<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 March 30, 1996 Commission File No. 0-1915
THOMASTON MILLS, INC.
- ------------------------------------------------------------------------------
GEORGIA 58-0460470
- ------------------------------- -----------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
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
713,688 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 12
<PAGE> 2
INDEX
THOMASTON MILLS, INC. AND SUBSIDIARY
PART 1. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Condensed consolidated balance sheets -- March 30, 1996 and
July 1, 1995.
Condensed consolidated statements of operations -- three
months ended March 30, 1996 and three months ended April 1,
1995; and nine months ended March 30, 1996 and nine months
ended April 1, 1995.
Condensed consolidated statements of changes in cash flows --
nine months ended March 30, 1996 and nine months ended April
1, 1995.
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 12
<PAGE> 3
PART 1 - FINANCIAL INFORMATION
THOMASTON MILLS, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
<TABLE>
<CAPTION>
MAR. 30, 1996 July 1, 1995
------------- ------------
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash & cash equivalents $ 1,567 $ 1,544
Accounts receivable, less allowance of
$415 at both dates 41,016 50,924
Inventories--Note B 44,651 39,666
Other current assets 2,612 1,191
-------- --------
TOTAL CURRENT ASSETS 89,846 93,325
PROPERTY, PLANT AND EQUIPMENT 227,181 225,353
Less allowances for depreciation 140,760 136,719
-------- --------
86,421 88,634
OTHER ASSETS 1,477 4,364
-------- --------
$177,744 $186,323
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 6,677 $ 14,214
Accrued liabilities 6,695 6,164
Federal and State income taxes 0 1,131
Current portion of long-term debt
and capital lease obligations 3,187 1,082
-------- --------
TOTAL CURRENT LIABILITIES 16,559 22,591
OBLIGATIONS UNDER CAPITAL LEASE -
LESS CURRENT PORTION 1,533 1,297
LONG-TERM DEBT 44,260 44,813
DEFERRED INCOME TAXES 7,233 7,233
OTHER LIABILITIES 165 114
SHAREHOLDERS' EQUITY
Class A Common Stock--5,620,518 shares
outstanding including 713,688 treasury shares at
March 30, 1996 and 719,688 at July 1, 1995 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 8,882 8,862
Retained earnings 97,053 99,389
-------- --------
113,430 115,746
Less treasury stock - at cost 5,436 5,471
-------- --------
107,994 110,275
-------- --------
$177,744 $186,323
======== ========
</TABLE>
NOTE: The Balance Sheet at July 1, 1995 has been derived from the Audited
Financial Statements at that date. See Note to Condensed Financial
Statements.
Page 3 of 12
<PAGE> 4
THOMASTON MILLS, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in Thousands except Share and Per Share Data)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
MAR. 30, 1996 Apr. 1, 1995 MAR. 30, 1996 Apr. 1, 1995
------------- ------------ ------------- ------------
<S> <C> <C> <C> <C>
Net sales $ 66,150 $ 66,290 $ 196,131 $ 201,897
Cost of sales 61,612 58,842 180,858 183,018
--------- --------- --------- ----------
4,538 7,448 15,273 18,879
Selling, general
and administrative expenses 4,785 4,934 14,786 14,244
--------- --------- --------- ----------
(247) 2,514 487 4,635
Other income (expense) 128 76 441 301
--------- --------- --------- ----------
(119) 2,590 928 4,936
Interest expense 836 783 2,402 2,232
--------- --------- --------- ----------
Income (loss) before
income taxes (955) 1,807 (1,474) 2,704
Provision for income taxes
(benefit) (363) 697 (560) 1,044
--------- --------- --------- ---------
Net income (loss) $ (592) $ 1,110 $ (914) $ 1,660
========= ========= ========== =========
AVERAGE NUMBER OF SHARES 6,537,196 6,430,541 6,536,800 6,506,705
Data Per Share:
Net income $ (0.09) $ 0.17 $ (0.14) $ 0.26
Dividends paid $ 0.0725 $ 0.0700 $ 0.2175 $ 0.2100
</TABLE>
Page 4 of 12
<PAGE> 5
THOMASTON MILLS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
<TABLE>
<CAPTION>
NINE MONTHS ENDED Nine Months Ended
MARCH 30, 1996 April 1, 1995
----------------- -----------------
<S> <C> <C>
OPERATING ACTIVITIES
Net Income (loss) $ (914) $ 1,660
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Depreciation and amortization 12,542 11,393
Loss (Gain) on sale of property, plant
and equipment 8 (24)
Changes in operating assets and
liabilities:
Accounts receivable 9,909 13,976
Inventories (4,985) (8,712)
Other assets (2,091) (482)
Accounts payable and accrued expenses (7,631) (1,964)
