Tropical Reports Record Quarterly Net Income

- Second quarter net income increases 10%, excluding special items

- Second quarter diluted earnings per share increase 9%,

excluding special items



Apr 16, 2001, 01:00 ET from Tropical Sportswear Int'l. Corporation

    TAMPA, Fla., April 16 /PRNewswire/ -- This is the highest quarterly
 earnings in Tropical's history and the sixth consecutive comparative quarterly
 increase in net income, excluding special items, Chairman and Chief Executive
 Officer, William W. Compton, reported today.
 
     For the second quarter ended March 31, 2001, diluted earnings per share
     increased by 9% to $0.74 compared with $0.68 for the same period last
     year, excluding the effects of special items of $0.10 per diluted share
     this quarter.  During the second quarter ended March 31, 2001, the Company
     recorded an after-tax charge of approximately $548,000 in connection with
     the closure of its sewing plant in Chihuahua, Mexico, and incurred after-
     tax costs of approximately $262,000 related to the pursuit of certain
     assets of Bugle Boy Industries, Inc.  Including these special items,
     diluted earnings per share were $0.64.
 
     Net sales for the second quarter ended March 31, 2001 were $123.5 million
     compared with $124.2 million in the same period last year.  On a constant
     currency basis, net sales for the second quarter ended March 31, 2001 were
     $124.6 million.
 
     For the second quarter ended March 31, 2001, the Company's gross margin
     decreased to 29.0% compared with 29.9% for the same period last year.
     Excluding special items, operating income as a percentage of net sales
     increased to 11.3% compared with 11.0% for the same period last year.
     Including special items in the current year, second quarter operating
     income as a percentage of net sales was 10.2%.
 
     For the first six months of fiscal 2001, diluted earnings per share
     increased by 9% to $1.16 compared with $1.06 for the same period last
     year, excluding the effects of special items of $0.17 per diluted share
     this year and $0.07 per diluted share in the prior year.  During the first
     six months of fiscal 2001, the Company recorded charges related to the
     acquisition of the Victorinox(R) license, the closure of its sewing plant
     in Chihuahua, Mexico, and incurred costs related to pursuing certain
     assets of Bugle Boy Industries, Inc. Including special items in both
     years, diluted earnings per share was $0.99 in the first six months of
     fiscal 2000 and 2001.
 
     Net sales for the first six months of fiscal 2001 were $222.1 million
     compared with $225.9 million in the same period last year.  On a constant
     currency basis, net sales for the first six months of fiscal 2001 were
     $224.6 million.
 
     For the first six months of fiscal 2001, the Company's gross margin
     decreased to 29.1% compared with 29.5% for the same period last year.
     Excluding special items, operating income as a percentage of net sales for
     the first six months of fiscal 2001 increased to 10.5% compared with 10.3%
     for the same period last year.  Including special items in both years,
     operating income as a percentage of net sales for the first six months of
     fiscal 2001 decreased to 9.5% compared with 9.9% for the same period last
     year.
 
     Mr. Compton commented, "We are pleased with our performance in light of
 the difficult conditions at retail.  Although we are planning for these
 conditions to persist through the end of this fiscal year, we expect to
 maintain fiscal 2000 sales levels while posting a 3% to 5% growth in earnings.
 However, we are confident that our operating blueprint positions us well to
 enhance our results when retail conditions improve."
     To receive Tropical Sportswear's latest news release and other corporate
 documents via FAX at no charge, dial 1-800-PRO-INFO and enter the Company's
 symbol, TSIC.  The Company's most current releases may be viewed on the
 Worldwide Web at www.frbinc.com .
     On April 17, 2001 at 9:00 am (EDT), the Company will host a conference
 call to discuss the second quarter results.  The dial in number is
 1-703-871-3085.  For those who cannot listen to the live broadcast, a replay
 will be available for two weeks after the call.  To listen to the replay, call
 1-703-925-2435 and enter pass code 5148769.
     The call will also be broadcast live over the Internet 'via
 www.vcall.com .  For those who are unavailable to listen to the live
 broadcast, a replay will be available shortly after the call on the above web
 site for two weeks.
     TSI markets and manufactures branded and private brand men's and women's
 casual and dress sportswear through all major retail distribution channels.
 Major owned brands include Savane(R), Farah(R), Bay to Bay(R), Flyers(TM), The
 Original Khaki Co.(R), Two Pepper(R), and Authentic Chino Casuals(R).
 Licensed brands include Bill Blass(R), John Henry(R), Van Heusen(R) and
 Victorinox(R).  TSI distinguishes itself by providing major retailers with
 comprehensive brand management programs and uses advanced technology to
 provide retailers with customer, product and market analyses, apparel design,
 and merchandising consulting and inventory forecasting with a focus on return
 on investment.
     This press release contains forward-looking statements, which are subject
 to the safe harbor created by the Private Securities Litigation Reform Act of
 1995.  Management cautions that these statements represent projections and
 estimates of future performance and involve certain risks and uncertainties.
 The Company's actual results could differ materially from those anticipated in
 these forward-looking statements as a result of factors including, without
 limitation, continued improvements in operating efficiencies such that the
 Company's operating margins continue to improve; the inability to achieve
 projected revenue and earnings growth in fiscal 2001; the continued acceptance
 of the Company's existing and new products by its major customers; the
 financial strength of the Company's major customers; delays associated with
 the timing of introduction, shipment and acceptance of the Victorinox(R)
 apparel line, the ability of the Company to continue to use certain licensed
 trademarks and tradenames, including Victorinox(R),  John Henry(R), Bill
 Blass(R), and Van Heusen(R); the inability to achieve cost savings related to
 the closure of the Company's sewing plant in Chihuahua, Mexico; general
 economic conditions, including recession or other cyclical effects impacting
 our customers in the US or abroad; potential changes in demand in the retail
 market, price and availability of raw materials and global manufacturing costs
 and restrictions; increases in costs; and other risk factors listed from time
 to time in the Company's reports filed with the U.S. Securities and Exchange
 Commission.  In addition, the estimated financial results for any period do
 not necessarily indicate the results that may be expected for any future
 period, and the Company assumes no obligation to update them.
 
