-----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, P35r8QidzRwoyegHc6iK9nOIV2OCnb7ocg1KuALsS3yzCfwugHX9Lp0CPKyZjsiM VobgXH6s8Hq1EpYyPrF+OA== 0000950123-99-000162.txt : 19990113 0000950123-99-000162.hdr.sgml : 19990113 ACCESSION NUMBER: 0000950123-99-000162 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19981128 FILED AS OF DATE: 19990112 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NAUTICA ENTERPRISES INC CENTRAL INDEX KEY: 0000093736 STANDARD INDUSTRIAL CLASSIFICATION: MEN'S & BOYS' FURNISHINGS, WORK CLOTHING, AND ALLIED GARMENTS [2320] IRS NUMBER: 952431048 STATE OF INCORPORATION: DE FISCAL YEAR END: 0228 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-06708 FILM NUMBER: 99505061 BUSINESS ADDRESS: STREET 1: 40 WEST 57TH STREET CITY: NEW YORK STATE: NY ZIP: 10019 BUSINESS PHONE: 2125415990 MAIL ADDRESS: STREET 1: 40 W 57TH STREET CITY: NEW YORK STATE: NY ZIP: 10019 FORMER COMPANY: FORMER CONFORMED NAME: STATE O MAINE INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: PACIFIC COAST KNITTING MILLS INC DATE OF NAME CHANGE: 19751124 10-Q 1 NAUTICA ENTERPRISES, INC. 1 SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q (Mark One) (x) Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended November 28, 1998 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 0-6708 Nautica Enterprises, Inc. (Exact Name of Registrant as Specified in Its Charter) Delaware 95-2431048 (State or Other Jurisdiction of (I.R.S. Employer Incorporation or Organization) Identification No.) 40 West 57th Street, New York, N.Y. 10019 (Address of Principal Executive Offices) (Zip Code) Registrant's Telephone Number, including Area Code (212) 541-5757 (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 / / APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13, or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court Yes / / No / / APPLICABLE ONLY TO CORPORATE ISSUERS The number of shares of Common Stock outstanding as of January 12, 1999 was 37,541,221. 2 NAUTICA ENTERPRISES, INC. AND SUBSIDIARIES NOVEMBER 28, 1998 (Unaudited) INDEX
Page No. -------- Part I - Financial Information: Item 1. Financial Statements (Unaudited): Condensed Consolidated Balance Sheets As of November 28, 1998 and February 28, 1998.......................................................2 Condensed Consolidated Statements of Earnings For the Nine and Three Month Periods Ended November 28, 1998 and November 30, 1997 ...............................................................................................3 Condensed Consolidated Statements of Cash Flows For the Nine Month Periods Ended November 28, 1998 and November 30, 1997 ...............................................................................................4 Notes to Condensed Consolidated Financial Statements .........................................................................................5 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.............................................7 Part II - Other information..................................................................................11
3 NAUTICA ENTERPRISES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except share data)
(unaudited) November 28, February 28, 1998 1998 ---- ---- ASSETS Current assets: Cash and cash equivalents $ 4,518 $ 34,616 Short-term investments 53,631 52,680 Accounts receivable - net 98,998 81,135 Inventories 78,553 66,726 Prepaid expenses and other current assets 4,720 4,882 Deferred tax benefit 6,178 6,093 -------- -------- Total current assets 246,598 246,132 Property, plant and equipment, net of accumulated depreciation and amortization 64,139 56,273 Other assets 11,902 8,046 -------- -------- $322,639 $310,451 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current maturities of long-term debt $ 50 $ 50 Accounts payable - trade 23,724 18,743 Accrued expenses and other current liabilities 36,753 34,158 Income taxes payable 9,151 5,826 -------- -------- Total current liabilities 69,678 58,777 Long-term debt -net 50 100 Minority interest -- 405 Stockholders' equity: Preferred stock - par value $.01, authorized, 2,000,000 shares; no shares issued Common stock - par value $.10, authorized, 100,000,000 shares; issued 42,596,000 shares at November 28, 1998 and 42,443,000 shares at February 28, 1998 4,260 4,244 Additional paid-in capital 65,710 64,932 Retained earnings 266,226 217,174 -------- -------- 336,196 286,350 Less: Common stock in treasury - at cost; 5,070,070 shares at November 28, 1998 and 3,070,070 at February 28, 1998 83,285 35,181 -------- -------- Total stockholders' equity 252,911 251,169 -------- -------- $322,639 $310,451 ======== ========
The accompanying notes are an integral part of these statements. -2- 4 NAUTICA ENTERPRISES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Amounts in thousands, except per share data)
