-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, hrxtGiwR3oTWsSmdcB3YLkIR03HtE7wS0OHOsmvU445zcXZcWQcA0NQtywv5kurb Mfb8w/3O6q2tMBGqhDEhfA== 0000075288-95-000002.txt : 19950509 0000075288-95-000002.hdr.sgml : 19950508 ACCESSION NUMBER: 0000075288-95-000002 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19941202 FILED AS OF DATE: 19950117 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: OXFORD INDUSTRIES INC CENTRAL INDEX KEY: 0000075288 STANDARD INDUSTRIAL CLASSIFICATION: MEN'S & BOYS' FURNISHINGS, WORK CLOTHING, AND ALLIED GARMENTS [2320] IRS NUMBER: 580831862 STATE OF INCORPORATION: GA FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-04365 FILM NUMBER: 95501569 BUSINESS ADDRESS: STREET 1: 222 PIEDMONT AVE NE CITY: ATLANTA STATE: GA ZIP: 30308 BUSINESS PHONE: 4046592424 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q [ X ] Quarterly Report Pursuant To Section 13 or 15(d) of The Securities Exchange Act of 1934 For the quarterly period ended December 2, 1994 ---------------- OR [ ] Transition Report Pursuant To Section 13 or 15(d) of The Securities Exchange Act of 1934 For the transition period from to ---------------- ----------------- Commission File Number 1-4365 OXFORD INDUSTRIES, INC. (Exact name of registrant as specified in its charter) Georgia 58-0831862 ----------------------------- ---------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) 222 Piedmont Avenue, N.E., Atlanta, Georgia 30308 -------------------------------------------------- (Address of principal executive offices) (Zip Code) (404) 659-2424 -------------- (Registrant's telephone number, including area code) Not Applicable -------------- (Former name, former address and former fiscal year, if changed since last report.) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ------- ------- Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Number of shares outstanding Title of each class as of January 6, 1995 - -------------------------- ---------------------------- Common Stock, $1 par value 8,673,818 PART I. FINANCIAL INFORMATION Item 1. Financial Statements. - ------------------------------ OXFORD INDUSTRIES, INC. CONSOLIDATED STATEMENT OF EARNINGS SIX MONTHS AND QUARTERS ENDED DECEMBER 2, 1994 AND NOVEMBER 26, 1993 Six Months Ended Quarter Ended ------------------------- ---------------------------- $ in thousands except December 2, November 26, December 2, November 26, per share amounts 1994 1993 1994 1993 - --------------------- ----------- ------------ ------------ ------------ Net Sales $357,471 $327,448 $192,167 $178,737 Costs and Expenses: Cost of Goods Sold 288,490 263,045 155,058 143,671 Selling, General and Administrative 48,918 46,685 25,870 24,572 Interest 1,705 1,229 1,041 697 ------ ------ ------ ------ Total Costs and Expenses 339,113 310,959 181,969 168,940 ------- ------- ------- ------- Earnings Before Income Taxes 18,358 16,489 10,198 9,797 Income Taxes 7,435 6,678 4,131 3,968 ------ ------ ----- ----- Net Earnings $10,923 $9,811 $6,067 $5,829 ======= ====== ====== ====== Net Earnings Per Common Share $1.26 $1.14 $0.70 $0.68 ===== ===== ===== ===== Average Number of Shares Outstanding 8,655,613 8,592,722 8,665,610 8,581,949 ========= ========= ========= ========= Dividends Per Share $0.360 $0.330 $0.180 $0.165 ====== ====== ====== ====== See notes to consolidated financial statements. OXFORD INDUSTRIES, INC. CONSOLIDATED BALANCE SHEETS DECEMBER 2, 1994, JUNE 3, 1994 AND NOVEMBER 26, 1993 (UNAUDITED EXCEPT FOR JUNE 3, 1994) December 2, June 3, November 26, $ in thousands 1994 1994 1993 - -------------- ----------------------------------------- Assets Current Assets: Cash $ 5,278 $ 3,227 $ 5,295 Receivables 107,226 75,165 91,724 Inventories: Finished Goods 57,308 59,783 51,399 Work in Process 28,003 22,549 19,783 Fabric, Trim & Supplies 31,405 32,133 24,494 ------ ------ ------ 116,716 114,465 95,676 Prepaid expenses 10,627 12,402 11,871 ------- ------- ------- Total Current Assets 239,847 205,259 204,566 Property, Plant & Equipment 33,212 33,217 31,618 Other Assets 1,375 1,471 1,614 -------- -------- -------- $274,434 $239,947 $237,798 ======== ======== ======== Liabilities and Stockholders' Equity - ------------------------------------- Current Liabilities: Notes Payable $ 46,500 $ 19,500 $ 28,000 Trade Accounts Payable 44,586 45,023 31,781 Accrued Compensation 10,137 11,687 11,810 Other Accrued Expenses 14,796 12,977 15,811 Dividends Payable 1,561 1,555 1,417 Income Taxes 793 - 2,429 Current maturities of long-term debt 4,855 5,352 4,864 ------- ------ ------ Total Current Liabilities 123,228 96,094 96,112 ======= ====== ====== Long-Term Debt, less current maturities 11,185 12,388 17,341 Deferred Income Taxes 3,878 3,730 3,620 Stockholders' Equity: Common Stock 8,672 8,638 8,586 Additional paid-in capital 6,746 6,153 5,408 Retained Earnings 120,725 112,944 106,731 ------- ------- ------- Total Stockholders' Equity 136,143 127,735 120,725 ------- -------- -------- $274,434 $239,947 $237,798 ======== ======== ======== See notes to consolidated financial statements. OXFORD INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS SIX MONTHS ENDED DECEMBER 2, 1994 AND NOVEMBER 26, 1993 (UNAUDITED) Six Months Ended ---------------- December 2, November 26, $ in thousands 1994 1993 - -------------- ------------------------- Cash Flows From Operating Activities - ------------------------------------ Net earnings $ 10,923 $ 9,811 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 3,683 3,309 Gain on sale of property, plant and equipment (177) (37) Changes in working capital: Receivables (32,061) (23,631) Inventories (2,251) 6,917 Prepaid expenses 1,775 (173) Trade accounts payable (437) (2,848) Accrued expenses and other current liabilities 275 5,247 Income taxes payable 793 2,429 Deferred income taxes 148 316 Other noncurrent assets 96 (70) Net cash flows provided by (used in) -------- ------- operating activities (17,233) 1,270 Cash Flows From Investing Activities - ------------------------------------ Purchase of property, plant and equipment (4,161) (3,931) Proceeds from sale of property, plant and and equipment 659 87 ------ ------- Net cash used in investing activities (3,502) (3,844) Cash Flows From Financing Activities - ------------------------------------ Short-term borrowings 27,000 9,500 Payments on long-term debt (1,700) (447) Proceeds from exercise of stock options 598 298 Purchase and retirement of common stock 0 (1,886) Dividends on common stock (3,112) (2,850) ------- ------- Net cash provided by financing activities 22,786 4,615 Net change in Cash and Cash Equivalents 2,051 2,041 Cash and Cash equivalents at Beginning of Period 3,227 3,254 -------- --------- Cash and Cash Equivalents at End of Period $ 5,278 $ 5,295 ======== ========= Supplemental Disclosure of Cash Flow Information - ------------------------------------------------ Cash paid for: Interest $ 1,676 $ 1,135 Income taxes 5,710 4,336 See notes to consolidated financial statements. OXFORD INDUSTRIES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS SIX MONTHS AND QUARTERS ENDED DECEMBER 2, 1994 AND NOVEMBER 26, 1993 (UNAUDITED) 1. The foregoing unaudited consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary to a fair statement of the results for the interim periods. All such adjustments are of a normal recurring nature. The results for interim periods are not necessarily indicative of results to be expected for the year. 2. The financial information presented herein should be read in conjunction with the consolidated financial statements included in the Registrant's Annual Report on Form 10-K for the fiscal year ended June 3, 1994. 3. The Company is involved in certain legal matters primarily arising in the normal course of business. In the opinion of management, the Company's liability under any of these matters would not materially affect its financial condition or results of operations. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. Results of Operations NET SALES Net sales for the second quarter of the 1995 fiscal year, which ended December 2, 1994, increased by 7.5% from net sales for the second quarter of the previous year. Net sales for the first six months of the current year increased by 9.2% from net sales for the comparable period of the prior year. This increase resulted in record sales for both the second quarter and the first half. The Oxford Slacks division contributed with heavy shipments of its Everpress wrinkle-resistant 100% cotton slacks. The Lanier Clothes division also contributed significantly to the second quarter sales gain. Our women's sportswear group also experienced a strong percentage net sales increase from net sales for the comparable period of the prior year. The Oxford Shirting division contributed with continued shipments of its Tommy Hilfiger dress shirt line, Savane and other wrinkle-resistant shirt lines. Although the division had an increase in sales, sales could have been greater had the division been able to ship all of its orders. The Company expects these difficulties to continue into the third quarter. The division