Delta Woodside Industries, Inc. Announces Third Quarter Fiscal 2004 Results and Delisting From The NYSE.Business Editors GREENVILLE Greenville. 1 City (1990 pop. 45,226), seat of Washington co., W Miss., on Lake Ferguson, a deepwater harbor adjoining the Mississippi River; inc. 1886. , S.C.--(BUSINESS WIRE)--April 20, 2004 Delta Woodside Woodside is the name of several places or entities in the English-speaking world: Australia
See: New York Stock Exchange : DLW DLW Doubly Labeled Water DLW Delaware, Lackawanna, and Western Railroad DLW Deutsche Linoleumwerke (German Flooring Factory) DLW Diversity of the Lepidoptera in the World (Centre for Entomological Studies Ankara project) ) reported 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 of $37.9 million for the quarter ended March 27, 2004, a decrease of 18.4% when compared to net sales of $46.5 million for the quarter ended March 29, 2003. The decrease from the prior year quarter was the result of reduced unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. partially offset by a 6.0% increase in average sales price. For the nine months ended March 27, 2004, the Company reported net sales of $129.0 million as compared to net sales of $128.5 million for the previous year nine months ended March 29, 2003. The increase was the result of a 1.2% increase in average sales price partially offset by a decline in unit sales. Unit sales declined in both the quarter and nine-month periods primarily as a result of weaker retail sales partially offset by improved demand for military fabrics. Product mix changes accounted for the increase in average sales price. The Company reported an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $1.2 million for the quarter ended March 27, 2004 compared to an operating loss of $0.5 million in the prior year quarter. For the nine months ended March 27, 2004 the Company reported an operating loss of $1.3 million compared to an operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. of $3.8 million for the nine months ended March 29, 2003. The Company reported a net loss of $2.3 million or $0.40 per common share for the quarter ended March 27, 2004 compared to a net loss of $1.1 million or $0.19 per common share for the quarter ended March 29, 2003. For the nine months ended March 27, 2004, the Company reported a net loss of $4.8 million or $0.82 per common share as compared to net income of $0.6 million and $0.10 per common share for the previous year's nine months ended March 29, 2003. The increase in operating loss in the current year quarter was the result of reduced absorption of manufacturing costs due to reduced running schedules and deteriorating de·te·ri·o·rate v. de·te·ri·o·rat·ed, de·te·ri·o·rat·ing, de·te·ri·o·rates v.tr. To diminish or impair in quality, character, or value: margins on commodity products due to continued pressure from imports coupled with over capacity of domestic 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. production, partially offset by an improved product mix. The operating loss for the current year nine month period resulted principally from unabsorbed manufacturing costs associated with reduced running schedules brought on by reduced customer demand. For the current quarter ended March 27, 2004 the Company recorded an income tax benefit of $35,000. For the prior year quarter and nine months ended March 29, 2003, the Company recorded a tax benefit of $0.7 million and a tax expense of $0.4 million, respectively. As a result of the operating loss in the current year third quarter, the Company's operating subsidiary An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. Delta Mills, Inc. was not in compliance with the maximum leverage ratio covenant of its $50 million revolving credit agreement Revolving credit agreement A legal commitment in which a bank promises to lend a customer up to a specified maximum amount during a specified period. revolving credit agreement See line of credit. with GMAC GMAC General Motors Acceptance Corporation GMAC Graduate Management Admission Council GMAC Give Me A Call GMAC Genetic Manipulation Advisory Committee GMAC Genetic Modification Advisory Committee (Singapore) GMAC Give Me A Chance at the end of the third quarter of fiscal 2004. GMAC has granted Delta Mills a waiver The voluntary surrender of a known right; conduct supporting an inference that a particular right has been relinquished. The term waiver is used in many legal contexts. and amendment that waives the existing default with respect to the maximum leverage ratio covenant, temporarily amends AMENDS. A satisfaction, given by a wrong doer to the party injured for a wrong committed. 1 Lilly's Reg. 81. 2. By statute 24 Geo. II. c. 44, in England, and by similar statutes in some of the United States, justices of the peace, upon being notified of an the maximum leverage ratio covenant for the fourth quarter of fiscal 2004, and temporarily eliminates the fixed charge coverage ratio covenant for the fourth quarter of fiscal 2004. The waiver and amendment also reduces Delta Mills' availability under the credit facility by $7 million for the remaining term of the facility and increases the interest rates under the credit facility by 125 basis points; however, the interest rates will revert re·vert v. 1. To return to a former condition, practice, subject, or belief. 