(unaudited) (unaudited) Nine Months Nine Months Three Months Three Months Ended Ended Ended Ended November 28, 1998 November 30, 1997 November 28, 1998 November 30, 1997 ----------------- ----------------- ----------------- ----------------- Net Sales $ 418,914 $ 373,781 $ 157,047 $ 145,714 Cost of goods sold 218,208 198,004 80,742 75,636 --------- --------- --------- --------- Gross profit 200,706 175,777 76,305 70,078 Selling, general and administrative expenses 127,614 112,132 45,224 39,685 Net royalty income (4,372) (4,108) (1,370) (1,802) --------- --------- --------- --------- Operating profit 77,464 67,753 32,451 32,195 Investment income, net 3,207 2,377 590 894 Minority interest in consolidated subsidiary 405 806 120 215 --------- --------- --------- --------- Earnings before provision for income taxes 81,076 70,936 33,161 33,304 Provision for income taxes 32,025 28,345 13,099 13,292 --------- --------- --------- --------- NET EARNINGS $ 49,051 $ 42,591 $ 20,062 $ 20,012 ========= ========= ========= ========= Net earnings per share of common stock Basic $ 1.27 $ 1.09 $ 0.53 $ 0.51 ========= ========= ========= ========= Diluted $ 1.20 $ 1.02 $ 0.51 $ 0.48 ========= ========= ========= ========= Weighted average number of common shares outstanding Basic 38,732 39,007 37,515 39,045 ========= ========= ========= ========= Diluted 40,976 41,740 39,362 41,767 ========= ========= ========= ========= Cash dividends per common share none none none none ========= ========= ========= =========
The accompanying notes are an integral part of these statements. -3- 5 NAUTICA ENTERPRISES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands)
(unaudited) Nine Months Nine Months Ended Ended November 28, 1998 November 30, 1997 ----------------- ----------------- Cash flows from operating activities: Net earnings $ 49,051 $ 42,591 -------- -------- Adjustments to reconcile net earnings to net cash provided by operating activities: Minority interest in consolidated subsidiary (405) (806) Depreciation and amortization 9,257 7,024 Provision for accounts receivable allowances and sales returns and discounts 714 759 Changes in operating assets and liabilities Accounts receivable (18,577) (35,705) Inventories (11,824) (5,657) Prepaid expenses and other current assets 160 (3,041) Other assets (2,684) (684) Accounts payable - trade 4,979 1,119 Accrued expenses and other current liabilities 2,596 11,163 Income taxes payable 3,325 10,662 -------- -------- Total adjustments (12,459) (15,166) -------- -------- Net cash provided by operating activities 36,592 27,426 -------- -------- Cash flows from investing activities: Proceeds from minority shareholders of consolidated subsidiary -- 680 Acquisition, net of cash acquired (1,650) (2,948) Purchase of property, plant and equipment (16,643) (17,678) Purchases of short-term investments (1,164) (58,463) -------- -------- Net cash used in investing activities (19,457) (78,409) -------- -------- Cash flows from financing activities: Principal payments on long-term debt (50) (50) Purchase of treasury stock (48,104) (17,872) Proceeds from issuance of common stock 921 2,613 -------- -------- Net cash used in financing activities (47,233) (15,309) -------- -------- Decrease in cash and cash equivalents (30,098) (66,292) Cash and cash equivalents at beginning of period 34,616 71,887 -------- -------- Cash and cash equivalents at end of period $ 4,518 $ 5,595 ======== ======== Supplemental Information: Cash payments for the period: Income taxes $ 28,654 $ 17,700 ======== ========
The accompanying notes are an integral part of these statements. -4- 6 NAUTICA ENTERPRISES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOVEMBER 28, 1998 (Unaudited) NOTE 1 - The accompanying financial statements have been prepared without audit pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. These statements include all adjustments, consisting only of normal recurring accruals, considered necessary for a fair presentation of financial position and results of operations. The financial statements included herein should be read in conjunction with the financial statements and notes thereto included in the latest annual report on Form 10-K. NOTE 2 - Effective March 1, 1998, the Company changed its fiscal year end to a 52/53 week year. There was no impact on the results of operations. NOTE 3 - The results of operations for the nine and three month periods ended November 28, 1998 are not necessarily indicative of the results to be expected for the full year. NOTE 4 - The Company utilizes the last-in, first-out "LIFO" method for certain inventories as at November 28, 1998 and February 28, 1998 and for the three and nine month periods ended November 28, 1998 and November 30, 1997. The "LIFO" inventory for the three and nine month periods ended November 28, 1998 and November 30, 1997 are based upon end of year estimates. Inventories at November 28, 1998 and February 28, 1998 consist primarily of finished goods. NOTE 5 - On March 1, 1998, the Company adopted Statement of Financial Accounting Standards No. 130, "Reporting Comprehensive Income," which requires companies to report certain changes in equity during a period, as comprehensive income, which includes net earnings and the effects of changes in unrealized gains and losses on securities, as follows:
Nine Nine Three Three Months Months Months Months Ended Ended Ended Ended November November November November (AMOUNTS IN THOUSANDS) 28, 1998 30, 1997 28, 1998 30, 1997 -------- -------- -------- -------- Net earnings $49,051 $42,591 $20,062 $20,012 Changes in unrealized gains and losses on securities, net of tax (75) 0 30 0 ------- ------- ------- ------- Comprehensive income $48,976 $42,591 $20,092 $20,012 ======= ======= ======= =======