has experienced extremely rapid sales growth over the past few years. Along with the expanded production requirements, the division continued pursuing its goal of obtaining more cost effective sources of production. In addition, the division experienced increased costs and capacity requirements due to the introduction of the wrinkle-resistant product lines. During the past quarter several new foreign contractors were unable to deliver acceptable goods on time. The division is working to correct the sourcing difficulties. However, it will take time for the production problems to clear. The Tommy Hilfiger dress shirt line was not impacted by these problems. COST OF GOODS SOLD Cost of goods sold as a percentage of net sales was 80.7% for the second quarter of the current year and 80.4% for the second quarter of the previous year. For the first six months of the current year, cost of goods sold as a percentage of net sales was 80.7% compared to 80.3% for the same period in the previous year. The Company's cost of goods sold was negatively affected in each period of the current year by increased cost related to utilizing new manufacturing resources and the continuing costs of expanding capacity to meet the growing demands for wrinkle-resistant products. SELLING, GENERAL AND ADMINISTRATIVE EXPENSES Selling, general and administrative expenses increased by 5.3% to $25,870,000 in the second quarter of fiscal 1995 from $24,572,000 in the same period of fiscal 1994. Selling, general and administrative expenses increased by 4.8% to $48,918,000 in the first half of fiscal 1995 from $46,685,000 in the same period of fiscal 1994. A very significant portion of the increase in these expenses are related to the start up of Savane wrinkle-resistant shirts and Tommy Hilfiger dress and golf shirts. As a percentage of net sales, selling, general and administrative expenses declined to 13.5% for the second quarter of fiscal 1995 from 13.7% for the second quarter of the prior year, and to 13.7% for the first six months of fiscal 1995 from 14.3% for the first six months of the previous year. INTEREST EXPENSE Net interest expense as a percentage of net sales increased to 0.5% in each of the second quarter and the first half of fiscal 1995 from 0.4% for the second quarter and the first half of fiscal 1994. Average short-term borrowings and the weighted average interest rate increased over the prior year. INCOME TAXES The Company's effective income tax rate was 40.5% in both fiscal 1995 and fiscal 1994 for both the second quarter and the first half. FUTURE OPERATING RESULTS The Company expects the first half sales momentum to continue through the second half. Last year's second half earnings of $1.09 per share included an earnings credit of $.18 per share from LIFO inventory accounting which the Company does not expect to repeat this year. As a result, in spite of expected increases in sales, the Company expects second half earnings to be relatively flat when compared to last year's second half. Liquidity and Capital Resources OPERATING ACTIVITIES Operating activities used $17,233,000 during the first six months of the current year and provided $1,270,000 in the first six months of the prior year. The primary factors contributing to this increased use of cash were increased receivables and increased inventory. The increased receivables represent increased sales in the last two months of the quarter. Inventory levels have increased to support anticipated sales. INVESTING ACTIVITIES Investing activities used $3,502,000 in the first six months of the current year and $3,844,000 in the same period of the prior year. Purchases consisted primarily of modernizing machinery and equipment, and initial expenditures for renovating and expanding a distribution facility. FINANCING ACTIVITIES Financing activities generated $22,786,000 in the first six months of the current year and $4,615,000 in the first six months of the prior year. The primary factors contributing to this increase were increased short-term borrowings in the current year to support the increased receivables and inventory. The Company has not purchased any of its common stock in the first half of the current year, or in the period after the end of the first half of the current year. Due to the exercise of employee stock options, a net of 34,770 shares of the Company's common stock have been issued during the six months ended December 2, 1994, and 3,200 shares have been issued since December 2, 1994 through January 6, 1995. On January 9, 1995, the Company's