The Jones Group Inc. (ticker: JNY, exchange: New York Stock Exchange (.N))
News Release -
31-Oct-2007
Jones Apparel Group, Inc. Reports Third Quarter 2007 Financial Results NEW YORK, Oct. 31 /PRNewswire-FirstCall/ -- Jones Apparel Group, Inc.
(NYSE: JNY) today reported results for the third quarter ended October 6,
2007. Revenues for the third quarter of 2007 totaled $1,028 million versus
revenues of $1,078 million for the third quarter of 2006.
The Company reported earnings per share of $3.97 for the third quarter of
2007, as compared to earnings per share of $0.56 in the same period last year.
Excluding the effects of the sale of our Barneys retail operations and its
related results, the impact of severance and other expenses related to
restructuring activities and certain other charges, adjusted earnings per
share from continuing operations for the third quarter of 2007 were $0.51, as
compared with $0.59 for the same period last year, as detailed in the
accompanying schedule.
Wesley R. Card, President and Chief Executive Officer, stated, "Despite
the continued challenges in the retail environment throughout the third
quarter, which were primarily due to the unseasonably warm weather and
economic conditions affecting our target consumer, our businesses performed in
line with our expectations for the period. Consistent with the overall retail
climate, our company-owned retail stores continued to trend negatively during
the third quarter as comparable store sales were down 8.7% for the period,
even as we began to implement our turnaround efforts."
John T. McClain, Chief Financial Officer, commented, "Our financial
position remains strong. We ended the quarter with $783 million of total debt
and, net of $109 million cash on hand, our debt to total capitalization ratio
was 24.3%, in line with our expectations. Cash used by continuing operating
activities during the period was $111 million, compared with cash provided by
operating activities of $153 million in the prior year. The decrease in cash
from continuing operations was the result of lower earnings, including the
costs related to our strategic initiatives and the exit of our Moderate
Sportswear lines, the timing of shipments and payments for inventory, as well
as the absence of the positive impact from the exit of Polo Jeans Company,
which benefited last year."
Mr. Card continued, "Our guidance for 2007 full year adjusted earnings per
share for continuing operations remains in the range of $1.20 to $1.25,
compared to 2006 adjusted earnings per share for continuing operations of
$1.94. Our performance to date, the execution of the sale of our Barneys
retail operations, the exit of our Moderate Sportswear labels, and the
continued weakening in the retail environment are offset by a lower tax rate
and the benefit of share repurchases."
Mr. Card concluded, "The management team is moving forward together, and
the entire organization has been very focused on our turnaround activities
during the quarter. While we are only in the beginning of this process, we are
cautiously encouraged by our progress. Despite the overall challenges in the
macro economic environment, I am confident that through the initiatives that
began several months ago, we have laid a strong foundation for operational
improvements and we will begin to see results into 2008 and beyond."
The Company's Board of Directors has declared a regular quarterly cash
dividend of $0.14 per share to all common stockholders of record as of
November 16, 2007 for payment on November 30, 2007.
The Company also reported that under the terms of the $400 million
accelerated share repurchase ("ASR") agreement it entered into with Goldman,
Sachs & Co. ("Goldman") in September, it has received approximately 2.4
million additional shares of its outstanding common stock in October, bringing
the total it has received to date under the ASR to approximately 17.9 million
shares. Remaining shares, if any, to be received under the ASR program, up to
a maximum of 3.1 million possible shares, will be received upon final
settlement of the program, which is scheduled for no later than July 19,
2008, and may occur earlier at the option of Goldman or later under certain
circumstances.
During the quarter, as previously reported, the Company also repurchased
5.1 million shares for $95 million under its current share repurchase
authorization, and has approximately $300 million remaining under its
authorization program.
