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 April 1, 1995
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-- 24,355,078 shares as of May 10, 1995.
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
DELTA WOODSIDE INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
April 1, July 2,
1995 1994
(Unaudited)
(In thousands)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 1,022 $ 2,077
Accounts receivable:
Factor 44,894 55,440
Trade 72,190 64,921
117,084 120,361
Less allowances for doubtful
accounts and returns 3,123 3,275
113,961 117,086
Inventories
Finished goods 139,249 112,101
Work in process 66,104 69,402
Raw materials and supplies 26,561 22,300
231,914 203,803
Prepaid and other current assets 2,615 1,942
Deferred income taxes 15,153 12,028
TOTAL CURRENT ASSETS 364,665 336,936
PROPERTY, PLANT AND EQUIPMENT
Cost 298,524 279,813
Less accumulated depreciation 105,720 89,782
192,804 190,031
EXCESS OF COST OVER ASSIGNED VALUE OF NET
ASSETS ACQUIRED 27,529 28,164
OTHER ASSETS 11,522 11,872
$596,520 $567,003
DELTA WOODSIDE INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS--Continued
April 1, July 2,
1995 1994
(Unaudited)
(In thousands)
LIABILITIES AND SHAREHOLDERS'
EQUITY
CURRENT LIABILITIES
Trade accounts payable $ 41,127 $ 46,712
Accrued and sundry liabilities 43,476 48,274
TOTAL CURRENT LIABILITIES 84,603 94,986
LONG-TERM DEBT, less current portion 199,099 161,948
DEFERRED INCOME TAXES AND OTHER
LIABILITIES 28,938 25,192
SHAREHOLDERS' EQUITY
Common Stock, par value $.01--
authorized 50,000,000 shares, issued
and outstanding 24,325,000 shares
at April 1, 1995 and 24,246,000
shares at July 2, 1994 243 242
Additional paid-in capital 162,930 162,114
Retained earnings 120,707 122,521
283,880 284,877
$596,520 $567,003
See notes to condensed consolidated financial statements
DELTA WOODSIDE INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
Three Months Ended Nine Months Ended
April 1, April 2, April 1, April 2,
1995 1994 1995 1994
(In thousands, except per share data)
data)
Net sales $ 150,894 $ 155,194 $ 434,689 $ 450,964
Cost of goods sold 127,138 127,038 363,873 380,450
Gross profit on sales 23,756 28,156 70,816 70,514
Selling, general and
administrative expenses 18,572 20,008 55,195 62,641
Litigation charge (credit) (5,904) 27,096
Restructuring charge
(credit) (559) (533) 12,101
5,184 14,611 16,154 (31,324)
Other expense (income):
Interest expense 3,885 2,346 10,009 6,195
Interest income
and other (234) (1,029) (2,742) (2,101)
3,651 1,317 7,267 4,094
INCOME (LOSS) BEFORE
INCOME TAXES 1,533 13,294 8,907 (35,418)
Income taxes (benefit) 590 6,713 3,429 (11,798)
NET INCOME (LOSS)$ 943 $ 6,581 5,478 $ (23,620)
Net income per share $ .04 $ .27 $ .23 $ (.96)
Dividends per share of
common stock $ .10 $ .10 $ .30 $ .30
Weighted average shares
outstanding 24,316 24,240 24,304 24,651
See notes to condensed consolidated financial statements
DELTA WOODSIDE INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Nine Months Ended
April 1, April 2,
1995 1994
(In thousands)
OPERATING ACTIVITIES
Net income (loss) $ 5,478 $ (23,620)
Depreciation 17,167 13,977
Amortization 1,636 1,282
Other (3,106) (548)
Changes in operating assets and
liabilities (30,338) 13,115
NET CASH PROVIDED (USED) BY OPERATING
ACTIVITIES (9,163) 4,206
INVESTING ACTIVITIES
Acquisition of business net
of cash acquired (1,600)
Property, plant and equipment
purchases (21,883) (22,102)
Other 1,137 (355)
NET CASH (USED) BY INVESTING ACTIVITIES (20,746) (24,057)
FINANCING ACTIVITIES
Net proceeds from short-term line
of credit 28,688
Proceeds from revolving line of credit 238,792 33,000
Principal payments on revolving line
of credit (201,446) (11,000)
Scheduled principal payments of long-term
debt and capital lease obligations (756) (1,424)
Repurchase of Common Stock (25,312)
Dividends paid (7,292) (7,361)
Other (444) 110
NET CASH PROVIDED BY FINANCING ACTIVITIES 28,854 16,701
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS (1,055) (3,150)
Cash and cash equivalents at beginning
of period 2,077 3,730
CASH AND CASH EQUIVALENTS AT END 1,022 $ 580
OF PERIOD
See notes to condensed consolidated financial statements
DELTA WOODSIDE INDUSTRIES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
April 1, 1995
NOTE A--BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements of Delta
Woodside Industries, Inc. ("the Company") have been prepared in accordance with
generally accepted accounting principles for interim financial information and
with the instructions to Form 10-Q and Article 10 of Regulation S-X.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
In the opinion of management, all adjustments (consisting of only normal
recurring accruals) considered necessary for a fair presentation have been
included. Operating results for the three and nine months ended April 1, 1995
are not necessarily indicative of the results that may be expected for the year
ending July 1, 1995. For further information, refer to the consolidated
financial statements and footnotes thereto included in the Company's annual
report on Form 10-K for the year ended July 2, 1994.
NOTE B--LITIGATION AND RESTRUCTURING CHARGES
During fiscal 1994 the Company recognized certain litigation and restructuring
charges which are described in Note J of the Company's annual report for the
fiscal year 1994.
During the third quarter of fiscal 1995 the Alabama Supreme Court further
reduced the jury verdict in the case of three former independent sales
representatives of the Company by $3,500,000. The Company has elected to retain
the reserves associated with this reduction to cover legal and other expenses
associated with ongoing judicial review proceedings.
NOTE C--DEBT
On May 15, 1995 the Company obtained a waiver from its lenders respecting the
ratio of adjusted pretax income to interest expense for the quarter ended April
1, 1995. Each quarter the Company is required to maintain a ratio not less than
2.5 to 1.
NOTE D--OTHER
In the first quarter of fiscal 1995 the Company recognized certain life
insurance proceeds which resulted in a pretax gain of $2,204,000.
During the first six months of fiscal 1994 the Company repurchased 2.3 million
shares of its Common Stock for $25.3 million.
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 June 6, 1995 /s/ Douglas J. Stevens
Douglas J. Stevens
Controller and
Assistant Secretary
