John T. McClain, Chief Financial Officer, commented, "We ended the quarter with $967 million of total debt and, net of $54 million cash on hand, our debt to total capitalization ratio was 29.2%, in line with our expectations."
"Our cash used by operating activities during the period was $6 million, compared with cash provided by operating activities of $261 million in the prior year. The decrease in cash from operations was the result of lower earnings, the timing of shipments and payments for inventory, as well as the absence of the positive impact from the exit of Polo Jeans Company, which benefited last year."
Mr. Card continued, "Based on our performance to date, the impending sale of our Barneys retail operations and the exit from most of our Moderate Sportswear labels, and the continued potential for weakening in the retail environment, we have adjusted our outlook for 2007."
"We are now targeting 2007 full year adjusted earnings per share to be in a range of $1.28 to $1.34, compared to 2006 adjusted earnings per share of $2.19. Continuing operations are forecast to fall in an adjusted EPS range of $1.20 to $1.25."
Mr. Card concluded, "I firmly believe there is opportunity for Jones in our core brands - Jones New York, Anne Klein and Nine West, as well as our denim family of brands, including Gloria Vanderbilt and l.e.i. To that end, the management team, at the direction of the Board of Directors, is focused on stabilizing Jones and strategically investing in growing our brands for the future benefit of our shareholders."
"We have a highly talented and energized team of people across all of our operating divisions and they are reinvigorating our commitment to product quality and excellence in execution. I am confident that, by working together with a clear focus on strategic growth and investment, we will return the Company to a period of better predictability and consistency, and sustainable, improved profitability."
The Company's Board of Directors has declared a regular quarterly cash dividend of $0.14 per share to all common stockholders of record as of August 17, 2007 for payment on August 31, 2007.
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. The call will be recorded and made available through August 9 and may be accessed.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
