<PAGE> 1
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 PERIOD ENDED MAY 30, 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 33-68412
---------------
AVONDALE INCORPORATED
(Exact name of registrant as specified in its charter)
GEORGIA 58-0477150
(State or other jurisdiction of (I.R.S. employer
incorporation or organization) identification no.)
506 SOUTH BROAD STREET 30655
MONROE, GEORGIA (Zip code)
(Address of principal executive offices)
Registrant's telephone number, including area code: (770) 267-2226
Former name, former address and former fiscal year, if changed since last
report: N/A
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.
<TABLE>
<CAPTION>
<S> <C> <C>
Description As Of Shares Outstanding
-------------------- ------------- ------------------
Class A Common Stock July 7, 1997 12,312,034 Shares
Class B Common Stock July 7, 1997 978,939 Shares
</TABLE>
<PAGE> 2
FORM 10-Q
TABLE OF CONTENTS
PART I - FINANCIAL INFORMATION (UNAUDITED)
<TABLE>
<S> <C>
Condensed Consolidated Balance Sheets at May 30, 1997 and August 30, 1996 1
Condensed Consolidated Statements of Income for the Thirteen Weeks Ended
May 30, 1997 and May 24, 1996 2
Condensed Consolidated Statements of Income for the Thirty-Nine Weeks Ended
May 30, 1997 and May 24, 1996 3
Condensed Consolidated Statements of Cash Flows for the Thirty-Nine Weeks Ended
May 30, 1997 and May 24, 1996 4
Notes to Condensed Consolidated Financial Statements 5
Management's Discussion and Analysis of Financial Condition and Results of Operations 7
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
Signature 12
</TABLE>
<PAGE> 3
PART I. FINANCIAL INFORMATION
AVONDALE INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
AUG. 30, MAY 30,
1996 1997
-------- --------
ASSETS
<S> <C> <C>
Current assets
Cash $ 7,253 $ 7,950
Accounts receivable, less allowance for doubtful
accounts of $4,920 in 1996 and $5,807 in 1997 84,428 79,543
Due from Triarc 7,250 --
Inventories 127,698 130,881
Prepaid expenses 2,792 2,347
--------- ---------
Total current assets 229,421 220,721
Property, plant and equipment
Land 8,490 8,510
Buildings 64,275 66,053
Machinery and equipment 355,155 369,455
--------- ---------
427,920 444,018
Less accumulated depreciation (190,838) (220,444)
--------- ---------
237,082 223,574
Other assets 26,576 27,564
--------- ---------
$ 493,079 $ 471,859
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 47,045 $ 46,711
Accrued compensation, benefits and related expenses 20,182 22,090
Other accrued expenses 26,530 20,834
Long-term debt due in one year 3,250 2,250
Income taxes payable 88 6,843
--------- ---------
Total current liabilities 97,095 98,728
Long-term debt 299,850 263,925
Deferred income taxes and other long-term liabilities 28,622 32,548
Shareholders' equity
Preferred Stock
$.01 par value; 10,000 shares authorized -- --
Common Stock
Class A, $.01 par value; 100,000 shares
authorized, 12,312 issued and outstanding 123 123
Class B, $.01 par value; 5,000 shares
authorized, 979 issued and outstanding 10 10
Capital in excess of par value 41,844 41,844
Retained earnings 25,535 34,681
--------- ---------
Total shareholders' equity 67,512 76,658
--------- ---------
$ 493,079 $ 471,859
========= =========
</TABLE>
See notes to condensed consolidated financial statements.
1
<PAGE> 4
AVONDALE INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
THIRTEEN WEEKS ENDED
----------------------
MAY 24, MAY 30,
1996 1997
----------- ---------
<S> <C> <C>
Net sales $179,596 $277,182
Operating costs and expenses
Cost of goods sold 154,464 229,230
Depreciation 7,847 9,947
Selling and administrative expenses 8,045 11,298
-------- --------
Operating income 9,240 26,707
Interest expense 4,847 6,682
Discount and expenses on sale of receivables 2,021 1,559
Loss attributable to investment in Oneita -- 1,300
Other (income) expense, net 56 (59)
-------- --------
Income before income taxes 2,316 17,225
Provision for income taxes 890 6,930
-------- --------
Net income $ 1,426 $ 10,295
======== ========
Per share data:
Net income $ .12 $ .77
======== ========
Dividends declared $ .07 $ .07
======== ========
Weighted average shares outstanding 11,809 13,400
======== ========
</TABLE>
See notes to condensed consolidated financial statements.
