Fieldcrest Cannon reports first quarter results; Sales up 11%.EDEN Eden, in the Bible Eden, in the Bible. 1 Son of Joah. 2 Priest. Perhaps this is the same as (1.) 3 See Eden, Garden of. 4 Unidentified trading center, possibly in Mesopotamia. , N.C.--(BUSINESS WIRE)--Apr. 20, 1995--Net sales increased 11% in the first quarter of 1995 to $257.0 million from $232.3 million in the first quarter of 1994. Income for the quarter, before non-recurring charges, was $6.0 million, or $.56 per share, compared to $5.5 million, or $.51 per share, in the first quarter of 1994. After the non-recurring charges described below, net income for the first quarter of 1995 was $3.6 million, or $.28 per share. In January January: see month. 1995 the Company acquired the Sure Fit furniture coverings business of UTC (Coordinated Universal Time, Temps Universel Coordonné) The international time standard (formerly Greenwich Mean Time, or GMT). Zero hours UTC is midnight in Greenwich, England, which is located at 0 degrees longitude. Holdings for $27 million. Sales in the first quarter of 1995 include $13.4 million from the Sure Fit business. After adjusting for Sure Fit, sales in the first quarter of 1995 were 5% greater than the first quarter of 1994. 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. , before non-recurring charges, was $16.3 million for the first quarter of 1995 compared to $15.0 million for the first quarter of 1994. The increase was due primarily to increased sales volume and price increases implemented during the last half of 1994. Operating costs operating costs npl → gastos mpl operacionales for the first quarter of 1995 were higher than the comparable 1994 quarter due to higher raw material and labor costs and lower mill activity levels. LIFO (Last In-First Out) A queueing method in which the next item to be retrieved is the item most recently placed in the queue. Contrast with FIFO. LIFO - stack accounting charges were $1.0 million in the first quarter of 1995 compared to $.6 million in the first quarter of 1994. Inventory levels, after adjusting for Sure Fit, were even with last year compared to the 5% increased in sales and remain well controlled. In the first quarter of 1995 the Company announced a reorganization of its New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of operations and the relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. of sales, marketing and design personnel to Kannapolis Kannapolis (kənăp`əlĭs), city (1990 pop. 29,696), Cabarrus and Rowan counties, W central N.C.; founded 1906, inc. 1984. It began as a planned company town and was owned by Cannon Mills (later part of Pillowtex, which went into , N.C. In conjunction with the reorganization, the Company will offer a voluntary early retirement program for salaried employees. The Company expects pre-tax costs in the range of $10 to $12 million, or $.71 to $.85 per share after tax, as a result of these actions. Annual pre-tax savings of $6 to $8 million, or $.42 to $.57 per share after tax, are anticipated. A pre-tax charge of $3.9 million, or $.28 per share after tax, was accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. in the first quarter of 1995 for employee severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when and termination benefits related to the reorganization. The remaining costs for relocation and the voluntary early retirement program will be incurred later in the year. In March 1995 the Company sold the Bangor and Aroostook Railroad The Bangor and Aroostook Railroad (AAR reporting marks BAR) is a defunct United States railroad company, that formerly operated lines in northern Maine. The company was incorporated in 1891 to combine the lines of the former Bangor and Piscataquis Railroad and the for $20 million of cash and $8 million of notes receivable. Cash proceeds reduced borrowings under the 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. Cost increases in cotton and other raw materials have caused us to implement price increases on our products for the second quarter of 1995 and to intensify in·ten·si·fy v. in·ten·si·fied, in·ten·si·fy·ing, in·ten·si·fies v.tr. 1. To make intense or more intense: our efforts to reduce other costs. Fieldcrest Cannon, Inc. manufactures and markets bed and bath products under the Fieldcrest, St. Marys, Cannon Royal Family, Cannon Monticello, Caldwell, Sure Fit and private brand labels. Fieldcrest Cannon, Inc. common stock is traded on 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. under the symbol "FLD FLD Field FLD Fielding FLD Fluid Dynamics FLD Free Lunch Design FLD Fatty Liver Disease (aka hepatic lipidosis) FLD Forming Limit Diagram FLD fluorescence detector FLD Fond du Lac, Wisconsin (Airport Code) ". -0-
FIELDCREST CANNON INC.
Condensed Consolidated Statements
Dollars in thousands, except per share data
Three Months Ended March 31,
Consolidated statement of income 1995 1994
Net sales $257,009 $232,285 Cost of sales 214,025 194,893 Selling, general and administrative 26,702 22,344 Restructuring charges 3,924 - Total operating costs and expenses 244,651 217,237 Operating income 12,358 15,048 Interest expense 6,802 5,848 Other deductions (income) (144) 115 Income before income taxes 5,700 9,085 Income tax provision 2,137 3,589 Net income 3,563 5,496 Preferred dividends (1,125) (1,125) Earnings on common $ 2,438 $ 4,371 Average primary shares outstanding 8,807 8,624 Primary earnings per common share $ .28 .51 Fully diluted earnings per common share $ .28 $ .47 The condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge are unaudited but contain all adjustments necessary in the opinion of management for fair presentation. The results for interim periods necessarily reflect estimates for certain items, such as the valuation of the majority of inventories on a LIFO cost basis, which can only be finally determined at the end of the fiscal year. Consolidated Statement of Financial Position
March 31,
1995 1994
Current assets:
Cash $ 4,312 $ 4,713 Accounts receivable 170,128 146,598 Inventories 263,611 243,428 Net assets held for sale -- 31,739 Other prepaid expenses and current assets 3,527 3,211 Total current assets 441,578 429,689 Plant and equipment, net $322,261 $290,064 Deferred charges and other assets 61,128 32,450 Total assets $824,967 $752,203 Current Liabilities: Accounts and drafts payable 54,989 49,283 Federal and state income taxes 4,018 2,961 Deferred income taxes 19,651 13,355 Accrued liabilities 69,381 69,201 Current portion of long-term debt 1,118 2,900 Total current liabilities 149,157 137,700 Long-term debt 342,291 312,816 Deferred income taxes 43,471 37,611 Other non-current liabilities 54,896 64,976 Shareowners' equity 235,152 199,100 Total liabilities and shareowners' equity $824,967 $752,203
Three Months
Ended March 31,
Consolidated statement of cash flows 1995 1994
Cash flows from operating activities: Net income $ 3,563 $ 5,496 Depreciation and amortization 7,753 7,588 Deferred income taxes 612 2,429 Working capital and other (15,204) (23,087) Net cash (used in) operating activities (3,276) (7,574) Cash Flows From Investing Activities: Additions to plant and equipment (14,712) (3,339) Proceeds from disposal of plant and equipment 460 178 Proceeds from net assets held for sale 20,184 -- Purchase of Sure Fit, net of cash acquired (27,300) -- Total cash (used in) investing activities (21,368) (3,161) Net cash provided by financing activities 23,071 11,583 Increase (decrease) in cash $ (1,573) $ 848 CONTACT: Fieldcrest Cannon, Inc., Eden T.R. Staab, 910/627-3117 KEYWORDS: NORTH CAROLINA North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. INDUSTRY KEYWORD: TEXTILES MANUFACTURING EARNINGS REPEATS: New York 212-575-8822 or 800-221-2462; Boston 617-330-5311 or 80 |
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