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 quarterly period ended December 1, 2000
----------------
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 1-4365
------
OXFORD INDUSTRIES, INC.
------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Georgia 58-0831862
------------------------------- ------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
222 Piedmont Avenue, N.E., Atlanta, Georgia 30308
--------------------------------------------------
(Address of principal executive offices)
(Zip Code)
(404) 659-2424
----------------------------------------------------
(Registrant's telephone number, including area code)
Not Applicable
------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since
last report.)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the 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
----- -----
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Number of shares outstanding
Title of each class as of January 8, 2001
--------------------------- ----------------------------
Common Stock, $1 par value 7,376,511
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
-----------------------------
OXFORD INDUSTRIES, INC
CONSOLIDATED STATEMENT OF EARNINGS
SIX MONTHS AND QUARTER ENDED December 1, 2000 AND NOVEMBER 26, 1999
(UNAUDITED)
Quarter Ended Six Months Ended
------------------------- ------------------------
$ in thousands except December 1, November 26, December 1, November 26,
per share amounts 2000 1999 2000 1999
------------ ----------- ------------ -----------
Net Sales $194,869 $219,945 $399,237 $405,682
Cost of goods sold 159,073 182,024 326,097 334,061
------- ------- ------- -------
Gross Profit 35,796 37,921 73,140 71,621
Selling, general and
administrative 30,188 25,932 60,816 51,100
------ ------- ------ ------
Earnings Before Interest
and Taxes 5,608 11,989 12,324 20,521
Interest 1,248 940 2,356 1,820
------- ------- ------- -------
Earnings Before Income
Taxes 4,360 11,049 9,968 18,701
Income Taxes 1,657 4,198 3,788 7,106
------- ------- ------- -------
Net Earnings $ 2,703 $6,851 $ 6,180 $11,595
======== ======= ======= =======
Basic Earnings Per
Common Share $0.36 $0.89 $0.82 $1.49
======= ======= ======= =======
Diluted Earnings Per
Common Share $0.36 $0.88 $0.82 $1.48
======= ======= ======= =======
Basic Number of Shares
Outstanding 7,471,708 7,712,159 7,554,393 7,786,850
========= ========= ========= =========
Diluted Number of Shares
Outstanding 7,480,281 7,751,611 7,566,043 7,846,805
========= ========= ========= =========
Dividends Per Share $0.21 $0.21 $0.42 $0.42
========= ========= ========= =========
See notes to consolidated financial statements.
OXFORD INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
DECEMBER 1, 2000, JUNE 2, 2000 AND NOVEMBER 26, 1999
(UNAUDITED EXCEPT FOR JUNE 2, 2000)
$ in thousands December 1, June 2, November 26,
-------------- 2000 2000 1999
----------- ------- -----------
Assets
------
Current Assets:
Cash $ 8,539 $ 8,625 $ 10,639
Receivables 102,766 112,867 116,634
Inventories:
Finished goods 102,284 90,961 71,445
Work in process 24,064 25,903 22,323
Fabric, trim & supplies 32,487 36,373 29,109
-------- -------- -------
158,835 153,237 122,877
Prepaid expenses 13,777 12,826 12,231
-------- -------- --------
Total Current Assets 283,917 287,555 262,381
Property Plant and Equipment 35,350 37,107 37,075
Other Assets 10,819 11,904 13,106
-------- -------- --------
Total Assets $330,086 $336,566 $312,562
======== ======== ========
Liabilities and Stockholders' Equity
------------------------------------
Current Liabilities
Notes payable $23,500 $18,500 $16,000
Trade accounts payable 62,840 68,421 55,827
Accrued compensation 11,565 12,026 9,702
Other accrued expenses 20,677 22,713 26,501
Dividends payable 1,551 1,607 1,622
Income taxes 302 1,148 223
Current maturities of long-
term debt 194 205 271
-------- -------- --------
Total Current Liabilities 120,629 124,620 110,146
Long-Term Debt, less
current maturities 40,402 40,513 40,611
Noncurrent Liabilities 4,500 4,500 4,500
Deferred Income Taxes 2,107 2,619 1,625
Stockholders' Equity:
Common stock 7,387 7,651 7,651
Additional paid in capital 11,078 11,309 11,310
Retained earnings 143,983 145,354 136,719
-------- -------- --------
Total Stockholders' Equity 162,448 164,314 155,680
-------- -------- --------
Total Liabilities and
Stockholders' Equity $330,086 $336,566 $312,562
======== ======== ========
See notes to consolidated financial statements.
