Printer Friendly

BURLINGTON REPORTS HIGHER SALES, OPERATING INCOME AND NET INCOME FOR THIRD QUARTER OF FISCAL 1992

 BURLINGTON REPORTS HIGHER SALES, OPERATING INCOME
 AND NET INCOME FOR THIRD QUARTER OF FISCAL 1992
 GREENSBORO, N.C., July 29 /PRNewswire/ -- Burlington Industries Equity Inc. (NYSE: BUR) today reported net sales for the third quarter of the 1992 fiscal year of $535.6 million, 4 percent higher than the $515.3 million reported in the third quarter of fiscal 1991. Operating income before interest and taxes was $68.4 million (or 12.8 percent of sales), an increase of 28.8 percent over the $53.1 million (10.3 percent of sales) recorded in the third quarter of fiscal 1991. The company reported net income applicable to common stock of $39.5 million, or $.59 per share, compared with a net loss of $26.3 million, or $3.29 per share, for the third quarter of the 1991 fiscal year.
 Burlington's performance improved largely because retail demand for most textile products has continued to grow modestly. In addition, the company's competitive position has been strengthened by its strategic focus on specialty, higher value added products, the restructuring of certain divisions, and the continuing benefits of cost control programs.
 All U.S. divisions had sales increases in comparison with the same quarter of the 1991 fiscal year, except the Carpet divisions. The major part of the decline in carpet sales was in Residential Carpets, because of weakness in housing and renovation markets, as well as the intentional downsizing of this segment of the company's business. Commercial Carpets sales declined modestly, but order trends are currently improving.
 For the first nine months of the 1992 fiscal year, net sales were $1,523.8 million, 6.9 percent higher than the $1,425.1 million reported for the same period in the 1991 fiscal year. Operating income (before interest, taxes and a $29.6 million provision in the second quarter for restructuring the Residential Carpet division) was $179.1 million, an increase of 60.1 percent over the comparable period of fiscal 1991. After the provision for 1992 Residential Carpet restructuring, operating income (before interest and taxes) totalled $149.5 million, in comparison with $111.9 million for the comparable period of fiscal 1991.
 Chiefly because of previously-reported charges for the 1992 Recapitalization Plan and the 1992 Residential Carpet restructuring, the company recorded a net loss applicable to common stock of $215.9 million for the first nine months of the 1992 fiscal year compared with a net loss of $55.5 million for the comparable period of 1991, which included a provision for loss on disposal of a discontinued operation of $16.9 million and a gain on debt retirement of $39.0 million.
 Burlington Industries Equity Inc. is the parent company of Burlington Industries, Inc., one of the largest and most diversified manufacturers of textile products in the world.
 BURLINGTON INDUSTRIES EQUITY INC. AND SUBSIDIARY COMPANIES
 Consolidated Statements of Operations
 (Amounts in thousands, except for per share amounts)
 Three Months Nine Months
 6/27/92 6/29/91 6/27/92 6/29/91
 Net sales $535,643 $515,309 $1,523,780 $1,425,080
 Cost of sales 428,122 423,711 1,230,014 1,196,028
 Gross profit 107,521 91,598 293,766 229,052
 Selling, admin. &
 general expenses 34,708 34,064 101,478 103,952
 Amortization of
 goodwill 4,398 4,398 13,194 13,194
 Provision for 1992
 Residential
 Carpet restructuring - - 29,600 -
 Operating income before
 interest & taxes 68,415 53,136 149,494 111,906
 Interest expense 25,799 64,582 135,098 189,936
 Loss & expenses on sale
 of receivables 3,707 - 16,471 -
 Other expense (inc.)
 - net (849) (3,066) 1,330 (10,823)
 Special ESOP contribution &
 early vesting of other
 benefit plans - - 117,937 -
 Income (loss) from cont.
 operations before
 income taxes 39,758 (8,380) (121,342) (67,207)
 Income tax (exp.)
 benefit (85) - (307) 765
 Loss from cont. opers. 39,673 (8,380) (121,649) (66,442)
 Discontinued operation:
 Income (loss) from opers.,
 net of income taxes - 1,352 - (4,739)
 Provision for loss on
 disposal, including income
 tax expense of $992 - (16,912) - (16,912)
 Loss from discontinued
 operations - (15,560) - (21,651)
 Income (loss) before
 extraord. item 39,673 (23,940) (121,649) (88,093)
 Extraord. item: gain
 (loss) on debt
 retirement (173) - (89,657) 39,000
 Net income (loss) 39,500 (23,940) (211,306) (49,093)
 Accrued preferred stock
 dividend - (1,911) (3,738) (5,245)
 Accretion of preferred
 stock - (411) (828) (1,128)
 Net inc. (loss) applicable
 to common stock $ 39,500 $(26,262) $(215,872) $(55,466)
 Average common shares
 outstanding 67,490 7,988 28,259 8,249
 Net income (loss)
 per common share:
 Inc.(loss)
 from cont.opers. $ 0.59 $ (1.34) $ (4.47) $(8.83)
 Loss from disc. opers. - (1.95) - (2.62)
 Income (loss) before
 extraord. item 0.59 (3.29) (4.47) (11.45)
 Extraordinary item - - (3.17) 4.73
 $ 0.59 $ (3.29) $ (7.64) $(6.72)
 BURLINGTON INDUSTRIES EQUITY INC. AND SUBSIDIARY COMPANIES
 Consolidated Balance Sheets
 (Amounts in thousands)
