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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
February
15, 2006
JONES APPAREL GROUP, INC.
Pennsylvania (State or Other Jurisdiction of Incorporation) |
1-10746 (Commission File Number) |
06-0935166 (IRS Employer Identification No.) |
250 Rittenhouse Circle Bristol, PA 19007 (Address of principal executive offices) |
||
(215) 785-4000
(Registrant's telephone number, including area code) |
||
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:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
On February 15, 2006, Jones Apparel Group, Inc. issued a press release reporting its results of operations for the fourth quarter and full year 2005, as well as the following:
A copy of the press release is attached as Exhibit 99.1 to this report.
This information shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or 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.
The press release attached as Exhibit 99.1 contains non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles. To supplement the Company's consolidated financial statements presented in accordance with GAAP, it is presenting non-GAAP information regarding the strategic review of its infrastructure.
These non-GAAP measures are provided to enhance the user's overall understanding of the Company's current financial performance. Specifically, the Company believes the non-GAAP results provide useful information to both management and investors by excluding certain expenses that may not be indicative of our core operating results. In addition, because the Company has historically reported certain non-GAAP results to investors, the Company believes the inclusion of non-GAAP numbers provides consistency in our financial reporting. These measures should be considered in addition to results prepared in accordance with GAAP, but are not a substitute for or superior to GAAP results. The non-GAAP measures of adjusted net income and adjusted diluted earnings per share included in the attached press release have been reconciled to the equivalent GAAP measure.
Item 9.01 Financial Statements and Exhibits.
Exhibit No. | Description |
99.1 | Press Release of the Registrant dated February
15, 2006. |
2
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.
JONES APPAREL GROUP, INC. (Registrant) By: /s/ Wesley R. Card |
Date: February 15, 2006
3
Exhibit Index
Exhibit No. | Description |
99.1 | Press Release of the Registrant dated February 15, 2006. |
4
Exhibit 99.1
For Immediate Release
Jones Apparel Group, Inc.
Contacts: |
Wesley R. Card, Chief Operating and Financial Officer |
New York, New York - February 15, 2006 - Jones Apparel Group, Inc. (NYSE:JNY) today reported results for the fourth quarter and full year 2005. Revenues increased to $1,221.0 million for the fourth quarter ended December 31, 2005, from $1,082.9 million for the fourth quarter of 2004. Revenues for the full year 2005 increased to $5,074.2 million, from $4,649.7 million for the full year 2004.
Earnings per share were $0.48 for the fourth quarter of 2005, as compared to $0.28 for the fourth quarter of 2004. Earnings per share were $2.30 for the full year 2005, as compared to $2.39 for the full year 2004. Excluding the impact of expenses related to the Company's restructuring and strategic operating initiatives, earnings per share were $0.51 and $2.48 for the fourth quarter and full year 2005, respectively. These results included a $5.7 million reversal of income tax accruals resulting from the favorable resolution of various foreign and state income tax audits.
Peter Boneparth, President and Chief Executive Officer, stated, "We were very pleased with our fourth quarter performance versus the prior year period. We realized better than expected results in our licensed businesses and our Gloria Vanderbilt moderate apparel business, as well as our luxury Barneys retail stores. We noted improvement in the selling of our footwear products and were also satisfied with the performance of our apparel product lines. We were pleased with our Barneys luxury stores, which posted an 8.0% comparable store sales increase for the fourth quarter, bringing the full year comparable store sales increase to 10.8%. Our footwear and ready to wear stores posted a 2.8% comparable store sales increase for the fourth quarter, resulting in a 0.2% decrease for the full year."
Wesley R. Card, Chief Operating and Financial Officer, commented, "Our inventory levels at December 31, 2005 were $650.0 million, compared to $664.2 million at December 31, 2004. Our accounts receivable were $458.4 million at year-end, compared to $448.3 million at December 31, 2004. We generated full year operating cash flow of $427.4 million and our debt to total capitalization ratio at December 31, 2005 was 30.1%. As of December 31, we had $129.5 million of short-term borrowings and $273.4 million of outstanding letters of credit against $1.75 billion of committed bank lines, allowing us continued significant financial flexibility."
