News Flash

Maidenform Brands logs 8.9% Q2 net sales

30 Aug '05

4 min read

Cash flows used in operating activities for the first six months of fiscal 2005 were $12.8 million compared to cash provided from operations of $4.6 million for the first six months of fiscal 2004. The primary causes of this change were the increases in accounts receivable and inventories since the beginning of fiscal 2005. Accounts receivable at the end of the second quarter of 2005 increased to $51.9 million from $24.0 million at the end of the 2004 fiscal year.

Additionally, inventories increased to $49.9 million at the end of the second quarter of 2005 from $37.1 million at the end of the 2004 fiscal year. Fiscal year end 2004 inventories were abnormally low as a result of an embargo on bras from China in effect at that time.

On June 29, 2005, the Company amended its existing senior credit facility (including its revolving credit facility) by prepaying the total balance outstanding of $50.0 million on the second-lien term loan, which had an interest rate of LIBOR plus 7.5 percent. Simultaneously, Maidenform increased the borrowings on its first-lien term loan from $88.9 million to $150.0 million and modified the interest rate from LIBOR plus 2.75 percent to LIBOR plus 2.25 percent. Under this new facility, the Company's interest rate will be reduced to LIBOR plus 2.00 percent on December 29, 2005.

The Company will broadcast its second-quarter conference call on August 30, 2005, at 10:30 a.m. EDT. To participate in the call, please dial 913-981-5519. To listen to the live broadcast over the Internet, please log on to website and via telephone by dialing 719-457-0820 or 888-203-1112 and entering the passcode 5794256 shortly after the broadcast and through September 7, 2005.

More Maidenform Inc News... More Apparel/Garments News - United States Of America...