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FIELDCREST CANNON REPORTS EARNINGS

 FIELDCREST CANNON REPORTS EARNINGS
 EDEN, N.C., July 27 /PRNewswire/ -- Fieldcrest Cannon Inc.


(NYSE: FLD) today issued the following earnings statement:
 Sales in the second quarter of 1992 were $315.1 million compared to $306.8 million in the second quarter of last year, an increase of 3 percent. Bed and Bath product sales for the second quarter of 1992 increased 6 percent over the same quarter last year while Carpet & Rug sales decreased 10 percent.
 Net income for the quarter, before an extraordinary charge, was $5.4 million, or $.51 per share, compared to $1.6 million, or $.16 per share, in the second quarter of 1991. As described below, net income for the quarter was reduced by an extraordinary charge from early retirement of debt of $5.2 million, or $.49 per share. After the extraordinary charge, net income for the second quarter of 1992 was $.2 million, or $.02 per share. The second quarter of 1991 included a nonrecurring gain from sale of assets, which increased net income by $.7 million, or $.07 per share.
 Bed and Bath Division operating income for the second quarter of 1992 increased from 1991 levels. The higher operating income resulted primarily from increased sales levels and lower cotton costs. An increase in wages and other cost increases were partially offset by savings realized from the company's cost reduction efforts.
 Carpet and Rug Division operating income for the second quarter of 1992 improved significantly from 1991 levels. The division has deemphasized the lower-end, commodity price points in both residential and commercial markets. This has increased average selling prices and enhanced profit margins as emphasis has been placed on the medium-to- high end segment of these markets. Cost reduction efforts throughout the division also contributed to the improvement in operating income in the Carpet and Rug Division.
 For the first six months of 1992, sales were $586.4 million, compared to $567.3 million in the corresponding period a year ago. Net income before the extraordinary charge was $6.0 million, or $.57 per share, for the first six months of 1992 compared to a loss of $1.9 million, or $.18 per share, for the first six months of 1991. Net income after the extraordinary charge for the 1992 period was $.9 million, or $.08 per share.
 In May, the company entered into a new $235 million Revolving Credit Agreement which matures Jan. 3, 1996, replacing its existing $235 million Revolving Credit Agreement which would have matured on Dec. 31, 1992.
 On June 25, the company sold 1.5 million shares of common stock at $17.75 per share in a public offering. Also on June 25, the company sold $85 million of 11-1/4 percent senior subordinated debentures due 2004. The proceeds of these offerings were used on July 10, 1992, to redeem the $100 million 13-1/2 percent senior subordinated debentures due 2001. A prepayment premium of $5.4 million on the debentures and the write-off of approximately $3.0 million of deferred financing costs related to the debentures and the old Revolving Credit Agreement resulted in an after-tax extraordinary charge of $5.2 million, or $.49 per share. The reduced debt and lower interest rate will reduce the company's annual interest expense by approximately $4.1 million on a pre-tax basis.
 Fieldcrest Cannon, Inc. manufactures and markets bed and bath products under the Fieldcrest, St. Mary's Cannon Royal Family, Cannon Monticello, and private brand lables. Carpet and Rug Division products include high quality woven and tufted carpets and rugs marketed under the Karastan and Bigelow brands.
 FIELDCREST CANNON, INC.
 Condensed Consolidated Statements of Income
 (Dollars in thousands, except per share data)
 Periods ended Three months Six months
 June 30: 1992 1991 1992 1991
 Net sales
 Bed and bath products $255,320 $240,571 $467,762 $439,375
 Carpet and rugs 59,739 66,196 118,649 127,972
 Total net sales 315,059 306,767 586,411 567,347
 Cost of sales 259,445 258,380 483,829 480,594
 Selling, general & admin. 35,017 34,535 69,916 67,055
 Total operating costs
 and expenses 294,462 292,915 553,742 547,649
 Operating income 20,597 13,852 32,669 19,698
 Interest expense 11,019 11,536 21,988 22,087
 Other deductions (income) 48 (1,047) 31 (801)
 Income (loss) before income
 taxes 9,530 3,363 10,650 (1,588)
 Income tax provision 4,108 1,724 4,601 287
 Net income (loss) before
 extraordinary charge 5,422 1,639 6,049 (1,875)
 Extraordinary charge -
 early retirement of debt (5,179) -- (5,179) --
 Net income (loss) 243 1,639 870 (1,875)
 Average primary shares
 outstanding 10,588 10,428 10,525 10,418
 Net income (loss) before
 extraordinary charge .51 .16 .57 (.18)
 Extraordinary charge -
 early retirement of debt (.49) -- .49 --
 Primary earnings (loss)
 per share .02 .16 .08 (.18)
 Fully diluted earnings (loss)
 per share .02 .16 .08 (.18)
 Consolidated statement of financial position
 6/30/92 6/30/91
 Current assets:
 Cash $122,236 $5,688
 Accounts receivable 196,328 196,360
 Inventories 246,891 240,300
 Prepaid income tax 22,416 16,856
 Other prepaid expenses and current assets 7,437 2,454
 Total current assets 595,308 461,658
 Plant and equipment, net 375,357 392,476
 Deferred charges and other assets 31,877 25,653
 Total assets 1,002,542 879,787
 Current liabilities:
 Short-term borrowings 52,359 39,903
 Accounts and drafts payable 46,367 56,464
 Accrued liabilities 77,435 77,876
 Current portion of long-term debt 112,945 13,974
 Total current liabilities 289,106 188,217
 Long-term debt 387,167 402,321
 Deferred income taxes 37,451 29,997
 Other non-current liabilities 19,065 21,433
 Shareowners' equity 269,753 237,819
 Total liabilities and shareowners' equity 1,002,542 879,787
 Consolidated statement of cash flows
 Six months ended June 30: 1992 1991
 Cash flows from operating activities:
 Net income (loss) 870 (1,875)
 Depreciation and amortization 19,557 18,753
 Deferred income taxes 793 (3,505)
 Working capital and other (26,774) (34,980)
 Net cash provided by (used in)
 operating activities (5,554) (21,607)
 Cash flows from investing activities:
 Additions to plant and equipment (8,942) (21,058)
 Proceeds from disposal of plant and equipment 3,318 4,888
 Total cash (used in) financing activities (5,624) (16,170)
 Net cash provided by (used in) financing
 activities 124,076 30,333
 Increase (decrease) in cash 112,898 (7,444)
 The condensed consolidated financial statement 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.
 Cash flows from investing and financing activities for 1991 exclude the purchase of $8,459 of equipment financed with 9.65 percent vendor financing payable over a 60 month period.
 -0- 7/27/92
 /CONTACT: K. W. Fraser, Jr., CFO, 919-627-3253, or T. R. Staab, vice president-finance, 919-627-3117, both of Fieldcrest Cannon/
 (FLD) CO: Fieldcrest Cannon Inc. ST: North Carolina IN: TEX SU: ERN


TS-KW -- NY055 -- 3524 07/27/92 12:34 EDT
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Date:Jul 27, 1992
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