<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (D)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended December 31, 1994 Commission File No. 0-1915
THOMASTON MILLS, INC.
- - --------------------------------------------------------------------------------
GEORGIA 58-0460470
------------------------------------ ------------------------------------
(State or other jurisdiction of) (I.R.S. Employer Identification No.)
115 East Main Street, P.O. Box 311, Thomaston, Georgia 30286
- - --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (706) 647-7131.
Indicate the number of shares outstanding of each of the issuer's classes of
Common Stock, as of the close of the period covered by this report.
Class A Common Stock $1 Par Value - 5,620,518 Shares including
721,688 Treasury Shares
Class B Common Stock $1 Par Value - 1,873,506 Shares including
243,140 Treasury Shares
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 for the past 90 days.
Yes X No
--- ---
Page 1 of 10
<PAGE> 2
INDEX
THOMASTON MILLS, INC. AND SUBSIDIARY
PART 1. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Condensed consolidated balance sheets -- December 31, 1994
and July 2, 1994.
Condensed consolidated statements of income -- three months
ended December 31, 1994 and three months ended January 1, 1994;
and six months ended December 31, 1994 and six months ended
January 1, 1994.
Condensed consolidated statements of changes in cash flows --
six months ended December 31, 1994 and six months ended
January 1, 1994.
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Item 2. Changes in Securities
Item 3. Defaults upon Senior Securities
Item 4. Submission of Matters to vote of Security Holders
Item 5. Other information
Item 6. Exhibits and Reports on Form 8-K
SIGNATURES
Page 2 of 10
<PAGE> 3
PART 1 - FINANCIAL INFORMATION
THOMASTON MILLS, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
($000 omitted)
DEC. 31, 1994 JULY 02, 1994
------------- -------------
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash & cash equivalents $ 1,767 $ 1,110
Accounts receivable, less allowance
of $415,000 at both dates 40,587 56,157
Inventories--Note B 39,384 36,502
Prepaid expenses 1,042 914
------------ -------------
TOTAL CURRENT ASSETS 82,780 94,683
PROPERTY, PLANT AND EQUIPMENT 213,592 206,632
Less allowances for depreciation 129,788 122,632
------------ -------------
83,804 84,000
OTHER ASSETS 590 649
------------ -------------
$ 167,174 $ 179,332
============ =============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 8,518 $ 12,567
Accrued liabilities 4,783 5,868
Federal and State income taxes 80 1,760
Current portion capital lease
obligations 416 416
Current portion of long term debt 1,806 1,807
------------ -------------
TOTAL CURRENT LIABILITIES $ 15,603 $ 22,418
OBLIGATIONS UNDER CAPITAL LEASE-
LESS CURRENT PORTION 1,561 1,752
LONG TERM DEBT 35,004 39,495
DEFERRED INCOME TAXES 6,571 6,571
OTHER LIABILITIES 103 68
SHAREHOLDERS' EQUITY
Class A Common Stock--5,620,518 shares
outstanding including 721,688 treasury
shares 5,621 5,621
Class B Common Stock--1,873,506 shares
outstanding including 243,140 treasury
shares 1,874 1,874
Additional paid-in-capital 8,824 8,807
Retained earnings 97,495 97,861
------------ ------------
113,814 114,163
Less treasury stock - at cost 5,482 5,135
------------ ------------
108,332 109,028
------------ ------------
$ 167,174 $ 179,332
============ ============
</TABLE>
NOTE: The Balance Sheet at July 2, 1994 has been
derived from the Audited Financial Statements at that
date. See Note to Condensed Financial Statements.
