SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: February 7, 2001
Wolverine World Wide, Inc.
(Exact name of registrant as
specified in its charter)
|
Michigan |
1-6024 |
38-1185150 |
|
9341 Courtland Drive |
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Registrant's telephone number,
including area code: (616) 866-5500
Item 7. Financial Statements Pro Forma Financial Information and Exhibits.
(c) Exhibits:
99.1 Wolverine World Wide, Inc. Press Release dated February 7, 2001.
Item 9. Regulation FD Disclosure.
On February 7, 2001, Wolverine World Wide, Inc. issued the press release attached as Exhibit 99.1 to this Form 8-K, which is here incorporated by reference. This Report and the Exhibit are furnished, not filed.
|
Forward Looking Statements The conference call and materials referenced in the Exhibit contain forward-looking statements, including those relating to future sales, earnings, margins and benefits from the sourcing and factory realignment. In addition, words such as "estimates," "expects," "intends," "should," "will," variations of such words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions ("Risk Factors") that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what may be expressed or forecasted in such forward-looking statements. Risk Factors include, among others: changes in consumer preferences or spending patterns; cost and availability of inventories; the impact of competition and pricing; retail buying patterns; consolidation in the retail sector; changes in economic and market conditions; and additional factors discussed in the Company's reports filed with the Securities and Exchange Commission and exhibits thereto. Other Risk Factors exist, and new Risk Factors emerge from time to time that may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. Furthermore, the Company undertakes no obligation to update, amend or clarify forward-looking statements. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized .
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Dated: February 7, 2001 |
WOLVERINE WORLD WIDE, INC. |
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By: /s/ Blake W. Krueger |
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Blake W. Krueger |
EXHIBIT INDEX
|
Exhibit Number |
Document |
|
|
99.1 |
Wolverine World Wide, Inc. Press Release dated February 7, 2001. |
EXHIBIT 99.1
WOLVERINE WORLD WIDE, INC.
9341 Courtland Drive, Rockford, MI 49351
Phone (616) 866-5500; FAX (616) 866-0257
FOR IMMEDIATE RELEASE
CONTACT: Stephen L. Gulis, Jr.
616/866-5570
WOLVERINE WORLD WIDE, INC.
RELEASES 2000 RESULTS
Rockford, MI, February 7, 2001 -- Wolverine World Wide, Inc. (NYSE: WWW) today announced fourth quarter and fiscal year 2000 results which were in line with the preliminary estimates announced on January 18, 2001.
Net sales and other operating income for the fourth quarter rose 4.6 percent to $237.8 million compared to the $227.5 million reported for the fourth quarter a year ago. Fiscal 2000 net sales rose 5.4 percent to a record $701.3 million from $665.6 million reported for fiscal 1999.
Excluding the impact of the non-recurring charges announced in 2000 and the costs incurred to close the Company's Russian operations in 1999, net earnings for the fourth quarter of 2000 were $0.39 per share compared to $0.48 per share reported for the fourth quarter of fiscal 1999. On this basis, fiscal 2000 net earnings were $0.97 per share compared to $1.01 per share generated from ongoing operations in 1999.
Including the impact of the non-recurring charges referenced above, consolidated net earnings for the fourth quarter of 2000 were $0.33 per share compared to $0.48 per share reported for the fourth quarter of 1999. For fiscal 2000, the non-recurring charges resulted in a $0.71 per share charge that lowered full year earnings to $0.26 per share. For fiscal 1999, the Company reported earnings of $0.78 per share, which included a $0.23 per share charge for the closure of the Company's Russian operations.
Timothy J. O'Donovan, the Company's President and CEO, stated, "While we remain cautious about how major retailers will respond in early 2001 following a lackluster holiday season, we are optimistic about future prospects, particularly in the back half of this year. Our order backlog continues to be in line with the positive trends reported on January 18, 2001. Of significant note are very strong future orders for Merrell, as retailers are expanding the breadth of the line. We have also received early orders for Fall season cold weather, waterproof footwear and slippers. Additionally, Hush Puppies U.S. has a solid double-digit increase in order backlog as retailers have responded positively to its men's and women's Spring 2001 line."
