SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------
FORM 10-Q
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the Period Ended October 2, 1999
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 1-63
PREMIUMWEAR, INC.
(Exact Name of Registrant as Specified in its Charter)
DELAWARE 41-0429620
(State of Incorporation) (I.R.S. Employer Identification No.)
5500 FELTL ROAD, MINNETONKA, MINNESOTA 55343-7902
(Address of principal executive office) (Zip Code)
REGISTRANT'S TELEPHONE NUMBER: (800) 248-0158 OR (612) 979-1700
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of 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 ___
The number of shares of common stock outstanding at
November 5, 1999 was 2,544,610.
This Form 10-Q consists of 17 pages.
<PAGE>
PREMIUMWEAR, INC.
INDEX
Page No.
--------
PART I: FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets
October 2, 1999 and January 2, 1999.............................. 3
Condensed Consolidated Statements of Operations
for the Three Months and Nine Months ended October 2, 1999
and October 3, 1998.............................................. 4
Condensed Consolidated Statements of Cash Flows
for the Nine Months ended October 2, 1999 and October 3, 1998.... 5
Notes to Condensed Consolidated Financial Statements............. 6
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations.................... 9
Item 3. Qualitative and Quantitative Disclosures about Market Risk....... 14
PART II: OTHER INFORMATION
Item 5. Other Information................................................ 15
Item 6. Exhibits and Reports on Form 8-K................................. 15
Exhibit 27 - Financial Data Schedule............................. 17
2
<PAGE>
PART I: FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
PREMIUMWEAR, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts unaudited and in thousands)
<TABLE>
<CAPTION>
October 2, January 2,
1999 1999
---- ----
<S> <C> <C>
ASSETS
Current Assets:
Cash and cash equivalents .............................. $ 902 $ 3,215
Accounts receivable, less allowances of $495 and $728 .. 8,682 6,026
Inventories ............................................ 7,877 9,037
Deferred taxes ......................................... 944 944
Prepaid expenses and other ............................. 964 624
-------- --------
Total current assets ............................. 19,369 19,846
-------- --------
Property, plant and equipment, less accumulated
depreciation and amortization of $4,935 and $4,335 ..... 2,230 1,118
Deferred taxes ............................................ 1,556 1,556
Goodwill .................................................. 2,297 --
-------- --------
$ 25,452 $ 22,520
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Line of credit borrowings .............................. $ -- $ --
Accounts payable ....................................... 3,203 3,061
Accrued payroll and employee benefits .................. 1,147 1,552
Other accruals ......................................... 1,200 409
-------- --------
Total current liabilities ........................ 5,550 5,022
-------- --------
Postretirement benefits ................................... 695 695
-------- --------
Shareholders' equity:
Common stock, $.01 par value:
2,594,610 and 2,339,530 shares issued ............ 26 23
Additional paid-in capital ............................. 16,252 14,490
Treasury stock at cost, 50,000 shares at October 2, 1999 (272) --
Retained earnings ...................................... 3,201 2,290
-------- --------
Total shareholders' equity ....................... 19,207 16,803
-------- --------
$ 25,452 $ 22,520
======== ========
</TABLE>
See notes to condensed consolidated financial statements.
3
<PAGE>
PREMIUMWEAR, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts unaudited and in thousands, except per share data)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
October 2, October 3, October 2, October 3,
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
REVENUES:
Net sales ................................................. $ 11,496 $ 10,719 $ 34,480 $ 33,007
Commissions ............................................... 363 -- 805 --
-------- -------- -------- --------
11,859 10,719 35,285 33,007
-------- -------- -------- --------
EXPENSES:
Cost of goods sold ........................................ 7,983 8,140 24,069 24,938
Selling, general and administrative ....................... 2,918 2,135 8,275 6,470
Operations restructuring (1) .............................. 86 -- 1,386 --
-------- -------- -------- --------
10,987 10,275 33,730 31,408
-------- -------- -------- --------
Operating income ............................................. 872 444 1,555 1,599
Interest income (expense), net ............................... 4 47 29 94
Other ........................................................ (39) 6 (66) 7
-------- -------- -------- --------
Income before income taxes ................................... 837 497 1,518 1,700
Provision for income taxes ................................... 331 204 608 691
-------- -------- -------- --------
NET INCOME ................................................ $ 506 $ 293 $ 910 $ 1,009
======== ======== ======== ========
NET INCOME PER COMMON SHARE:
BASIC ............................................... $ 0.20 $ 0.13 $ 0.36 $ 0.44
======== ======== ======== ========
DILUTED ............................................. $ 0.20 $ 0.12 $ 0.36 $ 0.42
======== ======== ======== ========
Weighted average number of shares of common stock outstanding:
Basic ............................................... 2,543 2,320 2,494 2,319
Diluted ............................................. 2,581 2,437 2,548 2,386
</TABLE>
(1) See note 5.