Page 3 of 10
<PAGE> 4
THOMASTON MILLS, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS THREE MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED ENDED
DEC. 31, 1994 JAN. 01, 1994 DEC. 31, 1994 JAN. 01, 1994
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Net Sales $ 67,050,535 $ 61,675,173 $ 135,606,282 $ 127,278,077
Cost of Sales 61,627,954 53,516,649 124,176,357 109,971,724
------------- ------------- ------------- -------------
5,422,581 8,158,524 11,429,925 17,306,353
Selling, administration
and general expenses 4,645,191 4,488,187 9,310,022 8,944,027
------------- ------------- ------------- -------------
777,390 3,670,337 2,119,903 8,362,326
Other income 108,469 146,369 225,371 265,737
------------- ------------- ------------- -------------
885,859 3,816,706 2,345,274 8,628,063
Interest expense 726,147 365,186 1,448,948 810,804
------------- ------------- ------------- -------------
Income before
income taxes 159,712 3,451,520 896,326 7,817,259
Provision for income taxes 61,648 1,346,093 345,981 3,190,754
------------- ------------- ------------- -------------
Net income $ 98,064 $ 2,105,427 $ 550,345 $ 4,626,505
============= ============= ============= =============
Average Number of Shares 6,499,258 6,577,181 6,534,293 6,578,715
Data Per Share:
Net income $ 0.020 $ 0.320 $ 0.080 $ 0.700
Dividends paid $ 0.070 $ 0.065 $ 0.140 $ 0.130
============= ============= ============= =============
</TABLE>
Page 4 of 10
<PAGE> 5
<TABLE>
<CAPTION>
SIX MONTHS ENDED SIX MONTHS ENDED
DECEMBER 31, 1994 JANUARY 01, 1994
----------------- ----------------
<S> <C> <C>
OPERATING ACTIVITIES
Net Income $ 550,345 $ 4,626,505
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amoritzation 7,595,213 6,414,125
Loss (Gain) on sale of property, plant
and equipment (22,875) (110,056)
Provision for deferred income taxes 0 148,717
Changes in operating assets and
liabilities:
Accounts receivable 15,570,810 10,337,872
Inventories (2,882,354) (2,624,639)
Other assets (68,518) (444,816)
Accounts payable and Accrued expenses (6,781,168) (3,949,569)
--------------- --------------
NET CASH PROVIDED BY
OPERATING ACTIVITIES 13,961,453 14,398,139
INVESTING ACTIVITIES
Purchases of property, plant and equipment (7,470,999) (14,690,590)
Proceeds from sales of property, plant
and equipment 94,259 113,550
--------------- --------------
NET CASH USED IN INVESTING
ACTIVITIES (7,376,740) (14,577,040)
FINANCING ACTIVITIES
Proceeds from revolving lines of credit
and long-term debt 5,000,000 3,000,000
Principal payments on revolving lines of credit,
long-term debt and capital lease obligations (9,681,646) (2,595,208)
Purchase of Treasury Stock (391,875) 0
Exercise of stock options 61,000 30,500
Cash dividends paid (915,208) (850,029)
--------------- -------------
NET CASH USED IN FINANCING ACTIVITIES
FINANCING ACTIVITIES (5,927,729) (414,737)
--------------- -------------
INCREASE IN CASH AND
CASH EQUIVALENT 656,984 (593,638)
Cash and cash equivalents at beginning
of period 1,109,975 1,369,545
--------------- -------------
Cash and cash equivalents at end
of period $ 1,766,959 $ 775,907
=============== =============
</TABLE>
Page 5 of 10
<PAGE> 6
THOMASTON MILLS, INC. AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
DECEMBER 31, 1994
NOTE A -- BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-Q and Rule
10-01 of Regulation S-X. Accordingly, they do no include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered necessary for
a fair presentation have been included. Operating results for the three month
period ended December 31, 1994, are not necessarily indicative of the results
that may be expected for the year ended July 1, 1995. Certain Fiscal 1994
balances have been reclassified to conform with the Fiscal1995 classifications.
For further information, refer to the consolidated financial statements and
footnotes thereto included in the Company's annual report for the year ended
July 2, 1994.
NOTE B -- INVENTORIES
The components of inventory consist of the following:
<TABLE>
<CAPTION>
December 31, 1994 July 02, 1994
----------------- -------------
<S> <C> <C>
Raw materials $ 6,365 $ 7,946
Work in process 15,239 17,497
Finished products 17,780 11,059
----------------- -------------
$ 39,384 $ 36,502
</TABLE>
Note: Through July 2, 1994 the Company accounted for the cotton, polyester,
labor and overhead components of raw materials, work in process and finished
goods at the lower of cost, determined under the LIFO method of accounting, or
market. Purchased cloth and yarn and certain supplies inventories were
accounted for at the lower of cost, determined under the FIFO method of
accounting, or market. In the first quarter of 1995, the Company changed to
the LIFO method of accounting for purchased cloth and yarn. This change will
result in better matching of revenues and expenses and will conform
substantially all manufacturing inventories to the LIFO method. The cumulative
effect of this change is not determinable. The effect of this change was to
decrease net income for the quarter and twenty-six weeks by approximately
$172,000 ($.03 per share) and $295,000 ($.05 per share) respectively. In
connection with this change, the Company conformed the manner of applying the
LIFO method for its cotton and polyester inventories to the dollar value
method. Management believes the effect of this change was not significant.
