ITHACA QUARTER NET RISES TO $1M AFTER REVERSING PRIOR WRITEDOWN

WILKESBORO, N.C. — Ithaca Industries Inc. reported second-quarter earnings of $1 million, or 10 cents a share, against earnings of $641,000 a year ago, after a $2.9 million gain from the reversal of a prior write-down.
The company emerged from Chapter 11 in November 1996. There were no public shares outstanding in the second quarter of 1996.
Earnings before interest, taxes, depreciation and amortization were down 23.2 percent to $4.8 million from $6.3 million.
Sales for the quarter ended Aug. 2 declined by some 22.8 percent to $60.9 million from $78.9 million, reflecting the company’s restructuring plan to eliminate unprofitable products.
The latest quarter included approximately $1.4 million in sales of discontinued products, compared with $9.7 million a year ago.
Gross profit improved to 15.9 percent of sales from 14.8 percent last year.
“Our initiatives aimed at reducing costs in all areas of the business are beginning to yield results, as demonstrated by our second quarter, which boosted our first-half results,” Jim D. Waller, chairman, president and chief executive, said in a statement. “Those actions have positioned Ithaca favorably for the future.
Waller said overstock conditions at some of Ithaca’s retail customers are beginning to return to “more normal” levels, which should produce moderate revenue growth, as retailers begin to replenish their stock.
For the six months, Ithaca earned $854,000, or 9 cents a share, against a loss of $658,000, including the special gain.
Sales were down approximately 32.2 percent to $119.7 million from $176.5 million, reflecting the restructuring changes.
Ithaca manufactures private label underwear and women’s hosiery.

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