UNITED STATES
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 JULY 4, 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 1-8016
TULTEX CORPORATION
(Exact name of registrant as specified in its charter)
Virginia 54-0367896
- -------- ----------
(State or other jurisdiction of (I.R.S. Employer Identification Number)
incorporation or organization)
101 Commonwealth Boulevard, P. O. Box 5191, Martinsville, Virginia 24115
- ------------------------------------------------------------------ -----
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 540-632-2961
------------
(Former name, former address and former fiscal year, if changed since last
report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes X No
---- -----
Indicate the number of shares outstanding of each of the issuer's classes of
common stock as of the latest practicable date.
29,915,088 shares of Common Stock, $1 par value, as of August 17, 1998
<PAGE>
2
PART I. FINANCIAL INFORMATION
ITEM 1.
TULTEX CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED - $000'S OMITTED EXCEPT IN
SHARES AND PER SHARE DATA) JULY 4, 1998 (AND JULY 5, 1997)
<TABLE>
<CAPTION>
<S> <C>
THREE MONTHS ENDED SIX MONTHS ENDED
--------------------------------------------
JULY 4, July 5, July 4, July 5,
1998 1997 1998 1997
-------- --------- --------- ---------
Net Sales and Other Income $132,911 $ 148,117 $ 233,184 $ 247,747
-------- --------- --------- ---------
Costs and Expenses:
Cost of Products Sold 103,867 115,171 179,673 189,052
Depreciation 5,064 5,092 10,212 10,184
Selling, General and
Administrative 21,760 19,562 45,376 41,718
Loss on Sale of Subsidiaries 16,304 - 16,304 -
Interest 8,133 6,889 15,041 12,342
-------- --------- -------- --------
Total Costs and Expenses 155,128 146,714 266,606 253,296
-------- --------- -------- --------
Income (Loss) Before Income Taxes (22,217) 1,403 (33,422) (5,549)
Benefit (Provision) for Income
Taxes (Note 3) 8,665 (553) 13,035 2,164
-------- --------- -------- --------
NET INCOME (LOSS) (13,552) 850 (20,387) (3,385)
Preferred Dividend Requirement
(Note 4) (147) (237) (294) (521)
-------- --------- -------- --------
Balance Applicable to Common Stock $(13,699) $ 613 $(20,681) $ (3,906)
======== ========= ======== ========
Weighted Average Common Shares
Outstanding - Basic 29,885,088 29,978,823 29,883,189 29,679,919
Weighted Average Common Shares
Outstanding - Diluted 29,885,088 30,093,679 29,883,189 29,679,919
NET INCOME (LOSS) PER COMMON SHARE
BASIC $ (.46) $ .02 $ (.69) $ (.13)
DILUTED $ (.46) $ .02 $ (.69) $ (.13)
Dividends Per Common Share (Note 4) $ .00 $ .00 $ .00 $ .00
</TABLE>
<PAGE>
3
TULTEX CORPORATION
CONSOLIDATED BALANCE SHEET (UNAUDITED - $000'S OMITTED)
JULY 4, 1998 (AND JANUARY 3, 1998)
JULY 4, January 3,
Assets 1998 1998
- ------ ---- ----
Current Assets:
Cash $ 2,100 $ 2,507
Accounts Receivable - Net of Allowances
for Doubtful Accounts $4,106 (1998)
and $4,205 (1997) 117,983 123,315
Inventories (Note 2) 261,982 199,855
Prepaid Expenses 11,323 9,290
Income Taxes Refundable (Note 3) 16,543 2,696
---------- ------------
Total Current Assets 409,931 337,663
Property, Plant and Equipment, Net of
Depreciation 136,983 142,851
Intangible Assets 48,210 44,190
Other Assets 10,540 13,522
---------- ------------
Total Assets $ 605,664 $ 538,226
========== ============
Liabilities and Stockholders' Equity
Current Liabilities:
Notes Payable to Banks $ 5,000 $ 5,000
Current Maturities of Long-Term Debt 406 527
Accounts Payable 23,882 26,437
Accrued Expenses 27,587 9,975
Dividends Payable - 3
---------- ------------
Total Current Liabilities 56,875 41,942
Long-Term Debt, Less Current Maturities 360,222 285,727
Deferred Income Taxes 11,278 11,278
Other Liabilities 3,713 5,167
Stockholders' Equity:
5% Cumulative Preferred Stock (Note 4) 198 198
Series B, $7.50 Cumulative Convertible
Preferred Stock (Note 4) 7,500 7,500
Series C, 4.5% Cumulative Convertible
Preferred Stock (Note 4) 333 333
