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<PAGE>
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): November 14, 1997
NCC INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
0-3305 62-0643336
(Commission File Number) (I.R.S. Employer Identification No.)
165 Main Street, Cortland, New York 13045-5428
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (607) 756-2841
Not Applicable
(Former name or former address if changed since last report)
<PAGE>
Item 5. Other Events.
On July 22, 1997, Registrant, along with its 92.8% parent company,
Maidenform, Inc. ("Maidenform") and Maidenform's 100% parent company,
Maidenform Worldwide, Inc. (collectively, with Maidenform and the Registrant,
the "Debtor Group"), filed voluntary petitions for bankruptcy under Chapter
11 of the Federal Bankruptcy Code in the United States District Court for the
Southern District of New York (the "Court").
Pursuant to a no action letter request dated November 12, 1997 (the "Request
Letter"), the Registrant is seeking agreement from the Securities and
Exchange Commission (the "Commission") Office of Chief Counsel, Division of
Corporate Finance (the "Division") that the Division will not recommend
enforcement action to the Commission if the Registrant follows the reporting
procedures set forth in the Request Letter during the pendency of
Registrant's Chapter 11 bankruptcy case.
Pursuant to the Request Letter, the Registrant proposes to file with the
Commission under cover of Current Reports on Form 8-K copies of the Debtor
Group's consolidated monthly financial reports filed with the Court and the
United States Trustee (the "Trustee") in accordance with Bankruptcy Rule 2015
and the Trustee's "Operating Guidelines and Financial Reporting requirements"
(the "Trustee's Reports") in lieu of quarterly and annual reports under
Section 13(a) of the Exchange Act.
Accordingly, attached to this Current Report are copies of the Trustee's
Reports for the Debtor Group covering (1) the month of September and the
fiscal quarter ended September 30, 1997, which was filed with the Court and
the Trustee on November 14, 1997; (2) the month of July 1997, which was
filed with the Court and the Trustee on August 29, 1997; and (3) the month
of August 1997, which was filed with the Court and the Trustee on September
26, 1997.
Item 7. Financial Statements and Exhibits.
(c) Exhibits
99.1 Trustee's Reports for the Debtor Group covering (1) the month of
September and the fiscal quarter ended September 30, 1997, which
was filed with the Court and the Trustee on November 14, 1997;
(2) the month of July 1997, which was filed with the Court and
the Trustee on August 29, 1997; and (3) the month of August
1997, which was filed with the Court and the Trustee on
September 26, 1997.
2
<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.
NCC INDUSTRIES, INC.
Dated: November 25, 1997 By: /s/ Frank Stull
--------------------
Frank Stull
Duly authorized officer to execute
on behalf of Registrant
Executive Vice President
Chief Financial Officer
<PAGE>
Exhibit 99.1
MAIDENFORM WORLDWIDE, INC. AND SUBSIDIARIES
JULY FINANCIAL REPORTING PACKAGE
<PAGE>
July 1997 Financial Reporting Package
Contents
Schedule Page
- -------- ----
July 1997 Month
- Income Statement 1
- Balance Sheet 2
- Cash Flow Statement 3
Second Half to Date, 1997
- Income Statement 4
- Cash Flow Statement 5
<PAGE>
MAIDENFORM WORLDWIDE, INC. AND SUBSIDIARIES
JULY 1997 MONTH INCOME STATEMENT
(in thousands)
<TABLE>
<CAPTION>
Variance
JULY 7/21 to Budget
1997 Forecast Fav/(Unfav)
-------- ------- -----------
<S> <C> <C> <C> <C>
Net sales $18,391 $16,110 $ 2,281 Resulting from increase in wholesale business.
Cost of sales 13,326 12,888 (438)
------- ------- -------
Gross profit 5,065 3,222 1,843 Resulting from increase in volume of 500k
and Retail mix of 1.2mm (absence of 50% off
% 27.5% 20.0% sale).
Operating expenses
Design 391 354 (37) Timing.
G&A 1,386 1,184 (202) Increase in professinal fees, Arnold and
Porter 93k and L, A'ledeschi 147k.
Advertising 688 833 145 Timing.