2
<PAGE> 5
AVONDALE INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
THIRTY-NINE WEEKS ENDED
-----------------------
MAY 24, MAY 30,
1996 1997
----------- ----------
<S> <C> <C>
Net sales $423,092 $778,876
Operating costs and expenses
Cost of goods sold 360,029 662,761
Depreciation 20,454 30,508
Selling and administrative expenses 21,337 33,914
-------- --------
Operating income 21,272 51,693
Interest expense 10,883 20,095
Discount and expenses on sale of receivables 2,021 4,795
Loss attributable to investment in Oneita -- 6,456
Other expense, net (484) 370
-------- --------
Income before income taxes 8,852 19,977
Provision for income taxes 3,430 8,040
-------- --------
Net income $ 5,422 $ 11,937
======== ========
Per share data:
Net income $ .48 $ .89
======== ========
Dividends declared $ .21 $ .21
======== ========
Weighted average shares outstanding 11,359 13,400
======== ========
</TABLE>
See notes to condensed consolidated financial statements
3
<PAGE> 6
AVONDALE INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
THIRTY-NINE WEEKS ENDED
-----------------------
MAY 24, MAY 30,
1996 1997
----------- ----------
<S> <C> <C>
Operating activities
Net income $ 5,422 $ 11,937
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 20,560 30,730
Loss attributable to investment in Oneita -- 6,456
Provision for deferred income taxes 834 3,696
Interest expense on payment-in-kind notes 2,671 --
Gain on sale of equipment (655) (5)
Changes in operating assets and liabilities (10,808) (13,057)
--------- ---------
Net cash provided by operating activities 18,024 39,757
Investing activities
Acquisition of textile business of Graniteville (247,956) --
Due from Triarc (10,145) 7,250
Investment in Oneita securities (7,500) --
Purchases of property, plant and equipment (26,941) ( 17,766)
Proceeds from sale of property, plant and equipment 617 1,172
--------- ---------
Net cash used in investing activities (291,925) (9,344)
Financing activities
Net additions to (payments on) revolving line of credit and long-term debt 65,850 (36,925)
Issuance of subordinated notes 125,000 --
Deferred financing costs (6,184) --
Sale of accounts receivable 104,000 10,000
Issuance of common stock 39,300 --
Retirement of subordinated note (45,014) --
Dividends paid (2,480) (2,791)
--------- ---------
Net cash provided by (used in) financing activities 280,472 (29,716)
--------- ---------
Increase in cash 6,571 697
Cash at beginning of period 1,335 7,253
--------- ---------
Cash at end of period $ 7,906 $ 7,950
========= =========
</TABLE>
See notes to condensed consolidated financial statements.
4
<PAGE> 7
AVONDALE INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
MAY 30, 1997
1. Basis of Presentation: The accompanying unaudited condensed
consolidated financial statements include the accounts of Avondale Incorporated
and its wholly owned subsidiaries, Avondale Mills, Inc. and Avondale
Receivables Company (collectively, the "Company"). These statements have been
prepared in accordance with generally accepted accounting principles for
interim financial information. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. The August 30, 1996 balance sheet has been
derived from the audited financial statements at that date. Certain prior year
balances have been reclassified to conform to the current year's presentation.
The accounting policies and basis of presentation followed by the Company are
presented in Note 1 to the August 30, 1996 Audited Consolidated Financial
Statements.
Effective September 1, 1996, the Company adopted Statement of Financial
Accounting Standards No. 121 "Accounting for the Impairment of Long-lived
Assets and Long-Lived Assets to be Disposed Of." The adoption of this statement
had no impact on the Company's results of operations or financial position.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
In the opinion of management, the accompanying unaudited condensed
consolidated financial statements contain all adjustments (consisting of normal
recurring accruals) necessary for a fair presentation. Operating results for
the thirteen weeks and thirty-nine weeks ended May 30, 1997 are not necessarily
indicative of the results that may be expected for the fiscal year ending
August 29, 1997.