During the quarter, the Company changed its estimate of raw material prices
used to calculate LIFO inventories. This has the effect of increasing cost of
sales by $333,000 ($.03 per share of net income) for the quarter. The LIFO
reserve increased by $583,000 and $833,000 for the quarter and six months ended
December 31, 1994.
Page 6 of 10
<PAGE> 7
THOMASTON MILLS, INC. AND SUBSIDIARY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
RESULTS OF OPERATIONS
Sales for the second fiscal quarter ended December 31, 1994 increased 8.7% to
$67,050,535 as compared to second quarter sales last fiscal year of
$61,675,173. For the twenty-six weeks ended December 31, 1994, sales were
$135,606,282 as compared to $127,278,077 for the twenty-six weeks ended January
1, 1994. The number of units sold increased 13.2% for the most recent quarter
and increased 10.1% for the most recent six-month period. These increases in
units sold were partially offset by a 4.0% decrease in product mix average
sales value per unit for the quarter and a 3.3% decrease in product mix average
sales value per unit for the six months. Lower selling prices on sales yarn
shipments during the quarter and twenty-six weeks also contributed to the
decline in sales per unit.
Gross profit margin was 8.1% of sales for the quarter ended December 31, 1994,
and 8.4% for the six months. Gross profit margin for the comparable periods
last year was 13.2% for the quarter and 13.6% for the six months. During the
quarter and six months ended December 31, 1994, the Company experienced raw
material price increases of 7.27% and 9.55% respectively. Also during the
quarter, the Company changed its estimate of raw material prices used to
calculate LIFO inventories. This change in estimate had the effect of
increasing cost of sales by $333,000 ($.03 per share of net income) for the
quarter ended December 31, 1994. The LIFO reserve increased by $583,000 and
$833,000 for the quarter and six months ended December 31, 1994.
Selling, general and administrative expenses as a percentage of sales were 6.9%
for the second quarter of this fiscal year as compared to 7.3% for the second
quarter last year. Total selling, general and administrative expenses for the
six-month period ended December 31, 1994, were $9,310,022 as compared to
$8,944,027 for the first six months last year. For the six months ended
December 31, 1994, selling, general and administrative expenses were 6.9% of
sales as compared to 7.0% of sales for the six months ended January 1, 1994.
Interest expense increased $360,961 to $726,147 for the second fiscal quarter
this year compared to $365,186 for the second fiscal quarter last year. For
the first six months of this fiscal year as compared to the first six months of
last fiscal year, interest expense increased $638,144 to $1,448,948. This
increase in interest expense is related to the required capitalization last
year of interest costs associated with the construction of the Company's new
Lakeside comforter and accessory plant.
The provision for income taxes as a percent of taxable income decreased as a
result of the tax rate changes imposed last fiscal year by the Revenue
Reconciliation Act of 1993. The change in tax rates, applied to current
earnings and the Company's deferred tax accounts for the first six months of
fiscal year 1994, resulted in an effective tax rate of 40.8% of taxable income
as compared to a tax rate of 38.6% of taxable income for the first six months
of fiscal year 1995.
Page 7 of 10
<PAGE> 8
Net income for the second quarter this year was $98,064 or $.02 per share as
compared to $2,105,427 or $.32 per share for the second quarter last year. For
the six months ended December 31, 1994, the Company earned $550,345 or $.08 per
share compared to $4,626,505 or $.70 per share for the six months ended January
1, 1994.
LIQUIDITY AND CAPITAL RESOURCES
At December 31, 1994, working capital was $67,176,770 as compared to
$58,922,040 at January 1, 1994. The ratio of Current Assets to Current
Liabilities was 5.31:1 at December 31, 1994 and 4.80:1 at January 1, 1994.
