e8vk
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 2, 2009
Oxford Industries, Inc.
(Exact name of registrant as specified in its charter)
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Georgia
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001-04365
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58-0831862 |
(State or other jurisdiction
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(Commission
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(IRS Employer |
of incorporation)
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File Number)
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Identification No.) |
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222 Piedmont Avenue, N.E., Atlanta, GA
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30308 |
(Address of principal executive offices)
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(Zip Code) |
Registrants telephone number, including area code (404) 659-2424
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02 |
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Results of Operations and Financial Condition. |
On September 2, 2009, Oxford Industries, Inc. issued a press release announcing, among other
things, its financial results for the second quarter of fiscal 2009 which ended on August 1, 2009.
The press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
The information contained in this Form 8-K (including Exhibit 99.1) shall not be deemed filed for
purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or
otherwise be subject to the liabilities of that section, nor shall it be incorporated by reference
in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be
expressly set forth by specific reference in such a filing.
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Item 9.01 |
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Financial Statements and Exhibits. |
(d) Exhibits.
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Exhibit |
Number |
99.1 |
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Press Release of Oxford Industries, Inc., dated September 2, 2009. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned hereunto duly authorized.
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OXFORD INDUSTRIES, INC.
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September 2, 2009 |
/s/ Thomas C. Chubb III
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Name: |
Thomas C. Chubb III |
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Title: |
President |
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exv99w1
Exhibit 99.1
Oxford Industries, Inc. Press Release
222 Piedmont Avenue, N.E. Atlanta, Georgia 30308
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Contact:
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Anne M. Shoemaker |
Telephone:
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(404) 653-1455 |
Fax:
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(404) 653-1545 |
E-Mail:
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ashoemaker@oxfordinc.com |
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FOR IMMEDIATE RELEASE |
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September 2, 2009 |
Oxford Industries Reports Second Quarter Results
Reports Sales of $193 million and Earnings of $0.03 per Share; Adjusted Earnings of $0.30 per Share
ATLANTA, GA Oxford Industries, Inc. (NYSE:OXM) today announced financial results for its
fiscal 2009 second quarter, which ended August 1, 2009. Consolidated net sales were $192.9 million
in the second quarter of fiscal 2009 compared to $230.5 million in the second quarter of fiscal
2008. Diluted net earnings per share were $0.03 compared to $0.09 in the second quarter of fiscal
2008.
During the quarter, the Company undertook restructuring initiatives within its Ben Sherman
operating group including the exit from, and subsequent licensing of, its footwear operations, as
well as other cost-saving initiatives. As a result, the Company noted that its earnings included
restructuring charges of $0.06 per diluted share in the second quarter of fiscal 2009. Results
also included a $0.13 per diluted share charge due to LIFO accounting and an $0.08 per diluted
share charge for the write off of unamortized deferred financing costs associated with the
retirement of its senior unsecured notes in June 2009.
Excluding the impact of these charges, adjusted diluted net earnings per share in the second
quarter of fiscal 2009 were $0.30 compared to adjusted diluted net earnings per share of $0.37 in
the second quarter of fiscal 2008. For reference, a table reconciling GAAP net earnings per share
to adjusted net earnings per share for the second quarter and first half of fiscal 2009 and fiscal
2008 is included at the end of this release.
J. Hicks Lanier, Chairman and Chief Executive Officer of Oxford Industries, Inc., commented, Our
people have risen to the occasion in these challenging times. This quarters operating results,
which exceeded our original plan, reflect solid performances by our Tommy Bahama, Lanier Clothes
and Oxford Apparel businesses. Our results have been enhanced through carefully managed inventories
and comprehensive cost reduction efforts. We are confident that we have the right team and the
right strategies to deliver value to our customers and shareholders.
(MORE)
Operating Results
Tommy Bahama reported net sales of $94.4 million for the second quarter of fiscal 2009 compared to
$112.0 million in the second quarter of fiscal 2008. The sales decrease was due to the difficult
economic environment partially offset by sales in stores opened after the beginning of the second
quarter of fiscal 2008 and increased e-commerce sales. Tommy Bahamas operating income for the
second quarter of fiscal 2009 was $13.4 million compared to $18.1 million in the second quarter of
fiscal 2008. The decrease in operating income was primarily due to the sales reduction and
decreased royalty income partially offset by reductions in SG&A and higher gross margins. At the
end of the second quarter, Tommy Bahama operated 84 retail stores compared to 78 on August 2, 2008.
