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: January 19, 2001
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 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 January 18, 2001, NS Group, Inc. issued a news release
entitled: NS GROUP ANNOUNCES RESULTS FOR DECEMBER 2000 QUARTER
FOR IMMEDIATE RELEASE - January 18, 2001
CONTACT: Linda A. Pleiman
Director of Investor Relations and Corporate
Communications
NS GROUP, INC.
(859) 292-6809
www.nsgrouponline.com
NS GROUP ANNOUNCES RESULTS FOR DECEMBER 2000 QUARTER
(Newport, Kentucky - January 18, 2001) Newport, Kentucky-based NS
Group announced today the results for the quarter ended December
31, 2000. December quarter net sales were $73.4 million compared
to $95.7 million in the September quarter of 2000. The company
incurred a loss from continuing operations before income taxes
and extraordinary items of $6.5 million, or a $0.31 loss per
diluted share for the December quarter of 2000. On an after-tax
basis, the loss from continuing operations was $4.1 million, or a
$0.19 loss per diluted share for the December quarter of 2000
compared to income from continuing operations of $2.1 million, or
$0.10 per diluted share, in the September quarter of 2000.
The company recorded a gain of approximately $10.9 million, or
$0.51 per diluted share, related to the sale of Imperial
Adhesives. The gain, sales, costs and expenses of Imperial
Adhesives are classified as income from discontinued operations.
During the December 2000 quarter the company recorded
extraordinary items totaling $0.9 million, net of income taxes of
$0.2 million, or $0.04 per diluted share in connection with the
favorable resolution of an environmental contingency previously
provided for as an extraordinary charge and the early retirement
of long-term debt.
The company reported net income of $7.8 million, or $0.36 per
diluted share, for the December 2000 quarter compared to net
income of $2.4 million, or $0.11 per diluted share, in the
September 2000 quarter. Earnings from continuing operations
before extraordinary items, net interest expense, taxes,
depreciation and amortization (EBITDA) were $0.6 million in the
December 2000 quarter compared to $9.4 million in the September
2000 quarter.
The company previously announced that it will change its fiscal
year end from the last Saturday in September to December 31. The
period ended December 31, 2000 is a transition reporting period.
The company's next full fiscal year will be for the calendar year
ended December 31, 2001.
- more -
President and Chief Executive Officer, Rene J. Robichaud, stated,
"As expected, the financial results for the December 2000 quarter
were disappointing as shipments of our energy products declined
29 percent from the September quarter. The decline resulted
primarily from a focus by distributors on slowing the growth in
inventories of welded carbon grade OCTG products. In addition,
the marketplace continued to be plagued by surging imports.
Shipments of our seamless and welded alloy OCTG products,
however, remained healthy in the December quarter. Our special
bar quality (SBQ) products shipments declined 40 percent from the
September 2000 quarter as demand continued to be soft and service
center inventories remained high."
Robichaud said the company anticipates a significant increase in
consumption for energy tubulars and is encouraged by several
positive industry factors including;
U.S. drilling rig count is projected to average 1,200 rigs
in 2001;
International drilling rig count is expected to increase 15
to 20 percent;
Canadian drilling is near full capacity;
Workover rigs are expected to increase;
Import market share is expected to moderate;
Significant increase is expected in line pipe consumption.
Robichaud added, "We're taking advantage of the low market prices
for steel coil by increasing our purchases of outside coils to
lower our costs. However, we anticipate an increase in natural
gas costs.
We expect the SBQ segment of our business to continue to be
difficult in 2001. We are focused on more cost reductions for
SBQ."
Robichaud concluded, "Going forward, we expect sequential
improvements in our quarterly results for 2001. Based on an
expected 20 percent increase in welded OCTG shipments and a 5
percent increase in seamless shipments, we believe the March 2001
quarterly results will be in the range of a $0.20 to $0.25 loss
per diluted share. Current customer feedback and significantly
increased order activity suggest that our total energy product
shipments for 2001 will be near the record shipment level of
fiscal 1997. We expect earnings for the June quarter to be in
the range of $0.20 to $0.25 per diluted share and for the full
year 2001 to be in the area of $0.65."
NS Group is scheduled to host a conference call and simultaneous
webcast to review the results for the December 2000 quarter on
Friday, January 19, 2001 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.
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.
- more -
NS Group, Inc.
Summarized Financial Data
(In thousands, except per share amounts, tons shipped,
selling price and rig count)
(Unaudited)
Three Months Ended
December September January
31, 2000 30, 2000 1, 2000
Net sales $73,357 $95,697 $76,076
Operating income (loss) (4,960) 3,527 (11,602)
Income (loss) from continuing
operations before income taxes
and extraordinary items (6,539) 2,076 (13,190)
Provision (benefit)for income taxes (2,474) (89) (91)
Income (loss) from continuing
operations before extraordinary
items (4,065) 2,165 (13,099)
Income from discontinued operations,
net of taxes 10,955 218 165
Income (loss) before extraordinary
items 6,890 2,383 (12,934)
Extraordinary items, net of taxes 900 - -
Net income (loss) 7,790 2,383 (12,934)
Per common share - basic:
Income (loss) from continuing
operations ($0.19) $0.10 ($0.61)
Income from discontinued
operations, net of taxes 0.52 0.01 0.01
Extraordinary items, net of taxes 0.04 - -
Net income (loss) $0.37 $0.11 ($0.60)
Per common share - diluted:
Income (loss) from continuing
operations ($0.19) $0.10 ($0.61)
Income from discontinued
operations, net of taxes 0.51 0.01 0.01
Extraordinary items, net of taxes 0.04 - -
Net income (loss) $0.36 $0.11 ($0.60)
Weighted average shares outstanding:
Basic 21,243 22,000 21,470
Diluted 21,620 22,782 21,470
EBITDA (1) $632 $9,378 ($5,294)
Product shipments (tons):
Energy products - welded 59,000 101,500 100,300
- seamless 42,300 42,400 32,400
Industrial products - SBQ 14,200 23,600 36,300
Average selling price per ton:
Energy products - welded $497 $482 $382
- seamless $891 $849 $710
Industrial products - SBQ $414 $422 $400
Average rig count 1,076 985 772
(1) Represents earnings (loss) before net interest expense, taxes,
depreciation and amortization and is calculated as income (loss) from
continuing operations plus net interest expense, taxes, depreciation and
amortization.
Note: Reclassifications have been made to certain prior period amounts
to conform with the currend period's presentation for freight costs.
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: January 19, 2001 By: /s/Thomas J. Depenbrock
Thomas J. Depenbrock
Vice President, Treasurer
and Chief Financial Officer
