UNITED STATES 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 30, 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)
864/232-8301
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-- 24,457,751 shares as of February 6, 1996.
INDEX
DELTA WOODSIDE INDUSTRIES, INC.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Page
Condensed consolidated balance sheets--
December 30, 1995 and July 1, 1995 3-4
Condensed consolidated statements of income --
Three and six months ended December 30, 1995 and
December 31, 1994 5
Condensed consolidated statements of cash
flows-- Six months ended December 30, 1995
and December 31, 1994 6
Notes to condensed consolidated financial
statements--December 30, 1995 7
Item 2. Management's Discussion and Analysis of
Results of Operations and Financial Condition 8-10
Part II. OTHER INFORMATION
Item 1. Legal Proceedings 11
Item 2. Changes in Securities 11
Item 3. Defaults upon Senior Securities 11
Item 4. Submission of Matters to a Vote of Security
Holders 11
Item 5. Other Information 11
Item 6. Exhibits and Reports on Form 8-K 11
SIGNATURES 12
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
DELTA WOODSIDE INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
December 30, July 1,
1995 1995
(Unaudited)
(In thousands)
ASSETS
CURRENT ASSETS
Cash and cash equivalents 1,281 $ 719
Accounts receivable:
Factor 50,991 63,085
Trade 61,938 64,143
112,929 127,228
Less allowances for doubtful
accounts and returns 3,945 5,634
108,984 121,594
Inventories
Finished goods 126,746 137,675
Work in process 62,147 58,806
Raw materials and supplies 26,821 29,553
215,714 226,034
Deferred income taxes 6,191 8,951
Prepaid and other current assets 6,335 5,826
TOTAL CURRENT ASSETS 338,505 363,124
PROPERTY, PLANT AND EQUIPMENT
Cost 345,256 312,452
Less accumulated depreciation 116,359 104,393
228,897 208,059
EXCESS OF COST OVER ASSIGNED VALUE
OF NET ASSETS ACQUIRED 26,887 27,310
OTHER ASSETS 11,196 11,803
$605,485 $610,296
DELTA WOODSIDE INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS--Continued
December 30, July 1,
1995 1995
(Unaudited)
(In thousands)
LIABILITIES AND SHAREHOLDERS'
EQUITY
CURRENT LIABILITIES
Trade accounts payable 48,320 $ 50,593
Accrued and sundry liabilities 17,412 25,368
Current portion of long-term debt 225,937 276
TOTAL CURRENT LIABILITIES 291,669 76,237
LONG-TERM DEBT, less current portion 173 219,119
DEFERRED INCOME TAXES 22,083 21,473
OTHER LIABILITIES AND DEFERRED CREDITS 7,400 6,968
SHAREHOLDERS' EQUITY
Common Stock, par value $.01--
authorized 50,000,000 shares, issued
and outstanding 24,457,000 shares
at December 30, 1995 and 24,357,000
shares at July 1, 1995 248 244
Additional paid-in capital 164,213 163,364
Retained earnings 119,699 122,891
284,160 286,499
$605,485 $610,296
See notes to condensed consolidated financial statements
DELTA WOODSIDE INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
Three Months Ended Six Months Ended
December 30, December 31, December 30, December 31,
1995 1994 1995 1994
(In thousands, except per share data)
Net sales $ 150,558 $ 142,520 $ 291,601 $ 283,795
Cost of goods sold 134,944 120,909 255,223 236,735
Gross profit on sales 15,614 21,611 36,378 47,060
Selling, general and
administrative expenses 19,257 17,990 34,139 36,623
Litigation (credit) (9,000) (9,000)
Restructuring (credit) (290) (553)
5,357 3,911 11,239 10,990
Other expense (income):
Interest expense 4,484 3,272 8,571 6,124
Interest income
and other (54) 36 (594) (2,508)
4,430 3,308 7,977 3,616
INCOME BEFORE
INCOME TAXES 927 603 3,262 7,374
Income taxes (benefit) 560 232 1,568 2,839
NET INCOME $ 367 $ 371 $ 1,694 $ 4,535
Net income per share $ .02 $ .02 $ .07 $ .19
Dividends per share of
common stock $ .10 $ .10 $ .20 $ .20
