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Effective Date | Notational Amount | LIBOR Rate | Maturity Date | |||||
Interest Rate Swap | 9/1/2011 | $10 million | 0.7650 | % | 9/1/2013 | |||
Interest Rate Swap | 9/1/2011 | $10 million | 0.9025 | % | 3/1/2014 | |||
Interest Rate Swap | 9/1/2011 | $10 million | 1.0700 | % | 9/1/2014 |
|
|
June 29, 2013 | June 30, 2012 | ||||||
Raw materials | $ | 12,443 | $ | 11,759 | |||
Work in process | 16,407 | 18,986 | |||||
Finished goods | 130,664 | 130,888 | |||||
$ | 159,514 | $ | 161,633 |
|
Estimated Useful Life | June 29, 2013 | June 30, 2012 | |||||||
Land and land improvements | 25 years | $ | 993 | $ | 993 | ||||
Buildings | 20 years | 7,882 | 7,893 | ||||||
Machinery and equipment | 10 years | 69,094 | 65,404 | ||||||
Computers and software | 3-10 years | 20,386 | 19,256 | ||||||
Furniture and fixtures | 7 years | 5,290 | 4,973 | ||||||
Leasehold improvements | 3-10 years | 2,335 | 2,626 | ||||||
Automobiles | 5 years | 797 | 752 | ||||||
Construction in progress | N/A | 2,430 | 2,053 | ||||||
109,207 | 103,950 | ||||||||
Less accumulated depreciation and amortization | (69,761 | ) | (64,525 | ) | |||||
$ | 39,446 | $ | 39,425 |
|
June 29, 2013 | June 30, 2012 | ||||||||||||||||||||
Cost | Accumulated Amortization | Net Value | Cost | Accumulated Amortization | Net Value | Economic Life | |||||||||||||||
Goodwill | $ | 16,812 | $ | — | $ | 16,812 | $ | 16,812 | $ | — | $ | 16,812 | N/A | ||||||||
Intangibles: | |||||||||||||||||||||
Tradename/trademarks | $ | 1,530 | $ | (603 | ) | $ | 927 | $ | 1,530 | $ | (526 | ) | $ | 1,004 | 20 yrs | ||||||
Customer relationships | 7,220 | (2,847 | ) | 4,373 | 7,220 | (2,486 | ) | 4,734 | 20 yrs | ||||||||||||
Technology | 1,220 | (428 | ) | 792 | 1,220 | (307 | ) | 913 | 10 yrs | ||||||||||||
Non-compete agreements | 517 | (419 | ) | 98 | 517 | (371 | ) | 146 | 4 – 8.5 yrs | ||||||||||||
Total intangibles | $ | 10,487 | $ | (4,297 | ) | $ | 6,190 | $ | 10,487 | $ | (3,690 | ) | $ | 6,797 |
|
June 29, 2013 | June 30, 2012 | ||||||
Accrued employee compensation and benefits | $ | 9,762 | $ | 7,645 | |||
Taxes accrued and withheld | 1,199 | 1,133 | |||||
Accrued insurance | 568 | 889 | |||||
Accrued advertising | 363 | 626 | |||||
Accrued royalties | 3,001 | 2,868 | |||||
Accrued commissions | 677 | 725 | |||||
Derivative liability | 49 | — | |||||
Other | 2,807 | 2,722 | |||||
$ | 18,426 | $ | 16,608 |
|
June 29, 2013 | June 30, 2012 | ||||||
Revolving U.S. credit facility, interest at base rate or adjusted LIBOR rate plus an applicable margin (interest at 2.6% on June 29, 2013) due May 2016 | $ | 88,753 | $ | 103,965 | |||
Revolving credit facility with Banco Ficohsa, a Honduran bank, interest at 7% due March 2019 (denominated in U.S. dollars) | 5,000 | 5,000 | |||||
Term loan with Banco Ficohsa, a Honduran bank, interest at 7%, interest only payments thru March 2012, principal payments began April 2012, payable monthly with a seven-year term (denominated in U.S. dollars) | 4,539 | 5,513 | |||||
98,292 | 114,478 | ||||||
Less current installments | (3,529 | ) | (3,529 | ) | |||
Long-term debt, excluding current installments | $ | 94,763 | $ | 110,949 |
Fiscal Year | Amount | ||
2014 | $ | 3,529 | |
2015 | 3,529 | ||
2016 | 84,614 | ||
2017 | 973 | ||
2018 | 5,647 | ||
$ | 98,292 |
|
Year ended | |||||||||||
June 29, 2013 | June 30, 2012 | July 2, 2011 | |||||||||
Current: | |||||||||||
Federal | $ | 40 | $ | (6,795 | ) | $ | 3,936 | ||||
State | 35 | — | 315 | ||||||||
Foreign | 145 | 157 | 167 | ||||||||
Total current | $ | 220 | $ | (6,638 | ) | $ | 4,418 | ||||
Deferred: | |||||||||||
Federal | $ | 499 | $ | (284 | ) | $ | 562 | ||||
State | 3 | (985 | ) | 373 | |||||||
Total deferred | 502 | (1,269 | ) | 935 | |||||||
Provision for (benefit from) income taxes | $ | 722 | $ | (7,907 | ) | $ | 5,353 |
Year ended | |||||||||||
June 29, 2013 | June 30, 2012 | July 2, 2011 | |||||||||
United States | $ | 1,468 | $ | (21,660 | ) | $ | 12,814 | ||||
Foreign | 8,438 | 11,306 | 9,866 | ||||||||
$ | 9,906 | $ | (10,354 | ) | $ | 22,680 |
