The Jones Group Inc. Reports 2012 Second Quarter Financial Results

NEW YORK, July 25, 2012 /PRNewswire/ -- The Jones Group Inc. (NYSE: JNY; the "Company") today reported results for the second quarter ended June 30, 2012.  Revenues for the second quarter of 2012 were $855 million, as compared with $887 million for the second quarter of 2011.     

The Company reported adjusted earnings per share of $0.22 for the second quarter of 2012, as compared with adjusted earnings per share of $0.33 for the same period last year.  The adjusted results exclude charges related to the impact of severance, asset impairments in retail locations to be closed and other costs related to restructuring activities, certain acquisition-related costs and other costs not considered relevant for period-over-period comparisons (see reconciliation of adjusted earnings to reported earnings in the accompanying schedule).  

As reported under generally accepted accounting principles ("GAAP"), the Company reported second quarter earnings per share of $0.10 in 2012 and $0.06 per share in 2011.  The 2012 and 2011 second quarter results include, among other items, costs and charges of approximately $15 million ($9 million after tax) and $37 million ($23 million after tax), respectively, related to lease liabilities of unused facilities, impairments and other costs relating to the planned closure of certain Company-operated retail stores, as well as other restructuring and cost savings initiatives.  Such amounts also include, for both periods, adjustments to the future payment liabilities associated with the Stuart Weitzman and Robert Rodriguez acquisitions.     

Wesley R. Card, The Jones Group Chief Executive Officer, stated: "We are pleased with the results we achieved in the second quarter, particularly our improved gross margin, which exceeded expectations.  Our gross margin improvement of 180 basis points was the result of the inclusion of Kurt Geiger for a full quarter, improvement in many segments as a result of conservative inventory planning and control." 

The Company ended the quarter with $277 million in cash and generated cash from operating activities during the six months of $124 million, compared with $66 million in the prior year period.  The current year results reflect a lower level of required investment in working capital, somewhat offset by lower earnings.  At June 30, 2012, the Company had no amounts drawn under its $650 million of committed revolving credit facilities.

John T. McClain, The Jones Group Chief Financial Officer, commented: "Our financial position remains strong.  We ended the quarter with $277 million in cash and our revolver undrawn.  Our approach to inventory commitments  continues to be conservative, and we continue to emphasize tight expense control.  We believe these actions and our plans will enable us to continue to maintain a strong balance sheet." 

Mr. Card concluded: "We believe we are well positioned for the second half of the year as we continue to execute on our strategic pillars.  We have received very positive reactions from wholesale customers to our enhanced products across our brands that will ship in Fall and are confident that this will translate into improved retail performance and ultimately increased sales."

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 10, 2012, for payment on August 24, 2012.

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.jonesgroupinc.com (under Investor Relations/Conference Schedule). The call will be recorded and made available through August 2, 2012 and may be accessed by dialing 877-344-7529.  Enter account number 10016558.  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 the GAAP measures presented to the comparable non-GAAP information appears in the financial tables section of this press release. 

About The Jones Group Inc.

The Jones Group Inc. (www.jonesgroupinc.com) is a leading global designer, marketer and wholesaler of over 35 brands with product expertise in apparel, footwear, jeanswear, jewelry and handbags.  The Jones Group has a reputation for innovation, excellence in product quality and value, operational execution and talent.  The Company also markets directly to consumers through branded specialty retail and outlet stores and through its e-commerce sites.

The Company's internationally recognized brands and licensing agreements (L) include: Nine West, Jones New York, Anne Klein, Kurt Geiger, Rachel Roy (L), Robert Rodriguez, Robbi & Nikki, Stuart Weitzman, Brian Atwood (L), Boutique 9, Easy Spirit, Carvela, Gloria Vanderbilt, l.e.i., Bandolino, Enzo Angiolini, Nine & Co., GLO, Joan & David, Miss KG, Jones Wear, Kasper, Energie, Evan-Picone, Le Suit, Mootsies Tootsies, Grane, Erika, Napier, Jessica Simpson (L), Sam & Libby, Givenchy (L), Judith Jack, Albert Nipon, Pappagallo, Rafe(L) and C&T Costello Tagliapietra (L).