-5- 7 NAUTICA ENTERPRISES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) NOVEMBER 28, 1998 (Unaudited) NOTE 6 - Short-term investments consist primarily of government and agency bonds, tax exempt municipal bonds and corporate bonds. At November 28, 1998, all securities were designated as available for sale. As of November 28, 1998, gross unrealized gains of $240,000 and gross unrealized losses of $115,000 (less deferred tax of $50,000) were credited to stockholders' equity. For the nine month period ended November 28, 1998, gross realized gains and losses on sales of investments totaled $405,000 and $47,000, respectively. For the three month period ended November 28, 1998, gross realized gains and losses on sales of investments totaled $97,000 and $16,000, respectively. NOTE 7 - Basic net earnings per share excludes dilution and is computed by dividing income available to common shareholders by the weighted-average common shares outstanding for the period. Diluted net earnings per share reflects the weighted-average common shares outstanding plus the potential dilutive effect of options which are convertible into common shares. The effect of stock options which were excluded from the calculation of diluted weighted-average shares was not material to the financial statements. NOTE 8 - During 1997, the FASB issued SFAS No. 131 "Disclosures about Segments of an Enterprise and Related Information". Adoption of this statement will not impact the Company's consolidated financial position, results of operations or cash flows, and will be limited to the form and content of its disclosures. This statement is effective for fiscal years beginning after December 15, 1997. In accordance with SFAS No. 131, the Company has elected to defer the initial application until the fiscal year end. - 6 - 8 NAUTICA ENTERPRISES, INC. AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS NOVEMBER 28, 1998 (Unaudited) RESULTS OF OPERATIONS For the Nine Months Ended November 28, 1998: Net sales increased 12.1% to $418.9 million in the nine months ended November 28, 1998 from $373.8 million in the comparable prior year period. Wholesale sales increased as a result of opening new in-store shops, the expansion of existing shops and sales increases in existing shops. Nautica retail outlet sales increased primarily as a result of opening additional outlet stores. The increase in sales was due primarily to increased unit volume rather than price increases. Gross profit for the period was 47.9%, as compared to 47.0% in the comparable prior year period. The increase resulted from improved wholesale margins and an increase in higher margin retail outlet store sales. Total selling, general and administrative expenses increased by $15.5 million to $127.6 million from $112.1 million. Selling, general and administrative expenses as a percentage of net sales increased to 30.5% from 30.0% in the comparable prior year period. The increase was principally a result of increased retail outlet store expenses, increased retail development costs and the start-up costs associated with new product lines. Net royalty income increased by $.3 million to $4.4 million from $4.1 million in the comparable prior year period. The increased royalty revenue was generated from both new and existing licensees. Investment income increased by $.8 million to $3.2 million from $2.4 million in the comparable prior year period. The increase was primarily the result of higher average cash balances offset by lower rates of return on investments. The provision for income taxes decreased to 39.5% from 40.0% of earnings before income taxes in the comparable prior year period. The decrease is due primarily to a reduction in the effective state income tax rates. Net earnings increased 15.2% to $49.1 million from $42.6 million in the comparable prior year period as a result of the factors discussed above. -7- 9 For the Three Months Ended November 28, 1998: Net sales increased 7.8% to $157.0 million in the three months ended November 28, 1998 from $145.7 million in the comparable prior year period. Wholesale sales increased as a result of opening new in-store shops, the expansion of existing shops and sales increases in existing shops. Nautica retail outlet sales increased as a result of opening additional outlet stores. The increase in sales is due primarily to increased unit volume rather than price increases. The sales increases were offset on a year to year comparative basis by the sale in the first quarter of the Company's private label business, which was predominately a third quarter business. Gross profit for the period was 48.6%, as compared to 48.1% in the comparable prior year period. The increase resulted from improved wholesale margins and an increase in higher margin retail outlet store sales. The Nautica wholesale products achieved higher margins due primarily to changes in the mix of products sold. Total selling, general and administrative expenses increased by $5.5 million to $45.2 million from $39.7 million. Selling, general and administrative expenses as a percentage of net sales increased to 28.8% from 27.2% in the comparable prior year period. The increase was a result of increased retail