Common Stock (Note 4) 29,885 29,875
Capital in Excess of Par Value 6,920 6,893
Retained Earnings 129,242 150,005
Unearned Stock Compensation (88) (91)
---------- ------------
173,990 194,713
Less Notes Receivable - Stockholders 414 601
---------- ------------
Total Stockholders' Equity 173,576 194,112
---------- ------------
Total Liabilities and Stockholders' Equity $ 605,664 $ 538,226
========== ============
<PAGE>
4
TULTEX CORPORATION
===============================================================================
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED - $000'S OMITTED)
SIX MONTHS ENDED JULY 4, 1998 (AND JULY 5, 1997)
Six Months Ended
-----------------------------
JULY 4, 1998 July 5, 1997
------------ ------------
Operations:
Net Income (Loss) $(20,387) $ (3,385)
Items not Requiring (Providing) Cash:
Depreciation 10,212 10,184
Amortization of Intangible Assets 1,660 608
Other Deferrals (1,454) (871)
Other Non-Cash Items 57 (188)
Changes in Assets and Liabilities:
Accounts Receivable 5,332 25,814
Inventories (62,127) (58,521)
Prepaid Expenses (2,033) (1,518)
Accounts Payable and Accrued Expenses 15,057 (8,759)
Income Taxes Refundable (13,847) (4,714)
-------- --------
Cash Provided (Used) by Operations (67,530) (41,350)
-------- --------
Investing Activities:
Additions to Property, Plant and Equipment (5,215) (18,692)
Changes in Other Assets 900 -
Business Acquisitions (2,743) (21,875)
-------- --------
Cash Provided (Used) by Investing Activities (7,058) (40,567)
-------- --------
Financing Activities:
Issuance (Payment) of Short-Term Borrowings - (628)
Proceeds from Long-Term Borrowings - 75,000
Issuance (Payment) of Revolving Credit
Facility Borrowings 74,600 19,200
Payments on Long-Term Borrowings (226) (500)
Costs of Debt Issuance - (2,204)
Cash Dividends (297) (521)
Proceeds from Stock Plans 104 1,964
Purchase of Preferred Stock - (7,500)
Purchase of Common Stock - (1,117)
-------- --------
Cash Provided (Used) by Financing Activities 74,181 83,694
-------- --------
Net Increase (Decrease) in Cash (407) 1,777
Cash at End of Prior Year 2,507 1,654
-------- --------
Cash at End of Period $ 2,100 $ 3,431
-------- --------
<PAGE>
5
TULTEX CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED
JULY 4, 1998
NOTE 1 - The accompanying consolidated financial statements furnished in this
quarterly 10-Q Report reflect all adjustments, consisting only of normal
recurring adjustments, which are, in the opinion of management, necessary for a
fair statement of the results of the interim periods. This balance sheet,
statement of operations and statement of cash flows have been prepared from the
Company's records and are subject to audit and year-end adjustments.
Certain prior year amounts have been reclassified to conform with current year
presentation.
NOTE 2 - A summary of inventories by component follows.
(In thousands of dollars)
JULY 4, 1998 January 3, 1998
----------------- -----------------
Raw Materials $36,086 $30,198
Supplies 11,699 10,958
Goods-in-Process 27,696 19,391
Finished Goods 186,501 139,308
----------------- -----------------
Total Inventory $261,982 $199,855
================= =================
NOTE 3 - Income taxes are provided based upon income or loss reported for
financial statement purposes. Deferred income taxes are provided for the
temporary differences between the financial reporting basis and the tax basis of
the company's assets and liabilities.
NOTE 4 - 5% percent cumulative preferred stock is $100 par value, 22,000 shares
authorized, 1,975 shares issued and outstanding as of July 4,1998 and January 3,
1998. The stated quarterly dividend was declared on May 5, 1998, and paid on
July 1, 1998.
Series B, $7.50 cumulative, convertible preferred stock is $100 stated value,
150,000 shares authorized, 75,000 shares issued and outstanding as of July 4,
1998 and January 3, 1998. The stated quarterly dividend was declared on May 5,
1998, and paid on July 1, 1998.
