<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-----------------------
F O R M 10-Q
For the Quarter Ended July 4, 1998 Commission File Number 1-5315
-----------------------
S P R I N G S I N D U S T R I E S, I N C.
(Exact name of registrant as specified in its charter)
SOUTH CAROLINA 57-0252730
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
205 North White Street
Fort Mill, South Carolina 29715
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(803) 547-1500
-----------------------
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 at least the past 90 days.
Yes X No
----- -----
-----------------------
As of August 7, 1998, there were 11,262,931 shares of Class A Common Stock and
7,196,914 shares of Class B Common Stock of Springs Industries, Inc.
outstanding.
-----------------------
There are 15 pages in the sequentially numbered, manually signed original of
this report.
The Index to Exhibits is on Page 14
<PAGE> 2
TABLE OF CONTENTS TO FORM 10-Q
<TABLE>
<CAPTION>
PART I - FINANCIAL INFORMATION
ITEM PAGE
- ---- ----
<S> <C> <C>
1. FINANCIAL STATEMENTS 3
2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF 9
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
PART II - OTHER INFORMATION
ITEM PAGE
- ---- ----
6. EXHIBITS 12
SIGNATURES 13
EXHIBIT INDEX 14
</TABLE>
<PAGE> 3
PART I
ITEM I - FINANCIAL STATEMENTS
SPRINGS INDUSTRIES, INC.
Consolidated Statement of Operations
and Retained Earnings
(In thousands except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED
-------------------------- -----------------------------
JULY 4, JUNE 28, JULY 4, JUNE 28,
1998 1997 1998 1997
---------- ---------- ----------- -----------
<S> <C> <C> <C> <C>
OPERATIONS
Net sales .............................. $ 537,082 $ 528,931 $ 1,093,818 $ 1,071,940
Cost and expenses:
Cost of goods sold ................... 443,877 430,828 898,936 877,585
Selling, general and
administrative expenses ............ 65,815 65,243 137,621 133,796
Provision for uncollectible
receivables ........................ 8,915 2,782 12,110 4,983
Restructuring and
realignment expenses ............... 1,240 2,221 26,090 4,984
Year 2000 expenses ................... 2,331 410 3,751 688
Interest expense ..................... 6,504 4,705 12,058 9,226
Other (income) expense ............... (480) 300 (624) 151
---------- ---------- ----------- -----------
Total .............................. 528,202 506,489 1,089,942 1,031,413
---------- ---------- ----------- -----------
Income before income taxes ............. 8,880 22,442 3,876 40,527
Income tax provision ................... 3,379 7,315 1,474 14,189
---------- ---------- ----------- -----------
Net income ........................... $ 5,501 $ 15,127 $ 2,402 $ 26,338
========== ========== =========== ===========
Earnings per common share - basic ...... $ .29 $ .75 $ .13 $ 1.31
========== ========== =========== ===========
Earnings per common share - diluted .... $ .28 $ .73 $ .12 $ 1.27
========== ========== =========== ===========
Cash dividends declared:
Class A shares ....................... $ .33 $ .33 $ .66 $ .66
========== ========== =========== ===========
Class B shares ....................... $ .30 $ .30 $ .60 $ .60
========== ========== =========== ===========
Basic weighted-average common shares
outstanding ........................... 18,850 20,158 19,123 20,155
Dilutive effect of stock-based
compensation awards ................... 466 561 509 511
---------- ---------- ----------- -----------
Diluted weighted-average shares
outstanding ........................... 19,316 20,719 19,632 20,666
========== ========== =========== ===========
RETAINED EARNINGS
Retained earnings at beginning
of period ............................ $ 663,008 $ 680,309 $ 701,354 $ 675,533
Net income ............................. 5,501 15,127 2,402 26,338
Repurchase of Class A common stock ..... (28,194) -- (57,253) --
Cash dividends declared ................ (6,019) (6,436) (12,207) (12,871)
---------- ---------- ----------- -----------
Retained earnings at end of period ..... $ 634,296 $ 689,000 $ 634,296 $ 689,000
========== ========== =========== ===========
</TABLE>
See Notes to Condensed Consolidated Financial Statements.
-3-
<PAGE> 4
SPRINGS INDUSTRIES, INC.