OXFORD INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED DECEMBER 1, 2000 AND NOVEMBER 26, 1999
(UNAUDITED)
December 1, November 26,
2000 1999
Cash Flows From Operating Activities ---------------------------------
------------------------------------
Net earnings $ 6,180 $ 11,595
Adjustments to reconcile net earnings to
net cash provided by (used in) operating activities:
Depreciation and amortization 4,523 4,295
Loss (Gain) on sale of property, plant
and equipment 34 (112)
Changes in working capital:
Receivables 10,101 (1,928)
Inventories (5,598) 24,051
Prepaid expenses (951) 1,560
Trade accounts payable (5,581) (5,570)
Accrued expenses and other current liabilities (2,497) 877
Income taxes payable (846) 223
Deferred income taxes (512) (2,389)
Other noncurrent assets 36 (833)
----------- ---------
Net Cash Provided by operating activities 4,889 31,769
Cash Flows From Investing Activities
------------------------------------
Acquisitions - (1,729)
Purchase of property, plant and equipment (2,340) (3,103)
Proceeds from sale of property, plant and
and equipment 590 121
-------- --------
Net cash used in investing activities (1,750) (4,711)
Cash Flows From Financing Activities
------------------------------------
Short-term borrowings 5,000 (17,000)
Payments on long-term debt (122) (158)
Proceeds from exercise of stock options 186 314
Purchase and retirement of common stock (5,081) (7,348)
Dividends on common stock (3,208) (3,304)
------ -------
Net cash used in financing activities (3,225) (27,496)
Net change in Cash and Cash Equivalents (86) (438)
Cash and Cash Equivalents at Beginning of Period 8,625 11,077
-------- --------
Cash and Cash Equivalents at End of Period $ 8,539 $ 10,639
======== ========
Supplemental Disclosure of Cash Flow Information
------------------------------------------------
Cash paid for:
Interest $ 2,628 $ 1,920
Income taxes 5,626 6,805
See notes to consolidated financial statements.
OXFORD INDUSTRIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
QUARTERS ENDED DECEMBER 1, 2000 AND NOVEMBER 26, 1999
1. The foregoing unaudited consolidated financial statements
reflect all adjustments which are, in the opinion of management,
necessary for a fair statement of the results for the interim
periods. All such adjustments are of a normal recurring nature.
The results for interim periods are not necessarily indicative
of results to be expected for the year.
2. The financial information presented herein should be read in
conjunction with the consolidated financial statements included
in the Registrant's Annual Report on Form 10-K for the fiscal
year ended June 2, 2000.
3. The Company is involved in certain legal matters primarily
arising in the normal course of business. In the opinion of
management, the Company's liability under any of these matters would
not materially affect its financial condition or results of
operations.
4. The Company's business segments are the Oxford Shirt Group,
Lanier Clothes, Oxford Slacks and the Oxford Womenswear Group.
The Shirt Group operations encompass dress and sport shirts, and a
broad range of men's and boys' sportswear. Lanier Clothes produces
suits, sportcoats, suit separates and dress slacks. Oxford Slacks
is a producer of private label dress and casual slacks and shorts.
The Oxford Womenswear Group is a producer of budget and moderate
priced private label women's apparel.