Year ended | |||||||||||
June 29, 2013 | June 30, 2012 | July 2, 2011 | |||||||||
Income tax expense at the statutory rate | $ | 3,371 | $ | (3,520 | ) | $ | 7,712 | ||||
State income tax expense, net of federal income tax effect | (11 | ) | (975 | ) | 561 | ||||||
Rate difference and nondeductible items in foreign jurisdictions | (16 | ) | (47 | ) | (20 | ) | |||||
Impact of foreign earnings in tax-free zone | (2,754 | ) | (3,683 | ) | (3,223 | ) | |||||
Valuation allowance adjustments | 75 | 14 | — | ||||||||
Nondeductible compensation | — | 193 | 157 | ||||||||
Nondeductible amortization and other permanent differences | 100 | 91 | 86 | ||||||||
Other | (43 | ) | 20 | 80 | |||||||
Provision for (benefit from) income taxes | $ | 722 | $ | (7,907 | ) | $ | 5,353 |
June 29, 2013 | June 30, 2012 | ||||||
Deferred tax assets: | |||||||
State net operating loss carryforwards | $ | 1,416 | $ | 1,406 | |||
Charitable donation carryforward | 50 | 373 | |||||
Derivative — interest rate contracts | 51 | 81 | |||||
Alternative minimum tax credit carryforward | 49 | — | |||||
Currently nondeductible accruals | 6,665 | 5,555 | |||||
Gross deferred tax assets | 8,231 | 7,415 | |||||
Less valuation allowance — state net operating loss | (197 | ) | (122 | ) | |||
Net deferred tax assets | 8,034 | 7,293 | |||||
Deferred tax liabilities: | |||||||
Depreciation | (3,164 | ) | (2,704 | ) | |||
Goodwill and intangibles | (3,762 | ) | (3,319 | ) | |||
Other | (123 | ) | (109 | ) | |||
Gross deferred tax liabilities | (7,049 | ) | (6,132 | ) | |||
Net deferred tax asset | 985 | 1,161 | |||||
Less non-current net deferred tax liabilities | 3,571 | 3,803 | |||||
Current deferred tax asset | $ | 4,556 | $ | 4,964 |
|
Fiscal Year | Amount | ||
2014 | $ | 8,353 | |
2015 | 7,470 | ||
2016 | 5,180 | ||
2017 | 2,654 | ||
2018 | 294 | ||
Thereafter | — | ||
$ | 23,951 |
|
June 29, 2013 | June 30, 2012 | ||||||
Balance at beginning of year | $ | 526 | $ | 580 | |||
Interest expense | 6 | 6 | |||||
Benefits paid | (62 | ) | (61 | ) | |||
Actuarial adjustment | 1 | 1 | |||||
Balance at end of year | $ | 471 | $ | 526 |
|
Fiscal Year 2013 | Fiscal Year 2012 | Fiscal Year 2011 | |||||||||||||||
Shares | Weighted Average Exercise Price | Shares | Weighted Average Exercise Price | Shares | Weighted Average Exercise Price | ||||||||||||
Stock options outstanding, beginning of fiscal year | 50,000 | $ | 13.47 | 50,000 | $ | 13.47 | — | — | |||||||||
Stock options granted | — | — | — | — | 50,000 | $ | 13.47 | ||||||||||
Stock options exercised | — | — | — | — | — | — | |||||||||||
Stock options forfeited | — | — | — | — | — | — | |||||||||||
Stock options outstanding, end of fiscal year | 50,000 | $ | 13.47 | 50,000 | $ | 13.47 | 50,000 | $ | 13.47 | ||||||||
Stock options outstanding and exercisable, end of fiscal year | 50,000 | $ | 13.47 | 50,000 | $ | 13.47 | 25,000 | $ | 13.47 |
2011 | |||||||
Risk-free interest rate | 2 | % | |||||
Expected life | 4.0 yrs | ||||||
Expected volatility | 63 | % | |||||
Expected dividend yield | — | % | |||||
Weighted-average per share fair value of options granted | $ | 6.25 |
Date of Option Grant | Number of Options Outstanding and Exercisable | Exercise Price | Grant-Date Fair Value | Expiration Date | |||||
February 2, 2011 | 25,000 | $ | 13.86 | $ | 6.15 | February 18, 2018 | |||
February 2, 2011 | 25,000 | $ | 13.07 | $ | 6.35 | February 18, 2018 | |||
50,000 |
Fiscal Year 2013 | Fiscal Year 2012 | Fiscal Year 2011 | ||||||||||||||
Number of Units | Weighted average grant date fair value | Number of Units | Weighted average grant date fair value | Number of Units | Weighted average grant date fair value | |||||||||||
Units outstanding, beginning of fiscal year | 337,700 | $ | 16.05 | — | — | — | — | |||||||||
Units granted | 10,000 | $ | 13.66 | 390,900 | $ | 16.04 | — | — | ||||||||
Units forfeited | (122,830 | ) | $ | 17.10 | (53,200 | ) | $ | (16.00 | ) | — | — | |||||
Units outstanding, end of fiscal year | 224,870 | $ | 15.37 | 337,700 | $ | 16.05 | — | — |
