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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): OCTOBER 18, 1996
Avondale Incorporated
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(Exact name of registrant as specified in its charter)
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Georgia 58-0477150
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(State of incorporation) (Commission File Number) (IRS Employer Identification No.)
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506 South Broad Street
Monroe, Georgia 30655
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(Address of principal executive offices) (Zip Code)
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Registrant's telephone number, including area code: (770) 267-2226
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(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS.
Avondale Incorporated (the "Company") announced on October 18, 1996 that
it reported record sales of $706,232,000 for the fiscal year ended August 30,
1996, up 31% from fiscal 1995 sales of $538,652,000. Net income declined 35%
to $13,648,000 in fiscal 1996 from $20,939,000 in fiscal 1995.
Earnings before interest, income taxes, depreciation and amortization
("EBITDA") were $73,118,000 for fiscal 1996, compared to $75,124,000 for fiscal
1995. Utilizing this operating cash flow, the Company made capital
expenditures of $33,326,000 in fiscal 1996, compared to $15,823,000 in fiscal
1995.
G. Stephen Felker, Chairman, President and Chief Executive Officer
remarked that "Textile markets were highly competitive during the Company's
1996 fiscal year. Despite these conditions, the Company was able to expand its
Walton greige fabrics production by 15% and initiate a modernization and
expansion program that will increase the denim production in its Alabama
locations by 30% when completed in mid-1997. Market conditions for sales yarns
were weak throughout the entire fiscal year. This weakness was responsible for
the decline in earnings experienced in fiscal 1996 compared to fiscal 1995.
"During fiscal 1996, the Company's operating unit, Avondale Mills, Inc.,
acquired the textile assets of the Graniteville Company. The integration of
the Graniteville operations into the Company has proceeded smoothly and has
both broadened and deepened the Company's market presence. Demand for
Graniteville denim and piece dyed fabrics, as well as for Woodhead specialty
fabrics, remains good. To continue modernization of the Company's and
Graniteville's facilities, the Company intends to commence, during fiscal 1997,
the previously announced four year capital expenditure program totaling
approximately $250,000,000."
A copy of the press release relating to the Company's results of operations is
attached hereto as Exhibit 99.1
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(c) Exhibits.
99.1 Text of Press Release of Avondale Incorporated, dated October
18, 1996.
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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 hereunto duly authorized.
Date: October 18, 1996 AVONDALE INCORPORATED
By: /s/ Jack R. Altherr, Jr.
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Jack R. Altherr, Jr.
Vice Chairman and
Chief Financial Officer
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INDEX TO EXHIBITS
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EXHIBIT NUMBER AND DESCRIPTION PAGE
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99.1 Text of Press Release of Avondale Incorporated, dated
October 18, 1996 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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EXHIBIT 99.1
AVONDALE INCORPORATED REPORTS FISCAL YEAR RESULTS
MONROE, GEORGIA
Avondale Incorporated today reported record sales of $706,232,000 for
the fiscal year ended August 30, 1996, up 31% from fiscal 1995 sales of
$538,652,000. Net income declined 35% to $13,648,000 in fiscal 1996 from
$20,939,000 in fiscal 1995.
Earnings before interest, income taxes, depreciation and amortization
("EBITDA") were $73,118,000 for fiscal 1996, compared to $75,124,000 for
fiscal 1995. Utilizing this operating cash flow, the company made capital
expenditures of $33,326,000 in fiscal 1996, compared to $15,823,000 in fiscal
1995.
G. Stephen Felker, Chairman, President and Chief Executive Officer
remarked that "Textile markets were highly competitive during our 1996 fiscal
year. Despite these conditions, we were able to expand our Walton greige
fabrics production by 15% and initiate a modernization and expansion program
that will increase the denim production in our Alabama locations by 30% when
completed in mid-1997. Market conditions for sales yarns were weak throughout
the entire fiscal year. This weakness was responsible for the decline in
earnings experienced in fiscal 1996 compared to fiscal 1995.
"During fiscal 1996, Avondale Incorporated's operating unit, Avondale
Mills, Inc., acquired the textile assets of the Graniteville Company. The
integration of the Graniteville operations into Avondale has proceeded smoothly
and has both broadened and deepened our market present. Demand for
Graniteville denim and piece dyed fabrics, as well as for Woodhead specialty
fabrics, remains good. To continue modernization of the Avondale and
Graniteville facilities, the company intends to commence, during fiscal 1997,
the previously announced four year capital expenditure program totaling
approximately $250,000,000."
CONTACT:
Craig S. Crockard
Corporate Vice President
Planning & Development
Avondale Mills, Inc.
900 Avondale Avenue
Sylacauga, AL 35150
(205) 249-1340
