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WARNACO REPORTS RESULTS FOR SECOND QUARTER AND FIRST HALF; SECOND QUARTER OPERATING INCOME UP 36 PERCENT

 WARNACO REPORTS RESULTS FOR SECOND QUARTER AND FIRST HALF;
 SECOND QUARTER OPERATING INCOME UP 36 PERCENT
 NEW YORK, July 29 /PRNewswire/ -- The Warnaco Group, Inc. (NYSE: WAC) today reported its results for the second quarter and first half of 1992.
 Net revenues for the second quarter ended July 4, 1992 were $139.2 million, an increase of 7.9 percent over the $129.0 million recorded in the second quarter of last year. Operating income rose 36 percent in the quarter to $14.1 million from $10.4 million in the comparable quarter last year. EBITDA was $19.4 million, an increase of 23.4 percent from the $15.7 million recorded last year. Income from continuing operations applicable to common stockholders was $0.4 million or $.02 per share on a weighted average of 20.3 million shares outstanding compared to a loss of $11.7 million or a loss of $1.49 per share on a weighted average of 7.9 million shares outstanding.
 Included in the second quarter of 1991 was $3.0 million of income for a one-time assignment fee. Excluding this one-time income, net sales were up 10.5 percent, operating income was up 90.8 percent and EBITDA up 52.8 percent in the second quarter of 1992.
 For the six months ended July 4, 1992, Warnaco's net revenues increased 7.7 percent to $269.7 million from $250.5 million. Operating income for the first half rose 23 percent to $34.7 million from $28.3 million and EBITDA of $44.9 million or 16.6 percent of net revenues increased 16 percent from $38.7 million or 15.4 percent of net revenues. Income from continuing operations applicable to common stockholders was $3.5 million or $.20 per share on a weighted average of 17.8 million shares compared to a loss of $12.7 million or a loss of $1.62 per share on a weighted average of 7.9 million shares.
 Net loss applicable to common stockholders in the first half, after the extraordinary one-time charge of $46.5 million recorded in the first quarter relating to the company's recapitalization, was $43.0 million or a loss of $2.41 per share compared to a loss of $17.4 million or a loss of $2.21 per share recorded last year.
 Linda Wachner, chairman and chief executive officer, said that Warnaco's strong second quarter results reflected several important positive developments. "Our strategic decision to enter the mass merchandise arena with our licensed Fruit of the Loom bras for the intimate apparel market and our Puritan line for our men's wear operations is enabling us to accelerate our market share growth and dramatically strengthen our brand position in the United States. I am also pleased to report that all of our divisions contributed to our profitability in the second quarter of 1992."
 Wachner also noted that the company's recent public offering of 5 million shares and the redemption of approximately $230 million of its high yield debt enabled Warnaco to substantially reduce its interest and eliminate its preferred stock dividends. For the second quarter, interest expense was $11.9 million, compared to $19.2 million in the second quarter of 1991.
 The Warnaco Group, Inc., headquartered in New York, is a leading manufacturer of intimate apparel, menswear and accessories sold under such brand names as Warner's, Olga, Valentino Intimo, Fruit of the Loom bras and Hathaway, Christian Dior and Chaps by Ralph Lauren menswear.
 THE WARNACO GROUP, INC.
 Consolidated Statements of Operations
 Second Quarter and Six Months
 Quarter ended 7/4/92 7/6/91 Pct. Inc./
 (Dec.)
 Net revenues $139,201 $129,044 7.9
 Cost of goods sold 94,269 89,031
 Gross profit 44,932 40,013 12.3
 Gross profit pct of sales 32.3 pct 31.0 pct
 Selling, general and admin. 30,872 29,643
 Operating income 14,060 10,370 35.6
 Operating income pct of sales 10.1 pct 8.0 pct
 Amortization and depreciation 5,289 5,314
 EBITDA 19,349 15,684 23.4
 EBITDA pct of sales 13.9 pct 12.2 pct
 Non-recurring (income)/expense -- 906(A)
 Adjusted operating income 14,060 9,464
 Interest expense 11,892 19,230
 Income (loss) from cont. opers.
 before income taxes 2,168 (9,766)
 Provision for income taxes 345 579
 Income (loss) from cont. opers. 1,823 (10,345)
 Extraordinary item -- (1,800)
 Income (loss) from discont. opers. -- (2,475)
 Net income (loss) 1,823 (14,620)
 Preferred dividend (1,375) (1,375)
 Net income (loss) to common $ 448 $(15,995)
 Net income (loss) applicable
 to common stock:
 Continuing operations $ 448 $(11,720)
 Total operations $ 448 $(15,995)
 Earnings per share:
 Continuing operations $0.02 $(1.49)
 Total operations $0.02 $(2.03)
 Weighted average number of
 common shares outstanding 20,313 7,867
 Six months ended 7/4/92 7/6/91 Pct. Inc./
 (Dec.)
 Net revenues $269,719 $250,491 7.7
 Cost of goods sold 175,525 167,584
 Gross profit 94,194 82,907 13.6
 Gross profit pct of sales 34.9 pct 33.1 pct
 Selling, general and admin. 59,473 54,612
 Operating income 34,721 28,295 22.7
 Operating income pct of sales 12.9 pct 11.3 pct
 Amortization and depreciation 10,151 10,387
 EBITDA 44,872 38,682 16.0
 EBITDA pct of sales 16.6 pct 15.4 pct
 Non-recurring (income)/expense -- 906(A)
 Adjusted operating income 34,721 27,389
 Interest expense 27,629 36,361
 Income (loss) from cont. opers.
 before income taxes 7,092 (8,972)
 Provision for income taxes 854 1,004
 Income (loss) from cont. opers. 6,238 (9,976)
 Extraordinary item (46,454) (1,800)
 Income (loss) from discont. opers. -- (2,828)
 Net income (loss) (40,216) (14,604)
 Preferred dividend (2,750) (2,750)
 Net income (loss) to common $(42,966) $(17,354)
 Net income (loss) applicable
 to common stock:
 Continuing operations $ 3,488 $(12,726)
 Total operations $(42,966) $(17,354)
 Earnings per share:
 Continuing operations $ 0.20 $(1.62)
 Total operations $(2.41) $(2.21)
 Weighted average number of
 common shares outstanding 17,798 7,867
 (A) -- Represents restructuring costs associated with the company's knitwear operations. These costs consist primarily of write-offs.
 -0- 7/29/92
 /CONTACT: Linda J. Wachner, chairman, president and chief executive officer, 212-370-8204, or William S. Finkelstein, senior vice president and corporate controller, 212-370-8287, both of Warnaco, or Lawrence Rand of Kekst and Company, 212-593-2655, for Warnaco/
 (WAC) CO: Warnaco Group, Inc. ST: New York IN: TEX SU: ERN


TS-OG -- NY015 -- 4469 07/29/92 09:48 EDT
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Date:Jul 29, 1992
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