TSI's (Nasdaq: TSIC) third quarter earnings of $5.7 million were the highest for any quarter in the company's history, chairman and chief executive officer, William W. Compton reported today.

``Our operating blueprint continues to deliver strong top line growth as well as improved margins, operating efficiencies, cash flow generation and positions us well for future growth,'' Mr. Compton said.

Diluted earnings per share for the third quarter ended July 1, 2000, increased by 76 per cent to $0.74 from $0.42 for the same period last year. Net sales for the quarter increased by 11 per cent to $123 million from $110.5 million. Gross margin improved to 29.3 per cent compared with 26.8 per cent for the same period last year. Operating income as a per cent of net sales increased to 11.6 per cent for the quarter compared with 9.8 per cent for the same period last year. The increases in net sales and margins principally resulted from an improving product mix, an increase in units shipped and improved operating efficiencies during the quarter.

Mr. Compton added, ``Newness is driving our market. We continue to grow our business through product and marketing innovation.''

For the first nine months of fiscal 2000, net sales increased by 11 per cent to a record $348.9 million, compared with $315.4 million for the first nine months of fiscal 1999. Gross margin for the first nine months of fiscal 2000 improved to 29.5 per cent compared with 28.1 per cent for the same period last year. Excluding the effects of a one-time after-tax charge of approximately $0.08 per diluted share recorded in the first quarter of fiscal 2000, earnings per diluted share for the first nine months of fiscal 2000 increased 48 per cent to $1.80 compared with $1.22 for the first nine months of fiscal 1999.

Including the effect of the one-time charge, diluted earnings per share were $1.73 for the first nine months of fiscal 2000. Before giving effect to the one-time charge, operating income as a per cent of net sales for the first nine months of fiscal 2000 was 10.8 per cent compared with 9.6 per cent for the same period last year.

Mr. Compton concluded, ``We expect that our Enterprise 2000 information system implementation will bring additional operational efficiencies in fiscal 2001.''

TSI also announced that Michael Kagan, executive vice president and chief financial officer plans to retire during calendar year 2001. Mr. Kagan will remain on the company's board of directors. Mr. Kagan will be succeeded by John E. Fowler, who joined the company this April. Mr. Fowler's financial and administrative experience includes a 19-year career with KPMG Peat Marwick.

TSI markets and manufactures branded and private brand men's and women's casual and dress sportswear through major retail distribution channels including department and specialty stores. Major owned brands include Savane®, Farah®, Bay to Bay®, Flyers(TM), The Original Khaki Co.®, Two Pepper®, and Authentic Chino Casuals®. Licensed brands include Bill Blass®, John Henry®, and Van Heusen®. 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.


Tropical Sportswear Int'l Corporation
Condensed Consolidated Statements of Income
(amounts in thousands except share and per share data)
Three Months Ended
Nine Months Ended
July 1,
July 3,
July 1,
July 3,
2000
1999
2000
1999
Net sales
$123,044
$110,544
$348,920
$315,439
Cost of goods sold
86,959
80,921
246,100
227,007
Gross profit
36,085
29,623
102,820
88,432
Selling, general and administrative expenses
21,777
18,760
65,234
58,011
Severance cost charge
---
---
1,006
---
Operating income
14,308
10,863
36,580
30,421
Other expense:
Interest, net
4,279
4,556
12,867
13,884
Other, net
482
882
1,415
1,050
4,761
5,438
14,282
14,934
Income before income taxes
9,547
5,425
22,298
15,487
Provision for income taxes
3,807
2,150
8,983
5,880
Net income
$5,740
$3,275
$13,315
$9,607
Basic earnings per share
$0.75
$0.43
$1.75
$1.26
Weighted average number of shares used in the calculation:
Basic
7,629,000
7,618,000
7,625,000
7,613,000
Diluted earnings per share
$0.74
$0.42
$1.73
$1.22
Weighted average number of shares used in the calculation:
Diluted
7,767,000
7,846,000
7,713,000
7,873,000

 

Tropical Sportswear Int'l Corporation
Condensed Consolidated Balance Sheets
(amounts in thousands)
July 1,
October 2,
2000
1999
ASSETS
Current assets:
Cash
$2,898
$1,607
Accounts receivable
93,500
76,225
Inventories
75,352
72,181
Deferred income taxes
11,309
10,732
Prepaid expenses and other current assets
7,476
14,328
Total current assets
190,535
175,073
Property & equipment, net
45,438
42,185
Intangible assets, including trademarks and goodwill
52,251
55,335
Other assets
15,962
16,729
Total assets
$304,186
$289,322
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses
$58,558
$52,841
Current portion of long-term debt and capital leases
1,985
2,191
Total current liabilities
60,543
55,032
Long-term debt and capital leases
165,796
168,703
Deferred income taxes
2,860
2,860
Other non-current liabilities
2,937
2,904
Total liabilities
232,136
229,499
Shareholders' equity:
Preferred stock
---
---
Common stock
76
76
Additional Paid in Capital
17,687
17,535
Accumulated other comprehensive income (loss)
(809)
431
Retained earnings
55,096
41,781
Total shareholders' equity
72,050
59,823
Total liabilities and shareholders' equity
$304,186

$289,322