HanesBrands Reports Fourth-Quarter 2012 Financial
HanesBrands Reports Fourth-Quarter 2012 Financial Results and Provides Fiscal 2013 Guidance
Reflecting Strong Second-Half Momentum, Fourth-Quarter Net Sales Increased 5 Percent to $1.15 Billion, Adjusted EPS from Continuing Operations More Than Doubled to $1.07, and Free Cash Flow Totaled $228 Million
For 2013, Hanes Expects Net Sales of Approximately $4.6 Billion, EPS of $3.25 to $3.40, Free Cash Flow of $350 Million to $450 Million, and Further Debt Reduction of $250 Million
WINSTON-SALEM, N.C.--(BUSINESS WIRE)--Feb. 5, 2013-- HanesBrands (NYSE: HBI), a leading marketer of everyday branded basic apparel, today reported growth in net sales and adjusted earnings per diluted share for its fourth quarter and fiscal year ended Dec. 29, 2012. (Unless noted, all performance measures are from continuing operations. See discontinued operations section in this press release.)
Net sales increased 5 percent to $1.15 billion in the fourth quarter compared with the year-ago quarter and increased 2 percent to $4.53 billion for the full fiscal year. Full-year sales increased 4 percent excluding the managed decline in the branded printwear division and the decline in a large mid-tier retailer undergoing a strategic shift.
Fourth-quarter adjusted EPS more than doubled to $1.07, excluding bond prepayment expenses that reduced EPS by $0.30. Each of the company’s business segments reported at least double-digit operating profit growth in the quarter. Full-year adjusted EPS increased 7 percent to $2.62. The Innerwear segment was the strongest contributor to full-year results, delivering 18 percent growth in operating profit.
The company also generated $508 million of free cash flow in the year and prepaid $550 million of long-term bonds. The company ended the year with long-term debt of approximately 2.5 times adjusted EBITDA.
“By reducing bond debt by $750 million over the past 13 months, we have ended our era of high debt leverage, and the momentum of strong results in the back half of 2012 positions us well for continued profit growth in 2013,” Hanes Chairman and Chief Executive Officer Richard A. Noll said.