Corporate and other is a reconciling category for reporting
purposes and includes the Company's corporate offices,
transportation and logistics and other costs and services that are
not allocated to operating groups.
Oxford Industries, Inc
Segment Information
(unaudited)
$ in thousands Three Months Ended Six Months Ended
Dec. 1, Nov. 26, Dec. 1, Nov. 26,
2000 1999 2000 1999
Sales
Oxford Shirt Group $60,713 $64,952 $122,279 $126,257
Lanier Clothes 46,861 52,261 90,238 88,210
Oxford Slacks 26,202 26,173 52,936 49,500
Oxford Womenswear Group 60,968 76,480 133,595 141,597
Corporate and other 125 79 189 118
--------- --------- -------- --------
Total $194,869 $219,945 $399,237 $405,682
Depreciation and amortization
Oxford Shirt Group $606 $601 $1,199 $1,180
Lanier Clothes 460 442 875 881
Oxford Slacks 283 286 547 550
Oxford Womenswear Group 713 675 1,393 1,221
Corporate and other 259 227 509 463
------- ------- ------ -------
Total $2,321 $2,231 $4,523 $4,295
Oxford Industries, Inc
Segment Information
(unaudited)
$ in thousands Three Months Ended Six Months Ended
Dec. 1, Nov. 26, Dec. 1, Nov. 26,
2000 1999 2000 1999
EBIT
Oxford Shirt Group $332 $4,791 $1,265 $9,559
Lanier Clothes 3,096 4,179 6,077 6,630
Oxford Slacks 1,560 1,641 3,300 2,894
Oxford Womenswear Group 416 3,864 4,430 6,514
Corporate and other 204 (2,486) (2,748) (5,076)
--------- ------- ------- -------
Total 5,608 11,989 12,324 20,521
Interest expense, net 1,248 940 2,356 1,820
Earnings before taxes $4,360 $11,049 $9,968 $18,701
$ in thousands Six Months Ended
Dec. 1, Nov. 26,
2000 1999
ASSETS
Oxford Shirt Group $114,579 $95,701
Lanier Clothes 104,215 97,120
Oxford Slacks 44,160 40,157
Oxford Womenswear Group 80,662 89,787
Corporate and other (13,530) (10,203)
-------- --------
Total $330,086 $312,562
Purchase of property, plant and equipment
Oxford Shirt Group $693 $1,071
Lanier Clothes 825 263
Oxford Slacks 217 328
Oxford Womenswear Group 362 191
Corporate and other 243 1,250
------ ------
Total $2,340 $3,103
Item 2. Management's discussion and Analysis of Financial Condition
and results of Operations
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
($ IN THOUSANDS)
RESULTS OF OPERATIONS
SUMMARIZED FINANCIAL DATA for the quarter and six months ended
November 2000 and 1999 are as follows. (Percentages are calculated
based on actual data, but columns may not add due to rounding.)