Cash provided by operating activities amounted to $13,961,453 for the most
recent six months. Cash provided by operating activities was the principal
source of funds for this six-month period.
The Company's primary use of funds during the first six months of fiscal year
1995 was $7,376,740 in purchases of property, plant and equipment. For the
first six months of last fiscal year, the Company invested $14,577,040 in
purchases of property, plant and equipment. Plans are underway to invest in
additional equipment in order to increase denim production by twenty per cent
in the second quarter of next fiscal year.
During the second quarter of this fiscal year, the Company revised and expanded
its revolving credit agreement which provides for unsecured borrowings up to
$24,000,000. At December 31, 1994, an additional $9,000,000 was available
under this agreement.
Page 8 of 10
<PAGE> 9
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
(a) As of December 31, 1994, there were no material pending legal
proceedings, other than routine litigation incidental to its
business, to which the Company was a party or to which any
property of the Company was subject. Such routine legal
proceedings are not believed to be material to the Company.
(b) Not applicable
ITEM 2. CHANGE IN SECURITIES
(a) (b) Not applicable.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
(a) (b) Not applicable.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The election of directors, selection of Ernst & Young as the
Company's independent auditors, and implementation of the 1994 Stock
Option Plan, were approved by the holders of the Company's Class B
Common Stock at the Annual Meeting of Shareholders held on October
6, 1994. Set forth below are the results of the voting:
<TABLE>
<CAPTION>
Votes Votes
For Against Abstentions
------------ ------------- -----------
<S> <C> <C> <C>
ELECTION OF DIRECTORS
Thomas D. Adams, Sr. 1,425,265 0 88
C. Ronald Barfield 1,425,265 0 88
Archie H. Davis 1,425,265 0 88
H. Stewart Davis 1,425,265 0 88
George H. Hightower 1,425,265 0 88
George H. Hightower, Jr. 1,425,265 0 88
Neil H. Hightower 1,425,265 0 88
William H. Hightower 1,425,265 0 88
Rosser R. Raines 1,425,265 0 88
Julian H. Roberts 1,425,265 0 88
Dr. Jerry M. Williamson 1,425,265 0 88
Dom H. Wyant 1,425,265 0 88
SELECTION OF ERNST & YOUNG 1,358,605 65,584 1,164
1994 STOCK OPTION PLAN 1,361,661 58,262 3,424
</TABLE>
ITEM 5. OTHER INFORMATION
Not applicable.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
13.1 Quarterly Report to Shareholders dated
December 31, 1994.
27 Financial Data Schedule (for SEC use only)
(b) The Company did not file any reports on Form 8-K during
the three months ended December 31, 1994.
Page 9 of 10
<PAGE> 10
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.
Thomaston Mills, Inc.
Neil H. Hightower
-------------------------------
Neil H. Hightower
President and Chief
Date: February 7, 1995 Executive Officer
Rosser R. Raines
-------------------------------
Rosser R. Raines
Treasurer-Principal Financial
Date: February 7, 1995 Officer
Page 10 of 10
<PAGE> 1
Exhibit 13.1
<TABLE>
<CAPTION>
DIRECTORS OFFICERS
<S> <C>
Thomas D. Adams, Jr., 1976 (2) Neil H. Hightower, 1966
President President and Chief Executive Officer
Adams Realty Company
Thomaston, Georgia H. Stewart Davis, 1971
Executive Vice President - Finishing
C. Ronald Barfield, 1989 (2)
Partner George H. Hightower, Jr., 1977
Adams, Barfield, Dunaway Executive Vice President - Sales
& Hamkinson, Attorneys
Thomaston, Georgia John R. Carson, 1972
Vice President - Consumer
Archie H. Davis, 1993 (2) Product Sales
President and CEO
The Savannah Bank, N.A. James E. Franklin, Jr., 1989
Savannah, Georgia Vice President - Industrial Sales
H. Stewart Davis, 1981 William T. Dunnahoo, 1990
Executive Vice President Vice President - Apparel
of the Company Fabric Sales
George H. Hightower, 1945 (1) Robert E. L. Greene, Jr., 1985
Formerly Chairman of the Board Vice President - Engineering
of the Company, Retired
W. Harrison Hightower III, 1965
George H. Hightower, Jr., 1981 Vice President - Administration
Executive Vice President
of the Company Jonathan O. Huff, 1990
Vice President - Finishing
Neil H. Hightower, 1980 (1)