Restricted Stock Units/Performance Units | Number of Units | Average Market Price on Date of Grant | Vesting Date | |||
Fiscal year 2012 Restricted Stock Units | 76,350 | $ | 17.60 | August 2013 | ||
Fiscal year 2012 Performance Units | 39,520 | $ | 14.25 | August 2013 | ||
Fiscal year 2012 Performance Units | 52,000 | $ | 14.25 | August 2014 | ||
Fiscal year 2012 Performance Units | 52,000 | $ | 14.25 | August 2015 | ||
Fiscal year 2013 Restricted Stock Units | 5,000 | $ | 13.66 | August 2013 | ||
224,870 |
Fiscal Year 2013 | Fiscal Year 2012 | Fiscal Year 2011 | |||||||||||||||
Shares | Weighted Average Exercise Price | Shares | Weighted Average Exercise Price | Shares | Weighted Average Exercise Price | ||||||||||||
Stock options outstanding, beginning of fiscal year | 799,834 | $ | 12.22 | 851,167 | $ | 12.16 | 1,024,500 | 11.89 | |||||||||
Stock options exercised | (139,334 | ) | 11.14 | (25,333 | ) | 8.11 | (118,667 | ) | 11.64 | ||||||||
Stock options forfeited | (60,000 | ) | 15.91 | (26,000 | ) | 14.48 | (54,666 | ) | 8.16 | ||||||||
Stock options outstanding, end of fiscal year | 600,500 | $ | 12.09 | 799,834 | $ | 12.22 | 851,167 | $ | 12.16 | ||||||||
Stock options outstanding and exercisable, end of fiscal year | 600,500 | $ | 12.09 | 799,834 | $ | 12.22 | 777,168 | $ | 12.55 |
Date of Option Grant | Number of Options Outstanding and Exercisable | Exercise Price | Grant-Date Fair Value | Expiration Date | |||||
June 28, 2004 | 82,500 | $ | 11.28 | $ | 4.23 | June 28, 2014 | |||
July 4, 2005 | 358,000 | $ | 13.35 | $ | 5.18 | July 4, 2015 | |||
July 27, 2006 | 30,000 | $ | 17.24 | $ | 6.20 | July 27, 2016 | |||
February 8, 2008 | 120,000 | $ | 8.30 | $ | 2.95 | February 8, 2018 | |||
March 16, 2009 | 10,000 | $ | 4.01 | $ | 2.00 | February 18, 2018 | |||
600,500 |
|
Basics | Branded | Consolidated | |||||||||
Fiscal Year 2013: | |||||||||||
Net sales | $ | 270,876 | $ | 219,647 | $ | 490,523 | |||||
Segment operating income (loss) | 15,771 | (1,868 | ) | 13,903 | |||||||
Segment assets ** | 161,716 | 150,194 | 311,910 | ||||||||
Equity investment in joint venture | 2,909 | — | 2,909 | ||||||||
Purchases of property and equipment | 3,477 | 4,445 | 7,922 | ||||||||
Depreciation and amortization | 5,149 | 2,866 | 8,015 | ||||||||
Fiscal Year 2012: | |||||||||||
Net sales | $ | 254,718 | $ | 235,205 | $ | 489,923 | |||||
Segment operating (loss) income | (12,484 | ) | 6,262 | (6,222 | ) | ||||||
Segment assets ** | 168,492 | 151,902 | 320,394 | ||||||||
Equity investment in joint venture | 2,818 | — | 2,818 | ||||||||
Purchases of property and equipment | 3,828 | 2,798 | 6,626 | ||||||||
Depreciation and amortization | 5,547 | 1,945 | 7,492 | ||||||||
Fiscal Year 2011: | |||||||||||
Net sales | $ | 253,494 | $ | 221,742 | $ | 475,236 | |||||
Gain on contingent consideration, net of impairment charges * | — | 918 | 918 | ||||||||
Segment operating income | 16,889 | 8,407 | 25,296 | ||||||||
Segment assets ** | 162,932 | 148,933 | 311,865 | ||||||||
Equity investment in joint venture | 2,664 | — | 2,664 | ||||||||
Purchases of property and equipment | 4,164 | 3,802 | 7,966 | ||||||||
Depreciation and amortization | 4,912 | 2,345 | 7,257 |
* | See Note 2(m) for further information regarding the remeasurement of contingent consideration and impairment testing of goodwill and intangibles. |
** | All goodwill and intangibles on our balance sheet is included in the branded segment. |
Year Ended | |||||||||||
June 29, 2013 | June 30, 2012 | July 2, 2011 | |||||||||
Segment operating income (loss) | $ | 13,903 | $ | (6,222 | ) | $ | 25,296 | ||||
Unallocated interest expense | 3,997 | 4,132 | 2,616 | ||||||||
Consolidated income (loss) before provision for (benefit from) income taxes | $ | 9,906 | $ | (10,354 | ) | $ | 22,680 |
Year Ended | |||||||||||
June 29, 2013 | June 30, 2012 | July 2, 2011 | |||||||||
United States | $ | 480,981 | $ | 484,419 | $ | 470,909 | |||||
Foreign | 9,542 | 5,504 | 4,327 | ||||||||
Total net sales | $ | 490,523 | $ | 489,923 | $ | 475,236 |
June 29, 2013 | June 30, 2012 | ||||||
United States | $ | 23,011 | $ | 22,146 | |||