Ben Sherman reported net sales of $23.6 million for the second quarter of fiscal 2009 compared to
$32.5 million in the second quarter of fiscal 2008. The reduction in sales was primarily due to
the 18% reduction in the average exchange rate of the British pound versus the United States dollar
as well as reduced wholesale shipments due to the challenging market conditions. Ben Sherman
reported an operating loss of $6.3 million in the second quarter of fiscal 2009 compared to an
operating loss of $2.0 million in the second quarter of fiscal 2008. The increased loss was
primarily due to the lower sales, the unfavorable impact on cost of goods sold related to inventory
purchases denominated in U.S. dollars but sold in other currencies, $1.4 million of restructuring
charges and lower royalty income. These items were partially offset by reductions in SG&A.
Net sales for Lanier Clothes were $25.2 million in the second quarter of fiscal 2009 compared to
$28.2 million reported in the second quarter of fiscal 2008. Lanier Clothes reported a material
improvement in operating results due to improved gross margins and reductions in SG&A. Operating
income in the second quarter of fiscal 2009 was $2.7 million compared to an $11.4 million operating
loss in the second quarter of fiscal 2008. The second quarter of fiscal 2008 included $9.5 million
of restructuring charges and certain other unusual items.
Oxford Apparel reported net sales of $49.5 million for the second quarter of fiscal 2009 compared
to $58.0 million in the second quarter of fiscal 2008. Despite the decrease in net sales,
operating income for Oxford Apparel improved to $4.1 million for the second quarter of fiscal 2009
compared to $3.7 million in the second quarter of fiscal 2008. The impact of decreased sales was
offset by reductions in SG&A related to reduced employment costs and variable operating expenses.
The second quarter of fiscal 2008 included a net charge of $0.3 million related to impairment and
other charges partially offset by gains from the resolution of a contingent liability and sale of a
trademark.
The Corporate and Other operating loss increased to $6.4 million for the second quarter of fiscal
2009 from $0.5 million in the second quarter of fiscal 2008. The increased loss was due primarily
to a LIFO accounting charge of $2.9 million in the second quarter of fiscal 2009 compared to a LIFO
accounting credit of $3.3 million in the second quarter of fiscal 2008.
(MORE)
Consolidated gross margins for the second quarter of fiscal 2009 were 40.7% compared to 41.9% in
the second quarter of fiscal 2008. The decrease in gross margin was primarily due to the impact of
LIFO accounting adjustments and the negative impact on Ben Shermans gross margins related to
inventory purchases denominated in United States dollars but sold in other currencies. The second
quarter of fiscal 2008 included $5.3 million of restructuring charges, which impacted cost of goods
sold in Lanier Clothes and Oxford Apparel.
SG&A for the second quarter of fiscal 2009 decreased to $73.6 million, or 38.2% of net sales,
compared to $89.0 million, or 38.6% of net sales, in the second quarter of fiscal 2008. The
decrease in SG&A was primarily due to significant reductions in the Companys overhead cost
structure, cost reductions associated with the exit from certain businesses, the impact of the
decline in the British pound versus the United States dollar and reductions in advertising expense.
The second quarter of fiscal 2009 and the second quarter of fiscal 2008 included net charges of
$1.4 million and $1.6 million respectively, related to restructuring charges and other unusual
items.
Royalties and other operating income for the second quarter of fiscal 2009 were $2.9 million
compared to $4.4 million in the second quarter of fiscal 2008. The decrease was primarily due to
the Companys termination of the license agreement for footwear in Tommy Bahama, the decline in the
British pound versus the United States dollar, which impacted Ben Sherman royalty income, and the
generally difficult economic conditions. The Company noted that the second quarter of fiscal 2008
included a gain on the sale of a trademark by Oxford Apparel.
Interest expense for the second quarter of fiscal 2009 was $6.2 million, which includes the write
off of $1.8 million of unamortized deferred financing costs, compared to $6.0 million in the second
quarter of fiscal 2008. The Company expects to incur approximately $5.3 million of interest expense
in each of the third and fourth quarters of fiscal 2009.