Weighted average shares
outstanding 24,444 24,300 24,426 24,298
See notes to condensed consolidated financial statements
DELTA WOODSIDE INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Six Months Ended
December 30, December 31,
1995 1994
(In thousands)
OPERATING ACTIVITIES
Net income (loss) $ 1,694 $ 4,535
Depreciation 13,120 11,434
Amortization 1,034 1,109
Other 1,201 (2,524)
Changes in operating assets and
liabilities 23,924 (31,324)
NET CASH PROVIDED (USED)BY
OPERATING ACTIVITIES 40,973 (16,770)
INVESTING ACTIVITIES
Acquisition of business net
of cash acquired
Property, plant and equipment
purchases (43,093) (9,746)
Other 815 188
NET CASH (USED) BY INVESTING ACTIVITIES (42,278) (9,558)
FINANCING ACTIVITIES
Proceeds from revolving lines of credit 142,382 162,454
Payments on revolving lines of credit (135,400) (131,609)
Scheduled principal payments of
long-term debt (122) (646)
Dividends paid (4,887) (4,860)
Other (106) (465)
NET CASH PROVIDED BY FINANCING ACTIVITIES 1,867 24,874
INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 562 (1,454)
Cash and cash equivalents at beginning of period 719 2,077
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 1,281 $ 623
See notes to condensed consolidated financial statements
DELTA WOODSIDE INDUSTRIES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
December 30, 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 six months ended December 30, 1995 are not necessarily
indicative of the results that may be expected for the year ending June 29,
1996. 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 1, 1995.
NOTE B--SHORT-TERM DEBT
On February 12, 1996, the Company obtained a waiver from its lenders with
respect to the ratio of adjusted pretax income to interest expense for the
quarter ended December 30, 1995. This waiver is effective until March 15,
1996. Although it is the objective of the Company and its lenders to finalize
certain amendments to the Credit Agreement of September 1994 on or prior to
March 15, 1996, generally accepted accounting principles require the Company
to reclassify its long-term debt to short-term debt until these amendments
are finalized.
NOTE C--TAXES
The estimated effective tax rate for fiscal 1996 has increased to 48% from
43% in the fiscal year ended July 1, 1995. The increased tax rate is a result
of the effect of permanent tax differences on a lower level of earnings. In
addition, lower earnings are preventing the Company from recognizing the tax
benefits of certain net operating losses which are due to expire this fiscal
year, and has caused the Company to increase the allowance for the tax
benefits of certain other net operating losses.
NOTE D--OTHER
Results in the quarter ended December 30, 1995 include $9,000,000 in credits
to pretax income related to prior litigation charges. In the first quarter
of fiscal 1995, the Company recognized certain life insurance proceeds which
resulted in a pretax gain of $2,200,000.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF
OPERATIONS AND FINANCIAL CONDITION
Net sales for the fiscal quarter ended December 30, 1995 were $150,558,000,
an increase of 6% as compared to $142,520,000 in the prior year's second
quarter. Net income for the second fiscal 1996 quarter was $367,000 as
compared to net income of $371,000 for the second quarter of fiscal 1995. On
a per share basis, earnings in the quarter ended December 30, 1995 were $.02
on the 24,444,000 average shares outstanding as compared with earnings of
$.02 on the 24,300,000 average shares outstanding in the quarter ended
December 31, 1994. Results in the quarter ended December 30, 1995 include
$9,000,000 in credits to pre-tax income related to prior litigation charges.
