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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
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Form 10-Q
(Mark One)
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| [X] | QUARTERLY REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended June 30, 2004
or
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| [ ] | TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission file number 1-10218
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Collins & Aikman Corporation
(Exact name of registrant, as specified in its charter)
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DELAWARE | |
13-3489233 | |
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(State or other jurisdiction of | |
(IRS Employer | |
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incorporation or organization) | |
Identification No.) | |
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250
Stephenson Highway
Troy, Michigan 48083
(Address of principal executive offices, including zip code)
(248) 824-2500
(Registrant's telephone number, including area code)
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [ ] No [X].
Indicate by check mark whether the registrant is an accelerated filer (as defined in Exchange Act Rule 12b-2). Yes [X] No [ ].
As of July 31, 2004, the number of outstanding shares of the Registrant's common stock, $.01 par value, was 83,630,087 shares.
WEBSITE ACCESS TO COMPANY'S REPORTS:
Collins and Aikman's internet website address is www.collinsaikman.com. The Company's annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendment to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act are available free of charge through the Company's website and as soon as reasonably practicable after the reports are electronically filed with, or furnished to, the Securities and Exchange Commission.
The Company's Code of Business Conduct is available free of charge through the Company's internet website. Any amendments to the Company's Code of Business Conduct and any waivers of the Code of Business Conduct involving executive officers or directors of the Company will also be made available on the Company's internet website. Printed copies of the Company's Code of Business Conduct are also available free of charge to any shareholder upon request to: Corporate Secretary, Collins & Aikman Corporation, 250 Stephenson Highway, Troy, MI 48083.
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COLLINS & AIKMAN CORPORATION AND SUBSIDIARIES
FORM 10-Q QUARTERLY REPORT INDEX
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Page | ||||||||
| PART I | |
FINANCIAL INFORMATION | |
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| Item 1. | |
Financial Statements | |
1 | ||||||
| Item 2. | |
Management's Discussion and Analysis of Financial Condition and Results of Operations | |
29 | ||||||
| Item 3. | |
Quantitative and Qualitative Disclosures About Market Risk | |
40 | ||||||
| Item 4. | |
Controls and Procedures | |
41 | ||||||
| PART II | |
OTHER INFORMATION | |
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| Item 1. | |
Legal Proceedings | |
42 | ||||||
| Item 6. | |
Exhibits and Reports on Form 8-K | |
43 | ||||||
| Signature | |
44 | ||||||||
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PART I — FINANCIAL INFORMATION
Item 1. Financial Statements
COLLINS & AIKMAN CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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Quarter Ended | |
Six Months Ended | |||||||||||||||||||||||||||
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June
30, 2004 |
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June 30, 2003 |
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June
30, 2004 |
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June
30, 2003 |
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(Unaudited) | |
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(in millions, except for per share data) | |
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| Net sales | |
$ | 1,036.5 | |
$ | 1,033.5 | |
$ | 2,102.7 | |
$ | 2,068.6 | ||||||||||||||||||
| Cost of goods sold | |
918.8 | |
914.4 | |
1,882.7 | |
1,846.2 | ||||||||||||||||||||||
| Gross profit | |
117.7 | |
119.1 | |
220.0 | |
222.4 | ||||||||||||||||||||||
| Selling, general and administrative expenses | |
53.8 | |
69.3 | |
113.7 | |
135.3 | ||||||||||||||||||||||
| Restructuring charge | |
10.4 | |
4.9 | |
19.9 | |
4.9 | ||||||||||||||||||||||
| Impairment of long-lived assets | |
27.4 | |
0.8 | |
30.4 | |
18.9 | ||||||||||||||||||||||
| Operating income | |
26.1 | |
44.1 | |
56.0 | |
63.3 | ||||||||||||||||||||||
| Interest expense | |
40.3 | |
37.5 | |
80.5 | |
73.5 | ||||||||||||||||||||||
| Interest expense from subsidiary preferred stock dividends | |
10.1 | |
6.7 | |
20.0 | |
13.2 | ||||||||||||||||||||||
| Interest expense from subsidiary preferred stock accretion | |
0.5 | |
2.3 | |
1.0 | |
4.4 | ||||||||||||||||||||||
| Loss on sale of receivables | |
2.6 | |
1.3 | |
4.8 | |
2.7 | ||||||||||||||||||||||
| Other expense (income), net | |
5.8 | |
(22.2 | ) | |
6.3 | |
(23.7 | ) | ||||||||||||||||||||
| Income (loss) from continuing operations before income taxes | |
(33.2 | ) | |
18.5 | |
(56.6 | ) | |
(6.8 | ) | |||||||||||||||||||
| Income tax expense (benefit) | |
(3.5 | ) | |
7.8 | |
(3.6 | ) | |
8.7 | ||||||||||||||||||||
| Net income (loss) | |
$ | (29.7 | ) | |
$ | 10.7 | |
$ | (53.0 | ) | |
$ | (15.5 | ) | |||||||||||||||
| Net income (loss) per basic and diluted common share | |
$ | (0.35 | ) | |
$ | 0.13 | |
$ | (0.63 | ) | |
$ | (0.19 | ) | |||||||||||||||
| Average common shares outstanding: | |
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| Basic and diluted | |
83.6 | |
83.6 | |
83.6 | |
83.6 | ||||||||||||||||||||||
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The
Notes to Consolidated Financial Statements are an integral part
of
these consolidated financial statements.
1
COLLINS & AIKMAN CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
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June
30, 2004 |
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December
31, 2003 |
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(Unaudited) | |
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(in millions) | |
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| ASSETS | |
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| Current Assets: | |
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| Cash and cash equivalents | |
$ | 11.0 | |
$ | 13.2 | ||||||||
| Accounts and
other receivables, net of allowances of $6.4 and $9.2 |
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301.7 | |
257.3 | ||||||||||
| Inventories | |
167.7 | |
169.4 | ||||||||||
| Other | |
197.3 | |
212.2 | ||||||||||
| Total current assets | |
677.7 | |
652.1 | ||||||||||
| Property, plant and equipment, net | |
782.0 | |
834.1 | ||||||||||
| Deferred tax assets | |
185.8 | |
178.1 | ||||||||||
| Goodwill | |
1,361.0 | |
1,363.1 | ||||||||||
| Intangible assets, net | ||||||||||||||