-----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, WtFedPQcu8YHwpI/WksDUErk5rXtCClvi1KUMykdfOs943JwbuJDTlJgQWK5PVzn g5z1nco1EBDx/lfGVPf8+g== 0000950144-98-010092.txt : 19980819 0000950144-98-010092.hdr.sgml : 19980819 ACCESSION NUMBER: 0000950144-98-010092 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980704 FILED AS OF DATE: 19980818 SROS: CSX SROS: NYSE SROS: PHLX FILER: COMPANY DATA: COMPANY CONFORMED NAME: SPRINGS INDUSTRIES INC CENTRAL INDEX KEY: 0000093102 STANDARD INDUSTRIAL CLASSIFICATION: BROADWOVEN FABRIC MILLS, COTTON [2211] IRS NUMBER: 570252730 STATE OF INCORPORATION: SC FISCAL YEAR END: 1229 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-05315 FILM NUMBER: 98693744 BUSINESS ADDRESS: STREET 1: 205 N WHITE ST CITY: FORT MILL STATE: SC ZIP: 29715 BUSINESS PHONE: 8035471500 MAIL ADDRESS: STREET 1: 205 NORTH WHITE STREET CITY: FORT MILL STATE: SC ZIP: 29715 FORMER COMPANY: FORMER CONFORMED NAME: SPRINGS MILLS INC DATE OF NAME CHANGE: 19820517 10-Q 1 SPRINGS INDUSTRIES, INC. 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ----------------------- F O R M 10-Q For the Quarter Ended July 4, 1998 Commission File Number 1-5315 ----------------------- S P R I N G S I N D U S T R I E S, I N C. (Exact name of registrant as specified in its charter) SOUTH CAROLINA 57-0252730 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 205 North White Street Fort Mill, South Carolina 29715 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (803) 547-1500 ----------------------- 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 at least the past 90 days. Yes X No ----- ----- ----------------------- As of August 7, 1998, there were 11,262,931 shares of Class A Common Stock and 7,196,914 shares of Class B Common Stock of Springs Industries, Inc. outstanding. ----------------------- There are 15 pages in the sequentially numbered, manually signed original of this report. The Index to Exhibits is on Page 14 2 TABLE OF CONTENTS TO FORM 10-Q
PART I - FINANCIAL INFORMATION ITEM PAGE - ---- ---- 1. FINANCIAL STATEMENTS 3 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF 9 FINANCIAL CONDITION AND RESULTS OF OPERATIONS PART II - OTHER INFORMATION ITEM PAGE - ---- ---- 6. EXHIBITS 12 SIGNATURES 13 EXHIBIT INDEX 14
3 PART I ITEM I - FINANCIAL STATEMENTS SPRINGS INDUSTRIES, INC. Consolidated Statement of Operations and Retained Earnings (In thousands except per share amounts) (Unaudited)
THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED -------------------------- ----------------------------- JULY 4, JUNE 28, JULY 4, JUNE 28, 1998 1997 1998 1997 ---------- ---------- ----------- ----------- OPERATIONS Net sales .............................. $ 537,082 $ 528,931 $ 1,093,818 $ 1,071,940 Cost and expenses: Cost of goods sold ................... 443,877 430,828 898,936 877,585 Selling, general and administrative expenses ............ 65,815 65,243 137,621 133,796 Provision for uncollectible receivables ........................ 8,915 2,782 12,110 4,983 Restructuring and realignment expenses ............... 1,240 2,221 26,090 4,984 Year 2000 expenses ................... 2,331 410 3,751 688 Interest expense ..................... 6,504 4,705 12,058 9,226 Other (income) expense ............... (480) 300 (624) 151 ---------- ---------- ----------- ----------- Total .............................. 528,202 506,489 1,089,942 1,031,413 ---------- ---------- ----------- ----------- Income before income taxes ............. 8,880 22,442 3,876 40,527 Income tax provision ................... 3,379 7,315 1,474 14,189 ---------- ---------- ----------- ----------- Net income ........................... $ 5,501 $ 15,127 $ 2,402 $ 26,338 ========== ========== =========== =========== Earnings per common share - basic ...... $ .29 $ .75 $ .13 $ 1.31 ========== ========== =========== =========== Earnings per common share - diluted .... $ .28 $ .73 $ .12 $ 1.27 ========== ========== =========== =========== Cash dividends declared: Class A shares ....................... $ .33 $ .33 $ .66 $ .66 ========== ========== =========== =========== Class B shares ....................... $ .30 $ .30 $ .60 $ .60 ========== ========== =========== =========== Basic weighted-average common shares outstanding ........................... 18,850 20,158 19,123 20,155 Dilutive effect of stock-based compensation awards ................... 466 561 509 511 ---------- ---------- ----------- ----------- Diluted weighted-average shares outstanding ........................... 19,316 20,719 19,632 20,666 ========== ========== =========== =========== RETAINED EARNINGS Retained earnings at beginning of period ............................ $ 663,008 $ 680,309 $ 701,354 $ 675,533 Net income ............................. 5,501 15,127 2,402 26,338 Repurchase of Class A common stock ..... (28,194) -- (57,253) -- Cash dividends declared ................ (6,019) (6,436) (12,207) (12,871) ---------- ---------- ----------- ----------- Retained earnings at end of period ..... $ 634,296 $ 689,000 $ 634,296 $ 689,000 ========== ========== =========== ===========
