UNITED STATES
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
August 26, 1999
(Date of earliest event reported)
KELLWOOD COMPANY
(Exact Name of Registrant as Specified in Charter)
Delaware
(State of Other Jurisdiction of Incorporation)
36-2472410
(Commission File Number) (IRS Employer Identification No.)
600 KELLWOOD PARKWAY
P.O. BOX 14374
CHESTERFIELD, MISSOURI 63017
(Address, including zip code, of
Registrant's Principal Executive Offices)
(314) 576-3100
(Registrant's Telephone Number, including area code)
<PAGE>
ITEM 5. OTHER EVENTS
On August 26, 1999, the Company issued a press release reporting
operating results for its first quarter ended July 31, 1999. The Company also
reported action by its Board of Directors to change the Company's fiscal
year-end from April 30 to January 31. The President and CEO announced that the
change in fiscal year will bring the Company more in line with the operating
cycle of the business as well as the fiscal year-end of the Company's customers
and other apparel companies.
A copy of the press release is attached as an Exhibit and incorporated
herein by reference.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL
INFORMATION AND EXHIBITS
(a) Exhibits
99 Press Release dated August 26, 1999.
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, hereunto duly authorized, in the City of St. Louis, State of
Missouri on August 26, 1999.
KELLWOOD COMPANY
By: /s/ Thomas H. Pollihan
-----------------------------------
Thomas H. Pollihan
Vice President, Secretary and
General Counsel
Exhibit 99 to Form 8-K
Financial Contact: James C. Jacobsen, (314) 576-3429, Fax: (314) 576-3439 OR
Roger D. Joseph, (314) 576-3437, Fax: (314) 576-3325
Media Contact: Donna B. Weaver, (314) 576-3265, Fax: (314) 576-3434
FOR IMMEDIATE RELEASE
KELLWOOD (NYSE) REPORTS FIRST QUARTER RESULTS
NET EARNINGS UP 10.5 PERCENT, SALES DOWN 2.6 PERCENT
REGULAR QUARTERLY DIVIDEND DECLARED
ST. LOUIS, MISSOURI, August 26, 1999 -- Kellwood Company reported sales and net
earnings today for the first quarter ended July 31, 1999. Sales for the quarter
were $470,575,000 down 2.6 percent from $483,283,000 a year ago. Net earnings
for the quarter increased 10.5 percent to $9,557,000 or $0.34 per share, up from
$8,652,000 or $0.32 per share last year, according to Hal J. Upbin, president
and chief executive officer. Upbin pointed out, "These results were in line with
expectations."
The decrease in sales for the quarter was anticipated due to the
retailers' desire to take in Fall merchandise closer to the selling season and
carry less inventory to avoid having to take heavy end-of-season markdowns.
Sales for the quarter were also impacted by a change in fashion direction away
from heavier weight fabrics and structured garments to less expensive lighter
weight and softer looks. This resulted in lower average selling prices and the
timing of certain growth initiatives and new programs that are not expected to
fully develop until the second half of the year.
-More-
<PAGE>
Add One
In response to the planned reduction in sales, inventory at the end of the first
quarter was down $72 million and represented 66 days supply versus 83 days last
year. Total debt at the end of July was $392 million, down $34 million from July
of last year, and cash increased by $43 million to $72 million as of July 31,
1999.
Net earnings increased 10.5 percent due to cost savings attendant with
the Company's Vision 2000 program and a shift in mix to higher margin business,
which contributed to a full percentage point improvement in gross margin, lower
interest expense, and lower amortization of intangibles. "We remain optimistic
about the outlook for fiscal 2000," Upbin noted.
The Board of Directors took action to change the Company's fiscal
year-end from April 30 to January 31. "This move to a January 31 fiscal year
will bring Kellwood more in line with the operating cycle of our business, as
well as the fiscal year-end of our customers and other apparel companies", Upbin
stated.
The Board of Directors declared a regular quarterly dividend of $0.16
per common share, payable September 17, 1999 to shareholders of record September
7, 1999.
Kellwood Company (NYSE) is an international marketer, merchandiser, and
manufacturer of apparel and recreational camping products. For more about
Kellwood, visit the Company's web site at www.kellwood.com.
<PAGE>
Add two
KELLWOOD COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET (unaudited)
(Amounts in thousands)
July 31,
--------
ASSETS 1999 1998
- ------ ---- ----
CURRENT ASSETS:
Cash and time deposits $ 71,578 $ 28,822
Receivables, net 339,114 299,002
Inventories 382,447 453,942
Prepaid taxes and expenses 39,395 37,263
---------- ----------
TOTAL CURRENT ASSETS 832,534 819,029
PROPERTY, PLANT AND EQUIPMENT, NET 105,048 85,744
INTANGIBLE ASSETS, NET 58,852 110,824
OTHER ASSETS 97,165 89,417
---------- ----------
$1,093,599 $ 1,105,014
---------- ----------
LIABILITIES AND SHAREOWNERS' EQUITY
- -----------------------------------
CURRENT LIABILITIES:
Current portion of long-term debt $ 16,412 $ 19,456
Notes payable 2,124 158,954
Accounts payable 118,014 118,271
Accrued expenses 80,552 73,855
---------- ----------
TOTAL CURRENT LIABILITIES 217,102 370,536
LONG-TERM DEBT 373,494 247,809
DEFERRED INCOME TAXES AND OTHER 50,001 49,598
SHAREOWNERS' EQUITY 453,002 437,071
---------- ----------
$1,093,599 $1,105,014
========== ==========
-more-
<PAGE>
Add three
KELLWOOD COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF EARNINGS (unaudited)
(Amounts in thousands except per share data)
Three Months Ended
July 31,
------------------
1998 1997
---- ----
NET SALES BY SEGMENT:
Popular-to-Moderate $ 288,614 $ 295,668
Better-to-Bridge 34,397 40,256
Private Label Apparel 59,005 60,442
Smart Shirts 50,608 50,138
Recreation Products 37,951 36,779
--------- ---------
TOTAL NET SALES 470,575 483,283
COSTS AND EXPENSES:
Cost of products sold 369,859 384,821
Selling, general and
administrative expenses 76,714 71,153
Amortization of intangible assets 1,659 3,832
Interest expense 6,357 8,984
Interest income and other, net (71) (380)
--------- ---------
EARNINGS BEFORE INCOME TAXES 16,057 14,873
INCOME TAXES 6,500 6,221
--------- ---------
NET EARNINGS $ 9,557 $ 8,652
========= =========
WEIGHTED AVERAGE SHARES
OUTSTANDING:
Basic 27,722 26,218
========= =========
Diluted 28,081 27,038
========= =========
EARNINGS PER SHARE:
Basic $ 0.34 $ 0.33
========= =========
Diluted $ 0.34 $ 0.32
========= =========
###
