UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
--------------
FORM 10-Q
(Mark One)
|X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended March 29, 1997
-------------------
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 1-6853
SHAW INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
GEORGIA 58-1032521
- --------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
616 E. WALNUT AVENUE, DALTON, GEORGIA 30720
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area
code (706) 278-3812
NOT APPLICABLE
- --------------------------------------------------------------------------------
Former name, former address and former fiscal year, if changed since last
report.
Indicate by check X 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 ______.
APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares
outstanding of each of the issuer's classes of common stock, as of the latest
practicable date: May 3, 1997 - 133,829,774 shares
<PAGE>
SHAW INDUSTRIES, INC.
FORM 10-Q
INDEX
PART I - FINANCIAL INFORMATION PAGE NUMBERS
--------------------- ------------
Item 1. Financial Statements
Condensed Consolidated Balance Sheets - March 29, 1997
and December 28, 1996 ................................... 3-4
Condensed Consolidated Statements of Income and Retained
Earnings - For the Three Months Ended
March 29, 1997 and March 30, 1996 ............. 5
Condensed Consolidated Statements of Cash Flows -
For the Three Months Ended March 29, 1997
and March 30, 1996 ............................. 6
Notes to Condensed Consolidated Financial Statements .... 7-8
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of Operations ........ 9-10
PART II - OTHER INFORMATION ............................................... 11
SIGNATURES ................................................................ 12
2
<PAGE>
PART 1 - ITEM ONE - FINANCIAL INFORMATION
SHAW INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
ASSETS March 29, December 28,
1997 1996
----------- -----------
(UNAUDITED)
CURRENT ASSETS:
Cash and cash equivalents ................... $ 19,290 $ 49,581
----------- -----------
Accounts receivable, less
allowance for doubtful accounts and
discounts of $18,635 and $16,667 .......... 414,879 393,983
----------- -----------
Inventories -
Raw materials ............................. 277,655 251,262
Work-in-process ........................... 27,459 26,070
Finished goods ............................ 303,867 279,453
----------- -----------
608,981 556,785
----------- -----------
Other current assets ........................ 79,214 81,056
----------- -----------
TOTAL CURRENT ASSETS .......... 1,122,364 1,081,405
----------- -----------
PROPERTY, PLANT AND EQUIPMENT,
at cost:
Land and land improvements .................. 29,606 29,584
Buildings and leasehold improvements ........ 297,570 293,072
Machinery and equipment ..................... 993,451 969,601
Construction in progress .................... 50,902 45,289
----------- -----------
1,371,529 1,337,546
Less - Accumulated depreciation and
amortization ......................... (702,805) (682,405)
----------- -----------
668,724 655,141
----------- -----------
GOODWILL, net ................................ 244,360 212,398
----------- -----------
INVESTMENT IN JOINT VENTURE .................. 17,996 18,302
----------- -----------
OTHER ASSETS ................................. 16,204 17,152
----------- -----------
TOTAL ASSETS .................. $ 2,069,648 $ 1,984,398
=========== ===========
3
<PAGE>
LIABILITIES AND SHAREHOLDERS' INVESTMENT
March 29, December 28,
1997 1996
----------- -----------
(UNAUDITED)
CURRENT LIABILITIES:
Notes payable ............................... $ 788 $ 35,084
Current maturities of long-term debt ........ 17,043 17,431
Accounts payable ............................ 218,521 195,347
Accrued liabilities ......................... 160,497 163,199
----------- -----------
TOTAL CURRENT LIABILITIES .............. 396,849 411,061
----------- -----------
LONG-TERM DEBT, less current maturities ...... 915,796 825,280
----------- -----------
DEFERRED INCOME TAXES ........................ 64,689 63,453
----------- -----------
OTHER LIABILITIES ............................ 12,953 12,893
----------- -----------
SHAREHOLDERS' INVESTMENT:
Common stock, no par, $1.11 stated value,
authorized 500,000,000 shares; issued and
outstanding: 133,254,601 shares at March
29, 1997 and 132,772,548 shares at
December 28, 1996 .......................... 147,914 147,379
Paid-in capital ............................. 78,070 72,335
Cumulative translation adjustment ........... 3,673 3,058
Retained earnings ........................... 449,704 448,939
----------- -----------
TOTAL SHAREHOLDERS' INVESTMENT ......... 679,361 671,711
----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS'
INVESTMENT ........................... $ 2,069,648 $ 1,984,398
=========== ===========
The accompanying notes are an integral part of these consolidated financial
statements.
