STOCK EXCHANGE OKS DYERSBURG PLAN
NEW YORK — Dyersburg Corp. said Friday that the New York Stock Exchange has accepted its business plan and agreed to continue listing the mill’s stock at this time.
However, the Big Board noted that the stock would remain on review. As reported, in October, the Exchange warned Dyersburg that it was not in compliance for continued listing and asked it to submit the plan.
“What we did is simply inform them what it is we’re doing and why we’re doing it and essentially what our financial plan is for fiscal 2000,” said T. Eugene McBride, chairman and chief executive officer of the Charlotte, N.C.-based company.
McBride said the business plan presented to the exchange was a continuation of the strategy the knitter has pursued in recent years.
“Clearly, one of the things we’re focused on is to rebuild the momentum that we had in polyester fleece and the outerwear market,” he said. “We’re focused on branded manufacturers and garment packaging. Those are the areas that we really have got everybody’s attention focused on.”
The NYSE will review Dyersburg’s performance quarterly to ensure that it complies with the plan. It will also evaluate the stock’s performance over the next six months. If its market capitalization has not improved or the company’s 30-day average share price is less than 1 at the end of that period, the stock will be delisted, Dyersburg said in a statement. If Dyersburg’s total market capitalization doesn’t reach $15 million by March 2001, the stock will then be delisted from NYSE, the statement said.
In Friday’s trading, Dyersburg shares rose 1/4 — 36.4 percent — to close at 15/16. The 52-week high was 3 7/8 and the low was 7/32. Its market capitalization was $12.5 million. On Monday, the mill’s shares slipped 1/8 to 13/16.
For the year ended Oct. 2, Dyersburg lost $18.2 million, or $1.37 per share, on sales of $311.5 million. According to First Call, the consensus estimate for fiscal 2000 is break-even results and for 2001 is earnings of 30 cents per share.