The Jones Group Inc. (ticker: JNY, exchange: New York Stock Exchange (.N))
News Release -
29-Jul-2009
Jones Apparel Group, Inc. Reports 2009 Second Quarter Results NEW YORK, July 29 /PRNewswire-FirstCall/ -- Jones Apparel Group, Inc.
(NYSE: JNY) today reported results for the second quarter ended July 4, 2009.
Reported revenues for the second quarter of 2009 were $804 million, as
compared with $829 million for the second quarter of 2008. The decrease in
revenues of 3.1% was reflective of overall economic conditions that continue
to affect retail sales in general. While the wholesale jeanswear division
reported increased revenues of 28.5% compared with the same period in the
prior year, revenues declined as expected in the other divisions.
The Company reported adjusted earnings per share ("EPS") of $0.29 for the
second quarter of 2009, as compared with adjusted earnings per share of $0.20
in the same period last year. These results exclude charges related to the
consent solicitation of noteholders, the cash tender offer for outstanding
4.250% Senior Notes due November 2009 and the termination of the revolving
credit facility, and certain other charges (see reconciliation of adjusted
earnings to reported earnings in the accompanying schedule).
As reported under generally accepted accounting principles ("GAAP"), the
Company reported earnings per share of $0.15 per share for the second quarter
of 2009, as compared with earnings per share of $0.12 for the same period last
year. The 2009 second quarter results include, among other items, charges of
approximately $10 million ($6 million after tax) related to the consent
solicitation and tender offer and the termination of the revolving credit
facility, and net charges of $8 million ($5 million after tax) related to
other cost savings initiatives.
Wesley R. Card, Jones Apparel Group President and Chief Executive Officer,
stated: "We are pleased with our results for the second quarter and the
effectiveness of our efforts to manage inventories, costs and expenses, which
have proven to be critical in navigating through this unique economic
situation. Our revenues were slightly higher than our previous guidance and
our gross margin improved from last year, even as we provided additional
markdown assistance to our customers. Operating margins increased in each of
our wholesale businesses and we were profitable in our retail business, both
of which were very gratifying in the face of this highly promotional
environment."
Cash provided by continuing operating activities during the six months was
$74 million, compared with cash provided by continuing operations of $98
million in the same period last year. The year-over-year change in cash
provided is primarily due to changes in working capital flows and lower
operating earnings.
John T. McClain, Jones Apparel Group Chief Financial Officer, commented:
"Our balance sheet, liquidity and cash flow remain strong. We ended the
quarter with $113 million of cash and our revolver remains undrawn, after
completing the tender offer for approximately $240 million of debt. Our total
debt balance is $559 million, $221 million less than a year ago, and our debt
to total capitalization ratio, net of cash, is 27.2%. Inventories and expenses
are well controlled and at what we believe to be the appropriate level for the
current environment. We will, however, continue to keep a close focus on
these areas, as well as on our supply chain management, throughout the
remainder of 2009."
Retail Improvement Strategy Update
The Company continues to execute on its previously-announced retail
improvement plan to right-size the retail portfolio, with the goal of
enhancing segment profitability and improving return on invested capital. The
Company has been working constructively with its landlords and now plans to
exit approximately 240 locations throughout 2009 and 2010, and will also
continue to test and evaluate new concepts, such as ShoeWoo. As of July 29,
2009, the Company remains on track with its plan and has exited 48 locations.
The Company now anticipates expense savings and the elimination of
unprofitable store locations to improve results by $4 million in 2009, $15
million in 2010 and $21 million in 2011. These actions will also reduce
future capital expenditures relating to such locations.
The following notable events have recently occurred:
-- signed an agreement with Kurt Geiger Ltd. to license and distribute
the Nine West and Easy Spirit brands in the United Kingdom and Ireland
beginning with the Spring 2010 product lines;
-- increased the Company's ownership interest in international licensing
partner GRI Group Limited to 25%;
-- entered into a new $650 million senior secured three-year revolving
credit facility; and
-- completed the purchase of approximately 97% of the $250 million
principal amount outstanding of 4.250% Senior Notes due November 2009.
Mr. Card concluded: "We are benefiting from the initiatives that we began
last year to streamline our organization, optimize our distribution network
and update our technology infrastructure. Furthermore, we continue to position
the Company for the ultimate economic recovery and are taking the steps to
strengthen and begin to increase sales of our core brands by offering
well-designed products of good quality and at price-points that fit today's
economy. We continue, however, to remain cautious in our outlook for the
remainder of 2009."