4
<PAGE>
<TABLE>
<CAPTION>
SHAW INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
THREE MONTHS THREE MONTHS
ENDED ENDED
March 29, 1997 March 30, 1996
-------------- --------------
<S> <C> <C>
NET SALES ............................................ $ 808,653 $ 657,856
COSTS AND EXPENSES:
Cost of sales ...................................... 608,563 527,936
Selling, general and administrative ................ 167,397 103,857
Pre-opening expenses, retail operations ............ 1,760 158
Nonrecurring charges ............................... -- 29,139
Interest expense, net .............................. 13,728 9,566
Other (income), net ................................ (484) (563)
--------- ---------
INCOME (LOSS) BEFORE INCOME TAXES .................... 17,689 (12,237)
PROVISION FOR INCOME TAXES ........................... 7,624 4,276
--------- ---------
INCOME (LOSS) BEFORE EQUITY IN INCOME OF JOINT VENTURE 10,065 (16,513)
EQUITY IN INCOME OF JOINT VENTURE .................... 683 929
========= =========
NET INCOME (LOSS) .................................... $ 10,748 $ (15,584)
========= =========
DIVIDENDS PAID PER COMMON SHARE ...................... $ 0.075 $ 0.075
========= =========
EARNINGS PER COMMON SHARE:
Primary and fully diluted basis - .................. $ 0.08 $ (0.11)
========= =========
RETAINED EARNINGS:
Beginning of period ................................ $ 448,939 $ 455,663
Add (Deduct) - net income (loss) ................... 10,748 (15,584)
Deduct - dividends paid ............................ (9,983) (10,246)
--------- ---------
End of period ...................................... $ 449,704 $ 429,833
========= =========
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
5
<PAGE>
<TABLE>
<CAPTION>
SHAW INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS THREE MONTHS THREE MONTHS
(UNAUDITED AND IN THOUSANDS) ENDED ENDED
March 29, 1997 March 30, 1996
-------------- --------------
<S> <C> <C>
OPERATING ACTIVITIES:
Net income (loss) ............................................................. $ 10,748 $(15,584)
-------- --------
Adjustments to reconcile net income (loss) to net cash provided by operating
activities:
Depreciation and amortization ............................................... 23,727 21,586
Provision for doubtful accounts ............................................. 2,033 1,797
Deferred income taxes ....................................................... (930) (92)
Nonrecurring charges ........................................................ -- 29,139
Other, net .................................................................. (14,529) (8,368)
Changes in operating assets and
liabilities, net of acquisitions:
Accounts receivable .................................................... (7,470) (1,994)
Inventories ............................................................ (40,585) (7,016)
Other current assets ................................................... 2,951 659
Accounts payable ....................................................... 11,061 33,483
Accrued liabilities .................................................... (4,117) 6,040
-------- --------
Total adjustments .................................................... (27,859) 75,234
-------- --------
Net cash (used) provided by operating
activities ................................................................. (17,111) 59,650
-------- --------
INVESTING ACTIVITIES:
Additions to property, plant and equipment .................................... (24,866) (20,776)
Acquisitions of business assets ............................................... (28,026) (32,643)
-------- --------
Net cash used in investing activities ....................................... (52,892) (53,419)
-------- --------
FINANCING ACTIVITIES:
Decrease in notes payable ..................................................... (38,605) --
Increase in long-term debt .................................................... 88,147 28,061
Dividends paid ................................................................ (9,983) (10,246)
Purchase and retirement of common stock ....................................... -- (21,698)
Proceeds from exercise of stock options ....................................... 153 304
-------- --------
Net cash provided (used)by financing
activities ................................................................ 39,712 (3,579)
-------- --------
NET INCREASE IN CASH AND CASH EQUIVALENTS ...................................... (30,291) 2,652
CASH AND CASH EQUIVALENTS AT BEGINNING
OF PERIOD .................................................................... 49,581 31,453
======== ========
CASH AND CASH EQUIVALENTS AT END OF PERIOD ..................................... $ 19,290 $ 34,105
======== ========
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
6
<PAGE>
SHAW INDUSTRIES, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
---------------------------------------------------------------
1. Basis of Presentation
The financial statements included herein have been prepared by the Company,
without audit, pursuant to the rules and regulations of the Securities and
Exchange Commission. Certain information and footnote disclosures normally
included in financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to such rules and
regulations, although the Company believes that the disclosures are adequate to
make the information not misleading. These financial statements should be read
in conjunction with the financial statements and related notes contained in the
Company's 1996 Annual Report on Form 10-K. In the opinion of management, the
accompanying unaudited financial statements contain all adjustments necessary to
present fairly the Company's financial position, results of operations and cash
flows at the dates and for the periods presented. Interim results of operations
are not necessarily indicative of the results to be expected for a full year.