See notes to condensed consolidated financial statements.
4
<PAGE>
PREMIUMWEAR, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts unaudited and in thousands)
<TABLE>
<CAPTION>
Nine Months Ended
Oct. 2, 1999 Oct. 3, 1998
------------ ------------
<S> <C> <C>
OPERATING ACTIVITIES:
Net income .............................................. $ 910 $ 1,009
Reconciling items:
Depreciation and amortization ..................... 456 349
Provision for losses on accounts receivable ....... 69 83
Utilization of net operating loss carryforwards ... 512 544
Changes in operating assets and liabilities:
Accounts receivable ......................... (2,335) (1,910)
Inventories ................................. 1,235 (1,282)
Prepaid expenses and other .................. (255) (153)
Accounts payable ............................ (157) 751
Other current liabilities ................... 317 439
------- -------
Net cash used in operating activities ............. 752 (170)
------- -------
INVESTING ACTIVITIES:
Purchase of property, plant and equipment ............... (1,303) (148)
Purchase of Klouda-Lenz, net of cash acquired ........... (1,474) --
------- -------
Net cash used in investing activities ............. (2,777) (148)
------- -------
FINANCING ACTIVITIES:
Net change in line of credit borrowings ................. (60) --
Proceeds from exercise of stock options ................. 44 1
Purchase of treasury stock .............................. (272) --
------- -------
Net cash provided by (used in) financing activities (288) 1
------- -------
Decrease in cash and cash equivalents ............. (2,313) (317)
Cash and cash equivalents at beginning of period ........ 3,215 2,870
------- -------
Cash and cash equivalents at end of period .............. $ 902 $ 2,553
======= =======
Non-cash transaction:
Issuance of 241,892 shares of common stock in Klouda-Lenz
acquisition ............................................ $ 1,209 $ --
======= =======
</TABLE>
See notes to condensed consolidated financial statements.
5
<PAGE>
PREMIUMWEAR, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS AND NINE MONTHS ENDED OCTOBER 2, 1999
1. Basis of Financial Statement Presentation
The condensed consolidated financial statements for the three months
and nine months ended October 2, 1999 of PremiumWear, Inc. (the
"Company"), formerly known as Munsingwear, Inc., have been prepared
by the Company, without audit, pursuant to the rules and regulations
of the Securities and Exchange Commission and reflect, in the
opinion of management, all normal recurring adjustments necessary to
present fairly the results of operations for the period. 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, although management believes the disclosures are
adequate to make the information presented not misleading.
Due to seasonality of the business, results of operations for the
nine months ended October 2, 1999 are not necessarily indicative of
results for the full year.
These financial statements should be read in conjunction with the
Company's most recent audited financial statements included in its
1998 Annual Report to Shareholders and its 1998 Form 10-K.
2. Inventories
Inventories are stated at the lower of cost (first-in, first-out) or
market and consist of:
October 2, January 2,
(In thousands) 1999 1999
-------------- ---- ----
Raw materials ..................... $ 197 $ 632
Work in process ................... 1,375 1,432
Finished goods .................... 6,305 6,973
------ ------
$7,877 $9,037
====== ======
3. Financing Arrangements
The Company has a bank line of credit under which up to $6,000,000
is available for borrowings and letters of credit through February
3, 2002. Borrowings and letters of credit are limited to an
aggregate amount equaling approximately 80% of eligible receivables
and 50% of eligible finished goods inventories, and essentially all
assets except property, plant and equipment are pledged as
collateral under the agreement. At October 2, 1999, $709,000 was
utilized for letters of credit and $5,291,000 was available under
the line of credit.