Condensed Consolidated Balance Sheet
(In thousands except share data)
(Unaudited)
<TABLE>
<CAPTION>
JULY 4, JANUARY 3,
1998 1998
------------ ------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents ................................ $ 762 $ 373
Accounts receivable, net ................................. 325,352 317,702
Inventories, net ......................................... 462,714 420,295
Other .................................................... 47,281 48,309
------------ ------------
Total current assets ................................... 836,109 786,679
------------ ------------
Property, plant and equipment .............................. 1,375,950 1,340,154
Accumulated depreciation ................................. (825,938) (799,623)
------------ ------------
Property, plant and equipment, net ..................... 550,012 540,531
------------ ------------
Other assets ............................................... 85,282 81,533
------------ ------------
Total .................................................. $ 1,471,403 $ 1,408,743
============ ============
LIABILITIES AND SHAREOWNERS' EQUITY
Current liabilities:
Short-term borrowings .................................... $ 38,400 $ 7,450
Current maturities of long-term debt ..................... 21,208 14,452
Accounts payable ......................................... 88,929 92,135
Accrued restructuring costs .............................. 11,532 4,647
Other accrued liabilities ................................ 97,568 121,409
------------ ------------
Total current liabilities .............................. 257,637 240,093
------------ ------------
Noncurrent liabilities:
Long-term debt ........................................... 275,609 164,287
Accrued benefits and deferred
compensation ............................................ 180,476 173,681
Other .................................................... 24,915 26,084
------------ ------------
Total noncurrent liabilities ........................... 481,000 364,052
------------ ------------
Shareowners' equity:
Class A common stock- $.25 par value
(11,487,228 and 12,601,757 shares
issued in 1998 and 1997, respectively) ................. 2,872 3,150
Class B common stock- $.25 par value
(7,263,960 and 7,270,921 shares issued
and outstanding in 1998 and 1997,
respectively)........................................... 1,816 1,818
Additional paid-in capital ............................... 105,010 108,684
Retained earnings ........................................ 634,296 701,354
Cost of Class A shares in treasury
(98,940 and 101,091 shares in 1998
and 1997, respectively) ................................ (2,243) (2,276)
Currency translation adjustment and other ................ (8,985) (8,132)
------------ ------------
Total shareowners' equity .............................. 732,766 804,598
------------ ------------
Total .................................................. $ 1,471,403 $ 1,408,743
============ ============
</TABLE>
See Notes to Condensed Consolidated Financial Statements.
4
<PAGE> 5
SPRINGS INDUSTRIES, INC.
Condensed Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)
<TABLE>
<CAPTION>
TWENTY-SIX WEEKS ENDED
JULY 4, JUNE 28,
1998 1997
------------ ------------
<S> <C> <C>
Operating activities:
Net income ............................................. $ 2,402 $ 26,338
Adjustments to reconcile net income to
net cash provided (used) by operating
activities:
Depreciation and amortization ......................... 45,372 44,954
Provision for restructuring costs ..................... 23,049 --
Provision for uncollectible receivables ............... 12,110 4,983
Changes in working capital, net ....................... (90,876) (39,036)
Other, net ............................................ (1,569) (5,254)
------------ ------------
Net cash provided (used) by operating
activities ........................................ (9,512) 31,985
------------ ------------
Investing activities:
Purchases of property, plant and
equipment ............................................ (64,500) (39,796)
Business acquisition ................................... -- (6,429)
Principal collected on notes receivable ................ 4,215 1,211
Notes receivable ....................................... (35) (8,000)
Proceeds from sales of assets .......................... 996 913
------------ ------------
Net cash used by investing activities .............. (59,324) (52,101)
------------ ------------
Financing activities:
Proceeds from short-term borrowings, net ............... 30,950 10,600
Proceeds from long-term borrowings ..................... 125,125 --
Repayments of long-term debt ........................... (7,047) (1,235)
Repurchase of Class A shares ........................... (63,123) --
Proceeds from exercise of stock options ................ 1,876 --
Cash dividends paid .................................... (18,556) (19,295)
------------ ------------
Net cash provided (used) by financing
activities ........................................ 69,225 (9,930)
------------ ------------
Increase (decrease) in cash and cash
equivalents ............................................. $ 389 $ (30,046)
============ ============
</TABLE>
See Notes to Condensed Consolidated Financial Statements.
5
<PAGE> 6
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Significant Accounting Policies:
The accompanying condensed consolidated financial statements should be read
in conjunction with the financial statements presented in the Springs
Industries, Inc. ("Springs" or the "Company") 1997 Annual Report on Form
10-K.
