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): February 13, 2004
Blair Corporation
(Exact name of registrant as specified in its charter)
Delaware 001-00878 25-0691670
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(State or other (Commission File No.) (I.R.S. Employer
Jurisdiction of Identification No.)
incorporation)
220 Hickory Street, Warren, Pennsylvania 16366-0001
(Address of Principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (814) 723-3600
Not Applicable
(Former name or former address, if changed since last report)
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Item 7. Financial Statements and Exhibits.
(c) Exhibits
Exhibit 99.1. Press Release.
Item 12. Disclosure of Results of Operations and Financial Condition.
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The following information is furnished pursuant to Item 12, "Disclosure
of Results of Operations and Financial Condition."
On February 13, 2004, Blair Corporation issued a press release
announcing its earnings for the three months and twelve months ended December
31, 2003. The information contained in the press release, which is attached as
Exhibit 99.1 to this Form 8-K, is incorporated herein by reference.
SIGNATURES
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: February 13, 2004 Blair Corporation
By: John E. Zawacki
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John E. Zawacki
President and Chief Executive Officer
By: Bryan J. Flanagan
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Bryan J. Flanagan
Senior Vice President and Chief
Financial Officer
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FOR IMMEDIATE RELEASE:
CONTACTS:
Blair Corporation Carl Hymans
Bryan Flanagan, SVP/Chief Financial Officer G.S. Schwartz & Co
Thomas McKeever, SVP/Operations & Administration 212-725-4500
814-723-3600 carlh@schwartz.com
BLAIR CORPORATION REPORTS FOURTH QUARTER RESULTS
WARREN, Pa., (February 13, 2004) -- Blair Corporation (Amex: BL),
(www.blair.com), a national multi-channel direct marketer of women's and men's
apparel and home products, today announced results for the fourth quarter and
twelve months ended December 31, 2003.
Net sales for the fourth quarter ended December 31, 2003, were $166.5 million,
compared to $167.9 million, reported for the fourth quarter ended December 31,
2002.
The year 2003 ended strongly with net income for the fourth quarter being $9.1
million, or $1.15 per basic share and $1.14 per diluted share, compared to net
income of $6.2 million, or $.78 per basic share and $.77 per diluted share, for
the fourth quarter of 2002.
Net sales for the twelve months ended December 31, 2003, were a record $581.9
million, compared to $568.5 million, reported for the twelve months ended
December 31, 2002.
These record sales results were accomplished despite continued industry wide
softness and three consecutive years of economic challenges.
Net income for the twelve months ended December 31, 2003, was $14.5 million, or
$1.82 per basic share and $1.81 per diluted share, compared to $19.1 million, or
$2.39 per basic share and $2.38 per diluted share, reported for the twelve
months a year ago.
Cost of goods sold as a percentage of net sales increased to 47.7% for 2003 from
47.5% for 2002. The 20 basis point increase, or approximately $1.2 million in
the cost of goods sold, primarily reflects initiatives undertaken to reduce the
amount of slower moving products and improve inventory management. Higher
inbound airfreight expenses and shipping costs also impacted the cost of goods
sold.
Advertising expenses as a percentage of net sales rose to 26.9% for 2003 from
25.7% for 2002. The total increase of advertising expenses of $10.5 million
reflects strategic outreach initiatives including additional catalog mailings to
current and prospective customers.
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"Fourth quarter results reflect the success of Blair's enhanced automated
fulfillment capabilities which significantly contributed to an overall
improvement in operating efficiencies and a reduction in backlog. The company
expects that the enhanced fulfillment capabilities will further increase the
speed of order shipments, lower costs and increase order fulfillment rates,
profitability and customer satisfaction," said Bryan J. Flanagan, Senior Vice
President and Chief Financial Officer.
"We believe results for the first quarter of 2004 may be lower than the first
quarter of 2003 due to start up costs associated with Allegheny Trail Corp.,
Blair's wholesale business targeting outdoor sporting goods and recreational
retailers, and the re-launch of our Irvine Park catalog aimed at a younger, more
affluent menswear customer," noted Mr. Flanagan.
John E. Zawacki, President and CEO said, "2003 was the third consecutive
difficult year for the direct marketing industry, and I am pleased with Blair's
performance relative to its industry peers. Results for 2003 give further
credence to the success of Blair's efforts to meet near-term challenges while
remaining diligent in our efforts to achieve long-term growth."
"Blair continues to undertake initiatives to improve inventory management,
increase sales and enhance profitability. We are confident in our core
businesses, which remain the cornerstone of the Company, as we lay the
groundwork to further capitalize on growth initiatives including Allegheny Trail
and Irvine Park. Our e-commerce channel generated $84.3 million in gross sales
demand in 2003 as compared to $65.6 million in 2002. We expect our investments
in e-commerce, Crossing Pointe, Allegheny Trail and Irvine Park will further
expand Blair's customer base and generate future revenue growth."
"Blair's balance sheet remains strong, and we are expanding our customer base
and enhancing our leadership position as the premier direct marketer to
value-conscious consumers," concluded Mr. Zawacki.
ABOUT BLAIR
Headquartered in Warren, Pennsylvania, Blair Corporation sells a broad range of
women's and men's apparel and home products through direct mail marketing and
its Web sites www.blair.com and www.crossingpointe.com. Blair Corporation
employs over 2,500 people and operates facilities and retail outlets in
Northwestern Pennsylvania as well as a catalog outlet in Wilmington, Delaware.
The Company, which has annual sales of more than $580 million, is publicly
traded on the American Stock Exchange (AMEX-BL).
This release contains certain statements, including without limitation,
statements containing the words "believe," "plan," "expect," "anticipate," and
words of similar import relating to future results of the Company (including
certain projections and business trends) that are "forward-looking statements"
as defined in the Private Securities Litigation Reform Act of 1995. Actual
results may differ materially from those projected as a result of certain risks
and uncertainties, including but not limited to, changes in political and
economic conditions, demand for and market acceptance of new and existing
products, as well as other risks and uncertainties detailed in the most recent
periodic filings of the Company with the Securities and Exchange Commission.
--Financial table follows--
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BLAIR CORPORATION
COMPARATIVE OPERATING HIGHLIGHTS
(UNAUDITED)
(DOLLARS IN THOUSANDS)
For the Three Months Ended December 31
2003 2002
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Net sales $166,481 $167,941
Income before income taxes 14,467 11,054
Income taxes 5,334 4,832
Net income 9,133 6,222
Basic / diluted earnings per share $ 1.15 / $1.14 $ .78 / $.77
Weighted average basic shares outstanding 8,001,234 8,039,276
Weighted average diluted shares outstanding 8,029,013 8,065,388
For the Twelve Months Ended December 31
2003 2002
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Net sales $581,940 $ 568,546
Income before income taxes 23,163 31,113
Income taxes 8,637 11,977
Net income 14,526 19,136
Basic / diluted earnings per share $ 1.82 / $1.81 $ 2.39 / $2.38
Weighted average basic shares outstanding 7,983,178 8,005,182
Weighted average diluted shares outstanding 8,017,604 8,031,243
Selected Balance Sheet Items as of December 31
2003 2002
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Customer accounts receivable $154,660 $149,230
Inventories $ 85,601 $ 74,217
Total assets $345,976 $344,097
Total liabilities $ 77,175 $ 86,763
Stockholders' equity $268,801 $257,334
Total liabilities and stockholders' equity $345,976 $344,097