 
                     Tropical Sportswear Int'l Corporation
                  Condensed Consolidated Statements of Income
             (amounts in thousands except share and per share data)
 
                            Three Months Ended          Six Months Ended
                          March 31,      April 1,    March 31,      April 1,
                               2001          2000         2001          2000
 
     Net sales             $123,523      $124,201     $222,075      $225,876
     Cost of goods sold      87,713        87,068      157,457       159,141
     Gross profit            35,810        37,133       64,618        66,735
     Selling, general
      and administrative
      expenses               21,820        23,437       41,336        43,457
     Other                    1,330            --        2,178         1,006
     Operating income        12,660        13,696       21,104        22,272
 
     Other expenses:
     Interest, net            4,079         4,306        7,904         8,588
     Other, net                 474           562          582           933
                              4,553         4,868        8,486         9,521
 
     Income before
      income taxes            8,107         8,828       12,618        12,751
     Provision for
      income taxes            3,168         3,601        4,969         5,176
     Net income              $4,939        $5,227       $7,649        $7,575
 
     Basic earnings
      per share               $0.65         $0.69        $1.00         $0.99
 
     Weighted average number
      of shares used in
      the calculation
      - Basic             7,639,000     7,624,000    7,638,000     7,623,000
 
     Diluted earnings
      per share               $0.64         $0.68        $0.99         $0.99
 
     Weighted average
      number of shares
     used in the calculation
      - Diluted           7,727,000     7,642,000    7,713,000     7,686,000
 
 
                     Tropical Sportswear Int'l Corporation
                     Condensed Consolidated Balance Sheets
                             (amounts in thousands)
 
                                                     March 31,       Sept. 30,
                                                         2001           2000
     ASSETS
 
     Current assets:
       Cash                                            $2,543         $1,767
       Accounts receivable                             96,258         93,292
       Inventories                                     71,111         66,754
       Deferred income taxes                           10,614         10,614
       Prepaid expenses and other current assets        6,489          6,537
         Total current assets                         187,015        178,964
 
     Property & equipment, net                         47,800         46,888
     Intangible assets, including
      trademarks and goodwill                          51,126         52,286
     Other assets                                      16,476         16,390
         Total assets                                $302,417       $294,528
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
 
     Current liabilities
       Accounts payable and accrued expenses          $54,679        $65,346
       Current portion of long-term debt
        and capital leases                              2,268          1,991
         Total current liabilities                     56,947         67,337
 
     Long-term debt and capital leases                155,505        143,550
     Deferred income taxes                              4,952          4,925
     Other non-current liabilities                      3,006          2,882
         Total liabilities                            220,410        218,694
 
     Shareholders' equity:
       Preferred stock                                      -              -
       Common stock                                        76             76
       Additional Paid in Capital                      17,852         17,830
       Accumulated other comprehensive loss            (2,854)        (1,356)
       Retained earnings                               66,933         59,284
         Total shareholders' equity                    82,007         75,834
 
         Total liabilities and
          shareholders' equity                       $302,417       $294,528
 
     Certain prior year amounts have been reclassified to conform to the
 current year presentation.
 