See Notes to Condensed Consolidated Financial Statements. -3- 4 SPRINGS INDUSTRIES, INC. Condensed Consolidated Balance Sheet (In thousands except share data) (Unaudited)
JULY 4, JANUARY 3, 1998 1998 ------------ ------------ ASSETS Current assets: Cash and cash equivalents ................................ $ 762 $ 373 Accounts receivable, net ................................. 325,352 317,702 Inventories, net ......................................... 462,714 420,295 Other .................................................... 47,281 48,309 ------------ ------------ Total current assets ................................... 836,109 786,679 ------------ ------------ Property, plant and equipment .............................. 1,375,950 1,340,154 Accumulated depreciation ................................. (825,938) (799,623) ------------ ------------ Property, plant and equipment, net ..................... 550,012 540,531 ------------ ------------ Other assets ............................................... 85,282 81,533 ------------ ------------ Total .................................................. $ 1,471,403 $ 1,408,743 ============ ============ LIABILITIES AND SHAREOWNERS' EQUITY Current liabilities: Short-term borrowings .................................... $ 38,400 $ 7,450 Current maturities of long-term debt ..................... 21,208 14,452 Accounts payable ......................................... 88,929 92,135 Accrued restructuring costs .............................. 11,532 4,647 Other accrued liabilities ................................ 97,568 121,409 ------------ ------------ Total current liabilities .............................. 257,637 240,093 ------------ ------------ Noncurrent liabilities: Long-term debt ........................................... 275,609 164,287 Accrued benefits and deferred compensation ............................................ 180,476 173,681 Other .................................................... 24,915 26,084 ------------ ------------ Total noncurrent liabilities ........................... 481,000 364,052 ------------ ------------ Shareowners' equity: Class A common stock- $.25 par value (11,487,228 and 12,601,757 shares issued in 1998 and 1997, respectively) ................. 2,872 3,150 Class B common stock- $.25 par value (7,263,960 and 7,270,921 shares issued and outstanding in 1998 and 1997, respectively)........................................... 1,816 1,818 Additional paid-in capital ............................... 105,010 108,684 Retained earnings ........................................ 634,296 701,354 Cost of Class A shares in treasury (98,940 and 101,091 shares in 1998 and 1997, respectively) ................................ (2,243) (2,276) Currency translation adjustment and other ................ (8,985) (8,132) ------------ ------------ Total shareowners' equity .............................. 732,766 804,598 ------------ ------------ Total .................................................. $ 1,471,403 $ 1,408,743 ============ ============
See Notes to Condensed Consolidated Financial Statements. 4 5 SPRINGS INDUSTRIES, INC. Condensed Consolidated Statement of Cash Flows (In thousands) (Unaudited)
TWENTY-SIX WEEKS ENDED JULY 4, JUNE 28, 1998 1997 ------------ ------------ Operating activities: Net income ............................................. $ 2,402 $ 26,338 Adjustments to reconcile net income to net cash provided (used) by operating activities: Depreciation and amortization ......................... 45,372 44,954 Provision for restructuring costs ..................... 23,049 -- Provision for uncollectible receivables ............... 12,110 4,983 Changes in working capital, net ....................... (90,876) (39,036) Other, net ............................................ (1,569) (5,254) ------------ ------------ Net cash provided (used) by operating activities ........................................ (9,512) 31,985 ------------ ------------ Investing activities: Purchases of property, plant and equipment ............................................ (64,500) (39,796) Business acquisition ................................... -- (6,429) Principal collected on notes receivable ................ 4,215 1,211 Notes receivable ....................................... (35) (8,000) Proceeds from sales of assets .......................... 996 913 ------------ ------------ Net cash used by investing activities .............. (59,324) (52,101) ------------ ------------ Financing activities: Proceeds from short-term borrowings, net ............... 30,950 10,600 Proceeds from long-term borrowings ..................... 125,125 -- Repayments of long-term debt ........................... (7,047) (1,235) Repurchase of Class A shares ........................... (63,123) -- Proceeds from exercise of stock options ................ 1,876 -- Cash dividends paid .................................... (18,556) (19,295) ------------ ------------ Net cash provided (used) by financing activities ........................................ 69,225 (9,930) ------------ ------------ Increase (decrease) in cash and cash equivalents ............................................. $ 389 $ (30,046) ============ ============