Net sales for the six months ended December 30, 1995 were $291,601,000 as
compared to $283,795,000 for the six months ended December 31, 1994. Net
income for the first six months of fiscal 1996 was $1,694,000 as compared to
$4,535,000 for the first six months of fiscal 1995. On a per share basis,
earnings for the six months ended December 30, 1995 were $.07 on the
24,426,000 average shares outstanding, as compared to earnings of $.19 per
share on the 24,298,000 average shares outstanding in the six month period
ended December 31, 1994. Results for the six months ended December 30, 1995
include the $9 million of credits noted in the paragraph above. Results for
the six months ended December 31, 1994 included a credit to pre-tax income
of $2,200,000 related to insurance proceeds.
Consolidated gross margin was 10% in the quarter ended December 30, 1995
compared to 15% for the quarter ended December 31, 1994. Consolidated gross
margin for the six months ended December 30, 1995 was 12% as compared to 17%
for the six months ended December 31, 1994.
Net sales in the textile segment were approximately the same for the quarter
ended December 30, 1995 as for the quarter ended December 31, 1994. Sales of
woven fabrics were higher and sales of knitted fabrics were lower in the
most recent quarter as compared to the same quarter of last fiscal year.
Sales of woven fabrics increased both in units and average billing price,
and sales of knitted fabrics were lower both in units and in average
billing price. Gross profit margins in the textile segment were 5% in the
quarter ended December 30, 1995 as compared to 12% in the quarter ended
December 31, 1994. Gross margins for woven fabrics were down slightly, but
gross margins for knitted fabrics were materially lower, in the most recent
quarter as compared to the same quarter of last fiscal year. Lower gross
margins for woven textiles were due principally to higher fiber costs.
Materially lower gross margins for knitted textiles were due to higher fiber
costs, lower average billing prices, and low levels of manufacturing
activity which led to material underabsorption of fixed costs. The Company
still holds relatively high cost cotton in its knitted fabrics operation
which will continue to adversely affect knitted fabric gross margins through
at least the third fiscal quarter ending March 30, 1996. In addition,
current order backlogs for knit textiles are not sufficient to allow the
Company to operate its knit manufacturing facilities near full capacity, and
the Company expects fixed costs in these facilities to continue to be
underabsorbed during the March 1996, quarter. On January 26, 1996, the
Company announced that it will close a weaving plant in Greer, South
Carolina. Production from this facility is expected to cease in April of
1996. Order backlogs in the Company's textile segment were 4% higher at
December 30, 1995 than at December 31, 1994. Order backlogs of woven
unfinished fabric, woven cotton fabric, and knit fabrics were lower and
order backlogs for woven government fabrics were higher at the end of the
most recent quarter than at the same time last year. In the quarter ended
December 30, 1995, the textile segment contributed 67% and 32% to the
Company's consolidated net sales and gross profit, respectively.
Net sales in the Company's apparel segment in the quarter ended December 30,
1995 were 20% higher than in the quarter ended December 31, 1994, with all
of the Company's
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS--Continued
apparel units showing sales improvement. The knit apparel sales increase
resulted from more units at lower average billing prices. Sales increases of
Duck Head branded apparel were attributed to more units at average billing
prices comparable to the prior year's second fiscal quarter. Gross profits
in the apparel segment were 4% lower in the quarter ended December 30, 1995
than in the quarter ended December 31,1994. Gross margins for knitted
apparel were lower due principally to higher yarn costs and lower average
billing prices as compared to the same quarter of the prior fiscal year.
Gross margins for Duck Head apparel were slightly lower due principally to
underutilization of that operation's manufacturing facilities due to low
order rates and the necessity to lower inventories. In December, 1995, the
Company announced the closing of two knit apparel sewing plants, one in
Sparta, Georgia and one in Tellico Plains, Tennessee. Production from these
facilities ended on February 2, 1996. The Company expects that production
from these two facilities will be replaced by production from its new sewing
facility in Honduras. Order backlogs in the apparel segment were 19% lower
at December 30, 1995 than at December 31, 1994. Backlogs were lower for all
apparel units. In the quarter ended December 30, 1995, the apparel segment
contributed 27% and 45% of the Company's consolidated net sales and gross
profit, respectively.
