10-Q 1 0001.txt 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 1, 2000 ---------------- 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 8, 2001 --------------------------- ---------------------------- Common Stock, $1 par value 7,376,511 PART I. FINANCIAL INFORMATION Item 1. Financial Statements. ----------------------------- OXFORD INDUSTRIES, INC CONSOLIDATED STATEMENT OF EARNINGS SIX MONTHS AND QUARTER ENDED December 1, 2000 AND NOVEMBER 26, 1999 (UNAUDITED) Quarter Ended Six Months Ended ------------------------- ------------------------ $ in thousands except December 1, November 26, December 1, November 26, per share amounts 2000 1999 2000 1999 ------------ ----------- ------------ ----------- Net Sales $194,869 $219,945 $399,237 $405,682 Cost of goods sold 159,073 182,024 326,097 334,061 ------- ------- ------- ------- Gross Profit 35,796 37,921 73,140 71,621 Selling, general and administrative 30,188 25,932 60,816 51,100 ------ ------- ------ ------ Earnings Before Interest and Taxes 5,608 11,989 12,324 20,521 Interest 1,248 940 2,356 1,820 ------- ------- ------- ------- Earnings Before Income Taxes 4,360 11,049 9,968 18,701 Income Taxes 1,657 4,198 3,788 7,106 ------- ------- ------- ------- Net Earnings $ 2,703 $6,851 $ 6,180 $11,595 ======== ======= ======= ======= Basic Earnings Per Common Share $0.36 $0.89 $0.82 $1.49 ======= ======= ======= ======= Diluted Earnings Per Common Share $0.36 $0.88 $0.82 $1.48 ======= ======= ======= ======= Basic Number of Shares Outstanding 7,471,708 7,712,159 7,554,393 7,786,850 ========= ========= ========= ========= Diluted Number of Shares Outstanding 7,480,281 7,751,611 7,566,043 7,846,805 ========= ========= ========= ========= Dividends Per Share $0.21 $0.21 $0.42 $0.42 ========= ========= ========= ========= See notes to consolidated financial statements. OXFORD INDUSTRIES, INC. CONSOLIDATED BALANCE SHEETS DECEMBER 1, 2000, JUNE 2, 2000 AND NOVEMBER 26, 1999 (UNAUDITED EXCEPT FOR JUNE 2, 2000) $ in thousands December 1, June 2, November 26, -------------- 2000 2000 1999 ----------- ------- ----------- Assets ------ Current Assets: Cash $ 8,539 $ 8,625 $ 10,639 Receivables 102,766 112,867 116,634 Inventories: Finished goods 102,284 90,961 71,445 Work in process 24,064 25,903 22,323 Fabric, trim & supplies 32,487 36,373 29,109 -------- -------- ------- 158,835 153,237 122,877 Prepaid expenses 13,777 12,826 12,231 -------- -------- -------- Total Current Assets 283,917 287,555 262,381 Property Plant and Equipment 35,350 37,107 37,075 Other Assets 10,819 11,904 13,106 -------- -------- -------- Total Assets $330,086 $336,566 $312,562 ======== ======== ======== Liabilities and Stockholders' Equity ------------------------------------ Current Liabilities Notes payable $23,500 $18,500 $16,000 Trade accounts payable 62,840 68,421 55,827 Accrued compensation 11,565 12,026 9,702 Other accrued expenses 20,677 22,713 26,501 Dividends payable 1,551 1,607 1,622 Income taxes 302 1,148 223 Current maturities of long- term debt 194 205 271 -------- -------- -------- Total Current Liabilities 120,629 124,620 110,146 Long-Term Debt, less current maturities 40,402 40,513 40,611 Noncurrent Liabilities 4,500 4,500 4,500 Deferred Income Taxes 2,107 2,619 1,625 Stockholders' Equity: Common stock 7,387 7,651 7,651 Additional paid in capital 11,078 11,309 11,310 Retained earnings 143,983 145,354 136,719 -------- -------- -------- Total Stockholders' Equity 162,448 164,314 155,680 -------- -------- -------- Total Liabilities and Stockholders' Equity $330,086 $336,566 $312,562 ======== ======== ======== See notes to consolidated financial statements. OXFORD INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS SIX MONTHS ENDED DECEMBER 1, 2000 AND NOVEMBER 26, 1999 (UNAUDITED) December 1, November 26, 2000 1999 Cash Flows From Operating Activities --------------------------------- ------------------------------------ Net earnings $ 6,180 $ 11,595 Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: Depreciation and amortization 4,523 4,295 Loss (Gain) on sale of property, plant and equipment 34 (112) Changes in working capital: Receivables 10,101 (1,928) Inventories (5,598) 24,051 Prepaid expenses (951) 1,560 Trade accounts payable (5,581) (5,570) Accrued expenses and other current liabilities (2,497) 877 Income taxes payable (846) 223 Deferred income taxes (512) (2,389) Other noncurrent assets 36 (833) ----------- --------- Net Cash Provided by operating activities 4,889 31,769 Cash Flows From Investing Activities ------------------------------------ Acquisitions - (1,729) Purchase of property, plant and equipment (2,340) (3,103) Proceeds from sale of property, plant and and equipment 590 121 -------- -------- Net cash used in investing activities (1,750) (4,711) Cash Flows From Financing Activities ------------------------------------ Short-term borrowings 5,000 (17,000) Payments on long-term debt (122) (158) Proceeds from exercise of stock options 186 314 Purchase and retirement of common stock (5,081) (7,348) Dividends on common stock (3,208) (3,304) ------ ------- Net cash used in financing activities (3,225) (27,496) Net change in Cash and Cash Equivalents (86) (438) Cash and Cash Equivalents at Beginning of Period 8,625 11,077 -------- -------- Cash and Cash Equivalents at End of Period $ 8,539 $ 10,639 ======== ======== Supplemental Disclosure of Cash Flow Information ------------------------------------------------ Cash paid for: Interest $ 2,628 $ 1,920 Income taxes 5,626 6,805 See notes to consolidated financial statements. OXFORD INDUSTRIES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS QUARTERS ENDED DECEMBER 1, 2000 AND NOVEMBER 26, 1999 1. The foregoing unaudited consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary for 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 2, 2000. 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. 4. The Company's business segments are the Oxford Shirt Group, Lanier Clothes, Oxford Slacks and the Oxford Womenswear Group. The Shirt Group operations encompass dress and sport shirts, and a broad range of men's and boys' sportswear. Lanier Clothes produces suits, sportcoats, suit separates and dress slacks. Oxford Slacks is a producer of private label dress and casual slacks and shorts. The Oxford Womenswear Group is a producer of budget and moderate priced private label women's apparel. Corporate and other is a reconciling category for reporting purposes and includes the Company's corporate offices, transportation and logistics and other costs and services that are not allocated to operating groups. Oxford Industries, Inc Segment Information (unaudited) $ in thousands Three Months Ended Six Months Ended Dec. 1, Nov. 26, Dec. 1, Nov. 26, 2000 1999 2000 1999 Sales Oxford Shirt Group $60,713 $64,952 $122,279 $126,257 Lanier Clothes 46,861 52,261 90,238 88,210 Oxford Slacks 26,202 26,173 52,936 49,500 Oxford Womenswear Group 60,968 76,480 133,595 141,597 Corporate and other 125 79 189 118 --------- --------- -------- -------- Total $194,869 $219,945 $399,237 $405,682 Depreciation and amortization Oxford Shirt Group $606 $601 $1,199 $1,180 Lanier Clothes 460 442 875 881 Oxford Slacks 283 286 547 550 Oxford Womenswear Group 713 675 1,393 1,221 Corporate and other 259 227 509 463 ------- ------- ------ ------- Total $2,321 $2,231 $4,523 $4,295 Oxford Industries, Inc Segment Information (unaudited) $ in thousands Three Months Ended Six Months Ended Dec. 1, Nov. 26, Dec. 1, Nov. 26, 2000 1999 2000 1999 EBIT Oxford Shirt Group $332 $4,791 $1,265 $9,559 Lanier Clothes 3,096 4,179 6,077 6,630 Oxford Slacks 1,560 1,641 3,300 2,894 Oxford Womenswear Group 416 3,864 4,430 6,514 Corporate and other 204 (2,486) (2,748) (5,076) --------- ------- ------- ------- Total 5,608 11,989 12,324 20,521 Interest expense, net 1,248 940 2,356 1,820 Earnings before taxes $4,360 $11,049 $9,968 $18,701 $ in thousands Six Months Ended Dec. 1, Nov. 26, 2000 1999 ASSETS Oxford Shirt Group $114,579 $95,701 Lanier Clothes 104,215 97,120 Oxford Slacks 44,160 40,157 Oxford Womenswear Group 80,662 89,787 Corporate and other (13,530) (10,203) -------- -------- Total $330,086 $312,562 Purchase of property, plant and equipment Oxford Shirt Group $693 $1,071 Lanier Clothes 825 263 Oxford Slacks 217 328 Oxford