See Notes to Condensed Consolidated Financial Statements. 5 6 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1. Significant Accounting Policies: The accompanying condensed consolidated financial statements should be read in conjunction with the financial statements presented in the Springs Industries, Inc. ("Springs" or the "Company") 1997 Annual Report on Form 10-K. In the opinion of the management of Springs, these unaudited condensed consolidated financial statements contain all adjustments of a normal recurring nature necessary for their fair presentation. The results for interim periods reflect estimates for certain items which can be definitively determined only on an annual basis. These items include the valuation of a substantial portion of inventories on a LIFO cost basis and the provision for income taxes. These interim financial statements reflect applicable portions of the estimated annual amounts for such items. The results of operations for interim periods are not necessarily indicative of operating results to be expected for the remainder of the year. 2. Receivables: During the second quarter of 1998, the Company increased its provision for uncollectible receivables in its window fashions business by $7.5 million ($4.7 million after taxes, or $0.24 per diluted share). 3. Inventories: Inventories are summarized as follows (in thousands):
July 4, Jan. 3, 1998 1998 ------------ ------------ Standard cost (which approximates average cost) or average cost: Finished goods ........................................ $ 308,758 $ 280,316 In process ............................................ 212,419 199,600 Raw materials and supplies ............................ 59,962 59,381 ------------ ------------ 581,139 539,297 Less LIFO reserve ...................................... (118,425) (119,002) ------------ ------------ Total ................................................. $ 462,714 $ 420,295 ============ ============
4. Restructuring and Realignment Costs: During the first quarter of 1998, the Company adopted a plan to close its Rock Hill Printing and Finishing Plant. A pretax charge of $23.0 million was recorded in the first quarter of 1998, which included an $11.3 million write-off of plant and equipment, a $4.0 million accrual for anticipated severance costs arising from the elimination of approximately 480 positions, and a $7.7 million accrual for certain other anticipated expenses associated with the closing 6 7 of the facility. Through July 4, 1998, the Company has recorded cash expenditures of approximately $1.4 million against the severance accrual and $0.7 million against the accrual for certain other expenses associated with the plan. In addition, during the second quarter of 1998, the Company incurred expenses of $0.5 million for equipment relocation and other realignment expenses related to the plan which do not qualify as "exit costs." During the second quarter of 1996, the Company adopted a plan to consolidate and realign its fabric manufacturing operations. The Company recorded a pretax restructuring charge of $30.4 million during the second quarter of 1996 which included a $16.3 million write-off of plant and equipment, a $6.6 million accrual for anticipated severance arising from the elimination of approximately 850 positions, and a $7.5 million accrual for certain other anticipated expenses associated with the plan. Through July 4, 1998, the Company has recorded cash expenditures of approximately $4.4 million against the severance accrual and $5.8 million against the accrual for certain other expenses associated with the plan. Through the second quarter of 1998, the severance accrual was reduced by $1.4 million due to a lower-than-expected average cost per associate, and the accrual for certain other expenses associated with the plan was reduced by $0.6 million. In addition, the Company has incurred expenses of $18.4 million, including $3.5 million in 1998, for equipment relocation and other realignment expenses related to the plan that do not qualify as "exit costs." 5. Long-Term Debt: During the six months ended July 4, 1998, the Company borrowed $125 million under its existing long-term loan facility at a variable rate, which is currently 6 percent. Subsequent to quarter end, management entered into an interest rate swap agreement for a notional amount of $60 million to fix the interest cost on this portion of the $125 million long-term loan. 6. Other: The "Year 2000 Computer Problem" creates risk for the Company from unforeseen problems in its own computer systems and those of third parties with whom the Company conducts business transactions. For this reason, the Company conducted a formal Year 2000 risk assessment of its information technology in 1997. The assessment addressed all business applications, computer hardware and software, personal computers, and embedded technology in manufacturing machinery. Remediation efforts began in 