Selling 3,455 3,253 (202) Timing.
Distribution 1,051 1,227 176 Favorable spending.
Other expense (income) 36 -- (36)
------- ------- -------
Total 7,007 6,851 (156)
------- ------- -------
Loss before
interest and taxes (EBIT) (1,942) (3,629) 1,687
Interest (1,566) (2,088) 522 Lower borrowing levels.
Financing Fees (1,000) (1,000) --
Reorganization cost (1,397) (2,000) 603 Timing and level of run rate of bankruptcy
professional fees.
Other 140 136 4
------- ------- -------
Pretax loss (5,765) (8,581) 2,816
Taxes 52 37 (15)
------- ------- -------
NET LOSS $(5,817) $(8,618) $2,801
======= ======= =======
EBIT (1,942)
Depreciation 565
-------
EBITDAR $(1,377)
=======
Per covenant $(5,000)
=======
</TABLE>
1
<PAGE>
MAIDENFORM WORLDWIDE, INC. AND SUBSIDIARIES
BALANCE SHEETS FOR THE PERIODS INDICATED
(in thousands)
JULY 1997
-------------------------
7/21/97
ACTUAL FORECAST
---------- -----------
ASSETS
Current assets
Cash $ 7,033 $ 2,500
Accounts receivable 20,110 22,000
Inventories 82,457 85,228
Other current assets 9,564 11,058
-------- ---------
Total current assets 119,164 120,786
Property, plant & equipment, net 43,096 52,476
Other assets 50,327 50,552
-------- ---------
TOTAL ASSETS $212,587 $ 223,814
======== =========
LIABILITIES
Current liabilities
Subordinated note payable 2,539 2,539
Accounts payable 19,874 21,000
Accrued expenses 25,637 25,662
1997 Restructuring reserve 20,096 29,855
Note payable - bank 29,692 29,692
Note payable - insurance 26,345 26,345
Current portion - capital lease 490 563
Current portion - long term debt 1,916 1,916
Revolver 138,797 143,736
-------- ---------
Total current liabilities 265,386 281,308
Other liabilities 16,075 16,439
-------- ---------
TOTAL LIABILITIES 281,461 297,747
-------- ---------
EQUITY
Stock 5 5
Paid in capital 40,899 40,899
Retained earnings (deficit) (18,848) (18,848)
Year to date income (loss) (88,853) (93,912)
Minimum pension liability adj. (2,077) (2,077)
-------- ---------
TOTAL EQUITY (DEFICIT) (68,874) (73,933)
-------- ---------
TOTAL LIABILITIES AND EQUITY $212,587 $ 223,814
======== =========
2
<PAGE>
MAIDENFORM WORLDWIDE, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIOD INDICATED
(In Thousands)
JULY
1997
----
OPERATING ACTIVITIES
Net loss $(5,817)
Adjustments to reconcile net loss to net cash provided by
operating activities:
Depreciation and amortization 662
Pension expense 116
Minority interest in loss of subsidiary (356)
Payments made from unfunded retirement plan (71)
Provision for restructuring 16
Provisions for accounts receivable allowances (701)
Changes in operating assets and liabilities:
Decrease in accounts receivable 3,288
Decrease in inventories 2,571
Increase in prepaid expenses and other assets (765)
Increase in accounts payable, accrued expenses, taxes
and sundry liabilities 2,630
-------
Net cash provided by operating activities 1,573
-------
INVESTING ACTIVITIES
Additions to property, plant and equipment (26)
-------
Net cash used in investing activities (26)
-------
FINANCING ACTIVITIES
Net borrowings under revolving credit loans 1,491
Payments of other debt (155)
-------
Net cash used in financing activities 1,336
-------
Increase in cash $ 2,883
Cash at beginning of period 4,150
-------
Cash at end of period $ 7,033
-------
3
<PAGE>
MAIDENFORM WORLDWIDE, INC. AND SUBSIDIARIES
SECOND HALF TO DATE, 1997
(in thousands)