Honduras | 12,144 | 13,220 | |||||
El Salvador | 3,163 | 2,979 | |||||
Mexico | 1,128 | 1,080 | |||||
All foreign countries | 16,435 | 17,279 | |||||
Total long-lived assets, excluding goodwill and intangibles | $ | 39,446 | $ | 39,425 |
|
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans | Dollar Value of Shares that May Yet Be Purchased Under the Plans | ||||||||
March 31 to May 5, 2013 | 29,470 | $14.41 | 29,470 | $10.8 | million | |||||||
May 6 to June 1, 2013 | 89,582 | $14.05 | 89,582 | $9.6 | million | |||||||
June 2 to June 29, 2013 | 109,302 | $14.73 | 109,302 | $8.0 | million | |||||||
Total | 228,354 | $14.42 | 228,354 | $8.0 | million* |
|
Yarn | $ | 14,408 | |
Natural Gas | 1,507 | ||
Finished fabric | 1,445 | ||
Finished products | 26,256 | ||
$ | 43,616 |
Effective Date | Notational Amount | LIBOR Rate | Maturity Date | |||||
Interest Rate Swap | 9/1/2011 | $10 million | 0.7650 | % | 9/1/2013 | |||
Interest Rate Swap | 9/1/2011 | $10 million | 0.9025 | % | 3/1/2014 | |||
Interest Rate Swap | 9/1/2011 | $10 million | 1.0700 | % | 9/1/2014 |
◦ | Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities. |
◦ | Level 2 – Inputs other than quoted prices that are observable for assets and liabilities, either directly or indirectly. These inputs include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in market that are less active. |
◦ | Level 3 – Unobservable inputs that are supported by little or no market activity for assets or liabilities and includes certain pricing models, discounted cash flow methodologies and similar techniques. |
Fair Value Measurements Using | |||||||||||||
Period Ended | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||
Interest Rate Swap | |||||||||||||
June 29, 2013 | $ | 133 | — | $ | 133 | — | |||||||
June 30, 2012 | $ | 209 | — | $ | 209 | — | |||||||
July 2, 2011 | $ | 22 | — | $ | 22 | — | |||||||
Contingent Consideration | |||||||||||||
June 29, 2013 | — | — | — | — | |||||||||
June 30, 2012 | — | — | — | — | |||||||||
July 2, 2011 | — | — | — | — |
June 29, 2013 | June 30, 2012 | ||||||
Accrued expenses | $ | 49 | $ | — | |||
Deferred tax liabilities | (51 | ) | (80 | ) | |||
Other liabilities | 84 | 209 | |||||
Accumulated other comprehensive loss | $ | 82 | $ | 129 |
Fiscal Year | Amount | ||
2014 | $ | 3,100 | |
2015 | 2,204 | ||
2016 | 882 | ||
2017 and thereafter | — | ||
$ | 6,186 |
|
2013 Quarter Ended | 2012 Quarter Ended | ||||||||||||||||||||||||||||||
September 29 | December 29 | March 30 | June 29 | September 29 | December 29 | March 31 | June 30 | ||||||||||||||||||||||||
Net sales | $ | 130,114 | $ | 106,750 | $ | 120,092 | $ | 133,567 | $ | 123,523 | $ | 105,486 | $ | 125,541 | $ | 135,373 | |||||||||||||||
Gross profit | 31,853 | 22,755 | 26,415 | 28,486 | 31,253 | 141 | 25,191 | 27,138 | |||||||||||||||||||||||
Operating income (loss) | 5,836 | 846 | 2,564 | 4,657 | 6,698 | (19,989 | ) | 2,856 | 4,213 | ||||||||||||||||||||||
Net earnings (loss) | 3,564 | 46 | 1,608 | 3,966 | 4,412 | (13,592 | ) | 1,919 | 4,814 | ||||||||||||||||||||||
Basic EPS | $ | 0.42 | $ | 0.01 | $ | 0.20 | $ | 0.49 | $ | 0.52 | $ | (1.61 | ) | $ | 0.23 | $ | 0.57 | ||||||||||||||
Diluted EPS | $ | 0.41 | $ | 0.01 | $ | 0.19 | $ | 0.48 | $ | 0.50 | $ | (1.61 | ) | $ | 0.22 | $ | 0.55 |
|
|
Beginning Balance | Acquisition Accounting * | Expense | Write-Offs/ Credits Issued | Ending Balance | |||||||||||||||
2013 | $ | 750 | $ | — | $ | 62 | $ | (156 | ) | $ | 656 | ||||||||
2012 | 658 | — | 280 | (188 | ) | 750 | |||||||||||||
2011 | 761 | — | 711 | (814 | ) | 658 |
Beginning Balance | Acquisition Accounting * | Expense | Write-Offs/ Credits Issued | Ending Balance | |||||||||||||||
2013 | $ | 1,562 | $ | — | $ | 8,154 | $ | (8,573 | ) | $ | 1,143 | ||||||||
2012 | 1,124 | — | 9,864 | (9,426 | ) | 1,562 | |||||||||||||
2011 | 1,375 | — | 8,205 | (8,456 | ) | 1,124 |
Beginning Balance | Acquisition Accounting * | Expense | Write-Offs/ Credits Issued | Ending Balance | |||||||||||||||
2013 | $ | 2,312 | $ | — | $ | 8,216 | $ | (8,729 | ) | $ | 1,799 | ||||||||
