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The Jones Group Inc. Reports 2013 Third Quarter Financial Results



      The Jones Group Inc. Reports 2013 Third Quarter Financial Results

PR Newswire

NEW YORK, Oct. 30, 2013

NEW YORK, Oct. 30, 2013 /PRNewswire/ -- The Jones Group Inc. (NYSE: JNY; the
"Company") today reported results for the third quarter ended October 5,
2013.  Revenues for the third quarter of 2013 were $1,022 million, as compared
with $1,035 million for the third quarter of 2012.     

The Company reported adjusted earnings per share ("EPS") of $0.48 for the
third quarter of 2013, as compared with adjusted EPS of $0.57 for the same
period last year.  The adjusted results exclude charges such as those 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 earnings per share of $0.38 for the third quarter of 2013, as
compared with earnings per share of $0.22 for the same period in 2012.  The
2013 and the 2012 third quarter results include, among other things, costs and
charges of $12 million ($7 million after tax) and $35 million ($27 million
after tax), respectively, relating to the planned closure of certain
Company-operated retail stores, business development costs, restructuring and
other cost saving initiatives.  The 2012 period also included adjustments to
the future payment liabilities associated with the Stuart Weitzman
acquisition, charges related to lease liabilities of unused facilities and a
gain relating to the sale of the Sam and Libby trademark.    

Wesley R. Card, The Jones Group Chief Executive Officer, stated: "Third
quarter revenues were in line with our expectations, with the Jeanswear
segment again registering the largest improvement in operating results, as
those product lines continue to perform well.  The Domestic Retail,
International Wholesale and International Retail segments also showed improved
operating results, led by the Nine West Outlet and Stuart Weitzman domestic
retail businesses and the Jones New York businesses in Canada and Spain.   Our
new and refocused sportswear product offerings for Fall are performing
significantly better, and we anticipate that trend will continue."

The Company ended the quarter with $28 million in cash and used $93 million of
cash from operating activities during the first nine months of 2013, compared
with generating $13 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 operating earnings.  At October 5,
2013, the Company had $78 million 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 $28 million in
cash and $78 million drawn on our revolver, to meet seasonal working capital
needs.  Our approach to inventory commitments remains 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 well-positioned for the fourth
quarter and early 2014 as we continue to execute on our strategic plan. We
have received positive reactions from wholesale customers to our enhanced
products across our brands that will ship in the fourth quarter of 2013 and
Spring 2014.  We are confident that continued product improvement will
translate into improved retail performance and, ultimately, increased
profitability."

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
November 15, 2013, for payment on November 29, 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 November 7, 2013 and may be accessed by dialing 877-344-7529
(International 412-317-0088).  Enter account number 10035419.  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:

  o those associated with the effect of national, regional and international
    economic conditions;
  o lowered levels of consumer spending resulting from a general economic
    downturn or lower levels of consumer confidence;
  o the tightening of the credit markets and the Company's ability to obtain
    capital on satisfactory terms;
  o given the uncertain economic environment, the possible unwillingness of
    committed lenders to meet their obligations to lend to borrowers, in
    general;
  o the performance of the Company's products within the prevailing retail
    environment;
  o customer acceptance of both new designs and newly-introduced product
    lines;
  o the Company's reliance on a few department store groups for large portions
    of the Company's business;
  o the Company's ability to identify acquisition candidates and, in a
    competitive environment for such acquisitions, acquire such businesses on
    reasonable financial and other terms;
  o the integration of the organizations and operations of any acquired
    businesses into the Company's existing organization and operations;
  o consolidation of the Company's retail customers;
  o financial difficulties encountered by the Company's customers;
  o the effects of vigorous competition in the markets in which the Company
    operates;
  o the Company's ability to attract and retain qualified executives and other
    key personnel;
  o the Company's reliance on independent foreign manufacturers, including
    political instability in countries where contractors and suppliers are
    located;
  o changes 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;
  o the Company's ability to successfully implement new operational and
    financial information systems; 
  o the Company's ability to secure and protect trademarks and other
    intellectual property rights;
  o the effects of extreme or unseasonable weather conditions; and
  o the 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
                   THIRD QUARTER                      FISCAL NINE MONTHS
                   2013             2012              2013             2012
Net sales          $        99.0  % $        99.0  %  $        98.9  % $        98.8  %
                    1,011.0          1,024.6           2,843.8          2,792.3
Licensing income   10.7     1.0     10.5     1.0      31.6     1.1     33.0     1.2
Other revenues     -        -       0.3      0.0      0.6      0.0     0.9      0.0
Total revenues     1,021.7  100.0   1,035.4  100.0    2,876.0  100.0   2,826.2  100.0
Cost of goods      662.4    64.8    670.8    64.8     1,867.6  64.9    1,792.0  63.4
sold
Gross profit       359.3    35.2    364.6    35.2     1,008.4  35.1    1,034.2  36.6
SG&A expenses      296.5    29.0    301.9    29.2     917.9    31.9    909.6    32.2
Operating income   62.8     6.1     62.7     6.1      90.5     3.1     124.6    4.4
Net interest
expense and        (14.8)   (1.4)   (37.7)   (3.6)    (46.3)   (1.6)   (89.2)   (3.2)
financing costs
(1)
Equity in (loss)
income of          (0.9)    (0.1)   -        -        (0.8)    (0.0)   1.4      0.0
unconsolidated
affiliate
Income before
provision for      47.1     4.6     25.0     2.4      43.4     1.5     36.8     1.3
income taxes
Provision for      17.4     1.7     7.2      0.7      16.0     0.6     11.6     0.4
income taxes
Net income         29.7     2.9     17.8     1.7      27.4     1.0     25.2     0.9
Less: income
attributable to    0.4      0.0     0.4      0.0      1.0      0.0     0.9      0.0
noncontrolling
interest
Income             $                $                 $                $      
attributable to    29.3     2.9   % 17.4     1.7   %  26.4     0.9   % 24.3     0.9   %
Jones
Earnings per share
(2)
    Net income     $                $                 $                $      
                   29.7             17.8              27.4             25.2
    Less: income
    attributable
    to             0.4              0.4               1.0              0.9
    noncontrolling
    interest
    Income
    attributable   29.3             17.4              26.4             24.3
    to Jones
    Less: income
    allocated to   1.0              0.4               0.9              0.4
    participating
    securities
    Income
    available to   $                $                 $                $      
    common         28.3             17.0              25.5             23.9
    stockholders
    of Jones
Shares outstanding 74.1             75.4              74.4             76.1
- diluted
Earnings per       $                $                 $                $      
share  - diluted   0.38             0.22              0.34             0.31
Percentages may not add due to rounding.
          Refer to item "h" on the Reconciliation of Non-GAAP Measures to GAAP for
(1)       amounts 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
          share equally in dividend payments and earnings.

 