"During the quarter, we repurchased common stock totaling $35.9 million or 1.25 million shares, resulting in 2005 full year common stock repurchases of $235.2 million or 7.6 million shares. At December 31, 2005, $56.2 million remained available for repurchase under previous authorizations by the Company's Board of Directors. On February 14, 2005, the Board authorized an additional $250 million for future stock repurchases", Mr. Card continued.
Mr. Boneparth added, "2005 was a challenging year, given the uncertain economic conditions, coupled with the consolidation of our two largest wholesale customers, and we expect 2006 to provide continued similar challenges. However, we have been very proactive in making many strategic changes to the business that will better position us for the future:
Our growth strategy for 2006 and beyond is to continue our strategic partnership with our wholesale customers. Further, we continue to explore our own vertical retail opportunities through our Barneys flagship and co-op concept stores, as well as our own footwear and ready to wear stores. We plan to continue opening store locations under new concepts, such as Anne Klein, and to introduce accessories store locations during 2006. We expect the growth in our retail channel of distribution to continue to provide further diversification and balance. This strategy has been effective and has reduced the sales concentration to our largest wholesale customer, Federated Department Stores, to represent 19% of gross sales in 2005, as compared to 26% in 2004."
As announced on February 3, 2006, we completed the sale of the Polo Jeans Company business to Polo Ralph Lauren Corporation and settled all of the outstanding litigation related to the Lauren licensed business. The allocation of proceeds resulted in $255 million realized on the sale of Polo Jeans (subject to adjustments based on final inventory levels), and $100 million on the litigation settlement. As a result of the sale of the business, the Company transferred certain assets, including inventory and store fixtures to Ralph Lauren Corporation and will allocate $356.7 million in goodwill to the transaction. In the first quarter of 2006, Jones Apparel expects to record a non-cash net loss on the sale of the business of approximately $140 million and an after tax gain of approximately $60 million related to the litigation settlement, or a combined after tax loss of approximately $80 million. The after tax cash proceeds from the sale of the business and the settlement of the litigation are expected to be approximately $350 million. The Company will continue to provide various third party services to Polo Ralph Lauren Corporation under a transition services agreement for a period of up to one year. During that period, the Company will continue to produce denim product in its manufacturing facility in Durango, Mexico, and provide distribution services from its El Paso, Texas distribution center.
Mr. Boneparth added, "We estimate 2006 net revenues to be in a range of $4.65 billion to $4.75 billion (exclusive of the Polo Jeans Company business). As we previously stated, we are targeting 2006 adjusted earnings per share to be equal to or exceed 2005 adjusted earnings per share of $2.48, after excluding the impact of the sale of the Polo Jeans Company business (which contributed approximately $42 million, or $0.22 earnings per share), and the favorable tax adjustments and Canadian tax repatriation realized in 2005 ($0.07 earnings per share) to result in $2.19 in comparable 2005 earnings per share."
Update of Strategic Operating Review and Initiatives
Mr. Boneparth concluded, "We are very pleased with the progress of our strategic operating review and initiatives that are well underway. An update on those initiatives is summarized below. We anticipate that we will realize cost reductions of approximately $30 million in 2006, which will serve to offset the impact from the Federated-May consolidation."
- We closed our Bristol, PA distribution center during December 2005. The units have been absorbed within other distribution centers within our network. We realized a charge in the fourth quarter of $3.6 million related to severance and other employee related matters.
- We selected the SAP Apparel and Footwear Solution as our enterprise resource planning system, which will ultimately be implemented company-wide utilizing one universal platform. SAP will be integrated with the UGS product development management system, which is currently being implemented across the apparel businesses.
- We are actively implementing process changes to more effectively utilize the capabilities of third party manufacturers and to increase pre-production collaboration efforts, thereby increasing speed to market and improving margins. This has already been achieved in many of our moderate businesses and is being implemented in the better businesses.
- We have substantially completed the restructuring of our owned manufacturing facilities in Mexico. In connection with this restructuring, we recorded $12.2 million of pre-tax costs during 2005, which included: (i) $5.3 million of one-time termination benefits, (ii) $3.2 million of losses on the sale of property, plant, and equipment, (iii) $2.6 million of contract termination costs and, (iv) $1.1 million of legal and other associated costs.
- Upon completion of the Polo Jeans Company transition services agreement, we will be evaluating our remaining manufacturing and distribution facilities.
- We completed a review of all general and administrative support areas, and will implement best practices in connection with the migration of our system platforms to SAP.