Board of Directors declared a cash dividend of $.20 per share, payable March 4, 1995, to shareholders of record on February 15, 1995. This is an increase of $.02 per share, or 11% per share from prior quarterly dividends. WORKING CAPITAL Working capital increased from $108,454,000 at the end of the second quarter of the previous year to $109,165,000 at the end of the 1994 fiscal year, and increased to $116,619,000 at the end of the second quarter of the current year. The ratio of current assets to current liabilities was 2.1 at the end of the second quarter of the previous year, 2.1 at the end of the previous fiscal year and 1.9 at the end of the second quarter of the current year. The major differences related to changes in the receivables, inventories and short-term borrowings as discussed above. FUTURE LIQUIDITY AND CAPITAL RESOURCES The Company believes it has the ability to generate cash to meet its foreseeable needs. The sources of funds primarily include funds provided by operations and short-term borrowings. The uses of funds primarily include working capital requirements, capital expenditures, dividends and repayment of long-term debt. The Company regularly utilizes committed bank lines of credit and other uncommitted bank resources to meet working capital requirements. On December 2, 1994, the Company had available for its use lines of credit with several lenders aggregating $20,000,000. The Company has agreed to pay commitment fees for these available lines of credit. At December 2, 1994, $15,000,000 was in use under these lines. In addition, the Company has $132,000,000 in uncommitted lines of credit, of which $47,000,000 is reserved exclusively for letters of credit. The Company pays no commitment fees for these available lines of credit. At December 2, 1994, $31,500,000 was in use under these lines of credit. Maximum short-term borrowings from all sources during the first six months of the current year were $66,500,000. The Company anticipates continued use and availability of both committed and uncommitted short-term borrowing resources as working capital needs may require. The Company considers possible acquisitions of apparel-related businesses that are compatible with its long-term strategies. There are no present plans to borrow additional long-term funds, sell securities, or enter into off-balance sheet financing arrangements. PART II. OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K. (a) Exhibits. 11 Statement re computation of per share earnings. (b) Reports on Form 8-K. The Registrant did not file any reports on Form 8-K during the quarter ended December 2, 1994. 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 thereunto duly authorized. OXFORD INDUSTRIES, INC. (Registrant) /s/R. William Lee, Jr. Date: January 17, 1995 R. William Lee, Jr. Executive Vice President /s/Debra A. Pauli Date: January 17, 1995 Debra A. Pauli Controller (Chief Accounting Officer) EX-11 2 EARNINGS PER SHARE EXHIBIT 11 OXFORD INDUSTRIES, INC. COMPUTATION OF PER SHARE EARNINGS SIX MONTHS AND QUARTERS ENDED DECEMBER 2, 1994 AND NOVEMBER 26, 1993 (UNAUDITED) Six Months Ended Quarter Ended December 2, November 26, December 2, November 26, 1994 1993 1994 1993 Net Earnings $10,923,000 $9,811,000 $6,067,000 $5,829,000 Average Number of Shares Outstanding: Primary 8,842,996 8,763,105 8,834,288 8,775,967 Fully diluted 8,847,507 8,784,420 8,842,878 8,783,006 As reported* 8,655,613 8,592,722 8,665,610 8,581,494 Net Earnings per Common Share: Primary $1.24 $1.12 $0.69 $0.66 Fully diluted $1.23 $1.12 $0.69 $0.66 As reported* $1.26 $1.14 $0.70 $0.68 * Common stock equivalents (which arise solely from outstanding stock options) are not materially dilutive and, accordingly, have not been considered in the computation of reported net earnings per common share. EX-27 3 FINANCIAL DATA SCHEDULE
5 This schedule contains summary financial information extracted from SEC Form 10-Q and is qualified in its entirety by reference to such financial statements. 1,000 6-MOS JUN-02-1995 DEC-02-1994 5,278 0 109,843 2,617 116,716 239,847 103,579 70,367 274,434 123,228 0 8,672 0 0 127,471 274,434 357,471 357,471 288,490 288,490 48,918 0 1,075 18,358 7,435 10,923 0 0 0 10,923 1.24 1.23
EX-99 4 INDEX OF EXHIBITS EXHIBIT 99 INDEX OF EXHIBITS INCLUDED HERIN, FORM 10-Q DECEMBER 2, 1994 SEQUENTIAL EXHIBIT PAGE NUMBER DESCRIPTION NUMBER - ------------------------------------------------------------------- 11 Statement re computation of per share earnings 11 27 Financial Data Schedule 12 -----END PRIVACY-ENHANCED MESSAGE-----