UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported): October 21, 2008
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Carter’s,
Inc.
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(Exact
name of Registrant as specified in its
charter)
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Delaware
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001-31829
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13-3912933
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(State
or other jurisdiction
of
incorporation)
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(Commission
File Number)
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(I.R.S.
Employer
Identification
No.)
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||
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The
Proscenium,
1170
Peachtree Street NE, Suite 900
Atlanta,
Georgia 30309
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||||
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(Address
of principal executive offices, including zip code)
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||||
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(404)
745-2700
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||||
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(Registrant’s
telephone number, including area code)
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||||
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(Former
name or former address, if changed since last
report.)
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||||
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the Registrant under any of the following
provisions:
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o
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Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
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o
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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o
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
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o
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
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Item
2.02. Results
of Operations and Financial Condition.
On
October 21, 2008, Carter’s, Inc. issued a press release announcing its financial
results for its third quarter ended September 27, 2008. A copy of
that press release is attached as Exhibit 99.1 to this Current Report on Form
8-K.
The information in this Current Report
on Form 8-K is being furnished and shall not be deemed “filed” for the purposes
of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise
subject to the liabilities of that Section. The information in this
Current Report on Form 8-K shall not be incorporated by reference into any
registration statement or other document filed pursuant to the Securities Act of
1933, as amended.
Item
9.01. Financial
Statements and Exhibits.
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Exhibits
– The following exhibit is furnished as part of this Current Report on
Form 8-K.
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|||
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Exhibit
Number
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Description
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99.1
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Press
Release of Carter’s, Inc., dated October 21,
2008
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||
Signature
Pursuant
to the requirements of the Securities Exchange Act of 1934, Carter’s, Inc. has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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October
21, 2008
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CARTER’S,
INC.
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By:
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/s/ BRENDAN
M. GIBBONS
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Name:
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Brendan
M. Gibbons
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Title:
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Vice
President, General Counsel, and
Secretary
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Exhibit
99.1
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Contact:
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Eric
Martin
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Vice
President, Investor Relations
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(404)
745-2889
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CARTER’S,
INC. REPORTS THIRD QUARTER RESULTS
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·
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CONSOLIDATED
NET SALES INCREASED 6%
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·
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CARTER’S
RETAIL COMPARABLE STORE SALES INCREASED 6%
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·
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OSHKOSH
RETAIL COMPARABLE STORE SALES INCREASED
13%
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Atlanta,
Georgia, October 21, 2008 / PRNewswire – First Call / – Carter’s, Inc.
(NYSE:CRI), the
largest branded marketer in the United States of apparel exclusively for babies
and young children, reported its third quarter fiscal 2008 results.
“Our
third quarter performance was better than expected, particularly given the
challenges of the current retail environment. For the past year,
we’ve made significant investments to strengthen our organization and product
offerings, and our results reflect the benefit from these investments,” noted
Michael D. Casey, Chief Executive Officer. “We believe the strength
of our brands and the significant value we are providing to our consumers will
enable us to weather this difficult retail and economic period.”
Third
Quarter of Fiscal 2008 compared to Third Quarter of Fiscal 2007
Consolidated
net sales increased 6.2% to $436.4 million. Net sales of the
Company’s Carter’s brands increased 6.6% to $341.0 million. Net sales
of the Company’s OshKosh brand increased 4.8% to $95.4 million.
Consolidated
retail store sales increased 12.0% to $185.1 million. Carter’s retail
store sales increased 9.8% to $112.5 million, driven by a comparable store sales
increase of 6.1%, or $6.2 million, and sales of $4.2 million from Carter’s
stores opened since the third quarter of fiscal 2007. OshKosh retail
store sales increased 15.6% to $72.6 million, driven by a comparable store sales
increase of 13.2%, or $8.2 million, and sales of $2.1
million from OshKosh stores opened since the third quarter of fiscal
2007.