For the first half of fiscal 2009 consolidated net sales decreased to $409.6 million from $503.5
million in the first half of fiscal 2008. Excluding the impact of restructuring charges and other
unusual items, adjusted diluted net earnings per share in the first half of fiscal 2009 decreased
to $0.79 from adjusted diluted net earnings per share of $0.99 in the first half of fiscal 2008.
Including the restructuring charges and other unusual items, in the first half of fiscal 2009,
earnings per diluted share were $0.45 compared to $0.69 in the first half of fiscal 2008.
Balance Sheet and Liquidity
Total inventories at the close of the second quarter of fiscal 2009 were $97.4 million, down 25%
from the close of the second quarter of fiscal 2008. Inventory levels at Ben Sherman, Lanier
Clothes and Oxford Apparel have each decreased as the Company focused on mitigating inventory
markdown risk and promotional pressure, as well as exiting certain lines of business. Inventory
levels increased slightly year over year at
(MORE)
Tommy Bahama to support additional retail stores. Receivables totaled $78.5 million at quarter end,
down 19% from the end of last years second quarter. The decrease was attributable to lower
wholesale sales.
During the second quarter of fiscal 2009, the Company completed a private offering of $150 million
aggregate principal amount of 113/8% Senior Secured Notes due 2015. The net proceeds from the
offering, together with borrowings under the Companys U.S. revolving credit facility, were used to
repurchase, repay and/or discharge all $166.8 million aggregate principal amount of the Companys
then outstanding 87/8% Senior Unsecured Notes due 2011.
As a result of strong cash flow from operations, total debt was reduced from $221.6 million at
August 2, 2008 to $180.8 million at August 1, 2009. As of August 1, 2009, the Company had
approximately $97.3 million in unused availability under its U.S. revolving credit facility and
$3.7 million in unused availability under its U.K. revolving credit facility.
The Companys capital expenditures for fiscal 2009, including $5.8 million incurred during the
first half of fiscal 2009, are expected to be approximately $10 million. These expenditures will
consist primarily of additional Tommy Bahama and Ben Sherman retail stores and the costs associated
with the implementation of a new integrated financial system.
Fiscal 2009 Guidance
For the full fiscal year 2009, the Company expects net sales in the range of $765 million to $780
million, with a greater year over year sales decrease in the third quarter than the fourth quarter.
Adjusted diluted net earnings per share for fiscal 2009 are expected to be between $0.90 and
$1.05.
Dividend
The Company also announced that its Board of Directors has approved a cash dividend of $0.09 per
share payable on October 30, 2009 to shareholders of record as of the close of business on October
15, 2009. The Company has paid dividends every quarter since it became publicly owned in 1960.
Conference Call
The Company will hold a conference call with senior management to discuss its financial results at
4:30 p.m. EDT today. A live web cast of the conference call will be available on the Companys
website at www.oxfordinc.com. Please visit the website at least 15 minutes before the call to
register for the teleconference web cast and download any necessary software. A replay of the call
will be available through September 16, 2009. To access the telephone replay, participants should
dial (719) 457-0820. The access code
(MORE)
for the replay is 7791234. A replay of the web cast will also be available following the
teleconference on the Companys website at www.oxfordinc.com.
About Oxford:
Oxford Industries, Inc. is an international apparel design, sourcing and marketing company
featuring a diverse portfolio of owned and licensed brands and a collection of private label
apparel businesses. Oxfords brands include Tommy Bahama®, Ben Sherman®, Arnold Brant®, Ely &
Walker®, and Oxford Golf®. The Company also holds exclusive licenses to produce and sell certain
product categories under the Kenneth Cole®, Geoffrey Beene® and Dockers® labels. Oxfords wholesale
customers are found in every major channel of distribution, including national chains, specialty
catalogs, mass merchants, department stores, specialty stores and Internet retailers. The Company
operates retail stores, restaurants and Internet websites for some of its brands. The Company also
has license arrangements with select third parties to produce and sell certain product categories
under its Tommy Bahama and/or Ben Sherman brands. Oxfords stock has traded on the New York Stock
Exchange since 1964 under the symbol OXM. For more information, please visit Oxfords website at
www.oxfordinc.com.