Womenswear Group 362 191 Corporate and other 243 1,250 ------ ------ Total $2,340 $3,103 Item 2. Management's discussion and Analysis of Financial Condition and results of Operations MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS ($ IN THOUSANDS) RESULTS OF OPERATIONS SUMMARIZED FINANCIAL DATA for the quarter and six months ended November 2000 and 1999 are as follows. (Percentages are calculated based on actual data, but columns may not add due to rounding.) THREE MONTHS ENDED SIX MONTHS ENDED Dec. 1 Nov. 26 % Dec. 1 Nov. 26 % 2000 1999 CHANGE 2000 1999 CHANGE ------- ------- ------- ------- ------- ------- NET SALES 194,869 219,945 -11.4% 399,237 405,682 -1.6% Cost of Goods Sold 159,073 182,024 -12.6% 326,097 334,061 -2.4% GROSS PROFIT 35,796 37,921 -5.6% 73,140 71,621 2.1% S,G&A 30,188 25,932 16.4% 60,816 51,100 -19.0% EBIT 5,608 11,989 -53.2% 12,324 20,521 -39.9% Interest Net 1,248 940 32.8% 2,356 1,820 29.5% EARNINGS BEFORE INCOME 4,360 11,049 -60.5% 9,968 18,701 -46.7% Income Taxes 1,657 4,198 -60.5% 3,788 7,106 -46.7% NET EARNINGS 2,703 6,851 -60.5% 6,180 11,595 -46.7% ======= ====== ====== ====== ====== ======= AS A PERCENTAGE OF SALES: NET SALES 100.0% 100.0% 100.0% 100.0% Cost of Goods Sold 81.6% 82.8% -1.2% 81.7% 82.3% -0.6% GROSS PROFIT 18.4% 17.2% 1.2% 18.3% 17.7% 0.6% S,G&A 15.5% 11.8% 3.7% 15.2% 12.6% 2.6% EBIT 2.9% 5.5% -2.6% 3.1% 5.1% -2.0% Interest Net 0.6% 0.4% 0.2% 0.6% 0.4% 0.2% EARNINGS BEFORE INCOME TAXES 2.2% 5.0% -2.8% 2.5% 4.6% -2.1% Income Taxes 0.9% 1.9% -1.0% 0.9% 1.8% -0.9% NET EARNINGS 1.4% 3.1% -1.7% 1.5% 2.9% -1.4% ===== ===== ===== ==== ===== ===== Total Company NET SALES for the second quarter were $194,869, down 11.4% from $219,945 reported in the prior year. * Below plan take-outs on basic replenishment programs resulted in sales declines in the mass merchant and department store channels. *Increased sales in the direct mail channel, primarily the Oxford Slacks Group. Sales for the first six months were $399,237, down 1.6% from $405,682 reported last year. Decreased sales in the Womenswear and Oxford Shirt groups were partially offset by increased sales in the Slacks and Lanier Clothes groups. COST OF GOODS SOLD as a percentage of sales declined 1.2% to 81.6% in the current quarter from 82.8% in the prior year. Cost of Goods Sold as a percentage of sales for the six months decreased 0.6% to 81.7% in the current year from 82.3% the prior year. The higher gross margins for the quarter and six months were attributable to: * Lower overall markdowns * Improved manufacturing efficiencies * Increased proportion of branded sales S,G&A EXPENSE for the quarter increased by $4,256 to 15.5% of net sales in the current year from 11.8% of net sales in the prior year. S,G&A expense for the six months increased to $15.2% of net sales in the current year from 12.6% in the prior year. The higher S,G&A for the quarter and the six months was attributable to: * Continuing investment in new marketing initiatives (DKNY Kids, Izod Club Golf, Tommy Hilfiger Womens Golf and Slates Tailored Clothing) contributed more than $4,000 to S,G&A in the second quarter and more than $9,000 for the six months. INTEREST EXPENSE for the quarter increased to 0.6% of net sales in the current year from 0.4% of net sales in the prior year(identical for six months). * Higher weighted average interest rates. * Higher weighted average borrowings. EFFECTIVE TAX RATE for the quarter and six months ended November 2000 was 38.0% and was unchanged from the same periods for the prior year. The effective tax rate does not differ significantly from the Company's statutory rate. Segment Results The Company is engaged in the design, manufacture and sale of consumer apparel for men, women and children. Principal markets for the Company are customers located primarily in the United States. The Company's business units are aggregated into the following reportable segments: * Oxford Shirt Group * Lanier Clothes * Oxford Slacks * Oxford Womenswear Group All data with respect to the Company's specific segments are presented before applicable intercompany eliminations. Certain prior year information has