THREE MONTHS ENDED SIX MONTHS ENDED
Dec. 1 Nov. 26 % Dec. 1 Nov. 26 %
2000 1999 CHANGE 2000 1999 CHANGE
------- ------- ------- ------- ------- -------
NET SALES 194,869 219,945 -11.4% 399,237 405,682 -1.6%
Cost of Goods Sold 159,073 182,024 -12.6% 326,097 334,061 -2.4%
GROSS PROFIT 35,796 37,921 -5.6% 73,140 71,621 2.1%
S,G&A 30,188 25,932 16.4% 60,816 51,100 -19.0%
EBIT 5,608 11,989 -53.2% 12,324 20,521 -39.9%
Interest Net 1,248 940 32.8% 2,356 1,820 29.5%
EARNINGS BEFORE INCOME 4,360 11,049 -60.5% 9,968 18,701 -46.7%
Income Taxes 1,657 4,198 -60.5% 3,788 7,106 -46.7%
NET EARNINGS 2,703 6,851 -60.5% 6,180 11,595 -46.7%
======= ====== ====== ====== ====== =======
AS A PERCENTAGE OF SALES:
NET SALES 100.0% 100.0% 100.0% 100.0%
Cost of Goods Sold 81.6% 82.8% -1.2% 81.7% 82.3% -0.6%
GROSS PROFIT 18.4% 17.2% 1.2% 18.3% 17.7% 0.6%
S,G&A 15.5% 11.8% 3.7% 15.2% 12.6% 2.6%
EBIT 2.9% 5.5% -2.6% 3.1% 5.1% -2.0%
Interest Net 0.6% 0.4% 0.2% 0.6% 0.4% 0.2%
EARNINGS BEFORE INCOME
TAXES 2.2% 5.0% -2.8% 2.5% 4.6% -2.1%
Income Taxes 0.9% 1.9% -1.0% 0.9% 1.8% -0.9%
NET EARNINGS 1.4% 3.1% -1.7% 1.5% 2.9% -1.4%
===== ===== ===== ==== ===== =====
Total Company
NET SALES for the second quarter were $194,869, down 11.4% from
$219,945 reported in the prior year.
* Below plan take-outs on basic replenishment programs resulted
in sales declines in the mass merchant and department store
channels.
*Increased sales in the direct mail channel, primarily the
Oxford Slacks Group.
Sales for the first six months were $399,237, down 1.6% from $405,682
reported last year. Decreased sales in the Womenswear and Oxford
Shirt groups were partially offset by increased sales in the Slacks
and Lanier Clothes groups.
COST OF GOODS SOLD as a percentage of sales declined 1.2% to 81.6% in
the current quarter from 82.8% in the prior year. Cost of Goods Sold
as a percentage of sales for the six months decreased 0.6% to 81.7% in
the current year from 82.3% the prior year. The higher gross margins
for the quarter and six months were attributable to:
* Lower overall markdowns
* Improved manufacturing efficiencies
* Increased proportion of branded sales
S,G&A EXPENSE for the quarter increased by $4,256 to 15.5% of net
sales in the current year from 11.8% of net sales in the prior year.
S,G&A expense for the six months increased to $15.2% of net sales in
the current year from 12.6% in the prior year. The higher S,G&A for
the quarter and the six months was attributable to:
* Continuing investment in new marketing initiatives (DKNY Kids,
Izod Club Golf, Tommy Hilfiger Womens Golf and Slates
Tailored Clothing) contributed more than $4,000 to S,G&A in the
second quarter and more than $9,000 for the six months.
INTEREST EXPENSE for the quarter increased to 0.6% of net sales in the
current year from 0.4% of net sales in the prior year(identical for
six months).
* Higher weighted average interest rates.
* Higher weighted average borrowings.
EFFECTIVE TAX RATE for the quarter and six months ended November 2000
was 38.0% and was unchanged from the same periods for the prior year.
The effective tax rate does not differ significantly from the
Company's statutory rate.
Segment Results
The Company is engaged in the design, manufacture and sale of consumer
apparel for men, women and children. Principal markets for the
Company are customers located primarily in the United States. The
Company's business units are aggregated into the following reportable
segments:
* Oxford Shirt Group
* Lanier Clothes
* Oxford Slacks
* Oxford Womenswear Group
All data with respect to the Company's specific segments are presented
before applicable intercompany eliminations. Certain prior year
information has been restated to be consistent with the current
presentation. (Percentages are calculated based on actual data, but
columns may not add due to rounding.)
