SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported): March 21, 1996
Hyde Athletic Industries, Inc.
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(Exact Name of Registrant as Specified in its Charter)
Massachusetts
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(State or Other Jurisdiction of Incorporation)
0-05083 04-1465840
(Commission File Number) (I.R.S. Employer Identification No.)
Centennial Industrial Park
13 Centennial Drive, Peabody, Massachusetts 01960
(Address of Principal Executive Offices) (Zip Code)
(508) 532-9000
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(Registrant's Telephone Number, Including Area Code)
Not Applicable
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(Former Name or Former Address, if Changed Since Last Report)
ITEM 5. OTHER EVENTS.
The Company is filing certain "Cautionary Statements" for the purposes of
establishing a readily available document which may be referenced pursuant to
the "safe harbor" provisions of the Private Securities Litigation Reform Act of
1995. Such Cautionary Statements are attached as Exhibit 99.1 and incorporated
herein by reference.
ITEM 7. FINANCIAL STATEMENT AND EXHIBITS.
(c) Exhibits
Exhibit 99.1 - Cautionary Statements
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 hereunto duly authorized.
Date: March 21, 1996 HYDE ATHLETIC INDUSTRIES, INC.
(Registrant)
/s/ Charles A. Gottesman
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By: Charles A. Gottesman
Executive Vice President
INDEX TO EXHIBITS
Exhibit
Number Page No.
Exhibit 99.1
CAUTIONARY STATEMENTS
The following important factors, among others, could cause actual results of
Hyde Athletic Industries, Inc. (the "Company") to differ materially from those
indicated by forward-looking statements made from time to time by the Company in
reports, proxy statements, registration statements and other written
communications, as well as by oral forward-looking statements made from time to
time by the Company's officers or agents.
Competition. Competition is intense in the markets in which the Company sells
its products. The Company competes with a large number of other companies, both
domestic and foreign, several of which have diversified products lines, well-
known brands and financial, distribution and marketing resources substantially
greater than those of the Company. The principal competitors for the Company's
Saucony products are Nike, Reebok International, New Balance and ASICS. The
principal competitors for the Company's Brookfield products are Variflex, Roller
Derby, Blade Runner and Fisher-Price.
Dependence on Foreign Suppliers. A number of manufacturers located in the Far
East, primarily in China, Taiwan and Thailand, supply products and product
components to the Company. During fiscal 1995, one of such suppliers, located in
China, accounted for approximately 31% of the Company's total purchases by
dollar volume. The Company is subject to the usual risks of a business
involving foreign suppliers, such as currency fluctuations, government
regulation of fund transfers, export and import duties, trade limitations
imposed by the United States or foreign governments and political and labor
instability. In particular, there are a number of trade-related and other
issues creating significant friction between the governments of the United
States and China, and the imposition of punitive import duties on certain
categories of Chinese products has been threatened in the past and may be
implemented in the future. In addition, the Company has no long-term
manufacturing agreements with its foreign suppliers and competes with other
athletic shoe and recreational product companies including companies that are
much larger than the Company for access to production facilities.
Potential Fluctuations in Quarterly Results. The Company's quarterly operating
results may vary significantly depending on a number of factors, including the
timing and shipment of individual orders, market acceptance of new athletic
footwear or outdoor recreational products for children, changes in the Company's
operating expenses, personnel changes, mix of products sold, changes in product
pricing and general economic conditions. In addition, a substantial portion of
the Company's revenue is realized during the last few weeks of each quarter;
therefore, any delays in orders or shipments are more likely to result in
revenue not being recognized until the following quarter, which could adversely
impact the results of operations for that quarter. The Company's current
expense levels are based in part on its expectations of future revenue and, as a
result, net income for a given period could be disproportionately affected by
any reduction in revenue. It is possible that in some future quarter the
Company's revenue or operating results will be below the expectations of stock
market securities analysts and investors; if that were to occur, the market
price of the Common Stock could be materially adversely affected.
Management of Growth. One element of the Company's business strategy is to seek
acquisitions of businesses and products that are complementary to those of the
Company. There can be no assurance that the Company will be able to effect any
acquisitions, operate any such acquired businesses profitably or otherwise
implement its growth strategy successfully. In addition, identifying and
effecting acquisitions and integrating the acquired businesses with the
operations of the Company may place significant demands upon the current
management team and operational systems of the Company. In order to effect
acquisitions of a certain size, the Company may require additional capital,
which the Company may obtain through additional borrowings under its credit
facility.
Dependence Upon Licensing Arrangements. The Company sells Brookfield products
under trade names licensed from other parties. Most of the Company's licenses
are non-exclusive, have a fixed term and limit the types of products that may be
sold under the license.
Dependence on Consumer Preferences. The Company is susceptible to fluctuations
in its business based upon fashion trends and frequently changing consumer style
preferences and product demands, including levels of enthusiasm for athletic
activities. The Company believes that its success depends in substantial part
on its ability to anticipate, gauge and respond to changing consumer demands and
fashion trends in a timely manner. Moreover, the Company could be materially
adversely affected by conditions in the retail industry in general, including
consolidation and the resulting decline in the number of retailers and other
cyclical economic factors.
Advertising and Marketing Programs. The Company's success in the markets in
which it competes depends in part upon the effectiveness of advertising and
marketing programs of the Company. In particular, it is imperative that the
Company periodically design and successfully execute new and effective
advertising and marketing programs.
Dependence on Major Customers. Although the Company had no customer that
accounted for ten percent or more of the Company's consolidated revenue during
1995, the Company's business is susceptible to the loss of certain key customers
of the Company's product lines, such as Foot Locker for the Company's Saucony