been restated to be consistent with the current presentation. (Percentages are calculated based on actual data, but columns may not add due to rounding.) THREE MONTHS ENDED SIX MONTHS ENDED Dec. 1 Nov.26 % Dec. 1 Nov. 26 % NET SALES 2000 1999 CHANGE 2000 1999 CHANGE ------ ------ ------ ------- ------- ------- Oxford Shirt Group 60,713 64,952 -6.5% 122,279 126,257 -3.2% Lanier Clothes 46,861 52,261 -10.3% 90,238 88,210 2.3% Oxford Slacks 26,202 26,173 0.1% 52,936 49,500 6.9% Oxford Womenswear Group 60,968 76,480 -20.3% 133,595 141,597 -5.7% Corporate and Other 125 79 58.2% 189 118 60.2% ------- ------- ------ ------- ------- ------ Total Net Sales 194,869 219,945 -11.4% 399,237 405,682 -1.6% ======= ======= ====== ======= ======= ====== AS A PERCENTAGE OF TOTAL SALES: ------ ------ ------ ------ Oxford Shirt Group 31.2% 29.5% 30.6% 31.1% Lanier Clothes 24.0% 23.8% 22.6% 21.7% Oxford Slacks 13.4% 11.9% 13.3% 12.2% Oxford Womenswear Group 31.3% 34.8% 33.5% 34.9% Corporate and Other 0.1% 0.0% 0.0% 0.0% ------ ------ ------ ------ Total Net Sales 100.0% 100.0% 100.0% 100.0% ====== ====== ====== ====== THREE MONTHS ENDED EBIT MARGIN EBIT Dec. 1 Nov. 26 CHANGE Dec.1 Nov. 26 2000 1999 2000 1999 ------ ------- ------ ------ ------ Oxford Shirt Group 332 4,791 -93.1% 0.5% 7.4% Lanier Clothes 3,096 4,179 -25.9% 6.6% 8.0% Oxford Slacks 1,560 1,641 -4.9% 6.0% 6.3% Oxford Womenswear Group 416 3,864 -89.2% 0.7% 5.1% Corporate and Other 204 (2,486) N/M N/M N/M ------ ------- ------ ----- ------ Total EBIT 5,608 11,989 -53.2% 2.9% 5.5% ====== ====== ======= ===== ===== SIX MONTHS ENDED EBIT MARGIN EBIT Dec. 1 Nov. 26 CHANGE Dec. 1 Nov. 26 2000 1999 2000 1999 ------ ------ ------ ------ ------- Oxford Shirt Group 1,265 9,559 -86.8% 1.0% 7.6% Lanier Clothes 6,077 6,630 -8.3% 6.7% 7.5% Oxford Slacks 3,300 2,894 14.0% 6.2% 5.8% Oxford Womenswear Group 4,430 6,514 -32.0% 3.3% 4.6% Corporate and Other (2,748) (5,076) N/M N/M N/M ------- ------- ------ ------ ------- Total EBIT 12,324 20,521 -39.9% 3.1% 5.1% ====== ======= ====== ====== ====== Oxford Shirt Group Net sales for the Oxford Shirt Group declined 6.5% in the current quarter to $60,713 from $64,952 in the prior year. The unit sales volume decline of 3.5% was compounded by the 4.4% decline in the average sales price per unit. Sales declines in the dress shirt and sportshirt divisions more than offset the incremental sales from the new golf divisions and DKNY Kids. Higher operating expenses associated with these new marketing divisions reduced EBIT for the group to $332 in the current quarter from $4,791 in the prior year. Sales for this segment for the six months declined 3.2% and the EBIT margin was 1.0%. The causes for the decline are similar to those attributed to the second quarter. Lanier Clothes Lanier Clothes reported second quarter sales of $46,861, a decline of 10.3% from $52,261 in the prior year. The unit sales volume increase of 8.5% was more than offset by the 17.4% decline in the average selling price per unit. The unit and average selling price data have been severely impacted by the shift in product mix from suits to separates. The lower sales were due to slower sell-throughs of branded tailored clothing and significantly lower sales of off-price merchandise. A small increase in S,G&A and the lower sales volume combined to push EBIT to $3,096 or 6.6% of net sales in the current year from $4,179 or 8.0% of net sales in the prior year. Sales for this segment for the six months increased 2.3%. A 9.4% increase in S,G&A caused EBIT to decline to $6,077 or 6.7% of net sales. Oxford Slacks Group Oxford Slacks reported flat sales of $26,202 in the current quarter and $26,173 in the prior year. An increase in the average selling price per unit of 14.3% more than offset the 12.5% decline in the unit volume. Sales growth to specialty catalogs offset sales declines to the chain store and mass merchant channels. Second quarter EBIT was essentially flat at $1,560 in the current quarter from $1,641 in the prior year. Sales for this segment for the six months increased 6.9%. EBIT increased to $3,300 or 6.2% of net sales. Oxford Womenswear Group Second