-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LHIuaCrErmcSrNFYt+3zMy30p0Ka7lhEcPbKroWhx5edAsH6/069tnvzSE1sLsWp JoFd4aeP0mDzYyNmPjXgRQ== 0000950152-04-006156.txt : 20040812 0000950152-04-006156.hdr.sgml : 20040812 20040812104101 ACCESSION NUMBER: 0000950152-04-006156 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040812 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040812 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BARRY R G CORP /OH/ CENTRAL INDEX KEY: 0000749872 STANDARD INDUSTRIAL CLASSIFICATION: FOOTWEAR, (NO RUBBER) [3140] IRS NUMBER: 314362899 STATE OF INCORPORATION: OH FISCAL YEAR END: 0102 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08769 FILM NUMBER: 04968818 BUSINESS ADDRESS: STREET 1: 13405 YARMOUTH RD NW CITY: PICKERINGTON STATE: OH ZIP: 43147 BUSINESS PHONE: 6148646400 MAIL ADDRESS: STREET 1: 13405 YARMOUTH RD NW CITY: PICKERINGTON STATE: OH ZIP: 43147 8-K 1 l09148ae8vk.txt R. G. BARRY CORPORATION 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): August 12, 2004 ---------------- R. G. BARRY CORPORATION ----------------------------------------------------- (Exact name of registrant as specified in its charter) Ohio 1-8769 31-4362899 - ------------------ ----------------------- ------------------ (State or other (Commission File (IRS Employer jurisdiction of Number) Identification No.) incorporation) 13405 Yarmouth Road N.W., Pickerington, Ohio 43147 ----------------------------------------------------- (Address of principal executive offices) (Zip Code) (614) 864-6400 ----------------------------------------------------- (Registrant's telephone number, including area code) Not Applicable ----------------------------------------------------- (Former name or former address, if changed since last report) ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. (a) and (b) Not applicable. (c) Exhibits. Exhibit No. Description ----------- ----------- 99 News Release issued by R. G. Barry Corporation on August 12, 2004 ITEM 12. RESULTS OF OPERATION AND FINANCIAL CONDITION. On August 12, 2004, R. G. Barry Corporation issued a news release reporting operating results for its second quarter ended July 3, 2004. A copy of the news release is attached as Exhibit 99 hereto. 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. R. G. BARRY CORPORATION Dated: August 12, 2004 By: /s/ Daniel D. Viren --------------------------- Daniel D. Viren Senior Vice President - Finance, Chief Financial Officer, Secretary and Treasurer INDEX TO EXHIBITS Current Report on Form 8-K Dated August 12, 2004 R. G. Barry Corporation Exhibit No. Description - ----------- ----------- 99 News Release issued by R. G. Barry Corporation on August 12, 2004 EX-99 2 l09148aexv99.txt EX-99 EXHIBIT 99 ---------- AT THE COMPANY: Daniel D. Viren, Senior Vice President-Finance, CFO - (614) 864-6400 Roy Youst, Director Corporate Communications - (614) 864-6400 FOR IMMEDIATE RELEASE Thursday, August 12, 2004 R.G. BARRY CORPORATION SECOND QUARTER REFLECTS COSTS OF CHANGES Slippermaker On Target Implementing New Business Model PICKERINGTON, Ohio - Thursday, August 12, 2004 - R.G. Barry Corporation (OTC Bulletin Board - RGBC) today reported its second quarter and first half 2004 operating results. For the quarter ended July 3, 2004: - net sales were $14.5 million, down from the $19.0 million reported in the second quarter of 2003; - net loss was $8.9 million, or a loss of $0.91 per share, compared to a net loss in the second quarter of 2003 of $2.8 million, or a loss of $0.29 per share. The 2004 second quarter net loss included restructuring charges totaling $3.6 million primarily related to the Company's phase-out of its manufacturing operations. For the first half ended July 3, 2004: - net sales were $32.9 million, down from the $39.4 million reported in the first half of 2003; - net loss for the half was $23.1, or a loss of $2.34 per share, compared to a net loss of $6.7 million, or a loss of $0.68 per share, in the first half of 2003. The first half 2004 net loss included restructuring and asset impairment charges totaling $11.9 million. "Although our results for the second quarter and first half reflect a significant reduction in net sales compared to the comparable periods in 2003, we are on target with implementation of our lower cost, more efficient business model," said Thomas M. Von Lehman, President and Chief Executive Officer. "We believe a substantial portion of our net sales decline is related to customer concerns that surfaced in early 2004 about our liquidity and to the introduction of a less liberal return policy for retailers. The new financing we obtained in March of this year has bolstered customer confidence in R.G. Barry, but the impact of sales lost in the first quarter of 2004 will be with us throughout the year since many retailers' fall/winter purchasing decisions are made in early spring. We are working to regain some of this lost 2004 business, but it's a very difficult thing to do once customers have made commitments elsewhere. We recognized prior to implementing our new return policy that it would have a negative impact on top-line sales this year. We believe that over the long-term the Company's business should be more profitable with fewer sales and fewer returns than it would be with greater sales volume and higher returns from retailers. -- more -- R.G. Barry Second Quarter -- continued "The phase-out of our Mexican manufacturing operations was completed in May, one month earlier than planned. Most costs related to closing the factories and their related support structure are reflected in the first half 2004 restructuring and asset impairment charges. The extensive costs and write-downs related to these closings and to the overall implementation of our new business model, together with lower net sales, will prevent us from reporting an operating profit for 2004. We do, however, expect the business to be operationally profitable for the second half of this year. "Consistent