The Jones Group Inc. Reports 2013 Second Quarter Financial Results

      The Jones Group Inc. Reports 2013 Second Quarter Financial Results  PR Newswire  NEW YORK, July 31, 2013  NEW YORK, July 31, 2013 /PRNewswire/ --The Jones Group Inc. (NYSE: JNY; the "Company") today reported results for the second quarter ended July 6, 2013. Revenues for the second quarter of 2013 were $846 million, as compared with $855 million for the second quarter of 2012.  The Company reported adjusted earnings per share ("EPS") of $0.02 for the second quarter of 2013, as compared with adjusted EPS of $0.22 for the same period last year. The adjusted results exclude charges related to the impairments of certain intangible assets, the impact of severance and other costs related to restructuring activities, certain acquisition-related costs and other costs not considered relevant for period-over-period comparisons (see reconciliation of adjusted earnings to reported earnings in the accompanying schedule).  As reported under generally accepted accounting principles ("GAAP"), the Company reported a ($0.05) loss per share in the second quarter in 2013 and earnings per share of $0.10 in 2012. The 2013 and the 2012 second quarter results include, among other things, costs and charges of $7 million ($5 million after tax) and $15 million ($9 million after tax), respectively, relating to the planned closure of certain Company-operated retail stores, restructuring and other cost saving initiatives.  Wesley R. Card, The Jones Group Chief Executive Officer, stated: "Second quarter revenues were in line with our expectations, with the Jeanswear segment registering the largest improvement in operating results, as those product lines continue to perform well. The International Wholesale segment also showed improved operating results, led by the Nine West and Stuart Weitzman international businesses. For other areas of the business, the weather impacted seasonal product sales, which generated higher promotional levels. As a result, second quarter gross margins were approximately 260 basis points below last year. We anticipate we will achieve improved performance in fall 2013 with our new and refocused sportswear product offerings."  The Company ended the quarter with $81 million in cash and generated cash from operating activities during the six months of $2 million, compared with $124 million in the prior year period. The current year results reflect a higher level of required investment in working capital, higher tax and interest payments and lower earnings. At July 6, 2013, the Company had no amounts drawn under its $650 million of committed revolving credit facilities.  John T. McClain, The Jones Group Chief Financial Officer, commented: "Our financial position remains strong. We ended the quarter with $81 million in cash and our revolver undrawn. Our approach to inventory commitments continues to be conservative, and we continue to emphasize tight expense control. Our plans to create operational efficiencies, reduce costs within the wholesale channel and improve the performance of our domestic retail business are on track. We believe these actions will enable us to maintain a strong balance sheet."  Mr. Card concluded: "We believe that we are better positioned for the second half of the year, as we continue to focus on enhancing profitability. We are approaching the Jones brand with strong conviction and have received very positive reactions from our customers to our refocused sportswear that will begin shipping in August. We are confident that this will translate into improved retail performance and ultimately increased profitability for the brand."  The Company's Board of Directors has declared a regular quarterly cash dividend of $0.05 per share to all common stockholders of record as of August 16, 2013, for payment on August 30, 2013.  The Company will host a conference call with management to discuss these results at 8:30 a.m. eastern time today, which is accessible by dialing 412-858-4600 or through a web cast at www.jonesgroupinc.com (under Investor Relations/Conference Schedule). The call will be recorded and made available through August 8, 2013 and may be accessed by dialing 877-344-7529 (International 412-317-0088). Enter account number 10031250. A slide presentation will accompany the prepared remarks and has been posted with the webcast on the Company's website.  Presentation of Information in the Press Release  Financial information discussed in this press release includes both GAAP and non-GAAP measures, which include or exclude certain items. These non-GAAP measures differ from reported results and are intended to illustrate what management believes are relevant period-over-period comparisons. A reconciliation of the GAAP measures presented to the comparable non-GAAP information appears in the financial tables section of this press release.  About The Jones Group Inc.  The Jones Group Inc. (www.jonesgroupinc.com) is a leading global designer, marketer and wholesaler of over 35 brands with product expertise in apparel, footwear, jeanswear, jewelry and handbags. The Jones Group has a reputation for innovation, excellence in product quality and value, operational execution and talent. The Company also markets directly to consumers through branded specialty retail and outlet stores, through concessions at upscale department stores and through its e-commerce sites.  