 June 27, September 28,
 1992 1991
 ASSETS
 Current assets:
 Cash and Cash equivalents $ 22,443 $ 95,332
 Short-term investments, at cost,
 which approximates market 5,308 15,952
 Customer accounts receivables
 after deductions of $14,690
 and $14,522 for the respective
 dates for doubtful accounts,
 discounts, returns and allowances 132,564 294,249
 Sundry notes and accounts receivable 6,265 7,722
 Inventories 306,939 291,253
 Prepaid expenses 3,015 3,601
 Total current assets 476,534 708,109
 Fixed assets, at cost:
 Land and land improvements 29,521 29,348
 Buildings 295,388 289,979
 Machinery, fixtures and equipment 401,939 389,429
 726,848 708,756
 Less accumulated depr. and amortization 264,958 237,628
 Fixed assets - net 461,890 471,128
 Other assets:
 Investments and receivables 28,072 25,579
 Intangibles and deferred charges 91,009 67,021
 Net assets held for sale 11,218 12,750
 Excess of purchase cost over net
 assets acquired from
 Burlington Industries, Inc.-net 619,493 632,687
 Total other assets 749,792 738,037
 $1,688,216 $1,917,274
 LIABILITIES and SHAREHOLDERS' EQUITY (CAPITAL DEFICIENCY)
 Current liabilities:
 Short-term borrowings $ 1,524 $ 906
 Long-term debt due currently 95,200 59,773
 Accounts payable and accrued expenses 201,385 233,036
 Income taxes payable 9,998 10,024
 Total current liabilities 308,107 303,739
 Long-term liabilities:
 Long-term debt, net of unamortized
 discount of $2,538 and $222,987
 for the respective dates 878,780 1,771,293
 Other 55,778 52,922
 Total long-term liabilities 934,558 1,824,215
 Redeemable preferred stock - 60,040
 Common stock subject to put rights - 42,798
 Shareholders' equity (capital deficiency):
 Common stock issued 675 80
 Capital in excess of par value 872,359 30,615
 Accumulated deficit (434,173) (222,867)
 Currency translation adjustements 7,035 7,306
 445,896 (184,866)
 Less note receivable from ESOP Trust - (99,500)
 Less notes receivable - sale of stock - (12,640)
 Less unearned compensation - (16,243)
 Less cost of common stock
 held in treasury (345) (269)
 Total shareholders'
 equity (cap.def.) 445,551 (313,518)
 $1,688,216 $1,917,274
 BURLINGTON INDUSTRIES EQUITY INC. AND SUBSIDIARY COMPANIES
 Consolidated Statements of Cash Flows
 Increase (Decrease) in Cash and Cash Equivalents
 (Amounts in thousands)
 Nine months Nine months
 ended ended
 June 27, June 29,
 1992 1991
 Cash flows from operating activities:
 Net loss $ (211,306) $ (49,093)
 Adjustments to reconcile net loss
 to net cash provided (used)
 by operating activities:
 Depreciation and amortization of
 fixed assets 40,284 52,127
 Amortization of intangibles 13,194 18,530
 Amortization of deferred debt
 expense 7,156 5,417
 Deferred income taxes - 1,034
 Non cash interest and compensation 30,870 63,344
 Undistributed equity losses of
 affiliates - 985
 Loss on disposal of assets - 12,142
 (Gain) loss on debt retirement 89,657 (39,000)
 Loss and expenses on sale of
 receivables 12,764 -
 Special ESOP contribution and early
 vesting of other benefit plans 117,833 -
 Provision for 1992 Residential
 Carpet restruc. 29,600 -
 Changes in assets and liabilities:
 Customer accounts receivable - net (38,315) 7,442
 Sundry notes and accounts receivable 1,457 3,627
 Inventories (19,741) 28,948
 Prepaid expenses 586 (1,428)
 Accounts payable and accrued expenses (2,755) 2,187
 Payment of financing fees (56,139) (108)
 Change in interest payable (41,532) (11,441)
 Change in income taxes payable (26) 762
 Other (5,754) (5,853)
 Total adjustments 179,139 138,715
 Net cash provided (used) by operating
 activities (32,167) 89,622
 Cash flows from investing activities:
 Capital expenditures (42,200) (41,106)
 Proceeds from sales of assets 3,589 5,857
 Other 8,011 (1,032)
 Net cash used by investing activities (30,600) (36,281)
 Cash flows from financing activities:
 Net change in short-term borrowings 618 7,375
 Repayments of long-term debt (1,906,453) (67,100)
 Proceeds from issuance of long-term
 debt 952,250 -
 Net proceeds from issuance of common
 stock 752,989 2,172
 Proceeds from sale of accounts rec. 190,550 -
 Purchase of treasury stock (76) (137)
 Net cash used by financing activities (10,122) (57,690)
 Net change in cash and cash equivalents (72,889) (4,349)
 Cash and cash equivalents at beginning
 of period 95,332 22,668
 Cash & cash equiv. at end of period $ 22,443 $ 18,319
 Supplemental disclosures of cash flow
 information:
 Interest paid - net $ 137,007 $ 137,800
 Income taxes (paid) refunded - net $ 1,236 $ 10,340
 Supplemental disclosures of noncash
 investing and financing activities:
 Sale of common stock for notes
 receivable $ 1,157 $ 12,315
 Cancellation of notes receiv. &
 restric. shares $ 13,797 $ -
 Exchange of preferred stock for
 common stock $ 64,606 $ -
 -0- 7/29/92
 /CONTACT: (Media) Tom Daly of Kekst & Co., 212-593-2655, Dick Windham, 919-379-2303, or Bryant Haskins, 919-379-2512, both of Burlington Industries; (Analyst) Park Davidson, 919-379-2515, of Burlington/
 (BUR) CO: Burlington Industries Equity; Burlington Industries, Inc. ST: North Carolina IN: TEX SU: ERN