Certain prior period amounts have been reclassified to conform with the current
period presentation.
2. Inventories
The Company uses the last-in, first-out (LIFO) method of valuing
substantially all of its domestic inventories. If LIFO inventories were valued
at current costs, the inventories would have been $789,000 and $1,643,000 lower
at March 29, 1997 and December 28, 1996, respectively. The Company's foreign
inventories and certain of its finished goods inventories, representing 25.5
percent of total inventories, are valued at the lower of first-in, first-out
(FIFO) cost or market.
3. Long-term Debt
In March 1997, the Company completed a new domestic revolving credit
facility which provides for borrowings of up to $900,000,000 and expires in
March 2002. The borrowings bear interest at variable rates equal to the London
Interbank Offered Rate (LIBOR) plus margins ranging from 0.150 percent to 0.475
percent, depending on the Company's consolidated funded debt to earnings ratios,
as defined. Fees associated with the domestic revolving credit agreement include
a facility fee on the committed amount ranging from 0.10 percent 0.15 percent.
The LIBOR-based rate at March 29, 1997 was 6.16 percent and borrowings
outstanding under this new facility totaled $698,000,000.
4. Acquisitions
During the quarter ended March 29, 1997, the Company acquired G & S
Investments, Inc. and affiliates collectively doing business as the Carpet
Exchange; Walters Carpet One; Sun Control Tile, Co., doing business as Baker
Bros.; and several other residential retailers and commercial contractors for
cash and common stock totaling $38.2 million and resulting in goodwill of $27.8
million as part of its continuing retail acquisition strategy which commenced in
December 1995.
5. Long-Lived Asset and Goodwill Impairment
The Financial Accounting Standards Board issued SFAS NO. 121, "Accounting
for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed
Of," which establishes, among other things, accounting standards for the
impairment of long-lived assets and certain identifiable intangibles. The
Company adopted the new standard effective December 31, 1995 and in connection
with management's review of the Company's international operations in March
1996, management determined that certain of its international production
equipment would not provide sufficient cash flows to recover the carrying value
of such equipment and related goodwill. As a result, the Company recorded
nonrecurring charges of $29,139,000 ($26,519,000, net of tax benefit, or $.19
per share) in March 1996 for the reduction of the carrying value of certain
goodwill and property, plant and equipment at its international operations
related to the adoption and a provision for the disposal of other assets.
7
<PAGE>
6. Transfers and Servicing of Financial Assets and Extinguishment of Liabilities
In June 1996, the FASB issued SFAS No. 125, "Accounting for Transfers and
Servicing of Financial Assets and Extinguishment of Liabilities". SFAS No. 125
is effective for transfers and servicing of financial assets and extinguishments
of liabilities occurring after December 31, 1996 and is applied prospectively.
The Company anticipates that the adoption of this statement will not have a
material effect on the financial statements.
7. Earnings Per Share
In February 1997, the FASB issued SFAS No. 128, " Earnings Per Share" which
specifies the computation, presentation and disclosure requirements for earnings
per share. The Company will be required to adopt SFAS No. 128 in the fourth
quarter of 1997. All prior period earnings per share data will be restated to
conform with the provision of SFAS No. 128. Based on a preliminary evaluation of
this Standards' requirements, the Company does not expect the per share amounts
reported under SFAS No. 128 to be materially different from those calculated and
presented under Accounting Principles Board Opinion No. 15.
8
<PAGE>
SHAW INDUSTRIES, INC. AND SUBSIDIARIES
ITEM TWO-MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
- --------------------------------------------------------------------------------
GENERAL
The Company's business, as well as the U.S. carpet industry in general, is
cyclical in nature and is significantly affected by general economic conditions.
