Hanesbrands Inc.
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 26, 2006
Hanesbrands Inc.
(Exact name of registrant as specified in its charter)
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Maryland
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001-32891
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20-3552316 |
(State or other jurisdiction
of incorporation)
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(Commission File Number)
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(IRS Employer
Identification No.) |
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1000 East Hanes Mill Road |
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Winston-Salem, NC
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27105 |
(Address of principal executive offices)
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(Zip Code) |
Registrants telephone number, including area code: (336) 519-4400
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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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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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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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
TABLE OF CONTENTS
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Item 2.02.
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Results of Operations and Financial Condition |
Item 5.02.
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Election of Directors |
Item 5.03.
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Change in Fiscal Year |
Item 7.01.
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Regulation FD Disclosure |
Item 9.01.
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Financial Statements and Exhibits |
Item 2.02. Results of Operations and Financial Condition
On October 31, 2006, Hanesbrands Inc. (Hanesbrands) issued a press release announcing its
financial results for the fiscal quarter ended September 30, 2006. A copy of the press release is
attached as Exhibit 99.1 to this Current Report on Form 8-K. Exhibit 99.1 is being furnished and
shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934 (the
Exchange Act), nor shall Exhibit 99.1 be deemed incorporated by reference in any filing under the
Securities Act of 1933 (the Securities Act) or the Exchange Act, except as shall be expressly set
forth by specific reference in such filing.
Exhibit
99.1 contains disclosures about EBITDA, adjusted operating profit and
adjusted net income, which are considered non-GAAP performance
measures, that Hanesbrands has chosen to provide to investors to
enable them to perform additional analyses of past, present and
future operating performance and as a supplemental means of
evaluating Hanesbrands operations. The non-GAAP information
should not be considered a substitute for financial information
presented in accordance with GAAP, and may be different from non-GAAP
or other pro forma measures used by other companies.
Item 5.02. Election of Directors
On October 26, 2006, the Board of Directors of Hanesbrands increased the number of members of
the Board from nine to ten and elected Jessica T. Mathews to serve as a member of the board of
directors. The election of Ms. Matthews is effective immediately, and she will serve until the
next annual meeting of Hanesbrands stockholders and until her successor is elected and qualified,
or until her resignation or removal. Hanesbrands is not aware of any transaction with Ms. Matthews
that would require disclosure under Item 404(a) of Regulation S-K. The press release issued by
Hanesbrands announcing the election is furnished as Exhibit 99.2 and is incorporated herein by
reference.
Item 5.03. Change in Fiscal Year
On October 26, 2006, the Board of Directors of Hanesbrands voted unanimously to change
Hanesbrands fiscal year end from the Saturday closest to June 30 to the Saturday closest to
December 31. The transition period that will result from this change will be from July 2, 2006
until December 30, 2006. Hanesbrands will file a report on Form 10-K that will cover
this transition period.
Item 7.01. Regulation FD Disclosure
Exhibit 99.1 to this Current Report on Form 8-K includes forward-looking financial information
that is expected to be discussed on the previously announced conference call with investors and
analysts to be held by us at 10:00 a.m., Eastern time, today (October 31, 2006). The call may be
accessed on the home page of the Hanesbrands corporate Web site, www.hanesbrands.com. Replays of
the call will be available on the home page of the Hanesbrands corporate Web site and via
telephone. The telephone playback will be available from
approximately 2 p.m. Eastern time on October 31,
2006, until midnight Eastern time on Tuesday, Nov. 7, 2006. The replay will be available by calling
toll-free (888) 286-8010, or (617) 801-6888 for international callers. The replay pass code is
12345678. Exhibit 99.1 is being furnished and shall not be deemed filed for purposes of Section 18
of the Exchange Act, nor shall it be deemed incorporated by reference in any filing under the
Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in
such filing.
Item 9.01 Financial Statements and Exhibits
(c) Exhibits
Exhibit 99.1 Press release dated October 31, 2006
Exhibit 99.2 Press release dated October 26, 2006
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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October 31, 2006 |
HANESBRANDS INC.
