1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, S.C. 20549
FORM 10-Q/A
( X ) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 1994
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: 1-9734
ONEITA INDUSTRIES, INC.
Exact name of registrant as specified in its charter)
DELAWARE
57-0351045
(State or other jurisdiction of
(I.R.S. Employer incorporation or
organization Identification No.)
4130 FABER PLACE DRIVE, SUITE 200,
CHARLESTON, SC 29405
(Address of principal executive offices) (Zip Code)
(803) 529 - 5225
(Registrant s telephone number, including area code)
CONIFER STREET, ANDREWS, SOUTH CAROLINA 29510
(Former name, former address and former fiscal year,
if changed since last report.) (Zip Code)
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, and (2) has been subject to such filing
for the past 90 days.
X Yes No
Indicate the number of shares outstanding of each of the issuer s
classes of common stock, as of the latest practicable date.
6,941,321 shares of Common Stock as of January 31, 1995.
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FORM 10-Q/A
TABLE OF CONTENTS
PART I - FINANCIAL INFORMATION (Unaudited)
Condensed Consolidated Balance Sheets at
December 31, 1994 and September 30, 1994 3
Condensed Consolidated Statements of Income for the
Three Months Ended December 31, 1994 and 1993 5
Condensed Consolidated Statements of Cash Flows for
the Three Months Ended December 31, 1994 and 1993 6
Notes to Condensed Consolidated Financial Statements 7
Management s Discussion and Analysis of Financial
Condition and Results of Operation 8
PART II - OTHER INFORMATION
Item 1: Legal Proceedings 9
Item 2: Changes in Securities 9
Item 3: Defaults upon Senior Securities 9
Item 4: Submission of Matters to a Vote of Security
Holders 9
Item 5: Other Information 9
Item 6: Exhibits and Reports on Form 8-K 9
Signature 10
3
ONEITA INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
December 31, September 30,
1994 1994
(Unaudited) (Note 1)
ASSETS
CURRENT ASSETS:
Cash $ 1,832 $ 967
Accounts receivable, less
allowance for doubtful accounts 29,833 35,757
Inventories (Note 2) 55,492 44,720
Prepaid expenses and other
current assets 3,428 4,963
--------- --------
Total current assets 90,585 86,407
--------- --------
PROPERTY, PLANT AND EQUIPMENT,
at cost, less accumulated
depreciation and amortization 31,330 30,435
FUNDS RESTRICTED FOR CAPITAL PROJECTS 2,416 2,342
OTHER ASSETS 1,661 1,733
-------- -------
$125,992 $120,917
-------- --------
<FN>
See notes to condensed consolidated financial statements
4
ONEITA INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
December 31, September 30,
1994 1994
(Unaudited) (Note 1)
LIABILITIES AND SHAREHOLDERS EQUITY
CURRENT LIABILITIES:
Notes payable $ 5,000 $ -
Current portion of long term debt
and capital leases 5,382 5,377
Accounts payable 10,179 10,485
Accrued liabilities 10,748 9,660
------- -------
Total current liabilities 31,309 25,522
LONG-TERM DEBT AND CAPITAL
LEASE OBLIGATIONS 15,188 17,133
DEFERRED INCOME TAXES 2,293 2,240
SHAREHOLDERS EQUITY:
Preferred Stock, Series I, par
value $1.00 per share, 2,000,000
shares authorized, none issued - -
Common Stock, $.25 par value,
15,000,000 shares authorized,
6,960,821 shares issued and
outstanding at December 31, 1994
and September 30, 1994 1,740 1,740
Other shareholders equity 75,462 74,282
-------- --------
$125,992 $120,917
-------- --------
<FN>
See notes to condensed consolidated financial statements.
5
ONEITA INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share data)
THREE MONTHS ENDED DECEMBER 31,
1994 1993
Net sales $ 40,106 $34,225
Cost of sales 32,242 28,682
-------- --------
Gross profit 7,864 5,543
Selling, general and administrative
expenses 5,049 4,039
Income from operations 2,815 1,504
Interest expense, net of interest
income of $128 in 1994 and $67
in 1993 (519) (916)
-------- --------
Income before provision for
income taxes 2,296 588
Provision for income taxes 918 235
-------- --------
Net income $ 1,378 $ 353
-------- --------
Net income per share (Note 3) $ .20 $ .05
-------- --------
<FN>
See notes to condensed consolidated financial statements.
6
ONEITA INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
THREE MONTHS ENDED DECEMBER 31,
1994 1993
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 1,378 $ 353
Adjustments to reconcile net income
to net cash provided by (used in)
operating activities:
Depreciation and amortization 1,359 1,247
Provision for losses on accounts
receivable 150 -
Increase in deferred income taxes 53 207
Other - (48)
Change in assets and liabilities (2,176) (3,342)
-------- --------
Net cash provided by (used in)
operating activities 764 (1,583)
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property, plant and
equipment (2,215) (2,423)
(Increase) decrease in equipment
lease deposits (472) 504
Proceeds from sale of property, plant
and equipment - 110
-------- --------
Net cash used in investing
activities (2,687) (1,809)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Short-term borrowings 5,000 -
Purchase of treasury shares (198) -
Sale of common stock - 21
Increase in funds restricted
for capital projects (74) (47)
Payment of long-term debt and
capital lease obligations (1,940) (1,848)
Net cash provided by (used in)
financing activities 2,788 (1,874)
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 865 (5,266)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 967 6,716
------- -------
CASH AT END OF PERIOD $1,832 $1,450
------- -------
<FN>
See notes to condensed consolidated financial statements.
