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): October 22, 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)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Blair-2
Item 2.02. Results of Operations and Financial Condition.
On October 22, 2004, Blair Corporation issued a press release
announcing its earnings for the three months and nine months ended September 30,
2004 and exploration of the sale of its consumer finance portfolio. The
information contained in the press release, which is attached as Exhibit 99.1 to
this Form 8-K, is incorporated herein by reference.
Item 7.01. Regulation FD Disclosure.
The information contained in the press release is furnished pursuant to
Item 7.01, "Regulation FD Disclosure."
Item 9.01. Financial Statements and Exhibits.
(a) Financial statements of businesses acquired.
Not applicable.
(b) Pro forma financial information.
Not applicable.
(c) Exhibits
Exhibit 99.1.Press Release.
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: October 22, 2004 Blair Corporation
By: /s/ John E. Zawacki
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John E. Zawacki
President and Chief Executive Officer
By: /s/ Bryan J. Flanagan
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Bryan J. Flanagan
Senior Vice President and Chief
Financial Officer
EXHIBIT 99.1
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 THIRD QUARTER RESULTS
WARREN, Pa., (October 22, 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 third quarter and
nine months ended September 30, 2004.
Net sales for the third quarter ended September 30, 2004 were $107.1 million
compared to $124.1 million reported for the third quarter ended September 30,
2003.
Net income for the third quarter ended September 30, 2004 was $2.9 million, or
$0.36 per basic and diluted share, compared to $793,000, or $0.10 per basic and
diluted share, reported for the third quarter last year.
Net sales for the nine months ended September 30, 2004 were $362.7 million,
compared to $415.5 million reported for the first nine months ended September
30, 2003.
Net income for the nine months ended September 30, 2004 was $8.5 million, or
$1.05 per basic and $1.04 per diluted share, compared to $5.4 million, or $0.67
per basic and diluted share, reported for the first nine months last year.
The increase in net income for the quarter reflects the continued implementation
of strategic initiatives undertaken to generate greater efficiencies of core
operations and enhance profitability.
Cost of goods sold as a percentage of net sales for the third quarter of 2004
was 48.1% compared to 49.0% for the third quarter of 2003, reflecting reduced
customer returns and successful efforts to lower overall shipping costs.
Blair's e-commerce channel generated $66.0 million in gross sales demand during
the first nine months of 2004, compared to $60.3 million during the first nine
months of 2003.
"Blair achieved an increase in profitability by continuing to focus on improving
gross margins and lowering overall operating costs. These ongoing efforts,
combined with remaining steadfast in our dedication to our core customers, are
vital elements of our long-term plan to increase profitability," said Bryan J.
Flanagan, Senior Vice President and Chief Financial Officer.
Blair also announced today that it is exploring the possibility of selling its
consumer finance receivable portfolio to a third-party financial institution.
Similar to financial institutions that issue credit cards, Blair currently
offers its domestic customers credit for Blair-related purchases. This action is
responsive to a suggestion made by a small group of shareholders in July to sell
the consumer finance receivable portfolio.
"Over the years, shareholders have approached Blair management with suggestions
for the company," said John E. Zawacki, President and Chief Executive Officer of
Blair. "We have retained outside advisors to assist us in exploring this
alternative and we will ultimately make a determination about what is in the
best interest of all Blair shareholders."
"Blair Corporation's management is committed to increasing shareholder value
which we believe will best be achieved by continuing to adhere to our long-term
strategy of focusing on our core business. The core Blair brand remains the
cornerstone of our success and has generated the profitability to position us
for the future to further enhance our 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 2,300 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 $500 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--
BLAIR CORPORATION
COMPARATIVE OPERATING HIGHLIGHTS
(UNAUDITED)
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
For the Three Months Ended September 30
2004 2003
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Net sales $107,074 $ 124,100
Income before income taxes 4,741 1,270
Income taxes 1,800 477
Net income 2,941 793
Basic / diluted earnings per share $0.36/$0.36 $0.10/$0.10
Weighted average basic shares outstanding 8,122,128 8,058,665
Weighted average diluted shares outstanding 8,204,025 8,077,876
For the Nine Months Ended September 30
2004 2003
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Net sales $362,709 $ 415,459
Income before income taxes 13,748 8,696
Income taxes 5,225 3,303
Net income 8,524 5,393
Basic / diluted earnings per share $1.05/$1.04 $ 0.67/$0.67
Weighted average basic shares outstanding 8,088,429 8,052,783
Weighted average diluted shares outstanding 8,161,049 8,077,379
SELECTED BALANCE SHEET ITEMS AS OF SEPTEMBER 30
DOLLARS IN THOUSANDS
2004 2003
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Customer accounts receivable, net $141,837 $141,330
Inventories $101,372 $ 91,132
Total assets $344,213 $339,896
Total liabilities $ 67,703 $ 80,091
Stockholders' equity $276,510 $259,805
Total liabilities and stockholders' equity $344,213 $339,896