The Company's Board of Directors has declared a regular quarterly cash
dividend of $0.05 per share to all common stockholders of record as of August
14, 2009 for payment on August 28, 2009.
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.jonesapparel.com (under Investor
Relations/Conference Schedule). The call will be recorded and made available
through August 4, 2009 and may be accessed by dialing 877-344-7529. Enter
account number 431915. A slide presentation will accompany the prepared
remarks and has been posted with the webcast on the Company's website.
Presentation of Information in the Press release
Financial information discussed in this press release includes both GAAP
and non-GAAP measures, which include or exclude certain items. These non-GAAP
measures differ from reported results and are intended to illustrate what
management believes are relevant period-over-period comparisons. A complete
reconciliation of reported GAAP results to the comparable non-GAAP information
appears in the financial tables section of this press release.
About Jones Apparel Group, Inc.
Jones Apparel Group, Inc. (www.jonesapparel.com) 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 and through its e-commerce web sites. 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,
footwear under the Dockers Women brand licensed from Levi Strauss & Co., and
apparel under the Rachel Roy brand licensed from Rachel Roy IP Company, LLC.
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, Anne Klein New York, Nine West, Gloria Vanderbilt, l.e.i. and
Evan-Picone, 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,"
"expects," "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:
-- those associated with the effect of national, regional and
international economic conditions;
-- lowered levels of consumer spending resulting from a general economic
downturn or lower levels of consumer confidence;
-- the tightening of the credit markets and our ability to obtain credit
on satisfactory terms;
-- given the uncertain economic environment, the possible unwillingness
of committed lenders to meet their obligations to lend to borrowers,
in general;
-- 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 an environment in which
general quota has expired on apparel products but litigation and
political activity seeking to re-impose quotas have been initiated;
-- 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 Annual Report on Form
10-K for the year ended December 31, 2008, 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.
CONSOLIDATED OPERATING RESULTS
(UNAUDITED)
All amounts in millions, except per share data
SECOND QUARTER SIX MONTHS
-------------- ----------
2009 2008 2009 2008
---- ---- ---- ----
Net
sales $793.4 98.7% $820.2 98.9% $1,672.9 98.7% $1,783.6 98.8%
Licensing
income 10.3 1.3 9.0 1.1 21.8 1.3 20.5 1.1
Other
revenues 0.2 0.0 0.2 0.0 0.3 0.0 0.7 0.0
--- --- --- --- --- --- --- ---
Total
revenues 803.9 100.0 829.4 100.0 1,695.0 100.0 1,804.8 100.0
Cost of
Goods
sold 521.8 64.9 547.0 66.0 1,119.6 66.1 1,201.7 66.6
----- ---- ----- ---- ------- ---- ------- ----
Gross
profit 282.1 35.1 282.4 34.0 575.4 33.9 603.1 33.4
SG&A
expenses 240.0 29.9 256.9 31.0 519.6 30.7 537.6 29.8
----- ---- ----- ---- ----- ---- ----- ----
Income from
operations 42.1 5.2 25.5 3.1 55.8 3.3 65.5 3.6
Net interest
expense and
financing
costs (19.8) (2.5) (9.8) (1.2) (32.7) (1.9) (19.6) (1.1)
Loss and
costs
associated with
repurchase of
4.250%
Senior
Notes (2.0) (0.2) - - (2.0) (0.1) - -
Gain on sale
of interest in
Australian
joint
venture - - 0.5 0.1 - - 0.8 0.0
Equity in loss of
unconsolidated
affiliate (0.2) (0.0) - - (0.5) (0.0) - -
---- ---- --- --- ---- ---- --- ---
Income before
provision
for taxes 20.1 2.5 16.2 2.0 20.6 1.2 46.7 2.6
Provision
For income
taxes 7.0 0.9 5.6 0.7 7.2 0.4 16.5 0.9
--- --- --- --- --- --- ---- ---
Net
income $13.1 1.6% $10.6 1.3% $13.4 0.8% $30.2 1.7%
===== === ===== === ===== === ===== ===
Earnings per share (1)
Net
income $13.1 $10.6 $13.4 $30.2
Less: income
allocated to
participating
securities (0.5) (0.1) (0.5) (0.5)
---- ---- ---- ----
Income
available to
common
stock-
holders $12.6 $10.5 $12.9 $29.7
===== ===== ===== =====
Common
shares
outstanding -
diluted 81.8 83.8 81.7 84.3
Earnings per
share -
diluted $0.15 $0.12 $0.16 $0.35
Percentages may not add due to rounding.