The Company's internationally recognized brands and licensing agreements (L) include: Nine West, Jones New York, Anne Klein, Kurt Geiger, Rachel Roy (L), Robert Rodriguez, Robbi & Nikki, Stuart Weitzman, Brian Atwood (L), Boutique 9, Easy Spirit, Carvela, Gloria Vanderbilt, l.e.i., Bandolino, Enzo Angiolini, Nine & Co., GLO, Joan & David, Miss KG, Kasper, Energie, Evan-Picone, Le Suit, Mootsies Tootsies, Grane, Erika, Napier, Jessica Simpson (L), Givenchy (L), Judith Jack, Albert Nipon, Pappagallo and Rafe (L).  Forward Looking Statements  Certain statements contained herein are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements regarding the Company's expected financial position, business and financing plans are forward-looking statements. The words "believes," "expects," "plans," "intends," "anticipates" and similar expressions identify forward-looking statements. Forward-looking statements also include representations of the Company's expectations or beliefs concerning future events that involve risks and uncertainties, including:    othose associated with the effect of national, regional and international     economic conditions;   olowered levels of consumer spending resulting from a general economic     downturn or lower levels of consumer confidence;   othe tightening of the credit markets and the Company's ability to obtain     capital on satisfactory terms;   ogiven the uncertain economic environment, the possible unwillingness of     committed lenders to meet their obligations to lend to borrowers, in     general;   othe performance of the Company's products within the prevailing retail     environment;   ocustomer acceptance of both new designs and newly-introduced product     lines;   othe Company's reliance on a few department store groups for large portions     of the Company's business;   othe Company's ability to identify acquisition candidates and, in a     competitive environment for such acquisitions, acquire such businesses on     reasonable financial and other terms;   othe integration of the organizations and operations of any acquired     businesses into the Company's existing organization and operations;   oconsolidation of the Company's retail customers;   ofinancial difficulties encountered by the Company's customers;   othe effects of vigorous competition in the markets in which the Company     operates;   othe Company's ability to attract and retain qualified executives and other     key personnel;   othe Company's reliance on independent foreign manufacturers, including     political instability in countries where contractors and suppliers are     located;   ochanges in the costs of raw materials, labor, advertising and     transportation, including the impact such changes may have on the pricing     of the Company's products and the resulting impact on consumer acceptance     of the Company's products at higher price points;   othe Company's ability to successfully implement new operational and     financial information systems;   othe Company's ability to secure and protect trademarks and other     intellectual property rights;   othe effects of extreme or unseasonable weather conditions; and   othe Company's ability to implement its strategic initiatives to enhance     profitability.  A further description of these risks and uncertainties and other important factors that could cause actual results to differ materially from the Company's expectations can be found in the Company's Annual Report on Form 10-K for the year ended December 31, 2012, including, but not limited to, the Statement Regarding Forward-Looking Disclosure and Item 1A-Risk Factors therein, and in the Company's other filings with the Securities and Exchange Commission. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, such expectations may prove to be incorrect. The Company does not undertake to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.      THE JONES GROUP INC. CONSOLIDATED OPERATING RESULTS (UNAUDITED) All amounts in millions, except per share data                     SECOND QUARTER                 FISCAL SIX MONTHS                     2013            2012           2013             2012 Net sales           $     98.8  % $   98.8  %  $        98.8  % $        98.7  %                     835.2           844.3          1,832.8         1,767.7 Licensing income    10.2    1.2     10.2  1.2      20.9     1.1     22.5     1.3 Other revenues      0.2     0.0     0.3   0.0      0.6      0.0     0.5      0.0 Total revenues      845.6   100.0   854.8 100.0    1,854.3  100.0   1,790.7  100.0 Cost of goods sold  544.9   64.4    528.6 61.8     1,205.3  65.0    1,121.1  62.6 Gross profit        300.7   35.6    326.2 38.2     649.0    35.0    669.6    37.4 SG&A expenses       289.9   34.3    304.5 35.6     621.3    33.5    607.7    33.9 Operating income    10.8    1.3     21.7  2.5      27.7     1.5     61.9     3.5 Net interest expense and         (15.4)  (1.8)   (8.8) (1.0)    (31.5)   (1.7)   (51.5)   (2.9) financing costs (1) Equity in (loss) income of           (0.5)   (0.1)   0.4   0.0      0.1      0.0     1.3      0.1 unconsolidated affiliate (Loss) income before (benefit)    (5.1)   (0.6)   13.3  1.6      (3.7)    (0.2)   11.7     0.7 provision for income taxes (Benefit) provision for       (1.9)   (0.2)   4.9   0.6      (1.4)    (0.1)   4.3      0.2 income taxes Net (loss) income   (3.2)   (0.4)   8.4   1.0      (2.3)    (0.1)   7.4      0.4 Less: income attributable to     0.2     0.0     0.3   0.0      0.6      0.0     0.5      0.0 noncontrolling interest (Loss) income       $            $            $             $    attributable to     (3.4)  (0.4) %     0.9   %  (2.9)   (0.2) %  6.9   0.4   % Jones                               8.1 (Loss) earnings per share (2)     Net (loss)      $            $            $             $        income          (3.2)                       (2.3)            7.4                                     8.4     Less: income     attributable     to              0.2             0.3            0.6              0.5     noncontrolling     interest     (Loss) income     attributable    (3.4)           8.1            (2.9)            6.9     to Jones     Less: (loss)     income     allocated to    (0.1)           0.2            (0.2)            -     participating     securities     (Loss) income     available to    $            $            $             $        common          (3.3)                       (2.7)            6.9     stockholders                    7.9     of Jones Shares outstanding  73.1            76.0           73.2             77.5 - diluted (Loss) earnings     $             $            $              $    per share -        (0.05)                       (0.04)          0.09 diluted                             0.10 Percentages may not add due to rounding.     Refer to item "g" on the Reconciliation of Non-GAAP Measures to GAAP for amounts (1) impacting interest expense relating to adjustment of remaining consideration     payable related to acquisition of Stuart Weitzman.     Earnings per share is calculated under the "two-class method," where income is     allocated between common shares and participating securities (unvested (2) restricted shares held by employees that have a nonforfeitable right to     dividends). Both our common shares and participating securities shareequally     in dividend payments and earnings.        THE JONES GROUP INC. Reconciliation of Non-GAAP Measures to GAAP for the quarters and six months ended July 6, 2013 and June 30, 2012 (UNAUDITED) All amounts in millions, except    SECOND QUARTER          FISCAL SIX MONTHS per share data                                    2013         2012       2013        2012 Operating income                   $   10.8   $       $   27.7  $                                                    21.7                  61.9 Adjustments: Items affecting segment income:     Expenses related to retail     (0.6)        1.1        7.8         1.6     store closure plan (a)     Charges related to acquired    3.4          1.2        5.2         0.3     businesses (b)     Other business development     0.1          0.5        0.1         0.7     costs (c)     Present value adjustments to     lease liabilities for          1.8          9.3        2.0         9.3     properties not in use (d)     Severance and other charges     related to executive           1.0          2.2        1.0         5.9     management changes (e)     Other restructuring expenses     and certain other charges      1.5          4.4        8.5         13.3     (f) Total adjustments to operating     7.2          18.7       24.6        31.1 income Adjusted operating income          $   18.0   $       $   52.3  $                                                    40.4                  93.0 (Loss) income attributable to      $          $       $         $    Jones (as reported)                (3.4)        8.1     (2.9)       6.9 (Benefit) provision for income     (1.9)        4.9        (1.4)       4.3 taxes Adjustments to operating income,   7.2          18.7       24.6        31.1 from above Adjustment of remaining consideration payable related to acquisition     of Stuart Weitzman (g)         -            (4.2)      (0.4)       23.5 Adjusted income before provision   1.9          27.5       19.9        65.8 for income taxes Adjusted provision for income      (0.8)        (10.2)     (7.6)       (24.5) taxes Adjusted income attributable to    1.1          17.3       12.3        41.3 Jones Less: adjusted income allocated    -            (0.5)      (0.3)       (0.9) to participating securities Adjusted income available to       $         $       $   12.0  $    common stockholders of Jones       1.1          16.8                  40.4 (Loss) earnings per share -        $           $       $          $    diluted (as reported)              (0.05)      0.10      (0.04)     0.09 (Benefit) provision for income     (0.03)       0.06       (0.02)      0.05 taxes Items affecting segment income:     Expenses related to retail     (0.01)       0.01       0.10        0.02     store closure plan (a)     Charges related to acquired    0.05         0.01       0.07        -     businesses (b)     Other business development     -            0.01       -           0.01     costs (c)     Present value adjustments to     lease liabilities for          0.03         0.12       0.03        0.12     properties not in use (d)     Severance and other charges     related to executive           0.01         0.03       0.01        0.08     management changes (e)     Other restructuring expenses     and certain other charges      0.02         0.06       0.11        0.17     (f) Adjustment of remaining consideration payable related to acquisition     of Stuart Weitzman (g)         -            (0.05)     -           0.30 Adjusted income before provision   0.02         0.35       0.26        0.84 for income taxes Adjusted provision for income      (0.01)       (0.13)     (0.10)      (0.31) taxes Adjustment for using diluted       0.01         -          -           - share count (h) Adjusted earnings per share -      $   0.02   $       $   0.16  $    diluted                                         0.22                  0.53 Non-GAAP adjustments affecting income by segment (i):     Domestic wholesale             $         $       $        $        sportswear (b,e,f)             1.4           0.3     4.9          4.2     Domestic wholesale jeanswear   0.1          0.9        0.7         2.0     (d,e,f,g)     Domestic wholesale footwear    2.5          10.7       3.2         12.8     and accessories (e,f)     Domestic retail (a,e,f,g)      (0.6)        3.3        8.1         4.6     International wholesale        0.6          -          2.2         0.2     (e,f)     International retail (b,f)     1.5          1.5        3.1         3.1     Licensing, other &             1.7          2.0        2.4         4.2     eliminations (b,c,e,f)     Total                          $         $       $   24.6  $                                       7.2          18.7                  31.1 (a) 2013 and 2012 include severance, fixed asset impairment and other charges     and credits related to the closure of underperforming retail locations.     