THE JONES GROUP INC.
Reconciliation of Non-GAAP Measures to GAAP
for the quarters and nine months ended October 5, 2013 and September 29, 2012
(UNAUDITED)
All amounts in millions, except    THIRD QUARTER        FISCAL NINE MONTHS
per share data
                                     2013      2012      2013        2012
Operating income                     $         $         $           $    
                                     62.8       62.7      90.5        124.6
Adjustments:
Items affecting segment income:
       Expenses related to retail    3.3       (0.1)     11.1        1.5
       store closure plan (a)
       Charges related to acquired   1.9       3.3       7.2         3.5
       businesses (b)
       Other business development    3.7       0.2       3.9         0.9
       costs (c)
       Present value adjustments
       to lease liabilities for      0.7       8.3       2.7         17.6
       properties not in use (d)
       Severance and other charges
       related to executive          -         -         1.0         5.9
       management changes (e)
       Gain on the sale of a         -         (3.1)     -           (3.1)
       trademark (f)
       Other restructuring
       expenses and certain other    2.0       1.7       10.3        15.1
       charges (g)
Total adjustments to operating       11.6      10.3      36.2        41.4
income
Adjusted operating income            $         $         $           $    
                                     74.4       73.0     126.7        166.0
Income attributable to Jones (as     $         $         $           $      
reported)                            29.3       17.4      26.4        24.3
Provision for income taxes           17.4      7.2       16.0        11.6
Adjustments to operating income,     11.6      10.3      36.2        41.4
from above
Adjustment of remaining
consideration payable related to
acquisition
       of Stuart Weitzman (h)        -         24.3      (0.4)       47.8
Write off of intangible assets
owned by unconsolidated affiliate    0.4       -         0.4         -
(i)
Adjusted income before provision     58.7      59.2      78.6        125.1
for income taxes
Adjusted provision for income        (21.9)    (15.1)    (29.4)      (39.7)
taxes
Adjusted income attributable to      36.8      44.1      49.2        85.4
Jones
Less: adjusted income allocated to   (1.2)     (1.2)     (1.6)       (2.1)
participating securities
Adjusted income available to         $         $         $           $      
common stockholders of Jones         35.6       42.9      47.6        83.3
Earnings per share - diluted (as     $         $         $           $      
reported)                            0.38       0.22      0.34        0.31
Provision for income taxes           0.23      0.09      0.21        0.15
Items affecting segment income:
       Expenses related to retail    0.04      -         0.15        0.02
       store closure plan (a)
       Charges related to acquired   0.02      0.05      0.09        0.05
       businesses (b)
       Other business development    0.05      -         0.05        0.01
       costs (c)
       Present value adjustments
       to lease liabilities for      0.01      0.11      0.04        0.23
       properties not in use (d)
       Severance and other charges
       related to executive          -         -         0.01        0.08
       management changes (e)
       Gain on the sale of a         -         (0.04)                (0.04)
       trademark (f)
       Other restructuring
       expenses and certain other    0.03      0.02      0.13        0.19
       charges (g)
Adjustment of remaining
consideration payable related to
acquisition
       of Stuart Weitzman (h)        -         0.31      (0.01)      0.61
Write off of intangible assets
owned by unconsolidated affiliate    0.01      -         0.01        -
(i)
Adjusted income before provision     0.77      0.76      1.02        1.61
for income taxes
Adjusted provision for income        (0.29)    (0.19)    (0.38)      (0.51)
taxes
Adjusted earnings per share -        $         $         $           $      
diluted                              0.48       0.57      0.64        1.10
Non-GAAP adjustments affecting
revenue by segment (j):
       Domestic wholesale            $         $         $           $        
       sportswear                         -                   -           -
                                                -
       Domestic wholesale            -         -         -           -
       jeanswear
       Domestic wholesale footwear   0.3       -         0.3         -
       and accessories (g)
       Domestic retail               -         -         -           -
       International wholesale       -         -         -           -
       International retail          -         -         -           -
       Licensing, other &            -         -         -           -
       eliminations
                                     $         $         $           $        
       Total                         0.3                  0.3             -
                                                -
Non-GAAP adjustments affecting
income by segment (j):
       Domestic wholesale            $         $         $           $        
       sportswear (b,e,g)            0.1          1.4     5.0         5.6
       Domestic wholesale            0.1       (0.6)     0.9         1.4
       jeanswear (d,e,g)
       Domestic wholesale footwear   1.4       9.6       4.5         22.4
       and accessories (d,e,g)
       Domestic retail (a,e,g)       3.3       -         11.4        4.5
       International wholesale       -         0.7       2.3         0.9
       (b,e,g)
       International retail (b,g)    1.6       1.5       4.7         4.6
       Licensing, other &            5.1       (2.3)     7.4         2.0
       eliminations (b,c,e,f,g)
       Total                         $         $         $           $      
                                     11.6       10.3      36.2        41.4
       2013 and 2012 include severance, fixed asset impairment and other
(a)    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 and Brian Atwood (2012 only). 
       2013 and 2012 include investment consulting fees, legal fees,
(c)    accounting 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.
(f)    2012 includes the gain on the sale of the Sam & Libby trademark.
       2013 and 2012 include severance, occupancy, and other costs related to
(g)    the restructuring of corporate and business support functions and other
       charges not considered by management to be part of ongoing operations. 
(h)    2013 and 2012 represent the fair value adjustment of the remaining
       consideration payable related to the acquisition of Stuart Weitzman.
(i)    2013 includes the write off of a discontinued trade name owned by an
       unconsolidated affiliate.
(j)    See "Segment Information" page for the presentation of GAAP and
       Adjusted amounts.
                                   THIRD QUARTER        FISCAL NINE MONTHS
                                     2013      2012      2013        2012
       GAAP gross profit             $         $         $           $
                                     359.3      364.6     1,008.4     1,034.2
       Other restructuring
       expenses and certain other    0.7       0.4       1.2         0.7
       charges (g)
       Adjusted gross profit         $         $         $           $
                                     360.0      365.0     1,009.6     1,034.9