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By: |
/s/
E. Lee Wyatt Jr. |
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E. Lee Wyatt Jr. |
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Executive Vice President,
Chief Financial Officer |
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3
Ex-99.1
Exhibit 99.1
Hanesbrands Inc
1000 East Hanes Mill Road
Winston-Salem, NC 27105
(336) 519-4400
FOR
IMMEDIATE RELEASE
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News Media, contact:
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Matt Hall, (336) 519-3386 |
Analysts and Investors, contact:
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Brian Lantz, (336) 519-7130 |
HANESBRANDS INC. ANNOUNCES LONG-TERM GROWTH GOALS AND REPORTS RESULTS FOR QUARTER ENDED SEPT. 30,
2006
Hanesbrands Board of Directors Approves Change to December Fiscal Year End Beginning in 2007;
Quarters Ending Sept. 30 and Dec. 30, 2006, will Constitute Transition Period
WINSTON-SALEM, N.C. (Oct. 31, 2006) Hanesbrands Inc. (NYSE: HBI), a leading marketer of
innerwear, outerwear and hosiery apparel, today reported results for the quarter ended Sept. 30,
2006.
Hanesbrands began operating as an independent publicly traded company on Sept. 5, 2006. During the
13-week quarter, Hanesbrands operated for approximately 91/2 weeks as Sara Lee Corporations branded
apparel business in the Americas and Asia.
We are pleased to have successfully completed our spinoff in the quarter and are focused on
driving results, executing our strategies and establishing the base from which to achieve our
long-term growth goals, Hanesbrands Chief Executive Officer Richard A. Noll said. The results
for our September quarter and comparisons to a year ago are influenced by the spinoff from Sara
Lee and the resulting capital structure of the company that took place in the quarter.
Highlights of the quarter ended Sept. 30, 2006, include:
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Net sales of $1.12 billion were down by 1.7 percent from $1.14 billion in the year-ago
quarter ended Oct. 1, 2005. Discontinuance of low-margin product lines and lower sales of
sheer hosiery primarily accounted for the decrease. |
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Our year-over-year sales decline was expected due to the exit from low-margin sales and as a
result of continued sheer hosiery sales declines that are following a decade-long downward
trend, Noll said. Core sales were generally consistent with last year. |
Hanesbrands Inc. Announces Long-Term Growth Goals and
Reports Results for Quarter Ended Sept. 30, 2006 Page 2
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Operating profit decreased by 9.6 percent to $93.9 million from $103.8 million a year ago.
The operating profit decline in the current quarter primarily reflected expenses associated
with operating as an independent company, nonrecurring spinoff and related costs, and
restructuring and related charges for plant closures. |
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Excluding costs for the spinoff and restructuring in the current and year-ago quarters
(details in Table 4), operating profit increased by 15.7 percent to $124.6 million from $107.7
million a year ago. The increase in adjusted operating profit was a result of reduced
corporate allocations associated with Sara Lee ownership, the benefits of previous
cost-reduction actions and beneficial timing of certain costs between the September and
December quarters. |
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Net income was $50.3 million, down 39.1 percent from $82.6 million a year ago. The
decrease in net income primarily reflects increased interest expense, reduced operating profit
and a higher income tax rate. |
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Interest expense increased in the September quarter to $17.6 million from $4.1 million a year
ago. The increase is a result of higher debt incurred 31/2 weeks before the end of the quarter
as a result of the spinoff from Sara Lee Corporation. Long-term debt at the end of the
quarter was $2.6 billion. |
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The income tax rate for the quarter was 34.0 percent, up from 17.2 percent a year ago as a
result of Hanesbrands independent tax structure. |
We are making good progress in the execution of our long-term growth strategies, Noll said. In
the past year, we have continued to invest in our brands and innovate with our product lines,
particularly in the area of comfort for consumers. We have had success with Hanes products
featuring ComfortSoft waistbands, continued strong growth of our C-9 by Champion products, and a
very strong launch of a front-close Playtex 18-Hour bra, which has quickly become one of the
best-selling bras in the country.
We also are fully engaged in creating a lower-cost global supply chain. In September, we
announced plans to close three manufacturing facilities and relocate work to lower-cost facilities
in the Western Hemisphere. Two weeks ago, we announced plans to consolidate three distribution
centers in the United States in order to generate increased efficiency.
And last week we announced that we have entered into a definitive agreement to purchase a sewing
operation in Thailand, our first owned sewing operation in Asia. Our strategy is to have a
low-cost supply chain, and in todays environment, that requires that we operate on a global basis,
with a balance in the long run between the Western and Eastern hemispheres. We are making
excellent progress and creating significant momentum in the execution of our global supply chain
strategy.
