-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, G4CpUBpX3O5Ud6zRYB+coroDkCv2XCzMab4stskbzMBHHV70wBGLDx1T/nCy7OJr OgXucp9WlzNv/9lDYut/XQ== 0000094845-01-000004.txt : 20010123 0000094845-01-000004.hdr.sgml : 20010123 ACCESSION NUMBER: 0000094845-01-000004 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20010110 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20010110 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LEVI STRAUSS & CO CENTRAL INDEX KEY: 0000094845 STANDARD INDUSTRIAL CLASSIFICATION: APPAREL & OTHER FINISHED PRODS OF FABRICS & SIMILAR MATERIAL [2300] IRS NUMBER: 940905160 STATE OF INCORPORATION: DE FISCAL YEAR END: 1130 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-06631 FILM NUMBER: 1506368 BUSINESS ADDRESS: STREET 1: 1155 BATTERY ST CITY: SAN FRANCISCO STATE: CA ZIP: 94111 BUSINESS PHONE: 4155446000 MAIL ADDRESS: STREET 1: 1155 BATTERY STREET CITY: SAN FRAINCISCO STATE: CA ZIP: 94111 8-K 1 0001.txt PRESS RELEASE DATED JANUARY 10, 2001 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 -------------------------------------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (date of earliest event reported): January 10, 2001 Levi Strauss & Co. (Exact name of registrant as specified in its charter) DELAWARE 333-36234 94-0905160 (State of Incorporation) (Commission File Number) (IRS Employer Identification Number) 1155 Battery Street San Francisco, California 94111 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (415) 501-6000 ITEM 5. Other Events. Attached hereto as Exhibit 99 is a copy of Levi Strauss & Co.'s press release dated January 10, 2001 titled "Levi Strauss & Co. Fourth-Quarter and Fiscal 2000 Financial Results Show Substantial Progress in Business Turnaround." ITEM 7. EXHIBIT. 99 Press Release dated January 10, 2001. 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 hereunto duly authorized. Date: January 10, 2001 LEVI STRAUSS & CO. By /s/ William B. Chiasson ----------------------- William B. Chiasson Title: Senior Vice President and Chief Financial Officer EXHIBIT INDEX Exhibit Number Description - -------------- ----------- 99 Press Release dated January 10, 2001 EX-99 2 0002.txt PRESS RELEASE DATED JANUARY 10, 2001 Exhibit 99 LEVI 1155 Battery Street, San Francisco, CA 94111 STRAUSS & Co. NEWS Investor Contact: Christine Greany Integrated Corporate Relations (203) 222-9013 FOR IMMEDIATE RELEASE - --------------------- Media Contact: Linda Butler Levi Strauss & Co. (415) 501-2233 LEVI STRAUSS & CO. FOURTH-QUARTER AND FISCAL 2000 FINANCIAL RESULTS SHOW SUBSTANTIAL PROGRESS IN BUSINESS TURNAROUND Annual Net Sales Decline Slows; Net Income Nearly Doubles; Improving Sales Trends Expected to Continue in Fiscal 2001 SAN FRANCISCO (January 10, 2001) - Levi Strauss & Co. today announced improved financial results for the fourth quarter and fiscal year ended November 26, 2000. The company achieved substantial progress in its business turnaround in fiscal 2000, narrowing its sales decline, significantly improving both operating and net income, increasing cash flow and reducing debt. Specifically, the company: o Slowed its net sales decline to 9.6 percent (7 percent on a constant currency basis) from a 13.7 percent decline in 1999; o Increased net income, on an adjusted basis, 97 percent to $201.8 million; reported net income rose more than 40 times to $223.4 million; o Cut its debt by $538 million. Levi Strauss & Co. President and Chief Executive Officer Philip Marineau said, "Our goal this past year was to deliver strong financial performance, and we succeeded beyond our expectations. We've improved our sales trends, meeting our target of slowing the sales decline to single digits for the year, and out-performed last year in all our key financial measures including earnings. We've made great progress in our business turnaround and we've done it in a tough retail environment, which is all the more encouraging." For the 12-month period ended November 26, 2000, net sales declined 9.6 percent to $4.645 billion from $5.139 billion in the prior year. Had currency rates remained constant at 1999 levels, net sales would have declined approximately 7 percent for the year. -- more -- LS&CO. Q4/Add One January 10, 2001 "Our strong financial performance was driven, in part, by product innovation in our Levi's(R), Dockers(R), and Slates(R) brands," said Marineau. "Consumers have responded positively to our updated basics and new products, including Levi's(R) Engineered Jeans(TM), Levi's(R) 569 jeans, classic corduroys and low-rise jeans for women. While a business turnaround such as this is a multi-year process, it's clear that our strategies are beginning to take hold. We are well positioned to stabilize our business in fiscal 2001." Fourth-Quarter Results - ---------------------- The company ended the year with good momentum. Marineau said, "We turned in our best performance of 2000 in the fourth quarter. Our sales decline slowed to 4 percent on a constant currency basis, a substantial achievement from the first quarter when we had nearly a 13 percent decline. We also realized higher gross margins, gross profits and income in the fourth quarter than we had in each of the previous three quarters - all the while continuing to pay down our debt." Total net sales for the fourth quarter declined 8.6 percent