In the opinion of the management of Springs, these unaudited condensed
consolidated financial statements contain all adjustments of a normal
recurring nature necessary for their fair presentation. The results for
interim periods reflect estimates for certain items which can be
definitively determined only on an annual basis. These items include the
valuation of a substantial portion of inventories on a LIFO cost basis and
the provision for income taxes. These interim financial statements reflect
applicable portions of the estimated annual amounts for such items.
The results of operations for interim periods are not necessarily indicative
of operating results to be expected for the remainder of the year.
2. Receivables:
During the second quarter of 1998, the Company increased its provision for
uncollectible receivables in its window fashions business by $7.5 million
($4.7 million after taxes, or $0.24 per diluted share).
3. Inventories:
Inventories are summarized as follows (in thousands):
<TABLE>
<CAPTION>
July 4, Jan. 3,
1998 1998
------------ ------------
<S> <C> <C>
Standard cost (which approximates
average cost) or average cost:
Finished goods ........................................ $ 308,758 $ 280,316
In process ............................................ 212,419 199,600
Raw materials and supplies ............................ 59,962 59,381
------------ ------------
581,139 539,297
Less LIFO reserve ...................................... (118,425) (119,002)
------------ ------------
Total ................................................. $ 462,714 $ 420,295
============ ============
</TABLE>
4. Restructuring and Realignment Costs:
During the first quarter of 1998, the Company adopted a plan to close its
Rock Hill Printing and Finishing Plant. A pretax charge of $23.0 million was
recorded in the first quarter of 1998, which included an $11.3 million
write-off of plant and equipment, a $4.0 million accrual for anticipated
severance costs arising from the elimination of approximately 480 positions,
and a $7.7 million accrual for certain other anticipated expenses associated
with the closing
6
<PAGE> 7
of the facility. Through July 4, 1998, the Company has recorded cash
expenditures of approximately $1.4 million against the severance accrual and
$0.7 million against the accrual for certain other expenses associated with
the plan. In addition, during the second quarter of 1998, the Company
incurred expenses of $0.5 million for equipment relocation and other
realignment expenses related to the plan which do not qualify as "exit
costs."
During the second quarter of 1996, the Company adopted a plan to consolidate
and realign its fabric manufacturing operations. The Company recorded a
pretax restructuring charge of $30.4 million during the second quarter of
1996 which included a $16.3 million write-off of plant and equipment, a $6.6
million accrual for anticipated severance arising from the elimination of
approximately 850 positions, and a $7.5 million accrual for certain other
anticipated expenses associated with the plan. Through July 4, 1998, the
Company has recorded cash expenditures of approximately $4.4 million against
the severance accrual and $5.8 million against the accrual for certain other
expenses associated with the plan. Through the second quarter of 1998, the
severance accrual was reduced by $1.4 million due to a lower-than-expected
average cost per associate, and the accrual for certain other expenses
associated with the plan was reduced by $0.6 million. In addition, the
Company has incurred expenses of $18.4 million, including $3.5 million in
1998, for equipment relocation and other realignment expenses related to the
plan that do not qualify as "exit costs."
5. Long-Term Debt:
During the six months ended July 4, 1998, the Company borrowed $125 million
under its existing long-term loan facility at a variable rate, which is
currently 6 percent. Subsequent to quarter end, management entered into an
interest rate swap agreement for a notional amount of $60 million to fix the
interest cost on this portion of the $125 million long-term loan.
6. Other:
The "Year 2000 Computer Problem" creates risk for the Company from
unforeseen problems in its own computer systems and those of third parties
with whom the Company conducts business transactions. For this reason, the
Company conducted a formal Year 2000 risk assessment of its information
technology in 1997. The assessment addressed all business applications,
computer hardware and software, personal computers, and embedded technology
in manufacturing machinery. Remediation efforts began in 1997 to address
areas not in compliance or not already scheduled for replacement. Also,
efforts began in 1997 to correspond with all customers and external vendors
to establish their degree of readiness for Year 2000. This is an on-going
effort which will continue through 1999 and which will cover all of the
Company's significant EDI relationships. The Company presently expects to
spend approximately $15 million during 1998 and 1999 to modify its computer
information systems to ensure the proper processing of transactions relating
to the Year 2000 and beyond. The Company expects to be fully compliant for
company technology in 1999.
Year 2000-related failures of the Company's and/or third parties' computer
systems could have a material impact on the Company's ability to conduct its
business. Management currently believes that Company information systems
affected by the Year 2000 issues have been identified and that its
implementation plans will ensure compliance for its systems by the Year
2000.