Hanesbrands Inc. Announces Long-Term Growth Goals and
Reports Results for Quarter Ended Sept. 30, 2006 Page 3
Long-Term Growth Goals
After establishing its first-year base performance in fiscal year 2007, which is discussed later in
this press release, Hanesbrands has growth goals that include:
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Long-term annual revenue growth of 1 percent to 3 percent, excluding acquisitions. |
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Long-term annual operating profit growth of 6 percent to 8 percent, excluding the effect of restructuring charges. |
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Long-term annual double-digit growth in diluted EPS, excluding the effect of restructuring charges. |
The company expects to incur approximately $250 million in restructuring and related charges over
the next three years to implement its cost-savings plan. About half of these charges are expected
to be noncash. The total includes the $27 million associated with the plant closures announced in
September 2006 and approximately $8 million associated with the distribution center consolidation
announced in October 2006.
Combining our revenue growth with the significant cost-savings initiatives we have planned via
consolidation opportunities and supply chain improvements, we will be able to generate even greater
growth for operating income, excluding restructuring costs, Noll said. And with our anticipated
ability to reduce debt and interest expense, we believe we can achieve sustainable double-digit
diluted EPS growth.
Fiscal 2007 Establishing a Solid Base for Long-Term Growth
The Hanesbrands board of directors has approved changing the companys fiscal year end from the
Saturday closest to June 30 to the Saturday closest to Dec. 31. The 52-week fiscal 2007 will begin
on Sunday, Dec. 31, 2006, and end on Saturday, Dec. 29, 2007. Results for quarter ended Sept. 30,
2006, and the quarter ending Dec. 30, 2006, will be reported as a transition, or stub, period.
In fiscal 2007, Hanesbrands has a goal of establishing a solid base on which to execute long-term
growth. The company will have overlapped the net sales effect of exiting low-margin sales in
fiscal 2006, and therefore, its current annual sales run rate of approximately $4.5 billion
reflects a good baseline from which to build.
While Hanesbrands will incur increased costs as a stand-alone company and plans to increase
investment behind its strategies, the company has a goal to substantially offset these increases
with cost reductions as well as the elimination of corporate allocations associated with previous
Sara Lee ownership. Hanesbrands believes that achieving this goal could allow its operating profit
margin in the next fiscal year, excluding restructuring, to approach 91/2 percent, similar to the
operating margin in its most recently completed fiscal year ended
July 1, 2006.
Hanesbrands Inc. Announces Long-Term Growth Goals and
Reports Results for Quarter Ended Sept. 30, 2006 Page 4
Interest expense will increase significantly in fiscal 2007 due to the capital structure
implemented for the spinoff. Based on the current London Interbank Offered Rate, Hanesbrands
weighted average interest rate is expected to be approximately 8.25 percent with the rate fixed on
more than half of the debt. The companys effective tax rate may fluctuate but is expected to
average approximately 30 percent to 35 percent. Both interest expense and the tax rate will
significantly decrease net income and EPS when compared with historical financial results as
reported under ownership of Sara Lee Corporation.
We believe that the ending balance sheet for the September quarter is a reasonable baseline for
the business, said Hanesbrands Chief Financial Officer E. Lee Wyatt. We are focused on the
opportunity to improve the balance sheet by $100 million between now and the end of fiscal 2007 by
improving payables, receivables, inventory and our cash balance.
Financially, we are committed to funding business growth and our supply chain strategy, and the
remaining cash flow will be used primarily for debt reduction over the next couple of years. We
are comfortable that our cash flow will allow the company to service its initially above-average
level of leverage.
Hanesbrands does not envision any significant commercial acquisitions, although tactical
acquisition opportunities may be considered to accelerate the companys global supply chain and
cost-reduction strategy. Hanesbrands does not currently plan to pay a dividend.
Noll added, We have the competitive strengths and strategic potential to generate long-term annual
increases in sales and income. We are investing in our strongest brands, such a Hanes, Champion,
Playtex and Bali, that have leading market shares in high-volume apparel categories. We are also
investing in cost-reduction actions and a global supply chain to gain competitive advantage. The
combination of these brand-building and cost-savings efforts, supported by strong cash flow, is a
very powerful model for creating value.