 

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
October 5, 2013
     Revenues       $    186.9 $         $    289.9  $        $      88.4   $      94.8   $      10.7  $ 1,021.7
                                214.2                 136.8
     Segment income $          $         $      35.4 $        $      11.0   $        3.4  $        1.4 62.8
     (loss)          8.3        19.6                 (16.3)
     Segment margin 4.4%       9.2%      12.2%       (11.9%)  12.4%         3.6%                       6.1%
     Net interest                                                                                      (14.8)
     expense
     Equity in loss
     of                                                                                                (0.9)
     unconsolidated
     affiliate
     Income before
     provision for                                                                                     $      47.1
     income taxes
     Segment        $    186.9 $         $    289.9  $        $      88.4   $      94.8   $      10.7  $ 1,021.7
     revenues                   214.2                 136.8
     Adjustments
     affecting      -          -         0.3         -        -             -             -            0.3
     segment
     revenues (b)
     Adjusted                  $                     $  
     segment        $    186.9  214.2    $    290.2   136.8   $      88.4   $      94.8   $      10.7  $ 1,022.0
     revenues
     Segment income $          $         $      35.4 $        $      11.0   $        3.4  $        1.4 $      62.8
     (loss)          8.3        19.6                 (16.3)
     Adjustments
     affecting      0.1        0.1       1.4         3.3      -             1.6           5.1          11.6
     segment income
     (b)
     Adjusted       $          $                     $    
     segment income  8.4        19.7     $      36.8 (13.0)   $      11.0   $        5.0  $        6.5 $      74.4
     (loss)
     Adjusted       4.5%       9.2%      12.7%       (9.5%)   12.4%         5.3%                       7.3%
     segment margin
For the fiscal quarter ended
September 29, 2012
     Revenues       $    208.7 $         $    289.9  $        $      94.3   $      89.7   $      10.5  $ 1,035.4
                                202.3                 140.0
     Segment income $          $         $      29.3 $        $        9.4  $        2.3  $        9.0 62.7
     (loss)          12.9       15.3                 (15.5)
     Segment margin 6.2%       7.6%      10.1%       (11.1%)  10.0%         2.6%                       6.1%
     Net interest                                                                                      (37.7)
     expense (a)
     Income before
     provision for                                                                                     $      25.0
     income taxes
     Segment income $          $         $      29.3 $        $        9.4  $        2.3  $        9.0 $      62.7
     (loss)          12.9       15.3                 (15.5)
     Adjustments
     affecting      1.4        (0.6)     9.6         -        0.7           1.5           (2.3)        10.3
     segment income
     (b)
     Adjusted       $          $                     $    
     segment income  14.3       14.7     $      38.9 (15.5)   $      10.1   $        3.8  $        6.7 $      73.0
     (loss)
     Adjusted       6.9%       7.3%      13.4%       (11.1%)  10.7%         4.2%                       7.1%
     segment margin
(a)  Refer to item "h" 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 nine months
ended October 5, 2013
     Revenues       $    536.8 $         $    712.8  $        $    250.3    $    280.1    $       31.6 $ 2,876.0
                                653.4                 411.0
     Segment income $          $         $      57.8 $        $      27.4   $       (4.5) $     (11.1) 90.5
     (loss)          9.2        68.0                 (56.3)
     Segment margin 1.7%       10.4%     8.1%        (13.7%)  10.9%         (1.6%)                     3.1%
     Net interest                                                                                      (46.3)
     expense (a)
     Equity in loss
     of                                                                                                (0.8)
     unconsolidated
     affiliate
     Income before
     provision for                                                                                     $      43.4
     income taxes
     Segment        $    536.8 $         $    712.8  $        $    250.3    $    280.1    $       31.6 $ 2,876.0
     revenues                   653.4                 411.0
     Adjustments
     affecting      -          -         0.3         -        -             -             -            0.3