1997 to address areas not in compliance or not already scheduled for replacement. Also, efforts began in 1997 to correspond with all customers and external vendors to establish their degree of readiness for Year 2000. This is an on-going effort which will continue through 1999 and which will cover all of the Company's significant EDI relationships. The Company presently expects to spend approximately $15 million during 1998 and 1999 to modify its computer information systems to ensure the proper processing of transactions relating to the Year 2000 and beyond. The Company expects to be fully compliant for company technology in 1999. Year 2000-related failures of the Company's and/or third parties' computer systems could have a material impact on the Company's ability to conduct its business. Management currently believes that Company information systems affected by the Year 2000 issues have been identified and that its implementation plans will ensure compliance for its systems by the Year 2000. In 1997, the Financial Accounting Standards Board ("FASB") issued Statement No. 130, "Reporting Comprehensive Income," which was required to be adopted for fiscal years beginning after December 15, 1997. This Statement establishes standards for reporting and displaying 7 8 comprehensive income. Comprehensive income was $1.9 million for the first six months of 1998 and $27.2 million for the first half of 1997. The differences between net income and comprehensive income were accumulated foreign currency translation adjustments of $(529) thousand for the first six months of 1998 and accumulated foreign currency translation adjustments of $33 thousand and unrealized gains on securities of $814 thousand for the first half of 1997. In June 1998, the FASB issued Statement No. 133, "Accounting for Derivative Instruments and Hedging Activities." This statement, which addresses the accounting for derivative instruments, will be effective for all fiscal quarters of fiscal years beginning after June 15, 1999. The Company has not determined the impact of its financial position, results of operations, or cash flows. 7. Legal and Environmental: As disclosed in the 1997 Annual Report on Form 10-K, Springs is involved in certain administrative proceedings alleging violations of environmental laws and regulations, including proceedings under the Comprehensive Environmental Response, Compensation, and Liability Act. In connection with these proceedings, the Company has accrued an amount which represents management's best estimate of Springs' probable liability. Springs is also involved in various other legal proceedings and claims incidental to its business. Springs is protecting its interests in all such proceedings. In the opinion of management, based on the advice of counsel, the likelihood that the resolution of the above matters would have a material adverse impact on either the financial condition or the future results of operations of Springs is remote. 8. Subsequent Events: On August 7, 1998, the Company sold the UltraSuede assets of its UltraFabrics division. In connection with this sale, the Company received a cash payment of approximately $15 million, which is subject to certain adjustment provisions included in the agreement. A gain approximating $10 million on this transaction will be included in other (income) expense in the Company's third-quarter earnings. In August 1998, the Company's Board of Directors authorized management to purchase, from time to time, up to an additional 2 million shares of Class A common stock in open-market and privately negotiated transactions. Of the previously authorized purchase of 2 million Class A shares, the Company has repurchased 1,581,700 shares through the second quarter of 1998. 8 9 ITEM 2. - MANAGEMENT'S DISCUSSION AND ANALYSIS RESULTS OF OPERATIONS Sales Net sales for the second quarter of 1998 were $537.1 million, up 1.5 percent from the second quarter of 1997. In the home furnishings segment, second-quarter sales were $458.9 million, up 2.0 percent from a year ago. Second-quarter net sales for the specialty fabrics segment were $78.2 million, 1.3 percent lower than last year. Year-to-date net sales were $1,093.8 million, up 2.0 percent compared to the first six months of 1997. Home furnishings net sales were 2.2 percent higher than during the first six months of 1997. Year-to-date net sales for the specialty fabrics segment were 1.4 percent higher than a year ago. Earnings Net income for the second quarter of 1998 was $5.5 million, or $0.28 per diluted share, after the effects of realignment expenses associated with the Company's restructuring of its fabric manufacturing operations and the closing of its Rock Hill Printing and Finishing facility. Net income has also been reduced by expenses incurred to modify the Company's computer information systems so as to make them Year 2000 compliant. Last year's second-quarter net income, which also included the effect of realignment expenses relating to the restructuring of fabric manufacturing operations, and, to a lesser extent, Year 2000 