2012 | 1,782 | — | 10,144 | (9,614 | ) | 2,312 | |||||||||||||
2011 | 2,136 | — | 8,916 | (9,270 | ) | 1,782 |
Beginning Balance | Acquisition Accounting * | Expense ** | Deductions ** | Ending Balance | |||||||||||||||
2013 | $ | 5,151 | $ | — | $ | 1,616 | $ | — | $ | 6,767 | |||||||||
2012 | 3,717 | — | 1,434 | — | 5,151 | ||||||||||||||
2011 | 3,782 | — | (65 | ) | — | 3,717 |
Beginning Balance | Acquisition Accounting * | Expense ** | Deductions ** | Ending Balance | |||||||||||||||
2013 | $ | 655 | $ | — | $ | (160 | ) | $ | — | $ | 495 | ||||||||
2012 | 589 | — | 66 | — | 655 | ||||||||||||||
2011 | 777 | 39 | (227 | ) | — | 589 |
Beginning Balance | Acquisition Accounting * | Expense ** | Deductions ** | Ending Balance | |||||||||||||||
2013 | $ | 122 | $ | — | $ | 75 | $ | — | $ | 197 | |||||||||
2012 | 108 | — | 14 | — | 122 | ||||||||||||||
2011 | 108 | — | — | — | 108 |
* | Represents the reserves provided for as a result of the acquisition of The Cotton Exchange. |
** | Net change in the reserves and allowance are shown in the expense column. |
|
|
Effective Date | Notational Amount | LIBOR Rate | Maturity Date | |||||
Interest Rate Swap | 9/1/2011 | $10 million | 0.7650 | % | 9/1/2013 | |||
Interest Rate Swap | 9/1/2011 | $10 million | 0.9025 | % | 3/1/2014 | |||
Interest Rate Swap | 9/1/2011 | $10 million | 1.0700 | % | 9/1/2014 |
|
June 29, 2013 | June 30, 2012 | ||||||
Raw materials | $ | 12,443 | $ | 11,759 | |||
Work in process | 16,407 | 18,986 | |||||
Finished goods | 130,664 | 130,888 | |||||
$ | 159,514 | $ | 161,633 |
|
Estimated Useful Life | June 29, 2013 | June 30, 2012 | |||||||
Land and land improvements | 25 years | $ | 993 | $ | 993 | ||||
Buildings | 20 years | 7,882 | 7,893 | ||||||
Machinery and equipment | 10 years | 69,094 | 65,404 | ||||||
Computers and software | 3-10 years | 20,386 | 19,256 | ||||||
Furniture and fixtures | 7 years | 5,290 | 4,973 | ||||||
Leasehold improvements | 3-10 years | 2,335 | 2,626 | ||||||
Automobiles | 5 years | 797 | 752 | ||||||
Construction in progress | N/A | 2,430 | 2,053 | ||||||
109,207 | 103,950 | ||||||||
Less accumulated depreciation and amortization | (69,761 | ) | (64,525 | ) | |||||
$ | 39,446 | $ | 39,425 |
|
June 29, 2013 | June 30, 2012 | ||||||||||||||||||||
Cost | Accumulated Amortization | Net Value | Cost | Accumulated Amortization | Net Value | Economic Life | |||||||||||||||
Goodwill | $ | 16,812 | $ | — | $ | 16,812 | $ | 16,812 | $ | — | $ | 16,812 | N/A | ||||||||
Intangibles: | |||||||||||||||||||||
Tradename/trademarks | $ | 1,530 | $ | (603 | ) | $ | 927 | $ | 1,530 | $ | (526 | ) | $ | 1,004 | 20 yrs | ||||||
Customer relationships | 7,220 | (2,847 | ) | 4,373 | 7,220 | (2,486 | ) | 4,734 | 20 yrs | ||||||||||||
Technology | 1,220 | (428 | ) | 792 | 1,220 | (307 | ) | 913 | 10 yrs | ||||||||||||
Non-compete agreements | 517 | (419 | ) | 98 | 517 | (371 | ) | 146 | 4 – 8.5 yrs | ||||||||||||
Total intangibles | $ | 10,487 | $ | (4,297 | ) | $ | 6,190 | $ | 10,487 | $ | (3,690 | ) | $ | 6,797 |
|
June 29, 2013 | June 30, 2012 | ||||||
Accrued employee compensation and benefits | $ | 9,762 | $ | 7,645 | |||
Taxes accrued and withheld | 1,199 | 1,133 | |||||
Accrued insurance | 568 | 889 | |||||
Accrued advertising | 363 | 626 | |||||
Accrued royalties | 3,001 | 2,868 | |||||
Accrued commissions | 677 | 725 | |||||
Derivative liability | 49 | — | |||||
Other | 2,807 | 2,722 | |||||
$ | 18,426 | $ | 16,608 |
|
June 29, 2013 | June 30, 2012 | ||||||
Revolving U.S. credit facility, interest at base rate or adjusted LIBOR rate plus an applicable margin (interest at 2.6% on June 29, 2013) due May 2016 | $ | 88,753 | $ | 103,965 | |||
Revolving credit facility with Banco Ficohsa, a Honduran bank, interest at 7% due March 2019 (denominated in U.S. dollars) | 5,000 | 5,000 | |||||
Term loan with Banco Ficohsa, a Honduran bank, interest at 7%, interest only payments thru March 2012, principal payments began April 2012, payable monthly with a seven-year term (denominated in U.S. dollars) | 4,539 | 5,513 | |||||
98,292 | 114,478 | ||||||
Less current installments | (3,529 | ) | (3,529 | ) | |||