2. To undergo genetic reversion. to their pre-amendment levels if Delta Mills has net income for fiscal 2005 and no event of default exists under the credit facility. The New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. announced on April 20, 2004 that trading on the NYSE in the common stock of the Company, ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors DLW, will be suspended sus·pend v. sus·pend·ed, sus·pend·ing, sus·pends v.tr. 1. To bar for a period from a privilege, office, or position, usually as a punishment: suspend a student from school. prior to the opening of trading on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , April 23, 2004, and that the NYSE will subsequently delist delist To drop a security from trading on an organized exchange. Delisting may occur for a number of reasons including failure to meet an exchange's standards or placement of a new listing on another exchange. Compare list. the Company's common stock. The Company intends to move its listing to the Over the Counter Bulletin Board (OTC-BB) and expects its common stock to be quoted on the OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. beginning at the opening of trading on Friday, April 23, 2004. The Company was operating under a plan to address by March 31, 2004 its non-compliance with the NYSE's continued listing requirement to maintain an average global market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. of at least $15 million over a consecutive 30 trading-day period, but the Company was unable to return to compliance within the required time frame. Furthermore, the NYSE has announced that it is seeking to amend its continued listing criteria to require an average global market capitalization of $25 million. In addition, the NYSE has announced that it is seeking to amend its current continued listing criteria that require a listed company listed company n → compañía cotizable listed company n → société cotée en Bourse listed company list n → to maintain total stockholder's equity Stockholder's equity The residual claims that stockholders have against a firm's assets, calculated by subtracting all current liabilities and debt liabilities from total assets. of $50 million if its average global market capitalization is less than $50 million to increase both thresholds to $75 million. It was evident to the Company that under the new NYSE continued listing criteria, the Company could meet neither the $25 million average global market capitalization requirement nor the $75 million total shareholder's equity requirement for companies with average global market capitalization of less than $75 million. The Company has decided to move its listing to the OTC Bulletin Board for the foreseeable fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. future. If business conditions improve sufficiently for the Company to meet the listing criteria of one of the major exchanges, the Company will consider the possibility of moving its listing to one of the major exchanges. The preceding discussion contains certain "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. ". These are based on the Company's expectations and are necessarily dependent upon assumptions, estimates and data that the Company believes are reasonable and accurate but may be incorrect, incomplete or imprecise im·pre·cise adj. Not precise. im  pre·cise ly adv. . Forward-looking statements are also subject to
a number of business risks and uncertainties, any of which could cause
actual results to differ materially from those set forth in or implied
by the forward-looking statements. These risks and uncertainties
include, among others, changes in the retail demand for apparel
products, the cost of raw materials, competitive conditions in the
apparel and textile industries, the relative strength of the United
States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. dollar as against other currencies, changes in United States and
international trade regulations, including without limitation the
expected end of quotas on textile and apparel products among World Trade
Organization (WTO See World Trade Organization. ) member states in 2005, and the discovery of unknown
conditions (such as with respect to environmental matters and similar
items). Accordingly, any forward-looking statements do not purport To convey, imply, or profess; to have an appearance or effect.The purport of an instrument generally refers to its facial appearance or import, as distinguished from the tenor of an instrument, which means an exact copy or duplicate. PURPORT, pleading. to be predictions of future events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or and may not be realized. The Company does not undertake to publicly update or revise the forward-looking statements even if it becomes clear that any projected results will not be realized. Delta Woodside Industries, Inc., headquartered in Greenville, South Carolina
Greenville is a mid-sized city located in the upstate of South Carolina. It is the county seat of Greenville CountyGR6 , manufactures and sells textile products for the apparel industry. The Company, which employs approximately 1,600 people, operates five plants located in South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. .
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
Delta Woodside Industries Inc.