Separately, on October 17, 2007, the Board of Directors of Jones Apparel
Group, Inc. elected Donna F. Zarcone to the Board of Directors, effective
October 29, 2007. Ms. Zarcone has been named to the Audit Committee and the
Nominating/Corporate Governance Committee of the Board. Ms. Zarcone will stand
for election at the Company's 2008 Annual Meeting of Shareholders.
The Company will host a conference call with management to discuss these
results at 8:30 a.m. eastern time today, which is accessible by dialing 412-
858-4600 or through a web cast at www.jny.com. The call will be recorded and
made available through November 7 and may be accessed by dialing 877-344-7529.
Enter account number 412322. A slide presentation will accompany the prepared
remarks and has been posted on the investor relations section on the Company's
website.
Presentation of Information in the Press Release
In an effort to provide investors with additional information regarding
the Company's consolidated operating results as determined by generally
accepted accounting principles (GAAP), the Company has also disclosed in this
press release non-GAAP financial information regarding the effect on earnings
per share from continuing operations of the sale of our Barneys retail
operations, the strategic review of its operations, the loss on the sale of
the Polo Jeans Company business, restructuring costs, the costs associated
with the termination of certain licensing agreements and certain other items.
The Company believes that providing this further information will allow
investors to better analyze its ongoing results. The Company has also
provided a reconciliation of its GAAP results to adjusted results. The
Company has not provided a reconciliation with respect to 2007 targeted
earnings per share growth given that it is an estimate derived from projected
results.
About Jones Apparel Group, Inc.
Jones Apparel Group, Inc. (www.jny.com), a Fortune 500 company, is a
leading designer, marketer and wholesaler of branded apparel, footwear and
accessories. The Company also markets directly to consumers through its chain
of specialty retail and value-based stores. The Company's nationally
recognized brands include Jones New York, Nine West, Anne Klein, Gloria
Vanderbilt, Kasper, Bandolino, Easy Spirit, Evan-Picone, l.e.i., Energie, Enzo
Angiolini, Joan & David, Mootsies Tootsies, Sam & Libby, Napier, Judith Jack,
Albert Nipon and Le Suit. The Company also markets costume jewelry under the
Givenchy brand licensed from Givenchy Corporation and footwear under the
Dockers Women brand licensed from Levi Strauss & Co. Each brand is
differentiated by its own distinctive styling, pricing strategy, distribution
channel and target consumer. The Company contracts for the manufacture of its
products through a worldwide network of quality manufacturers. The Company
has capitalized on its nationally known brand names by entering into various
licenses for several of its trademarks, including Jones New York, Evan-Picone,
Anne Klein New York, Nine West, Gloria Vanderbilt and l.e.i., with select
manufacturers of women's and men's products which the Company does not
manufacture. For more than 30 years, the Company has built a reputation for
excellence in product quality and value, and in operational execution.
Forward Looking Statements
Certain statements contained herein are "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995.
All statements regarding the Company's expected financial position, business
and financing plans are forward-looking statements. The words "believes,"
"expect," "plans," "intends," "anticipates" and similar expressions identify
forward-looking statements. Forward-looking statements also include
representations of the Company's expectations or beliefs concerning future
events that involve risks and uncertainties, including:
- the impact of changes in the market value of the Company's common stock
on the final number and price of shares repurchased under the
accelerated share repurchase agreement;
- the Company's ability to effectively deploy the proceeds received by it
from the sale of Barneys, and the timing of the use of those proceeds;
- those associated with the effect of national and regional economic
conditions;
- lowered levels of consumer spending resulting from a general economic
downturn or lower levels of consumer confidence;
- the performance of the Company's products within the prevailing retail
environment;
- customer acceptance of both new designs and newly-introduced product
lines;
- the Company's reliance on a few department store groups for large
portions of the Company's business;
- consolidation of the Company's retail customers;
- financial difficulties encountered by customers;
- the effects of vigorous competition in the markets in which the Company
operates;
- the Company's ability to attract and retain qualified executives and
other key personnel;
- the Company's reliance on independent foreign manufacturers;
- changes in the costs of raw materials, labor, advertising and
transportation;
- the general inability to obtain higher wholesale prices for the
Company's products that the Company has experienced for many years;
- the uncertainties of sourcing associated with the new environment in
which general quota has expired on apparel products (while China has
agreed to safeguard quota on certain classes of apparel products
through 2008, political pressure will likely continue for restraint on
importation of apparel);
- the Company's ability to successfully implement new operational and
financial computer systems; and
- the Company's ability to secure and protect trademarks and other
intellectual property rights.