The Company's Board of Directors has declared a regular quarterly cash dividend of $0.12 per share to all common stockholders of record as of March 3, 2006 for payment on March 17, 2006.
The Company will host a conference call with management to further review this press release at 8:30 am eastern time today and is accessible by dialing 412-858-4600, or through a web cast at www.jny.com. The call will be recorded and made available through February 23. The recorded call may be accessed by dialing 877-344-7529 and entering account number 384850.
Jones Apparel Group, Inc. (www.jny.com), a Fortune 500 company, is a leading designer, marketer and wholesaler of branded apparel, footwear and accessories. We also market directly to consumers through our chain of specialty retail and value-based stores, and operate the Barneys New York chain of luxury stores. Our nationally recognized brands include Jones New York, Evan-Picone, Norton McNaughton, Gloria Vanderbilt, Erika, l.e.i., Energie, Nine West, Easy Spirit, Enzo Angiolini, Bandolino, Joan & David, Mootsies Tootsies, Sam & Libby, Napier, Judith Jack, Kasper, Anne Klein, Albert Nipon, Le Suit and Barneys New York. The Company also markets costume jewelry under the Givenchy brand licensed from Givenchy Corporation and footwear under the Dockers Women brand licensed from Levi Strauss & Co. Each brand is differentiated by its own distinctive styling, pricing strategy, distribution channel and target consumer. We primarily contract for the manufacture of our products through a worldwide network of quality manufacturers. We have capitalized on our nationally known brand names by entering into various licenses for several of our trademarks, including Jones New York, Evan-Picone, Anne Klein New York, Nine West, Gloria Vanderbilt and l.e.i., with select manufacturers of women's and men's products which we do not manufacture. For more than 30 years, we have built a reputation for excellence in product quality and value, and in operational execution.
Presentation of Information in the Press Release
In an effort to provide investors with additional information regarding
the Company's consolidated operating results as determined by generally accepted
accounting principles (GAAP), the Company has also disclosed in this press
release non-GAAP information regarding the strategic review of its
infrastructure as discussed above. The Company believes that providing further
information resulting from the execution of the strategic review will allow
investors to better analyze its ongoing results. The Company has also provided a
reconciliation of its GAAP results to adjusted results.
Certain statements contained herein are "forward-looking
statements" within the meaning of the Private Securities Litigation Reform
Act of 1995. All statements regarding the Company's expected financial position,
business and financing plans are forward-looking statements. The words
"believes," "expect," "plans,"
"intends," "anticipates" and similar expressions identify
forward-looking statements. Forward-looking statements also include
representations of the Company's expectations or beliefs concerning future
events that involves risks and uncertainties, including:
A further description of these risks and uncertainties and other important
factors that could cause actual results to differ materially from the Company's
expectations can be found in the Company's Annual Report on Form 10-K/A for the
fiscal year ended December 31, 2004, including, but not limited to, the
Statement Regarding Forward-Looking Disclosure and the information concerning
trends and risk factors included in Management's Discussion and Analysis of
Financial Condition and Results of Operations therein, and in the Company's
other filings with the Securities and Exchange Commission. Although the Company
believes that the expectations reflected in such forward-looking statements are
reasonable, such expectations may prove to be incorrect. The Company does not
undertake to publicly update or revise its forward-looking statements as a
result of new information, future events or otherwise.
# # #
JONES APPAREL GROUP, INC.
