<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 quarterly period ended April 4, 1998
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 1-13421
DAN RIVER INC.
(Exact name of registrant as specified in its charter)
GEORGIA 58-1854637
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2291 Memorial Drive 24541
Danville, Virginia (Zip Code)
(Address of principal executive offices)
Registrant's telephone number, including area code: (804) 799-7000
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
Number of shares of common stock outstanding as of April 4, 1998:
Class A: 16,774,086 Shares
Class B: 2,062,070 Shares
Exhibit Index is on page 14.
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<PAGE>
<PAGE> 2
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
See Following Pages.
<PAGE>
<PAGE> 3
DAN RIVER INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
April 4, January 3,
1998 1998
------------ ------------
<S> <C> <C>
(in thousands, except share
and per share data)
ASSETS
Current assets:
Cash and cash equivalents $ 2,118 $ 1,759
Accounts receivable, net 69,263 70,676
Inventories 99,274 92,376
Prepaid expenses and other current assets 5,482 5,112
Deferred income taxes 7,628 7,628
------------ ------------
Total current assets 183,765 177,551
Property, plant and equipment 330,289 321,994
Less accumulated depreciation and amortization (121,118) (113,866)
------------ ------------
Net property, plant and equipment 209,171 208,128
Other assets 6,604 6,616
------------ ------------
$ 399,540 $ 392,295
============ ============
</TABLE>
<PAGE>
<PAGE> 4
DAN RIVER INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
April 4, January 3,
1998 1998
------------ ------------
<S> <C> <C>
(in thousands, except share
and per share data)
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $ 198 $ 301
Accounts payable 30,047 27,933
Accrued compensation and related benefits 15,211 16,661
Other accrued expenses 14,023 9,052
------------ ------------
Total current liabilities 59,479 53,947
Other liabilities:
Long-term debt 139,073 143,455
Deferred income taxes 20,936 20,182
Other liabilities 8,889 8,881
Shareholders' equity:
Preferred stock, $.01 par value; authorized
50,000 shares; no shares issued -- --
Common stock, Class A, $.01 par value;
authorized 175,000,000 shares; issued
and outstanding 16,774,086 shares
(16,778,472 shares at January 3, 1998) 168 168
Common stock, Class B, $.01 par value;
authorized 35,000,000 shares; issued
and outstanding 2,062,070 shares 21 21
Common stock, Class C, $.01 par value;
authorized 5,000,000 shares; no shares
outstanding -- --
Additional paid-in capital 139,140 139,140
Retained earnings 31,834 26,501
------------ ------------
Total shareholders' equity 171,163 165,830
------------ ------------
$ 399,540 $ 392,295
============ ============
</TABLE>
See accompanying notes.<PAGE>
<PAGE> 5
DAN RIVER INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Three Months Ended
--------------------------
April 4, March 29,
1998 1997
--------- ---------
(in thousands, except per share data)
<S> <C> <C>
Net sales $ 120,943 $ 105,736
Costs and expenses:
Cost of sales 94,898 85,587
Selling, general and
administrative expenses 13,901 11,861
--------- ---------
Operating income 12,144 8,288
Other income 280 40
Interest expense (3,820) (5,085)
--------- ---------
Income before income taxes 8,604 3,243
Provision for income taxes 3,202 1,250
--------- ---------
Net income $ 5,402 $ 1,993
========= =========
Earnings per share:
Basic $ 0.29 $ 0.14
========= =========
Diluted $ 0.28 $ 0.14
========= =========
</TABLE>
See accompanying notes.
<PAGE>
<PAGE> 6
DAN RIVER INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Three Months Ended
---------------------------
April 4, March 29,
1998 1997
------------ ------------
(in thousands)
<S> <C> <C>
Cash flows from operating activities:
Net income $ 5,402 $ 1,993
Adjustments to reconcile net income to
net cash provided by operating activities:
Noncash interest expense 316 293
Depreciation and amortization 7,557 6,740
Deferred income taxes 754 300
Writedown/disposal of assets 31 19
Changes in operating assets and liabilities,
excluding effects of business acquired:
Accounts receivable 1,392 4,442
Inventories (6,897) (2,379)
Prepaid expenses and other assets (1,378) (366)
Accounts payable and accrued expenses 5,334 6,119
Other liabilities 7 209
---------- ----------
Net cash provided by operating
activities 12,518 17,370
---------- ----------
Cash flows from investing activities:
Capital expenditures (8,379) (5,469)
Proceeds from sale of assets 705 73
Acquisition of business -- (66,330)
---------- ----------
Net cash used by investing activities (7,674) (71,726)
---------- ----------
Cash flows from financing activities:
Payments of long-term debt (485) (1,731)
Proceeds from issuance of long-term debt -- 53,615
Net borrowings (payments) - working capital
facility (4,000) 612
---------- ----------
Net cash provided (used) by financing
activities (4,485) 52,496
---------- ----------
Net increase (decrease) in cash and cash equivalents 359 (1,860)
Cash and cash equivalents at beginning of period 1,759 5,042
---------- ----------
Cash and cash equivalents at end of period $ 2,118 $ 3,182
========== ==========
</TABLE>
See accompanying notes.