-- more --
YE/2000 -- add 1
Reporting on the positive impact of the Company's asset management programs, Stephen L. Gulis, Jr., the Company's CFO, stated, "During fiscal 2000, the Company's rigorous asset management programs had a very favorable impact on the balance sheet. The Company generated over $57 million in cash flow which was used in part to pay down $46 million of interest-bearing debt. Net inventories were also reduced 14.2 percent to $144.2 million and outstanding accounts receivable were lowered 5.1 percent while sales grew 5.4 percent. While we are pleased with progress to date, we continue to focus on programs to strengthen our balance sheet further."
O'Donovan concluded, saying, "For fiscal 2001, we continue to support sales and earnings estimates in the $750 to $760 million and $1.14 to $1.18 per share ranges, respectively, with an accelerating rate of growth occurring in the back half of the year. We are anticipating improved gross margins as we begin to realize the benefits of the factory and sourcing realignment initiated last year. To support future growth, a portion of this margin improvement will be reinvested in product development and marketing efforts in support of our brands."
A webcast of the Company's conference call to discuss these results will be held today at 1:00 p.m. EST. Shareholders interested in listening to this call should visit the Company's website, http://w ww.wolverineworldwide.com. To listen, click "For Investors" in the left navigation bar of this site's home page, and then click "Conference Call" from the top navigation bar of the investor services page. An icon entitled " Wolverine World Wide Conference Call" will be presented on the page: click this icon to listen. The broadcast will also be available at http://streetevents.com. To listen at this location, click on the Individual Investor Center in the upper right-hand corner to locate the broadcast. To listen to the webcast, your computer must have the latest version of RealPlayer installed. If you do not have RealPlayer, you can download RealPlayer for free at streetevents.com anytime prior to the call. A replay of the conference call will be available on the Company's website through February 21, 2001.
Wolverine World Wide, Inc. manufactures and markets a wide variety of branded footwear and performance leathers. Major branded products of the Company include: Bates® Uniform Footwear; Caterpillar ® Footwear; Coleman® Footgear; Harley-Davidson® Footwear; Hush Puppies® shoes, slippers, and accessories; Hush Puppies College Clogs, Joe Boxer® slippers and Turtle Fur® slippers; HYTEST® safety footwear; Merrell® performance outdoor footwear; Stanley® footgear; Wolverine® work, sport and rugged outdoor footwear, apparel and accessories; and Wolverine® All Season Weather LeathersTM. The Company's premier comfort technologies include: Air ParadiseTM, Bounce®, Comfort Curve®, Hidden TracksTM, Wolverine DuraShocks® and DuraShocks Motion ControlTM, Wolverine FusionTM and Zero-GTM.
This press release contains forward-looking statements, including those relating to future sales, earnings, margins and benefits from the sourcing and factory realignment. In addition, words such as " estimates," "expects," "intends," "should," "will," variations of such words and similar
-- more --
YE/2000 -- add 2
expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions ("Risk Factors") that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what may be expressed or forecasted in such forward-looking statements. Risk Factors include, among others: changes in consumer preferences or spending patterns; cost and availability of inventories; the impact of competition and pricing; retail buying patterns; consolidation in the retail sector; changes in economic and market conditions; and additional factors discussed in the Company's reports filed with the Securities and Exchange Commission and exhibits thereto. Other Risk Factors exist, and new Risk Factors emerge from time to time that may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. Furthermore, the Company undertakes no obligation to update, amend or clarify forward-looking statements.
###
WOLVERINE WORLD WIDE, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
($000's, except share and per share data)
|
16 Weeks Ended |
52 Weeks Ended |
|||||||
|
December 30, |
January 1, |
December 30, |
January 1, |
|||||
|
Net sales and other operating income |
$ |
237,834 |
$ |
227,457 |
$ |
701,291 |
$ |
665,576 |
|
Cost of products sold |
157,985 |
145,246 |
477,318 |
445,232 |
||||
|
Gross profit |
79,849 |
82,211 |
223,973 |
220,344 |
||||
|
Selling and administrative expenses |
55,506 |
47,928 |
198,953 |
159,749 |
||||
|
Operating profit |
24,343 |
34,283 |
25,020 |
60,595 |
||||
|
Other expense |
3,792 |
3,345 |
10,005 |
11,049 |
||||
|
Earnings before income taxes |
20,551 |
30,938 |
15,015 |
49,546 |
||||
|
Income taxes |
6,772 |
10,970 |
4,325 |
17,166 |
||||
|
Net earnings |
$ |
13,779 |
$ |
19,968 |
$ |
10,690 |
$ |
32,380 |
|
Diluted earnings per share |
$ |
.33 |
$ |
.48 |
$ |
.26 |
$ |
.78 |
CONDENSED BALANCE SHEET
($000's)
|
December 30, |
January 1, |
December 30, |
January 1, |
|||||||
|
ASSETS: |
LIABILITIES & EQUITY: |
|||||||||
|
Cash & securities |
$ |
8,434 |
|
$ 1,446 |
Notes payable |
$ |
896 |
$ |
148 |
|
|
Receivables |
161,957 |
170,732 |
Current maturities on |
|
|
|||||
|
Inventories |
144,192 |
168,011 |
Accounts payable and other |
|
|
|||||
|
Other current assets |
10,503 |
9,112 |
Total current liabilities |
54,004 |
48,539 |
|||||
|
Total current assets |
325,086 |
349,301 |
|
|
|
|||||
|
Plant & equipment, net |
102,665 |
116,283 |
Other noncurrent liabilities |
15,448 |
18,920 |
|||||
|
Other assets |
66,817 |
68,811 |
Stockholders' equity |
337,238 |
332,105 |
|||||
|
Total Assets |
$ |
494,568 |
|
$ 534,395 |
Liabilities & Equity |
$ |
494,568 |
$ |
534,395 |
|
Wolverine World Wide, Inc.