2013 and 2012 include the fair value adjustments of the contingent (b) consideration payable for the Robert Rodriguez acquisition and the     amortization of certain acquired intangible assets related to the     acquisition of Kurt Geiger.     2013 and 2012 include investment consulting fees, legal fees, accounting (c) fees and other items related to acquisitions and other business     development activities. (d) 2013 and 2012 include present value accruals and adjustments for     liabilities related to leases on properties currently not in use. (e) 2013 and 2012 include severance and restricted stock charges related to     executive management changes.     2013 and 2012 include severance, occupancy, and other costs related to the (f) restructuring of corporate and business support functions and other     charges not considered by management to be part of ongoing operations. (g) 2013 and 2012 represent the fair value adjustment of the remaining     consideration payable related to the acquisition of Stuart Weitzman.     In accordance with ASC 260 "Earnings Per Share," the calculation of     diluted shares for the purpose of generating GAAP EPS does not include any     antidilutive items (such as restricted stock) that would result in a lower (h) loss per share. Since the non-GAAP adjustments would result in adjusted     net income, these items become dilutive to EPS. This adjustment     represents the impact of including these dilutive items in the calculation     of diluted shares used to determine adjusted EPS. (i) See "Segment Information" page for the presentation of GAAP and Adjusted     amounts.                                    SECOND QUARTER          FISCAL SIX MONTHS                                    2013         2012       2013        2012     GAAP gross profit              $  300.7    $        $  649.0   $                                                   326.2                 669.6     Other restructuring expenses     and certain other charges      0.1          -          0.6         0.3     (f)     Adjusted gross profit          $  300.8    $        $  649.6   $                                                   326.2                 669.9        THE JONES GROUP INC. SEGMENT INFORMATION (UNAUDITED) Dollars in millions                      Domestic                     Domestic   Domestic  Wholesale                                        Licensing,                     Wholesale  Wholesale Footwear &  Domestic International International Other &                     Sportswear Jeanswear Accessories Retail   Wholesale     Retail        Eliminations Consolidated For the fiscal quarter ended July 6, 2013      Revenues       $      $     $       $     $        $         $       $                         133.3     182.6    181.6       148.1 88.7         101.1        10.2        845.6      Segment (loss) $      $     $      $     $        $       $           income           (9.4)   14.2    0.5            10.9         0.2           (0.7)      10.8                                                      (4.9)      Segment margin (7.1%)     7.8%      0.3%        (3.3%)   12.3%         0.2%                       1.3%      Net interest                                                                                      (15.4)      expense      Equity in loss      of                                                                                                (0.5)      unconsolidated      affiliate      Loss before                                                                                       $           benefit for                                                                                        (5.1)      income taxes      Segment (loss) $      $     $      $     $        $       $       $           income           (9.4)   14.2    0.5            10.9         0.2           (0.7)      10.8                                                      (4.9)      Adjustments      affecting      1.4        0.1       2.5         (0.6)    0.6           1.5           1.7          7.2      segment income      (b)      Adjusted       $      $     $      $     $        $       $       $           segment (loss)   (8.0)   14.3    3.0            11.5         1.7           1.0       18.0      income                                          (5.5)      Adjusted       (6.0%)     7.8%      1.7%        (3.7%)   13.0%         1.7%                       2.1%      segment margin For the fiscal quarter ended June 30, 2012      Revenues       $      $     $       $     $        $        $       $                         174.8     151.0    195.5       150.6 75.4         97.3         10.2        854.8      Segment income $      $     $      $     $       $       $           (loss)           8.9     7.0   (1.6)           9.7          3.7           (3.0)      21.7                                                      (3.0)      Segment