THREE MONTHS ENDED SIX MONTHS ENDED
Dec. 1 Nov.26 % Dec. 1 Nov. 26 %
NET SALES 2000 1999 CHANGE 2000 1999 CHANGE
------ ------ ------ ------- ------- -------
Oxford Shirt Group 60,713 64,952 -6.5% 122,279 126,257 -3.2%
Lanier Clothes 46,861 52,261 -10.3% 90,238 88,210 2.3%
Oxford Slacks 26,202 26,173 0.1% 52,936 49,500 6.9%
Oxford Womenswear Group 60,968 76,480 -20.3% 133,595 141,597 -5.7%
Corporate and Other 125 79 58.2% 189 118 60.2%
------- ------- ------ ------- ------- ------
Total Net Sales 194,869 219,945 -11.4% 399,237 405,682 -1.6%
======= ======= ====== ======= ======= ======
AS A PERCENTAGE OF TOTAL SALES:
------ ------ ------ ------
Oxford Shirt Group 31.2% 29.5% 30.6% 31.1%
Lanier Clothes 24.0% 23.8% 22.6% 21.7%
Oxford Slacks 13.4% 11.9% 13.3% 12.2%
Oxford Womenswear Group 31.3% 34.8% 33.5% 34.9%
Corporate and Other 0.1% 0.0% 0.0% 0.0%
------ ------ ------ ------
Total Net Sales 100.0% 100.0% 100.0% 100.0%
====== ====== ====== ======
THREE MONTHS ENDED EBIT MARGIN
EBIT Dec. 1 Nov. 26 CHANGE Dec.1 Nov. 26
2000 1999 2000 1999
------ ------- ------ ------ ------
Oxford Shirt Group 332 4,791 -93.1% 0.5% 7.4%
Lanier Clothes 3,096 4,179 -25.9% 6.6% 8.0%
Oxford Slacks 1,560 1,641 -4.9% 6.0% 6.3%
Oxford Womenswear Group 416 3,864 -89.2% 0.7% 5.1%
Corporate and Other 204 (2,486) N/M N/M N/M
------ ------- ------ ----- ------
Total EBIT 5,608 11,989 -53.2% 2.9% 5.5%
====== ====== ======= ===== =====
SIX MONTHS ENDED EBIT MARGIN
EBIT Dec. 1 Nov. 26 CHANGE Dec. 1 Nov. 26
2000 1999 2000 1999
------ ------ ------ ------ -------
Oxford Shirt Group 1,265 9,559 -86.8% 1.0% 7.6%
Lanier Clothes 6,077 6,630 -8.3% 6.7% 7.5%
Oxford Slacks 3,300 2,894 14.0% 6.2% 5.8%
Oxford Womenswear Group 4,430 6,514 -32.0% 3.3% 4.6%
Corporate and Other (2,748) (5,076) N/M N/M N/M
------- ------- ------ ------ -------
Total EBIT 12,324 20,521 -39.9% 3.1% 5.1%
====== ======= ====== ====== ======
Oxford Shirt Group
Net sales for the Oxford Shirt Group declined 6.5% in the current
quarter to $60,713 from $64,952 in the prior year. The unit sales
volume decline of 3.5% was compounded by the 4.4% decline in the
average sales price per unit. Sales declines in the dress shirt and
sportshirt divisions more than offset the incremental sales from the
new golf divisions and DKNY Kids. Higher operating expenses
associated with these new marketing divisions reduced EBIT for the
group to $332 in the current quarter from $4,791 in the prior year.
Sales for this segment for the six months declined 3.2% and the EBIT
margin was 1.0%. The causes for the decline are similar to those
attributed to the second quarter.
Lanier Clothes
Lanier Clothes reported second quarter sales of $46,861, a decline of
10.3% from $52,261 in the prior year. The unit sales volume increase
of 8.5% was more than offset by the 17.4% decline in the average
selling price per unit. The unit and average selling price data have
been severely impacted by the shift in product mix from suits to
separates. The lower sales were due to slower sell-throughs of
branded tailored clothing and significantly lower sales of off-price
merchandise. A small increase in S,G&A and the lower sales volume
combined to push EBIT to $3,096 or 6.6% of net sales in the current
year from $4,179 or 8.0% of net sales in the prior year. Sales for
this segment for the six months increased 2.3%. A 9.4% increase in
S,G&A caused EBIT to decline to $6,077 or 6.7% of net sales.