Long-term debt, excluding current installments | $ | 94,763 | $ | 110,949 |
Fiscal Year | Amount | ||
2014 | $ | 3,529 | |
2015 | 3,529 | ||
2016 | 84,614 | ||
2017 | 973 | ||
2018 | 5,647 | ||
$ | 98,292 |
|
Year ended | |||||||||||
June 29, 2013 | June 30, 2012 | July 2, 2011 | |||||||||
Current: | |||||||||||
Federal | $ | 40 | $ | (6,795 | ) | $ | 3,936 | ||||
State | 35 | — | 315 | ||||||||
Foreign | 145 | 157 | 167 | ||||||||
Total current | $ | 220 | $ | (6,638 | ) | $ | 4,418 | ||||
Deferred: | |||||||||||
Federal | $ | 499 | $ | (284 | ) | $ | 562 | ||||
State | 3 | (985 | ) | 373 | |||||||
Total deferred | 502 | (1,269 | ) | 935 | |||||||
Provision for (benefit from) income taxes | $ | 722 | $ | (7,907 | ) | $ | 5,353 |
Year ended | |||||||||||
June 29, 2013 | June 30, 2012 | July 2, 2011 | |||||||||
United States | $ | 1,468 | $ | (21,660 | ) | $ | 12,814 | ||||
Foreign | 8,438 | 11,306 | 9,866 | ||||||||
$ | 9,906 | $ | (10,354 | ) | $ | 22,680 |
Year ended | |||||||||||
June 29, 2013 | June 30, 2012 | July 2, 2011 | |||||||||
Income tax expense at the statutory rate | $ | 3,371 | $ | (3,520 | ) | $ | 7,712 | ||||
State income tax expense, net of federal income tax effect | (11 | ) | (975 | ) | 561 | ||||||
Rate difference and nondeductible items in foreign jurisdictions | (16 | ) | (47 | ) | (20 | ) | |||||
Impact of foreign earnings in tax-free zone | (2,754 | ) | (3,683 | ) | (3,223 | ) | |||||
Valuation allowance adjustments | 75 | 14 | — | ||||||||
Nondeductible compensation | — | 193 | 157 | ||||||||
Nondeductible amortization and other permanent differences | 100 | 91 | 86 | ||||||||
Other | (43 | ) | 20 | 80 | |||||||
Provision for (benefit from) income taxes | $ | 722 | $ | (7,907 | ) | $ | 5,353 |
June 29, 2013 | June 30, 2012 | ||||||
Deferred tax assets: | |||||||
State net operating loss carryforwards | $ | 1,416 | $ | 1,406 | |||
Charitable donation carryforward | 50 | 373 | |||||
Derivative — interest rate contracts | 51 | 81 | |||||
Alternative minimum tax credit carryforward | 49 | — | |||||
Currently nondeductible accruals | 6,665 | 5,555 | |||||
Gross deferred tax assets | 8,231 | 7,415 | |||||
Less valuation allowance — state net operating loss | (197 | ) | (122 | ) | |||
Net deferred tax assets | 8,034 | 7,293 | |||||
Deferred tax liabilities: | |||||||
Depreciation | (3,164 | ) | (2,704 | ) | |||
Goodwill and intangibles | (3,762 | ) | (3,319 | ) | |||
Other | (123 | ) | (109 | ) | |||
Gross deferred tax liabilities | (7,049 | ) | (6,132 | ) | |||
Net deferred tax asset | 985 | 1,161 | |||||
Less non-current net deferred tax liabilities | 3,571 | 3,803 | |||||
Current deferred tax asset | $ | 4,556 | $ | 4,964 |
|
Fiscal Year | Amount | ||
2014 | $ | 8,353 | |
2015 | 7,470 | ||
2016 | 5,180 | ||
2017 | 2,654 | ||
2018 | 294 | ||
Thereafter | — | ||
$ | 23,951 |
Fiscal Year | Amount | ||
2014 | $ | 3,100 | |
2015 | 2,204 | ||
2016 | 882 | ||
2017 and thereafter | — | ||
$ | 6,186 |
|
June 29, 2013 | June 30, 2012 | ||||||
Balance at beginning of year | $ | 526 | $ | 580 | |||
Interest expense | 6 | 6 | |||||
Benefits paid | (62 | ) | (61 | ) | |||
Actuarial adjustment | 1 | 1 | |||||
Balance at end of year | $ | 471 | $ | 526 |
|
Restricted Stock Units/Performance Units | Number of Units | Average Market Price on Date of Grant | Vesting Date | |||
Fiscal year 2012 Restricted Stock Units | 76,350 | $ | 17.60 | August 2013 | ||
Fiscal year 2012 Performance Units | 39,520 | $ | 14.25 | August 2013 | ||
Fiscal year 2012 Performance Units | 52,000 | $ | 14.25 | August 2014 | ||
Fiscal year 2012 Performance Units | 52,000 | $ | 14.25 | August 2015 | ||
Fiscal year 2013 Restricted Stock Units | 5,000 | $ | 13.66 | August 2013 | ||
224,870 |
Fiscal Year 2013 | Fiscal Year 2012 | Fiscal Year 2011 | ||||||||||||||
Number of Units | Weighted average grant date fair value | Number of Units | Weighted average grant date fair value | Number of Units | Weighted average grant date fair value | |||||||||||
Units outstanding, beginning of fiscal year | 337,700 | $ | 16.05 | — | — | — | — | |||||||||