Series C, 4.5% cumulative convertible preferred stock is $10 stated value,
100,000 shares authorized, 33,260 shares issued and outstanding as of July 4,
1998 and January 3, 1998. The stated quarterly dividend was declared on May 5,
1998, and paid on July 1, 1998.
Common stock, $1 par value, 60,000,000 shares authorized, shares issued and
outstanding were 29,885,088 at July 4, 1998, and 29,875,488 at January 3, 1998.
There were no dividends declared on the company's common stock for the three
month period ended July 4, 1998.
NOTE 5 - Income (loss) per common share is computed using the weighted average
common shares outstanding. The only potential dilutive common shares are from
outstanding stock options which add 114,856 shares, calculated using the
treasury stock method, to the second quarter 1997 weighted average
<PAGE>
6
common shares outstanding.
NOTE 6 - On July 15, 1998 the Company completed the sale of substantially all
the assets and business of LogoAthletic, Inc. and LogoAthletic/Headwear, Inc.,
its licensed apparel subsidiaries, to TKS Acquisition Inc., a new company headed
by Thomas K. Shine, President and CEO of LogoAthletic. Consideration to the
Company is approximately $96.0 million in cash and $12.5 million in subordinated
notes of TKS due five years after the closing. Additional cash payments may be
received by the Company if TKS reaches certain sales targets during the next two
years. As part of the transaction, the Company repurchased $6.0 million of its
outstanding preferred stock owned by investors in TKS.
An estimated pre-tax loss from the sale of $16.3 million (after-tax of $9.9
million or $0.33 per share) is reflected in the second quarter 1998 Consolidated
Statement of Operations. Additional information about the sale can be found in
Form 8-K filed with the Securities and Exchange Commission on July 29,1998.
NOTE 7 - The following financial information presents consolidated financial
data which includes (i) the parent company only ("Parent"), (ii) the
wholly-owned guarantor subsidiaries on a combined basis ("Wholly-owned Guarantor
Subsidiaries"), (iii) the wholly-owned non-guarantor subsidiaries on a combined
basis ("Wholly-owned Non-guarantor Subsidiaries"), (iv) the majority-owned
subsidiary ("Majority-owned Subsidiary") and (v) the company on a consolidated
basis.
<TABLE>
<CAPTION>
<S> <C>
Wholly-owned Wholly-owned
Guarantor Non-guarantor Majority-owned
(In thousands of dollars) Parent Subsidiaries Subsidiaries Subsidiary Eliminations Consolidated
- --------------------------------------------------------------------------------------------------------------------------
For the three months ended
July 4, 1998
Net sales $ 87,207 $ 37,199 $ 43,269 $ - $(34,764) $132,911
Cost and expenses 111,948 38,353 39,591 - (34,764) 155,128
----------------------------------------------------------------------------------------
Pretax income (loss) $ (24,741) $ (1,154) $ 3,678 $ - $ - $(22,217)
----------------------------------------------------------------------------------------
For the three months ended
July 5, 1997
Net sales $ 99,784 $ 41,539 $ 32,993 $ 2,524 $(28,723) $148,117
Cost and expenses 101,958 39,657 31,174 2,552 (28,627) 146,714
----------------------------------------------------------------------------------------
Pretax income (loss) $ (2,174) $ 1,882 $ 1,819 $ (28) $ (96) $ 1,403
----------------------------------------------------------------------------------------
For the six months ended
July 4, 1998
Net sales $ 142,184 $ 71,380 $ 81,269 $ - $(61,649) $233,184
Cost and expenses 179,243 74,627 74,385 - (61,649) 266,606
----------------------------------------------------------------------------------------
Pretax income (loss) $ (37,059) $ (3,247) $ 6,884 $ - $ - $(33,422)
----------------------------------------------------------------------------------------
</TABLE>
<PAGE>
7
<TABLE>
<CAPTION>
<S> <C>
Wholly-owned Wholly-owned
Guarantor Non-guarantor Majority-owned
(In thousands of dollars) Parent Subsidiaries Subsidiaries Subsidiary Eliminations Consolidated
- ---------------------------------------------------------------------------------------------------------------------
For the six months ended
July 5, 1997
Net sales $ 158,580 $ 86,088 $ 32,993 $ 5,285 $ (35,199) $ 247,747
Cost and expenses 164,837 86,775 31,174 5,744 (35,234) 253,296
------------------------------------------------------------------------------------------
Pretax income (loss) $ (6,257) $ (687) $ 1,819 $ (459) $ 35 $ (5,549)