     segment
     revenues (b)
     Adjusted                  $                     $  
     segment        $    536.8  653.4    $    713.1   411.0   $    250.3    $    280.1    $       31.6 $ 2,876.3
     revenues
     Segment income $          $         $      57.8 $        $      27.4   $       (4.5) $     (11.1) $      90.5
     (loss)          9.2        68.0                 (56.3)
     Adjustments
     affecting      5.0        0.9       4.5         11.4     2.3           4.7           7.4          36.2
     segment income
     (b)
     Adjusted       $          $                     $                                    $      
     segment income  14.2       68.9     $      62.3 (44.9)   $      29.7   $        0.2  (3.7)        $    126.7
     (loss)
     Adjusted       2.6%       10.5%     8.7%        (10.9%)  11.9%         0.1%                       4.4%
     segment margin
For the fiscal nine months
ended September 29, 2012
     Revenues       $    617.1 $         $    711.2  $        $    243.1    $    264.9    $      33.1  $ 2,826.2
                                538.1                 418.7
     Segment income $          $         $      46.0 $        $     29.0    $        1.0  $        5.4 124.6
     (loss)          45.1       38.9                 (40.8)
     Segment margin 7.3%       7.2%      6.5%        (9.7%)   11.9%         0.4%                       4.4%
     Net interest                                                                                      (89.2)
     expense (a)
     Equity in
     income of                                                                                         1.4
     unconsolidated
     affiliate
     Income before
     provision for                                                                                     $      36.8
     income taxes
     Segment income $          $         $      46.0 $        $      29.0   $        1.0  $        5.4 $    124.6
     (loss)          45.1       38.9                 (40.8)
     Adjustments
     affecting      5.6        1.4       22.4        4.5      0.9           4.6           2.0          41.4
     segment income
     (b)
     Adjusted       $          $                     $    
     segment income  50.7       40.3     $      68.4 (36.3)   $      29.9   $        5.6  $        7.4 $    166.0
     (loss)
     Adjusted       8.2%       7.5%      9.6%        (8.7%)   12.3%         2.1%                       5.9%
     segment margin
(a)  Refer to item "h" 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
                                    October 5, 2013    September 29, 2012
ASSETS
Current assets:
  Cash and cash equivalents         $                  $                  
                                           27.8          234.1
  Accounts receivable               461.1              486.2
  Inventories                       568.8              523.7
  Prepaid income taxes              2.7                2.2
  Deferred taxes                    38.5               32.5
  Other current assets              53.8               42.4
  Total current assets              1,152.7            1,321.1
Property, plant and equipment, at
cost, less
    accumulated depreciation and    260.4              276.2
amortization
Goodwill                            215.1              262.5
Other intangibles, less accumulated 858.5              901.5
amortization
Other assets                        147.9              138.2
Total assets                        $                  $                
                                     2,634.6            2,899.5
LIABILITIES AND EQUITY
Current liabilities:
  Short-term borrowings             $                  $                  
                                           78.0                  -
  Current portion of long-term debt 2.2                2.1
and capital lease obligations
  Current portion of acquisition    2.4                230.2
consideration payable
  Accounts payable                  253.0              252.2
  Income taxes payable              4.2                17.5
  Accrued expenses and other        147.5              152.0
current liabilities
  Total current liabilities         487.3              654.0
Long-term debt and obligations      950.9              958.1
under capital leases
Deferred taxes                      67.2               66.5
Acquisition consideration payable   4.0                5.0
Other                               104.7              117.7
Total liabilities                   1,614.1            1,801.3
Redeemable noncontrolling interest  0.7                0.6
Equity                              1,019.8            1,097.6
Total liabilities and equity        $                  $                
                                     2,634.6            2,899.5

