SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report: November 8, 2000
NS GROUP, INC.
(Exact name of registrant as specified in its charter)
Kentucky 1-9838 61-0985936
(State or other (Commission file (I.R.S. Employer
jurisdiction of number) identification number)
incorporation)
530 West Ninth Street, Newport, Kentucky 41071
(Address of principal executive offices)
Registrant's telephone number, including area code:
(859) 292-6809
ITEM: 9 Regulation FD Disclosure
On November 8, 2000, NS Group, Inc. issued a news release
entitled:
NS GROUP ANNOUNCES FISCAL 2000 FOURTH QUARTER AND YEAR-END
FINANCIAL RESULTS
FOR IMMEDIATE RELEASE - November 8, 2000
CONTACT: Linda A. Pleiman
Director of Investor Relations and Corporate
Communications
NS GROUP, INC.
(859) 292-6809
www.nsgrouponline.com
NS GROUP ANNOUNCES FISCAL 2000 FOURTH QUARTER
AND YEAR-END FINANCIAL RESULTS
(Newport, Kentucky - November 8, 2000) Newport, Kentucky-based NS
Group announced today the results for its fourth quarter and
fiscal year ending September 30, 2000. Fourth quarter net sales
were $94.7 million compared to $95.7 million in the third quarter
of fiscal 2000. The company reported operating income of $3.5
million in the fourth quarter of fiscal 2000 compared to an
operating loss of $4.3 million in the third quarter of fiscal
2000. Income from continuing operations was $2.2 million, or
$0.10 per diluted share for the fourth quarter of fiscal 2000
compared to a loss from continuing operations of $4.6 million, or
a loss of $0.21 per diluted share, in the third quarter of fiscal
2000. Earnings before extraordinary items, net interest expense,
taxes, depreciation and amortization (EBITDA) were $9.4 million
in the fourth quarter of fiscal 2000 compared to $3.8 million in
the third quarter of fiscal 2000.
Net sales for the fiscal year ended September 30, 2000 were
$355.1 million, compared to $198.9 million in fiscal 1999. The
company incurred an operating loss of $18.6 million in fiscal
2000, compared to an operating loss of $49.3 million in fiscal
1999. The company reported a loss from continuing operations of
$24.0 million, or a $1.11 loss per diluted share, compared to a
loss from continuing operations of $46.8 million, or a $2.14 loss
per diluted share, in the prior year. EBITDA was $8.0 million
compared to a negative $21.5 million in fiscal 1999.
President and Chief Executive Officer, Rene J. Robichaud, stated,
"Our fiscal 2000 fourth quarter financial results were in line
with expectations and substantially improved in comparison to the
third quarter." Mr. Robichaud went on to say, "Natural gas and
oil prices remained high and the average rig count improved
steadily throughout the quarter. As a result, our fourth quarter
shipments and net sales for oil country tubular goods (OCTG) were
strong and we were able to achieve further price increases over
the third quarter. These factors, combined with a higher margin
product mix, resulted in positive net income for the quarter.
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"The marketplace for our special bar quality (SBQ) products
remained extremely competitive during the fourth quarter. Steel
service center inventories were higher than needed and demand for
SBQ products was soft. As a result, fourth quarter shipments of
our SBQ products decreased 30% in comparison to the third
quarter," he said.
Robichaud continued, "Overall, we are pleased to end the year
with a positive quarter and, more importantly, to enter what we
believe to be a strong energy market for the next several years.
As previously announced, our fiscal 2001 first quarter shipments
will decline from September quarter levels as a result of an
increase in imports and higher inventory levels of carbon grade
OCTG products in the marketplace. Specifically affected will be
our welded OCTG shipments, which are expected to decline
approximately 40% from September quarter levels. However, we see
this as a short-term inventory correction and expect fiscal 2001
to be a profitable year for the company."