Oxford Slacks Group
Oxford Slacks reported flat sales of $26,202 in the current quarter
and $26,173 in the prior year. An increase in the average selling
price per unit of 14.3% more than offset the 12.5% decline in the unit
volume. Sales growth to specialty catalogs offset sales declines to
the chain store and mass merchant channels. Second quarter EBIT was
essentially flat at $1,560 in the current quarter from $1,641 in the
prior year. Sales for this segment for the six months increased 6.9%.
EBIT increased to $3,300 or 6.2% of net sales.
Oxford Womenswear Group
Second quarter net sales for the Womenswear Group declined 20.3% from
$76,480 in the prior year to $60,968 in the current year. A 20.0%
decline in the unit volume was compounded by a 1.0% decline in the
average selling price per unit. Order deferrals and softening demand
resulted in curtailed shipments on several basic replenishment
programs. The sales decline and resulting manufacturing
inefficiencies reduced EBIT to $416 in the current quarter from $3,864
in the prior year. For the six months, this segment incurred a 5.7%
sales decline and EBIT of $4,430 or 3.3% of net sales.
Corporate and Other
Corporate and Other includes the Company's corporate offices,
transportation and logistics and other costs and services that are not
allocated to operating groups.
The primary difference in EBIT is due to LIFO accounting. Fiscal 1999
ended with abnormally high markdowns restored. In fiscal 2000, marked
down inventory was liquidated to more normal levels resulting in an
unfavorable charge to the income statement. In fiscal 2001, the
amount of marked down inventory liquidated returned to normal levels
resulting in a smaller unfavorable charge to the income statement.
Under LIFO accounting, markdowns are not recognized until the
inventory is liquidated.
FUTURE OPERATING RESULTS
The softening of demand that the Company predicted in the first
quarter earnings announcement impacted the second quarter results even
more than expected. Order deferrals and slowing sell-through at
retail left sales short of last year and plan. The Company
experienced a sizable increase in operating expenses over last year
attributable primarily to the new marketing initiatives established in
last year's second half. DKNY Kids, Izod Club Golf, Tommy Hilfiger
Womens Golf and Slates Tailored Clothing have required considerable
investment of financial and personnel resources to provide a strong
foundation for future growth and profitability. In the early stages,
however, the Company has incurred significant start-up costs with
comparatively little sales or gross margin dollars to show for its
efforts. This situation will improve as these new divisions gain
critical mass.
The Company expects this challenging retail environment and economic
uncertainty to continue. Second half sales are expected to be
essentially flat with the first half. Diluted earnings per share
should improve moderately over the first half due to improved
manufacturing performance and the growing contribution of new branded
marketing initiatives.
LIQUIDITY AND CAPITAL RESOURCES
Financial Condition
Cash flow from operations is the Company's primary source of
liquidity. Management monitors leverage through its debt-to-total
capital ratio. Working capital management is achieved primarily
through management of the Company's investment in accounts receivable.
Leverage
Total debt represented 28.3% of capital at the end of November 2000 as
compared to 26.4% at the end of May 2000 and 26.8% at the end of the
November 1999. The Company believes it has adequate borrowing
capacity to pursue strategic acquisitions.
Working Capital
Working capital increased from $152,235 at the end of the second
quarter of the prior year to $162,935 at the end of the 2000 fiscal
year and increased to $163,288 at the end of the second quarter of the
current year. The ratio of current assets to current liabilities was
2.4 at the end of the second quarter of the prior year, 2.3 at the end
of the 2000 fiscal year and 2.4 at the end of the second quarter of
the current year. Accounts Receivable at the end of the second
quarter of the current year decreased $13,868 or 11.9% compared to the
prior year. Customer accounts receivable days outstanding decreased
from 52.8 days in the prior year to 52.3 days in the current year.