A further description of these risks and uncertainties and other important
factors that could cause actual results to differ materially from the
Company's expectations can be found in the Company's Quarterly Report on Form
10-Q for the quarter ended July 7, 2007, including, but not limited to, the
Statement Regarding Forward-Looking Disclosure and Item 1A-Risk Factors
therein, and in the Company's other filings with the Securities and Exchange
Commission. Although the Company believes that the expectations reflected in
such forward-looking statements are reasonable, such expectations may prove to
be incorrect. The Company does not undertake to publicly update or revise its
forward-looking statements as a result of new information, future events or
otherwise.
JONES APPAREL GROUP, INC.
SEGMENT INFORMATION
(UNAUDITED)
All amounts in millions
Wholesale Wholesale Wholesale
Better Moderate Footwear &
Apparel Apparel Accessories
For the fiscal quarter ended
October 6, 2007
Revenues from external customers $320.5 $246.9 $267.8
Intersegment revenues 46.9 2.0 24.8
Total revenues 367.4 248.9 292.6
Segment income (loss) $44.9 $(9.9) $40.8
12.2% (4.0%) 13.9%
Net interest expense
Reversal of losses on assets held
for sale
Equity in earnings of
unconsolidated affiliates
Income from continuing operations
before provision for income taxes
Segment income (loss) $44.9 $(9.9) $40.8
Adjustments affecting segment income 1.0 28.0 0.5
Adjusted segment income (loss) $45.9 $18.1 $41.3
Adjusted segment margin 12.5% 6.8% 14.1%
For the fiscal quarter ended
September 30, 2006
Revenues from external customers $320.7 $287.4 $260.0
Intersegment revenues 41.9 0.9 16.0
Total revenues 362.6 288.3 276.0
Segment income $48.8 $20.4 $36.7
13.5% 7.1% 13.3%
Net interest expense
Equity in earnings of unconsolidated
affiliates
Income from continuing operations
before provision for income taxes
Segment income $48.8 $20.4 $36.7
Adjustments affecting segment income 9.3 1.1 0.1
Adjusted segment income $58.1 $21.5 $36.8
Adjusted segment margin 16.0% 7.5% 13.3%
For the fiscal nine months ended
October 6, 2007
Revenues from external customers $890.4 $807.4 $732.9
Intersegment revenues 125.1 9.2 52.8
Total revenues 1,015.5 816.6 785.7
Segment income (loss) $129.9 $17.6 $92.3
12.8% 2.2% 11.7%
Net interest expense
Equity in earnings of
unconsolidated affiliates
Income from continuing operations
before provision for income taxes
Segment income (loss) $129.9 $17.6 $92.3
Adjustments affecting segment income 9.5 37.9 1.4
Adjusted segment income (loss) $139.4 $55.5 $93.7
Adjusted segment margin 13.7% 6.6% 11.9%
For the fiscal nine months ended
September 30, 2006
Revenues from external customers $887.7 $887.4 $691.1
Intersegment revenues 112.7 3.0 38.5
Total revenues 1,000.4 890.4 729.6
Segment income $135.6 $84.4 $75.3
13.6% 9.5% 10.3%
Loss on sale of Polo Jeans Company
business
Net interest expense
Equity in earnings of unconsolidated
affiliates
Income from continuing operations
before provision for income taxes
Segment income $135.6 $84.4 $75.3
Adjustments affecting segment income 16.9 1.8 14.9
Adjusted segment income $152.5 $86.2 $90.2
Adjusted segment margin 15.2% 9.7% 12.4%
JONES APPAREL GROUP, INC.