The level of domestic carpet sales tends to reflect fluctuations in consumer
spending for durable goods and, to a lesser extent, fluctuations in interest
rates and new housing starts. The Company's international operations are also
impacted by the economic climates in the markets in which they operate
(primarily the United Kingdom, Australia and Mexico). Sales prices and demand
for the Company's domestic wholesale manufacturing business declined slightly in
1996 with the decision in December 1995 to enter the residential retail and
commercial contractor business, while margins improved. During the first quarter
of 1997, demand for the Company's domestic wholesale manufacturing business
improved over that of the first quarter of 1996, while sales prices were
comparable and margins improved. International markets were weak in 1996 and the
first quarter of 1997, but margins improved substantially in the first quarter
of 1997 over the first quarter of 1996 as a result of recording restructuring
costs of $36.1 million ($24.2 million, net of tax benefit) in December 1996
related to the Company's decision to exit the woolen carpet business in the
United Kingdom.
During the first quarter of 1997, the Company continued to implement its
retail acquisition strategy by acquiring several residential retailers and
commercial contractors for cash and common stock totaling $38.2 million and
resulting in goodwill of $27.8 million which is being amortized over 20 years.
Net sales for the Company's residential retail and commercial contractor
business totaled $197.9 million for the quarter ended March 29, 1997 compared to
$22.8 million for the quarter ended March 30, 1996. At March 29, 1997 the
Company has 411 residential retail and commercial contractor locations
throughout the United States. The Company believes that by combining the
resources of the manufacturer and retailer and developing a commercial contract
distribution network, it can provide a full range of products and services to
more effectively meet the needs of the end-user of both residential and
commercial carpet products at significantly improved margins. As part of this
strategy, the Company continues its efforts to develop an alignment program with
dealers of both residential and commercial carpet products to provide a
collection of services, benefits and programs that will encourage dealers to
purchase more from the Company. At March 29, 1997, the Company has approximately
1,400 aligned dealers.
LIQUIDITY AND CAPITAL RESOURCES
At March 29, 1997, the Company had working capital of $725.6 million, an
increase of $55.3 million, or 8.3 percent, over working capital of $670.3
million at December 28, 1996. Cash and cash equivalents decreased $30.3 million
from $49.6 million at December 28, 1996 to $19.3 million at March 29, 1997. Cash
used by operating activities was $17.1 million in the first quarter of 1997
primarily as the result of larger increases in inventories and accounts
receivable of $40.6 million and $7.5 million, respectively, which were offset in
part by net income of $10.7 million adjusted for depreciation and amortization
of $23.7 million. Cash flow provided by operating activities for the first
quarter of 1996 totaled $59.7 million, principally due to depreciation and
amortization of $21.6 million, nonrecurring charges of $29.1 million as
discussed in note 4 of notes to condensed consolidated financial statements, and
substantial increases in accounts payable and accrued liabilities of $39.5
million which were offset in part by a net loss of $15.6 million and increases
in inventories, accounts receivable and other assets, net of $17.4 million. Cash
used in investing activities for the first quarter of 1997 consisted of
additions to property, plant and equipment of $24.9 million and acquisitions of
business assets of $28.0 million compared to $20.8 million and $32.6 million,
respectively, in the first quarter of 1996. Cash flow provided by financing
activities during the first quarter of 1997 of $39.7 million principally
included an increase in long-term debt of $88.1 million offset in part by cash
dividends of $10.0 million and payments on notes payable of $38.6 million.
During the first quarter of 1996, cash used by financing activities included
cash dividends of $10.2 million and common stock repurchases of $21.7 million
offset in part by an increase in long-term debt of $28.1 million.
The Company has continued to maintain a strong working capital position.
Effective use of capital and the Company's ability to generate cash flow from
operations has enabled it to make investments which reduce production costs,
generate operating margins that have historically exceeded industry averages and
implement its retail strategy.
9
<PAGE>
Capital expenditures for property, plant and equipment necessary to
maintain the Company's facilities in a modern state-of-the-art condition and
expand its production capacity were $24.9 million for the quarter ended March
29, 1997. Management anticipates total capital expenditures and capitalized
leases obligations of approximately $75 million for the remainder of 1997 to
expand and upgrade its manufacturing and distribution equipment to meet
anticipated increases in sales volume, to improve efficiency and to open new
retail stores and upgrade its current retail operations.
