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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 10-K/A
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the fiscal year ended June 27, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [NO FEE REQUIRED] For the transition period
from to
Commission File No. 0-1915
THOMASTON MILLS, INC.
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(Exact name of registrant as specified in its charter)
Georgia 58-0460470
------------------------------- -------------------
(State or other jurisdiction of (I.R.S. employer
incorporation or organization) identification no.)
115 East Main Street
Thomaston, Georgia 30286-0004
------------------------------- ----------------
(Address of principal (Zip Code)
executive offices)
Registrant's telephone number, including area code: (706) 647-7131
Securities Registered Pursuant to Section 12(b) of the Act: None
Securities Registered Pursuant to Section 12(g) of the Act:
Class A Common Stock, Par Value $1 Per Share
--------------------------------------------
(Title of Class)
Class B Common Stock, Par Value $1 Per Share
--------------------------------------------
(Title of Class)
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 registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K. X
---
The aggregate market value of the voting stock held by non-affiliates
of the registrant as of August 27, 1998: Class B Common Stock, $1 Par Value -
$3,139,324 based upon the average bid and ask price of such stock on August 26,
1998, excluding Class B Common Stock owned by officers and directors, some of
whom may be held not to be affiliates.
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PART III
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORT ON FORM 8-K
(a) (1) and (2) The response to this portion of Item 14 is submitted as a
separate section of this report. (3) Listing of Exhibits
<TABLE>
<CAPTION>
EXHIBIT NO. DESCRIPTION OF DOCUMENT
- ----------- -----------------------
<S> <C>
13.0 Portions of the 1997 Annual Report mailed to shareholders
</TABLE>
(b) Reports on Form 8-K filed in the fourth quarter of fiscal 1998 - none.
(c) Exhibits - The response to this portion of Item 14 is submitted as a
separate section of this report.
2
<PAGE> 3
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.
THOMASTON MILLS, INC.
Date: September 28, 1998 /s/ Neil H. Hightower
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Neil H. Hightower
President, Chief Executive Officer and
Director
Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated.
/s/ Rosser R. Raines /s/ H. Stewart Davis
- --------------------------------------- -----------------------------
Rosser R. Raines H. Stewart Davis
Treasurer, Principal Financial Officer, Executive Vice President and
Chief Accounting Officer, and Director Director
Date: September 28, 1998 Date: September 28, 1998
/s/ George H. Hightower, Jr. /s/ George H. Hightower
- --------------------------------------- -----------------------------
George H. Hightower, Jr. George H. Hightower
Executive Vice President and Director
Director Date: September 28, 1998
Date: September 28, 1998
/s/ William H. Hightower, Jr. /s/ C. Ronald Barfield
- --------------------------------------- -----------------------------
William H. Hightower, Jr. C. Ronald Barfield
Director Director
Date: September 28, 1998 Date: September 28, 1998
3
<PAGE> 1
EXHIBIT 13
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
<TABLE>
<CAPTION>
JUNE 27, 1998 JUNE 28, 1997
------------- -------------
<S> <C> <C>
ASSETS
Current Assets:
Cash and cash equivalents $ 1,122 $ 1,886
Trade accounts receivable less allowance of
$871 in 1998 and $500 in 1997 46,268 50,140
Inventories 46,585 48,229
Deferred income taxes 5,016 1,754
Prepaid expenses and other current assets 1,089 343
Refundable income taxes 2,727 2,898
-------- --------
Total current assets 102,807 105,250
Property, Plant and Equipment:
Land and improvements 5,737 5,616
Buildings and improvements 48,844 48,747
Machinery, equipment and fixtures 196,578 193,143
-------- --------
251,159 247,506
Less allowances for depreciation
and amortization 168,336 158,133
-------- --------
82,823 89,373
Other assets 4,536 4,238
-------- --------
Total assets $190,166 $198,861
======== ========
</TABLE>
12
<PAGE> 2
LIABILITIES AND SHAREHOLDERS' EQUITY
<TABLE>
<CAPTION>
June 27, 1998 June 28, 1997
------------- -------------
<S> <C> <C>
Current Liabilities:
Trade accounts payable..................... $ 11,805 $ 16,060
Salaries and wages......................... 1,302 1,359
Withholding and payroll taxes.............. 958 514
Local taxes................................ 878 838
Accrued interest........................... 356 331
Other current liabilities.................. 4,607 5,373
Current portion of long-term debt.......... 2,648 2,648
-------- -------
Total current liabilities.................... 22,554 27,123
Long-term debt, less current portion......... 72,268 62,917
Capital lease obligations, less
current portion............................ 1,361 1,100
Deferred income taxes........................ 4,907 5,757
Other liabilities............................ 2,861 2,503
Shareholders' equity:
Class A Common Stock - $1 par; 30,000,000
shares authorized; 5,620,518 shares
outstanding including 710,838 treasury
shares in 1998 and 710,888 in 1997....... 5,621 5,621
Class B Common Stock - $1 par; 10,000,000
shares authorized; 1,873,506 shares
outstanding including 243,140 treasury
shares in 1998 and 1997.................. 1,873 1,873
Additional paid-in capital................. 8,904 8,904
Retained earnings.......................... 75,237 88,483
-------- --------
91,635 104,881
Less treasury stock -- at cost............. 5,420 5,420
-------- --------
86,215 99,461
-------- --------
Total liabilities and shareholders'
equity............................... $190,166 $198,861
======== ========
</TABLE>
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<PAGE> 3
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(In thousands, except share data)