CONSOLIDATED OPERATING RESULTS
All amounts in millions except per share data
FOURTH QUARTER (Unaudited)
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FULL YEAR
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2005 | 2004 | 2005 | 2004 | ||||||||
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Net sales | $ 1,201.6 | 98.4% | $ 1,062.0 | 98.1% | $ 5,014.6 | 98.8% | $ 4,592.6 | 98.8% | |||
Licensing income (net) | 19.4 | 1.6% | 20.9 | 1.9% | 59.6 | 1.2% | 57.1 | 1.2% | |||
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Total revenues | 1,221.0 | 100.0% | 1,082.9 | 100.0% | 5,074.2 | 100.0% | 4,649.7 | 100.0% | |||
Cost of goods sold | 785.3 | 64.3% | 714.2 | 66.0% | 3,243.8 | 63.9% | 2,944.4 | 63.3% | |||
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Gross profit | 435.7 | 35.7% | 368.7 | 34.0% | 1,830.4 | 36.1% | 1,705.3 | 36.7% | |||
SG&A expenses | 341.9 | 28.0% | 301.2 | 27.8% | 1,333.2 | 26.3% | 1,176.9 | 25.3% | |||
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Income from operations | 93.8 | 7.7% | 67.5 | 6.2% | 497.2 | 9.8% | 528.4 | 11.4% | |||
Net interest expense and financing costs | 18.7 | 1.5% | 14.7 | 1.4% | 75.1 | 1.5% | 49.3 | 1.1% | |||
Equity in earnings of unconsolidated affiliates | 0.4 | 0.0% | 1.8 | 0.2% | 3.2 | 0.1% | 3.8 | 0.1% | |||
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Income before taxes | 75.5 | 6.2% | 54.6 | 5.0% | 425.3 | 8.4% | 482.9 | 10.4% | |||
Provision for income taxes | 19.8 | 1.6% | 20.5 | 1.9% | 151.0 | 3.0% | 181.1 | 3.9% | |||
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Net income | $ 55.7 | 4.6% | $ 34.1 | 3.1% | $ 274.3 | 5.4% | $ 301.8 | 6.5% | |||
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Shares outstanding - diluted | 116.4 | 123.6 | 119.2 | 126.5 | |||||||
Earnings per share - diluted | $0.48 | $0.28 | $2.30 | $2.39 |
Percentages may not add due to rounding.
As required by the Securities and Exchange Commission Regulation G, the following table contains information regarding the non-GAAP adjustments used by the Company in the presentation of its financial results:
FOURTH QUARTER (Unaudited)
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FULL YEAR
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2005 | 2004 | 2005 | 2004 | ||||
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Net income (as reported) | $ 55.7 | $ 34.1 | $ 274.3 | $ 301.8 | |||
Provision for income taxes | 19.8 | 20.5 | 151.0 | 181.1 | |||
Denim restructuring | (3.0) | - | 12.2 | - | |||
Manufacturing inefficiencies and other fees | 2.0 | - | 13.9 | - | |||
Logistics network | 3.6 | - | 3.6 | - | |||
Strategic review | 3.9 | - | 4.3 | - | |||
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Adjusted income before taxes | 82.0 | 54.6 | 459.3 | 482.9 | |||
Adjusted provision for income taxes | 22.3 | 20.5 | 163.9 | 181.1 | |||
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Adjusted net income | $ 59.7 | $ 34.1 | $ 295.4 | $ 301.8 | |||
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Earnings per share - diluted (as reported) | $ 0.48 | $ 0.28 | $ 2.30 | $ 2.39 | |||
Provision for income taxes | 0.17 | 0.17 | 1.27 | 1.43 | |||
Denim restructuring | (0.03) | - | 0.10 | - | |||
Manufacturing inefficiencies and other fees | 0.02 | - | 0.12 | - | |||
Logistics network | 0.03 | - | 0.03 | - | |||
Strategic review | 0.03 | - | 0.04 | - | |||
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Adjusted income before taxes | 0.70 | 0.45 | 3.86 | 3.82 | |||
Adjusted provision for income taxes | 0.19 | 0.17 | 1.38 | 1.43 | |||
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Adjusted earnings per share - diluted | $ 0.51 | $ 0.28 | $ 2.48 | $ 2.39 | |||
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JONES APPAREL GROUP, INC.