President and Chief Executive Officer Charles F. Eichelberger, 1989
of the Company Vice President - Greige
Manufacturing
William H. Hightower Jr., 1939 (1)
Formerly Chairman of the Board Daniel B. Tripp, 1991
of the Company, Retired Vice President - Human Resources
and Public Relations
Rosser R. Raines, 1993
Treasurer of the Company Ronald W. VanHouten, 1990
Secretary
Julian H. Roberts, 1963 (2)
Personal Investments Rosser R. Raines, 1970
Augusta, Georgia Treasurer
Dr. Jerry M. Williamson, 1981 (2)
President
Gordon College
University System of Georgia
Barnesville, Georgia
Dom H. Wyant, 1983 (2)
Partner
Jones, Day, Reavis & Pogue,
Attorneys
Atlanta, Georgia
</TABLE>
(1) Member of Executive Committee
(2) Member of Audit Committee
NOTE: Dates after names indicate year first elected as Director or Officer
[LOGO]
THOMASTON FABRICS
THOMASTON MILLS, INC.
P.O. Box 311
Thomaston, Georgia
<PAGE> 2
TO THE SHAREHOLDERS:
Sales in the second fiscal quarter were up 8.7% from the year before. Net
after tax earnings were disappointing. The Company earned $98,064 or $.02 per
share compared to $2,105,427 or $.32 per share the year before.
The main problem continued to be very low prices on sales yarn shipments
during the quarter. In addition, sales were down on Type 120 muslin sheets.
Capacity utilization on piece-dyed apparel fabrics and sheets raised fixed cost
per unit on these products. Raw material prices increased faster than the
prices received for finished products during the quarter, and this also caused
the LIFO reserve to be increased.
On the positive side, sales in the new Lakeside Plant continue ahead of
plan. Demand for denim remains strong, and the Company continues to make
progress in modernizing and expanding capacity. Plans are now underway to
increase denim production through the Pike Plant by twenty per cent. This
increase will be in place in the second quarter of next fiscal year. We are
confident that the move to more casual apparel will last and will support this
expansion for the long-term benefit of the Company.
A new 200 count sheet will be offered during the April Market, and this new
product will add new profitable sales and will offset problems with the 120
count muslin product.
Sales yarn prices have improved and should continue to improve into the
third quarter.
We have had a difficult six months, but we continue to be optimistic that
sales and earnings will improve in the last half of the fiscal year.
/s/ Neil H. Hightower
- - ----------------------
Neil H. Hightower
President and
Chief Executive Officer
January 24, 1995
<TABLE>
<CAPTION>
THOMASTON MILLS, INC.
- - --------------------------------------------------------------------------------
STATEMENTS OF INCOME (UNAUDITED)
Thirteen Weeks Thirteen Weeks
Ended Ended
December 31, 1994 January 1, 1994
<S> <C> <C>
Net sales $ 67,050,535 $ 61,675,173
Cost of sales 61,627,954 53,516,649
------------ ------------
5,422,581 8,158,524
Selling, administrative
and general expenses 4,645,191 4,488,187
------------ ------------
777,390 3,670,337
Other Income 108,469 146,369
------------ ------------
885,859 3,816,706
Interest expense 726,147 365,186
------------ ------------
Income before
income taxes 159,712 3,451,520
Provision for income taxes 61,648 1,346,093
------------ ------------
Net income $ 98,064 $ 2,105,427
============ ============
Average Number Shares 6,499,258 6,577,181
Data per share:
Net income $ 0.02 $ 0.32
Dividends paid $ 0.070 $ 0.065
============ ============
Twenty-Six Twenty-Six
Weeks Ended Weeks Ended
December 31, 1994 January 1, 1994
Net sales $135,606,282 $127,278,077
Cost of sales 124,176,357 109,971,724
------------ ------------
11,429,925 17,306,353
Selling, administrative
and general expenses 9,310,022 8,944,027
------------ ------------
2,119,903 8,362,326
Other income 225,371 265,737
------------ ------------
2,345,274 8,628,063
Interest expense 1,448,948 810,804
------------ ------------
Income before
income taxes 896,326 7,817,259
Provision for income taxes 345,981 3,190,754
------------ ------------
Net income $ 550,345 $ 4,626,505
============ ============
Average Number Shares 6,534,293 6,578,715
Data per share:
Net income $ 0.08 $ 0.70
Dividends paid $ 0.14 $ 0.13
============ ============
THOMASTON MILLS, INC.
