SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1996 Commission File No. 1-13082
KENNETH COLE PRODUCTIONS, INC.
(Exact name of Registrant as specified in its charter)
New York 13-3131650
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification Number)
152 West 57th Street, New York, NY 10019
(Address of Principal Executive Offices)
(212) 265-1500
Registrant's telephone number
Securities registered pursuant to Section 12(b) of the Act:
Name of Each Exchange
Title of Each Class on Which Registered
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Class A common stock, par value $.01 per share New York Stock Exchange
Securities registered pursuant to Section 12 (g) of the Act:
None
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 by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to the
best of the registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part lll of this Form 10-K or any
amendment to this Form 10-K. ( X )
Aggregate market value of the voting stock held by nonaffiliates of the
registrant as of the close of business on March 24, 1997: $ 138,039,544
Number of shares of Class A Common Stock, $.01 par value, outstanding as of
the close of business on March 24, 1997: 7,363,946
Number of shares of Class B Common Stock, $.01 par value, outstanding as of
the close of business on March 24, 1997: 5,785,398
DOCUMENTS INCORPORATED BY REFERENCE
The information required by Part III of Form 10-K is incorporated herein by
reference to the Registrant's definitive proxy statement to be mailed to the
stockholders of the Registrant by April 29, 1997
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Kenneth Cole Productions, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
1996 1995 1994
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Cash flows from operating activities
Net income ............................................................. $ 12,287,000 $ 9,824,000 $ 9,827,000
Adjustments to reconcile net income to net cash (used in)
provided by operating activities:
Depreciation and amortization ..................................... 1,109,000 794,000 477,000
Provision for doubtful accounts ................................... 35,000 35,000 91,000
Amortization of deferred compensation ............................. 228,000 225,000 152,000
Abandonment of leasehold improvements and equipment ............... 106,000
Provision (benefit) for deferred taxes ............................ 36,000 186,000 (971,000)
Changes in operating assets and liabilities:
Increase in due from factors .................................. (4,078,000) (6,105,000) (1,999,000)
Increase in accounts receivable ............................... (1,058,000) (424,000) (1,237,000)
Increase in inventories ....................................... (12,904,000) (4,585,000) (328,000)
Increase in prepaid expenses and
other current assets ........................................ (92,000) (514,000) (283,000)
Increase in deposits and sundry ............................... (786,000) (600,000) (364,000)
Increase (decrease) in income taxes payable ................... 1,497,000 (220,000) 559,000
Increase in accounts payable .................................. 5,973,000 1,129,000 1,746,000
Increase (decrease) in accrued expenses and
other current liabilities ................................... 485,000 (566,000) (2,891,000)
Increase in other non-current liabilities ..................... 747,000 551,000 108,000
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Net cash provided by (used in) operating activities .................... 3,585,000 (270,000) 4,887,000
Cash flows from investing activities
Acquisition of property and equipment, net ............................. (4,894,000) (3,320,000) (2,263,000)
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Net cash used in investing activities .................................. (4,894,000) (3,320,000) (2,263,000)
Cash flows from financing activities
Proceeds (repayment) of revolving line of credit, net .................. 440,000 (1,432,000)
Net proceeds from initial public offering .............................. 17,052,000
Proceeds from exercise of stock options ................................ 345,000 542,000 6,000
S corporation dividends paid ........................................... (12,500,000)
Distribution to shareholders ........................................... (789,000)
Repayment of notes payable to shareholders ............................. (209,000)
Repayment of long-term debt ............................................ (54,000) (63,000) (52,000)
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Net cash provided by financing activities .............................. 731,000 479,000 2,076,000
Net (decrease) increase in cash ........................................ (578,000) (3,111,000) 4,700,000
Cash, beginning of year ................................................ 2,204,000 5,315,000 615,000
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Cash, end of year ...................................................... $ 1,626,000 $ 2,204,000 $ 5,315,000
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Supplemental disclosures of cash flow information
Cash paid during the period for:
Interest ............................................................ $ 119,000 $ 82,000 $ 143,000
Income taxes ........................................................ $ 5,804,000 $ 6,357,000 $ 3,378,000
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See accompanying notes to consolidated financial statements.
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Signatures
Pursuant to the requirements of Section 13 or 15(d) 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.
KENNETH COLE PRODUCTIONS, INC.
By /s/ KENNETH D. COLE
--------------------------------
Kenneth D. Cole
President and Chief Executive Officer
Date:
Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed by the following persons on behalf of the Registrant and in the
capacities and on the dates indicated.
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Signature Title Date
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<S> <C> <C>
/S/ KENNETH D. COLE President, Chief Executive March 28, 1997
- - ------------------------------------
Kenneth D. Cole Officer and Director
/S/ STANLEY A. MAYER Executive Vice President, March 28, 1997
- - ------------------------------------
Stanley A. Mayer Chief Financial Officer,
Treasurer and Director
/S/ PAUL BLUM Executive Vice President March 28, 1997
- - ------------------------------------
Paul Blum and Director
/S/ DAVID P. EDELMAN Vice President Finance (Principal March 28, 1997
- - ------------------------------------
David P. Edelman Accounting Officer)
/S/ MARIA CUOMO COLE Director March 28, 1997
- - ------------------------------------
Maria Cuomo Cole
/S/ ROBERT C. GRAYSON Director March 28, 1997
- - ------------------------------------
Robert C. Grayson
/S/ DENIS F. KELLY Director March 28, 1997
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Denis F. Kelly
/S/ JEFFREY G. LYNN Director March 28, 1997
- - ------------------------------------
Jeffrey G. Lynn
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