Kontoor Brands, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

12 Months Ended

Dec. 28, 2019

Quarterly Financial Information Disclosure [Abstract]

QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

QUARTERLY FINANCIAL INFORMATION (UNAUDITED)



(In thousands, except per share amounts)	First Quarter ⁽¹⁾		Second Quarter ⁽²⁾		Third Quarter ⁽³⁾		Fourth Quarter ⁽⁴⁾		Full Year ⁽⁵⁾
Year Ended December 2019
Net revenues	$	648,344	$	609,746	$	638,138	$	652,611	$	2,548,839
Operating income	25,195		53,520		31,028		58,547		168,290
Net income	$	15,413	$	37,986	$	14,502	$	28,753	$	96,654
Earnings per common share ⁽⁵⁾
Basic	$	0.27	$	0.67	$	0.26	$	0.51	$	1.71
Diluted	0.27		0.67		0.25		0.50		1.69
Dividends per common share	$	—	$	—	$	0.56	$	0.56	$	1.12

(In thousands, except per share amounts)	First Quarter ⁽¹⁾		Second Quarter ⁽²⁾		Third Quarter ⁽³⁾		Fourth Quarter ⁽⁴⁾		Full Year ⁽⁵⁾
Year Ended December 2018
Net revenues	$	669,663	$	663,856	$	704,246	$	726,233	$	2,763,998
Operating income	92,408		75,734		95,284		69,616		333,042
Net income	$	79,696	$	60,458	$	71,018	$	51,902	$	263,073
Earnings per common share ⁽⁵⁾
Basic	$	1.41	$	1.07	$	1.25	$	0.92	$	4.64
Diluted	1.41		1.07		1.25		0.92		4.64
Dividends per common share	$	—	$	—	$	—	$	—	$	—

⁽¹⁾During the first quarter of 2019, the Company recorded costs of $36.6 million ($33.4 million after-tax) related to cost optimization of business activities under restructuring programs (consisting primarily of severance and employee-related benefits) and the Separation and establishment of Kontoor as a standalone public company ("Separation costs"). During the first quarter of 2018, the Company recorded restructuring and Separation costs of $1.9 million ($1.5 million after-tax).

⁽²⁾ During the second quarter of 2019, the Company recorded restructuring and Separation costs of $12.8 million ($10.1 million after-tax). During the second quarter of 2018, the Company recorded restructuring and Separation costs of $2.0 million ($1.7 million after-tax).

⁽³⁾During the third quarter of 2019, the Company recorded restructuring and Separation costs of $19.4 million ($14.9 million after-tax) and a non-cash impairment of intangible asset of $32.6 million ($25.2 million after-tax) related to the Rock & Republic^® trademark intangible asset. During the third quarter of 2018, the Company recorded restructuring and Separation costs of $1.2 million ($0.1 million after-tax).

⁽⁴⁾During the fourth quarter of 2019, the Company recorded restructuring and Separation costs of $14.4 million ($11.0 million after-tax) and additional expenses related to actions taken to exit certain points of distribution in India of $12.3 million ($10.2 million after-tax). During the fourth quarter of 2018, the Company recorded restructuring and Separation costs of $23.4 million ($18.4 million after-tax).

⁽⁵⁾Per share and full year amounts are computed independently for each quarter presented using unrounded numbers. The sum of the quarterly amounts may not equal the full year amount due to the changes in average quarterly shares outstanding and rounding.