Haggar Announces Core Earnings Per Share Increase of 26% for the
Second Quarter of Fiscal 2004 DALLAS, April 27
/PRNewswire-FirstCall/ -- Haggar Corp. announced results for the
three and six months ended March 31, 2004. Actual net income for
the second quarter of fiscal 2004 was $2.7 million or $0.38
earnings per diluted share, as compared to actual net income of
$1.8 million for the second quarter of fiscal 2003, or $0.29
earnings per share. For the second quarter of fiscal 2004, Haggar
reported a 26% increase in core earnings per diluted share to
$0.49, or $3.4 million in core earnings. This compares to the
second quarter of fiscal 2003, in which the Company reported core
earnings per diluted share of $0.39, or $2.5 million in core
earnings. Actual net income for the six months ended March 31, 2004
was $3.9 million, or $0.56 earnings per diluted share, as compared
to a net loss for the six months ended March 31, 2003 of $0.2
million or $0.03 loss per share. For the six months ended March 31,
2004, Haggar reported a 79% increase in core earnings per diluted
share to $0.68 in 2004, or $4.7 million in core earnings. This
compares to the six months ended March 31, 2003, in which the
Company reported core earnings per diluted share of $0.38, or $2.5
million in core earnings. Net sales for the six months ended March
31, 2004 were $239.8 million compared to $249.4 million for the six
months ended March 31, 2003. Earnings Summary (unaudited) (in
thousands, except per share amounts) Three Months Ended Six Months
Ended March 31, March 31, 2004 2003 2004 2003 Actual net income
(loss) $2,671 $1,831 $3,856 $(174) Actual net income (loss) per
common share - Diluted $0.38 $0.29 $0.56 $(0.03) Unusual charges
(benefits) net of tax: Relocation of global headquarters 422 ---
509 --- Wrongful termination lawsuit 309 --- 309 --- Proxy defense
costs --- 527 --- 752 Legal settlement on landlord dispute --- 307
--- 307 Gain on sale of Edinburg, Texas facility --- (190) ---
(190) Strategic media advertising --- --- --- 1,755 Core earnings
$3,402 $2,475 $4,674 $2,450 Core earnings per common share -
Diluted $0.49 $0.39 $0.68 $0.38 Weighted average shares outstanding
- Diluted 6,986 6,430 6,861 6,418 J. M. Haggar, III, the Company's
Chairman and Chief Executive Officer, stated, "Our efforts to
improve margins during this fiscal year continue to reap benefits,
as our increased margins have contributed to the 26% core earnings
per share growth for the company for the period ending March 31,
2004." Frank Bracken, President and Chief Operating Officer, added,
"The Company has continued its progress towards developing Smart,
Innovative, American(TM) products for our customers as evidenced by
our recent introduction of innovative products utilizing a
proprietary new treatment for cotton pants, sport shirts, and dress
pants. This innovation eliminates fading, shrinking, staining, and
wrinkling. Products having this technology, entitled 'Forever
New(TM),' will continue to be introduced by the Company throughout
this year." David Tehle, Executive Vice President and Chief
Financial Officer, noted, "The Company reduced its debt to $11.7
million as of the end of the second quarter of fiscal 2004, as
compared to $36.3 million in debt as of the end of the second
quarter of fiscal 2003, a debt reduction of $24.6 million." The
Haggar Board of Directors continued the $0.05 per share quarterly
dividend. The dividend will be payable on May 24, 2004, to
shareholders of record as of May 10, 2004. The Company will file a
Form 8-K with the Securities and Exchange Commission today with its
updated financial projections for fiscal 2004. The Company has
increased its earnings per share projection range to $1.22 to $1.31
for the full year for fiscal 2004. Haggar Clothing Co., a
wholly-owned subsidiary of Haggar Corp., is a leading marketer of
men's casual and dress apparel and women's sportswear, with global
headquarters in Dallas, TX. Haggar markets in the United States,
the United Kingdom, Canada, Mexico, and Indonesia. Haggar also
holds exclusive licenses in the United States to use the
Claiborne(R) trademark, Kenneth Cole New York(R), and Kenneth Cole
Reaction(R) trademarks to manufacture, market, and sell men's
shorts and pants in men's classification pant departments. For more