------- -------
NET CASH PROVIDED BY
OPERATING ACTIVITIES 6,838 15,847
INVESTING ACTIVITIES
Purchases of property, plant and equipment (10,337) (12,157)
Less capital lease obligations incurred 557 0
------- -------
Cash for property, plant and equipment (9,780) (12,157)
Proceeds from sales of property, plant
and equipment 0 95
Decrease in unexpended construction funds 3,556 0
------- -------
NET CASH USED IN INVESTING
ACTIVITIES (6,224) (12,062)
FINANCING ACTIVITIES
Proceeds from revolving lines of credit
and long-term debt 5,557 8,500
Less capital lease obligations incurred (557) 0
------- -------
Cash proceeds from borrowing 5,000 8,500
Principal payments on revolving lines of credit,
long term debt and capital lease obligations (4,223) (10,713)
Purchase of treasury stock 0 (392)
Exercise of stock options 54 61
Cash dividends paid (1,422) (1,373)
------- -------
NET CASH USED IN
FINANCING ACTIVITIES (591) (3,917)
------- -------
INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 23 (132)
Cash and cash equivalents at beginning
of period 1,544 1,110
------- -------
Cash and cash equivalents at end
of period $ 1,567 $ 978
======= =======
</TABLE>
Page 5 of 12
<PAGE> 6
THOMASTON MILLS, INC. AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
MARCH 30, 1996
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 not 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 March 30, 1996 are not necessarily indicative of the results that
may be expected for the year ended June 29, 1996. Certain Fiscal 1995 balances
have been reclassified to conform with the Fiscal 1996 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 1, 1995.
NOTE B -- INVENTORIES
The components of inventory consist of the following:
<TABLE>
<CAPTION>
(Dollars in Thousands)
MARCH 30, 1996 July 1, 1995
-------------- ------------
<S> <C> <C>
Raw materials $ 9,334 $ 10,087
Work in process 22,088 21,008
Finished products 26,544 21,199
LIFO reserve (13,315) (12,628)
-------- --------
$ 44,651 $ 39,666
======== ========
</TABLE>
Through July 2, 1994 the Company accounted for the cotton, polyester, labor and
overhead components of raw materials, work in process and finished goods
inventories 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 Fiscal 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 on the third quarter and the first nine months of fiscal year 1995 was
to decrease net income by approximately $148,000 ($.02 per share) and $443,000
($.07 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 the
change to the dollar value method was not significant.
Page 6 of 12
<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 third fiscal quarter ended March 30, 1996 were relatively
unchanged at $66,150,000 as compared to sales of $66,290,000 for the third
quarter last year. For the first nine months of fiscal year 1996, sales were
$196,131,000, down 2.9% from sales of $201,897,000 for the first nine months of
fiscal year 1995. The continued sluggishness in the markets served by
Thomaston Mills resulted in a decline of 3.8% in units shipped for the third
quarter and a 6.1% decline in units shipped for the nine months although the
average sales value per unit increased 3.7% for the quarter and 3.5% for the
nine months when compared to the comparable periods last year.
Cost of goods sold increased to 93.1% of sales for the third quarter and 92.2%
of sales for the first nine months of fiscal year 1996 as compared to cost of
goods sold of 88.8% and 90.6% of sales for the third quarter and first nine
months of fiscal year 1995, respectively. These increases in cost of goods
sold were primarily attributable to increased raw material prices and low
capacity utilization of plant facilities. During the quarter and nine months
ended March 30, 1996, the Company experienced raw material price increases of
8.0% and 18.0% respectively. Due to slow markets, the Company was able to pass
only a portion of these raw material price increases on to its customers. In
order to control inventories in a depressed sales environment, the Company
reduced its capacity utilization which resulted in higher fixed costs per unit.
Decreased sales and increased cost of goods sold resulted in gross profit of
$4,538,000 or 6.9% of sales for third quarter and $15,273,000 or 7.8% of sales
for the first nine months of fiscal year 1996. For the third quarter and first
nine months of fiscal year 1995, gross profit was $7,448,000 or 11.2% of sales
and $18,879,000 or 9.4% of sales, respectively.