Units granted | 10,000 | $ | 13.66 | 390,900 | $ | 16.04 | — | — | ||||||||
Units forfeited | (122,830 | ) | $ | 17.10 | (53,200 | ) | $ | (16.00 | ) | — | — | |||||
Units outstanding, end of fiscal year | 224,870 | $ | 15.37 | 337,700 | $ | 16.05 | — | — |
Fiscal Year 2013 | Fiscal Year 2012 | Fiscal Year 2011 | |||||||||||||||
Shares | Weighted Average Exercise Price | Shares | Weighted Average Exercise Price | Shares | Weighted Average Exercise Price | ||||||||||||
Stock options outstanding, beginning of fiscal year | 50,000 | $ | 13.47 | 50,000 | $ | 13.47 | — | — | |||||||||
Stock options granted | — | — | — | — | 50,000 | $ | 13.47 | ||||||||||
Stock options exercised | — | — | — | — | — | — | |||||||||||
Stock options forfeited | — | — | — | — | — | — | |||||||||||
Stock options outstanding, end of fiscal year | 50,000 | $ | 13.47 | 50,000 | $ | 13.47 | 50,000 | $ | 13.47 | ||||||||
Stock options outstanding and exercisable, end of fiscal year | 50,000 | $ | 13.47 | 50,000 | $ | 13.47 | 25,000 | $ | 13.47 |
2011 | |||||||
Risk-free interest rate | 2 | % | |||||
Expected life | 4.0 yrs | ||||||
Expected volatility | 63 | % | |||||
Expected dividend yield | — | % | |||||
Weighted-average per share fair value of options granted | $ | 6.25 |
Date of Option Grant | Number of Options Outstanding and Exercisable | Exercise Price | Grant-Date Fair Value | Expiration Date | |||||
February 2, 2011 | 25,000 | $ | 13.86 | $ | 6.15 | February 18, 2018 | |||
February 2, 2011 | 25,000 | $ | 13.07 | $ | 6.35 | February 18, 2018 | |||
50,000 |
Fiscal Year 2013 | Fiscal Year 2012 | Fiscal Year 2011 | |||||||||||||||
Shares | Weighted Average Exercise Price | Shares | Weighted Average Exercise Price | Shares | Weighted Average Exercise Price | ||||||||||||
Stock options outstanding, beginning of fiscal year | 799,834 | $ | 12.22 | 851,167 | $ | 12.16 | 1,024,500 | 11.89 | |||||||||
Stock options exercised | (139,334 | ) | 11.14 | (25,333 | ) | 8.11 | (118,667 | ) | 11.64 | ||||||||
Stock options forfeited | (60,000 | ) | 15.91 | (26,000 | ) | 14.48 | (54,666 | ) | 8.16 | ||||||||
Stock options outstanding, end of fiscal year | 600,500 | $ | 12.09 | 799,834 | $ | 12.22 | 851,167 | $ | 12.16 | ||||||||
Stock options outstanding and exercisable, end of fiscal year | 600,500 | $ | 12.09 | 799,834 | $ | 12.22 | 777,168 | $ | 12.55 |
Date of Option Grant | Number of Options Outstanding and Exercisable | Exercise Price | Grant-Date Fair Value | Expiration Date | |||||
June 28, 2004 | 82,500 | $ | 11.28 | $ | 4.23 | June 28, 2014 | |||
July 4, 2005 | 358,000 | $ | 13.35 | $ | 5.18 | July 4, 2015 | |||
July 27, 2006 | 30,000 | $ | 17.24 | $ | 6.20 | July 27, 2016 | |||
February 8, 2008 | 120,000 | $ | 8.30 | $ | 2.95 | February 8, 2018 | |||
March 16, 2009 | 10,000 | $ | 4.01 | $ | 2.00 | February 18, 2018 | |||
600,500 |
|
Basics | Branded | Consolidated | |||||||||
Fiscal Year 2013: | |||||||||||
Net sales | $ | 270,876 | $ | 219,647 | $ | 490,523 | |||||
Segment operating income (loss) | 15,771 | (1,868 | ) | 13,903 | |||||||
Segment assets ** | 161,716 | 150,194 | 311,910 | ||||||||
Equity investment in joint venture | 2,909 | — | 2,909 | ||||||||
Purchases of property and equipment | 3,477 | 4,445 | 7,922 | ||||||||
Depreciation and amortization | 5,149 | 2,866 | 8,015 | ||||||||
Fiscal Year 2012: | |||||||||||
Net sales | $ | 254,718 | $ | 235,205 | $ | 489,923 | |||||
Segment operating (loss) income | (12,484 | ) | 6,262 | (6,222 | ) | ||||||
Segment assets ** | 168,492 | 151,902 | 320,394 | ||||||||
Equity investment in joint venture | 2,818 | — | 2,818 | ||||||||
Purchases of property and equipment | 3,828 | 2,798 | 6,626 | ||||||||
Depreciation and amortization | 5,547 | 1,945 | 7,492 | ||||||||
Fiscal Year 2011: | |||||||||||
Net sales | $ | 253,494 | $ | 221,742 | $ | 475,236 | |||||
Gain on contingent consideration, net of impairment charges * | — | 918 | 918 | ||||||||
Segment operating income | 16,889 | 8,407 | 25,296 | ||||||||
Segment assets ** | 162,932 | 148,933 | 311,865 | ||||||||