to $1.286 billion from $1.407 billion in the year-earlier period, however exchange rates had a significant negative impact. Had currency exchange rates remained constant at 1999 levels, net sales would have declined approximately 4 percent. Fourth-quarter gross margin rose in 2000 to 43.0 percent from 37.4 percent in the prior-year period and reflects the company's lowered sourcing and fabric costs, reduced inventory markdowns and improved product mix. Gross profit for the fourth quarter improved to $553 million compared to $526 million in the same period of 1999. Operating income for the fourth quarter was $164.1 million compared to $321.2 million in the same period last year. Excluding certain adjustments related to restructuring costs and incentive compensation programs, operating income for the fourth quarter of 2000 would have increased 89 percent compared to the prior-year period. -- more -- LS&CO. Q4/Add Two January 10, 2001 EBITDA, which the company defines as operating income excluding depreciation, amortization, restructuring charges and reversal of charges for a long-term incentive program, improved to $152.4 million compared to $102.9 million in the fourth quarter of 1999. EBITDA margin rose sharply to 11.8 percent, compared to 7.3 percent in the prior-year period. Fourth-quarter net income decreased to $75.4 million from $157.0 million in 1999. Excluding the adjustments to operating income in both years, net income would have increased to approximately $54 million as opposed to a loss of $2 million in the same period last year. Fiscal-Year 2000 Results - ------------------------ Bill Chiasson, the company's chief financial officer, said, "We have made great strides in improving the financial picture at Levi Strauss & Co. Our gross margins are back to historic levels, we have a tighter rein on expenses, we're doing a better job of controlling our inventories, and we've reduced our debt by more than half-a-billion dollars. We ended the year with EBITDA margins of 12.8 percent, within our full-year target range, and expect to achieve our goal of 11.5 percent to 13.5 percent in 2001. Importantly, utilizing our strong cash flow to continue reducing debt remains a top priority." Gross margin in fiscal 2000 rose to 42.1 percent from 38.1 percent in 1999, while gross profit was $1.955 billion compared to $1.959 billion last year. Operating income for the year increased significantly to $538.8 million from $199.3 million in 1999. Excluding adjustments, operating income would have increased 43 percent. EBITDA in 2000 rose 26 percent to $596.6 million or 12.8 percent of sales compared to $473.3 million or 9.2 percent of sales in 1999. Net income for the year increased dramatically to $223.4 million from $5.4 million in 1999. On a comparable basis, excluding one-time adjustments as mentioned above, net income would have increased approximately 97 percent to $201.8 million. As of November 26, 2000, total debt had been reduced to $2.1 billion from $2.7 billion on November 28, 1999. -- more -- LS&CO. Q4/Add Three January 10, 2001 Levi Strauss & Co. is one of the world's leading branded apparel companies, marketing its products in more than 80 countries worldwide. The company designs and markets jeans and jeans-related pants, casual and dress pants, shirts, jackets and related accessories for men, women and children under the Levi's(R), Dockers(R) and Slates(R) brands. The company's fourth-quarter investor conference call, featuring Phil Marineau, chief executive officer; Bill Chiasson, chief financial officer; and Joe Maurer, treasurer, will be available through a live audio Webcast at www.levistrauss.com on January 10, 2001 at 10 a.m. EST. A replay is available on the Web site the same day beginning at approximately 2 p.m. EST and will remain until January 24. A telephone replay also is available at (402) 220-5656 from approximately noon EST through January 17. This news release includes forward-looking statements about sales performance and trends, fashion trends, product innovation and new product development in our three brands, product mix, inventory position and management, expense levels including overhead and advertising expense, debt repayment and liquidity, customer orders, retail relationships and developments including sell-through, presentation of product at retail and marketing collaborations, and marketing and advertising initiatives. We have based these forward-looking statements on our current assumptions, expectations and projections about future events. When used in this announcement, the words "believe," "anticipate," "intend," "estimate," "expect," "project" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these words. These forward-looking statements are subject to risks and uncertainties including, without limitation, risks related to the impact of competitive products; changing fashion trends; U.S. retail conditions and retail conditions outside the U.S.; dependence on key distribution channels, customers and suppliers; our supply chain executional performance; ongoing competitive pressures in the apparel industry; changing international retail environments; changes in the level of consumer spending or preferences in apparel; general economic conditions; trade restrictions; political or financial instability in countries where our products are manufactured; and other risks detailed in our registration statement and other filings with the Securities and Exchange Commission. Our actual results might differ materially from historical performance or current expectations. We do not undertake any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. ###
