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EXHIBIT 99.1
AVONDALE INCORPORATED REPORTS FISCAL YEAR RESULTS
MONROE, GEORGIA
Avondale Incorporated today reported sales of $826,580,000 for the
fiscal year ended August 25, 2000, down 6% from fiscal 1999 sales of
$880,855,000. Net income increased 229% to $33,003,000 in fiscal 2000 from
$10,023,000 in fiscal 1999.
G. Stephen Felker, Chairman, President and Chief Executive Officer
remarked that "Of the twenty six years I have served our Company, this year
ranks as one of the most difficult. For the third consecutive year, global
supply outpaced demand, forcing primary producers, like Avondale, to
aggressively seek new ways to compete. A look at the publicly reporting
companies in our industry illustrates the challenge. All in our business
segments are struggling. Financial restructurings are not uncommon and we see a
greater variety of strategies for dealing with competition and price pressure
than at any other time that I can recall.
"Avondale did indeed compete well in 2000. In addition to a decline in
raw material prices, I attribute the year's improved profitability to lower
manufacturing costs generated through investment in our facilities and the
successful implementation of an operating strategy for flexibility and high
throughput rates. Our goal continues to be that of becoming North America's most
efficient textile producer while offering customers the most flexible and
responsive service available in the marketplace. I believe our record reflects
good performance toward this goal.
In the year, Avondale committed to approximately $120,000,000 in
capital expenditures, more than in any one year in the history of the company.
Of that amount, approximately $39,000,00 was invested in fiscal 2000 and most of
the balance will be completed in 2001. Capital improvements over the past five
years have exceeded $210,000,000."
Earnings before interest, income taxes, depreciation and amortization
("EBITDA") were $115,549,000 for fiscal 2000, compared to $93,921,000 for fiscal
1999. Debt, including accounts receivable securitization, was reduced by
$39,000,000 in fiscal 2000.
Contact:
Craig S. Crockard
Corporate Vice President, Planning and Development
Avondale Mills, Inc.
900 Avondale Avenue
Sylacauga, AL 35150-1899
(256) 249-1340