VARIANCE
JULY 7/21 TO BUDGET
1997 FORECAST FAV/(UNFAV)
-------- -------- -----------
Net sales $18,391 $16,110 $ 2,281
Cost of sales 13,326 12,888 (438)
-------- -------- -----------
Gross profit 5,065 3,222 1,843
% 27.5% 20.0%
Operating expenses
Design 391 354 (37)
G&A 1,386 1,184 (202)
Advertising 688 833 145
Selling 3,455 3,253 (202)
Distribution 1,051 1,227 176
Other expense (income) 36 -- (36)
-------- -------- -----------
Total 7,007 6,851 (156)
-------- -------- -----------
Loss before
interest and taxes (EBIT) (1,942) (3,629) 1,687
Interest (1,566) (2,088) 522
Financing Fees (1,000) (1,000) --
Reorganization cost (1,397) (2,000) 603
Other 140 136 4
-------- -------- -----------
Pretax loss (5,765) (8,581) 2,816
Taxes 52 37 (15)
-------- -------- -----------
NET LOSS $(5,817) $(8,618) $2,801
======== ======== ===========
4
<PAGE>
MAIDENFORM WORLDWIDE, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
SECOND HALF TO DATE, 1997
(IN THOUSANDS)
JULY
1997
----
OPERATING ACTIVITIES
Net loss $(5,817)
Adjustments to reconcile net loss to net cash provided by
operating activities:
Depreciation and amortization 662
Pension expense 116
Minority interest in loss of subsidiary (356)
Payments made from unfunded retirement plan (71)
Provision for restructuring 16
Provisions for accounts receivable allowances (701)
Changes in operating assets and liabilities:
Decrease in accounts receivable 3,288
Decrease in inventories 2,571
Increase in prepaid expenses and other assets (765)
Increase in accounts payable, accrued expenses, taxes
and sundry liabilities 2,630
-------
Net cash provided by operating activities 1,573
-------
INVESTING ACTIVITIES
Additions to property, plant and equipment (26)
-------
Net cash used in investing activities (26)
-------
FINANCING ACTIVITIES
Net borrowings under revolving credit loans 1,491
Payments of other debt (155)
-------
Net cash used in financing activities 1,336
-------
Increase in cash $ 2,883
Cash at beginning of period 4,150
-------
Cash at end of period $ 7,033
-------
5
<PAGE>
MAIDENFORM WORLDWIDE, INC. AND SUBSIDIARIES
AUGUST FINANCIAL REPORTING PACKAGE
<PAGE>
AUGUST 1997 FINANCIAL REPORTING PACKAGE
CONTENTS
Schedule Page
- -------- ----
August 1997 Month
- Income Statement 1
- Balance Sheet 2
- Cash Flow Statement 3
Second Half to Date, 1997
- Income Statement 4
- Cash Flow Statement 5
<PAGE>
MAIDENFORM WORLDWIDE, INC. AND SUBSIDIARIES
AUGUST 1997 MONTH INCOME STATEMENT
(in thousands)
<TABLE>
<CAPTION>
VARIANCE
7/21 TO FORECAST
ACTUAL FORECAST FAV/(UNFAV)
-------- -------- -----------
<S> <C> <C> <C>
Net sales $17,931 $19,051 $(1,120) Softness in the Flexees and Lilyette division
Cost of sales 14,152 15,241 1,089
-------- -------- -----------
Gross profit 3,779 3,810 (31) Better than forecast. Decline versus prior month
performance primarily due to wholesale product
mix and lower production levels.
% 21.1% 20.0%
Operating expenses
Design 303 328 25
G&A 817 1,158 341 Timing of MIS consulting fees.
Advertising 858 833 (25)
Selling 3,032 3,253 221 Timing.
Distribution 951 1,216 265 Volume related.
-------- -------- -----------
Total 5,961 6,788 827
-------- -------- -----------
Loss before
interest and taxes (EBIT) (2,182) (2,978) 796
Interest (325) (424) 99
Interest - Pre Petition -- (1,665) 1,665
Reorganization cost (723) (1,021) 298 Timing of professional fees.