Hanesbrands Policy on Guidance
Hanesbrands will follow a policy of not providing quarterly or annual EPS guidance. The company
does plan to communicate appropriately to provide an understanding of long-term goals, trends
associated with its business and current financial performance.
Webcast Conference Call
Hanesbrands will hold a live webcast via the Internet at 10 a.m. EST today of its first investor
conference call to discuss its strategic direction, goals and recent financial performance. The
live Internet broadcast and accompanying slide presentation may be accessed on the home page of the
Hanesbrands corporate Web site, www.hanesbrands.com. The call is expected to conclude by 11:30
a.m. EST.
Hanesbrands Inc. Announces Long-Term Growth Goals and
Reports Results for Quarter Ended Sept. 30, 2006 Page 5
Replays of the conference call will be available via the Internet and telephone. An archived
replay of the conference-call webcast and slide presentation will be available in the investors
section of the Hanesbrands corporate Web site.
The telephone playback will be available from approximately 2 p.m. EST today until midnight EST on
Tuesday, Nov. 7, 2006. The replay will be available by calling toll-free (888) 286-8010, or (617)
801-6888 for international callers. The eight-digit replay password is 12345678.
Hanesbrands Inc.
Hanesbrands Inc. is a leading marketer of innerwear, outerwear and hosiery apparel under strong
consumer brands, including Hanes, Champion, Playtex, Bali, Just My Size, barely there and
Wonderbra. The company designs, manufactures, sources and sells T-shirts, bras, panties, mens
underwear, childrens underwear, socks, hosiery, casual wear and active wear. Hanesbrands has
approximately 50,000 employees in 24 countries. More information may be found on the companys Web
site at www.hanesbrands.com.
Cautionary Statement Concerning Forward-Looking Statements
Statements in this press release that are not statements of historical fact are forward-looking
statements, including those regarding our launch as an independent company and the benefits
expected from that launch, our long-term goals and trends associated with our business. These
forward-looking statements speak only as of the date of this press release and are based on our
current plans and expectations. They involve risks and uncertainties that could cause actual
future results to be different than those described in or implied by such forward-looking
statements. These risks and uncertainties include the following: our ability to migrate our
production and manufacturing operations to lower-cost centers around the world; retailer
consolidation and other changes in the apparel essentials industry; loss of or reduction in sales
to, or financial difficulties experienced by, any of our top customers; and our substantial debt
and debt service requirements that restrict our operating and financial flexibility and impose
significant interest and financing costs. Further information about these matters and other
important risks and uncertainties is in our Securities and Exchange Commission filings. We do not
intend to update these forward-looking statements.
# # #
TABLE 1
HANESBRANDS INC.
Condensed Combined and Consolidated Statements of Income
(Unaudited)
(In thousands, except per-share amounts)
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Quarter Ended |
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September 30, 2006 |
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October 1, 2005 |
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% Change |
Net sales
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Innerwear |
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$ |
651,183 |
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$ |
662,387 |
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Outerwear |
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318,320 |
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305,117 |
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Hosiery |
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56,707 |
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67,361 |
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International |
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93,126 |
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|
92,153 |
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Other |
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10,796 |
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22,585 |
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1,130,132 |
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1,149,603 |
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Less: Intersegment |
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11,164 |
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11,642 |
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1,118,968 |
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1,137,961 |
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-1.7 |
% |
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Cost of sales |
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753,337 |
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768,442 |
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Gross profit |
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365,631 |
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369,519 |
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-1.1 |
% |
As a % of net sales |
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32.7 |
% |
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32.5 |
% |
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Selling, general, and administrative expenses |
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262,426 |
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|
265,927 |
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As a % of net sales |
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23.5 |
% |
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23.4 |
% |
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Restructuring |
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9,313 |
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(228 |
) |
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Operating profit |
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93,892 |
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|
103,820 |
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-9.6 |
% |
As a % of net sales |
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8.4 |
% |
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9.1 |
% |
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|
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|
|
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Interest expense, net |
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17,569 |
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|
4,083 |
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|
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|
|
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Income before income taxes |
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76,323 |
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|
99,737 |
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Income tax expense |
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25,978 |
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|
17,133 |
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|
|
|
|
|
|
|
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|
|
|
|
|
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Net income |
|
$ |
50,345 |
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|
$ |
82,604 |
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|
-39.1 |
% |
|
|
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|
|
|
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|
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|
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Earnings per share (1): |
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|
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Basic |
|
$ |
0.52 |
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$ |
0.86 |
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|
|
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Diluted |
|
$ |
0.52 |
|
|
$ |
0.86 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Weighted average shares outstanding (1): |
|
|
|
|
|
|
|
|
|
|
|
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Basic |
|
|
96,306 |
|
|
|
96,306 |
|
|
|
|
|
Diluted |
|
|
96,319 |
|
|
|
96,306 |
|
|
|
|
|
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|
(1) |
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For the quarter ended October 1, 2005, basic and diluted EPS were computed using
the number of common stock shares outstanding on the spinoff date (September 5, 2006). |
TABLE 2
HANESBRANDS INC.