Selling, general and administrative expenses were $4,785,000 or 7.2% of sales
in the third quarter and $14,786,000 or 7.5% of sales in the first nine months
of fiscal year 1996. Selling, general and administrative expenses for the
third quarter and first nine months of fiscal year 1995 were $4,934,000 or 7.4%
of sales and $14,244,000 or 7.1% of sales, respectively. These increases in
selling, general and administrative expenses can be attributed to the
implementation of a planned strengthening of the Company's design, sales and
marketing function.
Other income was $128,000 in third quarter and $441,000 for the first nine
months of fiscal year 1996 as compared to $76,000 in the third quarter and
$301,000 for the first nine months of fiscal year 1995.
Interest expense increased $53,000 from $783,000 in the third quarter of fiscal
year 1995 to $836,000 in third quarter fiscal year 1996. For the first nine
months of fiscal year 1996, interest expense was $2,402,000 as compared to
$2,232,000 for the first
Page 7 of 12
<PAGE> 8
nine months of last year. This increase was primarily the result of slightly
higher interest rates and additional borrowings under the Company's revolving
credit agreement.
Income tax expense decreased for the quarter and nine months ended March 30,
1996 as compared to the quarter and nine months ended April 1, 1995. This
decrease is the result of the statutory tax rates being applied to the pretax
loss this year as opposed to pretax profits last year.
The Company lost $592,000 or $.09 per share for the third quarter and $914,000
or $.14 per share for the first nine months of fiscal year 1996. Net income
for the comparable quarter and nine months last year was $1,110,000 or $.17 per
share and $1,660,000 or $.26 per share respectively.
LIQUIDITY AND CAPITAL RESOURCES
The Company continues to maintain a strong financial position. At March 30,
1996, working capital was $73,287,000 as compared to $70,039,000 at April 1,
1995. The ratio of current assets to current liabilities was 5.4:1 at March
30, 1996 and 4.6:1 at April 1, 1995.
Cash provided by operating activities totaling $6,838,000 was the principal
source of funds for the nine months ended March 30, 1996.
The Company's primary use of funds during the first nine months of fiscal year
1996 was $9,780,000 in purchases of property, plant and equipment, offset by a
$3,556,000 decrease in unexpended construction funds.
During the latter part of fiscal year 1995, the Company placed into service
additional equipment which has increased denim production capacity by
approximately twenty percent. To finance the expansion of the denim
production, the Company on April 5, 1995 entered into an agreement with the
Development Authority of Pike County, Georgia to issue $3,700,000 in Tax-Exempt
Adjustable Mode Industrial Development Revenue Bonds. Interest on these bonds
is paid quarterly. The maturity date of the bond issue is April 2005.
During the second quarter of fiscal year 1995, the Company revised and expanded
its revolving credit agreement with a group of banks to provide for unsecured
borrowings of up to $24,000,000. At March 30, 1996, $500,000 was available
under this agreement. On April 19, 1996, the Company executed a second
amendment which expanded and redated this revolving credit agreement to provide
for unsecured borrowings of up to $27,000,000 with an extended maturity date to
April 19, 2006.
The Company had capital expenditure commitments at March 30, 1996 for
approximately $2,500,000, primarily for machinery and equipment. Management
believes that cash provided by operating activities and the revolving credit
agreement will be sufficient to finance capital requirements and operating
needs of the Company for fiscal year 1996.
Page 8 of 12
<PAGE> 9
INVENTORIES
Inventories at March 30, 1996 and April 1, 1995 were $44,651,000 and
$45,215,000 respectively. The Company closely monitors inventory levels and,
through manufacturing capacity utilization, adjusts these levels in relation to
current and forecasted sales. Total inventory turns on an average annualized
rate were 5.4 times for the first nine months of fiscal years 1996 and 1995.
Through July 2, 1994 the Company accounted for the cotton, polyester, labor and
overhead components of raw materials, work in process and finished goods
inventories 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. Effective with the first day of fiscal year
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 on the first nine months of fiscal year 1995 was to decrease net
income by approximately $443,000 ($.07 per share). 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 the change to the dollar value method was not
significant.
RAW MATERIALS
The Company's primary raw material is cotton. As a commodity, cotton is traded
on established markets and periodically experiences price fluctuations. The
Company monitors the cotton market and buys its cotton from brokers. The
Company has not had and does not anticipate any material difficulty in
obtaining cotton.