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 the Company's ability to obtain capital 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;
  • the Company's ability to identify acquisition candidates and, in a competitive environment for such acquisitions, acquire such businesses on reasonable financial and other terms;
  • the integration of the organizations and operations of any acquired businesses into the Company's existing organization and operations;
  • consolidation of the Company's retail customers;
  • financial difficulties encountered by the Company's 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, including political instability in countries where contractors and suppliers are located;
  • changes in the costs of raw materials, labor, advertising and transportation, including the impact such changes may have on the pricing of the Company's products and the resulting impact on consumer acceptance of the Company's products at higher price points;
  • the Company's ability to successfully implement new operational and financial information 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, 2011, 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.

 

THE JONES GROUP INC.





CONSOLIDATED OPERATING RESULTS





(UNAUDITED)















All amounts in millions, except per share data

















SECOND QUARTER


FISCAL SIX MONTHS





2012


2011


2012


2011



















Net sales

$     844.3

98.8

%

$     876.7

98.8

%

$  1,767.7

98.7

%

$  1,825.7

98.8

%

Licensing income

10.2

1.2


10.4

1.2


22.5

1.3


22.5

1.2


Other revenues

0.3

0.0


0.3

0.0


0.5

0.0


0.5

0.0

















Total revenues

854.8

100.0


887.4

100.0


1,790.7

100.0


1,848.7

100.0

















Cost of goods sold

528.6

61.8


564.3

63.6


1,121.1

62.6


1,194.9

64.6

















Gross profit

326.2

38.2


323.1

36.4


669.6

37.4


653.8

35.4

















SG&A expenses

304.5

35.6


278.2

31.4


607.7

33.9


547.7

29.6

















Operating income

21.7

2.5


44.9

5.1


61.9

3.5


106.1

5.7

















Net interest expense and financing costs (1)

(8.8)

(1.0)


(37.0)

(4.2)


(51.5)

(2.9)


(58.2)

(3.1)


Equity in income of unconsolidated affiliate

0.4

0.0


0.7

0.1


1.3

0.1


2.0

0.1

















Income before provision for income taxes

13.3

1.6


8.6

1.0


11.7

0.7


49.9

2.7


Provision for income taxes

4.9

0.6


3.2

0.4


4.3

0.2


18.7

1.0

















Net income

8.4

1.0


5.4

0.6


7.4

0.4


31.2

1.7

















Less: income attributable to noncontrolling interest

0.3

0.0


0.2

0.0


0.5

0.0


0.4

0.0

















Income attributable to Jones

$          8.1

0.9

%

$          5.2

0.6

%

$          6.9

0.4

%

$       30.8

1.7

%
















Earnings per share (2)














Net income

$          8.4



$          5.4



$          7.4



$       31.2





Less: income attributable to noncontrolling interest

0.3



0.2



0.5



0.4





Income attributable to Jones

8.1



5.2



6.9



30.8





Less: income allocated to participating securities

0.2



0.2



-



0.8





Income available to common stockholders of Jones

$          7.9



$          5.0



$          6.9



$       30.0






















Shares outstanding - diluted

76.0



83.2



77.5



83.3


















Earnings per share  - diluted

$       0.10



$       0.06



$       0.09



$       0.36


















Percentages may not add due to rounding.


















(1)

Refer to item "i" on the Reconciliation of Non-GAAP Measures to GAAP for amounts impacting interest




expense relating to adjustment of remaining consideration payable related to acquisition of Stuart



Weitzman.


















(2)

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.

 

THE JONES GROUP INC.