SEGMENT INFORMATION
(UNAUDITED)
All amounts in millions
Licensing,
Other &
Retail Eliminations Consolidated
For the fiscal quarter ended
October 6, 2007
Revenues from external customers $176.8 $15.6 $1,027.6
Intersegment revenues - (73.7) -
Total revenues 176.8 (58.1) 1,027.6
Segment income (loss) $(15.3) $(31.7) 28.8
(8.7%) 2.8%
Net interest expense (12.7)
Reversal of losses on assets held
for sale 30.4
Equity in earnings of
unconsolidated affiliates 1.0
Income from continuing operations
before provision for income taxes $47.5
Segment income (loss) $(15.3) $(31.7) $28.8
Adjustments affecting segment income 0.8 29.8 60.1
Adjusted segment income (loss) $(14.5) $(1.9) $88.9
Adjusted segment margin (8.2%) 8.5%
For the fiscal quarter ended
September 30, 2006
Revenues from external customers $194.5 $14.9 $1,077.5
Intersegment revenues - (58.8) -
Total revenues 194.5 (43.9) 1,077.5
Segment income $3.8 $(7.7) 102.0
2.0% 9.5%
Net interest expense (10.1)
Equity in earnings of
unconsolidated affiliates 1.1
Income from continuing operations
before provision for income taxes $93.0
Segment income $3.8 $(7.7) $102.0
Adjustments affecting segment income 0.9 1.3 12.7
Adjusted segment income $4.7 $(6.4) $114.7
Adjusted segment margin 2.4% 10.6%
For the fiscal nine months ended
October 6, 2007
Revenues from external customers $541.9 $37.3 $3,009.9
Intersegment revenues - (187.1) -
Total revenues 541.9 (149.8) 3,009.9
Segment income (loss) $(38.9) $(130.8) 70.1
(7.2%) 2.3%
Net interest expense (40.0)
Equity in earnings of
unconsolidated affiliates 3.1
Income from continuing operations
before provision for income taxes $33.2
Segment income (loss) $(38.9) $(130.8) $70.1
Adjustments affecting segment income 2.4 99.6 150.8
Adjusted segment income (loss) $(36.5) $(31.2) $220.9
Adjusted segment margin (6.7%) 7.3%
For the fiscal nine months ended
September 30, 2006
Revenues from external customers $576.3 $37.4 $3,079.9
Intersegment revenues - (154.2) -
Total revenues 576.3 (116.8) 3,079.9
Segment income $19.1 $(32.5) 281.9
3.3% 9.2%
Loss on sale of Polo Jeans
Company business (45.1)
Net interest expense (34.1)
Equity in earnings of
unconsolidated affiliates 2.9
Income from continuing operations
before provision for income taxes $205.6
Segment income $19.1 $(32.5) $281.9
Adjustments affecting segment income 4.7 3.2 41.5
Adjusted segment income $23.8 $(29.3) $323.4
Adjusted segment margin 4.1% 10.5%
JONES APPAREL GROUP, INC.