<PAGE>
<PAGE>7
DAN RIVER INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of Presentation
The accompanying unaudited condensed consolidated financial statements
include the accounts of Dan River Inc. and its wholly-owned subsidiary,
Dan River Factory Stores, Inc. (together, the "Company"). In the opinion
of management, all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation of results for the interim
periods presented have been included. Interim results are not necessarily
indicative of results for a full year. For further information, refer to
the consolidated financial statements and notes thereto included in the
Company's Annual Report on Form 10-K for the year ended January 3, 1998.
2. Inventories
The components of inventory are as follows:
<TABLE>
<CAPTION>
April 4, January 3,
1998 1998
------------ ------------
(in thousands)
<S> <C> <C>
Finished goods $ 33,548 $ 25,401
Work in process 54,850 56,156
Raw materials 2,634 2,429
Supplies 8,242 8,390
-------- --------
Total Inventories $ 99,274 $ 92,376
======== ========
</TABLE>
3. Shareholders' Equity
Activity in Shareholders' Equity is as follows:
<TABLE>
<CAPTION>
Total
Additional Share-
Common Stock Paid-In Retained holders'
Class A Class B Capital Earnings Equity
------- -------- ---------- -------- ----------
(in thousands)
<S> <C> <C> <C> <C> <C>
Balance at Janu-
ary 3, 1998 $ 168 $ 21 $139,140 $26,501 $165,830
Net income -- -- -- 5,402 5,402
Retirement of
Common Stock -- -- -- (69) (69)
------ ------ -------- ------- --------
Balance at April
4, 1998 $ 168 $ 21 $139,140 $31,834 $171,163
======= ====== ======== ======= ========
</TABLE>
<PAGE>
<PAGE> 8
4. Earnings Per Share
The following table sets forth the computation of basic and diluted
earnings per share:
<TABLE>
<CAPTION>
Three Months Ended
---------------------------
April 4, March 29,
1998 1997
------------ ------------
<S> <C> <C>
Numerator for basic and diluted earnings
per share -- net income $ 5,402,000 $ 1,993,000
=========== ===========
Denominator:
Denominator for basic earnings per share--
weighted-average shares 18,837,866 14,155,165
Effect of dilutive securities:
Employee stock options 236,184 73,084
----------- -----------
Denominator for diluted earnings per share--
weighted average shares adjusted for
dilutive securities 19,074,050 14,228,249
=========== ===========
Basic earnings per share $ 0.29 $ 0.14
=========== ===========
Diluted earnings per share $ 0.28 $ 0.14
=========== ===========
</TABLE>
5. Recent Accounting Pronouncements
The Company adopted Statement of Financial Accounting Standards No. 130,
"Reporting Comprehensive Income" ("SFAS 130"), at the beginning of fiscal
year 1998. SFAS 130 establishes standards for the reporting and display
of comprehensive income and its components in financial statements.
Comprehensive income includes net income and other items, such as minimum
pension liability adjustments, which previously were reported directly in
shareholders' equity. There were no differences between net income and
comprehensive income for the quarters ended April 4, 1998 and March 29,
1997. In addition, accumulated other comprehensive income was $-0- at
April 4, 1998 and January 3, 1998.
In February 1998, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 132, "Employers'
Disclosures about Pensions and Other Postretirement Benefits" ("SFAS
132"). This standard revises financial statement disclosures about
pensions and other postretirement benefit plans, but does not change the
measurement or recognition of costs or obligations under these plans.
SFAS 132 is effective for the Company's 1999 fiscal year.