Reconciliation of Non-GAAP Measures to GAAP


for the quarters and six months ended June 30, 2012 and July 2, 2011


(UNAUDITED)



































All amounts in millions, except per share data



SECOND QUARTER



FISCAL SIX MONTHS






2012


2011


2012


2011

Operating income



$   21.7



$        44.9



$   61.9



$      106.1

Adjustments:














Items affecting segment income:














Impairment and other expenses related to retail store closure plan (a)


1.1



0.8



1.6



0.3


Charges related to acquired businesses (b)



1.2



(5.7)



0.3



(5.8)


Other business development costs (c)



0.5



5.2



0.7



5.3


Present value adjustments to lease liabilities for properties not in use (d)


9.3



12.0



9.3



12.4


Charges related to closure of distribution facilities (e)



-



0.2



-



0.4


Severance and other charges related to executive management changes (f)


2.2



-



5.9



-


Other restructuring expenses and certain other charges (g)



4.4



(0.7)



13.3



1.1

Total adjustments to operating income



18.7



11.8



31.1



13.7

Adjusted operating income



$   40.4



$        56.7



$   93.0



$      119.8

















Income attributable to Jones (as reported)



$     8.1



$          5.2



$     6.9



$        30.8

Provision for income taxes



4.9



3.2



4.3



18.7

Adjustments to operating income, from above



18.7



11.8



31.1



13.7

Adjustments to deferred financing costs (h)



-



1.9



-



1.9

Adjustment of remaining consideration payable related to acquisition













of Stuart Weitzman (i)



(4.2)



22.9



23.5



31.8

Adjusted income before provision for income taxes



27.5



45.0



65.8



96.9

Adjusted provision for income taxes



10.2



16.9



24.5



36.5

Adjusted income attributable to Jones



17.3



28.1



41.3



60.4

Less: adjusted income allocated to participating securities



(0.5)



(0.9)



(0.9)



(1.8)

Adjusted income available to common stockholders of Jones



$   16.8



$        27.2



$   40.4



$        58.6

















Earnings per share - diluted (as reported)



$   0.10



$        0.06



$   0.09



$        0.36

Provision for income taxes



0.06



0.04



0.05



0.22

Items affecting segment income:














Impairment and other expenses related to retail store closure plan (a)


0.01



0.01



0.02



-


Charges related to acquired businesses (b)



0.01



(0.06)



-



(0.06)


Other business development costs (c)



0.01



0.06



0.01



0.06


Present value adjustments to lease liabilities for properties not in use (d)


0.12



0.14



0.12



0.14


Charges related to closure of distribution facilities (e)



-



-



-



-


Severance and other charges related to executive management changes (f)


0.03



-



0.08



-


Other restructuring expenses and certain other charges (g)



0.06



(0.01)



0.17



0.01

Adjustments to deferred financing costs (h)



-



0.02



-



0.02

Adjustment of remaining consideration payable related to acquisition













of Stuart Weitzman (i)



(0.05)



0.27



0.30



0.37

Adjusted income before provision for income taxes



0.35



0.53



0.84



1.12

Adjusted provision for income taxes



0.13



0.20



0.31



0.42

Adjusted earnings per share - diluted



$   0.22



$        0.33



$   0.53



$        0.70

















Non-GAAP adjustments affecting revenue by segment (j):














Domestic wholesale sportswear



$          -



$              -



$          -



$              -


Domestic wholesale jeanswear (g)



-



0.3



-



0.3


Domestic wholesale footwear and accessories



-



-



-



-


Domestic retail 



-



-



-



-


International wholesale



-



-



-



-


International retail



-



-



-



-


Licensing, other & eliminations



-



-



-



-


Total




$          -



$          0.3



$          -



$          0.3

















Non-GAAP adjustments affecting income by segment (j):














Domestic wholesale sportswear (b,f,g)



0.3



$         (6.9)



4.2



$         (7.1)


Domestic wholesale jeanswear (d,e,f,g)



0.9



0.5



2.0



1.4


Domestic wholesale footwear and accessories (b,d,e,f,g)



10.7



12.6



12.8



14.0


Domestic retail (a,f,g)



3.3



(0.8)



4.6



(1.1)


International wholesale (b,f)



-



0.5



0.2



0.5


International retail (b,f)



1.5



0.5



3.1



0.5


Licensing, other & eliminations (b,c,f)



2.0



5.4



4.2



5.5


Total




$   18.7



$        11.8



$   31.1



$        13.7

















































(a)

2012 and 2011 include severance, fixed asset impairment and other charges and credits related to the closure of underperforming retail locations.