In 1997, the Financial Accounting Standards Board ("FASB") issued Statement
No. 130, "Reporting Comprehensive Income," which was required to be adopted
for fiscal years beginning after December 15, 1997. This Statement
establishes standards for reporting and displaying
7
<PAGE> 8
comprehensive income. Comprehensive income was $1.9 million for the first
six months of 1998 and $27.2 million for the first half of 1997. The
differences between net income and comprehensive income were accumulated
foreign currency translation adjustments of $(529) thousand for the first
six months of 1998 and accumulated foreign currency translation adjustments
of $33 thousand and unrealized gains on securities of $814 thousand for the
first half of 1997.
In June 1998, the FASB issued Statement No. 133, "Accounting for Derivative
Instruments and Hedging Activities." This statement, which addresses the
accounting for derivative instruments, will be effective for all fiscal
quarters of fiscal years beginning after June 15, 1999. The Company has not
determined the impact of its financial position, results of operations, or
cash flows.
7. Legal and Environmental:
As disclosed in the 1997 Annual Report on Form 10-K, Springs is involved in
certain administrative proceedings alleging violations of environmental laws
and regulations, including proceedings under the Comprehensive Environmental
Response, Compensation, and Liability Act. In connection with these
proceedings, the Company has accrued an amount which represents management's
best estimate of Springs' probable liability.
Springs is also involved in various other legal proceedings and claims
incidental to its business. Springs is protecting its interests in all such
proceedings.
In the opinion of management, based on the advice of counsel, the likelihood
that the resolution of the above matters would have a material adverse
impact on either the financial condition or the future results of operations
of Springs is remote.
8. Subsequent Events:
On August 7, 1998, the Company sold the UltraSuede assets of its
UltraFabrics division. In connection with this sale, the Company received a
cash payment of approximately $15 million, which is subject to certain
adjustment provisions included in the agreement. A gain approximating $10
million on this transaction will be included in other (income) expense in
the Company's third-quarter earnings.
In August 1998, the Company's Board of Directors authorized management to
purchase, from time to time, up to an additional 2 million shares of Class A
common stock in open-market and privately negotiated transactions. Of the
previously authorized purchase of 2 million Class A shares, the Company has
repurchased 1,581,700 shares through the second quarter of 1998.
8
<PAGE> 9
ITEM 2. - MANAGEMENT'S DISCUSSION AND ANALYSIS
RESULTS OF OPERATIONS
Sales
Net sales for the second quarter of 1998 were $537.1 million, up 1.5 percent
from the second quarter of 1997. In the home furnishings segment, second-quarter
sales were $458.9 million, up 2.0 percent from a year ago. Second-quarter net
sales for the specialty fabrics segment were $78.2 million, 1.3 percent lower
than last year.
Year-to-date net sales were $1,093.8 million, up 2.0 percent compared to the
first six months of 1997. Home furnishings net sales were 2.2 percent higher
than during the first six months of 1997. Year-to-date net sales for the
specialty fabrics segment were 1.4 percent higher than a year ago.
Earnings
Net income for the second quarter of 1998 was $5.5 million, or $0.28 per diluted
share, after the effects of realignment expenses associated with the Company's
restructuring of its fabric manufacturing operations and the closing of its Rock
Hill Printing and Finishing facility. Net income has also been reduced by
expenses incurred to modify the Company's computer information systems so as to
make them Year 2000 compliant. Last year's second-quarter net income, which also
included the effect of realignment expenses relating to the restructuring of
fabric manufacturing operations, and, to a lesser extent, Year 2000 compliance
expenses, was $15.1 million, or $0.73 per diluted share. Without these items,
net income for the second quarter of 1998 would have been $7.7 million, or $0.40
per diluted share, compared to $16.8 million, or $0.81 per diluted share, a year
ago. This year's second-quarter results include a $7.5 million pretax charge for
uncollectible receivables in the Company's window fashions business, which
reduced net income by $0.24 per diluted share. Second-quarter pretax operating
profit for the home furnishings segment was lower than during the second quarter
of 1997 by $15.8 million. Contributing to the profit decline were: the $7.5
million provision for bad debts, disappointing sales of certain licensed bed
fashions, and a more promotional sales mix, related in part to the Company's
efforts to reduce its inventories. The specialty fabrics segment improved its
second-quarter pretax operating profit by $3.3 million over last year. The
profit growth occurred primarily in the Company's home-sewing fabric business.