6
<PAGE>
4. Net Income per Common Share
Net income per common share was computed as follows:
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
October 2, October 3, October 2, October 3,
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Basic Earnings Per Share:
Weighted average number of
common shares outstanding ..... 2,543,000 2,320,000 2,494,000 2,319,000
Net income .................. $ 506,000 $ 293,000 $ 910,000 $1,009,000
Net income per common
share ...................... $ 0.20 $ 0.13 $ 0.36 $ 0.44
========== ========== ========== ==========
Diluted Earnings Per Share:
Weighted average number of
common shares outstanding ..... 2,543,000 2,320,000 2,494,000 2,319,000
Common share equivalents from
assumed exercise of options ... 38,000 117,000 54,000 67,000
---------- ---------- ---------- ----------
Total shares ................ 2,581,000 2,437,000 2,548,000 2,386,000
Net income .................. $ 506,000 $ 293,000 $ 910,000 $1,009,000
Net income per common share
and common share equivalents $ 0.20 $ 0.12 $ 0.36 $ 0.42
========== ========== ========== ==========
</TABLE>
5. Restructuring of Operations
In recent years the Company has increased its use of full package
imports and 807 contractor sewing operations, steadily reducing its
level of domestic production. During the first nine months of 1999,
offshore production represented approximately 90% of total sourcing
versus 67% in all of 1998 and 40% in all of 1997. As a result of
this trend and the need to remain competitive, on April 26, 1999,
management announced the closing of its North Carolina manufacturing
and distribution facilities. During the third quarter manufacturing
operations were transferred primarily to offshore contract
manufacturers. On November 8, 1999, embroidery and distribution
facilities were moved to and operations commenced at a new leased
facility in Clarksville, Tennessee. Management estimates that
additional start-up expenses of approximately $314,000 will be
incurred and recognized during the last quarter of 1999, primarily
for training of new employees, management relocation, and equipment
and inventory transfers to the new Tennessee location.
In the first nine months of 1999, the Company recorded a pre-tax
charge of $1,300,000 for estimated severance of approximately 220
employees, occupancy, legal, consulting and other expenses related
to the North Carolina facilities closing. As of October 2, 1999, 152
employees had been terminated, sewing and cutting manufacturing were
shut
7
<PAGE>
down, and $535,000 of the estimated expenses had been paid. The
remaining $765,000 accrued is included in Other Accruals at October
2, 1999.
The Company will be donating the closed North Carolina facilities to
the City of Fairmont, North Carolina, which intends to use the
buildings for various civic and local government activities. The
property includes two buildings totaling approximately 139,100
square feet on 20 acres of land.
6. Reclassifications
Certain amounts in the 1998 financial statements have been
reclassified to conform to 1999 presentation. These
reclassifications had no effect on previously reported net income or
shareholders' equity.
8
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
NET SALES for the quarter and nine-month periods increased 7% and
5%, respectively. In the quarter, sales increased in all channels of
distribution--wholesale distributors, advertising specialty (ASI)
dealers, and golf pro shops. Sales of the Company's Page & Tuttle(R)
golf line introduced to the golf market in early 1998 and expanded
into the ASI market in early 1999 represented 11% of sales through
the first nine months of 1999 compared to 4% for the same period
last year.
The backlog of unfilled orders at the end of the third quarter was
approximately $3,100,000 compared to $2,900,000 at the same time
last year. The increase in order backlog was due primarily to golf
pro shop business and the Company's Page & Tuttle(R) line.
As a result of the Company's purchase of Klouda-Lenz, Inc. at the
end of the 1999 first quarter, the Company recognizes COMMISSION
income from the representation of outerwear, leather, sweater and
headwear apparel lines for third parties.
GROSS PROFIT increased sharply from 1998 comparable periods. For the
quarter gross margin improved to 31% from 24% last year and for the
nine-month period to 30% from 24% last year. The increase in both
periods was the result of lower unit costs as a result of increased
offshore sourcing, improved margins in new product offerings and
sales of the new Page & Tuttle(R) line.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSE for the quarter and nine
months increased over the same periods last year as a result of
volume related expenses such as distribution and commissions
expenses. In addition, the Company experienced increased expenses in
the quarter as a result of recruiting fees, additional personnel to
improve customer service and increased advertising commitments to
promote the Company's new Page & Tuttle(R) line. Results for the
quarter and nine month periods also include the operations of
Klouda-Lenz, Inc.