Consolidated Statement of Operations - w/o Realignment charges
(Unaudited)
|
|
2000 |
||||||||
|
|
1st Qtr |
|
2nd Qtr |
|
3rd Qtr |
|
4th Qtr |
|
Year-end |
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
$ |
147,370 |
$ |
140,558 |
$ |
175,529 |
$ |
237,834 |
$ |
701,291 |
|
Cost of products sold |
|
98,477 |
|
92,360 |
|
116,808 |
|
154,636 |
|
462,281 |
|
Gross profit |
|
48,893 |
|
48,198 |
|
58,721 |
|
83,198 |
|
239,010 |
|
|
|
|
|
|
|
|
|
|
|
|
Selling & administrative expenses |
|
39,545 |
|
34,848 |
|
39,597 |
|
55,375 |
|
169,365 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit |
|
9,348 |
|
13,350 |
|
19,124 |
|
27,823 |
|
69,645 |
|
Interest/Other expense |
|
2,296 |
|
2,181 |
|
1,736 |
|
3,367 |
|
9,580 |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income tax |
|
7,052 |
|
11,169 |
|
17,388 |
|
24,456 |
|
60,065 |
|
Income taxes |
|
2,257 |
|
3,574 |
|
5,738 |
|
7,993 |
|
19,562 |
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings |
$ |
4,795 |
$ |
7,595 |
$ |
11,650 |
$ |
16,463 |
$ |
40,503 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share |
$ |
0.12 |
$ |
0.18 |
$ |
0.28 |
$ |
0.39 |
$ |
0.97 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1999 |
||||||||
|
|
1st Qtr |
|
2nd Qtr |
|
3rd Qtr |
|
4th Qtr |
|
Year-end |
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
$ |
136,193 |
$ |
131,444 |
$ |
170,482 |
$ |
227,457 |
$ |
665,576 |
|
Cost of products sold |
|
91,344 |
|
85,279 |
|
116,463 |
|
145,246 |
|
438,332 |
|
Gross profit |
|
44,849 |
|
46,165 |
|
54,019 |
|
82,211 |
|
227,244 |
|
|
|
|
|
|
|
|
|
|
|
|
Selling & administrative expenses |
|
37,120 |
|
33,798 |
|
34,303 |
|
47,928 |
|
153,149 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit |
|
7,729 |
|
12,367 |
|
19,716 |
|
34,283 |
|
74,095 |
|
Interest/Other expense |
|
2,352 |
|
2,409 |
|
2,443 |
|
3,345 |
|
10,549 |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income tax |
|
5,377 |
|
9,958 |
|
17,273 |
|
30,938 |
|
63,546 |
|
Income taxes |
|
1,774 |
|
3,290 |
|
5,752 |
|
10,970 |
|
21,786 |
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings |
$ |
3,603 |
$ |
6,668 |
$ |
11,521 |
$ |
19,968 |
$ |
41,760 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share |
$ |
0.09 |
$ |
0.16 |
$ |
0.28 |
$ |
0.48 |
$ |
1.01 |
Note:
Certain amounts previously reported in 1999 have been reclassified to conform with the presentation used in 2000.
Operations exclude fiscal 2000 realignment charge and fiscal 1999 Russian restructuring charge.