Sales in the Company's Other segment increased 26% in the quarter ended
December 30, 1995 as compared to the quarter ended December 31, 1994. Gross
profits increased 65% in this same period. Order backlogs for the Other
segment were 12% lower at December 30, 1995 than at December 31, 1994. The
contribution of the Company's Other segment to consolidated sales and gross
profits was 6% and 23%, respectively.
Selling, general, and administrative expenses were $1.3 million higher in
the quarter ended December 30, 1995 than in the comparable quarter of the
prior fiscal year. This increase was attributable principally to advertising
expenses in the Duck Head operation and to costs related to opening new
retail clearance stores.
The Company's consolidated order backlog at December 30, 1995 was $153.4
million, a decrease of 6% from the order backlog at December 31, 1994.
Consolidated inventories were $215.7 million at December 30, 1995, as
compared to $226.0 million at July 1, 1995. Although inventories of branded
apparel decreased during the latest quarter, the Company considers a portion
of its branded apparel inventories excessive. Although the Company believes
that it is adequately reserved for any future price markdowns of its excess
inventories at December 30, 1995, it will continually evaluate the adequacy
of these reserves. The Company intends to continue to adjust its
manufacturing activity to further reduce inventory levels in the face of
slow incoming orders.
The Company's woven fabric operation has worked off substantially all of the
historically high priced cotton bought during calendar year 1995. However,
large stocks of high priced fiber still remain in its knitted fabric
operation, and these will continue to adversely affect the profit margins of
this operation through at least the quarter ending March 30, 1996. In
addition, relatively weak apparel sales at retail over the past several
months will continue to adversely affect the Company's operations for the
foreseeable future through low production volume and downward pressure on
prices for the Company's products.
Debt under the Company's revolving credit facility was $224.8 million at
December 30, 1995, up from $217.8 million at July 1, 1995. Fiscal year to date
capital expenditures of $43.1 million (principally for plant and equipment for
woven textiles, and a distribution center for branded apparel) were the
principal cause of this additional debt. The Company expects that its
capital expenditures for the current fiscal year will approach $70 million.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS--Continued
On February 12, 1996, the Company obtained a waiver from its lenders with
respect to the ratio of adjusted pretax income to interest expense for the
quarter ended December 30, 1995. At the same time, the interest rate that the
Company will pay on funds borrowed under the terms of its Credit Agreement
of September 1994 with the lenders will increase by approximately 150 basis
points. In addition, on or before March 15, 1996, the Company shall give
its Credit Agreement lenders a lien on most of its accounts receivable,
inventory and equipment.
The estimated effective tax rate for fiscal 1996 has increased to 48% from
43% in fiscal year ended July 1, 1995. The increased tax rate is a result
of the effect of permanent tax differences on a lower level of earnings. In
addition, lower earnings are preventing the Company from recognizing the tax
benefits of certain net operating losses which are due to expire this fiscal
year, and has caused the Company to increase the allowance for the tax
benefits of certain other net operating losses.
At December 30, 1995 the Company had $32.9 million available for additional
borrowing under its credit facility. The Company believes that cash flow
generated by its operations and funds available under the existing credit
facilities should be sufficient to service its bank debt, to satisfy its day-
to-day working capital needs, to fund its capital expenditures and to pay
dividends.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings*
Item 2. Changes in Securities*
Item 3. Defaults upon Senior Securities*
Item 4. Submission of Matters to a Vote of Security Holders
The following summarizes the votes at the Annual Meeting of the
Company's shareholders held on November 9, 1995:
Election of Broker
Directors For Against Withheld Abstentions Nonvotes
C. C. Guy 22,625,398 0 186,791 N/A N/A
J. F. Kane 22,626,158 0 186,031 N/A N/A
M. Lennon 22,622,330 0 189,859 N/A N/A
E. E. Maddrey, II 22,624,984 0 187,205 N/A N/A
B. Mickel 22,624,705 0 187,484 N/A N/A
B. A. Mickel 22,624,705 0 187,484 N/A N/A
B. C. Rainsford 22,626,158 0 186,031 N/A N/A
Ratification of
Appointment of
KPMG Peat Marwick
as Independent
Auditors
For Fiscal 1996 22,748,603 44,893 18,693 N/A N/A
Amendment to
the Incentive Stock
Award Plan 19,976,708 1,779,469 1,506,012 N/A N/A
Amendment to the
Stock Option Plan 18,660,029 3,092,114 1,060,046 N/A N/A
Item 5. Other Information*
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits required by Item 601 of Regulation S-K
4.2.4 February 12, 1995 Waiver respecting Credit
Agreement dated as of September 7, 1994.