(1) Earnings per share is calculated under the "two-class method," where
income is allocated between common shares and participating
securities (unvested restricted shares held by employees that have a
nonforfeitable right to dividends). Both our common shares and
participating securities share equally in dividend payments and
earnings.
JONES APPAREL GROUP, INC.
SELECTED 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 SECOND QUARTER SIX MONTHS
-------------- ----------
2009 2008 2009 2008
---- ---- ---- ----
Net income (as reported) $13.1 $10.6 $13.4 $30.2
Provision for income taxes 7.0 5.6 7.2 16.5
Gain on sale of Mexican
operations - (0.2) - (0.2)
Loss and costs associated
with repurchase of
4.250% Senior Notes (a) 2.0 - 2.0 -
Write-off of line of credit
fees (b) 7.9 - 7.9 -
Items affecting segment income:
Impairment and other expenses related to
retail store closure
plan ( c ) - - 22.6 -
Severance and other expenses
related to restructuring
activities and certain
other charges (d, e, f) 7.9 9.7 20.8 28.3
--- --- ---- ----
Adjusted income before
provision for taxes 37.9 25.7 73.9 74.8
Adjusted provision for
income taxes 13.6 8.8 25.8 26.4
---- --- ---- ----
Adjusted net income 24.3 16.9 48.1 48.4
Less: adjusted income
allocated to participating
securities (1.0) (0.4) (1.9) (0.9)
---- ---- ---- ----
Adjusted income available to
common stockholders $23.3 $16.5 $46.2 $47.5
===== ===== ===== =====
Earnings per share - diluted
(as reported) $0.15 $0.12 $0.16 $0.35
Provision for income taxes 0.08 0.07 0.08 0.19
Gain on sale of Mexican
operations - - - -
Loss and costs associated
with repurchase of
4.250% Senior Notes (a) 0.02 - 0.02 -
Write-off of line of credit
fees (b) 0.10 - 0.10 -
Items affecting segment income:
Impairment and other expenses
related to
retail store closure plan ( c ) - - 0.27 -
Severance and other expenses
related to restructuring
activities and certain
other charges (d, e, f) 0.10 0.11 0.24 0.33
---- ---- ---- ----
Adjusted income before taxes 0.45 0.30 0.87 0.87
Adjusted provision for
income taxes 0.16 0.10 0.30 0.31
---- ---- ---- ----
Adjusted earnings per share -
diluted $0.29 $0.20 $0.57 $0.56
===== ===== ===== =====
Non-GAAP adjustments affecting
revenue by segment:
Wholesale better apparel $- $- $- $-
Wholesale jeanswear (d) 0.5 2.3 2.1 9.2
Wholesale footwear and
accessories - - - -
Retail ( c ) 0.1 - 0.1 -
Licensing, other &
eliminations (d) - 0.5 - 0.5
--- --- --- ---
Total $0.6 $2.8 $2.2 $9.7
==== ==== ==== ====
Non-GAAP adjustments affecting
income by segment:
Wholesale better apparel
(f) $0.2 $0.6 $2.9 $(0.2)
Wholesale jeanswear (d, f) 1.1 6.4 6.5 22.8
Wholesale footwear and
accessories (e, f) 6.0 1.7 10.1 3.6
Retail (c, f) 0.5 0.3 23.9 0.6
Licensing, other &
eliminations (d, f) 0.1 0.7 - 1.5
--- --- -- ---
Total $7.9 $9.7 $43.4 $28.3
==== ==== ===== =====
Adjusted segment margins
Wholesale better apparel 8.6% 8.1% 12.8% 12.6%
Wholesale jeanswear 10.7 4.0 10.3 6.9
Wholesale footwear and
accessories 4.8 4.4 6.8 6.9
Retail 1.5 3.0 (9.9) (5.3)
--- --- ---- ----
Total 6.2% 4.2% 5.8% 5.2%
=== === === ===
(a) 2009 includes the loss and costs associated with the repurchase of
4.250% Senior Notes.
