Haggar Meets Second Quarter 2001 Earnings Per Share Expectations

Apr 24, 2001, 01:00 ET from Haggar Corp.

    DALLAS, April 24 /PRNewswire Interactive News Release/ --
 Haggar Corp. (Nasdaq: HGGR) announced second quarter and six months results
 for the period ending March 31, 2001.
     For the second quarter of fiscal 2001, before a one time reorganization
 charge, Haggar reported net sales of $115,791,000 and net income of
 $2,016,000, or $0.31 on a per share basis.  This compares to the second
 quarter of 2000, in which the Company reported $117,068,000 in net sales and
 net income of $2,182,000, or $0.31 on a per share basis.
     For the six months ended March 31, 2001, before the reorganization charge,
 Haggar reported net income of $1,870,000 on net sales of $215,647,000,
 compared to net income of $2,739,000 on net sales of $215,750,000 during the
 same period in 2000.  Earnings for the first six months of fiscal 2001 before
 the charge were $0.29 on a per share basis, compared to earnings per share of
 $0.39 in 2000.
     David Tehle, Executive Vice President and Chief Financial Officer, noted,
 "As previously announced, the $20,800,000, or $14,300,000 after tax, charge
 was booked in the quarter ending March 31, 2001, primarily for the
 reorganization of our manufacturing operations.  The charge for this
 reorganization relates to severance benefits for the associates, facilities
 and equipment writedowns, and related legal charges.  As a result of the
 reorganization charge, Haggar is reporting for the quarter just ended an after
 tax loss of $12,284,000, or a loss of $1.89 per share, and for the six months
 just ended a loss of $12,430,000, or a loss of $1.91 per share.  The future
 impact of the reorganization on the Company will be a yearly pre-tax cost
 savings of $3 to $5 million depending on the mix of our products and sourcing
 efforts going forward.  The impact of these savings is not planned to take
 effect until fiscal 2002, with the majority of the savings being re-invested
 in the Haggar brand.  Additionally, this now eliminates all domestic sewing
 operations for our company."
     J. M. Haggar, III, the Company's Chairman and Chief Executive Officer,
 stated, "The environment at retail is very tough right now as evidenced by our
 top line sales being flat to last year for the first six months of fiscal
 2001.  Our EPS performance for the current quarter met our street
 expectations.  Our solid operational management and cost control, as
 demonstrated by our SG&A percentage falling two points from last year, have
 benefited our bottom line."
     Frank Bracken, President and COO, added, "We continue to grow and
 diversify our business.  For example, we signed a license agreement last
 quarter with Claiborne to manufacture and market Claiborne(R) branded casual
 and dress pants to the marketplace.  The launch will take place in the fourth
 quarter of fiscal 2001."
     The statements contained in this release that are not historical facts are
 forward-looking statements.  These forward-looking statements involve risks
 and uncertainties that could cause actual results to differ materially from
 those in such 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.
     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,
 United Kingdom, Canada, Mexico, South Africa, and Indonesia.  Haggar also
 holds exclusive licenses in the United States to use the Claiborne(R)
 trademark and in the United States and Canada to use the DKNY(R) trademark to
 manufacture, market, and sell men's shorts and pants in men's classification
 pant departments.  For more information visit the Haggar website at
 www.haggarcorp.com.
 
 
                                  HAGGAR CORP.
 
                                  Three Months Ended       Six Months Ended
      Condensed Consolidated           March 31,               March 31,
      Statements of Income         2001         2000       2001        2000
                                    (In thousands, except per share amounts)
 