compliance expenses, was $15.1 million, or $0.73 per diluted share. Without these items, net income for the second quarter of 1998 would have been $7.7 million, or $0.40 per diluted share, compared to $16.8 million, or $0.81 per diluted share, a year ago. This year's second-quarter results include a $7.5 million pretax charge for uncollectible receivables in the Company's window fashions business, which reduced net income by $0.24 per diluted share. Second-quarter pretax operating profit for the home furnishings segment was lower than during the second quarter of 1997 by $15.8 million. Contributing to the profit decline were: the $7.5 million provision for bad debts, disappointing sales of certain licensed bed fashions, and a more promotional sales mix, related in part to the Company's efforts to reduce its inventories. The specialty fabrics segment improved its second-quarter pretax operating profit by $3.3 million over last year. The profit growth occurred primarily in the Company's home-sewing fabric business. Net income for the six months ended July 4, 1998, was $2.4 million, or $0.12 per diluted share, compared to $26.3 million, or $1.27 per diluted share, a year ago. The decline in earnings was due principally to a first-quarter 1998 restructuring charge associated with the Company's decision to close the Rock Hill facility, which reduced net income by $14.3 million, or $0.73 per diluted share, and the aforementioned second-quarter 1998 bad debt expense. Excluding the effects of restructuring and realignment expenses and Year 2000 costs, net income for the first half of 1998 would have been $20.9 million, or $1.06 per diluted share, compared to last year's $29.9 million, or $1.44 per diluted share. In the home furnishings segment, year-to-date pretax earnings were lower than a year ago by $18 million, due to lower margins in the Company's bed fashions business, the bad debt expense recorded in the second quarter of 9 10 1998 for the uncollectible receivables, and the more promotional sales mix related in part to the Company's efforts to reduce its inventories. Year to date pretax operating profits for the specialty fabrics segment were significantly below last year due to the restructuring charge recorded in the first quarter of 1998. Excluding the restructuring charge, realignment expenses and Year 2000 expenses, pretax profits for the specialty fabrics segment were $6.6 million higher than a year ago. CAPITAL RESOURCES AND LIQUIDITY During the six months ended July 4, 1998, the Company borrowed $125 million under its existing long-term loan facility at a variable rate, which is currently 6 percent. Subsequent to quarter end, management entered into an interest rate swap agreement for a notional amount of $60 million to fix the interest cost on this portion of the $125 million long-term debt. Management expects to spend more than $85 million on capital projects during the last six months of 1998. The focus of the Company's investments will be on new manufacturing, distribution and information technology. Management expects that cash flow from operations and borrowings from committed short-term bank lines will adequately provide for the Company's 1998 cash needs. In October of 1997, the Company's Board of Directors approved the purchase of up to 2 million shares of the Company's Class A common stock. The Company has repurchased 1,581,700 shares through the second quarter of 1998. In August 1998, the Company's Board of Directors authorized management to purchase, from time to time, up to an additional 2 million shares of Class A common stock in open-market and privately negotiated transactions. The "Year 2000 Computer Problem" creates risk for the Company from unforeseen problems in its own computer systems and those of third parties with whom the Company conducts business transactions. For this reason, the Company conducted a formal Year 2000 risk assessment of its information technology in 1997. The assessment addressed all business applications, computer hardware and software, personal computers, and embedded technology in manufacturing machinery. Remediation efforts began in 1997 to address areas not in compliance or not already scheduled for replacement. Also, efforts began in 1997 to correspond with all customers and external vendors to establish their degree of readiness for Year 2000. This is an on-going effort which will continue through 1999 and which will cover all of the Company's significant EDI relationships. The Company presently expects to spend approximately $15 million during 1998 and 1999 to modify its computer information systems to ensure the proper processing of transactions relating to the Year 2000 and beyond. The Company expects to be fully compliant for Company technology in 1999. Year 2000-related failures of the Company's and/or third parties' computer systems could have a material impact on the Company's ability to conduct its business. Management currently believes that Company information systems affected by the Year 2000 issues have been identified and that its implementation