OPERATIONS RESTRUCTURING EXPENSE of $86,000 during the quarter
related to start-up expenses at the Company's new Tennessee
distribution facility. Year-to-date results included an additional
$1,300,000 of estimated one-time costs for severance of
approximately 220 employees, occupancy, legal, consulting and other
expenses related to the closure of the Company's North Carolina
manufacturing and distribution facilities. As of the end of the
third quarter, 152 employees had been terminated. Severance costs of
$358,000 and $177,000 of other costs were paid through the end of
the third quarter. The Company's sewing and cutting facilities were
shut down during the third quarter and production was transferred to
mostly non-domestic locations (See Note 5 to financial statements).
9
<PAGE>
At the beginning of 1999, the Company had net operating loss
carryforwards for federal income tax purposes of approximately
$19,000,000, which will begin to expire in 2005. Due to the adoption
of "Fresh Start Reporting" in 1991, the Company recognizes no
benefit from operating loss carryforwards in its PROVISION FOR
INCOME TAXES. The benefit is reflected as a direct credit to
shareholders' equity, which amount totaled $279,000 and $512,000 in
the third quarter and first nine months of 1999, respectively.
CAPITAL RESOURCES AND LIQUIDITY
The financial condition of the Company is reflected in the
following:
October 2, January 2,
(In thousands) 1999 1999
-------------- ---- ----
Working capital ........................ $13,819 $14,824
Current ratio .......................... 3.5:1 4.0:1
Shareholders' equity ................... $19,207 $16,803
As reported in the Condensed Consolidated Statements of Cash Flows,
operating activities during the first nine months of 1999 provided
$752,000 cash. Inventory decreased $1,235,000 as a result of a
reduction in raw materials and work-in-process due to the shutdown
of manufacturing operations. In addition to $512,000 of cash
provided by the utilization of net operating loss carryforwards, the
Company realized other customary non-cash items such as depreciation
and amortization. These sources of cash were largely offset by a
$2,335,000 increase in receivables due to seasonally low sales in
the fourth quarter of 1998. In late March 1999, the Company spent
$1,474,000, net of $37,000 cash acquired, to purchase Klouda-Lenz,
Inc. Property, plant and equipment purchases were comprised
primarily of software upgrades related to the Company's Y2K project,
additional embroidery machines, and leasehold improvements and new
equipment at the Company's new leased distribution center in
Tennessee. In June the Company completed the repurchase of 50,000
shares of its common stock for $272,000 cash.
LOOKING FORWARD
Near-term management priorities remain as follows:
- Improved customer service
- Sales growth
- Improved profitability
- Efficient and timely start-up of the new distribution
center in Tennessee.
In addition to the $1,386,000 of restructuring expenses already
incurred during the first nine months of 1999, management expects to
incur additional expenses of approximately $314,000 at the new
distribution center location during the last quarter of 1999. These
costs will relate primarily to training, relocation costs and asset
transfers. Management
10
<PAGE>
estimates annual savings of $1,300,000 before tax due to the move of
the manufacturing and distribution facility, primarily the result of
lower offshore costs vs. US production.
In addition to restructuring expenses related to the shutdown of its
North Carolina facility, the Company will spend approximately
$2,500,000 on capital projects in 1999, primarily for outfitting the
new distribution center, replacing embroidery equipment and
upgrading management information systems. Management believes that
the Company's bank line of credit and funds generated from
operations will be sufficient to meet operating and capital needs.
In addition, management believes other sources of capital are
available should the need arise.
Longer-term management priorities are focused on:
- Strategic alliances with finished goods contractors
- Strategic acquisitions
- Strategic management of brands
- More efficient use of technology
- Increased shareholder value
YEAR 2000
The Year 2000 issue is the result of computer programs using a
two-digit format, as opposed to four digits, to indicate the year.