Condensed Combined and Consolidated Balance Sheets
(Unaudited)
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
September 30, 2006 |
|
July 1, 2006 |
Cash and cash equivalents |
|
$ |
209,080 |
|
|
$ |
298,252 |
|
Trade accounts receivable |
|
|
516,778 |
|
|
|
523,430 |
|
Inventories |
|
|
1,262,961 |
|
|
|
1,236,586 |
|
Related entities and other |
|
|
168,810 |
|
|
|
1,697,544 |
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
|
2,157,629 |
|
|
|
3,755,812 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, net |
|
|
609,048 |
|
|
|
617,021 |
|
Intangible assets and goodwill |
|
|
417,120 |
|
|
|
415,019 |
|
Other noncurrent assets |
|
|
417,406 |
|
|
|
103,223 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
3,601,203 |
|
|
$ |
4,891,075 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
607,877 |
|
|
$ |
851,594 |
|
Related entities and other |
|
|
57,557 |
|
|
|
760,360 |
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
665,434 |
|
|
|
1,611,954 |
|
|
|
|
|
|
|
|
|
|
Long-term debt |
|
|
2,573,500 |
|
|
|
|
|
Other noncurrent liabilities |
|
|
346,034 |
|
|
|
49,987 |
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
3,584,968 |
|
|
|
1,661,941 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
16,235 |
|
|
|
3,229,134 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
3,601,203 |
|
|
$ |
4,891,075 |
|
|
|
|
|
|
|
|
|
|
TABLE 3
HANESBRANDS INC.
Condensed Combined and Consolidated Statements of Cash Flow
(Unaudited)
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
|
September 30, 2006 |
|
October 1, 2005 |
Operating activities: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
50,345 |
|
|
$ |
82,604 |
|
Depreciation and amortization |
|
|
29,573 |
|
|
|
25,347 |
|
Changes in assets and liabilities, net, and other |
|
|
(25,105 |
) |
|
|
67,941 |
|
|
|
|
|
|
|
|
|
|
Net cash from operating activities |
|
|
54,813 |
|
|
|
175,892 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing Activities: |
|
|
|
|
|
|
|
|
Purchases of property and equipment, net, and other |
|
|
(18,565 |
) |
|
|
(15,092 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing Activities: |
|
|
|
|
|
|
|
|
Transactions with parent companies and other |
|
|
(125,193 |
) |
|
|
(798,059 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of changes in foreign currency exchange rates on cash |
|
|
(227 |
) |
|
|
2,756 |
|
|
|
|
|
|
|
|
|
|
Decrease in cash and cash equivalents |
|
|
(89,172 |
) |
|
|
(634,503 |
) |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of year |
|
|
298,252 |
|
|
|
1,080,799 |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period |
|
$ |
209,080 |
|
|
$ |
446,296 |
|
|
|
|
|
|
|
|
|
|
TABLE 4
HANESBRANDS INC.