10.3.1 1995 Amendment to the Incentive Stock Award Plan
effective as of November 9, 1995.
10.4.4 1995 Amendment to the Stock Option Plan
effective November 9, 1995.
(b) No reports were filed on Form 8-K during the quarter
ended December 30, 1995.
Items 1, 2, 3, and 5 are not applicable
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 2/13/96 /s/ E. Erwin Maddrey, II
E. Erwin Maddrey, II
President and
Chief Executive Officer
Date 2/13/96 /s/ Douglas J. Stevens
Douglas J. Stevens
Controller and
Assistant Secretary
EXHIBIT INDEX
4.2.4 February 12, 1995 Waiver respecting Credit Agreement
dated as of September 7, 1994
10.3.1 1995 Amendment to the Incentive Stock Award Plan effective as of
November 9, 1995.
10.4.4 1995 Amendment to the Stock Option Plan effective November 9,
1995.
February 12, 1996
Delta Woodside Industries, Inc.
233 North Main Street
Suite 200
Hammond Square
Greenville, South Carolina 29601
Attention: President
RE: Credit Agreement dated as of September 7, 1994 (the "Credit
Agreement") by and among Delta Woodside Industries, Inc. (the
"Borrower"), the Lenders described therein, NationsBank, N.A.
(formerly known as NationsBank of North Carolina, N.A.), as
Agent, and Bank of America National Trust and Savings Association
and The Bank of New York, as Co-Agents
Dear Sirs:
You have informed us that the Borrower will be in violation of Section 9.1(d)
of the above referenced Credit Agreement for the Fiscal Quarter ended
December 31, 1995, and you have requested that the Lenders waive such
violation.
The defined terms in the Credit Agreement are incorporated herein by
reference.
In accordance with your request, the undersigned Lenders hereby agree to
waive through and including March 15, 1996 the violation of Section 9.1(d)
of the Credit Agreement resulting from the failure of the Borrower to
maintain the required Interest Coverage Ratio for the Fiscal Quarter ended
December 31, 1995. Unless further waived by the Lenders, such violation of
Section 9.1(d) shall, immediately on and as of March 16, 1996 (without any
further notice or lapse of time), constitute an Event of Default under the
Credit Agreement.
In consideration of the waiver provided by the Lenders pursuant hereto, the
Borrower hereby agrees that:
(i) nothwithstanding any provision to the contrary set forth
in the Credit Agreement, on and after the date hereof, the Applicable
Margin shall equal 225 basis points; and
(ii) on or before March 15, 1996, the Borrower shall cause
all of the accounts receivable, inventory and equipment of the
Borrower and each of the Subsidiary Guarantors to become subject to
first priority, perfected liens in favor of the Agent, for the benefit
of the Lenders, pursuant to such security documents as the Agent may
require, and, in connection therewith, the Borrower shall cause to be
delivered to the Agent such other documentation as the Agent may
reasonably request, including without limitation appropriate UCC-1
financing statements, certified corporate resolutions and favorable
opinions of counsel, all in form, content and scope reasonably
satisfactory to the Agent.
The waiver set forth above shall be effective only in the specific instance
provided for above and only for the purpose for which given and shall not
entitle the Borrower to any other or further waivers in similar or other
circumstances.
Except as waived hereby, all of the terms and provisions of the Credit
Agreement remain in full force and effect.
This letter may be executed in any number of counterparts, each of which
shall constitute an original but all of which when taken together shall
constitute but one contract.