(MORE)
CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS
This press release may include statements that are forward-looking statements within the meaning of
the federal securities laws. Generally, the words believe, expect, intend, estimate,
anticipate, project, will and similar expressions identify forward-looking statements, which
generally are not historical in nature. We intend for all forward-looking statements contained
herein or on our website, and all subsequent written and oral forward-looking statements
attributable to us or persons acting on our behalf, to be covered by the safe harbor provisions for
forward-looking statements within the meaning of the Private Securities Litigation Reform Act of
1995 and the provisions of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934 (which Sections were adopted as part of the Private Securities
Litigation Reform Act of 1995). Important assumptions relating to these forward-looking statements
include, among others, assumptions regarding the impact on consumer demand and spending of recent
economic conditions, demand for our products, timing of shipments requested by our wholesale
customers, expected pricing levels, competitive conditions, the timing and cost of planned capital
expenditures, costs of products and raw materials we purchase, access to capital and/or credit
markets, particularly in light of recent conditions in those markets, expected outcomes of pending
or potential litigation and regulatory actions and disciplined execution by key management.
Forward-looking statements reflect our current expectations, based on currently available
information, and are not guarantees of performance. Although we believe that the expectations
reflected in such forward-looking statements are reasonable, these expectations could prove
inaccurate as such statements involve risks and uncertainties, many of which are beyond our ability
to control or predict. Should one or more of these risks or uncertainties, or other risks or
uncertainties not currently known to us or that we currently deem to be immaterial, materialize, or
should underlying assumptions prove incorrect, actual results may vary materially from those
anticipated, estimated or projected. Important factors relating to these risks and uncertainties
include, but are not limited to, those described in Part I, Item 1A. Risk Factors contained in our
Annual Report on Form 10-K for fiscal 2008 and those described from time to time in our future
reports filed with the SEC.
We caution that one should not place undue reliance on forward-looking statements, which speak only
as of the date on which they are made. We disclaim any intention, obligation or duty to update or
revise any forward-looking statements, whether as a result of new information, future events or
otherwise, except as required by law.
(MORE)
OXFORD INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per share amounts)
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Second |
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Second |
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First |
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First |
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Quarter |
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Quarter |
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Half |
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Half |
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Fiscal |
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Fiscal |
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Fiscal |
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Fiscal |
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2009 |
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2008 |
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2009 |
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2008 |
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Net sales |
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$ |
192,887 |
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$ |
230,520 |
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$ |
409,618 |
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$ |
503,462 |
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Cost of goods sold |
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114,344 |
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133,849 |
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241,304 |
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290,482 |
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Gross profit |
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78,543 |
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96,671 |
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168,314 |
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212,980 |
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SG&A |
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73,637 |
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88,972 |
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152,320 |
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188,606 |
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Amortization of intangible assets |
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315 |
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4,058 |
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623 |
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4,846 |
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73,952 |
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93,030 |
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152,943 |
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193,452 |
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Royalties and other operating income |
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2,916 |
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4,351 |
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5,385 |