 

SOURCE Tropical Sportswear Int'l. Corporation
    TAMPA, Fla., April 16 /PRNewswire/ -- This is the highest quarterly
 earnings in Tropical's history and the sixth consecutive comparative quarterly
 increase in net income, excluding special items, Chairman and Chief Executive
 Officer, William W. Compton, reported today.
 
     For the second quarter ended March 31, 2001, diluted earnings per share
     increased by 9% to $0.74 compared with $0.68 for the same period last
     year, excluding the effects of special items of $0.10 per diluted share
     this quarter.  During the second quarter ended March 31, 2001, the Company
     recorded an after-tax charge of approximately $548,000 in connection with
     the closure of its sewing plant in Chihuahua, Mexico, and incurred after-
     tax costs of approximately $262,000 related to the pursuit of certain
     assets of Bugle Boy Industries, Inc.  Including these special items,
     diluted earnings per share were $0.64.
 
     Net sales for the second quarter ended March 31, 2001 were $123.5 million
     compared with $124.2 million in the same period last year.  On a constant
     currency basis, net sales for the second quarter ended March 31, 2001 were
     $124.6 million.
 
     For the second quarter ended March 31, 2001, the Company's gross margin
     decreased to 29.0% compared with 29.9% for the same period last year.
     Excluding special items, operating income as a percentage of net sales
     increased to 11.3% compared with 11.0% for the same period last year.
     Including special items in the current year, second quarter operating
     income as a percentage of net sales was 10.2%.
 
     For the first six months of fiscal 2001, diluted earnings per share
     increased by 9% to $1.16 compared with $1.06 for the same period last
     year, excluding the effects of special items of $0.17 per diluted share
     this year and $0.07 per diluted share in the prior year.  During the first
     six months of fiscal 2001, the Company recorded charges related to the
     acquisition of the Victorinox(R) license, the closure of its sewing plant
     in Chihuahua, Mexico, and incurred costs related to pursuing certain
     assets of Bugle Boy Industries, Inc. Including special items in both
     years, diluted earnings per share was $0.99 in the first six months of
     fiscal 2000 and 2001.
 
     Net sales for the first six months of fiscal 2001 were $222.1 million
     compared with $225.9 million in the same period last year.  On a constant
     currency basis, net sales for the first six months of fiscal 2001 were
     $224.6 million.
 
     For the first six months of fiscal 2001, the Company's gross margin
     decreased to 29.1% compared with 29.5% for the same period last year.
     Excluding special items, operating income as a percentage of net sales for
     the first six months of fiscal 2001 increased to 10.5% compared with 10.3%
     for the same period last year.  Including special items in both years,
     operating income as a percentage of net sales for the first six months of
     fiscal 2001 decreased to 9.5% compared with 9.9% for the same period last
     year.
 
     Mr. Compton commented, "We are pleased with our performance in light of
 the difficult conditions at retail.  Although we are planning for these
 conditions to persist through the end of this fiscal year, we expect to
 maintain fiscal 2000 sales levels while posting a 3% to 5% growth in earnings.
 However, we are confident that our operating blueprint positions us well to
 enhance our results when retail conditions improve."
     To receive Tropical Sportswear's latest news release and other corporate
 documents via FAX at no charge, dial 1-800-PRO-INFO and enter the Company's
 symbol, TSIC.  The Company's most current releases may be viewed on the
 Worldwide Web at www.frbinc.com .
     On April 17, 2001 at 9:00 am (EDT), the Company will host a conference
 call to discuss the second quarter results.  The dial in number is
 1-703-871-3085.  For those who cannot listen to the live broadcast, a replay
 will be available for two weeks after the call.  To listen to the replay, call
 1-703-925-2435 and enter pass code 5148769.
     The call will also be broadcast live over the Internet 'via
 www.vcall.com .  For those who are unavailable to listen to the live
 broadcast, a replay will be available shortly after the call on the above web
 site for two weeks.
     TSI markets and manufactures branded and private brand men's and women's
 casual and dress sportswear through all major retail distribution channels.
 Major owned brands include Savane(R), Farah(R), Bay to Bay(R), Flyers(TM), The
 Original Khaki Co.(R), Two Pepper(R), and Authentic Chino Casuals(R).
 Licensed brands include Bill Blass(R), John Henry(R), Van Heusen(R) and
 Victorinox(R).  TSI distinguishes itself by providing major retailers with
 comprehensive brand management programs and uses advanced technology to
 provide retailers with customer, product and market analyses, apparel design,
 and merchandising consulting and inventory forecasting with a focus on return
 on investment.
     This press release contains forward-looking statements, which are subject
 to the safe harbor created by the Private Securities Litigation Reform Act of
 1995.  Management cautions that these statements represent projections and
 estimates of future performance and involve certain risks and uncertainties.
 The Company's actual results could differ materially from those anticipated in
 these forward-looking statements as a result of factors including, without
 limitation, continued improvements in operating efficiencies such that the
 Company's operating margins continue to improve; the inability to achieve
 projected revenue and earnings growth in fiscal 2001; the continued acceptance
 of the Company's existing and new products by its major customers; the
 financial strength of the Company's major customers; delays associated with
 the timing of introduction, shipment and acceptance of the Victorinox(R)
 apparel line, the ability of the Company to continue to use certain licensed
 trademarks and tradenames, including Victorinox(R),  John Henry(R), Bill
 Blass(R), and Van Heusen(R); the inability to achieve cost savings related to
 the closure of the Company's sewing plant in Chihuahua, Mexico; general
 economic conditions, including recession or other cyclical effects impacting
 our customers in the US or abroad; potential changes in demand in the retail
 market, price and availability of raw materials and global manufacturing costs
 and restrictions; increases in costs; and other risk factors listed from time
 to time in the Company's reports filed with the U.S. Securities and Exchange
 Commission.  In addition, the estimated financial results for any period do
 not necessarily indicate the results that may be expected for any future
 period, and the Company assumes no obligation to update them.
 