In order to assure a continuous supply of cotton, the Company enters into
cotton purchase contracts for several months in advance of delivery which
either provide for (1) fixed quantities to be purchased at a pre-determined
price, or (2) fixed quantities to be purchased at a price to be determined (at
a later date). When the Company sells its product to its customers, the cost
of cotton under existing cotton purchase contracts is taken into account in
calculating the price for the Company's product. The Company generally
attempts to match product sales contracts with fixed price cotton purchase
contracts and uses market price cotton contracts to anticipate future needs and
subsequent product sales contracts. To the extent prices are sometimes fixed
in advance of shipment, the Company may benefit from its cotton purchase
contracts to the extent prices thereafter rise, or incur increased cost to the
extent prices thereafter fall.
GATT
In December 1993, 117 countries reached an agreement under the General
Agreement on Tariffs and Trade that would cover new areas of trade, further cut
tariffs and strengthen multilateral free-trade rules by creating a World Trade
Organization (WTO) as its successor. This agreement was ratified by the United
States Congress and went into effect on July 1, 1995. As part of this new
agreement, the Multifiber Arrangement
Page 9 of 12
<PAGE> 10
(MFA) under which textile and apparel trade had been controlled, will be phased
out along with its import quotas over a 10-year period. Tariffs on textiles
will be cut by an average of 11.6% over 10 years. A weighted average tariff
for products sold by Thomaston Mills, if imported, would be cut by 8.8%. Under
the agreement, quotas on the least sensitive import products will be phased out
over the first five years and quotas on the most sensitive import products will
not be affected until the latter part of the ten-year period.
The WTO agreement contains some provisions which may have a favorable impact on
the textile industry. An assembly rule of origin amendment makes it illegal
for a non-WTO member country to assemble garments from pieces cut in a member
country and then export the garments as originating in the country where they
were cut. Additionally, the agreement preserves the authority of the President
of the United States to control imports from non-WTO countries such as Taiwan
or China.
Although the WTO agreement may reduce the cost of certain imported textiles,
the Company believes that upgraded technology resulting in increased
productivity and lower costs will enable it to compete in a global market.
BACKLOG
The Company's order backlog at March 30, 1996 was $114.7 million which
represents an increase of 5.5% when compared to the backlog of $108.7 million
at July 1, 1995.
Page 10 of 12
<PAGE> 11
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
(a) As of March 30, 1996, 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
(a) (b) (c) (d) Not applicable.
ITEM 5. OTHER INFORMATION
Not Applicable.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
13.1 Quarterly Report to Shareholders dated
March 30, 1996
27.0 Financial Data Schedule (for SEC purposes only)
(b) The Company did not file any reports on Form 8-K
during the three months ended March 30, 1996.
Page 11 of 12
<PAGE> 12
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.
/s/ Neil H. Hightower
------------------------------------
Neil H. Hightower
Date: May 14, 1996 President and Chief Executive Officer
/s/ Rosser R. Raines
-------------------------------------
Rosser R. Raines
Date: May 14, 1996 Treasurer-Principal Financial Officer
Page 12 of 12
<PAGE> 1
EXHIBIT 13.1
NEWS RELEASE
T H I R D Q U A R T E R R E P O R T
1 9 9 6
TO THE SHAREHOLDERS:
Sales at Thomaston Mills, Inc. were flat for the quarter ended March 30, 1996,
at $66,150,000 compared to $66,290,000 the same quarter last year. The Company
sustained a loss of $592,000 or $.09 per share for the quarter. This loss
compared to a profit of $1,110,000 for third quarter last year but was less
than the loss last quarter. Year to date sales were $196,131,000 down 3.0% and
the Company lost $914,000 or $.14 per share.
The textile industry has invested a tremendous amount in new plant and
equipment over the last few years in an effort to improve productivity and
compete on a global basis. While these investments have indeed made the
industry more competitive, they have created an oversupply condition. This
oversupply, coupled with a difficult retail environment, has caused the current
textile slowness. At Thomaston Mills, low capacity utilization and high raw
material prices also contributed to the earnings situation.
On the positive side, Thomaston Mills has continued its modernization program
and is now one of the most modern textile companies in America. Significant
progress has been made in strengthening the Company's marketing function.
At the April market in New York, Thomaston Mills launched the J.G. Hook line of
consumer products which is an upscale group of coordinated sheets, comforters
and other bedroom products, which will broaden the Company's customer base and
move the Company into higher price point merchandise areas.
We believe the current textile slowness is temporary, and we already are seeing
some signs of improved capacity utilization. Thomaston Mills is making real
progress in establishing long lasting customer partnerships, and the Company is
well positioned to rebound in sales and earnings as the textile economy
improves.