Supplemental Financial Information
(Unaudited)
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
|
September 30, 2006 |
|
October 1, 2005 |
Supply Chain |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plant closings |
|
|
|
|
|
|
|
|
-Accelerated depreciation included in Cost of Sales |
|
$ |
4,393 |
|
|
$ |
|
|
-Restructuring |
|
|
9,313 |
|
|
|
(228 |
) |
|
|
|
|
|
|
|
|
|
Total |
|
$ |
13,706 |
|
|
$ |
(228 |
) |
|
|
|
|
|
|
|
|
|
Noncash amount |
|
$ |
4,393 |
|
|
$ |
(228 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items included in SG&A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-Spinoff and related charges |
|
$ |
17,010 |
|
|
$ |
4,128 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
50,345 |
|
|
$ |
82,604 |
|
Interest expense, net |
|
|
17,569 |
|
|
|
4,083 |
|
Income tax expense |
|
|
25,978 |
|
|
|
17,133 |
|
Depreciation |
|
|
27,906 |
|
|
|
23,258 |
|
Amortization |
|
|
1,667 |
|
|
|
2,089 |
|
|
|
|
|
|
|
|
|
|
Total EBITDA |
|
$ |
123,465 |
|
|
$ |
129,167 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Reported Operating Results with
Certain Information Excluding Plant Closings and
Special Items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit |
|
$ |
93,892 |
|
|
$ |
103,820 |
|
Plant closings |
|
|
13,706 |
|
|
|
(228 |
) |
Special items included in SG&A |
|
|
17,010 |
|
|
|
4,128 |
|
|
|
|
|
|
|
|
|
|
Adjusted operating profit |
|
$ |
124,608 |
|
|
$ |
107,720 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
50,345 |
|
|
$ |
82,604 |
|
Plant closings |
|
|
13,706 |
|
|
|
(228 |
) |
Special items included in SG&A |
|
|
17,010 |
|
|
|
4,128 |
|
Tax effect on plant closings and special items in SG&A |
|
|
(10,443 |
) |
|
|
(671 |
) |
|
|
|
|
|
|
|
|
|
Adjusted net income |
|
$ |
70,618 |
|
|
$ |
85,833 |
|
|
|
|
|
|
|
|
|
|
Ex-99.2
Exhibit 99.2
Hanesbrands Inc.
1000 East Hanes Mill Road
Winston-Salem, NC 27105
(336) 519-4400
FOR IMMEDIATE RELEASE
|
|
|
News Media, contact:
|
|
Matt Hall, (336) 519-3386 |
Analysts and Investors, contact:
|
|
Brian Lantz, (336) 519-7130 |
HANESBRANDS INC. ELECTS JESSICA TUCHMAN MATHEWS
TO BOARD OF DIRECTORS
WINSTON-SALEM, N.C. (Oct. 26, 2006) Hanesbrands Inc. (NYSE:HBI) today announced that Jessica
Tuchman Mathews, president of the Carnegie Endowment for International Peace, has been elected to
the companys board of directors, effective immediately.
Mathews, 60, has served as president of the Carnegie Endowment in Washington, D.C, since 1997 and
has previously held governmental posts in the executive and legislative branches, as well as
positions in management and research in the nonprofit sector and editorial positions in journalism.
Under her direction, the Carnegie Endowment for International Peace, a private, nonprofit
organization dedicated to advancing cooperation between nations and promoting active international
engagement by the United States, has become a leader in the interdisciplinary study of
globalization and has launched a program for joint studies on and in China.
Jessica will be an outstanding addition to the Hanesbrands board, bringing a wealth of global
experience as well as a successful career of leading and operating within large organizations,
said Hanesbrands Executive Chairman Lee A. Chaden. Jessicas global perspective and
results-oriented management style are very relevant to Hanesbrands and its continuing strategy of
operating around the world and building a global low-cost supply chain.
Hanesbrands Inc. Elects Jessica Tuchman Mathews to Board of Directors Page 2
Mathews has served as a senior fellow at the Council on Foreign Relations and was founding vice
president and director of research of the World Resources Institute. Her governmental experience
includes serving as deputy to the Undersecretary of State for Global Affairs and director of the
National Security Councils Office of Global Issues. She also served as a member of the editorial
board of the Washington Post.
Mathews serves on the board of SomaLogic, Inc. She earned her doctorate degree in molecular
biology from the California Institute of Technology and holds a bachelors degree from Radcliffe
College.
Hanesbrands Inc.
Hanesbrands Inc. is a leading marketer of innerwear, outerwear and hosiery apparel under strong
consumer brands, including Hanes, Champion, Playtex, Bali, Just My Size, barely there and
Wonderbra. The company designs, manufactures, sources and sells T-shirts, bras, panties, mens
underwear, childrens underwear, socks, hosiery, casual wear and active wear. Hanesbrands has
approximately 50,000 employees in 24 countries. More information about the company may be found on
the Hanesbrands internet Web site at http://www.hanesbrands.com.
# # #