In the
third quarter of fiscal 2008, the Company opened three Carter’s retail
stores. As of September 27, 2008, the Company had 234 Carter’s and
163 OshKosh stores. The Company plans to open 19 Carter’s and three
OshKosh stores during the fourth quarter of fiscal 2008. The Company
also plans to close one Carter’s store during the fourth quarter of fiscal
2008.
The
Company’s mass channel sales, which are comprised of sales of our Just One Year brand to Target
and Child of Mine brand
to Wal-Mart, increased $9.1 million, or 13.4%, to $76.7
million. Sales of our Child of Mine brand increased
$7.6 million, or 17.9%, to $49.9 million due to the timing of product
launches. Sales of our Just One Year brand increased
$1.5 million, or 6.0%, to $26.8 million.
Carter’s
wholesale sales increased $1.9 million, or 1.3%, to $151.8 million due to better
product performance and higher demand, partially offset by the impact of
cancelled orders from high credit risk customers. OshKosh wholesale
sales decreased $5.4 million, or 19.1%, to $22.8 million due to a reduction in
demand resulting from past product performance. This decrease also
reflects changes made to improve product performance, including reducing
wholesale prices.
During
the third quarter of fiscal 2008, the Company recorded a $2.6 million charge
related to the write-down of the carrying value of the OshKosh distribution
facility held for sale. This write-down reflects a reduction in the
anticipated selling price of the property due to a deterioration in the
commercial real estate market.
2
Consolidated
operating income in the third quarter of fiscal 2008 was $57.1 million as
compared to $60.0 million in the third quarter of fiscal
2007. Excluding the $2.6 million charge related to the distribution
facility write-down in the third quarter of fiscal 2008 and excluding the
distribution facility closure costs of $0.3 million in the third quarter of
fiscal 2007, the Company’s adjusted operating income decreased $0.6 million, or
0.9%. An improvement in earnings from our OshKosh retail segment was
offset by provisions for excess inventory and incentive
compensation.
For the
third quarter of fiscal 2008, the Company’s net income was $33.4 million, or
$0.58 per diluted share, compared to net income of $34.6 million, or $0.58 per
diluted share, in the third quarter of fiscal 2007. Excluding the
distribution facility write-down charge in the third quarter of fiscal 2008 and
excluding the $0.2 million in after-tax distribution facility closure costs in
the third quarter of fiscal 2007, the Company’s adjusted net income increased
$0.2 million, or 0.7%, and adjusted diluted earnings per share increased 3.4% to
$0.60 per diluted share.
The
reconciliation of income as reported under accounting principles generally
accepted in the United States of America (“GAAP”) to adjusted income is as
follows:
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(dollars
in millions, except EPS)
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||||||||||||
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Three-month
period ended
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||||||||||||
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September
27, 2008
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||||||||||||
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Operating
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Net
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Diluted
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||||||||||
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Income
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Income
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EPS
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||||||||||
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Income,
as reported (GAAP)
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$ | 57.1 | $ | 33.4 | $ | 0.58 | ||||||
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Facility
write-down (a)
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2.6 | 1.6 | 0.02 | |||||||||
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Income, as adjusted
(b)
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$ | 59.7 | $ | 35.0 | $ | 0.60 | ||||||
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(a)
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Charge
related to the write-down of the carrying value of the OshKosh
distribution facility held for sale.
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(b)
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In
addition to the results provided in this earnings release in accordance
with GAAP, the Company has provided adjusted, non-GAAP financial
measurements that present operating income, net income, and net income on
a diluted share basis excluding the adjustments discussed
above. We believe these adjustments provide a meaningful
comparison of the Company’s results. The adjusted, non-GAAP
financial measurements included in this earnings release should not be
considered as an alternative to net income or as any other measurement of
performance derived in accordance with GAAP. The adjusted,
non-GAAP financial information is presented for informational purposes
only and is not necessarily indicative of the Company’s future condition
or results of operations.