(b) 2009 includes the write-off of deferred financing fees related to
our prior revolving credit facility.
( c ) 2009 includes fixed asset impairment and other charges related to
the closure of underperforming retail locations announced in April
2009.
(d) 2009 and 2008 include costs related to the exit from or restructuring
of certain moderate sportswear lines. 2008 also includes costs
related to the repositioning of l.e.i. as an exclusive product for
Walmart.
(e) 2009 and 2008 include severance related to the restructuring of our
costume jewelry business and certain charges associated with the
bankruptcy of our former U.K. licensee.
(f) 2009 and 2008 include severance and other expenses related to
restructuring activities and certain other charges.
JONES APPAREL GROUP, INC.
SEGMENT INFORMATION
(UNAUDITED)
All amounts in millions
Wholesale Wholesale
Better Wholesale Footwear &
Apparel Jeanswear Accessories
------- --------- -----------
For the fiscal quarter ended
July 4, 2009
Revenues from external
customers $202.7 $221.2 $185.9
Intersegment revenues 29.4 0.6 9.8
---- --- ---
Total revenues 232.1 221.8 195.7
----- ----- -----
Segment income $19.8 $22.7 $3.3
===== ===== ====
Segment margin 8.5% 10.2% 1.7%
Segment revenues $232.1 $221.8 $195.7
Adjustments affecting segment
revenues - 0.5 -
--- --- ---
Adjusted segment revenues $232.1 $222.3 $195.7
====== ====== ======
Segment income $19.8 $22.7 $3.3
Adjustments affecting segment
income 0.2 1.1 6.0
--- --- ---
Adjusted segment income $20.0 $23.8 $9.3
===== ===== ====
Adjusted segment margin 8.6% 10.7% 4.8%
For the fiscal quarter ended
July 5, 2008
Revenues from external
customers $235.0 $172.2 $215.6
Intersegment revenues 30.3 0.8 15.4
---- --- ----
Total revenues 265.3 173.0 231.0
----- ----- -----
Segment income $20.9 $0.6 $8.5
===== ==== ====
Segment margin 7.9% 0.3% 3.7%
Segment revenues $265.3 $173.0 $231.0
Adjustments affecting segment
revenues - 2.3 -
--- --- ---
Adjusted segment revenues $265.3 $175.3 $231.0
====== ====== ======
Segment income $20.9 $0.6 $8.5
Adjustments affecting segment
income 0.6 6.4 1.7
--- --- ---
Adjusted segment income $21.5 $7.0 $10.2
===== ==== =====
Adjusted segment margin 8.1% 4.0% 4.4%
Licensing,
Other &
Retail Eliminations Consolidated
------ ------------ ------------
For the fiscal quarter ended
July 4, 2009
Revenues from external
customers $183.8 $10.3 $803.9
Intersegment revenues - (39.8) -
----- ----- -----
Total revenues 183.8 (29.5) 803.9
----- ----- -----
Segment income $2.3 $(6.0) 42.1
==== =====
Segment margin 1.3% 5.2%
Net interest expense (19.8)
Loss and costs associated with
repurchase of 4.250% Senior Notes (2.0)
Equity in loss of
unconsolidated affiliate (0.2)
----
Income before provision for
income taxes $20.1
=====
Segment revenues $183.8 $(29.5) $803.9
Adjustments affecting segment
revenues 0.1 - 0.6
--- --- ---
Adjusted segment revenues $183.9 $(29.5) $804.5
====== ====== ======
Segment income $2.3 $(6.0) $42.1
Adjustments affecting segment
income 0.5 0.1 7.9
--- --- ---
Adjusted segment income $2.8 $(5.9) $50.0
==== ===== =====
Adjusted segment margin 1.5% 6.2%
For the fiscal quarter ended
July 5, 2008
Revenues from external
customers $197.5 $9.1 $829.4
Intersegment revenues - (46.5) -
--- ----- ---
Total revenues 197.5 (37.4) 829.4
----- ----- -----
Segment income $5.5 $(10.2) 25.3
==== ======
Segment margin 2.8% 3.1%
Net interest expense (9.8)
Gain on sale of Mexican
operations and interest in
Australian joint venture 0.7
---
Income before provision for
income taxes $16.2
=====
Segment revenues $197.5 $(37.4) $829.4
Adjustments affecting segment
revenues - 0.5 2.8
--- --- ---
Adjusted segment revenues $197.5 $(36.9) $832.2
====== ====== ======
Segment income $5.5 $(10.2) $25.3
Adjustments affecting segment
income 0.3 0.7 9.7
--- --- ---
Adjusted segment income $5.8 $(9.5) $35.0
==== ===== =====
Adjusted segment margin 3.0% 4.2%
JONES APPAREL GROUP, INC.