The Company's primary source of financing is an unsecured revolving credit
facility with a banking syndicate which provides for borrowings of up to $900.0
million and expires in March 2002. Interest on borrowings under this facility is
currently based on LIBOR, and was 6.16 percent at March 29, 1997. At March 29,
1997, borrowings outstanding under this credit facility were $698.0 million.
RESULTS OF OPERATIONS
Three Months Ended March 29, 1997 Compared To Three Months Ended March 30, 1996
Net sales increased $150.8 million, or 22.9 percent, to $808.7 million in
the first quarter of 1997. The increase was primarily attributable to
incremental net sales of $175.1 million related to the residential retail and
commercial contract business, offset by declines in the net sales volumes of
$24.3 million for the Company's wholesale manufacturing operations in both the
domestic and international markets. Gross margin as a percentage of net sales
increased 4.9 percent to 24.7 percent in the first quarter of 1997 compared to
the first quarter for 1996, primarily due to higher margins for retail sales,
improved sales product mix and increases in the efficiency relationships of
volume and fixed costs for both the domestic and international wholesale
manufacturing business.
Selling, general and administrative expenses for the first quarter of 1997
were $167.4 million, or 20.7 percent of net sales, compared to $103.9 million,
or 15.8 percent of net sales, in the comparable period of 1996. The increase of
$63.5 million, or 4.9 percent of net sales, was primarily due to increased
advertising and other selling and administrative expenses associated with the
Company's residential retail and commercial contract business. Pre-opening
expenses related to the retail operations totaled $1.8 million for the first
quarter of 1997 compared to $.2 million for the first quarter of 1996. Interest
expense, net increased to $13.7 million for the first quarter of 1997 from $9.6
million for the first quarter of 1996 as a result of higher borrowings.
Results for the first quarter of 1996 included nonrecurring charges of
$29.1 million ($26.5 million net of tax benefit, or $.19 per share, as discussed
in note 5 of notes to condensed consolidated financial statements. Net income
before nonrecurring charges was $10.9 million , or $0.08 per share. Net loss
after nonrecurring charges was $11.6 million, or $0.11 per share for the first
quarter of 1996.
The effective income tax rate for the first quarter of 1997 was 43.1
percent, compared to 40.8 percent for the first quarter of 1996, before
nonrecurring charges of $29.1 million, as a result of increases in permanent tax
differences.
FOREIGN OPERATIONS
The Company's primary foreign operations are conducted through its United
Kingdom and Australian subsidiaries, where the functional currencies are British
pounds and Australian dollars, respectively. Fluctuations in the value of
foreign currencies create exposures which can impact the Company's operating
results. The Company may employ foreign currency forward exchange contracts
when, in the normal course of business, they are determined to effectively
manage and reduce such exposure. The Company does not enter into foreign
currency forward exchange contracts for speculative trading purposes.
10
<PAGE>
PART II - OTHER INFORMATION
ITEM ONE - LEGAL PROCEEDINGS
The Company is a party to several lawsuits incidental to its various
activities and incurred in the ordinary course of business. The Company believes
that it has meritorious claims and defenses in each case. After consultation
with counsel, it is the opinion of management that, although there can be no
assurance given, none of the associated claims, when resolved, will have a
material adverse effect upon the Company.
From time to time, the Company is subject to claims and suits arising in
the course of its business. The Company is a defendant in certain litigation
alleging personal injury resulting from personal exposure to volatile organic
compounds found in carpet produced by the Company. The complaints seek
injunctive relief and unspecified money damages on all claims. The Company has
denied any liability. The Company believes that it has meritorious defenses and
that the litigation will not have a material adverse effect on the Company's
financial condition or results of operations.
In June 1994, the Company and several other carpet manufacturers received a
grand jury subpoena from the Antitrust Division of the United States Department
of Justice relating to an investigation of the industry. In December 1995, the
Company learned that it was one of six carpet companies named as additional
defendants in a pending antitrust suit filed in the United States District Court
in Rome, Georgia. The amended complaint alleges price-fixing regarding certain
types of carpet products in violation of Section 1 of the Sherman Act. The
Company believes that the suit is spurious and without merit, and that once
completed, it will not have a material adverse effect on the Company's financial
condition or results of operations.