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First
Nine Months of Fiscal 2008 compared to First Nine Months of Fiscal
2007
Consolidated
net sales increased 4.8% to $1.1 billion. Net sales of the Company’s
Carter’s brands increased 6.1% to $846.2 million. Net sales of the
Company’s OshKosh brand increased 0.4% to $221.8 million.
Consolidated
retail store sales increased 11.5% to $458.4 million. Carter’s retail
store sales increased 15.0% to $291.6 million, driven by a comparable store
sales increase of 11.3%, or $28.5 million, and sales of $10.4 million from
Carter’s stores opened since the third quarter of fiscal 2007, partially offset
by the impact of store closures of $0.9
million. OshKosh retail store sales increased 5.9% to $166.8 million,
due to sales of $5.8 million from OshKosh stores opened since the third quarter
of fiscal 2007 and a comparable store sales increase of $4.8 million, or 3.0%,
partially offset by the impact of store closures of $1.3 million. In
the first nine months of fiscal 2008, the Company opened six Carter’s retail
stores.
The
Company’s mass channel sales increased $2.2 million, or 1.1%, to $190.7
million. Sales of our Just One Year brand increased
$6.8 million, or 9.9%, to $75.5 million, driven by new door
growth. Sales of our Child of Mine brand decreased
$4.6 million, or 3.9%, to $115.2 million, due primarily to product performance
in certain categories.
Carter’s
wholesale sales increased $8.1 million, or 2.3%, to $364.0 million due to better
product performance and higher demand, partially offset by the impact of
cancelled orders from high credit risk customers. OshKosh wholesale
sales decreased $8.4 million, or 13.3%, to $55.0 million due to a reduction in
demand resulting from past product performance. This decrease also
reflects changes made to improve product performance, including reducing
wholesale prices.
In
connection with the retirement of an executive officer, the Company recorded
charges during the second quarter of fiscal 2008 of $5.3 million, $3.1 million
of which related to severance and benefit obligations and $2.2 million of which
related to the vesting of certain stock options.
Consolidated
operating income in the first nine months of fiscal 2008 was $86.9 million
compared to an operating loss of $56.7 million in the first nine months of
fiscal 2007. Excluding the executive retirement charges and the
distribution facility write-down in the first nine months of fiscal 2008 and
excluding the impairment and distribution facility closure costs in the first
nine months of fiscal 2007, the Company’s adjusted operating income decreased
$10.7 million, or 10.2%. This decrease reflects the underperformance
of certain components of our Child of Mine brand and
provisions for incentive compensation and excess inventory.
3
Net
income in the first nine months of fiscal 2008 was $47.7 million, or $0.82 per
diluted share, compared to a net loss of $99.2 million, or $1.71 per diluted
share, in the first nine months of fiscal 2007. Excluding the
executive retirement charges and the distribution facility write-down in the
first nine months of fiscal 2008 and excluding the impairment and distribution
facility closure costs in the first nine months of fiscal 2007, the Company’s
adjusted net income decreased $3.2 million, or 5.7%, and adjusted diluted
earnings per share decreased 2.2% to $0.90 per diluted share.
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(dollars
in millions, except EPS)
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Nine-month
period ended
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||||||||||||
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September
27, 2008
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||||||||||||
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Operating
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Net
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Diluted
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||||||||||
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Income
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Income
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EPS
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||||||||||
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Income,
as reported (GAAP)
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$ | 86.9 | $ | 47.7 | $ | 0.82 | ||||||
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Executive
retirement charges
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5.3 | 3.4 | 0.06 | |||||||||
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Facility
write-down (a)
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2.6 | 1.6 | 0.02 | |||||||||
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Income, as adjusted
(b)
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$ | 94.8 | $ | 52.7 | $ | 0.90 | ||||||
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(a)
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Charge
related to the write-down of the carrying value of the OshKosh
distribution facility held for sale.