development costs, retail outlet store expenses and the start-up costs associated with new product lines. Net royalty income decreased by $.4 million to $1.4 million from $1.8 million in the comparable prior year period. The decrease was due to the termination of the women's sportswear license, the transition of Nautica Jeans from a licensed to an in-house wholesale business and to the general retail weakness which affected a number of licensees. Investment income decreased by $.3 million to $.6 million from $.9 million in the comparable prior year period. The decrease was primarily the result of lower average cash balances and lower rates of return on investments. The provision for income taxes decreased to 39.5% from 40.0% of earnings before income taxes in the comparable prior year period. The decrease was due primarily to a reduction in the effective state income tax rates. Net earnings increased .2% to $20.1 million from $20.0 million in the comparable prior year period as a result of the factors discussed above. - 8 - 10 LIQUIDITY AND CAPITAL RESOURCES During the nine months ended November 28, 1998, the Company generated cash from operating activities of $36.6 million, principally from net earnings. Increases in accounts receivable and inventory of $18.6 and $11.8 million, respectively, resulted from increased sales, and were financed principally by cash generated from net earnings, and increases in accounts payable. Accounts receivable and inventory balances were higher by 2.9% and 15.3%, respectively, than balances in the prior year. These increases were commensurate with sales increases. During the nine months ended November 30, 1997, the Company generated cash related to operating activities of approximately $27.4 million, principally from net earnings. Increases in accounts receivable and inventory of $35.7 and $5.7 million, respectively, resulting from increased sales levels, were financed by cash generated from net earnings, increases in accounts payable, accrued expenses and income taxes payable. Accounts receivable and inventory balances were higher by 29.6% and 18.8%, respectively, than balances in the preceding year. These increases were commensurate with sales increases. During the nine months ended November 28, 1998, the Company's principal investing activities related to the continued expansion of the Nautica in-store shop program and amounts related to the expansion of showrooms. The Company expects to continue to incur capital expenditures to expand the in-store shop program, open additional outlet stores, and to support the start up of new product lines. At November 28, 1998, there were no other material commitments for capital expenditures. During the nine months ended November 28, 1998, the Company repurchased 2,000,000 shares of its common stock at a cost of $48.1 million. In December 1998, the Board of Directors authorized the Company to repurchase up to an additional 2,000,000 shares. The Company has a total of $100.0 million in lines of credit with two commercial banks available for short-term borrowings and letters of credit. These lines are collateralized by imported inventory and accounts receivable. At November 28, 1998, letters of credit outstanding under the lines were $37.1 million and there were no short-term borrowings outstanding. Historically, the Company has experienced its lowest level of sales in the first quarter and its highest level in the third quarter. This pattern has resulted primarily from the timing of shipments to retail customers for spring and fall seasons. In the future, the timing of seasonal shipments may vary by quarter. INFLATION AND CURRENCY FLUCTUATIONS The Company believes that inflation and the effect of fluctuations of the dollar against foreign currencies have not had a material effect on the cost of imports or the Company's results of operations. -9- 11 YEAR 2000 The Company is engaged in a process to ensure that its systems will recognize and process transactions for the year 2000 and beyond. The Company expects to implement successfully the systems and programming changes necessary to address year 2000 issues with respect to its internal systems and does not believe that the cost of such actions will have a material adverse effect on its results of operations or financial condition. The Company has developed a plan which identifies all systems requiring modification or replacement, established a timeframe for ensuring it's year 2000 compliance and appointed a responsible party in the organization for the particular system. This plan encompasses both information system technologies and non-information technologies. The Company expects to have all systems year 2000 compliant by the middle of 1999, the majority of which are expected to be year 2000 compliant by the end of January 1999. The Company will develop a contingency plan for critical systems in the event timetables are not met. The Company also has initiated discussions with its significant suppliers, customers and financial institutions to ensure that those parties have appropriate plans to remediate year 2000 issues when their systems interface with the Company's systems or may otherwise impact operations. Although the Company is not aware of any material operational issues or costs