Breaking News

Tweet TWEET

HanesBrands Initiates Regular Quarterly Dividend

  HanesBrands Initiates Regular Quarterly Dividend

Company Also Announces Preliminary Financial Results for the First Quarter
2013 and Reaffirms 2013 Guidance in Advance of Investor Meeting Webcast Today

Business Wire

WINSTON-SALEM, N.C. -- April 4, 2013

HanesBrands (NYSE: HBI), a leading marketer of everyday branded basic apparel,
today announced that its Board of Directors has initiated a quarterly dividend
as part of the company’s cash deployment strategy to drive additional
shareholder value.

The Board authorized the regular quarterly dividend of $0.20 per share to be
paid June 3, 2013, for stockholders of record at the close of business on May
20, 2013. The quarterly dividend is the first for Hanes since its spinoff as
an independent public company in 2006.

“Initiating a quarterly dividend is a substantial company milestone made
possible by strong strategic execution, successful debt reduction and
cash-flow generation, and margin-improvement prospects,” Hanes Chairman and
Chief Executive Officer Richard A. Noll said. “With our successful track
record and long-term outlook, the Board decided it was time to institute a
regular quarterly dividend.”

In conjunction with the dividend authorization disclosure and in advance of
today’s previously scheduled investor meeting, the company decided to announce
preliminary financial results for the first quarter ended March 30, 2013, and
reaffirm full-year guidance for net sales, operating profit, earnings per
diluted share and free cash flow.

The company expects to report first-quarter net sales of approximately $945
million; operating profit of $82 million to $85 million; and EPS of $0.48 to
$0.51. Hanes will release final first-quarter financial results at the close
of trading on the New York Stock Exchange Tuesday, April 23, 2013.

Net sales for the first quarter were hampered by a sluggish retail environment
as a result of delayed income tax returns and inclement weather compared with
an early spring a year ago. However, the quarter’s operating profit margin
will expand significantly, benefitting from the company’s Innovate-to-Elevate
margin-enhancement initiatives built on strong brands, a low-cost supply
chain, and innovation platforms.

For the full year, Hanes reaffirmed all of its 2013 guidance issued Feb. 5,
2013, including expectations for net sales of approximately $4.6 billion;
operating profit of $500 million to $550 million; EPS of $3.25 to $3.40; and
free cash flow of approximately $350 million to $450 million.

Investor Meeting Webcast Information

Later today, Hanes will provide a live webcast of its previously planned
investor meeting to review business strategies and goals for registered
participants in Las Vegas. The live Internet broadcast, which will include
audio and slides, will begin at 3 p.m. PDT (6 p.m. EDT) and is expected to
last up to approximately one hour. The live webcast and an archived replay may
be accessed from the home page or the investors section of the HanesBrands
corporate website, www.HanesBrands.com.

Note on Non-GAAP Terms and Definitions

Free cash flow is not a generally accepted accounting principle (GAAP)
measure. Free cash flow is defined as net cash from operating activities less
net capital expenditures. Free cash flow may not be representative of the
amount of residual cash flow that is available to the company for
discretionary expenditures since it may not include deductions for mandatory
debt-service requirements and other nondiscretionary expenditures. The company
believes, however, that free cash flow is a useful measure of the
cash-generating ability of the business relative to capital expenditures and
financial performance.

For 2013 guidance, net cash provided by operating activities is expected to be
approximately $400 million to $500 million and net capital expenditures are
expected to be approximately $50 million, resulting in expectations for
non-GAAP free cash flow of approximately $350 million to $450 million.

Cautionary Statement Concerning Forward-Looking Statements

Statements in this press release that are not statements of historical fact
are forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934,
including those regarding preliminary quarterly results as well as guidance as
to future performance. These and other forward-looking statements are made
only as of the date of this press release and are based on our current intent,
beliefs, plans and expectations. They involve risks and uncertainties that
could cause actual future results, performance or developments to differ
materially from those described in or implied by such forward-looking
statements. These risks and uncertainties include the following: current
economic conditions, including consumer spending levels and the price
elasticity of our products; the impact of significant fluctuations and
volatility in various input costs, such as cotton and oil-related materials,
utilities, freight and wages; the highly competitive and evolving nature of
the industry in which we compete; financial difficulties experienced by, or
loss of or reduction in sales to, any of our top customers or groups of
customers; our ability to successfully manage social, political, economic,
legal and other conditions affecting our domestic and foreign operations and
supply-chain sources, such as political instability and acts of war or
terrorism, natural disasters, disruption of markets, operational disruptions,
changes in import and export laws, currency restrictions and currency exchange
rate fluctuations; the impact of the loss of one or more of our suppliers of
finished goods or raw materials; our ability to effectively manage our
inventory and reduce inventory reserves; our ability to optimize our global
supply chain; our ability to continue to effectively distribute our products
through our distribution network; the risk of significant fluctuations in
foreign currency exchange rates; the impact of customers requiring products on
an exclusive basis or other forms of economic support; our ability to
accurately forecast demand for our products; increasing pressure on margins;
our ability to keep pace with changing consumer preferences; the impact of any
inadequacy, interruption or failure with respect to our information technology
or any data security breach; our ability to protect our reputation and brand
images; our ability to protect our trademarks, copyrights and patents; risks
associated with our indebtedness, such as our debt service requirements, the
financial ratios our debt instruments require us to maintain and restrictions
on our operating and financial flexibility; market returns on the plan assets
of our pension plans; the impact of a significant decline in the fair value of
the intangible assets and goodwill on our balance sheet; unanticipated changes
in our tax rates or exposure to additional income tax liabilities or a change
in our ability to realize deferred tax benefits; our ability to comply with
environmental and other laws and regulations; legal, regulatory, political and
economic risks associated with our operations in international markets; costs
and adverse publicity from violations of labor or environmental laws by us or
our suppliers; our ability to attract and retain key personnel; our ability to
integrate and grow acquisitions successfully; anti-takeover provisions our
charter and bylaws, as well as Maryland law and our stockholder rights
agreement; and other risks identified from time to time in our most recent
Securities and Exchange Commission reports, including our annual report on
Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K,
registration statements, press releases and other communications, as well as
in the investors section of our corporate website at
http://tiny.cc/HanesBrandsIR. Except as required by law, the company
undertakes no obligation to update or revise forward-looking statements to
reflect changed assumptions, the occurrence of unanticipated events or changes
to future operating results over time.

HanesBrands

HanesBrands is a socially responsible leading marketer of everyday basic
apparel under some of the world’s strongest apparel brands, including Hanes,
Champion, Playtex, Bali, JMS/Just My Size, barely there, Wonderbra and Gear
for Sports. The company sells T-shirts, bras, panties, men’s underwear,
children’s underwear, socks, hosiery, casualwear and activewear produced in
the company’s low-cost global supply chain. Ranked No. 512 on the Fortune 1000
list, Hanes has approximately 51,500 employees in more than 25 countries and
takes pride in its strong reputation for ethical business practices. Hanes is
a U.S. Environmental Protection Agency Energy Star 2013 and 2012 Sustained
Excellence Award winner and 2010 and 2011 Partner of the Year. The company
ranks No. 141 on Newsweek magazine’s list of Top 500 greenest U.S. companies.
More information about the company and its corporate social responsibility
initiatives, including environmental, social compliance and community
improvement achievements, may be found on the Hanes corporate website at
www.hanesbrands.com.

Contact:

HanesBrands
News Media:
Matt Hall, (336) 519-3386
or
Analysts and Investors:
Charlie Stack, (336) 519-4710
 
Press spacebar to pause and continue. Press esc to stop.