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(b)
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In
addition to the results provided in this earnings release in accordance
with GAAP, the Company has provided adjusted, non-GAAP financial
measurements that present operating income, net income, and net income on
a diluted share basis excluding the adjustments discussed
above. We believe these adjustments provide a meaningful
comparison of the Company’s results. The adjusted, non-GAAP
financial measurements included in this earnings release should not be
considered as an alternative to net income or as any other measurement of
performance derived in accordance with GAAP. The adjusted,
non-GAAP financial information is presented for informational purposes
only and is not necessarily indicative of the Company’s future condition
or results of operations.
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4
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(dollars
in millions, except EPS)
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||||||||||||
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Nine-month
period ended
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||||||||||||
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September
29, 2007
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||||||||||||
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Operating
(Loss)
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Net
(Loss)
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Diluted
|
||||||||||
|
Income
|
Income
|
EPS
|
||||||||||
|
Loss,
as reported (GAAP)
|
$ | (56.7 | ) | $ | (99.2 | ) | $ | (1.71 | ) | |||
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Intangible
asset impairment (a)
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154.9 | 150.5 | 2.59 | |||||||||
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Distribution
facility closure costs (b)
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5.2 | 3.3 | 0.06 | |||||||||
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Accelerated
depreciation (c)
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2.1 | 1.3 | 0.02 | |||||||||
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Diluted
share count impact (d)
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-- | -- | (0.04 | ) | ||||||||
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Income, as adjusted
(e)
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$ | 105.5 | $ | 55.9 | $ | 0.92 | ||||||
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(a)
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OshKosh-related
intangible asset impairment charges.
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(b)
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Costs
associated with the closure of the OshKosh distribution
facility.
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(c)
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Accelerated
depreciation charges (included in selling, general, and administrative
expenses) related to the closure of the OshKosh distribution
facility.
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(d)
|
When
reporting a loss in accordance with GAAP, the number of diluted weighted
average shares is equal to the number of basic weighted average
shares. This adjustment reflects the impact of the difference
between the number of diluted shares used for calculating GAAP EPS (58.0
million shares) and the number of diluted shares used for calculating
adjusted EPS (60.5 million shares).
|
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(e)
|
In
addition to the results provided in this earnings release in accordance
with GAAP, the Company has provided adjusted, non-GAAP financial
measurements that present operating income, net income, and net income on
a diluted share basis excluding the adjustments discussed
above. We believe these adjustments provide a meaningful
comparison of the Company’s results. The adjusted, non-GAAP
financial measurements included in this earnings release should not be
considered as an alternative to net income or as any other measurement of
performance derived in accordance with GAAP. The adjusted,
non-GAAP financial information is presented for informational purposes
only and is not necessarily indicative of the Company’s future condition
or results of operations.
|
Net cash
provided by operating activities in the first nine months of fiscal 2008 was
$57.4
million compared to net cash used in operating activities of $38.6 million in
the first nine months of fiscal 2007. The improvement in cash flow
was driven largely by favorable changes in working capital, primarily with
respect to inventory.
During
the first nine months of fiscal 2008, the Company repurchased 1,898,183 shares
of its common stock for approximately $30 million at an average price of $15.69
per share.
5
Quarterly
Conference Call
The
Company will broadcast its quarterly conference call on October 22, 2008 at
8:30 a.m.
Eastern Time. To participate in the call, please dial
1-913-312-6698. To listen to the live broadcast over the internet,
please log on to www.carters.com, click on “Investor Relations,” and click on
the link “Third Quarter Conference Call.” The conference call will be
simultaneously broadcast on the Company’s website at www.carters.com. Presentation
materials for the call can be accessed on the Company’s website at www.carters.com by
clicking on the “Investor Relations” tab and choosing “conference calls &
webcasts” on the left side of the screen. A replay of the call will
be available shortly after the broadcast through October 31, 2008, at
1-719-457-0820, passcode 7243510. The replay will be archived on the
Company’s website at the same location.
For more
information on Carter’s, Inc., please visit www.carters.com.