SEGMENT INFORMATION
All amounts in millions
(In millions) |
Wholesale Better Apparel |
Wholesale Moderate Apparel |
Wholesale Footwear & Accessories |
Retail |
Licensing, Other & Eliminations |
Consolidated |
For the fiscal quarter ended December 31, 2005 (Unaudited) | ||||||
Revenues from external customers | $ 312.3 | $ 265.8 | $ 230.0 | $ 393.5 | $ 19.4 | $ 1,221.0 |
Intersegment revenues | 29.9 | 0.6 | 10.9 | - | (41.4) | - |
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Total revenues | 342.2 | 266.4 | 240.9 | 393.5 | (22.0) | 1,221.0 |
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Segment income | $ 6.3 | $ 8.3 | $ 26.4 | $ 49.1 | $ 3.7 | 93.8 |
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1.8% | 3.1% | 11.0% | 12.5% | 7.7% | ||
Net interest expense | (18.7) | |||||
Equity in earnings of unconsolidated affiliates | 0.4 | |||||
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Income before provision for income taxes | $ 75.5 | |||||
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For the fiscal quarter ended December 31, 2004 (Unaudited) | ||||||
Revenues from external customers | $ 328.4 | $ 260.2 | $ 239.2 | $ 234.0 | $ 21.1 | $ 1,082.9 |
Intersegment revenues | 31.9 | 3.0 | 13.1 | - | (48.0) | - |
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Total revenues | 360.3 | 263.2 | 252.3 | 234.0 | (26.9) | 1,082.9 |
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Segment income (loss) | $ (5.3) | $ 10.7 | $ 26.7 | $ 31.0 | $ 4.4 | 67.5 |
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-1.5% | 4.1% | 10.6% | 13.2% | 6.2% | ||
Net interest expense | (14.7) | |||||
Equity in earnings of unconsolidated affiliates | 1.8 | |||||
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Income before provision for income taxes | $ 54.6 | |||||
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For the year ended December 31, 2005 | ||||||
Revenues from external customers | $ 1,438.2 | $ 1,265.2 | $ 978.6 | $ 1,332.6 | $ 59.6 | $ 5,074.2 |
Intersegment revenues | 144.5 | 4.6 | 41.5 | - | (190.6) | - |
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Total revenues | 1,582.7 | 1,269.8 | 1,020.1 | 1,332.6 | (131.0) | 5,074.2 |
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Segment income | $ 166.5 | $ 89.1 | $ 141.8 | $ 122.6 | $ (22.8) | 497.2 |
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10.5% | 7.0% | 13.9% | 9.2% | 9.8% | ||
Net interest expense | (75.1) | |||||
Equity in earnings of unconsolidated affiliates | 3.2 | |||||
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Income before provision for income taxes | $ 425.3 | |||||
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For the year ended December 31, 2004 | ||||||
Revenues from external customers | $ 1,493.2 | $ 1,315.3 | $ 1,002.4 | $ 780.3 | $ 58.5 | $ 4,649.7 |
Intersegment revenues | 146.9 | 13.0 | 58.3 | - | (218.2) | - |
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Total revenues | 1,640.1 | 1,328.3 | 1,060.7 | 780.3 | (159.7) | 4,649.7 |
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Segment income | $ 160.1 | $ 142.6 | $ 164.2 | $ 78.4 | $ (16.9) | 528.4 |
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9.8% | 10.7% | 15.5% | 10.0% | 11.4% | ||
Net interest expense | (49.3) | |||||
Equity in earnings of unconsolidated affiliates | 3.8 | |||||
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Income before provision for income taxes | $ 482.9 | |||||
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JONES APPAREL GROUP, INC.
CONSOLIDATED BALANCE SHEETS
All amounts in millions
December 31,
2005
|
December 31,
2004
|
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ASSETS | |||
CURRENT ASSETS: | |||
Cash and cash equivalents | $ 34.9 | $ 45.0 | |
Accounts receivable, net of allowances of $41.2 and $46.2 for doubtful accounts, discounts, returns and co-op advertising | 458.4 | 448.3 | |
Inventories | 650.0 | 664.2 | |
Deferred taxes | 52.5 | 68.2 | |
Other current assets | 88.5 | 70.5 | |
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TOTAL CURRENT ASSETS | 1,284.3 | 1,296.2 | |
Property, plant and equipment, at cost, less accumulated depreciation and amortization | 312.1 | 303.6 | |
Goodwill | 2,097.3 | 2,125.0 | |
Other intangibles, less accumulated amortization | 827.5 | 768.2 | |
Other assets | 56.6 | 57.8 | |
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$ 4,577.8 | $ 4,550.8 | ||
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LIABILITIES AND STOCKHOLDERS' EQUITY | |||
CURRENT LIABILITIES: | |||
Short-term borrowings | $ 129.5 | $ 69.2 | |
Current portion of long-term debt and capital lease obligations | 227.8 | 134.0 | |
Accounts payable | 256.5 | 259.3 | |
Income taxes payable | 54.2 | 23.7 | |
Accrued expenses and other current liabilities | 168.5 | 197.7 | |
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TOTAL CURRENT LIABILITIES | 836.5 | 683.9 | |
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NONCURRENT LIABILITIES: | |||
Long-term debt and obligation under capital leases | 789.8 | 1,016.6 | |
Deferred taxes | 175.9 | 135.0 | |
Other | 109.2 | 61.4 | |
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TOTAL NONCURRENT LIABILITIES | 1,074.9 | 1,213.0 | |
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TOTAL LIABILITIES | 1,911.4 | 1,896.9 | |
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STOCKHOLDERS' EQUITY | 2,666.4 | 2,653.9 | |
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$ 4,577.8 | $ 4,550.8 | ||
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JONES APPAREL GROUP, INC.