<PAGE>
<PAGE> 9
In March 1998, the American Institute of Certified Public Accountants
issued Statement of Position 98-1, "Accounting for the Costs of Computer
Software Developed or Obtained for Internal Use" ("SOP 98-1"), which
requires capitalization of certain costs to develop or obtain software for
internal use. SOP 98-1 is effective for fiscal years beginning after
December 15, 1998, with earlier application permitted. The Company has
not yet assessed the impact of SOP 98-1, but it will likely result in
capitalization of certain costs which previously would have been expensed.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
RESULTS OF OPERATIONS
Net sales for the first quarter of 1998 were $120.9 million, an increase of
$15.2 million (14.4%) compared to the first quarter of 1997. Sales of home
fashions products increased $13.8 million or 24.7%, while sales of apparel
fabrics were up $1.4 million or 2.9%.
The increase in sales of home fashions products was due primarily to higher
unit volumes reflecting the initial shipment of certain new programs during the
quarter. The increase in sales of apparel fabrics resulted from the inclusion
of sales from the acquisition of The New Cherokee Corporation ("TNCC") for
thirteen weeks in the first quarter of 1998 versus eight weeks in last year's
first quarter, offset somewhat by the absence of sales from the Company's
Wetumpka, Alabama yarn operation that was sold at the end of 1997.
Gross profit for the first quarter of 1998 was $26.0 million, 21.5% of sales,
which is up $5.9 million or 29.3%, from the first quarter of 1997 during which
gross profit represented 19.1% of sales. The increase in gross profit was due
to lower manufacturing costs in apparel fabrics as a result of the acquisition
of TNCC and the closure of the Company's Riverside weaving plant, higher unit
volumes and lower raw material prices, offset somewhat by sales of a less
profitable mix of home fashions products and increased costs from outside
suppliers to support the higher home fashions sales.
Selling, general and administrative expenses for the first quarter of 1998 were
$13.9 million (11.5% of sales) compared to $11.9 million (11.2% of sales) in
the first quarter of 1997, an increase of $2.0 million or 17.2%. The increase
was caused by higher costs in the information systems area, higher spending to
support the Company's Nautica line of home fashions products, a higher level of
accrued incentive compensation and higher administrative costs associated with
public ownership of the Company's stock.
Due to the factors described above, operating income for the first quarter of
1998 was $12.1 million, up $3.9 million or 46.5% from the first quarter of
1997.
Interest expense for the first quarter of 1998 was $3.8 million, a decrease of
$1.3 million or 24.9% from the first quarter of 1997. The decrease in interest
expense reflects primarily lower debt levels as a result of the Company's
initial public offering of common stock in November 1997, from which it used
<PAGE>
<PAGE> 10
net proceeds of $64.5 million to reduce debt, and to a lesser extent lower
interest rates due to the Company's improved capital structure as a result of
the offering.
An income tax provision of $3.2 million was recorded in the first quarter of
1998 (37.2% of pre-tax income) compared to an income tax provision of $1.3
million (38.5% of pre-tax income) recorded in the first quarter of 1997. The
increase in the provision relates to the higher level of pre-tax income, while
the lower provision rate reflects a small tax-free gain on an insurance claim
reflected under other income. Accordingly, net income was $5.4 million or
$0.29 per basic share on 18,838,000 shares outstanding for the first quarter of
1998 compared to $2.0 million or $0.14 per basic share on 14,155,000 shares
outstanding for the first quarter of 1997.
LIQUIDITY AND CAPITAL RESOURCES
General
The Company believes that internally generated cash flow, supplemented by
borrowings under its working capital line of credit, will be sufficient to meet
its foreseeable debt service requirements, capital expenditures, and working
capital needs. The Company had a debt to total capital ratio of 44.9% at April
4, 1998.
Credit Facilities and Vendor Financing
The Company maintains a $90 million secured working capital line of credit.
The working capital line of credit is tied to a borrowing base formula and is
secured by the Company's accounts receivable and inventories. As of April 4,
1998, $14.5 million was used and $67.6 million was unused and available for
borrowing.
The working capital line of credit bears interest at the Base Rate, as defined
(8.50% as of April 27, 1998) or LIBOR plus .75% (6.44% as of April 27, 1998),
for periods of one, three or six months, at the Company's option. The working
capital line is nonamortizing and any amounts outstanding are due at the final
maturity of February 28, 2001.
The working capital line of credit is provided pursuant to a Loan and Security
Agreement which contains certain covenants including requirements for the
maintenance of a certain cash interest coverage ratio and a minimum net worth.
Working Capital
Net cash generated from operating activities was $12.5 million in the three
months ended April 4, 1998. Included in that amount is a use of cash for
operating assets and liabilities of $1.5 million, primarily comprised of a $0.2
million use for operating working capital (accounts receivable - $1.4 million
source, inventories - $6.9 million use, and accounts payable and accrued
expenses - $5.3 million source) and a $1.4 million use of cash for prepaid
expenses and other assets.