6
Cautionary
Language
Statements
contained herein that relate to the Company’s future performance, including,
without limitation, statements with respect to the Company’s anticipated results
for fiscal 2008 or any other future period, are forward-looking statements
within the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Such statements are based on current
expectations only, and are subject to certain risks, uncertainties, and
assumptions. Should one or more of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect, actual results
may vary materially from those anticipated, estimated, or
projected. Factors that could cause actual results to materially
differ include: a decrease in sales to, or the loss of one or more of, the
Company’s key customers; increased competition in the baby and young children’s
apparel market; the acceptance of our products in the marketplace; deflationary
pressures on our prices; disruptions in foreign supply sources; negative
publicity; our leverage, which increases our exposure to interest rate risk and
could require us to dedicate a substantial portion of our cash flow to repay
principal; changes in consumer preference and fashion trends; a decrease in the
overall level of consumer spending; the impact of governmental regulations and
environmental risks applicable to the Company’s business; our ability to
adequately forecast demand, which could create significant levels of excess
inventory; our ability to identify new retail store locations, and negotiate
appropriate lease terms for our retail stores; our ability to improve the
performance of our retail and OshKosh wholesale segments; our ability to attract
and retain key individuals within the organization; failure to realize the
revenue growth, cost savings and other benefits that we expect from our
acquisition of OshKosh B’Gosh, Inc., which could impact the carrying value of
our intangible assets; and seasonal fluctuations in the children’s apparel
business. These risks are further described in our most recently
filed Annual Report on Form 10-K and other reports filed with the Securities and
Exchange Commission under the headings “Risk Factors” and “Forward-Looking
Statements.” The Company undertakes no obligation to publicly update
or revise any forward-looking statements, whether as a result of new
information, future events, or otherwise.
7
CARTER’S,
INC.
CONSOLIDATED
STATEMENTS OF OPERATIONS
(dollars
in thousands, except for share data)
(unaudited)
|
Three-month
periods ended
|
Nine-month
periods ended
|
|||||||||||||||
|
September
27,
2008
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September
29,
2007
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September
27,
2008
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September
29,
2007
|
|||||||||||||
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Net
sales:
|
||||||||||||||||
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Carter’s
Wholesale
|
$ | 151,848 | $ | 149,918 | $ | 364,002 | $ | 355,865 | ||||||||
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OshKosh
Wholesale
|
22,801 | 28,197 | 55,010 | 63,417 | ||||||||||||
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Carter’s
Retail
|
112,508 | 102,429 | 291,566 | 253,530 | ||||||||||||
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OshKosh
Retail
|
72,568 | 62,800 | 166,816 | 157,533 | ||||||||||||
|
Mass
Channel
|
76,694 | 67,605 | 190,672 | 188,507 | ||||||||||||
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Total
net sales
|
436,419 | 410,949 | 1,068,066 | 1,018,852 | ||||||||||||
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Cost
of goods sold
|
281,752 | 265,093 | 708,903 | 671,198 | ||||||||||||
|
Gross
profit
|
154,667 | 145,856 | 359,163 | 347,654 | ||||||||||||
|
Selling,
general, and administrative expenses
|
104,536 | 94,241 | 289,019 | 267,122 | ||||||||||||
|
Executive
retirement charges
|
-- | -- | 5,325 | -- | ||||||||||||
|
Intangible
asset impairment
|
-- | -- | -- | 154,886 | ||||||||||||
|
Facility
write-down and closure costs
|
2,609 | 256 | 2,609 | 5,233 | ||||||||||||
|
Royalty
income
|
(9,576 | ) | (8,649 | ) | (24,693 | ) | (22,894 | ) | ||||||||
|
Operating
income (loss)
|
57,098 | 60,008 | 86,903 | (56,693 | ) | |||||||||||
|
Interest
expense, net
|
4,048 | 6,021 | 13,357 | 17,453 | ||||||||||||
|
Income
(loss) before income taxes
|
53,050 | 53,987 | 73,546 | (74,146 | ) | |||||||||||
|
Provision
for income taxes
|
19,675 | 19,369 | 25,833 | 25,074 | ||||||||||||
|
Net
income (loss)
|
$ | 33,375 | $ | 34,618 | $ | 47,713 | $ | ( 99,220 | ) | |||||||
|
Basic
net income (loss) per common share
|
$ | 0.60 | $ | 0.60 | $ | 0.85 | $ | (1.71 | ) | |||||||
|
Diluted
net income (loss) per common share
|
$ | 0.58 | $ | 0.58 | $ | 0.82 | $ | (1.71 | ) | |||||||
|
Basic
weighted-average number of shares outstanding
|
56,015,725 | 57,745,717 | 56,462,515 | 58,010,633 | ||||||||||||
|
Diluted
weighted-average number of shares outstanding
|
57,963,941 | 59,975,130 | 58,490,406 | 58,010,633 | ||||||||||||
8
CARTER’S,
INC.
