Kontoor Brands Inc
For the period ended Sep 28, 2024. Filed Oct 31, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 28, 2024 · Filed Oct 31, 2024
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
| ☑ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|
For the quarterly period ended September 28, 2024
or
| ☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|
For the transition period from ________ to ________
Commission file number:001-38854
(Exact name of registrant as specified in its charter)
| North Carolina | 83-2680248 |
|---|---|
| (State or other jurisdiction of incorporation or organization) | (I.R.S. employer identification number) |
400 N. Elm Street
Greensboro, North Carolina 27401
(Address of principal executive offices)
(336)332-3400
(Registrant’s telephone number, including area code)
| Securities registered pursuant to Section 12(b) of the Act: | ||
|---|---|---|
| Title of each class | Trading symbol(s) | Name of each exchange on which registered |
| Common Stock, no par value | KTB | New York Stock Exchange |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes þ No¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large accelerated filer | ☑ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | ☐ | Emerging growth company | ☐ |
|---|---|---|---|---|---|---|---|---|---|
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨ | |||||||||
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No þ
The number of shares of Common Stock of the registrant outstanding as of October 25, 2024 was 55,141,472.
Table of Contents
| Page | |
|---|---|
| Part I — Financial Information | |
| Item 1. Financial Statements (Unaudited) | 3 |
| Consolidated Balance Sheets: September 2024, December 2023 and September 2023 | 3 |
| Consolidated Statements of Operations: Three and nine months ended September 2024 and September 2023 | 4 |
| Consolidated Statements of Comprehensive Income: Three and nine months ended September 2024 and September 2023 | 5 |
| Consolidated Statements of Cash Flows: Nine months ended September 2024 and September 2023 | 6 |
| Consolidated Statements of Equity: Three and nine months ended September 2024 and September 2023 | 7 |
| Notes to Consolidated Financial Statements | 8 |
| Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 22 |
| Item 3. Quantitative and Qualitative Disclosures about Market Risk | 31 |
| Item 4. Controls and Procedures | 31 |
| Part II — Other Information | |
| Item 1. Legal Proceedings | 32 |
| Item 1A. Risk Factors | 32 |
| Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | 32 |
| Item 5. Other Information | 33 |
| Item 6. Exhibits | 33 |
| Signatures | 34 |
Kontoor Brands, Inc. Q3 FY24 Form 10-Q 2
PART I — FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)
Consolidated Balance Sheets
| (In thousands, except share amounts) | September 2024 | December 2023 | September 2023 |
|---|---|---|---|
| ASSETS | |||
| Current assets | |||
| Cash and cash equivalents | $269,427 | $215,050 | $77,828 |
| Accounts receivable, net | 230,435 | 217,673 | 236,816 |
| Inventories | 461,510 | 500,353 | 605,234 |
| Prepaid expenses and other current assets | 104,855 | 110,808 | 113,186 |
| Total current assets | 1,066,227 | 1,043,884 | 1,033,064 |
| Property, plant and equipment, net | 106,842 | 112,045 | 110,399 |
| Operating lease assets | 54,638 | 54,812 | 63,114 |
| Intangible assets, net | 11,778 | 12,497 | 12,553 |
| Goodwill | 209,843 | 209,862 | 209,413 |
| Other assets | 203,795 | 212,339 | 197,387 |
| TOTAL ASSETS | $1,653,123 | $1,645,439 | $1,625,930 |
| LIABILITIES AND EQUITY | |||
| Current liabilities | |||
| Short-term borrowings | $— | $— | $— |
| Current portion of long-term debt | — | 20,000 | 17,500 |
| Accounts payable | 201,863 | 180,220 | 182,448 |
| Accrued and other current liabilities | 204,375 | 171,414 | 168,356 |
| Operating lease liabilities, current | 21,050 | 21,003 | 20,975 |
| Total current liabilities | 427,288 | 392,637 | 389,279 |
| Operating lease liabilities, noncurrent | 36,572 | 36,753 | 41,348 |
| Other liabilities | 87,350 | 80,215 | 79,084 |
| Long-term debt | 744,986 | 763,921 | 768,595 |
| Total liabilities | 1,296,196 | 1,273,526 | 1,278,306 |
| Commitments and contingencies | |||
| Equity | |||
| Preferred Stock, no par value; shares authorized, 90,000,000; no shares outstanding at September 2024, December 2023 and September 2023 | — | — | — |
| Common Stock, no par value; shares authorized, 600,000,000; shares outstanding of 55,134,865 at September 2024; 55,720,251 at December 2023 and 56,173,518 at September 2023 | — | — | — |
| Additional paid-in capital | 300,537 | 273,197 | 261,966 |
| Retained earnings | 166,033 | 166,567 | 156,491 |
| Accumulated other comprehensive loss | (109,643) | (67,851) | (70,833) |
| Total equity | 356,927 | 371,913 | 347,624 |
| TOTAL LIABILITIES AND EQUITY | $1,653,123 | $1,645,439 | $1,625,930 |
3 Kontoor Brands, Inc. Q3 FY24 Form 10-Q
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.