information visit the Haggar website at http://www.haggarcorp.com/
. The statements contained in this release that are not historical
facts are forward-looking statements. These forward-looking
statements are subject to known and unknown risks, uncertainties
and assumptions that could cause actual results to differ
materially from those anticipated or implied by the forward-
looking statements; the results could be affected by, among other
things, general business conditions, the impact of competition, the
seasonality of the Company's business, labor relations,
governmental regulations, unexpected judicial decisions, and
inflation. In addition, the financial results for the quarter just
ended do not necessarily indicate the results that may be expected
for any future quarters or for any fiscal year. Investors also
should consider other risks and uncertainties discussed in
documents filed by the Company with the Securities and Exchange
Commission. Given these uncertainties, readers are cautioned not to
place undue reliance on such forward-looking statements. The
Company undertakes no obligation to update any such statements or
publicly announce any updates or revisions to any of the
forward-looking statements contained herein to reflect any change
in the Company's expectations with regard thereto or any changes in
events, conditions, circumstances or assumptions underlying such
statements. Use of Non-Generally Accepted Accounting Principles
(Non-GAAP) Financial Information The Company reports its financial
results in accordance with GAAP. However, the Company uses core
earnings as a non-GAAP performance measure to provide both
management and investors a more complete understanding of the
Company's underlying operational results. This non-GAAP measure is
an indicator management uses to provide additional meaningful
comparisons between current results and prior reported results, and
as a basis for planning and forecasting for future periods. Core
earnings is calculated by taking actual net income (loss) and
adjusting that amount for unusual charges or benefits (based on
management's interpretation) which are calculated net of tax. The
presentation of core earnings is not meant to be considered in
isolation or as a substitute for comparable metrics prepared in
accordance with GAAP in the United States. HAGGAR CORP. Condensed
Consolidated Statements of Operations Three Months Ended Six Months
Ended March 31, March 31, 2004 2003 2004 2003 (Unaudited, in
thousands, except per share amounts) Net sales $132,071 $135,487
$239,805 $249,394 Cost of sales 95,168 100,638 171,580 185,921
Gross profit 36,903 34,849 68,225 63,473 Selling, general and
administrative expenses (32,492) (32,012) (62,067) (63,543) Royalty
income 345 300 598 675 Other income 26 533 399 480 Interest expense
(459) (648) (916) (1,383) Income (loss) before provision (benefit)
for income taxes 4,323 3,022 6,239 (298) Provision (benefit) for
income taxes 1,652 1,191 2,383 (124) Net income (loss) 2,671 1,831
3,856 (174) Net income (loss) per common share -Basic 0.39 0.29
0.58 (0.03) -Diluted 0.38 0.29 0.56 (0.03) Weighted average shares
outstanding -Basic 6,823 6,418 6,691 6,418 -Diluted 6,986 6,430
6,861 6,418 Condensed Consolidated Balance Sheet March 31, 2004
September 30, 2003 (Unaudited) Assets (In thousands) Cash and cash
equivalents $6,645 $7,674 Accounts receivable, net 68,593 56,528
Inventories 99,365 96,959 Deferred tax asset 10,505 10,505 Other
current assets 5,791 3,557 Total current assets 190,899 175,223
Property, plant and equipment, net 45,411 45,932 Goodwill, net
9,472 9,472 Other assets 6,121 7,580 Total assets $251,903 $238,207
Liabilities and Stockholders' Equity Accounts payable $25,349
$26,245 Accrued liabilities 34,558 31,898 Other current liabilities
5,323 7,228 Current portion of long-term debt 3,671 3,671 Total
current liabilities 68,901 69,042 Other non-current liabilities
11,346 10,077 Long-term debt 8,000 5,671 Stockholders' equity
163,656 153,417 Total liabilities and stockholders' equity $251,903
$238,207 DATASOURCE: Haggar Corp. CONTACT: David Tehle, Executive
Vice President and Chief Financial Officer of Haggar Corp.,
+1-214-956-4511, or fax, +1-214-956-4446 Web site:
http://www.haggarcorp.com/
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