CONSOLIDATED BALANCE
SHEETS
(dollars
in thousands, except for share data)
(unaudited)
|
September 27, 2008
|
December 29, 2007
|
September 29, 2007
|
||||||||||
|
ASSETS
|
||||||||||||
|
Current
assets:
|
||||||||||||
|
Cash
and cash equivalents
|
$ | 59,660 | $ | 49,012 | $ | 9,254 | ||||||
|
Accounts
receivable, net
|
160,094 | 119,707 | 160,069 | |||||||||
|
Finished
good inventories, net
|
214,359 | 225,494 | 246,529 | |||||||||
|
Assets
held for sale
|
3,500 | 6,109 | 6,109 | |||||||||
|
Prepaid
expenses and other current assets
|
12,667 | 9,093 | 13,385 | |||||||||
|
Deferred
income taxes
|
24,921 | 24,234 | 20,729 | |||||||||
|
Total
current assets
|
475,201 | 433,649 | 456,075 | |||||||||
|
Property,
plant, and equipment, net
|
76,377 | 75,053 | 72,829 | |||||||||
|
Tradenames
|
305,733 | 308,233 | 308,233 | |||||||||
|
Cost
in excess of fair value of net assets acquired
|
136,570 | 136,570 | 136,570 | |||||||||
|
Deferred
debt issuance costs, net
|
3,892 | 4,743 | 5,031 | |||||||||
|
Licensing
agreements, net
|
6,174 | 8,915 | 9,829 | |||||||||
|
Other
assets
|
8,310 | 7,505 | 9,035 | |||||||||
|
Total
assets
|
$ | 1,012,257 | $ | 974,668 | $ | 997,602 | ||||||
|
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||||||||||
|
Current
liabilities:
|
||||||||||||
|
Current
maturities of long-term debt
|
$ | 4,379 | $ | 3,503 | $ | 2,627 | ||||||
|
Accounts
payable
|
58,624 | 56,589 | 69,403 | |||||||||
|
Other
current liabilities
|
58,174 | 46,666 | 52,022 | |||||||||
|
Total
current liabilities
|
121,177 | 106,758 | 124,052 | |||||||||
|
Revolving
loan facility
|
-- | -- | 21,600 | |||||||||
|
Long-term
debt
|
335,399 | 338,026 | 339,778 | |||||||||
|
Deferred
income taxes
|
112,873 | 113,706 | 114,481 | |||||||||
|
Other
long-term liabilities
|
32,134 | 34,049 | 32,443 | |||||||||
|
Total
liabilities
|
601,583 | 592,539 | 632,354 | |||||||||
|
Commitments
and contingencies
|
||||||||||||
|
Stockholders’
equity:
|
||||||||||||
|
Preferred
stock; par value $.01 per share; 100,000 shares authorized; none issued or
outstanding at September 27, 2008, December 29, 2007, and September 29,
2007
|
-- | -- | -- | |||||||||
|
Common
stock, voting; par value $.01 per share; 150,000,000 shares authorized;
56,533,319, 57,663,315, and 57,926,790 shares issued and outstanding at
September 27, 2008, December 29, 2007, and September 29, 2007,
respectively
|
565 | 576 | 579 | |||||||||
|
Additional
paid-in capital
|
213,546 | 232,356 | 242,780 | |||||||||
|
Accumulated
other comprehensive income
|
2,324 | 2,671 | 3,965 | |||||||||
|
Retained
earnings
|
194,239 | 146,526 | 117,924 | |||||||||
|
Total
stockholders’ equity
|
410,674 | 382,129 | 365,248 | |||||||||
|
Total
liabilities and stockholders’ equity
|
$ | 1,012,257 | $ | 974,668 | $ | 997,602 | ||||||
9
CARTER’S,
INC.