CONSOLIDATED OPERATING RESULTS
(UNAUDITED)
All amounts in millions except per share data
THIRD QUARTER
2007 2006
Net sales $1,011.8 98.5% $1,058.3 98.2%
Licensing income (net) 15.4 1.5% 14.2 1.3%
Service and other revenue 0.4 0.0% 5.0 0.5%
Total revenues 1,027.6 100.0% 1,077.5 100.0%
Cost of goods sold 701.1 68.2% 704.6 65.4%
Gross profit 326.5 31.8% 372.9 34.6%
SG&A expenses 286.2 27.9% 270.9 25.1%
Trademark impairments 11.5 1.1% - -
Reversal of losses on assets held for
sale (30.4) (3.0%) - -
Loss on sale of Polo Jeans Company
business - - - -
Income from operations 59.2 5.8% 102.0 9.5%
Net interest expense and financing costs (12.7) (1.2%) (10.1) (0.9%)
Equity in earnings of unconsolidated
affiliates 1.0 0.1% 1.1 0.1%
Income from continuing operations
before taxes 47.5 4.6% 93.0 8.6%
(Benefit) provision for income taxes (90.9) (8.8%) 34.6 3.2%
Income from continuing operations 138.4 13.5% 58.4 5.4%
Income from discontinued operations,
net of tax 261.7 25.5% 4.6 0.4%
Cumulative effect of change in
accounting for share-based payments,
net of tax - - - -
Net income $400.1 38.9% $63.0 5.8%
Shares outstanding - diluted 100.7 112.4
Earnings per share - diluted
Income from continuing operations $1.37 $0.52
Income from discontinued operations $2.60 $0.04
Cumulative effect of change in
accounting principle $- $-
Net income $3.97 $0.56
Percentages may not add due to rounding.
JONES APPAREL GROUP, INC.
CONSOLIDATED OPERATING RESULTS
(UNAUDITED)
All amounts in millions except per share data
NINE MONTHS
2007 2006
Net sales $2,970.8 98.7% $3,031.5 98.4%
Licensing income (net) 36.8 1.2% 35.5 1.2%
Service and other revenue 2.3 0.1% 12.9 0.4%
Total revenues 3,009.9 100.0% 3,079.9 100.0%
Cost of goods sold 2,028.1 67.4% 1,982.4 64.4%
Gross profit 981.8 32.6% 1,097.5 35.6%
SG&A expenses 831.2 27.6% 815.6 26.5%
Trademark impairments 80.5 2.7% - -
Reversal of losses on assets held for
sale - - - -
Loss on sale of Polo Jeans Company
business - - 45.1 1.5%
Income from operations 70.1 2.3% 236.8 7.7%
Net interest expense and financing
costs (40.0) (1.3%) (34.1) (1.1%)
Equity in earnings of unconsolidated
affiliates 3.1 0.1% 2.9 0.1%
Income from continuing operations
before taxes 33.2 1.1% 205.6 6.7%
(Benefit) provision for income taxes (98.5) (3.3%) 96.2 3.1%
Income from continuing operations 131.7 4.4% 109.4 3.6%
Income from discontinued operations,
net of tax 269.2 8.9% 14.2 0.5%
Cumulative effect of change in
accounting for share-based payments,
net of tax - - 1.9 0.1%
Net income $400.9 13.3% $125.5 4.1%
Shares outstanding - diluted 106.3 113.8
Earnings per share - diluted
Income from continuing operations $1.24 $0.96
Income from discontinued operations $2.53 $0.12
Cumulative effect of change in
accounting principle $- $0.02
Net income $3.77 $1.10
Percentages may not add due to rounding.
JONES APPAREL GROUP, INC.