Other (119) (108) (11)
-------- -------- -----------
Pretax loss (3,349) (6,196) 2,847
Taxes (32) 37 69
-------- -------- -----------
NET LOSS $(3,317) $(6,233) $2,916
======== ======== ===========
</TABLE>
1
<PAGE>
MAIDENFORM WORLDWIDE, INC. AND SUBSIDIARIES
BALANCE SHEETS FOR THE PERIODS INDICATED
(in thousands)
<TABLE>
AUGUST 1997
-------------------------------
7/21/97
ACTUAL Forecast
---------- --------
<S> <C> <C>
ASSETS
Current assets
Cash $ 10,354 $ 2,500
Accounts receivable 21,953 22,000
Inventories 78,334 85,360
Other current assets 9,736 11,058
-------- ---------
Total current assets 120,377 120,918
Property, plant & equipment, net 42,587 41,956
Other assets 49,945 50,414
-------- ---------
TOTAL ASSETS $212,909 213,288
======== =========
LIABILITIES
Current liabilities
Liabilites Not Subject to Compromise
Current Liabilities:
Accounts payable 3,428 -
Accrued expenses 17,185 17,214
1997 Restructuring reserve 19,808 19,856
Revolver - 9,362
-------- ---------
Total current liabilities 40,421 46,432
Liabilites Subject to Compromise 242,249 244,192
Other Liabilities 2,430 2,829
-------- ---------
TOTAL LIABILITIES 285,100 293,453
-------- ---------
EQUITY
Stock 5 5
Paid in capital 40,899 40,899
Retained earnings (deficit) (18,848) (18,848)
Year to date income (loss) (92,170) (100,144)
Minimum pension liability adj. (2,077) (2,077)
-------- ---------
TOTAL EQUITY (DEFICIT) (72,191) (80,165)
-------- ---------
TOTAL LIABILITIES AND EQUITY $212,909 $ 213,288
======== =========
</TABLE>
2
<PAGE>
Maidenform Worldwide, Inc. & Subsidiaries
August 1997 Month Statement of Cash Flows
(In Thousands)
--------------
<TABLE>
<CAPTION>
7/21
Actual Forecast
-------- --------
<S> <C> <C>
OPERATING ACTIVITIES
Net loss $(3,317) $(6,233)
Adjustments to reconcile net loss to net cash provided by
(used in) operating activities:
Depreciation and amortization 643 697
Pension expense 42 41
Minority interest in loss of subsidiary (19) (30)
Provision for restructuring - -
Provisions for accounts receivable allowances 165 -
Changes in operating assets and liabilities:
Decrease in accounts receivable (2,008) -
Decrease (increase) in inventories 4,123 (132)
Decrease in prepaid expenses and other assets 72 -
Increase in accounts payable, accrued expenses, taxes
and sundry liabilities 3,702 1,275
------- -------
Net cash provided by (used in) operating activities 3,403 (4,382)
------- -------
INVESTING ACTIVITIES
Additions to property, plant and equipment (37) -
------- -------
Net cash used in investing activities (37) -
------- -------
FINANCING ACTIVITIES
Net Borrowings under revolving credit loans - 4,426
Payments of other debt (45) (44)
------- -------
Net cash (used in) provided by financing activities $ (45) $ 4,382
------- -------
Increase in cash $ 3,321 $ -
Cash at beginning of period 7,033 2,500
------- -------
Cash at end of period $10,354 $ 2,500
------- -------
------- -------
</TABLE>
3
<PAGE>
MAIDENFORM WORLDWIDE, INC. AND SUBSIDIARIES
SECOND HALF TO DATE, 1997 INCOME STATEMENT
(in thousands)
<TABLE>
<CAPTION>
VARIANCE
7/21 TO FORECAST
ACTUAL FORECAST FAV/(UNFAV)
-------- --------- -------------
<S> <C> <C> <C>
Net sales $36,322 $ 35,161 $1,161
Cost of sales 27,478 28,129 651
------- --------- -------------
Gross profit 8,844 7,032 1,812
% 24.3% 20.0%
Operating expenses
Design 694 682 (12)
G&A 2,239 2,342 103
Advertising 1,546 1,666 120
Selling 6,487 6,506 19
Distribution 2,002 2,443 441
------- --------- -------------
