Printer Friendly

FRUIT OF THE LOOM REPORTS SOLID OPERATING RESULTS FOR ITS FIRST QUARTER

 CHICAGO, April 21 /PRNewswire/ -- Fruit of the Loom, Inc. (AMEX: FTL), one of the world's leading manufacturers and marketers of basic family apparel, today reported record sales for its first fiscal quarter of $428,900,000, an increase of 1.3 percent from the $423,300,000 of the comparable period a year ago. Earnings before the cumulative effect of change in accounting principle for the first quarter increased 22.2 percent to $44,100,000 compared to $36,100,000 for the same period in 1992. Per share results for the quarter were $.58 versus $.48 last year, an increase of 20.8 percent.
 In the first quarter of 1993, the company recorded the cumulative effect of the adoption of Statement of Financial Accounting Standard No. 109 resulting in a $3,400,000 ($.04 per share) benefit. The benefit increased net earnings to $47,500,000 and net earnings per share to $.62.
 Fruit of the Loom Chairman and Chief Executive Officer William Farley, commenting on operating results, said: "Our 1993 fiscal year promises to be another record-setting year for Fruit of the Loom. We are off to a good start with retail casualwear sales up 63 percent for the quarter, and look forward to continued strong casualwear sales throughout the year. Additionally, sales of family socks grew over 14 percent in the quarter due to the successful introduction of the product line into a number of large retail accounts. We feel this particular multi-billion-dollar market segment offers substantial growth opportunities and we hope to gain substantial market share over the next several years. To this extent, we recently purchased a 200,000-square- foot hosiery manufacturing facility in Whitmire, S.C., which will be equipped with `state-of-the-art' technology for spinning, knitting, dyeing, cloth finishing, sewing and packaging of socks for the whole family."
 "Sales of boys' and girls' underwear featuring the extremely popular children's video dynamo Barney(TM) the Dinosaur continue to soar. We have also obtained the license to `Jurasic Park,' a movie directed by Steven Spielberg to be released this quarter, which is projected to be an extremely strong license. Additionally, `Fruit of the Loom All Stars,' a premium brief for boys packed with six free baseball trading cards, has been very well received by our retail accounts," said Farley. "All in all we feel we have an outstanding set of products, particularly well positioned for the major selling seasons ahead. Additionally, with the benefit of added capacity and licensing arrangements, we should be able to address additional market segments both this year and next.
 "Expansion outside the United States is another high priority. We have established a number of new sales in Europe, most recently in Brussels to focus on the Belgian and Dutch markets. Our expansion into Eastern Europe continues as well as we have increased shipments to retail accounts in the Czech and Slovak Republics, formerly known as Czechoslovakia," Farley said. "Additionally, Tony Lyra, formerly president and general manager for a large consumer products company in Mexico, has joined Fruit of the Loom as president, international operations, Southern Hemisphere."
 John B. Holland, president and chief operating officer, said, "While the retail business was somewhat sluggish in the quarter due to adverse weather conditions and a previously strong holiday season, we did see an upturn trend in sales at the end of the quarter and early April. A continuation of this trend coupled with improved product availability, aggressive marketing and television advertising, expanded product offerings and simply put, the best value in basic family apparel, should allow for solid double-digit sales gains in the remaining quarters of this year."
 Fruit of the Loom is a vertically integrated international manufacturer and marketer of quality activewear and casualwear for the imprinted and retail markets, men's and boys' underwear and women's and girls' underwear. The company employs approximately 32,000 people in over 50 locations worldwide. Principal brand names include FRUIT OF THE LOOM(R), BVD(R), SCR ?STARS(R) and MUNSINGWEAR(R). The company is also a leading manufacturer of infants' and toddlers' underwear and family socks, using the FRUIT OF THE LOOM brand name. All Fruit of the Loom products are "unconditionally guaranteed."
 FRUIT OF THE LOOM, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATED BALANCE SHEET
 (In thousands of dollars -- Unaudited)
 March 31, Dec. 31,
 1993 1992
 ASSETS
 Current Assets
 Cash and cash equivalents
 (including restricted cash) $ 11,400 $ 57,400
 Notes and accounts receivable
 (less allowance for possible losses
 of $14,200 and $14,300, respectively) 284,500 233,400
 Inventories
 Finished goods 410,900 308,300
 Work in process 93,500 85,300
 Materials and supplies 23,600 21,400
 Other 40,600 37,800
 Total current assets 864,500 743,600
 Property, Plant and Equipment 1,032,200 977,600
 Less accumulated depreciation 307,600 290,500
 Net property, plant and equipment 724,600 687,100
 Other Assets
 Goodwill (less accumulated amortization
 of $187,600 and $181,400, respectively) 805,100 810,800
 Other 36,300 40,400
 Total other assets 841,400 851,200
 $2,430,500 $2,281,900
 LIABILITIES & STOCKHOLDERS' EQUITY
 Current Liabilities
 Short-term notes payable $ 165,900 $ 65,100
 Current maturities of long-term debt 114,600 123,100
 Trade accounts payable 65,900 80,500
 Other accounts payable and
 accrued expenses 206,500 164,900
 Total current liabilities 552,900 433,600
 Noncurrent Liabilities
 Long-term debt 735,800 756,300
 Deferred income taxes and other
 noncurrent liabilities 244,700 237,000
 Total noncurrent liabilities 980,500 993,300
 Common Stockholders' Equity 897,100 855,000
 Total $2,430,500 $2,281,900
 FRUIT OF THE LOOM, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATED STATEMENT OF EARNINGS (Unaudited)
 (In thousands, except per share data)
 Three Months Ended
 March 31,
 1993 1992
 Net sales $428,900 $423,300
 Cost of sales 271,200 279,700
 Gross earnings 157,700 143,600
 Selling, general and
 administrative expenses 57,200 51,600
 Goodwill amortization 6,200 6,200
 Operating earnings 94,300 85,800
 Interest expense (17,600) (21,500)
 Other expense - net (1,900) (2,000)
 Earnings before income tax
 expense and cumulative effect
 of change in accounting principle 74,800 62,300
 Income tax expense 30,700 26,200
 Earnings before cumulative effect
 of change in accounting principle 44,100 36,100
 Cumulative effect of change in
 accounting for income taxes 3,400(A) --
 Net earnings $ 47,500 $ 36,100
 Earnings per common share:
 Earnings before cumulative effect
 of change in accounting principle $ .58 $ .48
 Cumulative effect of change in
 accounting for income taxes .04(A) --
 Net earnings per common share $ .62 $ .48
 Average common shares outstanding 76,000 76,000
 (A) In the first quarter of 1993, Fruit of the Loom recorded the cumulative effect of an accounting change related to the adoption of Statement of Financial Accounting Standards No. 109 "Accounting for Income Taxes" resulting in a $3.4 million benefit.
 FRUIT OF THE LOOM, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)
 (In thousands of dollars)
 Three Months Ended
 March 31,
 1993 1992
 CASH FLOWS FROM OPERATING ACTIVITIES
 Net earnings $ 47,500 $ 36,100
 Adjustments to reconcile to net cash
 provided by operating activities:
 Cumulative effect of change in
 accounting for income taxes (3,400) --
 Depreciation and amortization 28,000 24,600
 Deferred income taxes 5,400 --
 Increase in working capital (133,600) (81,400)
 Decrease in income taxes and interest
 receivable -- 59,900
 Other-net (8,800) (7,800)
 Net cash (used for) provided by
 operating activities (64,900) 31,400
 CASH FLOWS FROM INVESTING ACTIVITIES
 Capital expenditures (59,200) (29,200)
 Other-net 4,200 (1,600)
 Net cash used for investing activities (55,000) (30,800)
 CASH FLOWS FROM FINANCING ACTIVITIES
 Increase (decrease) in short-term
 notes payable 100,800 (1,400)
 Principal payments on long-term debt
 and capital leases (28,500) (22,600)
 Issuances of common stock 2,500 700
 Other-net (900) (600)
 Net cash provided by (used for)
 financing activities 73,900 (23,900)
 Net decrease in Cash and cash equivalents
 (including restricted cash) (46,000) (23,300)
 Cash and cash equivalents (including
 restricted cash) at beginning of period 57,400 31,400
 Cash and cash equivalents (including
 restricted cash) at end of period $ 11,400 $ 8,100
 -0- 4/21/93
 /CONTACT: Mark A. Steinkrauss, vice president-investor relations, 312-993-1889, of Fruit of the Loom, Inc./
 (FTL)


CO: Fruit of the Loom, Inc. ST: Illinois IN: TEX SU: ERN

LR -- NY085 -- 8826 04/21/93 14:12 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 21, 1993
Words:1410
Previous Article:CUSTOMERS, INVESTORS TO SHARE EVENLY IN SAVINGS, SAYS IPALCO CHAIRMAN
Next Article:FIRST FEDERAL CAPITAL CORP ANNOUNCES NEW CHAIRMAN OF THE BOARD
Topics:


Related Articles
WARNACO REPORTS RESULTS FOR SECOND QUARTER AND FIRST HALF; SECOND QUARTER OPERATING INCOME UP 36 PERCENT
FRUIT OF THE LOOM CONCLUDES RECORD-BREAKING YEAR: NET EARNINGS UP 61 PERCENT FOR THE YEAR
FRUIT OF THE LOOM REPORTS OPERATING RESULTS FOR THE THIRD QUARTER
FRUIT OF THE LOOM, INC. REPORTS OPERATING RESULTS FOR THE FIRST QUARTER
FRUIT OF THE LOOM, INC., REPORTS SECOND QUARTER OPERATING RESULTS
FRUIT OF THE LOOM, INC. REPORTS OPERATING RESULTS FOR THIRD QUARTER
FRUIT OF THE LOOM, INC. COMMENTS ON FOURTH QUARTER CHARGES TO OPERATIONS
FRUIT OF THE LOOM, INC. REPORTS OPERATING RESULTS FOR FIRST QUARTER
FRUIT OF THE LOOM, INC. REPORTS OPERATING RESULTS FOR SECOND QUARTER
Fruit of The Loom, Inc. Reports Operating Results for Second Quarter

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