margin 5.1%       4.6%      (0.8%)      (2.0%)   12.9%         3.8%                       2.5%      Net interest                                                                                      (8.8)      expense (a)      Equity in      income of                                                                                         0.4      unconsolidated      affiliate      Income before                                                                                     $           provision for                                                                                     13.3      income taxes      Segment income $      $     $      $     $       $       $       $           (loss)           8.9     7.0   (1.6)           9.7          3.7           (3.0)      21.7                                                      (3.0)      Adjustments      affecting      0.3        0.9       10.7        3.3      -             1.5           2.0          18.7      segment income      (b)      Adjusted       $      $     $      $     $       $       $       $           segment income   9.2     7.9   9.1            9.7          5.2           (1.0)      40.4                                                      0.3      Adjusted       5.3%       5.2%      4.7%        0.2%     12.9%         5.3%                       4.7%      segment margin (a) Refer to item "g" on the Reconciliation of Non-GAAP Measures to GAAP for amounts impacting interest expense      relating to adjustment of remaining consideration payable related to acquisition of Stuart Weitzman. (b) See "Reconciliation of Non-GAAP Measures to GAAP" page.        THE JONES GROUP INC. SEGMENT INFORMATION (UNAUDITED) Dollars in millions                      Domestic                     Domestic   Domestic  Wholesale                                        Licensing,                     Wholesale  Wholesale Footwear &  Domestic International International Other &                     Sportswear Jeanswear Accessories Retail   Wholesale     Retail        Eliminations Consolidated For the fiscal six months ended July 6, 2013      Revenues       $      $     $       $     $         $         $       $                        349.9     439.1    422.9       274.2 162.0        185.3        20.9        1,854.3      Segment income $      $     $      $     $        $       $           (loss)           0.8    48.5   22.4              16.5         (8.0)         (12.5)       27.7                                                      (40.0)      Segment margin 0.2%       11.0%     5.3%        (14.6%)  10.2%         (4.3%)                     1.5%      Net interest                                                                                      (31.5)      expense (a)      Equity in      income of                                                                                         0.1      unconsolidated      affiliate      Loss before                                                                                       $           benefit for                                                                                        (3.7)      income taxes      Segment income $      $     $      $     $        $       $       $           (loss)           0.8    48.5   22.4              16.5         (8.0)         (12.5)       27.7                                                      (40.0)      Adjustments      affecting      4.9        0.7       3.2         8.1      2.2           3.1           2.4          24.6      segment income      (b)      Adjusted       $      $     $      $     $        $       $       $           segment income   5.7    49.2   25.6              18.7         (4.9)         (10.1)       52.3      (loss)                                          (31.9)      Adjusted       1.6%       11.2%     6.1%        (11.6%)  11.5%         (2.6%)                     2.8%      segment margin For the fiscal six months ended June 30, 2012      Revenues       $      $     $       $     $         $         $       $                        408.4     335.8    421.3       278.7 148.8        175.2        22.5        1,790.7      Segment income $      $     $      $     $        $       $           (loss)          32.2     23.6   16.7              19.6         (1.3)          (3.5)      61.9                                                      (25.4)      Segment margin 7.9%       7.0%      4.0%        (9.1%)   13.2%         (0.7%)                     3.5%      Net interest                                                                                      (51.5)      expense (a)      Equity in      income of                                                                                         1.3      unconsolidated      affiliate      Income before                                                                                     $           provision for                                                                                     11.7      income taxes      Segment income $      $     $      $     $        $       $       $           (loss)          32.2     23.6   16.7              19.6         (1.3)          (3.5)      61.9                                                      (25.4)      Adjustments      affecting      4.2        2.0       12.8        4.6      0.2           3.1           4.2          31.1      segment income      (b)      Adjusted       $      $     $      $     $        $       $       $           segment income  36.4     25.6   29.5              19.8         1.8           0.7       93.0      (loss)                                          (20.8)      Adjusted       8.9%       7.6%      7.0%        (7.5%)   13.3%         1.0%                       5.2%      segment margin (a) Refer to item "g" on the Reconciliation of Non-GAAP Measures to GAAP for amounts impacting interest expense      relating to adjustment of remaining consideration payable related to acquisition of Stuart Weitzman. (b) See "Reconciliation of Non-GAAP Measures to GAAP" page.        