CM -- CH002 -- 4420 07/29/92 08:24 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 29, 1992
Words:1680
Previous Article:ACME UNITED REPORTS SECOND QUARTER EARNINGS
Next Article:NVIEW ANNOUNCES ADDITION OF VICE PRESIDENT OF ENGINEERING
Topics:


Related Articles
BURLINGTON REPORTS IMPROVED RESULTS FOR FIRST QUARTER OF FISCAL 1992
BURLINGTON REPORTS HIGHER SALES AND OPERATING INCOME FOR SECOND QUARTER OF FISCAL 1992
BURLINGTON REPORTS IMPROVED RESULTS FOR FIRST QUARTER OF FISCAL 1993 DUE TO HIGHER OPERATING INCOME AND LOWER INTEREST EXPENSE
BURLINGTON REPORTS HIGHER SALES AND PROFITS FOR SECOND QUARTER OF FISCAL 1993
BURLINGTON REPORTS 35 PERCENT IMPROVEMENT IN PRE-TAX PROFITS FOR THIRD QUARTER OF FISCAL 1993
BURLINGTON REPORTS 94 PERCENT IMPROVEMENT IN NET INCOME FOR FIRST QUARTER OF FISCAL 1994
BURLINGTON REPORTS RESULTS FOR SECOND QUARTER OF FISCAL 1994
BURLINGTON INDUSTRIES, INC. REPORTS HIGHER SALES AND PROFITS FOR THIRD QUARTER OF FISCAL 1994
BURLINGTON REPORTS HIGHER SALES AND PROFITS FOR FOURTH QUARTER AND 1994 FISCAL YEAR
BURLINGTON REPORTS RESULTS FOR THIRD QUARTER OF FISCAL 1995

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters