Printer Friendly

GENESCO REPORTS THIRD QUARTER OPERATING RESULTS

           GENESCO REPORTS THIRD QUARTER OPERATING RESULTS
    NASHVILLE, Tenn., Nov. 14 /PRNewswire/ -- GENESCO Inc. (NYSE: GCO)


announced today operating results for the third quarter ended Oct. 31, 1991, and for the first nine months of its fiscal year.
    GENESCO released its quarterly results at Morgan Keegan's Institutional Equity Conference in Memphis, Tenn., where William S. Wire II, chairman and chief executive officer of GENESCO, and James S. Gulmi, chief financial officer of GENESCO, were both speakers.
    Net sales for the quarter increased 3 percent to $122,126,000, as compared with sales of $118,645,000 in the same quarter last year.  The Company reported net earnings of $1,544,000 or $.06 per share, compared with a net loss of $337,000, or $.02 per share, in 1990.
    Last year's third-quarter loss included a net charge of $1.3 million, or $.06 per share, for the establishment of reserves to cover anticipated costs to sell or close two unprofitable footwear businesses.
    "After adjusting for this $1.3 million charge, this year's third quarter was still $587,000 better than last year," Wire said.
    For the nine months ended Oct. 31, 1991, GENESCO reported a net loss of $1,012,000 or $.05 per share, compared with a net loss of $2,058,000, or $.10 per share, in the same period a year ago.
   The net loss for the nine month period ended Oct. 31, 1990, includes the $1.3 million provision described above and a $1.2 million extraordinary after-tax loss from early retirement of debt.  Sales for the first nine months of the current fiscal year were $346,439,000, compared with $345,736,000 recorded in the comparable period a year ago.
    "We are continuing to see a good deal of strength in certain aspects of our footwear wholesale businesses, even though the industry continues to be impacted by the painfully slow pace of our economy," Wire said.
    "Sales in our footwear wholesale operations increased 12.5 percent for the quarter and 3.9 percent for the nine month period," Wire said. "We also had substantial improvements in operating earnings of this segment for the quarter and nine month periods.
    "Even though it appeared business was beginning to bottom out early this summer, our footwear retail and tailored clothing operations are still struggling with the continuing effects of the recession.
    "The fourth quarter is traditionally very important for GENESCO. The strong sales momentum in our footwear wholesale business is encouraging as we enter this period, but the continued softness in retail creates uncertainty," Wire concluded.
    GENESCO, headquartered in Nashville, Tenn., is a consumer products company with operations concentrated in footwear and men's apparel.
                     CONSOLIDATED EARNINGS SUMMARY
                            Three Months Ended   Nine Months Ended
                                  Oct. 31             Oct. 31
    In Thousands              1991     1990       1991        1990
    Net sales              $122,126  $118,645   $346,439    $345,736
    Cost of sales            77,743    75,676    222,123     219,586
    Selling and admin-
     istrative expenses      41,515    40,654    122,210     120,709
    Earnings from operations
     before other income and
     expenses                 2,868     2,315      2,106       5,441
    Other expenses (income):
     Interest expense         1,188     1,676      3,741       5,688
     Interest income             (4)      (68)       (37)       (764)
     Other expenses (income)    134       915       (607)        860
    Total other expenses, net 1,318     2,523      3,097       5,784
    Pretax earnings (loss)    1,550      (208)      (991)       (343)
    Income taxes                  6       129         21         542
    Earnings (loss) before
     extraordinary loss       1,544      (337)    (1,012)       (885)
    Loss on retirement of
     debt (net of tax)            0         0          0       1,173
    Net Earnings (Loss)      $1,544     ($337)   ($1,012)    ($2,058)
                     EARNINGS PER SHARE INFORMATION
                            Three Months Ended      Nine Months Ended
                                   Oct. 31               Oct.31
    In Thousands (except       1991      1990       1991        1990
      (per share amounts)
    Preferred dividend
     requirements               $79       $70       $217        $210
    Average common and common
     equivalent shares
      Primary                22,957    22,672     22,747      22,668
      Fully diluted          23,118    22,672     22,747      22,668
    Per common share
     Earnings (loss) before
      extraordinary loss
       Primary                 $.06    $(.02)     $(.05)        $(.05)
       Fully diluted           $.06    $(.02)     $(.05)        $(.05)
     Extraordinary loss
      Primary                  $.00     $.00       $.00         $(.05)
      Fully diluted            $.00     $.00       $.00         $(.05)
     Net earnings (loss)
      Primary                  $.06    $(.02)     $(.05)        $(.10)
      Fully diluted            $.06    $(.02)     $(.05)        $(.10)
    Consolidated Earnings Summary
                             Three Months Ended    Nine Months Ended
                                 October 31,           October 31,
    In Thousands                1991      1990      1991     1990
    Sales:
     Footwear retail          $51,862    $52,329   $149,103 $155,269
     Footwear wholesale and
      manufacturing            38,499     34,231    104,189  100,286
     Tailored clothing         31,765     32,085     93,147   90,181
    Total Sales              $122,126   $118,645   $346,439 $345,736
    Pretax Earnings (Loss):
     Footwear retail            ($889)    $1,036    ($2,463)  $3,212
     Footwear wholesale and
      manufacturing             5,010        292(A)  10,319    3,549(A)
     Tailored clothing          1,392      1,940      4,128    5,111
    Operating income            5,513      3,268     11,984   11,872
    Corporate Expenses:
     Interest expense          (1,188)    (1,676)    (3,741)  (5,688)
     Interest income                4         68         37      764
     Other corporate expenses  (2,779)    (1,868)(B) (9,271)  (7,291)(B)
    Total Pretax Earnings
     (Loss)                    $1,550      ($208)     ($991)   ($343)
    (A)  Includes a net reserve of $2,044,000 to sell or close a footwear wholesale company and to close a footwear components manufacturing operation.
    (B)  Includes $750,000 of income from favorable adjustments to reserves relating to previously divested operations.
    Consolidated Balance Sheet
                                                 October 31,
    In Thousands                           1991               1990
    Assets
    Cash and short-term investments       $3,448             $3,050
    Accounts receivable                   64,670             59,620
    Inventories                          124,456            145,552
    Other current assets                   7,414              6,446
    Total current assets                 199,988            214,668
    Plant, equipment and capital leases   44,949             45,211
    Other non-current assets              10,541              9,857
    Total Assets                        $255,478           $269,736
    Liabilities and Shareholders' Equity
    Total current liabilities            $50,998            $50,036
    Long-term debt and capital leases     38,237             53,550
    Other long-term liabilities           18,483             18,506
    Shareholders' equity                 147,760            147,644
    Total Liabilities and Shareholders'
     Equity                             $255,478           $269,736
    -0-                    11/14/91
    /CONTACT:  Media - Teresa N. Miller, 615-367-8281, or Financial - James S. Gulmi, 615-367-8325, both of GENESCO, Inc./
    (GCO) CO:  GENESCO, Inc. ST:  Tennessee IN:  REA SU:  ERN CM-DF -- CH003 -- 4503 11/14/91 15:15 EST
COPYRIGHT 1991 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 14, 1991
Words:1037
Previous Article:PIEDMONT MINING COMPANY REPORTS UPDATED PRELIMINARY ECONOMIC EVALUATION OF HAILE PROPERTY
Next Article:GRACE ELECTS THREE OFFICERS
Topics:


Related Articles
GENESCO EXPECTS STRONG GAINS FOR THE YEAR BUT LOWER SECOND QUARTER
GENESCO EXPECTS LOWER FISCAL 1994 EARNINGS
GENESCO REPORTS THIRD QUARTER AND NINE MONTH OPERATING RESULTS
GENESCO EXPECTS TO REPORT FOURTH QUARTER OPERATING LOSS
GENESCO REPORTS YEAR END RESULTS
GENESCO ANNOUNCES FIRST QUARTER OPERATING RESULTS
GENESCO REPORTS SECOND QUARTER RESULTS
GENESCO REPORTS SECOND QUARTER RESULTS
Genesco Addresses Third Quarter Earnings Expectations.
Genesco Inc. Announces Mathematical Adjustment To EPS Calculation.

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