During the comparable three month period ended March 27, 1997, net cash
generated from operating activities was $17.4 million. Included in that amount
<PAGE>
<PAGE> 11
is a source of cash from operating assets and liabilities of $8.0 million,
primarily comprised of a $8.2 million source from operating working capital
(accounts receivable - $4.4 million source, inventories - $2.4 million use, and
accounts payable and accrued expenses - $6.1 million source).
Capital Improvements
During the first three months of 1998, the Company purchased $8.4 million in
equipment and manufacturing improvements. The Company expects to continue
modernizing and making capital improvements over the next several years, which
are anticipated to be financed through cash generated by operations and
borrowings under the working capital line of credit.
<PAGE>
<PAGE> 12
PART II - OTHER INFORMATION
Items 1 - 5. No disclosure required.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits.
The Exhibits listed as applicable on the accompanying Exhibit
Index are filed as part of this Quarterly Report.
(b) Reports on Form 8-K. None.
<PAGE>
<PAGE> 13
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 thereunto duly authorized.
DAN RIVER INC.
<TABLE>
<S> <C>
Date: May 6, 1998 /s/ Barry F. Shea
-----------------------------------
Barry F. Shea
Vice President-Chief Financial Officer
(Authorized Signing Officer and
Principal Financial Officer)
</TABLE>
<PAGE>
<PAGE> 14
EXHIBIT INDEX
-------------
<TABLE>
<CAPTION>
Exhibit No. Description of Exhibit Page
- ----------- ---------------------- ----
<S> <C> <C>
11 Statement regarding Computation of
Earnings per share. See Financial
Statements and Notes thereto
included in this Quarterly Report
on Form 10-Q.
27 Financial Data Schedule as of and for the
three months ended April 4, 1998. 15
27.1 Restated Financial Data Schedule as of
and for the six months ended June 29, 1996. 16
27.2 Restated Financial Data Schedule as of
and for the nine months ended September
28, 1996. 17
27.3 Restated Financial Data Schedule as of and
for the three months ended March 29, 1997. 18
27.4 Restated Financial Data Schedule as of and
for the six months ended June 28, 1997. 19
27.5 Restated Financial Data Schedule as of and
for the nine months ended September 27, 1997. 20
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONDENSED CONSOLIDATED BALANCE SHEET OF DAN RIVER INC. AS OF APRIL 4, 1998 AND
THE RELATED CONDENSED CONSOLIDATED STATEMENT OF INCOME FOR THE THREE MONTHS
ENDED APRIL 4, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JAN-02-1999
<PERIOD-END> APR-04-1998
<CASH> 2,118
<SECURITIES> 0
<RECEIVABLES> 69,263
<ALLOWANCES> 0
<INVENTORY> 99,274
<CURRENT-ASSETS> 183,765
<PP&E> 330,289
<DEPRECIATION> 121,118
<TOTAL-ASSETS> 399,540
<CURRENT-LIABILITIES> 59,479
<BONDS> 139,073
0
0
<COMMON> 189
<OTHER-SE> 170,974
<TOTAL-LIABILITY-AND-EQUITY> 399,540
<SALES> 120,943
<TOTAL-REVENUES> 120,943
<CGS> 94,898
<TOTAL-COSTS> 94,898
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 3,820
<INCOME-PRETAX> 8,604
<INCOME-TAX> 3,202
<INCOME-CONTINUING> 5,402
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5,402
<EPS-PRIMARY> 0.29
<EPS-DILUTED> 0.28
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONDENSED CONSOLIDATED BALANCE SHEET OF DAN RIVER INC. AS OF JUNE 29, 1996
(RESTATED) AND THE RELATED CONDENSED CONSOLIDATED STATEMENT OF INCOME FOR THE
SIX MONTHS ENDED JUNE 29, 1996 (RESTATED) AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-28-1996
<PERIOD-END> JUN-29-1996
<CASH> 2,352
<SECURITIES> 0
<RECEIVABLES> 50,725
<ALLOWANCES> 0
<INVENTORY> 92,936
<CURRENT-ASSETS> 156,312
<PP&E> 257,128
<DEPRECIATION> 89,459