2. Inventories: Components of inventories are as follows (amounts in
thousands):
<TABLE>
<CAPTION>
AUG. 30, MAY 30,
1996 1997
-------- --------
<S> <C> <C>
Finished goods $ 35,746 $ 36,380
Work in process 56,826 54,528
Raw materials 28,812 30,285
Dyes and chemicals 6,353 5,441
-------- --------
Inventories at FIFO 127,737 126,634
Less allowance to reduce carrying value to
LIFO basis (7,725) (4,125)
-------- --------
120,012 122,509
Supplies at average cost 7,686 8,372
-------- --------
$127,698 $130,881
======== ========
</TABLE>
5
<PAGE> 8
AVONDALE INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONT.)
(UNAUDITED)
MAY 30, 1997
Valuation of the Company's inventories under the last-in, first-out (LIFO)
method at May 30, 1997 and the related impact on the statement of income for
the thirteen weeks and thirty-nine weeks then ended has been determined using
estimated quantities and costs as of the fiscal 1997 year-end. As a result,
interim amounts are subject to the final year-end LIFO valuation.
3. Investment in securities: In January 1996, the Company purchased a
$7.5 million subordinated note due February 26, 1999, having convertible
features, from Oneita Industries, Inc. ("Oneita"). On August 27, 1996, the
Company converted the subordinated note plus accrued interest into 2,270,833
shares of common stock of Oneita, representing ownership of 24.8% of Oneita's
outstanding shares. This investment, which is accounted for under the equity
method, is included in Other assets in the Consolidated Balance Sheet.
The following summarizes the results of operations reported by Oneita for
its three fiscal quarters ended March 29, 1997 (amounts in thousands):
<TABLE>
<S> <C>
Net Sales $101,123
========
Loss from Operations $(24,800)
========
Net Loss $(30,877)
========
</TABLE>
During the thirteen weeks and thirty-nine weeks ended May 30, 1997, the
Company recorded a loss of approximately $1.3 and $6.5 million, respectively,
attributable to its investment in Oneita. Such loss represented the Company's
pro rata share of the net loss incurred by Oneita for its three fiscal quarters
noted above.
4. Contingencies: The Company is involved in certain environmental
matters and claims. The Company has provided reserves to cover management's
estimates of the cost of investigating, monitoring and remediating these and
other environmental conditions. If more costly remediation measures are
necessary than those believed to be probable based on current facts and
circumstances, actual costs may exceed the reserves provided. However, based on
the information currently available, management does not believe that the
outcome of these matters will have a material adverse effect on its future
results of operations or financial position.
The Company is also a party to litigation incidental to its business from
time to time. The Company is not currently a party to any litigation that
management, in consultation with legal counsel, believes, if determined
adversely to the Company, would have a material adverse effect on the Company's
results of operations or financial position.
6
<PAGE> 9
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
RESULTS OF OPERATIONS
Thirteen Weeks Ended May 30, 1997 Compared to Thirteen Weeks Ended May 24,
1996
NET SALES. Net sales increased 54.3% to $277.2 million for the thirteen
weeks ended May 30, 1997 from $179.6 million for the thirteen weeks ended May
24, 1996, primarily as a result of the Company's acquisition of substantially
all of the textile assets of Graniteville Company ("Graniteville") in April
1996.
Apparel fabric sales increased 97.7% to $189.0 million for the thirteen
weeks ended May 30, 1997 from $95.6 million for the thirteen weeks ended May
24, 1996. This increase in sales reflected a 109.5% increase in yards sold,
which was partially offset by a 5.6% decline in average selling prices. The
increase in yards sold was primarily attributable to the acquisition of
Graniteville and expansion of the Company's denim manufacturing operations. The
decline in average selling prices resulted from the inclusion of net sales
attributable to Graniteville, which generally were at lower average selling
prices than the Company's other apparel fabric sales, and softening market
prices for certain denim fabrics caused by excess inventories of denim fabric
and garments within the industry, as well as increased production capacity of
domestic and Mexican suppliers.