The Company is subject to a variety of environmental regulations relating
to the use, storage, discharge and disposal of hazardous materials used in its
manufacturing processes. Failure by the Company to comply with present and
future regulations could subject it to future liabilities. In addition, such
regulations could require the Company to acquire costly equipment or to incur
other significant expenses to comply with environmental regulations. The Company
is not involved in any material environmental proceedings.
ITEM TWO - CHANGES IN SECURITIES
None
ITEM THREE - DEFAULTS UPON SENIOR SECURITIES
None
ITEM FOUR - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM FIVE - OTHER INFORMATION
None
ITEM SIX - EXHIBITS AND REPORTS ON FORM 8-K
(A) Exhibits
11 - Statement re: Computation of Per Share Earnings
27 - Financial Data Schedule
Shareholders may obtain copies of Exhibits without charge upon written
request to the Corporate Secretary, Shaw Industries, Inc., Mail drop 061-22,
P.O. Drawer 2128, Dalton, Georgia 30722-2128.
(B) No reports on Form 8-K have been filed during the
fiscal quarter ended March 29, 1997.
11
<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.
SHAW INDUSTRIES, INC.
(The Registrant)
DATE: May 13 , 1997 s/ Robert E. Shaw
- ----------------------------- -----------------
Robert E. Shaw
Chairman of the Board, Chief Executive
Officer and President
DATE: May 13, 1997 /s/ Kenneth G. Jackson
- ----------------------------- ----------------------
Kenneth G. Jackson
Vice President and Chief Financial Officer
(Principal Financial Officer)
12
<TABLE>
<CAPTION>
EXHIBIT 11.0
SHAW INDUSTRIES, INC. AND SUBSIDIARIES
STATEMENT RE: COMPUTATION OF PER SHARE EARNINGS (1)
(In Thousands, Except Per Share Data)
(Unaudited)
Three Months Ended
======================
Mar. 29, Mar. 30,
1997 1996
--------- ---------
PRIMARY:
<S> <C> <C>
Weighted average common shares outstanding ..................... 133,042 136,148
Additional shares assuming exercise of stock options ........... 429 64
--------- ---------
Weighted average common and common equivalent shares outstanding 133,471 136,212
========= =========
Income (loss) .................................................. $ 10,748 ($ 15,584)
========= =========
Earnings (loss) per common share ............................... $ 0.08 ($ 0.11)
========= =========
FULLY DILUTED:
Weighted average common shares outstanding ..................... 133,041 136,148
Additional shares assuming exercise of stock options (2) ....... 475 64
--------- ---------
Weighted average common and common equivalent shares outstanding 133,516 136,212
========= =========
Income (loss) .................................................. $ 10,748 ($ 15,584)
========= =========
Earnings (loss) per common share ............................... $ 0.08 ($ 0.11)
========= =========
</TABLE>
(1) All numbers of shares in this exhibit are weighted on the basis of the
number of days the shares were outstanding or assumed to be outstanding during
each period.
(2) Based on the treasury stock method using the higher of the average or
period-end market price.
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONDENSED CONSOLIDATED BALANCE SHEETS OF SHAW INDUSTRIES, INC. AND SUBSIDIARIES
AS OF MARCH 29, 1997 AND THE RELATED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
AND CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 29, 1997 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000089498
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JAN-03-1998
<PERIOD-END> MAR-29-1997
<CASH> 19,290,000
<SECURITIES> 0
<RECEIVABLES> 414,879,000
<ALLOWANCES> (18,635,000)
<INVENTORY> 608,981,000
<CURRENT-ASSETS> 1,122,364,000
<PP&E> 1,371,529,000
<DEPRECIATION> 702,805,000
<TOTAL-ASSETS> 2,069,648,000
<CURRENT-LIABILITIES> 396,849,000
<BONDS> 0
0
0
<COMMON> 147,914,000
<OTHER-SE> 531,447,000
<TOTAL-LIABILITY-AND-EQUITY> 2,069,648,000
<SALES> 808,653,000
<TOTAL-REVENUES> 808,653,000
<CGS> 608,563,000
<TOTAL-COSTS> 608,563,000
<OTHER-EXPENSES> 166,640,000
<LOSS-PROVISION> 2,033,000
<INTEREST-EXPENSE> 13,728,000
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