Total 12,968 13,639 671
------- --------- -------------
Loss before
interest and taxes (EBIT) (4,124) (6,607) 2,483
Interest (1,891) (1,697) (194)
Interest - Pre Petition - (2,480) 2,480
Financing Fees (1,000) (1,000) -
Reorganization cost (2,120) (3,021) 901
Other 21 28 (7)
------- --------- -------------
Pretax loss (9,114) (14,777) 5,663
Taxes 20 74 54
------- --------- -------------
NET LOSS $(9,134) $(14,851) $ 5,717
------- --------- -------------
------- --------- -------------
EBIT (4,124)
Depreciation 1,111
-------
EBITDAR $(3,013)
=======
Per covenant $(7,900)
=======
</TABLE>
4
<PAGE>
MAIDENFORM WORLDWIDE, INC. & SUBSIDIARIES
SECOND HALF TO DATE, 1997 STATEMENT OF CASH FLOWS
(In Thousands)
--------------
7/21
ACTUAL FORECAST
------ --------
OPERATING ACTIVITIES
Net loss $(9,134) $(14,851)
Adjustments to reconcile net loss to net cash provided by
(used in) operating activities:
Depreciation and amortization 1,305 1,394
Pension expense 158 82
Minority interest in loss of subsidiary (375) (60)
Payments made from unfunded retirement plan (71) --
Provision for restructuring 16 --
Provisions for accounts receivable allowances (536) --
Changes in operating assets and liabilities:
Decrease in accounts receivable 1,280 750
Decrease (Increase) in inventories 6,694 (555)
Increase in prepaid expenses and other assets (693) --
Increase in accounts payable, accrued expenses, taxes
and sundry liabilities 6,332 2,485
------- --------
Net cash provided by (used in) operating activities 4,976 (10,755)
------- --------
INVESTING ACTIVITIES
Additions to property, plant and equipment (63) --
------- --------
Net cash used in investing activities (63) --
------- --------
FINANCING ACTIVITIES
Net borrowings under revolving credit loans 1,491 10,843
Payments of other debt (200) (88)
------- --------
Net cash provided by financing activities $ 1,291 $ 10,755
------- --------
Increase in cash $ 6,204 $ --
Cash at beginning of period 4,150 2,500
------- --------
Cash at end of period $10,354 $ 2,500
------- --------
5
<PAGE>
MAIDENFORM WORLDWIDE, INC. AND SUBSIDIARIES
SEPTEMBER FINANCIAL REPORTING PACKAGE
<PAGE>
FOR USE BY THE OFFICE OF THE U.S TRUSTEE
SEPTEMBER 1997 FINANCIAL REPORTING PACKAGE
CONTENTS
Schedule Page
- -------- ----
September 1997 Month
- Income Statement 1
- Balance Sheet 2
- Cash Flow Statement 3
Second Half to Date, 1997
- Income Statement 4
- Cash Flow Statement 5
FOR USE BY THE OFFICE OF THE U.S TRUSTEE
<PAGE>
MAIDENFORM WORLDWIDE, INC. AND SUBSIDIARIES
SEPTEMBER 1997 MONTH INCOME STATEMENT
(in thousands)
ACTUAL
--------
Net sales $23,310
Cost of sales 18,083
-------
Gross profit 5,227
% 22.4%
Operating expenses
Design 370
G&A 1,558
Advertising 955
Selling 3,387
Distribution 1,182
-------
Total 7,452
-------
Loss before
interest and taxes (EBIT) (2,225)
Interest (265)
Interest - Pre Petition -
Reorganization cost (250)
Other (134)
-------
Pretax loss (2,874)
Taxes 23
-------
NET LOSS $(2,897)
=======
1
<PAGE>
MAIDENFORM WORLDWIDE, INC. AND SUBSIDIARIES
BALANCE SHEETS FOR THE PERIODS INDICATED
(in thousands)
September 1997
----------------
ACTUAL
----------
ASSETS
Current assets
Cash $ 7,167
Accounts receivable 26,133
Inventories 77,068
Other current assets 9,775
--------
Total current assets 120,143
Property, plant & equipment, net 42,019
Other assets 49,790
--------
TOTAL ASSETS $211,952
========
LIABILITIES
Current liabilities
Liabilites Not Subject to Compromise
Current Liabilities:
Accounts payable 3,299
Accrued expenses 18,765