Greige and specialty fabric sales increased 43.2% to $18.2 million for the
thirteen weeks ended May 30, 1997 from $12.7 million for the thirteen weeks
ended May 24, 1996. This increase in sales was primarily the result of an
increase in yards sold due to the inclusion of net sales attributable to
Graniteville.
Yarn sales decreased 1.8% to $70.0 million for the thirteen weeks ended
May 30, 1997 from $71.3 million for the thirteen weeks ended May 24, 1996. This
decrease reflected a 0.8% decrease in pounds sold to outside customers and a
1.0% decrease in average selling prices for those pounds. During this same
period, yarn production was increased to satisfy the yarn requirements of the
Company's fabric operations. Market prices for sales yarns remained very
competitive, reflecting continued excess production capacity within the
industry during the thirteen weeks ended May 30, 1997.
COST OF GOODS SOLD. Cost of goods sold increased 48.4% to $229.2 million
for the thirteen weeks ended May 30, 1997 from $154.4 million for the thirteen
weeks ended May 24, 1996. Cost of goods sold as a percentage of net sales
decreased to 82.7% for the thirteen weeks ended May 30, 1997 from 86.0% for the
thirteen weeks ended May 24, 1996, primarily due to improved operating
efficiencies and lower raw material costs. The Company was able to achieve cost
savings to offset the impact of generally higher production costs of certain
Graniteville products.
SELLING AND ADMINISTRATIVE EXPENSES. Selling and administrative expenses
increased 40.7% to $11.3 million for the thirteen weeks ended May 30, 1997 from
$8.0 million for the thirteen weeks ended May 24, 1996, primarily due to
additional expenses attributable to Graniteville. Selling and administrative
expenses as a percentage of net sales decreased to 4.1% for the thirteen weeks
ended May 30, 1997 from 4.5% for the thirteen weeks ended May 24, 1996.
INTEREST EXPENSE, NET. Interest expense, net increased 37.8% to $6.7
million for the thirteen weeks ended May 30, 1997 from $4.8 million for the
thirteen weeks ended May 24, 1996. This increase reflected a higher average
balance of outstanding borrowings during the thirteen weeks ended May 30, 1997,
primarily as a result of the acquisition of Graniteville.
7
<PAGE> 10
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION (CONT.)
RESULTS OF OPERATIONS (CONT.)
DISCOUNT AND EXPENSES ON SALE OF RECEIVABLES. Discount and expenses on
sale of receivables were $1.6 million for the thirteen weeks ended May 30, 1997
compared to $2.0 million for the thirteen weeks ended May 24, 1996. These
expenses are related to the receivables securitization facility established by
the Company in April 1996.
LOSS ATTRIBUTABLE TO INVESTMENT IN ONEITA. During the thirteen weeks
ended May 30, 1997 the Company recorded a loss of approximately $1.3 million
attributable to its investment in Oneita. Such loss represented the Company's
pro rata share of the net loss incurred by Oneita for its fiscal quarter ended
March 29, 1997. The carrying value of this investment at May 30, 1997
approximated its aggregate market value based upon the last closing price of
Oneita's common stock as reported on the New York Stock Exchange as of May 30,
1997.
PROVISION FOR INCOME TAXES. Provision for income taxes increased to $6.9
million for the thirteen weeks ended May 30, 1997 from $0.9 million for the
thirteen weeks ended May 24, 1996. The Company's effective tax rate was 40.2%
for the thirteen weeks ended May 30, 1997 compared to 38.4% for the thirteen
weeks ended May 24, 1996.
Thirty-Nine Weeks Ended May 30, 1997 Compared to Thirty-Nine Weeks Ended May
24, 1996
NET SALES. Net sales increased 84.1% to $778.9 million for the
thirty-nine weeks ended May 30, 1997 from $423.1 million for the thirty-nine
weeks ended May 24, 1996, primarily as a result of the Company's acquisition of
substantially all of the textile assets of Graniteville in April 1996.