 

THE JONES GROUP INC.
CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
All amounts in millions                      Nine Months Ended
                                             October 5,     September 29,
                                             2013           2012
CASH FLOWS FROM OPERATING ACTIVITIES:
 Net income                                  $              $              
                                                     27.4         25.2
 Adjustments to reconcile net income to net
 cash (used in)
   provided by operating activities, net of
   acquisitions:
       Amortization of restricted stock      19.5           16.4
       Depreciation and other amortization   66.3           67.3
       Impairment losses                     6.9            0.4
       Adjustments to acquisition            -              44.0
       consideration payable
       Equity in loss (income) of            0.8            (1.4)
       unconsolidated affiliate
       Deferred taxes                        1.0            (16.7)
       Other items, net                      1.3            (3.2)
       Changes in operating assets and
       liabilities:
                Accounts receivable          (80.8)         (134.7)
                Inventories                  (81.4)         (28.5)
                Accounts payable             (5.0)          12.5
                Income taxes payable/prepaid 4.8            18.6
                taxes
                Acquisition consideration    (20.5)         (4.6)
                payable
                Other assets and             (32.8)         17.8
                liabilities, net
                Total adjustments            (119.9)        (12.1)
 Net cash (used in) provided by operating    (92.5)         13.1
 activities
CASH FLOWS FROM INVESTING ACTIVITIES:
 Capital expenditures                        (45.2)         (57.1)
 Notes receivable issued                     (7.1)          -
 Acquisition of additional equity interest   (14.7)         -
 in GRI
 Contingent consideration paid related to    -              (3.5)
 investment in GRI Group Limited
 Acquisition of Brian Atwood, net of cash    (0.5)          (4.4)
 acquired
 Other                                       0.1            4.9
 Net cash used in investing activities       (67.4)         (60.1)
CASH FLOWS FROM FINANCING ACTIVITIES:
 Net increase in short-term borrowings       78.0           -
 Issuance of 6.875% Senior Notes due 2019    -              103.5
 Debt issuance costs                         -              (2.3)
 Costs related to secured revolving credit   (0.3)          (0.3)
 agreement
 Dividends paid                              (11.6)         (11.7)
 Payments of acquisition consideration       (9.4)          (14.6)
 payable
 Repurchase of common shares                 (14.5)         (34.0)
 Other                                       (2.3)          0.2
 Net cash provided by financing activities   39.9           40.8
EFFECT OF EXCHANGE RATES ON CASH             (1.8)          1.5
NET DECREASE IN CASH AND CASH EQUIVALENTS    (121.8)        (4.7)
CASH AND CASH EQUIVALENTS, BEGINNING         149.6          238.8
CASH AND CASH EQUIVALENTS, ENDING            $              $              
                                                     27.8       234.1

 

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, or Media Contacts - Joele Frank and Sharon Stern,
Joele Frank, Wilkinson Brimmer Katcher, (212) 355-4449
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