------------------------------------------------------------------------------------------
As of July 4, 1998
Current assets $ 300,476 $ 193,607 $ 78,955 $ - $ (163,107) $ 409,931
Noncurrent assets 254,479 32,351 22,647 - (113,744) 195,733
------------------------------------------------------------------------------------------
Total assets $ 554,955 $ 225,958 $ 101,602 $ - $ (276,851) $ 605,664
------------------------------------------------------------------------------------------
Current liabilities $ 37,043 $ 141,155 $ 36,342 $ - $ (157,665) $ 56,875
Noncurrent liabilities 372,629 2,428 (933) - 1,089 375,213
------------------------------------------------------------------------------------------
Total liabilities $ 409,672 $ 143,583 $ 35,409 $ - $ (156,576) $ 432,088
------------------------------------------------------------------------------------------
As of January 3, 1998
Current assets $ 230,643 $ 168,877 $ 64,126 $ - $ (125,983) $ 337,663
Noncurrent assets 257,804 33,638 22,706 - (113,585) 200,563
------------------------------------------------------------------------------------------
Total assets $ 488,447 $ 202,515 $ 86,832 $ - $ (239,568) $ 538,226
------------------------------------------------------------------------------------------
Current liabilities $ 19,925 $ 117,462 $ 24,989 $ - $ (120,434) $ 41,942
Noncurrent liabilities 299,145 2,247 (306) - 1,086 302,172
------------------------------------------------------------------------------------------
Total liabilities $ 319,070 $ 119,709 $ 24,683 $ - $ (119,348) $ 344,114
------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
8
TULTEX CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
JULY 4, 1998
RESULTS OF OPERATIONS
- ---------------------
The following table presents the company's consolidated statement of operations
items as a percentage of net sales.
THREE MONTHS ENDED SIX MONTHS ENDED
--------------------------------------
07/04/98 07/05/97 07/04/98 07/05/97
------- ------- ------- -------
Net Sales and Other Income 100.0% 100.0% 100.0% 100.0%
----- ----- ----- -----
Cost of Products Sold 78.1 77.8 77.0 76.3
Depreciation 3.8 3.4 4.4 4.1
Selling, General and
Administrative 16.4 13.2 19.4 16.8
Loss on Sale of Subsidiaries 12.3 - 7.0 -
Interest 6.1 4.7 6.5 5.0
----- ----- ----- -----
Total Costs and Expenses 116.7 99.1 114.3 102.2
----- ----- ----- -----
Income (Loss) Before Income Taxes (16.7) 0.9 (14.3) (2.2)
Benefit (Provision) for Income
Taxes 6.5 (0.3) 5.6 .8
----- ----- ----- -----
Net Income (Loss) (10.2)% 0.6% (8.7)% (1.4)%
===== ===== ===== =====
Note: Certain items have been rounded to cause the columns to add to 100%.
This Quarterly Report on Form 10-Q contains certain forward-looking statements
reflecting the company's current expectations and there can be no assurances
that the company's actual future performance will meet such expectations.
Potential risks and uncertainties include such factors as the financial
condition of the company, the cost of borrowings, the ability of the company to
remain in compliance with its debt covenants, the financial strength of the
retail industry, the level of consumer spending on apparel, the recent sale of
the Company's licensed apparel subsidiaries and the competitive pricing
environment within the apparel industry. Investors are also directed to consider
other risks and uncertainties discussed in other documents filed by the company
with the Securities and Exchange Commission.
Net loss for the second quarter of 1998 was $13.6 million, or $0.46 per common
share, compared with net income of $0.9 million, or $0.02 per common share in
the second quarter of 1997. Results for the second quarter 1998 include a
provision for an estimated pre-tax loss of $16.3 million (after-tax of $9.9
million or $0.33 per common share) related to the sale of substantially all the
assets and business of LogoAthletic, Inc. and LogoAthletic/Headwear, Inc.,
Tultex's licensed apparel subsidiaries. Excluding the provision for estimated
loss on the sale of the licensed apparel subsidiaries, the net loss for the
quarter was $3.6 million, or $0.13 per common share. The net loss for the first
six months of fiscal 1998 was $20.4 million, or $0.69 per common share, compared
with a net loss of $3.4 million, or $0.13 per common share in the comparable
1997 period. Excluding the provision for estimated loss on the sale of the
licensed subsidiaries, the net loss for the six-month period ended July 4, 1998
was $10.4 million, or $0.36 per common share.