Apparel fabric sales increased 176.0% to $535.2 million for the
thirty-nine weeks ended May 30, 1997 from $193.9 million for the thirty-nine
weeks ended May 24, 1996. This increase in sales reflected a 192.1% increase in
yards sold, which was partially offset by a 5.5% decline in average selling
prices. The increase in yards sold was primarily attributable to the
acquisition of Graniteville and expansion of the Company's denim manufacturing
operations. The decline in average selling prices resulted from the inclusion
of net sales attributable to Graniteville, which generally were at lower
average selling prices than the Company's other apparel fabric sales, and
softening market prices for certain denim fabrics caused by excess inventories
of denim fabric and garments within the industry, as well as increased
production capacity of domestic and Mexican suppliers.
Greige and specialty fabric sales increased 47.6% to $50.8 million for the
thirty-nine weeks ended May 30, 1997 from $34.4 million for the thirty-nine
weeks ended May 24, 1996. This increase in sales was primarily the result of an
increase in yards sold due to the inclusion of net sales attributable to
Graniteville.
Yarn sales decreased 0.4% to $192.9 million for the thirty-nine weeks
ended May 30, 1997 from $193.7 million for the thirty-nine weeks ended May 24,
1996. The slight decline in yarn sales was the result of a 2.3% increase in
pounds sold offset by a 2.7% decrease in average selling prices. Market prices
remained very competitive, reflecting continued excess production capacity
within the yarn industry during the thirty-nine weeks ended May 30, 1997.
COST OF GOODS SOLD. Cost of goods sold increased 84.1% to $662.8 million
for the thirty-nine weeks ended May 30, 1997 from $360.0 million for the
thirty-nine weeks ended May 24, 1996. Cost of goods sold as a percentage of net
sales remained flat at 85.1% for the thirty-nine weeks ended May 30, 1997
compared with the thirty-nine
8
<PAGE> 11
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION (CONT.)
RESULTS OF OPERATIONS (CONT.)
weeks ended May 24, 1996, as lower raw material prices were offset by the
impact of generally higher production costs of certain Graniteville products
and lower average selling prices.
SELLING AND ADMINISTRATIVE EXPENSES. Selling and administrative expenses
increased 59.0% to $33.9 million for the thirty-nine weeks ended May 30, 1997
from $21.3 million for the thirty-nine weeks ended May 24, 1996, primarily due
to additional expenses attributable to Graniteville. Selling and administrative
expenses as a percentage of net sales decreased to 4.4% for the thirty-nine
weeks ended May 30, 1997 from 5.0% for the thirty-nine weeks ended May 24,
1996.
INTEREST EXPENSE, NET. Interest expense, net increased 84.1% to $20.1
million for the thirty-nine weeks ended May 30, 1997 from $10.9 million for the
thirty-nine weeks ended May 24, 1996. This increase reflected a higher average
balance of outstanding borrowings during the thirty-nine weeks ended May 30,
1997 as a result of the acquisition of Graniteville.
DISCOUNT AND EXPENSES ON SALE OF RECEIVABLES. Discount and expenses on
sale of receivables were $4.8 million for the thirty-nine weeks ended May 30,
1997, compared to $2.0 million for the thirty-nine weeks ended May 24, 1996.
These expenses are related to the receivables securitization facility
established by the Company in April 1996.
LOSS ATTRIBUTABLE TO INVESTMENT IN ONEITA. During the thirty-nine weeks
ended May 30, 1997 the Company recorded a loss of approximately $6.5 million
attributable to its investment in Oneita. Such loss represented the Company's
pro rata share of the net loss incurred by Oneita for its three fiscal quarters
ended March 29, 1997. The carrying value of this investment at May 30, 1997
approximated its aggregate market value based upon the closing price of
Oneita's common stock as reported on the New York Stock Exchange as of May 30,
1997.
PROVISION FOR INCOME TAXES. Provision for income taxes increased 134.4%
to $8.0 million for the thirty-nine weeks ended May 30, 1997 from $3.4 million
for the thirty-nine weeks ended May 24, 1996. The Company's effective tax rate
was 40.2% for the thirty-nine weeks ended May 30, 1997 compared to 38.8% for
the thirty-nine weeks ended May 24, 1996.
