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EXHIBIT 13.1
[LOGO]
NEWS
RELEASE
FIRST QUARTER REPORT
2001
TO THE SHAREHOLDERS:
Thomaston Mills' first fiscal quarter began on a slow note. Sales for the
quarter were $36,633,000, down ten percent from the year before, and the
Company's gross margin fell to $1,632,000 compared to $4,499,000 the year
before. This yields a net loss for the quarter of $3,603,000 or $.55 per share.
Our retail customers have slowed in taking out their orders, and this caused
lower capacity utilization in both consumer products and apparel fabrics. The
Company has performed well in on time delivery and quality, and this has helped
build business for future shipment.
Selling, general and administrative expenses were reduced over $600,000 for the
quarter compared to the same quarter last year, and debt was reduced by over
$8.0 million from the year before.
In looking ahead, we expect continued slowness at retail through the December
quarter. The entire industry is operating in a challenging environment and
Thomaston Mills has not been immune to the effects. Our people are putting
forth tremendous effort to return to profitability, and we are seeing
improvement in orders for shipment in the January quarter.
Sincerely,
/s/ Neil H. Hightower
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Neil H. Hightower
President and CEO
November 3, 2000
THOMASTON MILLS, INC.
Post Office Box 311
THOMASTON, GEORGIA 30286
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THOMASTON MILLS, INC.
CONDENSED STATEMENTS OF OPERATIONS
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
(UNAUDITED)
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<CAPTION>
13 WEEKS ENDED 13 Weeks Ended
SEPTEMBER 30, 2000 October 2, 1999
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<S> <C> <C>
Net sales ........................................ $ 36,633 $ 40,724
Cost of sales .................................... 35,001 36,225
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Gross profit .................................. 1,632 4,499
Selling, general and administrative expenses ..... 3,386 4,057
Other expense (income), net ...................... (35) (116)
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Operating profit (loss) ....................... (1,719) 558
Interest expense ................................. 2,154 2,068
Amortization of credit agreement fees ............ 151 74
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Loss from continuing operations .................. (4,024) (1,584)
Income (loss) from discontinued operations ....... 421 (6)
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Net loss ......................................... $ (3,603) $ (1,590)
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Weighted average number of shares ................ 6,540,046 6,540,046
Basic and diluted loss per share:
Continuing operations ........................... $ (0.62) $ (0.24)
Discontinued operations ......................... .07 0.00
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Net loss per share ............................... $ (0.55) $ (0.24)
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CONDENSED BALANCE SHEETS
(DOLLARS IN THOUSANDS)
(UNAUDITED)
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<CAPTION>
SEPTEMBER 30, 2000 July 1, 2000
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<S> <C> <C>
ASSETS
Current assets
Cash and cash equivalents ............................................... $ 1,081 $ 1,415
Accounts receivable less allowance of $706 at September 30, 2000
and $621 at July 1, 2000 .............................................. 22,615 29,218
Inventories ............................................................. 34,049 37,236
Other current assets .................................................... 1,550 573
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Total current assets ............................................... 59,295 68,442
Property, plant and equipment ............................................ 171,476 170,600
Less allowance for depreciation ........................................ 126,247 124,366
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45,229 46,234
Assets held for sale ..................................................... 5,431 5,628
Deferred income taxes .................................................... 2,709 2,709
Other assets ............................................................. 7,149 8,398
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Total assets ....................................................... $119,813 $131,411
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable ........................................................ $ 17,185 $ 19,857
Accrued liabilities ..................................................... 10,667 9,533
Current portion of long-term debt
and capital lease obligations ......................................... 4,545 4,147
Revolving credit ........................................................ 28,280 34,525
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Total current liabilities .......................................... 60,677 68,062
Obligations under capital leases less current portion .................... 460 564
Long-term debt, less current portion ..................................... 29,228 29,876
Other liabilities ........................................................ 1,631 1,489
Shareholders' equity ..................................................... 27,817 31,420
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Total liabilities and shareholders' equity ......................... $119,813 $131,411
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RECLASSIFICATIONS: CERTAIN RECLASSIFICATIONS WERE MADE TO THE 2000 CONSOLIDATED
FINANCIAL STATEMENTS IN ORDER TO CONFORM TO THE 2001 PRESENTATION.
FORWARD-LOOKING STATEMENTS: CERTAIN OF THE ABOVE STATEMENTS CONTAINED HEREIN
CONSTITUTE FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE
SECURITIES LITIGATION REFORM ACT OF 1995. SUCH FORWARD-LOOKING STATEMENTS
INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE
THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY
DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESS OR
IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. SUCH FACTORS INCLUDE, AMONG OTHER
THINGS, BUSINESS CONDITIONS, VOLATILITY OF COMMODITIES MARKETS, ABILITY TO
CONTROL OPERATING COSTS, DEVELOPING SUCCESSFUL NEW PRODUCTS AND MAINTAINING
EFFECTIVE PRICING AND PROMOTION OF ITS PRODUCTS.