SEGMENT INFORMATION
(UNAUDITED)
All amounts in millions
Wholesale Wholesale
Better Wholesale Footwear &
Apparel Jeanswear Accessories
------- --------- -----------
For the fiscal six months ended
July 4, 2009
Revenues from external customers $494.4 $449.5 $404.3
Intersegment revenues 68.6 1.5 28.4
---- --- ----
Total revenues 563.0 451.0 432.7
----- ----- -----
Segment income (loss) $69.3 $40.0 $19.3
===== ===== =====
Segment margin 12.3% 8.9% 4.5%
Segment revenues $563.0 $451.0 $432.7
Adjustments affecting segment
revenues - 2.1 -
---- --- ----
Adjusted segment revenues $563.0 $453.1 $432.7
====== ====== ======
Segment income (loss) $69.3 $40.0 $19.3
Adjustments affecting
segment income 2.9 6.5 10.1
--- --- ----
Adjusted segment income (loss) $72.2 $46.5 $29.4
===== ===== =====
Adjusted segment margin 12.8% 10.3% 6.8%
For the fiscal six months ended
July 5, 2008
Revenues from external customers $566.4 $392.8 $468.2
Intersegment revenues 70.2 1.9 35.7
---- --- ----
Total revenues 636.6 394.7 503.9
----- ----- -----
Segment income (loss) $80.2 $5.0 $31.1
===== ==== =====
Segment margin 12.6% 1.3% 6.2%
Segment revenues $636.6 $394.7 $503.9
Adjustments affecting segment
revenues - 9.2 -
--- --- ---
Adjusted segment revenues $636.6 $403.9 $503.9
====== ====== ======
Segment income (loss) $80.2 $5.0 $31.1
Adjustments affecting
segment income (0.2) 22.8 3.6
---- ---- ---
Adjusted segment income (loss) $80.0 $27.8 $34.7
===== ===== =====
Adjusted segment margin 12.6% 6.9% 6.9%
Licensing,
Other &
Retail Eliminations Consolidated
------ ------------ ------------
For the fiscal six months ended
July 4, 2009
Revenues from external customers $325.0 $21.8 $1,695.0
Intersegment revenues - (98.5) -
---- ----- -------
Total revenues 325.0 (76.7) 1,695.0
----- ----- -------
Segment income (loss) $(56.1) $(16.7) 55.8
====== ======
Segment margin (17.3%) 3.3%
Net interest expense (32.7)
Loss and costs associated with
repurchase of 4.250% Senior Notes (2.0)
Equity in loss of unconsolidated
affiliate (0.5)
----
Income before provision for income
taxes $20.6
=====
Segment revenues $325.0 $(76.7) $1,695.0
Adjustments affecting segment
revenues 0.1 - 2.2
--- --- ---
Adjusted segment revenues $325.1 $(76.7) $1,697.2
====== ====== ========
Segment income (loss) $(56.1) $(16.7) $55.8
Adjustments affecting
segment income 23.9 - 43.4
---- --- ----
Adjusted segment income (loss) $(32.2) $(16.7) $99.2
====== ====== =====
Adjusted segment margin (9.9%) 5.8%
For the fiscal six months ended
July 5, 2008
Revenues from external customers $356.3 $21.1 $1,804.8
Intersegment revenues - (107.8) -
----- ------ ------
Total revenues 356.3 (86.7) 1,804.8
----- ----- -------
Segment income (loss) $(19.4) $(31.6) 65.3
====== ======
Segment margin (5.4%) 3.6%
Net interest expense (19.6)
Gain on sale of Mexican operations
and interest in Australian joint
venture 1.0
---
Income before provision for income
taxes $46.7
=====
Segment revenues $356.3 $(86.7) $1,804.8
Adjustments affecting segment
revenues - 0.5 9.7
----- --- ---
Adjusted segment revenues $356.3 $(86.2) $1,814.5
====== ====== ========
Segment income (loss) $(19.4) $(31.6) $65.3
Adjustments affecting
segment income 0.6 1.5 28.3
--- --- ----
Adjusted segment income (loss) $(18.8) $(30.1) $93.6
====== ====== =====
Adjusted segment margin (5.3%) 5.2%
JONES APPAREL GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