CONSOLIDATED OPERATING RESULTS
(UNAUDITED)
As required by the Securities and Exchange Commission Regulation G, the
following table contains information regarding the non-GAAP adjustments
used by the Company in the presentation of its financial results:
All amounts in millions
except per share data THIRD QUARTER NINE MONTHS
2007 2006 2007 2006
Income from continuing
operations (as reported) $138.4 $58.4 $131.7 $109.4
(Benefit) provision for
income taxes (90.9) 34.6 (98.5) 96.2
Loss on sale of Polo Jeans
Company business (a) - - - 45.1
Reversal of losses on assets
held for sale (b) (30.4) - - -
Items affecting segment
income:
Trademark impairments (c) 11.5 - 80.5 -
Severance and other
expenses related to
strategic review of
operations, and certain
other items (d) 48.6 12.7 70.3 41.5
Adjusted income from
continuing operations
before taxes 77.2 105.7 184.0 292.2
Adjusted provision for
income taxes 25.5 39.3 63.7 108.1
Adjusted income from
continuing operations $51.7 $66.4 $120.3 $184.1
Earnings per share from
continuing operations -
diluted (as reported) $1.37 $0.52 $1.24 $0.96
(Benefit) provision for
income taxes (0.90) 0.31 (0.93) 0.85
Loss on sale of Polo Jeans
Company business (a) - - - 0.40
Reversal of losses on assets
held for sale (b) (0.30) - - -
Items affecting segment
income:
Trademark impairments (c) 0.11 - 0.76 -
Severance and other
expenses related to
strategic review of
operations, and certain
other items (d) 0.48 0.11 0.66 0.36
Adjusted income from
continuing operations
before taxes 0.76 0.94 1.73 2.57
Adjusted provision for
income taxes 0.25 0.35 0.60 0.95
Adjusted earnings per share
from continuing
operations - diluted $0.51 $0.59 $1.13 $1.62
Breakdown of items affecting
segment income by segment:
Wholesale better apparel $1.0 $9.3 $9.5 $16.9
Wholesale moderate apparel 28.0 1.1 37.9 1.8
Wholesale footwear and
accessories 0.5 0.1 1.4 14.9
Retail 0.8 0.9 2.4 4.7
Licensing, other &
eliminations 29.8 1.3 99.6 3.2
Total $60.1 $12.7 $150.8 $41.5
Adjusted segment margins
Wholesale better apparel 12.5% 16.0% 13.7% 15.2%
Wholesale moderate apparel 6.8% 7.5% 6.6% 9.7%
Wholesale footwear and
accessories 14.1% 13.3% 11.9% 12.4%
Retail (8.2%) 2.4% (6.7%) 4.1%
Total 8.5% 10.6% 7.3% 10.5%
(a) Represents the net loss recorded in relation to the settlement of the
litigation with Polo Ralph Lauren Corporation and sale of our Polo
Jeans Company operations to Polo Ralph Lauren Corporation in February
2006.
(b) Represents the loss recorded relating to the adjustment of certain
assets to their net realizable value in anticipation of the sale of
certain moderate sportswear brands.
(c) Represents the impairments recorded in accordance with SFAS No. 142,
resulting from the shutdown of certain of our moderate sportswear
brands.
(d) Represents certain items and charges incurred in relation to the
overall strategic review of operations, inclusive of the charges
related to the closure of our Stein Mart leased shoe departments as
announced in May 2006.
JONES APPAREL GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
All amounts in millions
October 6, September 30,
2007 2006
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $109.0 $29.9
Accounts receivable, net of allowances of
$39.8 and $37.4 for doubtful accounts,
discounts, returns and co-op advertising 505.9 524.1
Inventories 590.3 552.1
Assets held for sale 5.1 207.6
Deferred taxes 57.3 35.8
Other current assets 58.5 67.2
TOTAL CURRENT ASSETS 1,326.1 1,416.7
Property, plant and equipment, at
cost, less accumulated depreciation
and amortization 297.5 273.8
Goodwill 1,051.9 1,493.2
Other intangibles, less accumulated
amortization 626.1 759.4
Deferred taxes 6.3 -
Assets held for sale - 404.4
Other assets 53.8 50.8
$3,361.7 $4,398.3
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term borrowings $- $191.2
Current portion of capital lease obligations 4.5 4.0
Accounts payable 190.9 234.3
Liabilities related to assets held for sale - 90.1
Income taxes payable 55.5 61.0
Accrued expenses and other current liabilities 165.9 137.2
TOTAL CURRENT LIABILITIES 416.8 717.8
NONCURRENT LIABILITIES:
Long-term debt and obligation under
capital leases 779.0 786.2
Deferred taxes - 160.6
Liabilities related to assets held for sale - 93.2
Other 72.3 66.9
TOTAL NONCURRENT LIABILITIES 851.3 1,106.9
TOTAL LIABILITIES 1,268.1 1,824.7
STOCKHOLDERS' EQUITY 2,093.6 2,573.6
$3,361.7 $4,398.3
JONES APPAREL GROUP, INC.