CONSOLIDATED
STATEMENTS OF CASH FLOW
(dollars
in thousands)
(unaudited)
|
Nine-month
periods ended
|
||||||||
|
September
27,
2008
|
September
29,
2007
|
|||||||
|
Cash
flows from operating activities:
|
||||||||
|
Net income
(loss)
|
$ | 47,713 | $ | (99,220 | ) | |||
|
Adjustments to reconcile net
income (loss) to net cash provided by
(used in) operating
activities:
|
||||||||
|
Depreciation and
amortization
|
20,576 | 22,526 | ||||||
|
Amortization of debt issuance
costs
|
851 | 872 | ||||||
|
Non-cash
intangible asset impairment charges
|
-- | 154,886 | ||||||
|
Non-cash stock-based compensation
expense
|
6,756 | 4,653 | ||||||
|
Income tax benefit from exercised
stock options
|
(3,457 | ) | (7,797 | ) | ||||
|
Loss on disposal of property,
plant, and equipment
|
383 | 620 | ||||||
|
Deferred income
taxes
|
(1,399 | ) | (8,890 | ) | ||||
|
Non-cash facility write-down and
closure costs
|
2,609 | 2,450 | ||||||
|
Effect of changes in operating
assets and liabilities:
|
||||||||
|
Accounts
receivable
|
(40,387 | ) | (49,454 | ) | ||||
|
Inventories
|
11,135 | (52,941 | ) | |||||
|
Prepaid
expenses and other assets
|
(4,722 | ) | (5,302 | ) | ||||
|
Accounts
payable and other liabilities
|
17,295 | (1,020 | ) | |||||
|
Net
cash provided by (used in) operating activities
|
57,353 | (38,617 | ) | |||||
|
Cash
flows from investing activities:
|
||||||||
|
Capital
expenditures
|
(19,197 | ) | (13,228 | ) | ||||
|
Proceeds from sale of property,
plant, and equipment
|
-- | 53 | ||||||
|
Net
cash used in investing activities
|
(19,197 | ) | (13,175 | ) | ||||
|
Cash
flows from financing activities:
|
||||||||
|
Payments on term
loan
|
(1,751 | ) | (2,627 | ) | ||||
|
Share repurchase
|
(29,774 | ) | (47,406 | ) | ||||
|
Borrowings from revolving loan
facility
|
-- | 117,600 | ||||||
|
Payments on revolving loan
facility
|
-- | (96,000 | ) | |||||
|
Income tax benefit from
exercised stock options
|
3,457 | 7,797 | ||||||
|
Proceeds from exercise of stock
options
|
560 | 2,576 | ||||||
|
Other
|
-- | 10,561 | ||||||
|
Net
cash used in financing activities
|
(27,508 | ) | (7,499 | ) | ||||
|
Net
increase (decrease) in cash and cash equivalents
|
10,648 | (59,291 | ) | |||||
|
Cash
and cash equivalents, beginning of period
|
49,012 | 68,545 | ||||||
|
Cash
and cash equivalents, end of period
|
$ | 59,660 | $ | 9,254 | ||||
10