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HARTMARX ACHIEVES PROFITABLE FULL YEAR AND FOURTH QUARTER RESULTS; DEBT REDUCED BY 26 PERCENT; 1994 PERFORMANCE EXPECTATIONS POSITIVE

 CHICAGO, Jan. 13 /PRNewswire/ -- Hartmarx Corp. (NYSE: HMX) today announced its return to profitability following its 1992 restructuring with pre-tax earnings of $6.4 million for the year ended Nov. 30, 1993.
 Elbert O. Hand, chairman and chief executive officer of Hartmarx, commented, "Following the actions taken in 1992 to focus the company's efforts on our successful manufacturing/marketing resources, Hartmarx has produced positive results in the first full year of operations since those changes."
 Fourth quarter pre-tax earnings were $9.2 million on consolidated revenues of $184.1 million compared to pre-tax earnings of $5.6 million and revenues of $211.6 million in 1992. Pre-tax earnings were $6.4 million for the full year on consolidated revenues of $732.0 million compared to a loss of $226.9 million (which included $190.8 million restructuring charges) on sales of $1,053.9 million in 1992. After tax provisions, the 1993 net results were $9.0 million, or $.29 per share, in the fourth quarter and $6.2 million, or $.20 per share, for the full year. Results for both years include pre-tax income from the reduction of inventory maintained on a LIFO-cost basis of $3.5 million for the fourth quarter and $3.6 million for the full year in 1993, compared to $4.0 million for the fourth quarter and $3.3 million for the full year in 1992.
 Results for 1992 included third quarter restructuring charges of $190.8 million primarily related to the disposition of the company's principal retail operation, Hartmarx Specialty Stores, Inc. ("HSSI"), the liquidation of the Old Mill store group formerly operated by Country Miss, and closing various production facilities supporting retail operations. Including this charge, the pre-tax loss was $226.9 million for the year. A tax benefit of $6.6 million reduced the 1992 net loss to $220.2 million or $8.59 per share. Sales in 1992 were $1,053.9 million, which included the revenues of HSSI and the Old Mill stores.
 Hand further stated, "Hartmarx is building marketing momentum, reflecting the success of its restructuring, the strength of its brands, and its broadened presence in the marketplace both in the products it offers and the retailers to which it sells.
 "Another strong performance by our Men's Apparel Group, which consists of our tailored clothing companies Hart Schaffner & Marx, Hickey-Freeman, and Intercontinental Branded Apparel and also our sportswear-oriented companies Trans-Apparel Group, Biltwell Clothing Company and Bobby Jones, was responsible for the increase in earnings. Retailers have given us encouraging reports on recent tailored clothing sales. The initial bookings for our new Tommy Hilfiger products, which will be carried in over 440 retail store locations in fall 1994, are exceeding our plans. Merchandising, operating and management changes at Kuppenheimer implemented in mid-year have contributed to its improved sales performance. While International Women's Apparel endured a very weak womenswear market and harsh competitive pressure in 1993, major expense reductions and stringent inventory controls have been instituted to reduce losses in that business. Our Barrie Pace, Ltd. women's careerwear catalog operation continued its excellent profitability and achieved a 21 percent sales increase in 1993.
 "Debt reduction efforts have been very successful this year. We entered 1993 with $315 million of total debt and ended the year with $233 million of debt -- a 26 percent reduction resulting from our December equity sale, profitable operating results and improved working capital management.
 "Our expectations for 1994 are positive with increased advance orders for our fall 1994 tailored clothing lines, further expansion of our sportswear and golfwear apparel sales and the continued growth of womenswear through our Barrie Pace, Ltd. catalog," Hand concluded.
 With respect to the Chapter 11 filing by HSSI, Inc., a specialty retailing store group which was sold in its entirety by Hartmarx in September 1992, Hartmarx stated that HSSI continues to function as an independent company whose business, operations, management, and financial conditions are wholly independent of Hartmarx. Moreover, contrary to recently published reports attributed to HSSI's former owners, HSSI is not owned by Hartmarx or by any affiliate of Hartmarx, and no Hartmarx employees serve on HSSI's board of directors or the board of directors of HSSI's new owner.
 Hartmarx further stated that as HSSI stores have been closed during the past 18 months, the volume of Hartmarx products sold to HSSI has also been reduced, with minimal effect on Hartmarx manufacturing operations. New retailers have been added as Hartmarx customers while these HSSI stores were being closed.
 Hartmarx, headquartered in Chicago, is the nation's leading manufacturer and wholesaler of men's and women's apparel.
 HARTMARX CORP.
 Three months ended Nov. 30, 1993 Nov. 30, 1992
 Net sales $184,149,000 $211,560,000
 Earnings before taxes 9,215,000 5,625,000
 Tax provision 190,000 --
 Net earnings 9,025,000 5,625,000
 Earnings per share $ .29 (A) .22
 Twelve months ended Nov. 30, 1993 Nov. 30, 1992
 Net sales $731,980,000 $1,053,949,000
 Earnings (loss) before taxes 6,410,000 (226,850,000)
 Tax provision (benefit) 190,000 (6,605,000)
 Net earnings (loss) 6,220,000 (220,245,000) (B)
 Earnings (loss) per share .20 (A) (8.59) (B)
 Average common shares
 and equivalents outstanding 31,375,000 25,629,000
 (A) 1993 results reflect 5.7 million shares issued in connection with the company's Dec. 30, 1992, equity sale.
 (B) 1992 results include $190.8 million, or $7.44 per share, restructuring charges.
 -0- 1/13/94
 /CONTACT: Frank Brenner of Hartmarx Corp., 312-357-5111/
 (HMX)


CO: Hartmarx Corp. ST: Illinois IN: TEX SU: ERN

JG -- NY078 -- 1153 01/13/94 14:32 EST
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Date:Jan 13, 1994
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