Net sales and other income for the three months ended July 4, 1998 decreased
$15.2 million, or 10.3%, from the second quarter of 1997. Activewear sales of
$99.8 million decreased $13.3 million, or 11.7%, as compared to the second
quarter of 1997. The activewear sales decrease resulted from lower volume in
fleece products as well as lower prices in jersey products. Licensed apparel
sales of $33.1 million in the second quarter of 1998 represent a decrease of
$1.9 million, or 5.5%, as compared to the same period of the prior year. The
licensed apparel sales decrease resulted from weak demand for NBA products.
<PAGE>
9
For the six months to date, net sales and other income decreased $14.6 million,
or 5.9%. The activewear sales decrease of 2.6% reflect lower fleece sales which
were partially offset by the inclusion of sales for California Shirt Sales and
T-Shirt City which were acquired during the second quarter of 1997. The licensed
apparel sales decrease of 13.2% resulted from weak demand for NBA products and
softness in Major League Baseball.
Cost of products sold as a percentage of sales increased to 78.1% for the second
quarter of 1998 compared to 77.8% for the comparable second quarter of last
year. For the comparative six-month periods, cost as a percentage of sales
increased from 76.3% to 77.0% in 1998. The decrease in margin as a percentage of
sales reflects competitive price conditions and the shift in product mix toward
jersey products which typically carry a lower margin than the company's fleece
products.
Depreciation expense decreased $28,000, or .5%, from the second quarter of 1997,
and for the six months depreciation increased $28,000, or .3% as compared to the
same period in 1997.
Selling, general and administrative expenses (S,G&A) increased $2.2 million for
the second quarter of 1998 compared to the same period of 1997. The primary
reason for the increase was higher advertising expenses. As a percentage of
sales, S,G&A expenses were 16.4% compared to 13.2% for the second quarter of
1997. During the six month period ended July 4, 1998, S,G&A expenses were $45.4
million, or 19.4% of sales, compared to $41.7 million, or 16.8% of sales, for
the comparable period of the prior year. The primary reason for this increase
was the inclusion of expenses of California Shirt Sales and T-Shirt City.
Interest expense for the second quarter of 1998 was $8.1 million compared to
$6.9 million in the comparable period of 1997. The increase for the second
quarter over the comparable period of 1997 is due to higher average borrowings
and higher borrowing rates. Second quarter working capital borrowings averaged
$144.3 million at an average rate of 8.3% compared to $111.8 million and 7.5%,
respectively, for the comparable period of the prior year. Interest expense for
the six months was $15.0 million compared to $12.3 million in the same period in
1997. The increase for the six months is due to higher average borrowings and
higher average borrowing rates. The higher average borrowings resulted from the
company's two distributor acquisitions which occurred during the second quarter
of 1997. The higher average borrowing rates were primarily due to the issuance
of $75 million of 9 5/8% Senior Notes in the second quarter of 1997 which carry
a higher rate than the company's revolving credit facility borrowings. For the
first six months of 1998, working capital borrowings averaged $119.5 million at
an average rate of 8.1% compared to $113.6 million and 7.3%, respectively, for
the comparable period of the prior year. The nature of the company's business
requires extensive seasonal borrowings to support its working capital needs.
Benefit (Provision) for income taxes reflects an effective rate for combined
federal and state income taxes of 39% for both periods of 1998 as well as for
the comparable periods of 1997.
FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES
Net working capital at July 4, 1998 increased $57.3 million from year-end 1997
due primarily to higher inventories which were partially offset by lower
accounts receivable. The increase in working capital was funded through an
increase in the Company's long-term revolving line of credit. Inventories
traditionally
<PAGE>
10
increase during the first half of the year to support second-half shipments.
Compared to January 3, 1998, inventories increased $62.1 million, or 31.1%. Net
accounts receivable decreased $5.3 million from January 3, 1998 to July 4, 1998
due to the seasonality of the company's business. Receivables normally peak in
September and October and begin to decline in December as shipment volume
decreases and cash is collected.
The current ratio at July 4, 1998 was 7.2 compared to 8.1 at January 3, 1998.