Sincerely,
/s/ Neil H. Hightower
Neil H. Hightower
President and CEO
April 23, 1996
<PAGE> 2
THOMASTON MILLS, INC.
CONDENSED STATEMENTS OF OPERATIONS
(Dollars in Thousands except Per Share Data)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
March 30, April 1, March 30, April 1,
1996 1995 1996 1995
==========================================================================================================
<S> <C> <C> <C> <C>
Net sales $ 66,150 $ 66,290 $ 196,131 $ 201,897
Cost of sales 61,612 58,842 180,858 183,018
- ----------------------------------------------------------------------------------------------------------
4,538 7,448 15,273 18,879
Selling, general and administrative expenses 4,785 4,934 14,786 14,244
Other income (expense) 128 76 441 301
- ----------------------------------------------------------------------------------------------------------
(119) 2,590 928 4,936
Interest expense 836 783 2,402 2,232
- ----------------------------------------------------------------------------------------------------------
Income (loss) before income taxes (955) 1,807 (1,474) 2,704
Provision for income taxes (benefit) (363) 697 (560) 1,044
- ----------------------------------------------------------------------------------------------------------
Net income (loss) $ (592) $ 1,110 $ (914) $ 1,660
- ----------------------------------------------------------------------------------------------------------
Average Number Shares 6,537,196 6,430,541 6,536,800 6,506,705
Net income (loss) per share $ (0.0900) $ 0.1700 $ (0.1400) $ 0.2600
Dividends paid per share $ 0.0725 $ 0.0700 $ 0.2175 $ 0.2100
</TABLE>
CONDENSED BALANCE SHEETS
(Dollars in Thousands)
<TABLE>
<CAPTION>
March 30, April 1,
1996 1995
==========================================================================================================
<S> <C> <C>
ASSETS
Current Assets
Cash and cash equivalents $ 1,567 $ 978
Accounts receivable 41,431 42,596
Less allowance for uncollectible accounts (415) (415)
Inventories 44,651 45,215
Other current assets 2,612 1,343
- ----------------------------------------------------------------------------------------------------------
Total Current Assets 89,846 89,717
Property, Plant and Equipment 227,181 218,248
Less allowance for depreciation (140,760) (133,555)
Other assets 1,477 702
- ----------------------------------------------------------------------------------------------------------
$177,744 $175,112
==========================================================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 6,677 $ 10,044
Accrued liabilities 6,695 7,360
Federal and state income taxes 0 777
Current portion of capital lease obligations 439 416
Current portion of long-term debt 2,748 1,081
- ----------------------------------------------------------------------------------------------------------
Total Current Liabilities 16,559 19,678
Obligations under capital leases 1,533 1,450
Long-term debt 44,260 38,309
Deferred income taxes 7,233 6,571
Other liabilities 165 119
Shareholders' Equity 107,994 108,985
- ----------------------------------------------------------------------------------------------------------
$177,744 $175,112
==========================================================================================================
</TABLE>
Note: As previously reported, in the first quarter of fiscal 1995 the Company
changed from the FIFO to the LIFO method of accounting for purchased cloth and
yarn. The cumulative effect of this change was not determinable. The effect
of this change on the quarter and nine months was to decrease net income by
approximately $148,000 ($.02 per share) and $443,000 ($.07 per share)
respectively.
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-29-1996
<PERIOD-START> JUL-02-1995
<PERIOD-END> MAR-30-1996
<CASH> 1,567
<SECURITIES> 0
<RECEIVABLES> 41,431
<ALLOWANCES> 415
<INVENTORY> 44,651
<CURRENT-ASSETS> 89,846
<PP&E> 227,181
<DEPRECIATION> 140,760
<TOTAL-ASSETS> 177,744
<CURRENT-LIABILITIES> 16,559
<BONDS> 20,760
0
0
<COMMON> 7,494
<OTHER-SE> 100,500
<TOTAL-LIABILITY-AND-EQUITY> 177,744
<SALES> 196,131
<TOTAL-REVENUES> 196,572
<CGS> 180,858
<TOTAL-COSTS> 180,858
<OTHER-EXPENSES> 14,786
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,402
<INCOME-PRETAX> (1,474)
<INCOME-TAX> (560)
<INCOME-CONTINUING> (914)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (914)
<EPS-PRIMARY> (.14)
<EPS-DILUTED> (.14)
</TABLE>