Computer systems based on a two-digit format may be unable to
interpret dates beyond the year 1999, which could cause a system
failure or other computer errors, leading to disruption in
operations.
Readiness:
The Company has a Year 2000 Project Team, whose objective is to
determine and assess the risks of the Year 2000 issue and plan
actions to minimize those risks. The Project Team is comprised of a
key member from each of the Company's organizational departments.
The Project Team identified, inventoried and cataloged information
technology (IT) systems and non-IT systems, equipment and processes
used by the Company and then researched each one to determine the
vulnerability to date-sensitive transactions. This process has been
completed. In addition, the Project Team assessed the risk on the
Company of any Year 2000 non-compliance by any key customer, which
could adversely affect the Company's future revenues, or supplier of
goods and services, which could adversely affect the Company's
future availability of product for sale. This assessment included
questionnaires sent to and other communications with each of the key
customers and suppliers.
The Company uses primarily licensed software products in its
operations with a significant portion of processes and transactions
centralized in one particular software package. During the second
quarter of 1999, the Company upgraded to the current version of this
software which provides additional functionality and is certified
Y2K compliant. The Company has been successfully processing
transactions with year 2000 dates during the third quarter. The
Company has upgraded other licensed software
11
<PAGE>
products which interface with this central software package to Y2K
compliant versions, including primarily warehouse and distribution
operations and demand forecasting software. Internally developed
systems are limited primarily to management reporting systems and
electronic data interface with a few key customers and its sales
representative organization.
Costs:
Approximately $500,000 of incremental costs have been expended,
primarily for outside consulting, programming and training costs in
addition to the purchase costs of software upgrades and the
installation of new hardware. Through the first nine months of 1999,
approximately 90% of the anticipated costs had been incurred. Based
on its current assessment, management does not expect any material
adverse impact on the Company's financial condition or results of
operations as a result of costs associated with Year 2000
compliance, and will follow established Company policy in accounting
for such costs as capital or expense.
Risks:
The Company is exercising its best efforts to identify and remedy
any potential Year 2000 exposures within its control. It has
directed significant resources in manpower, services, and equipment
to upgrade its internal systems and to identify any potential Year
2000 problems with key suppliers and customers. However, the Company
relies heavily on telecommunications and other essential utilities
which, to a significant extent, are beyond the immediate control of
the Company. Risks range from slight delays and inefficiencies in
data processing and business interruptions at small customers and
suppliers to, in a worst case scenario, extensive and costly
inability to process data, and business interruptions at certain key
customers and suppliers, which could result in lost sales and
limited product availability, respectively.
Primary risks to the Company are in the following areas:
* Year 2000 non-compliance by certain key customers, which could
adversely affect the Company's revenues in the year 2000.
* Year 2000 non-compliance by certain key suppliers, which could
adversely affect the Company's availability of inventory for
sale in the year 2000.
* Readiness of public utilities which supply essential services
such as telecommunications, electricity and gas.
Contingency Plans:
Contingency plans to protect the Company from Year 2000-related
interruptions are not final but will likely include, but not be
limited to, identification of manual systems required for less
critical computerized systems and identification of alternate
suppliers and additional customers, where appropriate.
While the Company anticipates achieving Year 2000 compliance in a
timely manner, there can be no assurance that all processes will be
efficient, that no revenues will be lost, or that no sources of
supply will be interrupted. However, the Company believes that its
planning and action efforts to date will help to minimize any
disruption.
12
<PAGE>
CAUTIONARY STATEMENT
Statements included in this Management's Discussion and Analysis of
Financial Condition and Results of Operations, elsewhere in Form
10-Q of which this is a part, and in future filings by the Company
with the Securities and Exchange Commission, in the Company's press
releases and in oral statements made with the approval of an
authorized executive officer which are not historical or current
facts are "forward-looking statements" made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of
1995 and are subject to certain risks and uncertainties that could
cause actual results to differ materially from historical earnings
and those presently anticipated or projected. The Company wishes to
caution readers not to place undue reliance on any such
forward-looking statements, which speak only as of the date made.
