-----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, Fwfx1lFxXZ/wF0gIbtbfjwsx6EIlBdrasf6VoB4fdHIC0vnZTR9ntyujn9cSs5w9 T2tkONhQXOuUP9O192JG3A== 0000075288-97-000003.txt : 19970110 0000075288-97-000003.hdr.sgml : 19970110 ACCESSION NUMBER: 0000075288-97-000003 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19961129 FILED AS OF DATE: 19970109 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: 97502943 BUSINESS ADDRESS: STREET 1: 222 PIEDMONT AVE NE CITY: ATLANTA STATE: GA ZIP: 30308 BUSINESS PHONE: 4046592424 10-Q 1 FORM 10-Q 11 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 November 29, 1996 ---------------- 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, 1997 - --------------------------- ---------------------------- Common Stock, $1 par value 8,727,561 PART I. FINANCIAL INFORMATION Item 1. Financial Statements. - ----------------------------- OXFORD INDUSTRIES, INC CONSOLIDATED STATEMENT OF EARNINGS SIX MONTHS AND QUARTERS ENDED NOVEMBER 29, 1996 AND DECEMBER 1, 1995 (UNAUDITED) Six months Ended Quarter Ended ------------------------- ------------------------ $in thousands except November 29, December 1, November 29, December 1, per share amounts 1996 1995 1996 1995 ------------ ----------- ------------ ----------- Net Sales $375,751 $376,320 $203,234 $187,066 Costs and Expenses: Cost of Goods Sold 307,218 312,353 166,275 155,222 Selling, general and administrative 49,576 50,914 24,890 25,596 Provision for environmental remediation - 4,500 - - Interest 2,167 3,717 1,071 1,876 ------- ------- ------- ------- Total Costs and Expenses 358,961 371,484 192,236 182,694 ------- ------- ------- ------- Earnings Before Income Taxes 16,790 4,836 10,998 4,372 Income Taxes 6,716 1,935 4,399 1,749 ------- ------- ------- ------- Net Earnings $ 10,074 $ 2,901 $ 6,599 $ 2,623 ======== ======= ======= ======= Net earnings Per Common share $1.15 $0.33 $0.75 $0.30 ======= ======= ======= ======= Average Number of Shares Outstanding 8,741,465 8,707,324 8,707,924 8,714,170 ========= ========= ========= ========= Dividends Per Share $0.40 $0.40 $0.20 $0.20 ========= ========= ========= ========= See notes to consolidated financial statements. OXFORD INDUSTRIES, INC. CONSOLIDATED BALANCE SHEETS NOVEMBER 29, 1996, MAY 31, 1996 AND DECEMBER 1, 1995 (UNAUDITED EXCEPT FOR MAY 31, 1996) $ in thousands November 29, May 31, December 1, - -------------- 1996 1996 1995 ----------- ------- ----------- Assets - ------ Current Assets: Cash $ 3,710 $ 1,015 $ 4,254 Receivables 107,786 84,593 95,674 Inventories: Finished goods 66,956 75,787 81,981 Work in process 22,509 24,717 17,493 Fabric, trim & supplies 31,818 36,285 30,896 -------- -------- -------- 121,283 136,789 130,370 Prepaid expenses 13,910 13,747 14,565 -------- -------- -------- Total Current Assets 246,689 236,144 244,863 Property Plant and Equipment 34,299 36,659 38,961 Other Assets 5,941 6,300 7,600 -------- -------- -------- Total Assets $286,929 $279,103 $291,424 ======== ======== ======== Liabilities and Stockholders' Equity - ------------------------------------ Current Liabilities Notes payable $28,000 $25,500 $38,000 Trade accounts payable 39,644 49,676 36,022 Accrued compensation 8,715 7,225 7,784 Other accrued expenses 19,327 13,014 13,580 Dividends payable 1,743 1,760 1,745 Income taxes 3,224 - - Current maturities of long- term debt 1,397 1,632 4,625 -------- -------- -------- Total Current Liabilities 102,050 98,807 101,756 Long-Term Debt, less current maturities 44,284 45,051 48,953 Noncurrent Liabilities 4,500 4,500 4,500 Deferred Income Taxes 1,844 1,786 3,825 Stockholders' Equity: Common stock 8,716 8,803 8,730 Additional paid in capital 8,342 8,211 7,419 Retained earnings 117,193 111,945 116,241 -------- -------- -------- Total Stockholders' Equity 134,251 128,959 132,390 -------- -------- -------- Total Liabilities and Stockholders' Equity $286,929 $279,103 $291,424 ======== ======== ======== See notes to consolidated financial statements. OXFORD INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS SIX MONTHS ENDED NOVEMBER 29, 1996 AND DECEMBER 1, 1995 (UNAUDITED) November 29, December 1, 1996 1995 Cash Flows From Operating Activities --------------------------------- - ------------------------------------ Net earnings $ 10,074 $ 2,901 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 4,130 3,972 Provision for environmental remediation - 4,500 (Gain) on sale of property, plant and equipment (380) (47) Changes in working capital: Receivables (23,193) (9,626) Inventories 15,506 40,639 Prepaid expenses (163) (1,535) Trade accounts payable (10,032) (19,135) Accrued expenses and other current liabilities 7,803 90 Income taxes payable 3,224 - Deferred income taxes 58 (37) Other noncurrent assets (49) (1,193) Net cash flows provided by ----------- --------- operating activities 6,978 20,529 Cash Flows From Investing Activities - ------------------------------------ Acquisitions - (8,763) Proceeds from sale of business - 1,273 Purchase of property, plant and equipment (2,764) (4,760) Proceeds from sale of property, plant and and equipment 1,782 500 -------- ---------- Net cash used in investing activities (982) (11,750) Cash Flows From Financing Activities - ------------------------------------ Short-term borrowings 2,500 (5,500) Payments on long-term debt (1,002) 1,835 Proceeds from exercise of stock options 202 395 Purchase and retirement of common stock (1,500) - Dividends on common stock (3,501) (3,480) Net cash (used in) ------ ------- financing activities (3,301) (6,750) Net change in Cash and Cash Equivalents 2,695 2,029 Cash and Cash equivalents at Beginning of Period 1,015 2,225 -------- -------- Cash and Cash Equivalents at End of Period $ 3,710 $ 4,254 ======== ======== Supplemental Disclosure of Cash Flow Information - ------------------------------------------------ Cash paid for: Interest $ 2,010 $ 3,513 Income taxes 4,007 44 See notes to consolidated financial statements. OXFORD INDUSTRIES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS QUARTERS ENDED NOVEMBER 29, 1996 AND DECEMBER 1, 1995 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 May 31, 1996. 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 NET SALES Net sales for the second quarter of the 1997 fiscal year, which ended November 29, 1996, increased 8.6% from net sales for the same period of the prior year. Net sales for the first six months of the current year decreased by 0.2% from net sales for the same period of the prior year. Second quarter net sales increases in the Company's Men's Slacks Group, Tailored Clothing Group and Womenswear Group were slightly offset by decreases in the Men's Shirt Group and last year's divestiture (B.J. Designs) and closure (RENNY(r)). Within the Company's Men's Shirt Group, increased sales for Tommy Hilfiger(r) Golf, Tommy Hilfiger Dress shirts and Polo(r) for Boys were offset by declines in the private label lines while Ely & Walker net sales were flat with last year. The decline in the Men's Shirt Group private label net sales is attributable to the Company's exit from the wet process "wrinkle-free" product. The Company experienced an overall net sales unit volume increase of 7.6% while experiencing an overall 1.0% increase in the averages sales price per unit during the second quarter of the current year. Second quarter net sales included greater increased sales in the Company's licensed designer divisions (with higher average sales per unit) than in the private label divisions. For the first six months of the current year the Company experienced a 5.6% decrease in overall net sales unit volume while managing a 5.7% increase in the average sales price per unit. COST OF GOODS SOLD Cost of goods sold as a percentage of net sales, was 81.8% in the second quarter of the current year as compared to 83.0% in the second quarter of the prior year. For the first half of the current fiscal year, cost of goods sold as a percentage of net sales was 81.8% and 83.0% for the first half of the prior fiscal year. The decrease in cost of goods sold as a percentage of net sales was due in part to the increased sales of higher margin lines. Another factor contributing to the decreased percentage was the continuation of the shift from domestic production to offshore production yielding relative decreased costs per unit. SELLING, GENERAL AND ADMINISTRATIVE EXPENSES Selling, general and administrative expenses decreased by 2.8% to $24,890,000 in the second quarter of fiscal 1997 from $25,596,000 in the same period of fiscal 1996. Selling, general and administrative expenses decreased by 2.6% to $49,576,000 for the first six months of the current year from $50,914,000 for the first six months of the prior year. As a percentage of net sales, selling general and administrative expenses decreased to 12.2% for the second quarter of the current year from 13.7% for the second quarter of the prior year, and decreased to 13.2% for the first half of the current year from 13.5% for the first half of the prior year. The decrease in selling, general and administrative expenses are predominantly the result of last year's divisional divestiture (B.J. Designs) and closure (RENNY). INTEREST EXPENSE Net interest expense declined by $805,000 to $1,071,000 or 0.5% of net sales in the second quarter of the current year from $1,876,000 or 1.0% of net sales in the second quarter of the prior year. Net interest expense declined by $1,550,000 to $2,167,000 or 0.6% of net sales in the first half of the current year from $3,717,000 or 1.0% of net sales in the first half of the prior year. The reduction in interest expense was due primarily to the reduced inventory from the prior year. INCOME TAXES The Company's effective tax rate was 40.0% in the second quarter of both the current and previous year and for the first half of both the current and previous year and does not differ significantly from the Company's statutory rate. FUTURE OPERATING RESULTS At the current writing, the Christmas retail results appear to have been mixed with most retailers expecting only modest single-digit percentage sales gains. The Company expects the continuation of highly competitive market conditions at wholesale and at retail. The Company expects to produce a solid single-digit sales gain in the second half. If the Company's sales expectations