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ONEITA INDUSTRIES, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(1) Basis of Presentation -
The accompanying unaudited condensed consolidated financial statements
have been prepared in accordance with generally accepted accounting principles
for interim financial information and with the instructions to Form 10-Q and
Article 10 of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. The balance sheet at September 30, 1994
has been derived from the audited financial statements at that date. In the
opinion of management, all adjustments (consisting of normal recurring
accruals) considered necessary for a fair presentation have been included.
Operating results for the three-month period ended December 31, 1994 are not
necessarily indicative of the results that may be expected for the year ended
September 30, 1995. For further information, refer to the consolidated
financial statements and footnotes thereto included in the Company s annual
report to shareholders for the year ended September 30, 1994.
(2) Inventories -
Inventories, stated at the lower of cost (primarily last-in, first-out)
or market, are comprised of the following:
December 31, September 30,
1994 1994
Finished goods $39,424 $31,754
Work in process 11,785 10,249
Raw materials and supplies 4,283 2,717
------- -------
$55,492 $44,720
------- -------
(3) Net Income Per Share -
Earnings per share are calculated using the weighted average number of
shares of common stock, and where dilutive, common stock equivalents
outstanding during each period. Shares used in computing per share results
were 7,026,002 and 6,962,031 for the three months ended December 31, 1994
and 1993, respectively.
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MANAGEMENT S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Results of Operations
Net sales for the three months ended December 31, 1994 were $40.1
million as compared to $34.2 million in the comparable period of the prior
year, an increase of $5.9 million or 17.3%. The increase was due to
improved economic and industry conditions that caused an increase in
customer orders and price increases by leading manufacturers, including
the Company.
Net sales of activewear were $33.0 million for the three months ended
December 31, 1994 as compared to $27.1 million in the comparable period of
the prior year, an increase of $5.9 million or 21.8%. Net sales of T-shirts
and sweat shirts increased by $4.3 million and $1.6 million, respectively.
These increases were principally due to increased unit sales of T-shirts of
$2.9 million and sweat shirts of $1.5 million, as well as $1.5 million of
additional revenue attributable to increased prices.
Net sales of infantswear was $7.1 million for the three months ended
December 31, 1994 and 1993.
Gross profit for the quarter ended December 31, 1994 was $7.9 million,
an increase of $2.4 million or 43.6% from the comparable period of the prior
year. Gross profit, as a percentage of net sales, increased to 19.6% compared
to 16.2% in the comparable period of the prior year due to the price increases
mentioned above and overall reduced per unit operating costs, offset in part
by increased raw material prices.
Selling, general and administrative expenses for the three months
ended December 31, 1994 increased $1.0 million or 24.4% from the comparable
period of the prior year, due to a higher number of selling and
administrative personnel and other related personnel costs. The increased
personnel were added to support anticipated increased sales for fiscal 1995.
Interest expense, net of interest income, for the first quarter of 1995
was $0.5 million compared to $0.9 million for the corresponding period last
year. The decrease was due primarily to lower average borrowings.
Liquidity and Capital Resources
Working capital was $59.3 million at December 31, 1994 compared to
$60.9 million at September 30, 1994. The decrease was due primarily to
current maturities of long-term debt. The Company has available bank lines
of credit of approximately $27.5 million. At December 31, 1994, there were
$5 million outstanding under these lines. The Company believes that its
working capital and bank lines are sufficient to meet its liquidity needs
for at least the next twelve months.
Effects of Inflation
The Company believes that the relatively moderate rates of inflation
in recent years have not had a significant impact on its sales and
profitability.
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ONEITA INDUSTRIES, INC. AND SUBSIDIARIES
PART II - OTHER INFORMATION
Item 1 Legal Proceedings
None
Item 2 Changes in Securities
None
Item 3 Defaults upon Senior Securities
None
Item 4 Submission of Matters to a Vote of Security Holders
None
Item 5 Other Information
None
Item 6 Exhibits and Reports on Form 8-K
Exhibit 27- Financial Data Schedules
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SIGNATURE
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.
ONEITA INDUSTRIES, INC.
By:/s/ Herbert J. Fleming
-----------------------
Herbert J. Fleming
President
By:/s/ James L. Ford
-----------------------
James L. Ford
Executive Vice-President of
Finance and Chief Financial
Officer
Date: March 8, 1995
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
ONEITA INDUSTRIES, INC.
FORM 10Q/A
EXHIBIT INDEX
Exhibit
Number Exhibit Description
- ------- -------------------
27 Financial Data Schedule