 $ 103,379 $ 219,997 $ 220,769
Apparel Fabrics 38,261 39,395 75,212 79,623
Engineered Products 13,347 11,330 26,972 23,248
Consolidated Net Sales $ 157,232 $ 154,104 $ 322,181 $ 323,640
Operating Income:
Home Fashions $ 12,702 $ 12,203 $ 26,452 $ 23,965
Apparel Fabrics 3,014 1,300 6,097 1,174
Engineered Products 787 1,035 1,508 1,572
Corporate Items Not
Allocated to Segments:
Amortization of Goodwill (810) (696) (1,522) (1,392)
Other (361) (1,725) (1,656) (3,365)
Consolidated Operating
Income $ 15,332 $ 12,117 $ 30,879 $ 21,954
UNAUDITED
OTHER FINANCIAL DATA
(000's)
Three Months Ended Six Months Ended
------------------ ----------------
July 1, July 3, July 1, July 3
2000 1999 2000 1999
---- ---- ---- ----
EBITDA $25,541 $22,143 $51,052 $42,876
Depreciation & Amortization
of Property, Plant &
Equipment $ 9,399 $ 9,330 $18,652 $19,530
Capital Expenditures in Cash $11,163 $ 8,624 $19,657 $18,352
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--30--eb/ny*
CONTACT: Investor Relations Contact:
Denise Laussade
Vice President-Finance
(804)799-4113
KEYWORD: VIRGINIA
INDUSTRY KEYWORD: APPAREL/TEXTILES EARNINGS
COPYRIGHT 2000 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2000, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.
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