(b)

2012 and 2011 include the adjustments of the contingent consideration payable for the Robert Rodriguez acquisition.  Also included are the amortization of certain acquired intangible assets related to the acquisitions of Stuart Weitzman (2011 only) and Kurt Geiger. 

(c)

2012 and 2011 include investment consulting fees, legal fees, accounting fees and other items related to acquisitions and other business development activities.

(d)

2012 and 2011 includes present value accruals and adjustments for liabilities related to leases on properties currently not in use.

(e)

2011 represents charges related to the closures of the Texas and Rhode Island warehouses.

(f)

2012 includes severance and restricted stock charges related to executive management changes.

(g)

2012 and 2011 include severance, occupancy, and other costs related to the restructuring of corporate and business support functions and other charges not considered by management to be

part of ongoing operations. 

(h)

2011 includes the write-off of certain deferred financing fees related to amendment and extension of our credit facility.

(i)

Represents the fair value adjustment in accordance with GAAP of the remaining consideration payable related to the acquisition of Stuart Weitzman.

(j)

See "Segment Information" page for the presentation of GAAP and Adjusted amounts.

 

THE JONES GROUP INC.

SEGMENT INFORMATION

(UNAUDITED)











Dollars in millions



Domestic








Domestic

Domestic

Wholesale




Licensing,




Wholesale

Wholesale

Footwear &

Domestic

International

International

Other &




Sportswear

Jeanswear

Accessories

Retail

Wholesale

Retail

Eliminations

Consolidated











For the fiscal quarter ended June 30, 2012










Revenues

$          174.8

$          151.0

$          195.5

$          150.6

$            75.4

$            97.3

$            10.2

$          854.8












Segment income (loss)

$              8.9

$              7.0

$             (1.6)

$             (3.0)

$              9.7

$              3.7

$             (3.0)

21.7


Segment margin

5.1%

4.6%

(0.8%)

(2.0%)

12.9%

3.8%


2.5%












Net interest expense (a)








(8.8)


Equity in income of unconsolidated affiliate








0.4












Income before provision for income taxes








$            13.3






















Segment revenues

$          174.8

$          151.0

$          195.5

$          150.6

$            75.4

$            97.3

$            10.2

$          854.8


Adjustments affecting segment revenues (b)

-

-

-

-

-

-

-

-


Adjusted segment revenues

$          174.8

$          151.0

$          195.5

$          150.6

$            75.4

$            97.3

$            10.2

$          854.8












Segment income (loss)

$              8.9

$              7.0

$             (1.6)

$             (3.0)

$              9.7

$              3.7

$             (3.0)

$            21.7


Adjustments affecting segment income (b)

0.3

0.9

10.7

3.3

-

1.5

2.0

18.7


Adjusted segment income

$              9.2

$              7.9

$              9.1

$              0.3

$              9.7

$              5.2

$             (1.0)

$            40.4


Adjusted segment margin

5.3%

5.2%

4.7%

0.2%

12.9%

5.3%


4.7%





















For the fiscal quarter ended July 2, 2011










Revenues

$          203.0

$          189.1

$          188.4

$          166.5

$            76.6

$            53.4

$            10.4

$          887.4












Segment income (loss)

$            22.3

$            11.9

$             (2.4)

$              4.9

$              9.5

$              3.5

$             (4.8)

44.9


Segment margin

11.0%

6.3%

(1.3%)

2.9%

12.4%

6.6%


5.1%












Net interest expense (a)








(37.0)


Equity in income of unconsolidated affiliate








0.7












Income before provision for income taxes








$              8.6






















Segment revenues

$          203.0

$          189.1

$          188.4

$          166.5

$            76.6

$            53.4

$            10.4

$          887.4


Adjustments affecting segment revenues (b)

-

0.3

-

-

-

-

-

0.3


Adjusted segment revenues

$          203.0

$          189.4

$          188.4

$          166.5

$            76.6

$            53.4

$            10.4

$          887.7












Segment income (loss)

$            22.3

$            11.9

$             (2.4)

$              4.9

$              9.5

$              3.5

$             (4.8)

$            44.9


Adjustments affecting segment income (b)

(6.9)

0.5

12.6

(0.8)

0.5

0.5

5.4

11.8


Adjusted segment income

$            15.4

$            12.4

$            10.2

$              4.1

$            10.0

$              4.0

$              0.6

$            56.7


Adjusted segment margin

7.6%

6.5%

5.4%

2.5%

13.1%

7.5%


6.4%





















(a) 

Refer to item "i" on the Reconciliation of Non-GAAP Measures to GAAP for amounts impacting interest expense relating to adjustment of remaining



consideration payable related to acquisition of Stuart Weitzman.