with our complete phase-out of manufacturing operations and the shift to the use of contract manufacturers is the $11.5 million reduction in our first half inventory position versus the equivalent period last year. In the third and fourth quarters of this year, we expect to realize additional operating cost savings and improved gross profits from our new, leaner way of doing business and our move to total outsourcing. We continue to believe that once fully implemented, our new business model gives the company the opportunity to return to profitability next year," Mr. Von Lehman said. R.G. Barry Corporation senior management will conduct a conference call for all interested parties at 1 p.m. EDT Thursday, August 12, 2004. Management will discuss the Company's performance, its plans for the future and will accept questions from invited participants. The conference call is available at (877) 589-6174 or (706) 679-5207 until five minutes before starting time. To listen live via the Internet, simply log on to the web at . Replays of the call will be available shortly after its completion. The audio replay can be accessed through Thursday, August 19, 2004, by calling (800) 642-1687 or (706) 645-9291 and using passcode 9280719; or for 30 days by visiting the Company's Web site at . A written transcript of the call will be available for 12 months at the Company's Web site under the "Investors/News Release" section. "SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: Statements in this news release, other than statements of historical fact, are forward-looking statements and are based upon information available to the Company on the date of this release. Our forward-looking statements inherently involve risks and uncertainties that could cause actual results and outcomes to differ materially from those anticipated by our forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the ability of the Company to substantially increase its sourcing of products from outside North America to replace the products previously manufactured in its own plants in Mexico without incurring substantial unplanned cost and without negatively impacting delivery times or product quality; the continuing willingness of CIT to fund the Company's financing requirements under the discretionary factoring and financing arrangement with the Company; the Company's ability to reduce its inventory levels in accordance with its plan; the continued demand for the Company's products by its customers and the continuing willingness of its customers and suppliers to support the Company as it implements its new business plan; the ability of the Company generally to successfully implement its new business plan; the unexpected loss of key management; the Company's ability to employ a permanent CEO; and the ability of competitors to take market share from the Company. Other risks to the Company's business are detailed in our previous press releases, shareholder communications and Securities Exchange Act filings. Except as required by applicable law, we do not undertake to update the forward-looking statements contained in this release to reflect new information that becomes available after the date hereof. -- Tables follow -- R. G. BARRY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands of dollars, except per share data)
13 weeks ended 26 weeks ended -------------- -------------- July 3, June 28, % Incr. July 3, June 28, % Incr. 2004 2003 (Decr.) 2004 2003 (Decr.) -------- -------- ------- -------- -------- ------- Net sales $ 14,516 $ 19,016 (23.7%) $ 32,946 $ 39,394 (16.4%) Cost of sales 10,483 12,563 (16.6%) 23,400 25,856 (9.5%) -------- -------- -------- -------- Gross profit 4,033 6,453 (37.5%) 9,546 13,538 (29.5%) Gross profit percent 27.8% 33.9% -- 29.0% 34.4% -- Restructuring charges 3,619 -- 11,901 200 Selling, general & admin. exp. 8,857 10,018 (11.6%) 20,054 21,575 (7.0%) -------- -------- -------- -------- Operating loss (8,443) (3,565) (136.8%) (22,409) (8,237) (172.1%) Other income 45 - 90 53 Interest expense, net (291) (297) (2.0%) (532) (471) 13.0% -------- -------- -------- -------- Loss from continuing operations before income tax benefit (8,689) (3,862) (125.0%) (22,851) (8,655) (164.0%) Income tax (expense) benefit (230) 1,474 -- (228) 3,341 -- Minority interest, net of tax (10) (7) -- (9) (35) -- -------- -------- -------- -------- Net loss from continuing operations (8,929) (2,395) (272.8%) (23,088) (5,349) (331.6%) Income (loss) from discontinued operations 16 (390) -- 16 (1,308) -- -------- -------- -------- -------- Net loss $ (8,913) $ (2,785) (220.0%) $(23,072) $ (6,657) (246.6%) ========= ========= ========= ========= Loss per common share - Basic and diluted $ (0.91) $ (0.29) (213.8%) $ (2.34) $ (0.68) (244.1%) ========= ========= ========= ========= Average shares outstanding 9,839 9,815 9,839 9,813 ===== ===== ===== =====
CONSOLIDATED BALANCE SHEETS (in thousands of dollars)
July 3, June 28, Jan. 3, -------- --------- ------- 2004 2003 2004 ---- ---- ---- ASSETS Cash $ 1,630 $ 3,714 $ 2,012 Accounts receivable, net 8,417 14,915 7,118 Inventories 32,142 43,663 32,797 Deferred and recoverable income taxes -- 7,177 -- Prepaid and other current assets 2,025 2,032 2,452 -------- -------- -------- Total current assets 44,214 71,501 44,379 Net property, plant and equipment 4,876 10,299 9,369 Goodwill, net -- 2,654 -- Deferred income taxes and other assets 3,593 12,653 7,532 -------- -------- -------- Total assets $ 52,683 $ 97,107 $ 61,280 ======== ======== ======== LIABILITIES & SHAREHOLDERS' EQUITY Short-term notes payable 20,678 18,000 2,000 Other current liabilities 13,454 18,099 16,533 Long-term debt 1,269 5,413 2,141 Accrued retirement costs and other 14,576 14,206 14,841 Minority interest 388 396 378 Shareholders' equity, net 2,318 40,993 25,387 -------- -------- -------- Total liabilities & shareholders' equity $ 52,683 $ 97,107 $ 61,280 ======== ======== ========
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