Total long-term debt at July 4, 1998 included senior notes totaling $185 million
and $160.8 million outstanding under the revolving credit facility. At the end
of the second quarter of 1998, the company was in compliance with all debt
covenants.
Debt as a percentage of total capitalization was 67.8% as of July 4, 1998
compared to 60.0% as of January 3, 1998.
For the first six months of 1998, net cash used by operations of $67.4 million
reflects the seasonal increase in inventories. Cash used for capital asset
additions decreased $13.5 million in 1998 compared to the first six months of
1997. Cash provided by financing activities was $74.1 million, which was
primarily used for working capital requirements. The company expects that annual
cash flows from income adjusted for non-cash items, supplemented by the
revolving credit facility, will be adequate to support requirements for the
remainder of 1998.
NEW ACCOUNTING STANDARDS
In June 1997, the Financial Accounting Standards Board (the "Board") adopted
Statement of Financial Accounting Standards No. 130, "Reporting Comprehensive
Income" ("FAS 130"), which establishes standards for the reporting and display
of comprehensive income and its components in financial statements. FAS 130
requires that all items that are required to be recognized under accounting
standards as components of comprehensive income be reported in a financial
statement that is displayed with the same prominence as other financial
statements. The Company adopted this statement in the first quarter of 1998,
however there were no items which gave rise to other comprehensive income during
either the first six months of 1998 or the first six months of 1997.
In June 1997, the Board issued FAS 131, "Disclosures about Segments of an
Enterprise and Related Information". This Statement will change the way the
company reports information about segments of their business in their annual
financial statements and require the company to report selected segment
information in their quarterly reports issued to shareholders. It also requires
entity-wide disclosures about the products and services an entity provides, the
material countries in which it holds assets and reports revenues, and its major
customers. The Statement requires the company to disclose segment data based on
how management makes decisions about allocating resources to segments and
measuring their performance. This statement is effective for financial
statements for periods beginning after December 15, 1997. Disclosure of segment
information is not required in interim financial statements in the initial year
of its application.
<PAGE>
11
TULTEX CORPORATION
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
- -----------------------------------------
(a) Exhibits
--------
None
(b) Reports on Form 8-K
--------------------
The following reports on Form 8-K were filed during the quarter for which
this report was filed:
1. Current report on Form 8-K dated June 12, 1998 and filed on June 19,
1998 reporting under Item 5 the press release issued by the Registrant
announcing the Registrant's agreement to sell its LogoAthletic, Inc, and
LogoAthletic/Headwear Inc. subsidiaries.
2. Current report on Form 8-K dated July 15, 1998 and filed July 29, 1998
reporting Item 2 and Item 7 including certain information concerning the
Registrant's sale of its LogoAthletic Inc. and LogoAthletic/Headwear Inc.
subsidiaries and unaudited pro forma information about the sale.
Items 1, 2, 3, 4 and 5 are inapplicable and are omitted.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
TULTEX CORPORATION
------------------
(Registrant)
Date August 17, 1998 /s/ C. W. Davies, Jr.
--------------- ---------------------
C. W. Davies, Jr., President and Chief
Executive Officer
Date August 17, 1998 /s/ S. H. Wood
--------------- --------------
Suzanne H. Wood,
Vice President and Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JAN-02-1999
<PERIOD-END> JUL-04-1998
<CASH> 2,100
<SECURITIES> 0
<RECEIVABLES> 122,089
<ALLOWANCES> 4,106
<INVENTORY> 261,982
<CURRENT-ASSETS> 409,931
<PP&E> 350,597
<DEPRECIATION> 213,614
<TOTAL-ASSETS> 605,664
<CURRENT-LIABILITIES> 56,875
<BONDS> 360,222
0
8,031
<COMMON> 29,885
<OTHER-SE> 135,660
<TOTAL-LIABILITY-AND-EQUITY> 605,664
<SALES> 233,184
<TOTAL-REVENUES> 233,184
<CGS> 179,673
<TOTAL-COSTS> 189,885
<OTHER-EXPENSES> 60,894
<LOSS-PROVISION> 786
<INTEREST-EXPENSE> 15,041
<INCOME-PRETAX> (33,422)
<INCOME-TAX> 13,035
<INCOME-CONTINUING> (20,387)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (20,387)
<EPS-PRIMARY> (.69)
<EPS-DILUTED> (.69)
</TABLE>