LEVI STRAUSS & CO. CONSOLIDATED STATEMENTS OF INCOME (Dollars in Thousands) Three Months Ended Twelve Months Ended ------------------ ------------------- Nov. 26, Nov. 28, Nov. 26, Nov. 28, -------- -------- -------- -------- 2000 1999 2000 1999 ---- ---- ---- ---- (Audited) Net sales........................................................ $1,285,905 $1,406,813 $4,645,126 $5,139,458 Cost of goods sold............................................... 732,841 881,103 2,690,170 3,180,845 ---------- ---------- ---------- ---------- Gross profit.................................................. 553,064 525,710 1,954,956 1,958,613 Marketing, general and administrative expenses................... 433,666 464,860 1,481,718 1,629,845 Other operating income........................................... (11,528) (8,280) (32,380) (24,387) Excess capacity/restructuring charge............................. (33,144) 91,798 (33,144) 497,683 Global Success Sharing Plan...................................... -- (343,873) -- (343,873) ---------- ---------- ---------- ---------- Operating income.............................................. 164,070 321,205 538,762 199,345 Interest expense................................................. 56,921 50,260 234,098 182,978 Other (income) expense, net...................................... (8,864) 21,680 (39,016) 7,868 ---------- ---------- ---------- ---------- Income before taxes........................................... 116,013 249,265 343,680 8,499 Income tax expense............................................... 40,605 92,227 120,288 3,144 ---------- ---------- ---------- ---------- Net income.................................................... $ 75,408 $ 157,038 $ 223,392 $ 5,355 ========== ========== ========== ========== NET SALES BY REGION (in millions) (Unaudited) Three Months Ended Twelve Months Ended ------------------ ------------------- Net Sales Nov. 26, Nov. 28, Percent Nov. 26, Nov. 28, Percent -------- -------- ------- -------- -------- ------- 2000 1999 Change 2000 1999 Change ---- ---- ------ ---- ---- ------ Americas $ 892.9 $ 939.9 (5.0%) $3,148.2 $3,420.3 (8.0%) Europe 287.0 356.7 (19.5%) 1,104.5 1,360.8 (18.8%) Asia 106.0 110.2 (3.8%) 392.4 358.4 9.5% Total Company $1,285.9 $1,406.8 (8.6%) $4,645.1 $5,139.5 (9.6%) Three Months Ended Twelve Months Ended --------------------- ---------------------- Net Sales at Prior-Year Nov. 26, Nov. 28, Percent Nov. 26, Nov. 28, Percent Currency Exchange Rates -------- -------- ------- -------- -------- ------- 2000 1999 Change 2000 1999 Change ---- ---- ------ ---- ---- ------ (Restated) (Restated) ---------- ---------- Americas $ 893.5 $ 939.9 (4.9%) $3,146.3 $3,420.3 (8.0%) Europe 342.9 356.7 (3.9%) 1,247.5 1,360.8 (8.3%) Asia 109.3 110.2 (0.8%) 382.7 358.4 6.8% Total Company $1,345.7 $1,406.8 (4.3%) $4,776.5 $5,139.5 (7.1%)
LEVI STRAUSS & CO. CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in Thousands) November 26, November 28, ------------ ------------ 2000 1999 ---- ---- (Unaudited) ASSETS - ------ Cash and cash equivalents............................................................ $ 117,058 $ 192,816 Trade receivables, net............................................................... 660,128 759,273 Total inventories ................................................................... 652,249 671,487 Property, plant and equipment, net................................................... 574,039 714,523 Other assets......................................................................... 1,202,254 1,331,915 ---------- ---------- Total Assets....................................................... $3,205,728 $3,670,014 ========== ========== LIABILITIES AND STOCKHOLDERS' DEFICIT - ------------------------------------- Current maturities of long-term debt and short-term borrowings....................... $ 231,290 $ 233,992 Accounts payable..................................................................... 268,473 262,389 Restructuring reserves............................................................... 71,595 288,281 Long-term debt, less current maturities.............................................. 1,895,140 2,430,617 Long-term employee related benefits.................................................. 358,849 325,518 Post-retirement medical benefits..................................................... 545,574 541,815 Other liabilities.................................................................... 933,380 875,964 ---------- ---------- Total liabilities.................................................. 4,304,301 4,958,576 ---------- ---------- Total stockholders' deficit........................................ (1,098,573) (1,288,562) ---------- ---------- Total Liabilities and Stockholders' Deficit........................ $3,205,728 $3,670,014 ========== ========== Certain prior year assets and liability amounts have been reclassified to conform to the 2000 presentation.
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