STATEMENTS OF CASH FLOWS
All amounts in millions
Year Ended
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December 31, 2005 | December 31, 2004 | |||
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CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net income | $ 274.3 | $ 301.8 | ||
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Adjustments to reconcile net income to net cash provided by operating activities, net of acquisitions: | ||||
Amortization of original issue discount | - | 1.3 | ||
Trademark impairment losses | - | 0.2 | ||
Depreciation and other amortization | 102.8 | 107.7 | ||
Equity in earnings of unconsolidated affiliates | (3.2) | (3.8) | ||
Dividends received from unconsolidated affiliates | 1.3 | 2.0 | ||
Provision for losses on accounts receivable | 1.2 | (0.8) | ||
Deferred taxes | 42.8 | 52.8 | ||
Losses on redemption of Zero Coupon Convertible Senior Notes | - | 8.4 | ||
Losses on sales of property, plant and equipment | 5.0 | 3.8 | ||
Other items, net | (2.2) | - | ||
Changes in operating assets and liabilities: | ||||
Accounts receivable | (11.1) | 7.0 | ||
Inventories | 14.5 | 34.8 | ||
Prepaid expenses and other current assets | (1.4) | (10.5) | ||
Other assets | 4.0 | (2.6) | ||
Accounts payable | (3.1) | (14.7) | ||
Income taxes payable | 24.3 | 22.9 | ||
Accrued expenses and other liabilities | (21.8) | (48.4) | ||
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Total adjustments | 153.1 | 160.1 | ||
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Net cash provided by operating activities | 427.4 | 461.9 | ||
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CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Payments relating to Maxwell acquisition | - | (273.5) | ||
Payments relating to Kasper acquisition | - | (37.9) | ||
Payments relating to Barneys acquisition | (4.1) | (261.9) | ||
Capital expenditures | (87.5) | (56.6) | ||
Acquisition of intangibles | (0.1) | (1.2) | ||
Proceeds from sales of property, plant and equipment | 3.6 | 1.7 | ||
Other | (0.5) | - | ||
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Net cash used in investing activities | (88.6) | (629.4) | ||
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CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Net borrowings under credit facilities | 60.3 | 69.2 | ||
Redemption of Zero Coupon Convertible Senior Notes | - | (446.6) | ||
Redemption at maturity of 8.375% Senior Notes | (129.6) | - | ||
Redemption at maturity of 7.50% Senior Notes | - | (175.0) | ||
Issuance of 4.25% Senior Notes, net of discount and issuance costs | - | 248.1 | ||
Issuance of 5.125% Senior Notes, net of discount and issuance costs | - | 248.1 | ||
Issuance of 6.125% Senior Notes, net of discount and issuance costs | - | 247.3 | ||
Repurchase of Barneys 9% Senior Notes, including premiums paid | - | (112.7) | ||
Debt issuance costs | (0.6) | - | ||
Principal payments on capital leases | (4.4) | (5.9) | ||
Purchases of treasury stock | (235.2) | (201.5) | ||
Dividends paid | (52.3) | (44.8) | ||
Termination of interest rate locks | - | 0.2 | ||
Proceeds from exercise of employee stock options | 13.4 | 35.5 | ||
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Net cash used in financing activities | (348.4) | (138.1) | ||
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EFFECT OF EXCHANGE RATES ON CASH | (0.5) | 0.6 | ||
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NET DECREASE IN CASH AND CASH EQUIVALENTS | (10.1) | (305.0) | ||
CASH AND CASH EQUIVALENTS, BEGINNING | 45.0 | 350.0 | ||
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CASH AND CASH EQUIVALENTS, ENDING | $ 34.9 | $ 45.0 | ||
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