1997 Restructuring reserve 19,710
Revolver -
--------
Total current liabilities 41,774
Liabilites Subject to Compromise 242,840
Other Liabilities 2,426
--------
TOTAL LIABILITIES 287,040
--------
EQUITY
Stock 5
Paid in capital 40,899
Retained earnings (deficit) (18,848)
Year to date income (loss) (95,067)
Minimum pension liability adj. (2,077)
--------
TOTAL EQUITY (DEFICIT) (75,088)
--------
TOTAL LIABILITIES AND EQUITY $211,952
========
2
<PAGE>
MAIDENFORM WORLDWIDE, INC. & SUBSIDIARIES
SEPTEMBER 1997 MONTH STATEMENT OF CASH FLOWS
(In Thousands)
Actual
------
OPERATING ACTIVITIES
Net loss $(2,897)
Adjustments to reconcile net loss to net cash
(used in) operating activities:
Depreciation and amortization 664
Pension expense 42
Minority interest in loss of subsidiary (4)
Provisions for accounts receivable allowances 572
Changes in operating assets and liabilities:
Increase in accounts receivable (4,752)
Decrease (increase) in inventories 1,266
Increase in prepaid expenses and other assets (22)
Increase in accounts payable, accrued expenses, taxes
and sundry liabilities 1,991
-------
Net cash used in operating activities (3,140)
-------
INVESTING ACTIVITIES
Additions to property, plant and equipment -
-------
Net cash used in investing activities -
-------
FINANCING ACTIVITIES
Net Borrowings under revolving credit loans -
Payments of other debt $ (47)
-------
Net cash (used in) provided by financing activities (47)
-------
Decrease in cash $(3,187)
Cash at beginning of period 10,354
-------
Cash at end of period $ 7,167
-------
3
<PAGE>
MAIDENFORM WORLDWIDE, INC. AND SUBSIDIARIES
SECOND HALF TO DATE, 1997 INCOME STATEMENT
(in thousands)
ACTUAL
---------
Net sales $ 59,632
Cost of sales 45,561
--------
Gross profit 14,071
% 23.6%
Operating expenses
Design 1,064
G&A 3,797
Advertising 2,501
Selling 9,874
Distribution 3,184
--------
Total 20,420
--------
Loss before
interest and taxes (EBIT) (6,349)
Interest (2,156)
Interest - Pre Petition -
Financing Fees (1,000)
Reorganization cost (2,370)
Other (113)
--------
Pretax loss (11,988)
Taxes 43
--------
NET LOSS $(12,031)
========
EBIT (6,349)
Depreciation 1,659
--------
EBITDAR $ (4,690)
========
Per covenant $(11,200)
========
4
<PAGE>
MAIDENFORM WORLDWIDE, INC. & SUBSIDIARIES
SECOND HALF TO DATE, 1997 STATEMENT OF CASH FLOWS
(In Thousands)
JULY - SEPTEMBER 1997
ACTUAL
------
OPERATING ACTIVITIES
Net loss $(12,031)
Adjustments to reconcile net loss to net cash
(used in) operating activities:
Depreciation and amortization 1,969
Pension expense 200
Minority interest in loss of subsidiary (379)
Payments made from unfunded retirement plan (71)
Provision for restructuring 16
Provisions for accounts receivable allowances 36
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable (3,472)
Decrease (Increase) in inventories 7,960
Increase in prepaid expenses and other assets (715)
Increase in accounts payable, accrued expenses, taxes
and sundry liabilities 8,323
-------
Net cash provided by (used in) operating activities 1,836
-------
INVESTING ACTIVITIES
Additions to property, plant and equipment (63)
-------
Net cash used in investing activities (63)
-------
FINANCING ACTIVITIES
Net borrowings under revolving credit loans 1,491
Payments of other debt (247)
-------
Net cash provided by financing activities $ 1,244
-------
Increase in cash $ 3,017
Cash at beginning of period 4,150
-------
Cash at end of period $ 7,167
-------
5
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