- - --------------------------------------------------------------------------------
BALANCE SHEETS (UNAUDITED)
December 31, January 1,
1994 1994
ASSETS
Current Assets:
Cash & cash equivalents $ 1,766,959 $ 775,907
Receivables, less
allowance of
$415,000 in 1994
and $490,000 in 1993 40,586,636 35,628,384
Inventories 39,384,696 36,747,802
Other current assets 1,041,493 1,292,686
------------ ------------
Total Current
Assets 82,779,784 74,444,779
Property, Plant &
Equipment 213,592,421 198,349,371
Less allowance for
depreciation 129,788,259 117,479,999
------------ ------------
83,804,162 80,869,372
Other assets 589,845 687,252
------------ ------------
$167,173,791 $156,001,403
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 8,517,939 $ 7,461,758
Accrued liabilities 4,782,649 4,829,293
Federal & state
income taxes 80,177 1,210,626
Current portion of
obligations under
capital leases 415,549 214,362
Current portion of
long-term debt 1,806,700 1,806,700
----------- -----------
Total Current
Liabilities 15,603,014 15,522,739
Obligations under capital
leases, less current portion 1,561,166 114,217
Long-term debt 35,003,925 30,810,625
Deferred income taxes 6,571,130 5,799,950
Other Liabilities 102,168 0
Shareholders' Equity 108,332,388 103,753,872
----------- -----------
$167,173,791 $156,001,403
=========== ===========
</TABLE>
NOTE: Through July 2, 1994 the Company accounted for the cotton, polyester,
labor and overhead components of raw materials, work in process and finished
goods at the lower of cost, determined under the LIFO method of accounting, or
market. Purchased cloth and yarn and certain supplies inventories were
accounted for at the lower of cost, determined under the FIFO method of
accounting, or market. In the first quarter of 1995, the Company changed to the
LIFO method of accounting for purchased cloth and yarn. This change will result
in better matching of revenues and expenses and will conform substantially all
manufacturing inventories to the LIFO method. The cumulative effect of this
change is not determinable. The effect of this change was to decrease net
income for the quarter and twenty-six weeks by approximately $172,000 ($ .03
per share) and $295,000 ($.05 per share) respectively. In connection with this
change, the Company conformed the manner of applying the LIFO method for its
cotton and polyester inventories to the dollar value method. Management
believes the effect of this change was not significant.
During the quarter, the Company changed its estimate of raw material prices
used to calculate LIFO inventories. This has the effect of increasing cost of
sales by $333,000 ($.03 per share of net income) for the quarter. The LIFO
reserve increased by $583,000 and $833,000 for the quarter and six months ended
December 31, 1994.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF THOMASTON MILLS, INC. FOR THE SIX MONTHS ENDED
DECEMBER 31, 1994, 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> JUL-01-1995
<PERIOD-START> OCT-02-1994
<PERIOD-END> DEC-31-1994
<CASH> 1,767
<SECURITIES> 0
<RECEIVABLES> 41,002
<ALLOWANCES> 415
<INVENTORY> 39,385
<CURRENT-ASSETS> 82,780
<PP&E> 213,592
<DEPRECIATION> 129,788
<TOTAL-ASSETS> 167,174
<CURRENT-LIABILITIES> 15,603
<BONDS> 20,004
<COMMON> 7,494
0
0
<OTHER-SE> 100,838
<TOTAL-LIABILITY-AND-EQUITY> 167,174
<SALES> 135,606
<TOTAL-REVENUES> 135,831
<CGS> 124,176
<TOTAL-COSTS> 124,176
<OTHER-EXPENSES> 9,310
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,449
<INCOME-PRETAX> 896
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