plans will ensure compliance for its systems by the year 2000. RESTRUCTURING AND REALIGNMENT COSTS During the first quarter of 1998, the Company adopted a plan to close its Rock Hill Printing and Finishing Plant. A pretax charge of $23.0 million was recorded in the first quarter of 1998, which included an $11.3 million write-off of plant and equipment, a $4.0 million accrual for anticipated severance costs arising from the elimination of approximately 480 positions, and a $7.7 million accrual for certain other anticipated expenses associated with the closing of the facility. Through July 4, 1998, the Company has recorded cash expenditures of approximately $1.4 million against the severance accrual and $0.7 million against the accrual for certain other expenses associated with the plan. In addition, the Company expects to incur future expenses of approximately $8.4 million for equipment relocation 10 11 and other realignment expenses related to the plan which do not qualify as "exit costs." During the second quarter of 1998, the Company incurred realignment expenses related to the plan of $0.5 million. During the second quarter of 1996, the Company adopted a plan to consolidate and realign its fabric manufacturing operations. The Company recorded a pretax restructuring charge of $30.4 million during the second quarter of 1996 which included a $16.3 million write-off of plant and equipment, a $6.6 million accrual for anticipated severance arising from the elimination of approximately 850 positions, and a $7.5 million accrual for certain other anticipated expenses associated with the plan. Through July 4, 1998, the Company has recorded cash expenditures of approximately $4.4 million against the severance accrual and $5.8 million against the accrual for certain other expenses associated with the plan. Through the second quarter of 1998, the severance accrual was reduced by $1.4 million due to a lower-than-expected average cost per associate, and the accrual for certain other expenses associated with the plan was reduced by $0.6 million. In addition, the Company has incurred expenses of $18.4 million, including $3.5 million in 1998, for equipment relocation and other realignment expenses related to the plan that do not qualify as "exit costs". The Company expects to incur future realignment expenses of approximately $3.7 million related to the plan. OTHER In June 1998, the Financial Accounting Standards Board issued Statement No. 133, "Accounting for Derivative Instruments and Hedging Activities." This statement, which addresses the accounting for derivative instruments, will be effective for fiscal quarters of fiscal years beginning after June 15, 1999. The Company has not determined the impact of this standard on its financial position, results of operations, or cash flows. SUBSEQUENT EVENT On August 7, 1998, the Company sold the UltraSuede assets of its UltraFabrics Division. In connection with this sale, the Company received a cash payment of approximately $15 million, subject to certain adjustment provisions included in the agreement. A gain approximating $10 million on this transaction will be included in other (income) expense in the Company's third-quarter earnings. FORWARD LOOKING INFORMATION This Form 10-Q report contains forward-looking statements that reflect management's expectations, estimates, projections and assumptions of future performance and economic conditions. Words such as "expects," "anticipates," "plans," "believes," "estimates," and variations of such words and similar expressions are intended to identify such forward-looking statements which are made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company cautions investors that any forward-looking statement is subject to risks and uncertainties that may cause actual results to vary significantly from those projected, stated, or implied by the forward-looking statement. Factors that could cause actual results to differ are discussed in the Company's SEC filings. 11 12 ITEM 6 - EXHIBITS The following exhibits are filed as part of this report: (27) Financial Data Schedule (for SEC use only) 12 13 SIGNATURES Pursuant to the requirements of Securities Exchange Act of 1934, Springs Industries, Inc. has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized. SPRINGS INDUSTRIES, INC. By: /s/ James F. Zahrn -------------------------------- James F. Zahrn Executive Vice President and Chief Financial Officer (Duly Authorized Officer and Principal Financial Officer) DATED: August 18, 1998 13 14 EXHIBIT INDEX
Item - ---- (27) Financial Data Schedule (for SEC purposes)
14 EX-27 2 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FINANCIAL STATEMENTS OF SPRINGS INDUSTRIES, INC. FOR THE QUARTER ENDED JULY 4, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 6-MOS JAN-02-1999 JAN-04-1998 JUL-04-1998 762 0 325,352 0 462,714 836,109 1,375,950 825,938 1,471,403 257,637 275,609 0 0 4,688 728,078 1,471,403 1,093,818 1,093,818 898,936 898,936 0 0 12,058 3,876 1,474 2,402 0 0 0 2,402 0.13 0.12
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