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8,539 |
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Operating income |
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7,507 |
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7,992 |
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20,756 |
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28,067 |
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Interest expense, net |
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6,245 |
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5,985 |
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10,810 |
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12,317 |
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Earnings before income taxes |
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1,262 |
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2,007 |
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9,946 |
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15,750 |
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Income taxes |
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729 |
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534 |
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2,901 |
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4,760 |
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Net earnings |
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$ |
533 |
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$ |
1,473 |
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$ |
7,045 |
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$ |
10,990 |
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Net earnings per common share: |
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Basic |
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$ |
0.03 |
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$ |
0.09 |
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$ |
0.45 |
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$ |
0.70 |
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Diluted |
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$ |
0.03 |
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$ |
0.09 |
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$ |
0.45 |
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$ |
0.69 |
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Weighted average common shares outstanding: |
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Basic |
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15,565 |
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15,578 |
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15,543 |
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15,778 |
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Dilution |
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109 |
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75 |
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68 |
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90 |
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Diluted |
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15,674 |
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15,653 |
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15,611 |
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15,868 |
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Dividends declared per common share |
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$ |
0.09 |
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$ |
0.18 |
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$ |
0.18 |
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$ |
0.36 |
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(MORE)
OXFORD INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands, except par amounts)
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August 1, |
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August 2, |
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2009 |
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2008 |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents |
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$ |
5,461 |
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$ |
5,243 |
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Receivables, net |
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78,467 |
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96,463 |
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Inventories, net |
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97,378 |
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129,904 |
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Prepaid expenses |
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19,395 |
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22,026 |
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Total current assets |
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200,701 |
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253,636 |
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Property, plant and equipment, net |
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86,365 |
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94,471 |
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Goodwill, net |
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257,699 |
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Intangible assets, net |
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|
138,880 |
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|
|
225,612 |
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Other non-current assets, net |
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|
22,932 |
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|
|
27,866 |
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Total Assets |
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$ |
448,878 |
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$ |