Accounts payable increased $7,013 or 12.6% compared to the prior year.
The receivables and payables improvements were offset by a $35,958 or
29.3% increase in inventory. This increase was due to new marketing
initiatives and below plan sales and slower take-out of replenishment
goods. The balance of the increase was due to the purchase of Izod
Clubr Golf and the decision to bring in golf product early to be
embroidered for the spring selling season. The Company's overall
inventory days on hand were 78.6 at the end of the second quarter of
the current year and 76.0 in the prior year.
Investing Activities
Capital expenditures were $2,340 for the first six months compared to
$3,103 in the prior year.
Financing Activities
The Company continued its stock repurchase activity during the quarter
with the purchase and retirement of 203,200 shares of common stock.
Stock repurchase activity for the six months totaled 274,600 shares.
At quarter end, the remaining open authorization to repurchase
outstanding shares was approximately 478,000 shares. Subsequent to
quarter end the Company has repurchased 15,004 shares of common stock.
On January 8, 2001 the Company's Board of Directors declared a cash
dividend of $0.21 per share, payable on March 3, 2001 to shareholders
of record on February 15, 2001. The Company's Board of Directors also
issued a new stock repurchase authorization for up to 1,000,000 shares
of the Company's common stock.
FUTURE LIQUIDITY AND CAPITAL RESOURCES
The Company believes it has the ability to generate cash
and/or has available borrowing capacity to meet its foreseeable needs.
The sources of funds primarily include funds provided by operations
and both short-term and long-term borrowings. The uses of funds
primarily include working capital requirements, capital expenditures,
acquisitions, stock repurchases, dividends and repayment of short-term
and long-term debt. The Company regularly utilizes committed bank
lines of credit and other uncommitted bank resources to meet working
capital requirements. On December 1, 2000 the Company had available
for its use lines of credit with several lenders aggregating
$45,000,000. The Company has agreed to pay commitment fees for these
available lines of credit. On December 1, 2000, $45,000,000 was in
use under these lines, of which $40,000,000 was long-term. In
addition, the Company has $184,500,000 in uncommitted lines of credit,
of which $143,500,000 is reserved exclusively for letters of credit.
The Company pays no commitment fees for these available lines of
credit. On December 1, 2000, $18,500,000 was in use under these lines
of credit. Maximum borrowings from all these sources during the
current year were $74,500,000 of which $40,000,000 was long-term. The
Company anticipates continued use and availability of both committed
and uncommitted resources as working capital needs may require.
The Company considers possible acquisitions of apparel-
related businesses that are compatible with its long-term strategies.
The Company's Board of Directors has authorized the Company to
purchase shares of the Company's common stock on the open market and
in negotiated trades as conditions and opportunities warrant.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM
ACT OF 1995
Certain statements included herein contain forward-looking
statements with respect to anticipated future results, which are
subject to risks and uncertainties that could cause actual results to
differ materially from anticipated results. These risks and
uncertainties include, but are not limited to, general economic and
apparel business conditions, continued retailer and consumer
acceptance of Company products, and global manufacturing costs.
ADDITIONAL INFORMATION
For additional information concerning the Company's operations,
cash flows, liquidity and capital resources, this analysis should be
read in conjunction with the Consolidated Financial Statements and the
Notes to Consolidated Financial Statements contained in the Company's
Annual Report for the fiscal year ended June 2, 2000.
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
------------------------------------------
(a) Exhibits.
---------
27 Financial Data Schedule.
(b) Reports on Form 8-K.
--------------------
The Registrant did not file any reports on Form 8-K during the
quarter ended December 1, 2000.
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.
OXFORD INDUSTRIES, INC.
-----------------------
(Registrant)
/s/Ben B. Blount, Jr.
--------------------------
Date: January 12, 2001 Ben B. Blount, Jr.
--------------- Chief Financial Officer