<TABLE>
<CAPTION>
CLASS A CLASS B ADDITIONAL
COMMON COMMON PAID-IN RETAINED TREASURY
STOCK STOCK CAPITAL EARNINGS STOCK TOTAL
------- ------- ---------- -------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
BALANCE JULY 1, 1995.......................... $5,621 $1,873 $8,863 $ 99,389 $(5,471) $110,275
Net income for the year....................... -- -- -- 615 -- 615
Cash dividends on common stock,
$.2925 per share............................ -- -- -- (1,912) -- (1,912)
Exercise of stock options,
including tax effects....................... -- -- 41 -- 51 92
------ ------ ------ -------- ------- --------
BALANCE JUNE 29, 1996......................... 5,621 1,873 8,904 98,092 (5,420) 109,070
Net loss for the year......................... -- -- -- (7,647) -- (7,647)
Cash dividends on common stock,
$.30 per share.............................. -- -- -- (1,962) -- (1,962)
------ ------ ------ --------- ------- --------
BALANCE JUNE 28, 1997......................... 5,621 1,873 8,904 88,483 (5,420) 99,461
Net loss for the year......................... -- -- -- (11,529) -- (11,529)
Cash dividends on common stock,
$.2625 per share............................ -- -- -- (1,717) -- (1,717)
------ ------ ------ --------- ------- --------
BALANCE JUNE 27, 1998......................... $5,621 $1,873 $8,904 $ 75,237 $(5,420) $ 86,215
====== ====== ====== ========= ======= ========
</TABLE>
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<PAGE> 4
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share data)
<TABLE>
<CAPTION>
Fifty-two Week Fifty-two Week Fifty-two Week
Period ended Period ended Period ended
June 27, 1998 June 28, 1997 June 29, 1996
--------------------------------------------------------------
<S> <C> <C> <C>
Net sales $ 280,730 $ 285,958 $ 277,665
Cost of sales 273,675 273,058 254,055
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Gross profit 7,055 12,900 23,610
Selling, general and
administrative expenses 20,141 22,304 19,967
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Operating income (loss) (13,086) (9,404) 3,643
Interest expense 5,147 3,453 3,226
Other income, net 374 453 515
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Income (loss) before income taxes (17,859) (12,404) 932
Provision (benefit) for income taxes (6,330) (4,757) 317
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Net income (loss) $ (11,529) $ (7,647) $ 615
==============================================================
Weighted average number of shares:
Basic 6,540,020 6,539,996 6,537,635
Effect of dilutive securities --
employee stock options -- -- 11,397
--------------------------------------------------------------
Diluted 6,540,020 6,539,996 6,548,635
==============================================================
Basic and diluted net
income (loss) per share $ (1.76) $ (1.17) $ .09
==============================================================
</TABLE>
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<PAGE> 5
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
<TABLE>
<CAPTION>
Fifty-two Week Fifty-two Week Fifty-two Week
Period ended Period ended Period ended
June 27, 1998 June 28, 1997 June 29, 1996
------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATING ACTIVITIES Net income (loss) $(11,529) $ (7,647) $ 615
Adjustments to reconcile net
income (loss) to net cash provided
by operating activities:
Depreciation and amortization 16,878 17,296 16,331
Gain on sale of property,
plant and equipment (63) (7) (34)
Deferred income tax
(benefit) (4,602) (1,347) (1,093)
Changes in operating assets and
liabilities:
Accounts receivable 3,872 268 516
Inventories 1,644 (5,519) (3,044)
Prepaid expenses and other
assets (383) (4,031) (768)
Accounts payable (4,255) 180 1,666
Accrued expenses 59 2,251 (146)
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NET CASH PROVIDED BY OPERATING
ACTIVITIES 1,621 1,444 14,043
INVESTING ACTIVITIES Purchases of property, plant and
equipment (10,334) (16,049) (18,457)
Less capital lease obligations incurred 664 -- 557
------------------------------------------------------
Cash for property, plant and
equipment (9,670) (16,049) (17,900)
Use of unexpended construction
funds -- -- 3,568
Proceeds from sales of property,
plant and equipment 68 11 171
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NET CASH USED IN INVESTING
ACTIVITIES (9,602) (16,038) (14,161)
FINANCING ACTIVITIES Proceeds from revolving lines of
credit and long-term debt 12,664 39,500 7,557
Less capital lease obligations
incurred (664) -- (557)
------------------------------------------------------
Cash proceeds from borrowings 12,000 39,500 7,000
Principal payments on revolving
lines of credit, long-term debt
and capital lease obligations (3,066) (23,135) (4,529)
Exercise of stock options -- -- 92
Cash dividends paid (1,717) (1,962) (1,912)
------------------------------------------------------
NET CASH PROVIDED BY FINANCING
ACTIVITIES 7,217 14,403 651
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(DECREASE) INCREASE IN CASH AND
CASH EQUIVALENTS (764) (191) 533
Cash and cash equivalents at
beginning of period 1,886 2,077 1,544
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Cash and cash equivalents at
end of period $ 1,122 $ 1,886 $ 2,077
=======================================================
</TABLE>
See accompanying notes
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NET INCOME (LOSS) PER SHARE
Basic net income (loss) per share is computed by dividing net income (loss) by
the weighted-average number of shares outstanding. Diluted net income (loss)
per share includes the dilutive effect of stock options. Options to purchase
common stock equivalent shares of 647,221, 534,066 and 502,296 for 1998, 1997
and 1996, respectively, were not included in the computation of diluted net
income (loss) per share because there was a net loss and/or the exercise price
of the options was greater than the average market price of the common shares
and therefore, the effect would be antidilutive.
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