associated with preparing its internal systems for the year 2000, there can be no assurance that there will not be a delay in, or increased costs associated with, the implementation of the necessary systems and changes to address the year 2000 issues. The Company's current estimate of costs to be incurred is less than $500,000, which is mostly being incurred internally and does not reflect significant incremental costs. The Company and its' significant suppliers, customers, and financial institutions' inability to implement such systems and changes could have an adverse effect on future results of operations, or financial condition of the Company. FORWARD-LOOKING AND CAUTIONARY STATEMENTS Certain statements included in this report, including the words "believes," "anticipates," "expects" and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks and uncertainties which could cause actual results to differ materially from those projected. Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date hereof. The Company undertakes no obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Readers are also urged to carefully review and consider the various disclosures made by the Company in this report, as well as the Company's periodic reports on Forms 10-K and 10-Q and other filings with the Securities and Exchange Commission. NEW ACCOUNTING PRONOUNCEMENTS During 1997, the FASB issued SFAS No. 131 "Disclosures about Segments of an Enterprise and Related Information". Adoption of this statement will not impact the Company's consolidated financial position, results of operations or cash flows, and will be limited to the form and content of its disclosures. This statement is effective for fiscal years beginning after December 15, 1997. In accordance with SFAS No. 131, the Company has elected to defer the initial application until the fiscal year end. - 10 - 12 PART II OTHER INFORMATION Items 1 through 9. - All items are inapplicable except: Item 6. Exhibits and Reports on Form 8-K (a) EXHIBIT INDEX
Exhibit No. Distribution - ----------- ------------ 3(a) Registrant's By-laws as currently in effect are incorporated herein by reference to Registrant's Registration statement on Form S-1 (Registration No. 33-21998). 3(b) Registrant's Certificate of Incorporation is incorporated by reference to the Registration statement on Form S-3 (Registration No. 33-71926), as amended by a Certificate of Amendment dated June 29,1995 and July 2, 1996, incorporated by reference to the Registrant Annual Report on Form 10-K for the year ended February 29, 1996, and the Quarterly Report on Form 10-Q for the quarter ended May 31, 1996, respectively. 10 (iii) (a) Registrant's Executive Incentive Stock Option Plan is incorporated by reference herein from the Registrant's Registration Statements on Form S-8 (Registration Number 33-1488), as amended by the Company's Registration Statement on Form S-8 (Registration Number 33-45823). 10 (iii) (b) Registrant's 1989 Employee Incentive Stock Option Plan is incorporated by reference herein from the Registrant's Registration Statements on Form S-8 (Registration Number 33-36040). 10 (iii) (c) Registrant's 1994 Incentive Compensation Plan is incorporated by reference herein from the Registrant's Annual Report on Form 10-K for the year ended February 29, 1996. 10 (iii) (d) Registrant's 1996 Stock Incentive Plan is incorporated by reference herein from the Registrant's Annual report on Form 10-K for the year ended February 28, 1997. 10 (iii) (e) Registrant's Deferred Compensation Plan is incorporated by reference herein from the Registrant's Annual Report on Form 10-K for the year ended February 28, 1998. 10 (iii) (f) Option Agreement and Royalty Agreement, each dated July 1, 1987 by and among the Registrant and David Chu are incorporated herein by reference from the Registrant's Registration Statement on Form S-1 (Registration No. 33-21998) and the Letter Agreement dated May 1, 1998 between Mr. Chu and the Registrant is incorporated by reference from the Registrant's Annual Report on Form 10-K (as amended by form 10-K/A) for the year ended February 28, 1998. Certain portions of the Letter Agreement have been omitted based upon a request for confidential treatment made by the Registrant with the Securities Exchange Commission. Such omitted portions have been filed separately with the Securities and Exchange Commission. 27 Financial Data Schedule. (b) Reports on Form 8-K. None
- 11 - 13 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. NAUTICA ENTERPRISES, INC. By: /s/ Harvey Sanders --------------------------------------- Harvey Sanders Chairman of the Board and President Date: January 12, 1999 ------------------- By: /s/ Neal S. Nackman ---------------------------------------- Neal S. Nackman V.P. Finance and Chief Accounting Officer Date: January 12, 1999 ------------------- - 12 - EX-27 2 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONSOLIDATED STATEMENTS OF THE COMPANY AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 9-MOS FEB-27-1999 MAR-01-1998 NOV-28-1998 4,518 53,631 102,078 3,080 78,553 246,598 95,507 31,368 322,639 69,678 0 0 0 4,260 248,651 322,639 418,914 426,493 218,208 218,208 0 0 0 81,076 32,025 49,051 0 0 0 49,051 1.27 1.20
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