quarter net sales for the Womenswear Group declined 20.3% from $76,480 in the prior year to $60,968 in the current year. A 20.0% decline in the unit volume was compounded by a 1.0% decline in the average selling price per unit. Order deferrals and softening demand resulted in curtailed shipments on several basic replenishment programs. The sales decline and resulting manufacturing inefficiencies reduced EBIT to $416 in the current quarter from $3,864 in the prior year. For the six months, this segment incurred a 5.7% sales decline and EBIT of $4,430 or 3.3% of net sales. Corporate and Other Corporate and Other includes the Company's corporate offices, transportation and logistics and other costs and services that are not allocated to operating groups. The primary difference in EBIT is due to LIFO accounting. Fiscal 1999 ended with abnormally high markdowns restored. In fiscal 2000, marked down inventory was liquidated to more normal levels resulting in an unfavorable charge to the income statement. In fiscal 2001, the amount of marked down inventory liquidated returned to normal levels resulting in a smaller unfavorable charge to the income statement. Under LIFO accounting, markdowns are not recognized until the inventory is liquidated. FUTURE OPERATING RESULTS The softening of demand that the Company predicted in the first quarter earnings announcement impacted the second quarter results even more than expected. Order deferrals and slowing sell-through at retail left sales short of last year and plan. The Company experienced a sizable increase in operating expenses over last year attributable primarily to the new marketing initiatives established in last year's second half. DKNY Kids, Izod Club Golf, Tommy Hilfiger Womens Golf and Slates Tailored Clothing have required considerable investment of financial and personnel resources to provide a strong foundation for future growth and profitability. In the early stages, however, the Company has incurred significant start-up costs with comparatively little sales or gross margin dollars to show for its efforts. This situation will improve as these new divisions gain critical mass. The Company expects this challenging retail environment and economic uncertainty to continue. Second half sales are expected to be essentially flat with the first half. Diluted earnings per share should improve moderately over the first half due to improved manufacturing performance and the growing contribution of new branded marketing initiatives. LIQUIDITY AND CAPITAL RESOURCES Financial Condition Cash flow from operations is the Company's primary source of liquidity. Management monitors leverage through its debt-to-total capital ratio. Working capital management is achieved primarily through management of the Company's investment in accounts receivable. Leverage Total debt represented 28.3% of capital at the end of November 2000 as compared to 26.4% at the end of May 2000 and 26.8% at the end of the November 1999. The Company believes it has adequate borrowing capacity to pursue strategic acquisitions. Working Capital Working capital increased from $152,235 at the end of the second quarter of the prior year to $162,935 at the end of the 2000 fiscal year and increased to $163,288 at the end of the second quarter of the current year. The ratio of current assets to current liabilities was 2.4 at the end of the second quarter of the prior year, 2.3 at the end of the 2000 fiscal year and 2.4 at the end of the second quarter of the current year. Accounts Receivable at the end of the second quarter of the current year decreased $13,868 or 11.9% compared to the prior year. Customer accounts receivable days outstanding decreased from 52.8 days in the prior year to 52.3 days in the current year. Accounts payable increased $7,013 or 12.6% compared to the prior year. The receivables and payables improvements were offset by a $35,958 or 29.3% increase in inventory. This increase was due to new marketing initiatives and below plan sales and slower take-out of replenishment goods. The balance of the increase was due to the purchase of Izod Clubr Golf and the decision to bring