(b) 

See "Reconciliation of Non-GAAP Measures to GAAP" page.








 

THE JONES GROUP INC.

SEGMENT INFORMATION

(UNAUDITED)











Dollars in millions



Domestic








Domestic

Domestic

Wholesale




Licensing,




Wholesale

Wholesale

Footwear &

Domestic

International

International

Other &




Sportswear

Jeanswear

Accessories

Retail

Wholesale

Retail

Eliminations

Consolidated











For the fiscal six months ended June 30, 2012










Revenues

$          408.4

$          335.8

$          421.3

$          278.7

$          148.8

$          175.2

$            22.5

$       1,790.7












Segment income (loss)

$            32.2

$            23.6

$            16.7

$           (25.4)

$            19.6

$             (1.3)

$             (3.5)

61.9


Segment margin

7.9%

7.0%

4.0%

(9.1%)

13.2%

(0.7%)


3.5%












Net interest expense (a)








(51.5)


Equity in income of unconsolidated affiliate








1.3












Income before provision for income taxes








$            11.7






















Segment revenues

$          408.4

$          335.8

$          421.3

$          278.7

$          148.8

$          175.2

$            22.5

$       1,790.7


Adjustments affecting segment revenues (b)

-

-

-

-

-

-

-

-


Adjusted segment revenues

$          408.4

$          335.8

$          421.3

$          278.7

$          148.8

$          175.2

$            22.5

$       1,790.7












Segment income (loss)

$            32.2

$            23.6

$            16.7

$           (25.4)

$            19.6

$             (1.3)

$             (3.5)

$            61.9


Adjustments affecting segment income (b)

4.2

2.0

12.8

4.6

0.2

3.1

4.2

31.1


Adjusted segment income (loss)

$            36.4

$            25.6

$            29.5

$           (20.8)

$            19.8

$              1.8

$              0.7

$            93.0


Adjusted segment margin

8.9%

7.6%

7.0%

(7.5%)

13.3%

1.0%


5.2%





















For the fiscal six months ended July 2, 2011










Revenues

$          471.7

$          424.6

$          409.0

$          301.7

$          155.7

$            63.6

$            22.4

$       1,848.7












Segment income (loss)

$            53.1

$            39.9

$            15.6

$           (18.0)

$            18.8

$              1.9

$             (5.2)

106.1


Segment margin

11.3%

9.4%

3.8%

(6.0%)

12.1%

3.0%


5.7%












Net interest expense (a)








(58.2)


Equity in income of unconsolidated affiliate








2.0












Income before provision for income taxes








$            49.9






















Segment revenues

$          471.7

$          424.6

$          409.0

$          301.7

$          155.7

$            63.6

$            22.4

$       1,848.7


Adjustments affecting segment revenues (b)

-

0.3

-

-

-

-

-

0.3


Adjusted segment revenues

$          471.7

$          424.9

$          409.0

$          301.7

$          155.7

$            63.6

$            22.4

$       1,849.0












Segment income (loss)

$            53.1

$            39.9

$            15.6

$           (18.0)

$            18.8

$              1.9

$             (5.2)

$          106.1


Adjustments affecting segment income (b)

(7.1)

1.4

14.0

(1.1)

0.5

0.5

5.5

13.7


Adjusted segment income (loss)

$            46.0

$            41.3

$            29.6

$           (19.1)

$            19.3

$              2.4

$              0.3

$          119.8


Adjusted segment margin

9.8%

9.7%

7.2%

(6.3%)

12.4%

3.8%


6.5%





















(a) 

Refer to item "i" on the Reconciliation of Non-GAAP Measures to GAAP for amounts impacting interest expense relating to adjustment of remaining



consideration payable related to acquisition of Stuart Weitzman.