859,284 |
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LIABILITIES AND SHAREHOLDERS EQUITY |
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Current Liabilities: |
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|
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Trade accounts payable and other accrued expenses |
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$ |
75,827 |
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$ |
97,638 |
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Accrued compensation |
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|
11,132 |
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|
14,802 |
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Short-term debt and current maturities of long-term debt |
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20,417 |
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3,027 |
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Total current liabilities |
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107,376 |
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115,467 |
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Long-term debt, less current maturities |
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160,357 |
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218,604 |
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Other non-current liabilities |
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|
46,804 |
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52,724 |
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Non-current deferred income taxes |
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|
30,013 |
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59,046 |
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Commitments and contingencies |
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Shareholders Equity: |
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|
Common stock, $1.00 par value; 60,000 authorized and
16,520 issued and outstanding at August 1, 2009; and
15,858 issued and outstanding at August 2, 2008 |
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|
16,520 |
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15,858 |
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Additional paid-in capital |
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|
89,253 |
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|
86,300 |
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Retained earnings |
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|
20,561 |
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|
298,947 |
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Accumulated other comprehensive income (loss) |
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(22,006 |
) |
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12,338 |
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Total shareholders equity |
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104,328 |
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|
413,443 |
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Total Liabilities and Shareholders Equity |
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$ |
448,878 |
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$ |
859,284 |
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(MORE)
OXFORD INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
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First Half |
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First Half |
|
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Fiscal 2009 |
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Fiscal 2008 |
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Cash Flows From Operating Activities: |
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Net earnings |
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$ |
7,045 |
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$ |
10,990 |
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Adjustments to reconcile net earnings to net cash provided by
operating activities: |
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Depreciation |
|
|
9,259 |
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|
|
9,983 |
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Amortization of intangible assets |
|
|
623 |
|
|
|
4,846 |
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Amortization of deferred financing costs and bond discount |
|
|
2,392 |
|
|
|
1,307 |
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Stock compensation expense |
|
|
1,637 |
|
|
|
1,667 |
|
Loss on sale of property, plant and equipment |
|
|
42 |
|
|
|
294 |
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Equity method investment income |
|
|
(590 |
) |
|
|
(329 |
) |
Deferred income taxes |
|
|
(2,650 |
) |
|
|
(1,596 |
) |
Changes in working capital: |
|
|
|
|
|
|
|
|
Receivables |
|
|
2,574 |
|
|
|
8,983 |
|
Inventories |
|
|
34,389 |
|
|
|
28,907 |
|
Prepaid expenses |
|
|
(2,255 |
) |
|
|
(3,555 |
) |
Current liabilities |
|
|
(17,601 |
) |
|
|
(3,246 |
) |
Other non-current assets |
|
|
747 |
|
|
|
2,070 |
|
Other non-current liabilities |
|
|
(506 |
) |
|
|
1,823 |
|
|
|
|
Net cash provided by operating activities |
|
|
35,106 |
|
|
|
62,144 |
|
Cash Flows From Investing Activities: |
|
|
|
|
|
|
|
|
Investments in unconsolidated entities |
|
|
|
|
|
|
(446 |
) |
Purchases of property, plant and equipment |
|
|
(5,840 |
) |
|
|
(12,280 |
) |
Proceeds from sale of property, plant and equipment |
|
|
|
|
|
|
4 |
|
|
|
|
Net cash used in investing activities |
|
|
(5,840 |
) |
|
|
(12,722 |
) |
Cash Flows From Financing Activities: |
|
|
|
|
|
|
|
|
Repayment of revolving credit arrangements |
|
|
(138,135 |
) |
|
|
(161,870 |
) |
Proceeds from revolving credit arrangements |
|
|
138,859 |
|
|
|
111,115 |
|
Repurchase of 8 7/8% Senior Unsecured Notes |
|
|
(166,805 |
) |
|
|
|
|
Proceeds from the issuance of 11 3/8% Senior Secured Notes |
|
|