in golf product early to be embroidered for the spring selling season. The Company's overall inventory days on hand were 78.6 at the end of the second quarter of the current year and 76.0 in the prior year. Investing Activities Capital expenditures were $2,340 for the first six months compared to $3,103 in the prior year. Financing Activities The Company continued its stock repurchase activity during the quarter with the purchase and retirement of 203,200 shares of common stock. Stock repurchase activity for the six months totaled 274,600 shares. At quarter end, the remaining open authorization to repurchase outstanding shares was approximately 478,000 shares. Subsequent to quarter end the Company has repurchased 15,004 shares of common stock. On January 8, 2001 the Company's Board of Directors declared a cash dividend of $0.21 per share, payable on March 3, 2001 to shareholders of record on February 15, 2001. The Company's Board of Directors also issued a new stock repurchase authorization for up to 1,000,000 shares of the Company's common stock. FUTURE LIQUIDITY AND CAPITAL RESOURCES The Company believes it has the ability to generate cash and/or has available borrowing capacity to meet its foreseeable needs. The sources of funds primarily include funds provided by operations and both short-term and long-term borrowings. The uses of funds primarily include working capital requirements, capital expenditures, acquisitions, stock repurchases, dividends and repayment of short-term and long-term debt. The Company regularly utilizes committed bank lines of credit and other uncommitted bank resources to meet working capital requirements. On December 1, 2000 the Company had available for its use lines of credit with several lenders aggregating $45,000,000. The Company has agreed to pay commitment fees for these available lines of credit. On December 1, 2000, $45,000,000 was in use under these lines, of which $40,000,000 was long-term. In addition, the Company has $184,500,000 in uncommitted lines of credit, of which $143,500,000 is reserved exclusively for letters of credit. The Company pays no commitment fees for these available lines of credit. On December 1, 2000, $18,500,000 was in use under these lines of credit. Maximum borrowings from all these sources during the current year were $74,500,000 of which $40,000,000 was long-term. The Company anticipates continued use and availability of both committed and uncommitted resources as working capital needs may require. The Company considers possible acquisitions of apparel- related businesses that are compatible with its long-term strategies. The Company's Board of Directors has authorized the Company to purchase shares of the Company's common stock on the open market and in negotiated trades as conditions and opportunities warrant. SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 Certain statements included herein contain forward-looking statements with respect to anticipated future results, which are subject to risks and uncertainties that could cause actual results to differ materially from anticipated results. These risks and uncertainties include, but are not limited to, general economic and apparel business conditions, continued retailer and consumer acceptance of Company products, and global manufacturing costs. ADDITIONAL INFORMATION For additional information concerning the Company's operations, cash flows, liquidity and capital resources, this analysis should be read in conjunction with the Consolidated Financial Statements and the Notes to Consolidated Financial Statements contained in the Company's Annual Report for the fiscal year ended June 2, 2000. PART II. OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K. ------------------------------------------ (a) Exhibits. --------- 27 Financial Data Schedule. (b) Reports on Form 8-K. -------------------- The Registrant did not file any reports on Form 8-K during the quarter ended December 1, 2000. 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/Ben B. Blount, Jr. -------------------------- Date: January 12, 2001 Ben B. Blount, Jr. --------------- Chief Financial Officer