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SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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 17, 1997
Avondale Incorporated
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(Exact name of registrant as specified in its charter)
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Georgia 33-68412 58-0477150
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(State of incorporation) (Commission File Number) (IRS Employer Identification No.)
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506 South Broad Street 30655
Monroe, Georgia ----------
---------------------------------------- (Zip Code)
(Address of principal executive offices)
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 17, 1997
that it reported record sales of $1,049,474,000 for the fiscal year ended
August 29, 1997, up 49% from fiscal 1996 sales of $706,232,000. Net income
increased 68% to $22,937,000 in fiscal 1997 from $13,648,000 in fiscal 1996.
Earnings before interest, income taxes, depreciation and amortization
("EBITDA") were $111,483,912 for fiscal 1997, compared to $75,323,713 for
fiscal 1996. Utilizing this operating cash flow, the Company made capital
expenditures of $32,046,000 and reduced its debt by $51,775,000 in fiscal 1997.
G. Stephen Felker, Chairman, President and Chief Executive Officer,
remarked that "In addition to the ever present challenges of manufacturing and
marketing in the competitive environment of the textile industry, we enjoyed
the opportunity to effect the integration of Graniteville Company, which we
purchased in 1996, into the Company. Our task has been to achieve a combination
in which the result is greater than the sum of the parts. I am pleased to
report that successful progress is being made and is reflected in our financial
results for fiscal 1997."
"The year began with weak markets for many of the Company's products
permitting only a very modest profit in the first half of the fiscal year. By
mid year, however, both our understanding of our new company and market demand
in certain segments in our distribution had begun to improve. Performance by
all measures was very respectable in the last half of the fiscal year."
"The Company is committed to the continued modernization of its
facilities, with approximately $90,000,000 in capital expenditure projects
planned for fiscal 1998. Graniteville Fabric's Horse Creek Plant, a denim
weaving facility under construction since last spring, is scheduled to come on
line in 1998 with the most productive technology available. Construction of
another greige weaving facility adjacent to the Company's Swint Plant in
Graniteville, South Carolina is expected to begin in November, 1997, with
completion anticipated by the summer of 1998. These capital commitments will
produce significant progress towards the Company's objective of being the
lowest cost, highest quality producer and marketer in our lines of business."
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 17, 1997.
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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 17, 1997 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
EXHIBIT NUMBER AND DESCRIPTION PAGE
99.1 Text of Press Release of Avondale Incorporated, dated
October 17, 1997.................................................
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EXHIBIT 99.1
AVONDALE INCORPORATED REPORTS FISCAL YEAR RESULTS
MONROE, GEORGIA
Avondale Incorporated today reported record sales of $1,049,474,000
for the fiscal year ended August 29, 1997, up 49% from fiscal 1996 sales of
$706,232,000. Net income increased 68% to $22,937,000 in fiscal 1997 from
$13,648,000 in fiscal 1996.
Earnings before interest, income taxes, depreciation and amortization
("EBITDA") were $111,483,912 for fiscal 1997, compared to $75,323,713 for
fiscal 1996. Utilizing this operating cash flow, the Company made capital
expenditures of $32,046,000 and reduced its debt by $51,775,000 in fiscal 1997.
G. Stephen Felker, Chairman, President and Chief Executive Officer
remarked that "In addition to the ever present challenges of manufacturing and
marketing in the competitive environment of the textile industry, we enjoyed
the opportunity to effect the integration of Graniteville Company, which we
purchased in 1996, into Avondale. Our task has been to achieve a combination in
which the result is greater than the sum of the parts. I am pleased to report
that successful progress is being made and is reflected in our financial
results for fiscal 1997."
"The year began with weak markets for many of Avondale's products
permitting only a very modest profit in the first half of the fiscal year. By
mid year, however, both our understanding of our new company and market demand
in certain segments in our distribution had begun to improve. Performance by
all measures was very respectable in the last half of the fiscal year."
"Avondale is committed to the continued modernization of its
facilities, with approximately $90,000,000 in capital expenditure projects
planned for fiscal 1998. Graniteville Fabric's Horse Creek Plant, a denim
weaving facility under construction since last spring, is scheduled to come on
line in 1998 with the most productive technology available. Construction of
another greige weaving facility adjacent to the Company's Swint Plant in
Graniteville, South Carolina is expected to begin in November, 1997, with
completion anticipated by the summer of 1998. These capital commitments will
produce significant progress towards Avondale's objective of being the lowest
cost, highest quality producer and marketer in our lines of business."
Contact:
Craig S. Crockard
Corporate Vice President, Planning and Development
Avondale Mills, Inc.
900 Avondale Avenue
Sylacauga, Al 35150-1899
(205) 249-1340