146,029 |
|
|
|
|
|
Proceeds from issuance of common stock |
|
|
193 |
|
|
|
53 |
|
Payments of debt issuance costs |
|
|
(4,878 |
) |
|
|
|
|
Dividends on common stock |
|
|
(2,919 |
) |
|
|
(8,701 |
) |
|
|
|
Net cash used in financing activities |
|
|
(27,656 |
) |
|
|
(59,403 |
) |
|
|
|
Net change in cash and cash equivalents |
|
|
1,610 |
|
|
|
(9,981 |
) |
Effect of foreign currency translation on cash and cash equivalents |
|
|
561 |
|
|
|
312 |
|
Cash and cash equivalents at the beginning of year |
|
|
3,290 |
|
|
|
14,912 |
|
|
|
|
Cash and cash equivalents at the end of period |
|
$ |
5,461 |
|
|
$ |
5,243 |
|
|
|
|
(MORE)
OXFORD INDUSTRIES, INC.
OPERATING GROUP INFORMATION
(UNAUDITED)
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second |
|
Second |
|
|
|
|
|
|
Quarter |
|
Quarter |
|
First Half |
|
First Half |
|
|
Fiscal 2009 |
|
Fiscal 2008 |
|
Fiscal 2009 |
|
Fiscal 2008 |
|
|
|
Net Sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tommy Bahama |
|
$ |
94,439 |
|
|
$ |
112,007 |
|
|
$ |
192,859 |
|
|
$ |
241,265 |
|
Ben Sherman |
|
|
23,627 |
|
|
|
32,495 |
|
|
|
47,846 |
|
|
|
69,082 |
|
Lanier Clothes |
|
|
25,204 |
|
|
|
28,184 |
|
|
|
56,711 |
|
|
|
66,871 |
|
Oxford Apparel |
|
|
49,464 |
|
|
|
58,024 |
|
|
|
112,668 |
|
|
|
126,708 |
|
Corporate and Other |
|
|
153 |
|
|
|
(190 |
) |
|
|
(466 |
) |
|
|
(464 |
) |
|
|
|
Total Net Sales |
|
$ |
192,887 |
|
|
$ |
230,520 |
|
|
$ |
409,618 |
|
|
$ |
503,462 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tommy Bahama |
|
$ |
13,379 |
|
|
$ |
18,143 |
|
|
$ |
25,629 |
|
|
$ |
37,626 |
|
Ben Sherman |
|
|
(6,308 |
) |
|
|
(2,002 |
) |
|
|
(8,284 |
) |
|
|
(1,747 |
) |
Lanier Clothes |
|
|
2,701 |
|
|
|
(11,355 |
) |
|
|
5,438 |
|
|
|
(11,376 |
) |
Oxford Apparel |
|
|
4,129 |
|
|
|
3,738 |
|
|
|
9,322 |
|
|
|
9,063 |
|
Corporate and Other |
|
|
(6,394 |
) |
|
|
(532 |
) |
|
|
(11,349 |
) |
|
|
(5,499 |
) |
|
|
|
Total Operating Income (loss) |
|
$ |
7,507 |
|
|
$ |
7,992 |
|
|
$ |
20,756 |
|
|
$ |
28,067 |
|
Interest Expense, net |
|
|
6,245 |
|
|
|
5,985 |
|
|
|
10,810 |
|
|
|
12,317 |
|
|
|
|
Earnings Before Income Taxes |
|
$ |
1,262 |
|
|
$ |
2,007 |
|
|
$ |
9,946 |
|
|
$ |
15,750 |
|
|
|
|
(MORE)
RECONCILIATION OF GAAP NET EARNINGS (LOSS) PER DILUTED SHARE TO
ADJUSTED NET EARNINGS (LOSS) PER DILUTED SHARE
Set forth below is our reconciliation of net earnings (loss) per diluted share, calculated in
accordance with generally accepted accounting principles, or GAAP, to adjusted net earnings (loss)
per diluted share, for the second quarter, first half and full year for fiscal 2009 and fiscal
2008. Adjusted net earnings (loss) per diluted share, excludes the impact of (i) certain
restructuring charges, (ii) other unusual items, (iii) the write off of unamortized financing costs
associated with changes in our debt structure, (iv) certain goodwill, intangible asset and
investment in joint venture impairment charges, (v) certain property, plant and equipment
impairment charges, (vi) LIFO accounting adjustments, (vii) the gain on the repurchase of $33.2
million face value of our senior unsecured notes and (viii) certain adjustments to tax expense
primarily resulting from changes in contingency reserves. We believe that investors often look at
ongoing operations as a measure of assessing performance and as a basis for comparing past results
against future results. Therefore, we believe that presenting our results excluding these items
provides useful information to investors because this allows investors to make decisions based on
our ongoing operations. We use the results excluding these items to discuss our business with
investment institutions, our board of directors and others. Further, we believe that presenting our
results excluding these items provides useful information to investors because this allows
investors to compare our results for the periods presented to other periods.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second |
|
Second |
|
|
|
|
|
|
|
|
|
|
Quarter |
|
Quarter |
|
First Half |
|
First Half |
|
|
|
|
|
|
Fiscal |
|
Fiscal |
|
Fiscal |
|
Fiscal |
|
Full Year |
|
Full Year |
|
|
2009 |
|
2008 |
|
2009 |
|
2008 |
|
Fiscal 2009 |
|
Fiscal 2008 |
|
|
Actual |
|
Actual |
|
Actual |
|
Actual |
|
Guidance |
|
Actual |
|
|
|
Per Diluted Common Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net earnings
(loss), as reported |
|
$ |
0.03 |
|
|
$ |
0.09 |
|
|
$ |
0.45 |
|
|
$ |
0.69 |
|
|
$ |
0.56-$0.71 |
|
|
$ |
(17.00 |
) |
Restructuring charges (1) |
|
|
0.06 |
|
|
|
0.31 |
|
|
|
0.06 |
|
|
|
0.31 |
|
|
|
0.06 |
|
|
|
0.45 |
|
Net gain from other
unusual items (2) |
|
|
|
|
|
|
(0.04 |
) |
|
|
|
|
|
|
(0.04 |
) |
|
|
|
|
|
|
(0.04 |
) |
Unamortized financing
costs written off |
|
|
0.08 |
|
|
|
|
|
|
|
0.08 |
|
|
|
|
|
|
|
0.08 |
|
|
|
0.04 |
|
Impairment charges for
goodwill, intangible
assets and investment in
joint venture |
|
|
|
|
|
|
0.14 |
|
|
|
|
|
|
|
0.14 |
|
|
|
|
|
|
|
18.66 |
|
Impairment charges for
property, plant and
equipment |
|
|
|
|
|
|
0.01 |
|
|
|
|
|
|
|
0.01 |
|
|
|
|
|
|
|
0.06 |
|
LIFO accounting
adjustments (3) |
|
|
0.13 |
|
|
|
(0.14 |
) |
|
|
0.20 |
|
|
|
(0.12 |
) |
|
|
0.20 |
|
|
|
(0.38 |
) |
Gain on repurchase of
Senior Unsecured Notes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.33 |
) |
Adjustments to tax
expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.02 |
) |
|
|
|
Adjusted net earnings
(loss) |
|
$ |
0.30 |
|
|
$ |
0.37 |
|
|
$ |
0.79 |
|
|
$ |
0.99 |
|
|
$ |
0.90-$1.05 |
|
|
$ |
1.44 |
|
|
|
|
|
|
|
(1) |
|
Charges relate to inventory disposal, payments related to license termination,
severance costs and charges related to vacated leased office space. |
|
(2) |
|
Unusual items include the resolution of a contingent liability and the sale of a
trademark, partially offset by an increase in bad debt expense due to certain significant
customer bankruptcies. |
|
(3) |
|
The first quarter of fiscal 2009 included a previously disclosed LIFO accounting
charge of $1.6 million, or $0.07 per share. |
(XXXX)