"Natural gas and oil prices, the drivers of the energy sector,
are expected to remain robust and keep the average U.S. active
rig count at high levels. International rig count is
steadily rising and will lend a hand in providing relief from
imports. In addition, line pipe and workover/completion rig
activity are expected to increase substantially in the coming
year. We expect to see a significant increase in consumption for
energy tubulars. Pricing for our OCTG products is likely to stay
firm in 2001."
"The SBQ segment of our business is expected to be soft in 2001
due to high steel service center inventories and a slow-down in
truck and automotive production," he added.
Robichaud concluded, "Considering the above factors, we expect
December 2000 quarterly results to be in the range of a $0.35 to
$0.40 loss per diluted share, excluding the gain on the sale of
our adhesives business. Based on our view of the marketplace for
2001, we believe earnings for the full fiscal year 2001 will be
in the area of $0.40 per diluted share, excluding the gain on the
sale of our adhesives business."
NS Group is scheduled to host a conference call and simultaneous
webcast to review fiscal 2000 fourth quarter and year end results
as well as fiscal 2001 on Thursday, November 9, 2000 at 10:00
a.m. Eastern Time. Details concerning the conference call and
webcast are available on the company's web site,
www.nsgrouponline.com, under the Investor Relations section.
NS Group, Inc. is a leading producer of tubular products serving
the energy industry and certain industrial markets. The Company
manufactures seamless and welded tubular steel products which are
used in the drilling and exploration as well as the transmission
of oil and natural gas. NS Group's industrial products include
special bar quality (SBQ) products used in critical weight
bearing applications. NS Group is traded on the NYSE under the
symbol: NSS. To learn more about NS Group log on to
www.nsgrouponline.com.
##################
This report contains forward-looking information with respect to
the company's operations and beliefs. Actual results may differ
from these forward-looking statements due to numerous factors,
including those discussed in the company's filings with the
Securities and Exchange Commission.
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NS GROUP, INC.
Summarized Financial Data
(Unaudited)
(In thousands, except per share amounts, tons shipped,
selling price and rig count)
Three Months Ended Fiscal Year Ended
September July September September September
30, 2000 1, 2000 25, 1999 30, 2000 25, 1999
Net sales $ 94,701 $ 95,689 $ 61,519 $ 355,086 $ 198,879
Operating income
(loss) 3,527 (4,324) (10,466) (18,566) (49,307)
Income (loss) from
continuing
operations 2,165 (4,577) (11,085) (24,048) (46,766)
Net income (loss) 2,383 (4,117) (10,932) (22,899) (49,390)
Per diluted share:
Income (loss)
from continuing
operations $0.10 ($0.21) ($0.52) ($1.11) ($2.14)
Net income (loss) $0.11 ($0.19) ($0.51) ($1.06) ($2.26)
Weighted average
shares outstanding
(diluted): 22,782 21,632 21,435 21,651 21,852
EBITDA (1) $ 9,378 $ 3,778 $ (3,980) $ 8,049 $ (21,513)
Product shipments
(tons):
Energy products
Welded - 102,300 110,900 90,900 420,200 252,500
Seamless- 42,400 41,700 19,700 153,900 64,500
144,700 152,600 110,600 574,100 317,000
Industrial products
SBQ - 23,600 33,900 32,700 136,200 130,500
Total shipments 168,300 186,500 143,300 710,300 447,500
Average selling price:
Energy products
Welded - $482 $440 $369 $430 $382
Seamless - $829 $780 $732 $763 $740
Industrial products
SBQ - $419 $415 $407 $410 $419
Average U.S. rotary
rig coung 985 848 641 844 602
Note: Reported amounts reflect the classification of the company's
adhesives segment as discontinued operations as a result of the sale of
this segment in October 2000.
(1) Represents earnings (loss) before net interest expense,
taxes, depreciation and amortization and is calculated as income (loss)
before extraordinary items plus net interest expense, taxes, depreciation
and amortization.
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.
NS GROUP, INC.
Date: November 8, 2000 By: /s/Thomas J. Depenbrock
Thomas J. Depenbrock
Vice President, Treasurer and
Chief Financial Officer
