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CONE MILLS CORPORATION ANNOUNCES INCREASED 1992 FOURTH QUARTER AND ANNUAL PROFITS

 GREENSBORO, N.C., Feb. 8 /PRNewswire/ -- Cone Mills Corporation (NYSE: COE) today reported net sales of $178.1 million and net income of $11.6 million, or $.39 per share after preferred dividends, for the fourth quarter of 1992. For comparison, in the fourth quarter 1991 the Company had net sales of $161.2 million and income from continuing operations of $6.1 million, or $.23 per share after preferred dividends, and a net loss of $12.7 million, which includes the results from discontinued operations.
 For the 53 weeks ended Jan. 3, 1993, the Company had net sales of $705.4 million, an 11.4 percent increase as compared with sales of $633.0 million for the 52-week period ended Dec. 29, 1991. The Company had income of $45.4 million before extraordinary expenses of $2.0 million ($.08 per share) related to early debt extinguishment, or $1.67 per share after preferred dividends, as compared with 1991 income from continuing operations of $10.1 million, or $.22 per share after preferred dividends, and a net loss of $24.8 million, which includes the results from discontinued operations.
 Earnings per share comparisons for the fourth quarter and the year are affected by the Company's 1992 mid-year public offering of common stock, which increased outstanding shares by 6.9 million, and through use of the net proceeds of the offering, reduced debt and preferred stock outstanding and associated interest expense and preferred dividends. Adjusted for the full year impact of its public offering, the Company's 1992 pro forma earnings per share was $1.47 after extraordinary item and preferred dividends, which includes $.08 per share related to a nonrecurring tax refund and associated interest income in the first quarter of 1992.
 The increases in 1992 annual and fourth quarter net sales were due primarily to higher denim and flannel shirtings sales and because fiscal 1992 and the fourth quarter of 1992 contained an additional week as compared with the 1991 periods.
 Net income for fiscal 1992 and the 1992 fourth quarter increased $33.3 million and $5.5 million, respectively, over income from continuing operations for the comparable 1991 periods. These increases were due primarily to higher earnings in the Company's denim and flannel shirtings lines, which benefited from lower cotton costs and improved volume, pricing and operating efficiencies. Home furnishings sales for the 1992 fourth quarter were approximately the same as for the 1991 period and increased for the year over 1991, but operating income was lower than for the comparable 1991 periods. The Company's selling and administrative expenses were higher than 1991 levels due to incentive compensation related to improved performance, the addition of an overseas sales office, higher sample expense and because the 1991 amounts were reduced by an insurance reimbursement of legal expenses recorded in the fourth quarter 1991. Interest expense was lower due to reduced borrowings as a result of the proceeds from the 1992 public offering, cash flow from operations, including the sales of accounts receivable, and the liquidation of working capital associated with discontinued operations, and, to a lesser extent, lower interest rates.
 At 1992 year end, the Company's long-term debt declined to $77.5 million or 32 percent of combined long-term, debt and equity capital. Apparel fabrics order backlog was $163 million, up 14.9 percent from year end 1991.
 Cone Mills Corporation, headquartered in Greensboro, N.C., is the largest producer of denim fabrics in the world and is the largest printer of home furnishings fabrics in the United States. The Company is the largest domestic exporter of denims and is a major exporter of printed home furnishings fabrics. The Company's manufacturing plants are located in North Carolina, South Carolina and Mississippi.
 CONE MILLS CORPORATION
 CONSOLIDATED STATEMENTS OF OPERATION
 (amounts in thosuands, except per share data)
 (unaudited)
 Fourteen Thirteen Fifty-Three Fifty-Two
 Weeks Ended Weeks Ended Weeks Ended Weeks Ended
 01-03-93 12-29-91 01-03-93 12-29-91
 Net Sales $178,077 $161,164 $705,430 $632,964
 Cost of Sales 135,700 130,007 540,825 523,454
 Selling and
 Administrative 17,692 13,099 67,554 56,802
 Depreciation 4,754 4,540 18,553 17,093
 Restructuring
 Cost --- --- --- 767
 158,146 147,646 626,932 598,116
 Income from
 Operations 19,931 13,518 78,498 34,848
 Interest
 Expense - net 1,854 3,930 8,317 18,405
 Income from
 Continuing
 Operations before
 Income Taxes 18,077 9,588 70,181 16,443
 Income Taxes 6,498 3,536 24,782 6,308
 Income from
 Continuing
 Operations $ 11,579 $ 6,052 $ 45,399 $ 10,135
 Discontinued
 Operations
 (Loss) from
 operations (net
 of income tax
 benefit of
 $550; $10,311 -
 1991) --- (912) --- (17,091)
 (Loss) on disposal
 of discontinued
 operations (net
 of income tax
 benefit of
 $10,777) --- (17,860) --- (17,860)
 (Loss) on
 Discontinued
 Operations --- (18,772) --- (34,951)
 Income (Loss) before
 Extraordinary
 item $ 11,579 $(12,720) $ 45,399 $(24,816)
 Extraordinary
 Item -- Expenses
 related to early
 extinguishment of
 debt - (Net of income
 tax benefit of
 $1,212) --- --- (2,009) ---
 Net Income
 (Loss) $ 11,579 $(12,720) $ 43,390 $(24,816)
 Income (Loss) Available to
 Common Stock:
 Income from
 Continuing
 Operations $ 10,786 $ 4,589 $ 40,839 $ 4,324
 Income (Loss)
 before
 Extraordinary
 Item 10,786 (14,183) 40,839 (30,627)
 Net Income
 (Loss) $ 10,786 $(14,183) $ 38,830 $(30,627)
 Earnings (Loss)
 Per Share:
 Income from
 Continuing
 Operations $ .39 $ .23 $ 1.67 $ .22
 Income (Loss)
 before
 Extraordinary
 Item $ .39 $ (.71) $ 1.67 $ (1.58)
 Net Income
 (Loss) $ .39 $ (.71) $ 1.59 $ (1.58)
 Average Shares
 Outstanding 27,806 20,060 24,470 19,415
 CONE MILLS CORPORATION
 CONSOLIDATED BALANCE SHEETS
 (amounts in thousands)
 (unaudited)
 ASSETS 01-03-93 12-29-91
 Current Assets:
 Cash $ 7,285 $ 458
 Accounts receivable-net 57,357 99,407
 Inventories 145,761 140,748
 Other current assets 5,164 2,013
 Total Current Assets 215,567 242,626
 Other Assets 2,105 5,844
 Property, Plant and
 Equipment - net 184,276 184,231
 $401,948 $432,701
 LIABILITIES AND STOCKHOLDERS EQUITY
 Current Liabilities:
 Notes payable and seasonal
 borrowing facility $ 6,653 $ 22,300
 Current maturities of
 long-term debt 872 6,963
 Accounts payable and accrued
 expenses 90,276 76,082
 Income taxes payable 276 2,224
 Deferred income taxes 22,848 17,017
 Total Current Liabilities 120,925 124,586
 Long-Term Debt 76,628 181,946
 Deferered Items 41,044 43,261
 Stockholders' Equity 163,351 82,908
 $ 401,948 $ 432,701
 -0- 2/8/93
 /CONTACT: John L. Bakane, Vice President and CFO, or (Investor Relations) David E. Bray, Treasurer, 919-379-6220, both of Cone Mills/
 (COE)


CO: Cone Mills Corporation ST: North Carolina IN: TEX SU: ERN

MM-SB -- CH012 -- 4250 02/08/93 16:05 EST
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Date:Feb 8, 1993
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