Net income for the six months ended July 4, 1998, was $2.4 million, or $0.12 per
diluted share, compared to $26.3 million, or $1.27 per diluted share, a year
ago. The decline in earnings was due principally to a first-quarter 1998
restructuring charge associated with the Company's decision to close the Rock
Hill facility, which reduced net income by $14.3 million, or $0.73 per diluted
share, and the aforementioned second-quarter 1998 bad debt expense. Excluding
the effects of restructuring and realignment expenses and Year 2000 costs, net
income for the first half of 1998 would have been $20.9 million, or $1.06 per
diluted share, compared to last year's $29.9 million, or $1.44 per diluted
share. In the home furnishings segment, year-to-date pretax earnings were lower
than a year ago by $18 million, due to lower margins in the Company's bed
fashions business, the bad debt expense recorded in the second quarter of
9
<PAGE> 10
1998 for the uncollectible receivables, and the more promotional sales mix
related in part to the Company's efforts to reduce its inventories. Year to date
pretax operating profits for the specialty fabrics segment were significantly
below last year due to the restructuring charge recorded in the first quarter of
1998. Excluding the restructuring charge, realignment expenses and Year 2000
expenses, pretax profits for the specialty fabrics segment were $6.6 million
higher than a year ago.
CAPITAL RESOURCES AND LIQUIDITY
During the six months ended July 4, 1998, the Company borrowed $125 million
under its existing long-term loan facility at a variable rate, which is
currently 6 percent. Subsequent to quarter end, management entered into an
interest rate swap agreement for a notional amount of $60 million to fix the
interest cost on this portion of the $125 million long-term debt. Management
expects to spend more than $85 million on capital projects during the last six
months of 1998. The focus of the Company's investments will be on new
manufacturing, distribution and information technology. Management expects that
cash flow from operations and borrowings from committed short-term bank lines
will adequately provide for the Company's 1998 cash needs.
In October of 1997, the Company's Board of Directors approved the purchase of up
to 2 million shares of the Company's Class A common stock. The Company has
repurchased 1,581,700 shares through the second quarter of 1998. In August 1998,
the Company's Board of Directors authorized management to purchase, from time to
time, up to an additional 2 million shares of Class A common stock in
open-market and privately negotiated transactions.
The "Year 2000 Computer Problem" creates risk for the Company from unforeseen
problems in its own computer systems and those of third parties with whom the
Company conducts business transactions. For this reason, the Company conducted
a formal Year 2000 risk assessment of its information technology in 1997. The
assessment addressed all business applications, computer hardware and software,
personal computers, and embedded technology in manufacturing machinery.
Remediation efforts began in 1997 to address areas not in compliance or not
already scheduled for replacement. Also, efforts began in 1997 to correspond
with all customers and external vendors to establish their degree of readiness
for Year 2000. This is an on-going effort which will continue through 1999 and
which will cover all of the Company's significant EDI relationships. The Company
presently expects to spend approximately $15 million during 1998 and 1999 to
modify its computer information systems to ensure the proper processing of
transactions relating to the Year 2000 and beyond. The Company expects to be
fully compliant for Company technology in 1999.
Year 2000-related failures of the Company's and/or third parties' computer
systems could have a material impact on the Company's ability to conduct its
business. Management currently believes that Company information systems
affected by the Year 2000 issues have been identified and that its
implementation plans will ensure compliance for its systems by the year 2000.
RESTRUCTURING AND REALIGNMENT COSTS
During the first quarter of 1998, the Company adopted a plan to close its Rock
Hill Printing and Finishing Plant. A pretax charge of $23.0 million was recorded
in the first quarter of 1998, which included an $11.3 million write-off of plant
and equipment, a $4.0 million accrual for anticipated severance costs arising
from the elimination of approximately 480 positions, and a $7.7 million accrual
for certain other anticipated expenses associated with the closing of the
facility. Through July 4, 1998, the Company has recorded cash expenditures of
approximately $1.4 million against the severance accrual and $0.7 million
against the accrual for certain other expenses associated with the plan. In
addition, the Company expects to incur future expenses of approximately $8.4
million for equipment relocation
10
<PAGE> 11
and other realignment expenses related to the plan which do not qualify as "exit
costs." During the second quarter of 1998, the Company incurred realignment
expenses related to the plan of $0.5 million.
