<PAGE> 1
===============================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
----------------------
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 19, 1999
Avondale Incorporated
----------------------------------------------------------------
(Exact name of registrant as specified in its charter)
<TABLE>
<CAPTION>
<S> <C> <C>
Georgia 33-68412 58-0477150
- ----------------------------------- ---------------------------------------- --------------------------
(State of Incorporation) (Commission File Number) (IRS Employer
Identification No.
</TABLE>
506 South Broad Street
Monroe, Georgia 30655
- --------------------------------------- ------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (770) 267-2226
------------------------------------------------------------
(Former name or former address, if changed since last report)
===============================================================================
<PAGE> 2
ITEM 5. OTHER EVENTS.
Avondale Incorporated (the "Company") announced on October 19, 1999
that it reported sales of $880,855,000 for the fiscal year ended August 27,
1999, down 17% from fiscal 1998 sales of $1,056,103,000. Net income decreased
71% to $10,023,000 in fiscal 1999 from $34,313,000 in fiscal 1998.
G. Stephen Felker, Chairman, President and Chief Executive Officer
remarked that "Of the twenty five years I have served our Company, this was
quite possibly the most difficult. For the second consecutive year, global
supply grossly outpaced demand. All markets in the world, except that of the
United States, experienced weak consumer demand. Production from every continent
sought a piece of American consumer activity. As a result of this imbalance,
power in the marketplace is held by the consumer, and, on his behalf, the
retailer. Primary producers, like Avondale, are required to compete ferociously.
"Avondale did indeed compete well in 1999. While it is disappointing to
report lower sales and earnings, I am impressed with Avondale's ability to
exercise its flexibility and to optimize its opportunities in most areas of
operations. During the year, our Company made substantial progress towards its
goal of becoming North America's most efficient textile producer while offering
to its customers the most flexible and responsive service available in the
marketplace. I believe our record supports this claim.
"Sales in fiscal 1999 were $880,855,000, down 17% from fiscal 1998. Net
income before an extraordinary item, which relates to the write down of idled
equipment from the Graniteville Company purchase in 1996, was $13,862,000, down
61% from fiscal 1998. After the extraordinary item, fiscal 1999 net income was
$10,023,000 compared to fiscal 1998 net income of $34,313,000.
"The Company continued to invest in the competitiveness of its
facilities with $50,143,000 in capital expenditures. Capital improvements over
the past four years have exceeded $180,000,000.
"Return on beginning shareholders' equity was greater than 10%, even in
this very difficult year. Inventories were reduced by $8,000,000 in the year
while debt, including accounts receivable securitization, dropped $46,000,000.
Our Company is focused on keeping its assets at work for its shareholders."
Earnings before interest, income taxes, depreciation and amortization
("EBITDA") were $93,921,000 for fiscal 1999, compared to $126,618,000 for fiscal
1998.
A copy of the press release 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 19, 1999.
-2-
<PAGE> 3
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 19, 1999
By: /s/ Jack R. Altherr, Jr.
--------------------------------------
Jack R. Altherr, Jr.
Vice Chairman and
Chief Financial Officer
-3-
<PAGE> 4
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
EXHIBIT NUMBER AND DESCRIPTION PAGE
- ------------------------------ ----
<S> <C>
99.1 Text of Press Release of Avondale Incorporated, dated
October 19, 1999................................................................................ 5
</TABLE>
-4-
<PAGE> 1
EXHIBIT 99.1
AVONDALE, INC. REPORTS FISCAL YEAR RESULTS
MONROE, GEORGIA
Avondale Incorporated today reported sales of $880,855,000 for the
fiscal year ended August 27, 1999, down 17% from fiscal 1998 sales of
$1,056,103,000. Net income decreased 71% to $10,023,000 in fiscal 1999 from
$34,313,000 in fiscal 1998.
G. Stephen Felker, Chairman, President and Chief Executive Officer
remarked that "Of the twenty five years I have served our Company, this was
quite possibly the most difficult. For the second consecutive year, global
supply grossly outpaced demand. All markets in the world, except that of the
United States, experienced weak consumer demand. Production from every continent
sought a piece of American consumer activity. As a result of this imbalance,
power in the marketplace is held by the consumer, and, on his behalf, the
retailer. Primary producers, like Avondale, are required to compete ferociously.
"Avondale did indeed compete well in 1999. While it is disappointing to
report lower sales and earnings, I am impressed with Avondale's ability to
exercise its flexibility and to optimize its opportunities in most areas of
operations. During the year, our Company made substantial progress towards its
goal of becoming North America's most efficient textile producer while offering
to its customers the most flexible and responsive service available in the
marketplace. I believe our record supports this claim.
"Sales in fiscal 1999 were $880,855,000, down 17% from fiscal 1998. Net
income before an extraordinary item, which relates to the write down of idled
equipment from the Graniteville Company purchase in 1996, was $13,862,000, down
61% from fiscal 1998. After the extraordinary item, fiscal 1999 net income was
$10,023,000 compared to fiscal 1998 net income of $34,313,000.
"The Company continued to invest in the competitiveness of its
facilities with $50,143,000 in capital expenditures. Capital improvements over
the past four years have exceeded $180,000,000.
"Return on beginning shareholders' equity was greater than 10%, even in
this very difficult year. Inventories were reduced by $8,000,000 in the year
while debt, including accounts receivable securitization, dropped $46,000,000.
Our Company is focused on keeping its assets at work for its shareholders."
Earnings before interest, income taxes, depreciation and amortization
("EBITDA") were $93,921,000 for fiscal 1999, compared to $126,618,000 for fiscal
1998.
#####
FOR FURTHER INFORMATION CONTACT:
Craig S. Crockard
Corporate Vice President, Planning and Development
Avondale Mills, Inc.
900 Avondale Avenue
Sylacauga, AL 35150-1899
(256) 249-1340
-5-
