UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q/A No. 1
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended October 1, 1994
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 1-10095
___________DELTA WOODSIDE INDUSTRIES, INC.___________
(Exact name of registrant as specified in its charter)
SOUTH CAROLINA_______ 57-0535180____
(State or other jurisdiction of (I.R.S. Employer
Incorporation or organization) Identification No.)
233 North Main Street
Hammond Square, Suite 200
Greenville, South Carolina____________ ___ _29601____
(Address of principal executive offices) (Zip Code)
803/232-8301
(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.
Common Stock, $.01 Par Value-- 24,301,253 shares as of October 17, 1994.
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
AND FINANCIAL CONDITION
Net sales for the fiscal quarter ended October 1, 1994 were
$141,275,000, a decrease of 4% from the same quarter last
year. The Company's Harper Brothers division, which was sold
as of June 4, 1994, accounted for $5,433,000 of sales in the
fiscal quarter ended October 2, 1993. Net earnings for the
quarter ended October 1, 1994 were $4,164,000 as compared to
$1,794,000 in the prior year first quarter, an increase of
132%. On a per share basis, earnings in the first quarter of
fiscal 1995 were $.17 per share on the 24,296,000 average
shares outstanding as compared to $.07 per share on the
25,216,000 average shares outstanding in the first quarter of
fiscal 1994. Income in the quarter ended October 1, 1994
included a pre-tax credit of approximately $2.2 million
relating principally to proceeds from a life insurance policy
covering a key manager of the Nautilus division.
During the quarter ended October 1, 1994, the Company
subleased certain property previously utilized by its Harper
Brothers division referred to above. As a result of these
subleases, the Company reduced its restructuring reserves and
credited pretax income in the amount of $263,000 during the
quarter.
Consolidated gross profit margin increased to 18% in the first
quarter of fiscal 1995 from 17% reported for the first fiscal
quarter of the prior year.
In the textile segment, sales decreased 5% but gross profits
increased 23% in the quarter ended October 1, 1994 as compared
to the same period a year ago. Sales of unfinished woven
fabrics and of synthetic woven fabrics were lower, and sales
of all cotton woven and of knitted finished fabrics were
higher than in the same quarter of the prior year. Gross
profits for woven fabrics declined from the previous year's
first fiscal quarter, but this decline was more than offset by
increased gross profits for knitted textiles. The
improvements in gross profits for knitted textiles was due
primarily to lower costs attributable to the completion of the
knit finishing plant consolidations which began about June
1993. The textile segment accounted for 66% and 49% of the
consolidated sales and gross profit, respectively, for the
quarter ended October 1, 1994 as compared to 67% and 41%,
respectively, for the same period a year ago.
In the apparel segment, sales increased 13% and gross profits
increased 12% in the quarter ended October 1, 1994 as compared
to the same quarter of the prior fiscal year. Sales of Duck
Head branded apparel were lower, but increased sales of
knitted apparel more than offset this decline. The increase
in sales of knitted apparel was principally due to increased
unit volume. The decrease in sales of Duck Head branded
apparel was due primarily to lower sales through the Company's
36 retail outlet stores, reflecting generally weak performance
in the overall outlet mall sector across the country during
this period. Gross profits for woven branded apparel were
approximately equal to those of the first quarter of fiscal
<PAGE>
1993, and gross profits for knitted apparel were higher, due
principally to higher sales volume. The apparel segment
accounted for 29% and 41% of the consolidated sales and gross
profit, respectively, for the quarter ended October 1, 1994 as
compared to 25% and 38%, respectively, for the same period a
year ago.
The contribution of the Company's other businesses to
consolidated sales and gross profits was 5% and 10%,
respectively, during the first quarter of fiscal 1995.
Selling, general and administrative expenses decreased by $1.2
million in the quarter ended October 1, 1994 as compared to
the same quarter of the prior fiscal year. Prior year's first
quarter expenses included $2.1 million of expenses related to
the Harper Brothers office products business referred to
above.
The consolidated order backlog at October 1, 1994 was $167.0
million as compared to $171.5 million at October 2, 1993.
Order backlogs for the textile segment are 1% higher, for the
apparel segment are 11% lower, and for the Company's other
businesses are 35% higher than at the same time in the prior
fiscal year.
Inventory levels increased by approximately $17 million during
the first fiscal quarter of 1995 over those reported at fiscal
year end on July 2, 1994. The increases were roughly equal
between the textile and apparel segments. The textile segment
increases was primarily in unfinished woven goods, reflecting
continued weakness in these markets. The apparel increase was
due partly to seasonal buildup of branded apparel and partly
to buildup of knitted apparel stocks, reflecting higher sales
activity. The branded apparel division continues to hold
excessive finished goods inventories. The Company believes
that it is adequately reserved for any future writedowns of
this excess inventory.
The estimated effective tax rate for fiscal 1995 is
approximately 38.5%
The Company believes that cash flow generated by its
operations and funds available under its existing credit
facilities should be sufficient to service its bank debt, to
satisfy its day-to-day working capital needs, to fund its
planned capital expenditures and to pay dividends.
<PAGE>
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
27 - Financial Data Schedule
(b) The Company filed Form 8-K with date of August 18,
1994:
Item 4. Changes in Registrant's Certifying
Accountants.
<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.
Delta Woodside Industries,Inc.
(Registrant)
Date November 30, 1994 /s/ Douglas J. Stevens
Douglas J. Stevens
Controller and
Assistant Secretary
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
registrant's condensed consolidated financial statements for the fiscal
quarter ended October 1, 1994 and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> QTR-1
<FISCAL-YEAR-END> JUL-01-1995
<PERIOD-START> JUL-03-1994
<PERIOD-END> OCT-01-1994
<CASH> 694
<SECURITIES> 0
<RECEIVABLES> 114,362
<ALLOWANCES> 3,367
<INVENTORY> 221,068
<CURRENT-ASSETS> 348,863
<PP&E> 284,298
<DEPRECIATION> 95,329
<TOTAL-ASSETS> 577,710
<CURRENT-LIABILITIES> 94,539
<BONDS> 169,492
<COMMON> 243
0
0
<OTHER-SE> 286,988
<TOTAL-LIABILITY-AND-EQUITY> 577,710
<SALES> 141,275
<TOTAL-REVENUES> 141,275
<CGS> 115,826
<TOTAL-COSTS> 134,196
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 295
<INTEREST-EXPENSE> 2,852
<INCOME-PRETAX> 6,771
<INCOME-TAX> 2,607
<INCOME-CONTINUING> 4,167
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4,164
<EPS-PRIMARY> .17
<EPS-DILUTED> .17
</TABLE>