During the second quarter of 1996, the Company adopted a plan to consolidate and
realign its fabric manufacturing operations. The Company recorded a pretax
restructuring charge of $30.4 million during the second quarter of 1996 which
included a $16.3 million write-off of plant and equipment, a $6.6 million
accrual for anticipated severance arising from the elimination of approximately
850 positions, and a $7.5 million accrual for certain other anticipated expenses
associated with the plan. Through July 4, 1998, the Company has recorded cash
expenditures of approximately $4.4 million against the severance accrual and
$5.8 million against the accrual for certain other expenses associated with the
plan. Through the second quarter of 1998, the severance accrual was reduced by
$1.4 million due to a lower-than-expected average cost per associate, and the
accrual for certain other expenses associated with the plan was reduced by $0.6
million. In addition, the Company has incurred expenses of $18.4 million,
including $3.5 million in 1998, for equipment relocation and other realignment
expenses related to the plan that do not qualify as "exit costs". The Company
expects to incur future realignment expenses of approximately $3.7 million
related to the plan.
OTHER
In June 1998, the Financial Accounting Standards Board issued Statement No. 133,
"Accounting for Derivative Instruments and Hedging Activities." This statement,
which addresses the accounting for derivative instruments, will be effective for
fiscal quarters of fiscal years beginning after June 15, 1999. The Company has
not determined the impact of this standard on its financial position, results of
operations, or cash flows.
SUBSEQUENT EVENT
On August 7, 1998, the Company sold the UltraSuede assets of its UltraFabrics
Division. In connection with this sale, the Company received a cash payment of
approximately $15 million, subject to certain adjustment provisions included in
the agreement. A gain approximating $10 million on this transaction will be
included in other (income) expense in the Company's third-quarter earnings.
FORWARD LOOKING INFORMATION
This Form 10-Q report contains forward-looking statements that reflect
management's expectations, estimates, projections and assumptions of future
performance and economic conditions. Words such as "expects," "anticipates,"
"plans," "believes," "estimates," and variations of such words and similar
expressions are intended to identify such forward-looking statements which are
made pursuant to the safe-harbor provisions of the Private Securities Litigation
Reform Act of 1995. The Company cautions investors that any forward-looking
statement is subject to risks and uncertainties that may cause actual results to
vary significantly from those projected, stated, or implied by the
forward-looking statement. Factors that could cause actual results to differ are
discussed in the Company's SEC filings.
11
<PAGE> 12
ITEM 6 - EXHIBITS
The following exhibits are filed as part of this report:
(27) Financial Data Schedule (for SEC use only)
12
<PAGE> 13
SIGNATURES
Pursuant to the requirements of Securities Exchange Act of 1934, Springs
Industries, Inc. has duly caused this Report to be signed on its behalf by the
undersigned thereunto duly authorized.
SPRINGS INDUSTRIES, INC.
By: /s/ James F. Zahrn
--------------------------------
James F. Zahrn
Executive Vice President and
Chief Financial Officer
(Duly Authorized Officer and
Principal Financial Officer)
DATED: August 18, 1998
13
<PAGE> 14
EXHIBIT INDEX
<TABLE>
<CAPTION>
Item
- ----
<S> <C>
(27) Financial Data Schedule (for SEC purposes)
</TABLE>
14
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF SPRINGS INDUSTRIES, INC. FOR THE QUARTER ENDED JULY 4,
1998 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-02-1999
<PERIOD-START> JAN-04-1998
<PERIOD-END> JUL-04-1998
<CASH> 762
<SECURITIES> 0
<RECEIVABLES> 325,352
<ALLOWANCES> 0
<INVENTORY> 462,714
<CURRENT-ASSETS> 836,109
<PP&E> 1,375,950
<DEPRECIATION> 825,938
<TOTAL-ASSETS> 1,471,403
<CURRENT-LIABILITIES> 257,637
<BONDS> 275,609
0
0
<COMMON> 4,688
<OTHER-SE> 728,078
<TOTAL-LIABILITY-AND-EQUITY> 1,471,403
<SALES> 1,093,818
<TOTAL-REVENUES> 1,093,818
<CGS> 898,936
<TOTAL-COSTS> 898,936
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 12,058
<INCOME-PRETAX> 3,876
<INCOME-TAX> 1,474
<INCOME-CONTINUING> 2,402
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,402
<EPS-PRIMARY> 0.13
<EPS-DILUTED> 0.12
</TABLE>