All amounts in millions
July 4, 2009 July 5, 2008
------------ ------------
ASSETS
CURRENT ASSETS:
Cash and cash
equivalents $112.5 $322.2
Accounts receivable 366.6 382.6
Inventories 428.4 466.7
Prepaid income taxes 9.1 25.2
Deferred taxes 22.9 23.8
Other current
assets 32.2 50.6
---- ----
TOTAL CURRENT ASSETS 971.7 1,271.1
Property, plant and equipment, at cost,
less accumulated depreciation and
amortization 258.1 305.4
Goodwill 160.7 974.6
Other intangibles, less accumulated
amortization 589.7 616.9
Deferred taxes 13.1 -
Other assets 114.6 58.0
----- ----
$2,107.9 $3,226.0
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term borrowings $20.9 $-
Current portion of long-term
debt and capital
lease obligations 10.2 4.2
Accounts payable 158.7 215.3
Income taxes payable - 13.8
Accrued expenses and other
current liabilities 109.0 124.7
----- -----
TOTAL CURRENT LIABILITIES 298.8 358.0
----- -----
NONCURRENT LIABILITIES:
Long-term debt and obligation
under capital leases 527.6 775.9
Income taxes payable 11.4 -
Deferred taxes - 14.8
Other 75.6 67.4
---- ----
TOTAL NONCURRENT LIABILITIES 614.6 858.1
----- -----
TOTAL LIABILITIES 913.4 1,216.1
----- -------
STOCKHOLDERS' EQUITY 1,194.5 2,009.9
------- -------
$2,107.9 $3,226.0
======== ========
JONES APPAREL GROUP, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
All amounts in millions Fiscal Six Months Ended
-----------------------
July 4, 2009 July 5, 2008
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $13.4 $30.2
----- -----
Adjustments to reconcile net income
to net cash provided by operating
activities:
Loss and costs associated with
repurchase of 4.250% Senior Notes 2.0 -
Amortization expense in connection
with employee stock options
and restricted stock 6.6 9.1
Depreciation and other amortization 37.6 41.4
Impairment losses on property,
plant and equipment 21.2 -
Provision for losses on accounts
receivable 1.8 4.7
Deferred taxes 7.8 26.7
Write-off of deferred financing fees 7.9 -
Other items, net 1.0 (0.7)
Changes in operating assets and liabilities:
Accounts receivable (7.9) (50.5)
Inventories 82.0 57.1
Accounts payable (72.9) (8.6)
Other assets and
liabilities, net (26.8) (11.2)
----- -----
Total adjustments 60.3 68.0
---- ----
Net cash provided by
operating activities 73.7 98.2
---- ----
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (13.9) (38.4)
Investment in GRI Group Limited (15.2) (20.0)
Other - 7.0
---- ---
Net cash used in
investing activities (29.1) (51.4)
----- -----
CASH FLOWS FROM FINANCING ACTIVITIES:
Repurchase of 4.250%
Senior Notes, including
consent fees and related costs
(252.4) -
Costs related to secured
revolving credit
agreement (30.0) -
Net increase in short- term
borrowings 20.9 -
Dividends paid (8.5) (24.1)
Other (1.6) (1.6)
---- ----
Net cash used in
financing activities (271.6) (25.7)
------ -----
EFFECT OF EXCHANGE RATES ON CASH 1.2 (1.7)
--- ----
NET (DECREASE) INCREASE IN
CASH AND CASH EQUIVALENTS (225.8) 19.4
CASH AND CASH EQUIVALENTS,
BEGINNING 338.3 302.8
----- -----
CASH AND CASH EQUIVALENTS,
ENDING $112.5 $322.2
====== ======
SOURCE Jones Apparel Group, Inc.
CONTACT:
Investor: John T. McClain, Chief Financial Officer of Jones
Apparel Group, +1-212-642-3860;
or Media: Joele Frank or Sharon Stern,
both of
Joele Frank, Wilkinson Brimmer Katcher, +1-212-355-4449
Web Site: http://www.jonesapparel.com
(JNY)
|
The Jones Group Inc.