[The remainder of this page has been left blank intentionally.]
NATIONSBANK, N.A.
By: /s/ E. Phifer Helms
Title: Senior Vice-President
BANK OF AMERICA NATIONAL TRUST
AND SAVINGS ASSOCIATION,
By: /s/ Michael J. McKenney
Title: Vice President
THE BANK OF NEW YORK
By: /s/ H. Stephen Griffith
Title: Senior Vice President
FIRST UNION NATIONAL BANK OF
SOUTH CAROLINA
By: /s/ Harry C. Farthing
Title: Vice President
WACHOVIA BANK OF SOUTH CAROLINA
By: /s/ Suzanne L. Morrison
Title: Corporate Banking Officer
THE BANK OF NOVA SCOTIA
By: /s/ W. C. Zarrett
Title: Senior Relationship Manager
PNC BANK, NATIONAL ASSOCIATION
By: /s/ Robert J. Mitchell, Jr.
Title: Vice President
NATWEST BANK N.A.
By: /s/ Kurt S. Pohmer
Title: Assistant Vice President
ACCEPTED AND AGREED:
DELTA WOODSIDE INDUSTRIES, INC.
By: /s/ Bettis C. Rainsford
Title: Executive Vice President
ACKNOWLEDGED AND CONSENTED TO:
ALCHEM CAPITAL CORPORATION
DELTA MILLS, INC.
DUCK HEAD APPAREL COMPANY, INC.
CARGUD, SOCIEDAD ANONIMA
ARMONIA TEXTIL, SOCIEDAD ANONIMA
NAUTILUS INTERNATIONAL, INC.
NAUTILUS DIRECT, INC.
DELTA CONSOLDIATED CORPORATION
DELTA MERCHANDISING, INC.
By: /s/ Bettis C. Rainsford
Bettis C. Rainsford
Executive Vice President for
each of the above corporations
cc: Eric B. Amstutz, Esq.
EXHIBIT 10.3.1
DELTA WOODSIDE INDUSTRIES, INC.
INCENTIVE STOCK AWARD PLAN
1995 AMENDMENT
Effective as of the 1995 Annual Meeting of the Shareholders
of Delta Woodside Industries, Inc. a South Carolina corporation
(the "Plan") is amended as follows:
1. Section 4.1 of the Plan is amended by substituting
"800,000" for "300,000" where that number appears in that
Section.
2. In all other respects the Plan shall remain in full force and effect.
3. This amendment shall be effective if it is approved by
the requisite shareholder vote at the 1995 Annual Meeting of
Shareholders of the Company.
Effective as of November 9, 1995.
DELTA WOODSIDE INDUSTRIES, INC.
STOCK OPTION PLAN
1995 AMENDMENT
Effective as of the 1995 Annual Meeting of the Shareholders
of Delta Woodside Industries, Inc., a South Carolina corporation
(the "Company"), the Company's Stock Option Plan, as heretofore
amended (the "Plan"), is amended as follows:
1. Section 4 of the Plan is amended by substituting
"600,000" for "300,000" where that number appears in that
Section.
2. In all other respects the Plan shall remain in full
force and effect.
3. This amendment shall be effective if it is approved by
the requisite shareholder vote at the 1995 Annual Meeting of
Shareholders of the Company.
Effective as of November 9, 1995.
<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 December 30, 1995 and is qualified in its entirety by reference to such
financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-29-1996
<PERIOD-END> DEC-30-1995
<CASH> 1,281
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<RECEIVABLES> 112,929
<ALLOWANCES> 3,945
<INVENTORY> 215,714
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<PP&E> 345,256
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<TOTAL-ASSETS> 605,485
<CURRENT-LIABILITIES> 291,680
<BONDS> 173
<COMMON> 248
0
0
<OTHER-SE> 283,912
<TOTAL-LIABILITY-AND-EQUITY> 605,485
<SALES> 291,601
<TOTAL-REVENUES> 291,601
<CGS> 255,223
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