LIQUIDITY AND CAPITAL RESOURCES
Net cash provided by operating activities was $39.8 million for the
thirty-nine weeks ended May 30, 1997. Principal working capital changes
included a $4.9 million decrease in Accounts Receivable, a $3.2 million
increase in Inventories, and a $4.1 million decrease in Accounts Payable and
Accrued Expenses. Investing activities were predominantly equipment purchases
and plant improvements of $17.8 million made in connection with the ongoing
modernization of the Company's manufacturing facilities, net of receipt of the
$7.25 million due from Triarc relating to final adjustment of the Graniteville
acquisition price. Financing activities included a $36.9 million reduction in
debt, payment of $2.8 million in dividends on outstanding common stock, and the
sale of $10.0 million of Accounts Receivable under the securitization facility.
At May 30, 1997, the Company had borrowings of $126.2 million outstanding
under its revolving line of credit and $98.8 million of borrowing availability
thereunder.
9
<PAGE> 12
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION (CONT.)
LIQUIDITY AND CAPITAL RESOURCES (CONT.)
The Company's capital expenditures, aggregating $17.8 million for the
thirty-nine weeks ended May 30, 1997, were primarily for the expansion of the
Company's denim manufacturing operations and other equipment purchases.
Management estimates that capital expenditures for the balance of fiscal 1997
will be approximately $14.0 million, and that such amounts will be used
primarily to upgrade weaving equipment and to improve fabric finishing
facilities.
Management believes that cash generated from operations, together with
borrowings available under its revolving line of credit and proceeds received
in connection with sales of trade receivables, will be sufficient to meet the
Company's working capital and capital expenditure needs in the foreseeable
future. The Company will also continue to consider other options available to
it in connection with future working capital and capital expenditure needs,
including the issuance of additional debt and equity securities.
10
<PAGE> 13
AVONDALE INCORPORATED
PART II - OTHER INFORMATION
Item 1 Legal Proceedings
-----------------
None
Item 2 Changes in Securities
---------------------
None
Item 3 Defaults upon Senior Securities
-------------------------------
None
Item 4 Submission of Matters to a Vote of Security Holders
---------------------------------------------------
None
Item 5 Other Information
-----------------
None
Item 6 Exhibits and Reports on Form 8-K
--------------------------------
(a) Exhibits
27. Financial Data Schedule
(b) Reports on Form 8-K
None
11
<PAGE> 14
SIGNATURE
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.
AVONDALE INCORPORATED
By: /S/ G. STEPHEN FELKER
----------------------------------------
G. Stephen Felker
Chairman, President, and Chief Executive
Officer
By: /S/ JACK R. ALTHERR, JR.
-------------------------
Jack R. Altherr, Jr.
Vice Chairman and Chief Financial Officer
Date: July 9, 1997
-------------
12
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE QUARTER ENDED MAY 30, 1997
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> AUG-29-1997
<PERIOD-END> MAY-30-1997
<CASH> 7,950
<SECURITIES> 0
<RECEIVABLES> 79,543
<ALLOWANCES> 5,807
<INVENTORY> 130,881
<CURRENT-ASSETS> 220,721
<PP&E> 444,018
<DEPRECIATION> 220,444
<TOTAL-ASSETS> 471,859
<CURRENT-LIABILITIES> 98,728
<BONDS> 263,925
0
0
<COMMON> 133
<OTHER-SE> 76,525
<TOTAL-LIABILITY-AND-EQUITY> 471,859
<SALES> 778,876
<TOTAL-REVENUES> 778,876
<CGS> 662,761
<TOTAL-COSTS> 727,183
<OTHER-EXPENSES> 11,621
<LOSS-PROVISION> 927
<INTEREST-EXPENSE> 20,095
<INCOME-PRETAX> 19,977
<INCOME-TAX> 8,040
<INCOME-CONTINUING> 11,937
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 11,937
<EPS-PRIMARY> .21
<EPS-DILUTED> .21
</TABLE>