Equity investment in joint venture | 2,664 | — | 2,664 | ||||||||
Purchases of property and equipment | 4,164 | 3,802 | 7,966 | ||||||||
Depreciation and amortization | 4,912 | 2,345 | 7,257 |
* | See Note 2(m) for further information regarding the remeasurement of contingent consideration and impairment testing of goodwill and intangibles. |
** | All goodwill and intangibles on our balance sheet is included in the branded segment. |
Year Ended | |||||||||||
June 29, 2013 | June 30, 2012 | July 2, 2011 | |||||||||
Segment operating income (loss) | $ | 13,903 | $ | (6,222 | ) | $ | 25,296 | ||||
Unallocated interest expense | 3,997 | 4,132 | 2,616 | ||||||||
Consolidated income (loss) before provision for (benefit from) income taxes | $ | 9,906 | $ | (10,354 | ) | $ | 22,680 |
Year Ended | |||||||||||
June 29, 2013 | June 30, 2012 | July 2, 2011 | |||||||||
United States | $ | 480,981 | $ | 484,419 | $ | 470,909 | |||||
Foreign | 9,542 | 5,504 | 4,327 | ||||||||
Total net sales | $ | 490,523 | $ | 489,923 | $ | 475,236 |
June 29, 2013 | June 30, 2012 | ||||||
United States | $ | 23,011 | $ | 22,146 | |||
Honduras | 12,144 | 13,220 | |||||
El Salvador | 3,163 | 2,979 | |||||
Mexico | 1,128 | 1,080 | |||||
All foreign countries | 16,435 | 17,279 | |||||
Total long-lived assets, excluding goodwill and intangibles | $ | 39,446 | $ | 39,425 |
|
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans | Dollar Value of Shares that May Yet Be Purchased Under the Plans | ||||||||
March 31 to May 5, 2013 | 29,470 | $14.41 | 29,470 | $10.8 | million | |||||||
May 6 to June 1, 2013 | 89,582 | $14.05 | 89,582 | $9.6 | million | |||||||
June 2 to June 29, 2013 | 109,302 | $14.73 | 109,302 | $8.0 | million | |||||||
Total | 228,354 | $14.42 | 228,354 | $8.0 | million* |
|
Yarn | $ | 14,408 | |
Natural Gas | 1,507 | ||
Finished fabric | 1,445 | ||
Finished products | 26,256 | ||
$ | 43,616 |
Effective Date | Notational Amount | LIBOR Rate | Maturity Date | |||||
Interest Rate Swap | 9/1/2011 | $10 million | 0.7650 | % | 9/1/2013 | |||
Interest Rate Swap | 9/1/2011 | $10 million | 0.9025 | % | 3/1/2014 | |||
Interest Rate Swap | 9/1/2011 | $10 million | 1.0700 | % | 9/1/2014 |
Fair Value Measurements Using | |||||||||||||
Period Ended | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||
Interest Rate Swap | |||||||||||||
June 29, 2013 | $ | 133 | — | $ | 133 | — | |||||||
June 30, 2012 | $ | 209 | — | $ | 209 | — | |||||||
July 2, 2011 | $ | 22 | — | $ | 22 | — | |||||||
Contingent Consideration | |||||||||||||
June 29, 2013 | — | — | — | — | |||||||||
June 30, 2012 | — | — | — | — | |||||||||
July 2, 2011 | — | — | — | — |
June 29, 2013 | June 30, 2012 | ||||||
Accrued expenses | $ | 49 | $ | — | |||
Deferred tax liabilities | (51 | ) | (80 | ) | |||
Other liabilities | 84 | 209 | |||||
Accumulated other comprehensive loss | $ | 82 | $ | 129 |
Fiscal Year | Amount | ||
2014 | $ | 8,353 | |
2015 | 7,470 | ||
2016 | 5,180 | ||
2017 | 2,654 | ||
2018 | 294 | ||
Thereafter | — | ||
$ | 23,951 |
Fiscal Year | Amount | ||
2014 | $ | 3,100 | |
2015 | 2,204 | ||
2016 | 882 | ||
2017 and thereafter | — | ||
$ | 6,186 |
|
2013 Quarter Ended | 2012 Quarter Ended | ||||||||||||||||||||||||||||||
September 29 | December 29 | March 30 | June 29 | September 29 | December 29 | March 31 | June 30 | ||||||||||||||||||||||||
Net sales | $ | 130,114 | $ | 106,750 | $ | 120,092 | $ | 133,567 | $ | 123,523 | $ | 105,486 | $ | 125,541 | $ | 135,373 | |||||||||||||||
Gross profit | 31,853 | 22,755 | 26,415 | 28,486 | 31,253 | 141 | 25,191 | 27,138 | |||||||||||||||||||||||
Operating income (loss) | 5,836 | 846 | 2,564 | 4,657 | 6,698 | (19,989 | ) | 2,856 | 4,213 | ||||||||||||||||||||||
Net earnings (loss) | 3,564 | 46 | 1,608 | 3,966 | 4,412 | (13,592 | ) | 1,919 | 4,814 | ||||||||||||||||||||||
Basic EPS | $ | 0.42 | $ | 0.01 | $ | 0.20 | $ | 0.49 | $ | 0.52 | $ | (1.61 | ) | $ | 0.23 | $ | 0.57 | ||||||||||||||
Diluted EPS | $ | 0.41 | $ | 0.01 | $ | 0.19 | $ | 0.48 | $ | 0.50 | $ | (1.61 | ) | $ | 0.22 | $ | 0.55 |
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