The following important factors, among others, in some cases have
affected and in the future could affect the Company's actual results
and could cause the Company's actual financial performance to differ
materially from that expressed in any forward-looking statement: (i)
competitive conditions that currently exist, including the entry
into the market by a number of competitors with significantly
greater financial resources than the Company, are expected to
continue, placing pressure on selling prices which could adversely
impact sales and gross margins; (ii) the inability to complete the
closing of the Company's North Carolina manufacturing and
distribution center facilities on schedule and successfully complete
the transition to additional offshore sourcing and a new
distribution center facility could adversely impact the Company's
sales; (iii) the inability to carry out marketing and sales plans
would have a materially adverse impact on the Company's projections;
(iv) the Company is the licensee of the Munsingwear(R) brand and
maintaining a harmonious working relationship with the licensor is
important for continued successful development of the special
markets business; (v) as a licensee, the Company is dependent on the
licensor to adequately promote the brand and defend it from
trademark infringement; and (vi) the possible events described above
under Year 2000 as Risks could, if they materialize, adversely
impact financial performance.
13
<PAGE>
ITEM 3. QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT
MARKET RISK
MARKET RISK
Market risk is the potential loss arising from adverse changes in
market rates and prices, such as foreign currency exchange rates,
interest rates and commodity futures pricing. The Company is exposed
to various market risks, including fluctuations in foreign currency
exchange rates, interest rates and cotton prices. The Company does
not enter into derivatives or other financial instruments for
trading, speculative or hedging purposes.
The Company follows certain practices to manage market risk.
Contracts for the purchase of goods from offshore suppliers are
negotiated in U.S. dollars, which tends to minimize the potential
for short-term loss due to adverse changes in foreign currency
exchange rates. The Company invests excess funds in U.S. government
securities with maturities of 30 days or less, minimizing the effect
of short-term interest rate changes on investments. The Company's
products are made chiefly of cotton, the price of which is effected
by world-wide commodity futures markets. The Company negotiates
fabric purchases for twelve-month intervals which minimize the
effect of short-term fluctuations in the price of cotton.
14
<PAGE>
PREMIUMWEAR, INC.
PART II: OTHER INFORMATION
Item 5: Other Information
Bank Line of Credit
-------------------
On July 31, 1999, the Company renewed its bank line of credit
with U.S. Bank National Association. The line makes available
up to $6,000,000 for borrowings and letters of credit through
February 3, 2002.
New York Stock Exchange Listing
-------------------------------
The Company is below the New York Stock Exchange's new listing
criteria for total market capitalization and stockholders'
equity of at least $50 million. The Company has been notified
by the New York Stock Exchange that trading of its common
stock will be suspended prior to the opening on December 15,
1999. Management has entered into discussions with Nasdaq to
be listed on its National Market System and expects to
complete this process by December 15, 1999.
Item 6: Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit 27: Financial Data Schedule
(b) No reports on Form 8-K were filed during the period.
* * * * *
15
<PAGE>
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.
PremiumWear, Inc.
-----------------------------------------
(Registrant)
Date: November 12, 1999 /s/David E. Berg
------------------ -----------------------------------------
David E. Berg
President & CEO
/s/James S. Bury
-----------------------------------------
James S. Bury
Vice President of Finance
Principal Accounting Officer
16
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JAN-01-2000
<PERIOD-END> OCT-02-1999
<CASH> 902
<SECURITIES> 0
<RECEIVABLES> 8,682
<ALLOWANCES> 495
<INVENTORY> 7,877
<CURRENT-ASSETS> 19,369
<PP&E> 7,165
<DEPRECIATION> 4,935
<TOTAL-ASSETS> 25,452
<CURRENT-LIABILITIES> 5,550
<BONDS> 0
0
0
<COMMON> 26
<OTHER-SE> 19,181
<TOTAL-LIABILITY-AND-EQUITY> 25,452
<SALES> 11,496
<TOTAL-REVENUES> 11,859
<CGS> 7,983
<TOTAL-COSTS> 7,983
<OTHER-EXPENSES> 3,004
<LOSS-PROVISION> 25
<INTEREST-EXPENSE> 10
<INCOME-PRETAX> 837
<INCOME-TAX> 331
<INCOME-CONTINUING> 506
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 506
<EPS-BASIC> 0.20
<EPS-DILUTED> 0.20
</TABLE>