<TOTAL-ASSETS> 329,413
<CURRENT-LIABILITIES> 51,581
<BONDS> 173,005
7,000
0
<COMMON> 141
<OTHER-SE> 73,469
<TOTAL-LIABILITY-AND-EQUITY> 329,413
<SALES> 176,941
<TOTAL-REVENUES> 176,941
<CGS> 145,074
<TOTAL-COSTS> 145,074
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 9,442
<INCOME-PRETAX> (154)
<INCOME-TAX> (62)
<INCOME-CONTINUING> (92)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (92)
<EPS-PRIMARY> (0.01)
<EPS-DILUTED> (0.01)
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONDENSED CONSOLIDATED BALANCE SHEET OF DAN RIVER INC. AS OF SEPTEMBER 28, 1996
(RESTATED) AND THE RELATED CONDENSED CONSOLIDATED STATEMENT OF INCOME FOR THE
NINE MONTHS ENDED SEPTEMBER 28, 1996 (RESTATED) AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-28-1996
<PERIOD-END> SEP-28-1996
<CASH> 1,941
<SECURITIES> 0
<RECEIVABLES> 52,060
<ALLOWANCES> 0
<INVENTORY> 87,606
<CURRENT-ASSETS> 150,976
<PP&E> 265,268
<DEPRECIATION> 94,673
<TOTAL-ASSETS> 327,028
<CURRENT-LIABILITIES> 52,965
<BONDS> 167,146
7,338
0
<COMMON> 141
<OTHER-SE> 75,436
<TOTAL-LIABILITY-AND-EQUITY> 327,028
<SALES> 272,031
<TOTAL-REVENUES> 272,031
<CGS> 220,975
<TOTAL-COSTS> 220,975
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 13,959
<INCOME-PRETAX> 3,660
<INCOME-TAX> 1,447
<INCOME-CONTINUING> 2,213
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,213
<EPS-PRIMARY> 0.16
<EPS-DILUTED> 0.16
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONDENSED CONSOLIDATED BALANCE SHEET OF DAN RIVER INC. AS OF MARCH 29, 1997
(RESTATED) AND THE RELATED CONDENSED CONSOLIDATED STATEMENT OF INCOME FOR THE
THREE MONTHS ENDED MARCH 29, 1997 (RESTATED) AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JAN-03-1998
<PERIOD-END> MAR-29-1997
<CASH> 3,182
<SECURITIES> 0
<RECEIVABLES> 68,338
<ALLOWANCES> 0
<INVENTORY> 87,599
<CURRENT-ASSETS> 166,218
<PP&E> 324,535
<DEPRECIATION> 105,970
<TOTAL-ASSETS> 391,101
<CURRENT-LIABILITIES> 63,901
<BONDS> 213,400
10,723
0
<COMMON> 141
<OTHER-SE> 78,753
<TOTAL-LIABILITY-AND-EQUITY> 391,101
<SALES> 105,736
<TOTAL-REVENUES> 105,736
<CGS> 85,587
<TOTAL-COSTS> 85,587
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 5,085
<INCOME-PRETAX> 3,243
<INCOME-TAX> 1,250
<INCOME-CONTINUING> 1,993
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,993
<EPS-PRIMARY> 0.14
<EPS-DILUTED> 0.14
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONDENSED CONSOLIDATED BALANCE SHEET OF DAN RIVER INC. AS OF JUNE 28, 1997
(RESTATED) AND THE RELATED CONDENSED CONSOLIDATED STATEMENT OF INCOME FOR THE
SIX MONTHS ENDED JUNE 28, 1997 (RESTATED) AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JAN-03-1998
<PERIOD-END> JUN-28-1997
<CASH> 1,823
<SECURITIES> 0
<RECEIVABLES> 70,457
<ALLOWANCES> 0
<INVENTORY> 95,951
<CURRENT-ASSETS> 178,000
<PP&E> 307,369
<DEPRECIATION> 102,008
<TOTAL-ASSETS> 390,387
<CURRENT-LIABILITIES> 62,218
<BONDS> 212,726
10,884
0
<COMMON> 141
<OTHER-SE> 78,913
<TOTAL-LIABILITY-AND-EQUITY> 390,387
<SALES> 227,935
<TOTAL-REVENUES> 227,935
<CGS> 180,720
<TOTAL-COSTS> 180,720
<OTHER-EXPENSES> 7,875
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 10,599
<INCOME-PRETAX> 3,766
<INCOME-TAX> 1,452
<INCOME-CONTINUING> 2,314
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,314
<EPS-PRIMARY> 0.16
<EPS-DILUTED> 0.16
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONDENSED CONSOLIDATED BALANCE SHEET OF DAN RIVER INC. AS OF SEPTEMBER 27, 1997
(RESTATED) AND THE RELATED CONDENSED CONSOLIDATED STATEMENT OF INCOME FOR THE
NINE MONTHS ENDED SEPTEMBER 27, 1997 (RESTATED) AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
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13,389
0
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