     Net Sales                   $115,791    $117,068    $215,647   $215,750
     Reorganization Charge         20,800         ---      20,800        ---
     Cost of sales                 80,245      79,242     147,197    143,623
     Gross profit                  14,746      37,826      47,650     72,127
     Selling, general and
      administrative expenses     (31,298)    (33,929)    (63,699)   (66,883)
     Royalty income                   591         865       1,041        909
     Operating income (loss)      (15,961)      4,762     (15,008)     6,153
     Other income                      23          13           1        357
     Interest expense              (1,428)     (1,132)     (2,397)    (1,931)
     Net income (loss) before
      provision (benefit) for
      income taxes                (17,366)      3,643     (17,404)     4,579
     Provision for income taxes     1,418       1,461       1,526      1,840
     Benefit for income taxes -
      Reorganization charge        (6,500)        ---      (6,500)       ---
     Net income (loss)           ($12,284)     $2,182    ($12,430)    $2,739
 
     Net income (loss) per
      share - Basic                ($1.89)      $0.33      ($1.91)     $0.40
     Net income (loss) per
      share - Diluted              ($1.89)      $0.31      ($1.91)     $0.39
 
     Weighted average shares
      outstanding - Basic           6,505       6,707       6,516      6,895
     Weighted average shares
      outstanding - Diluted         6,505       6,953       6,516      7,076
 
 
      Condensed Consolidated                         March 31,  September 30,
      Balance Sheet                                    2001           2000
                                                          (In thousands)
     Assets
     Cash and cash equivalents                         $5,529         $6,238
     Accounts receivable, net                          66,837         66,362
     Due from factor                                    4,058          1,951
     Inventories                                      101,184         92,581
     Income Tax Receivable                              7,021            ---
     Deferred tax benefit                              10,066         10,624
     Other current assets                               2,005          1,737
     Total current assets                             196,700        179,493
     Property, plant and equipment, net                55,493         59,563
     Goodwill                                          25,814         26,505
     Other assets                                       6,922          6,795
       Total Assets                                  $284,929       $272,356
     Liabilities and Stockholders' Equity
     Accounts payable                                 $24,390        $25,176
     Accrued liabilities                               33,307         22,525
     Other current liabilities                          5,834         10,492
     Current portion of long-term debt                  3,928          4,046
     Total current liabilities                         67,459         62,239
     Long term debt                                    67,652         46,333
     Stockholders' equity                             149,818        163,784
       Total Liabilities and Stockholders' Equity    $284,929       $272,356
 
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SOURCE Haggar Corp.
    DALLAS, April 24 /PRNewswire Interactive News Release/ --
 Haggar Corp. (Nasdaq: HGGR) announced second quarter and six months results
 for the period ending March 31, 2001.
     For the second quarter of fiscal 2001, before a one time reorganization
 charge, Haggar reported net sales of $115,791,000 and net income of
 $2,016,000, or $0.31 on a per share basis.  This compares to the second
 quarter of 2000, in which the Company reported $117,068,000 in net sales and
 net income of $2,182,000, or $0.31 on a per share basis.
     For the six months ended March 31, 2001, before the reorganization charge,
 Haggar reported net income of $1,870,000 on net sales of $215,647,000,
 compared to net income of $2,739,000 on net sales of $215,750,000 during the
 same period in 2000.  Earnings for the first six months of fiscal 2001 before
 the charge were $0.29 on a per share basis, compared to earnings per share of
 $0.39 in 2000.
     David Tehle, Executive Vice President and Chief Financial Officer, noted,
 "As previously announced, the $20,800,000, or $14,300,000 after tax, charge
 was booked in the quarter ending March 31, 2001, primarily for the
 reorganization of our manufacturing operations.  The charge for this
 reorganization relates to severance benefits for the associates, facilities
 and equipment writedowns, and related legal charges.  As a result of the
 reorganization charge, Haggar is reporting for the quarter just ended an after
 tax loss of $12,284,000, or a loss of $1.89 per share, and for the six months
 just ended a loss of $12,430,000, or a loss of $1.91 per share.  The future
 impact of the reorganization on the Company will be a yearly pre-tax cost
 savings of $3 to $5 million depending on the mix of our products and sourcing
 efforts going forward.  The impact of these savings is not planned to take
 effect until fiscal 2002, with the majority of the savings being re-invested
 in the Haggar brand.  Additionally, this now eliminates all domestic sewing
 operations for our company."
     J. M. Haggar, III, the Company's Chairman and Chief Executive Officer,
 stated, "The environment at retail is very tough right now as evidenced by our
 top line sales being flat to last year for the first six months of fiscal
 2001.  Our EPS performance for the current quarter met our street
 expectations.  Our solid operational management and cost control, as
 demonstrated by our SG&A percentage falling two points from last year, have
 benefited our bottom line."
     Frank Bracken, President and COO, added, "We continue to grow and
 diversify our business.  For example, we signed a license agreement last
 quarter with Claiborne to manufacture and market Claiborne(R) branded casual
 and dress pants to the marketplace.  The launch will take place in the fourth
 quarter of fiscal 2001."
     The statements contained in this release that are not historical facts are
 forward-looking statements.  These forward-looking statements involve risks
 and uncertainties that could cause actual results to differ materially from
 those in such 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.
     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,
 United Kingdom, Canada, Mexico, South Africa, and Indonesia.  Haggar also
 holds exclusive licenses in the United States to use the Claiborne(R)
 trademark and in the United States and Canada to use the DKNY(R) trademark to
 manufacture, market, and sell men's shorts and pants in men's classification
 pant departments.  For more information visit the Haggar website at
 www.haggarcorp.com.
 