STATEMENTS OF CASH FLOWS
(UNAUDITED)
All amounts in millions Nine Months Ended
October 6, September 30,
2007 2006
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $400.9 $125.5
Less: Income from discontinued
operations (269.2) (14.2)
Cumulative effect of change in
accounting principle - (1.9)
Income from continuing operations 131.7 109.4
Adjustments to reconcile net income to
net cash (used in) provided by operating
activities, net of acquisitions and
divestitures:
Loss on sale of Polo Jeans Company business - 45.1
Amortization expense in connection with
employee stock options and restricted stock 12.3 10.2
Depreciation and other amortization 55.9 54.1
Trademark impairments 80.5 -
Equity in earnings of unconsolidated
affiliates (3.1) (2.9)
Provision for losses on accounts receivable 2.3 (0.5)
Deferred taxes (18.4) 27.4
Other items, net 1.1 0.7
Changes in operating assets and liabilities:
Accounts receivable (148.5) (109.2)
Inventories (56.7) (11.6)
Prepaid expenses and other current assets 8.4 (4.4)
Other assets 0.9 2.4
Accounts payable (88.0) 11.7
Income taxes payable (106.9) 8.6
Accrued expenses and other current
liabilities 17.7 9.8
Other liabilities 0.1 2.4
Total adjustments (242.4) 43.8
Net cash (used in) provided by operating
activities of continuing operations (110.7) 153.2
Net cash provided by operating activities
of discontinued operations 38.9 8.0
Net cash (used in) provided by operating
activities (71.8) 161.2
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of Barneys, net
of cash sold and selling costs 858.7 -
Net proceeds from sale of Polo
Jeans Company business - 350.6
Capital expenditures (79.0) (70.4)
Other 2.8 0.1
Net cash provided by investing
activities of continuing operations 782.5 280.3
Net cash used in investing
activities of discontinued operations (40.5) (45.0)
Net cash provided by investing activities 742.0 235.3
CASH FLOWS FROM FINANCING ACTIVITIES:
Net (repayments) borrowings under
credit facilities (100.0) 61.7
Redemption at maturity of 7.875%
Senior Notes - (225.0)
Principal payments on capitalized leases (2.9) (3.2)
Purchases of treasury stock (496.9) (211.9)
Dividends paid (45.3) (40.7)
Net cash advances to discontinued operations (21.8) (34.4)
Proceeds from exercise of employee
stock options 11.1 19.3
Excess tax benefits from share-based
payment arrangements 1.6 2.3
Net cash used in financing activities
of continuing operations (654.2) (431.9)
Net cash provided by financing activities
of discontinued operations 18.0 34.4
Net cash used in financing activities (636.2) (397.5)
EFFECT OF EXCHANGE RATES ON CASH 3.5 0.4
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 37.5 (0.6)
CASH AND CASH EQUIVALENTS, BEGINNING,
including $7.2 and $6.9 reported
under assets held for sale 71.5 34.9
CASH AND CASH EQUIVALENTS, ENDING,
including $4.4 reported under assets
held for sale in 2006 $109.0 $34.3
SOURCE Jones Apparel Group, Inc.
CONTACT: Investors, John T. McClain,
Chief Financial Officer of Jones Apparel Group, Inc., +1-212-642-3860,
or Media, Joele Frank, or Sharon Stern,
both of Joele Frank, Wilkinson Brimmer Katcher, +1-212-355-4449,
both for Jones Apparel Group, Inc.
Web site: http://www.jny.com
(JNY)
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The Jones Group Inc.