 
                     Tropical Sportswear Int'l Corporation
                  Condensed Consolidated Statements of Income
             (amounts in thousands except share and per share data)
 
                            Three Months Ended          Six Months Ended
                          March 31,      April 1,    March 31,      April 1,
                               2001          2000         2001          2000
 
     Net sales             $123,523      $124,201     $222,075      $225,876
     Cost of goods sold      87,713        87,068      157,457       159,141
     Gross profit            35,810        37,133       64,618        66,735
     Selling, general
      and administrative
      expenses               21,820        23,437       41,336        43,457
     Other                    1,330            --        2,178         1,006
     Operating income        12,660        13,696       21,104        22,272
 
     Other expenses:
     Interest, net            4,079         4,306        7,904         8,588
     Other, net                 474           562          582           933
                              4,553         4,868        8,486         9,521
 
     Income before
      income taxes            8,107         8,828       12,618        12,751
     Provision for
      income taxes            3,168         3,601        4,969         5,176
     Net income              $4,939        $5,227       $7,649        $7,575
 
     Basic earnings
      per share               $0.65         $0.69        $1.00         $0.99
 
     Weighted average number
      of shares used in
      the calculation
      - Basic             7,639,000     7,624,000    7,638,000     7,623,000
 
     Diluted earnings
      per share               $0.64         $0.68        $0.99         $0.99
 
     Weighted average
      number of shares
     used in the calculation
      - Diluted           7,727,000     7,642,000    7,713,000     7,686,000
 
 
                     Tropical Sportswear Int'l Corporation
                     Condensed Consolidated Balance Sheets
                             (amounts in thousands)
 
                                                     March 31,       Sept. 30,
                                                         2001           2000
     ASSETS
 
     Current assets:
       Cash                                            $2,543         $1,767
       Accounts receivable                             96,258         93,292
       Inventories                                     71,111         66,754
       Deferred income taxes                           10,614         10,614
       Prepaid expenses and other current assets        6,489          6,537
         Total current assets                         187,015        178,964
 
     Property & equipment, net                         47,800         46,888
     Intangible assets, including
      trademarks and goodwill                          51,126         52,286
     Other assets                                      16,476         16,390
         Total assets                                $302,417       $294,528
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
 
     Current liabilities
       Accounts payable and accrued expenses          $54,679        $65,346
       Current portion of long-term debt
        and capital leases                              2,268          1,991
         Total current liabilities                     56,947         67,337
 
     Long-term debt and capital leases                155,505        143,550
     Deferred income taxes                              4,952          4,925
     Other non-current liabilities                      3,006          2,882
         Total liabilities                            220,410        218,694
 
     Shareholders' equity:
       Preferred stock                                      -              -
       Common stock                                        76             76
       Additional Paid in Capital                      17,852         17,830
       Accumulated other comprehensive loss            (2,854)        (1,356)
       Retained earnings                               66,933         59,284
         Total shareholders' equity                    82,007         75,834
 
         Total liabilities and
          shareholders' equity                       $302,417       $294,528
 
     Certain prior year amounts have been reclassified to conform to the
 current year presentation.
 
 SOURCE  Tropical Sportswear Int'l. Corporation