 
                                  HAGGAR CORP.
 
                                  Three Months Ended       Six Months Ended
      Condensed Consolidated           March 31,               March 31,
      Statements of Income         2001         2000       2001        2000
                                    (In thousands, except per share amounts)
 
     Net Sales                   $115,791    $117,068    $215,647   $215,750
     Reorganization Charge         20,800         ---      20,800        ---
     Cost of sales                 80,245      79,242     147,197    143,623
     Gross profit                  14,746      37,826      47,650     72,127
     Selling, general and
      administrative expenses     (31,298)    (33,929)    (63,699)   (66,883)
     Royalty income                   591         865       1,041        909
     Operating income (loss)      (15,961)      4,762     (15,008)     6,153
     Other income                      23          13           1        357
     Interest expense              (1,428)     (1,132)     (2,397)    (1,931)
     Net income (loss) before
      provision (benefit) for
      income taxes                (17,366)      3,643     (17,404)     4,579
     Provision for income taxes     1,418       1,461       1,526      1,840
     Benefit for income taxes -
      Reorganization charge        (6,500)        ---      (6,500)       ---
     Net income (loss)           ($12,284)     $2,182    ($12,430)    $2,739
 
     Net income (loss) per
      share - Basic                ($1.89)      $0.33      ($1.91)     $0.40
     Net income (loss) per
      share - Diluted              ($1.89)      $0.31      ($1.91)     $0.39
 
     Weighted average shares
      outstanding - Basic           6,505       6,707       6,516      6,895
     Weighted average shares
      outstanding - Diluted         6,505       6,953       6,516      7,076
 
 
      Condensed Consolidated                         March 31,  September 30,
      Balance Sheet                                    2001           2000
                                                          (In thousands)
     Assets
     Cash and cash equivalents                         $5,529         $6,238
     Accounts receivable, net                          66,837         66,362
     Due from factor                                    4,058          1,951
     Inventories                                      101,184         92,581
     Income Tax Receivable                              7,021            ---
     Deferred tax benefit                              10,066         10,624
     Other current assets                               2,005          1,737
     Total current assets                             196,700        179,493
     Property, plant and equipment, net                55,493         59,563
     Goodwill                                          25,814         26,505
     Other assets                                       6,922          6,795
       Total Assets                                  $284,929       $272,356
     Liabilities and Stockholders' Equity
     Accounts payable                                 $24,390        $25,176
     Accrued liabilities                               33,307         22,525
     Other current liabilities                          5,834         10,492
     Current portion of long-term debt                  3,928          4,046
     Total current liabilities                         67,459         62,239
     Long term debt                                    67,652         46,333
     Stockholders' equity                             149,818        163,784
       Total Liabilities and Stockholders' Equity    $284,929       $272,356
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X38204617
 
 SOURCE  Haggar Corp.