are achieved, the Company expects a solidly profitable second half. LIQUIDITY AND CAPITAL RESOURCES OPERATING ACTIVITIES Operating activities generated $6,978,000 during the first six months of the current year and $20,529,000 in the first six months of the prior year. The primary factors contributing to this reduced generation of funds was a smaller decrease in trade payables offset by increased receivables and a smaller decrease in inventory than from the prior year. INVESTING ACTIVITIES Investing activities used $982,000 in the first half of the current year and $11,750,000 in the first half of the prior year. The primary factor contributing to this change was the acquisition of Ely & Walker in the first quarter of the prior year. FINANCING ACTIVITIES Financing activities used $3,301,000 in the first half of the current year and $6,750,000 in the first half of the prior year. The primary factors contributing to this change were the change in short- term borrowings and long-term debt. The Company purchased and retired 100,000 shares of its common stock during the six months ended November 29, 1996. During the period after the end of the second quarter through January 6,1997, no shares have been purchased and retired. Due to the exercise of employee stock options a net of 12,240 shares of the Company's common stock were issued during the first six months and 15,000 shares were issued since November 29,1996 through January 6, 1997. On January 6, 1997, the Company's Board of Directors declared a cash dividend of $.20 per share payable March 1, 1997 to shareholders of record on February 14, 1997. WORKING CAPITAL Working capital decreased from $143,107,000 at the end of the second quarter of the prior year to $137,337,000 at the end of the 1996 fiscal year and increased to $144,639,000 at the end of the second quarter of the current fiscal year. The ratio of current assets to current liabilities was 2.4 at the end of the second quarter of the prior year, 2.4 at the end of the prior fiscal year, and 2.4 at the end of the second quarter of the current year. 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 and long-term borrowings. The uses of funds primarily include working capital requirements, capital expenditures, acquisitions, 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 November 29, 1996, the Company had available for its use lines of credit with several lenders aggregating $52,000,000. The Company has agreed to pay commitment fees for these available lines of credit. At November 29, 1996, $50,000,000 was in use under these lines. Of the $50,000,000, $40,000,000 is long-term. In addition, the Company has $186,000,000 in uncommitted lines of credit, of which $98,000,000 is reserved exclusively for letters of credit. The Company pays no commitment fees for these available lines of credit. At November 29, 1996, $18,000,000 was in use under these lines of credit. Maximum borrowings from all these sources during the first six months of the current year were $96,000,000 of which $56,000,000 was short-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. There are no present plans to sell securities or enter into off-balance sheet financing arrangements. 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 fiscal 1996. PART II. OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K. - ------------------------------------------ (a) Exhibits. --------- 11 Statement re computation of per share earnings. 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 November 29, 1996. 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 9, 1997 Ben B. Blount, Jr. --------------- Chief Financial Officer EX-11 2 12 EXHIBIT 11 OXFORD INDUSTRIES, INC. COMPUTATION OF PER SHARE EARNINGS SIX MONTHS AND QUARTERS ENDED NOVEMBER 29, 1996 AND DECEMBER 1, 1995 (UNAUDITED) Six Months Ended Quarter Ended ------------------------------ -------------------------- November 29, December 1, November 29, December 1, 1996 1995 1996 1995 --------------- ------------ ------------ ---------- Net Earnings $10,074,000 $2,901,000 $6,599,000 $2,623,000 Average Number of Shares Outstanding: Primary 8,745,029 8,802,440 8,709,136 8,793,512 Fully diluted 8,747,440 8,808,214 8,709,875 8,805,171 As reported* 8,741,465 8,707,324 8,707,924 8,714,170 Net Earnings per Common Share: Primary $1.15 $0.33 $0.75 $0.30 Fully diluted $1.15 $0.33 $0.75 $0.30 As reported* $1.15 $0.33 $0.75 $0.30 * 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
5 This schedule contains sumary financial information extracted from SEC Form 10-Q and is qualified in its entirety by reference to such financial statements. 1,000 6-MOS MAY-30-1997 NOV-29-1996 3,710 0 110,921 3,135 121,283 246,689 108,470 74,171 286,929 102,050 0 0 0 8,716 125,535 286,929 375,751 375,751 307,218 307,218 49,576 0 2,167 16,790 6,716 10,074 0 0 0 10,074 1.15 1.15
EX-99 4 14 EXHIBIT 99 INDEX OF EXHIBITS INCLUDED HERIN, FORM 10-Q NOVEMBER 29, 1996 SEQUENTIAL EXHIBIT PAGE NUMBER DESCRIPTION NUMBER - ----------------------------------------------------------------- 11 Statement re computation of per share earnings 12 27 Financial Data Schedule 13 -----END PRIVACY-ENHANCED MESSAGE-----