THE JONES GROUP INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) All amounts in millions                                     July 6, 2013         June 30, 2012 ASSETS Current assets:  Cash and cash equivalents         $           $                                               81.0              277.1  Accounts receivable               312.3                327.2  Inventories                       540.6                467.5  Deferred taxes                    31.5                 27.7  Other current assets              63.6                 60.5  Total current assets              1,029.0              1,160.0 Property, plant and equipment, at cost, less  accumulated depreciation and    260.0                271.4 amortization Goodwill                            211.6                256.3 Other intangibles, less             847.7                891.8 accumulated amortization Other assets                        135.9                129.4 Total assets                        $            $                                             2,484.2             2,708.9 LIABILITIES AND EQUITY Current liabilities:  Current portion of long-term      $           $         debt and capital lease obligations     2.2               2.1  Current portion of acquisition    2.3                  216.7 consideration payable  Accounts payable                  249.6                232.7  Accrued expenses and other        128.9                139.7 current liabilities  Total current liabilities         383.0                591.2 Long-term debt and obligations      950.1                856.5 under capital leases Deferred taxes                      59.7                 69.6 Acquisition consideration payable   4.4                  4.8 Other                               110.9                112.9 Total liabilities                   1,508.1              1,635.0 Redeemable noncontrolling interest  0.6                  - Equity                              975.5                1,073.9 Total liabilities and equity        $            $                                             2,484.2             2,708.9        THE JONES GROUP INC. CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) All amounts in millions                         Six Months Ended                                                 July 6, 2013     June 30, 2012 CASH FLOWS FROM OPERATING ACTIVITIES:  Net (loss) income                              $         $                                                          (2.3)          7.4  Adjustments to reconcile net (loss) income to  net cash   provided by operating activities, net of  acquisitions:   Amortization of employee stock options    14.6             13.3  and restricted stock   Depreciation and other amortization       43.1             44.5   Impairment losses                         6.8              0.4   Adjustments to acquisition consideration  0.3              19.4  payable   Equity in income of unconsolidated        (0.1)            (1.3)  affiliate   Deferred taxes                            2.9              (7.4)   Other items, net                          10.2             3.8   Changes in operating assets and  liabilities:   Accounts receivable                       65.3             22.2   Inventories                               (60.0)           24.1   Accounts payable                       (5.6)            (3.8)   Income taxes payable/prepaid taxes     (11.0)           6.7   Acquisition consideration payable      (20.5)           (0.8)   Other assets and liabilities, net      (41.9)           (4.5)   Total adjustments                      4.1              116.6  Net cash provided by operating activities      1.8              124.0 CASH FLOWS FROM INVESTING ACTIVITIES:  Capital expenditures                           (29.3)           (38.2)  Notes receivable issued                        (6.5)            -  Payments related to acquisition of Brian       (0.5)            -  Atwood  Contingent consideration paid related to       -                (3.5)  investment in GRI Group Limited  Other                                          0.4              (0.1)  Net cash used in investing activities          (35.9)           (41.8) CASH FLOWS FROM FINANCING ACTIVITIES:  Costs related to secured revolving credit      (0.3)            (0.3)  agreement  Dividends paid                                 (7.8)            (7.9)  Payments of acquisition consideration payable  (9.4)            (7.5)  Repurchase of common shares                    (14.5)           (29.0)  Other                                          (1.5)            1.0  Net cash used in financing activities          (33.5)           (43.7) EFFECT OF EXCHANGE RATES ON CASH                (1.0)            (0.2) NET (DECREASE) INCREASE IN CASH AND CASH        (68.6)           38.3 EQUIVALENTS CASH AND CASH EQUIVALENTS, BEGINNING            149.6            238.8 CASH AND CASH EQUIVALENTS, ENDING               $         $                                                          81.0          277.1    SOURCE The Jones Group Inc.  Website: http://www.jonesgroupinc.com Contact: Investor Contact: John T. McClain, Chief Financial Officer, The Jones Group, (212) 703-9189; Media Contacts: Joele Frank and Sharon Stern, Joele Frank, Wilkinson Brimmer Katcher, (212) 355-4449