(b) 

See "Reconciliation of Non-GAAP Measures to GAAP" page.








 

THE JONES GROUP INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)










All amounts in millions
































June 30, 2012


July 2, 2011

ASSETS


















Current assets:








  Cash and cash equivalents




$                      277.1


$                     146.4

  Accounts receivable





327.2


378.3

  Inventories





467.5


523.2

  Prepaid income taxes





1.4


11.5

  Deferred taxes





27.7


26.2

  Other current assets





59.1


44.3

  Total current assets





1,160.0


1,129.9

Property, plant and equipment, at cost, less






    accumulated depreciation and amortization



271.4


270.2

Goodwill






256.3


258.9

Other intangibles, less accumulated amortization



891.8


947.3

Other assets





129.4


152.7










Total assets





$                  2,708.9


$                  2,759.0










LIABILITIES AND EQUITY
















Current liabilities:








  Current portion of long-term debt and capital lease obligations

$                          2.1


$                          1.9

  Current portion of acquisition consideration payable


216.7


23.0

  Accounts payable





232.7


230.2

  Accrued expenses and other current liabilities



139.7


142.9

  Total current liabilities





591.2


398.0

Long-term debt and obligations under capital leases


856.5


849.7

Income taxes payable





0.5


8.7

Deferred taxes





69.6


74.9

Acquisition consideration payable




4.8


206.7

Other






112.4


79.1

Total liabilities





1,635.0


1,617.1

Equity






1,073.9


1,141.9










Total liabilities and equity




$                  2,708.9


$                  2,759.0

 

THE JONES GROUP INC.

CONDENSED STATEMENTS OF CASH FLOWS

(UNAUDITED)












All amounts in millions


Fiscal Six Months Ended









June 30, 2012


July 2, 2011












CASH FLOWS FROM OPERATING ACTIVITIES:





Net income



$                       7.4


$                     31.2













Adjustments to reconcile net income to net cash provided by






operating activities, net of acquisitions:







Amortization of employee stock options and restricted stock 

13.3


11.1




Depreciation and other amortization

44.5


38.5




Impairments of property, plant and equipment

0.4


2.9




Adjustments to acquisition consideration payable

19.4


25.3




Equity in income of unconsolidated affiliate

(1.3)


(2.0)




Deferred taxes



(7.4)


13.5




Other items, net


3.8


7.0




Changes in operating assets and liabilities:








Accounts receivable


22.2


(12.4)





Inventories



24.1


(2.8)





Accounts payable


(3.8)


(13.3)





Income taxes payable/prepaid taxes

6.7


9.9





Acquisition consideration payable

(0.8)


(4.8)





Other assets and liabilities, net


(4.5)


(38.5)





Total adjustments


116.6


34.4


Net cash provided by operating activities

124.0


65.6












CASH FLOWS FROM INVESTING ACTIVITIES:





Capital expenditures


(38.2)


(49.5)


Contingent consideration paid related to investment in GRI Group Limited

(3.5)


-


Acquisition of KG Group Holdings Limited, net of cash acquired

-


(143.1)


Other





(0.1)


-


Net cash used in investing activities


(41.8)


(192.6)












CASH FLOWS FROM FINANCING ACTIVITIES:





Issuance of 6.875% Senior Notes due 2019

-


300.0


Debt issuance costs


-


(6.8)


Costs related to secured revolving credit agreement

(0.3)


(2.9)


Repayment of acquired debt of KG Group Holdings Limited

-


(174.1)


Repurchase of common shares


(29.0)


(28.0)


Dividends paid



(7.9)


(8.5)


Payments of acquisition consideration payable

(7.5)


(6.2)


Other





1.0


0.3


Net cash (used in) provided by financing activities

(43.7)


73.8












EFFECT OF EXCHANGE RATES ON CASH

(0.2)


(1.2)












NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

38.3


(54.4)












CASH AND CASH EQUIVALENTS, BEGINNING

238.8


200.8












CASH AND CASH EQUIVALENTS, ENDING

$                   277.1


$                   146.4

 

 

SOURCE The Jones Group Inc.



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