(In Thousands)
March 27, June 28,
2004 2003
--------- ---------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $723 $781
Accounts receivable:
Factor and other 34,877 44,628
Less allowances for returns 90 180
--------- ---------
34,787 44,448
Inventories
Finished goods 7,533 7,711
Work in process 26,924 25,765
Raw materials and supplies 7,764 10,659
--------- ---------
42,221 44,135
Deferred income taxes 871 955
Other assets 386 519
--------- ---------
TOTAL CURRENT ASSETS 78,988 90,838
ASSETS HELD FOR SALE 3,781 3,948
PROPERTY, PLANT AND EQUIPMENT, at cost 161,722 157,400
Less accumulated depreciation 97,669 90,619
--------- ---------
64,053 66,781
DEFERRED LOAN COSTS AND OTHER ASSETS 420 503
--------- ---------
$147,242 $162,070
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Trade accounts payable $11,081 $14,217
Revolver 22,734 24,856
Accrued employee compensation 3,278 1,414
Accrued and sundry liabilities 8,699 10,303
--------- ---------
TOTAL CURRENT LIABILITIES 45,792 50,790
LONG-TERM DEBT 31,941 31,941
DEFERRED COMPENSATION 2,476 7,578
NON-CURRENT DEFERRED INCOME TAXES 871 955
SHAREHOLDERS' EQUITY
Common Stock -- par value $.01 a share --
authorized 50,000,000 shares, issued and
outstanding 6,025,000 shares at
March 27, 2004 and 5,862,000 at June 28, 2003 60 59
Additional paid-in capital 87,038 86,869
Accumulated deficit (20,936) (16,122)
--------- ---------
66,162 70,806
COMMITMENTS AND CONTINGENCIES
--------- ---------
$147,242 $162,070
========= =========
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Delta Woodside Industries Inc.
(In Thousands, except per share data)
3 Mths Ended 9 Mths Ended
March 27, March 29, March 27, March 29,
2004 2003 2004 2003
-------- -------- --------- ---------
Net sales $37,919 $46,489 $129,000 $128,521
Cost of goods sold 36,241 43,649 122,290 116,451
-------- -------- --------- ---------
Gross profit 1,678 2,840 6,710 12,070
Selling, general and
administrative expenses 2,902 2,969 8,713 8,430
Impairment and restructuring
charges 398 398
Other income 28 48 729 536
-------- -------- --------- ---------
OPERATING PROFIT (LOSS) (1,196) (479) (1,274) 3,778
Other (expense) income:
Interest expense (1,172) (1,326) (3,540) (4,097)
Gain on extinguishment of
debt 1,303
-------- -------- --------- ---------
(1,172) (1,326) (3,540) (2,794)
-------- -------- --------- ---------
INCOME (LOSS) BEFORE
INCOME TAXES (2,368) (1,805) (4,814) 984
Income tax expense (benefit) (35) (705) 369
-------- -------- --------- ---------
NET INCOME (LOSS) $(2,333) $(1,100) $(4,814) $615
======== ======== ========= =========
Basic and diluted earnings
(loss) per share $(0.40) $(0.19) $(0.82) $0.10
======== ======== ========= =========
Weighted average shares
outstanding 5,893 5,862 5,892 5,861
======== ======== ========= =========
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Delta Woodside Industries Inc.
(In Thousands)
9 Mths Ended
March 27, March 29,
2004 2003
--------- ---------
OPERATING ACTIVITIES
Net income (loss) $(4,814) $615
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Depreciation 6,595 6,874
Amortization 83 101
Gain on early retirement of debt (1,303)
Provision for impairment and restructuring 398
Gains on disposition of property
and equipment (253) (433)
Change in deferred income taxes 340
Deferred compensation (2,780) 113
Changes in operating assets and liabilities 6,693 (2,625)
--------- ---------
NET CASH PROVIDED BY
OPERATING ACTIVITIES 5,524 4,080
--------- ---------
INVESTING ACTIVITIES
Property, plant and equipment:
Purchases (3,858) (4,648)
Proceeds of dispositions 424 807
--------- ---------
NET CASH USED IN
INVESTING ACTIVITIES (3,434) (3,841)
--------- ---------
FINANCING ACTIVITIES
Proceeds from revolving lines of credit 136,497 134,625
Repayments on revolving lines of credit (138,619) (132,587)
Repurchase and retirement of long term debt (1,778)
Repurchase common stock (26) (24)
--------- ---------
NET CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES (2,148) 236
--------- ---------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (58) 475
Cash and cash equivalents at beginning of period 781 314
--------- ---------
CASH AND CASH EQUIVALENTS
AT END OF PERIOD $723 $789
========= =========
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