MIRA
INFORM REPORT
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Report Date : |
29.06.2007 |
IDENTIFICATION DETAILS
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Name : |
HANESBRANDS INC. |
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Registered Office : |
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Country : |
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Date of Incorporation : |
30/09/2005 |
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Legal Form : |
Corporation -
Public |
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Line of Business : |
Engaged in the
design, manufacture, source, and sale of apparel for men, women, and
children. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
IDENTIFICATION &
EXECUTIVE SUMMARY
Company Name: HANESBRANDS
INC.
Address:
City:
State/Province:
Zip Code: 27105
Country: UNITED
STATES
Telephone: 336-519-8080
Facsimile: 336-519-8137
In KUSD As of:
31/12/2006
Sales /
Revenue: 2,250,473
Net Income: 74,139
Total Equity: 69,271
Number of
Employees: 49,000
Legal Form: Corporation
- Public
Website: www.hanesbrands.com
Opinion: up
to $100,000
Business Activity: The Firm is engaged in the design,
manufacture, source, and sale of apparel for men,
women, and
children.
NOTE TO CLIENT
The Company does not
file shareholder information.
Amount
Requested: 10,000,000
The amounts
requested and advised are expressed in:
USD
IMPERATIVES
The following
information was provided by an outside source:
On June 28, 2007 The
Firm will cut 5,300 jobs and close nine sewing and assembly operations as it
moves production to lower cost operation in Asia and
LEGAL
Legal Form: Corporation -
Public
Since (D/M/Y): 30/09/2005
State/Province of Incorporation:
MD
Status: ACTIVE
Previous Legal Form:
Company is required
to publish an annual financial report.
The Company is
incorporated in the state of
Name: HANESBRANDS INC.
Dept. ID #: D10884971
Principal
Office:
Resident Agent: CSC LAWYERS INCORPORATING SERVICE COMPA
Status: INCORPORATED
Good Standing: Yes
Business Code: Ordinary
Business - Stock
Date of
Formation: 09/30/2005
State of
Stock/Nonstock: Stock
Close/Not
Close: Not Close
----------------------------------------------------------------------
The Company is
qualified to do business in the state of
Name: HANESBRANDS INC.
SOSID: 0856919
Status: Current-Active
Date Formed: 7/18/2006
Citizenship: Foreign
State of
Duration: Perpetual
Registered Agent
Agent Name: Corporation Service Company
Registered Office
Address:
Registered Mailing
Address:
Principal Office
Address:
Winston
Principal Mailing
Address:
Winston
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STOCK QUOTE
Ticker: HBI
Exchange: NYSE
As of Jun. 27, 2007:
Closing Price: US$
27.02
52 Weeks
High/Low: $ 29.65 / $ 17.75
Shares
Outstanding: 96,417,000
Market Value: $
2,605,187,340
Managers/Key
Personnel
Mr. Lee A.
Chaden Chairman Of The Board Of Directors
Mr. Richard A.
Noll Chief Executive Officer
Mr. E. Lee Wyatt Jr. Chief Financial Officer
Mr. Michael
Flatow Executive Vice President
The Company has the
following global subsidiaries:
BA International,
L.L.C.
Caribesock, Inc.
Caribetex, Inc.
CASA International,
LLC
Ceibena Del, Inc.
Hanes Menswear, LLC
Hanes Puerto Rico,
Inc.
Hanesbrands Direct,
LLC
Hanesbrands
Distribution, Inc.
HBI Branded Apparel
Limited, Inc.
HBI Branded Apparel
Enterprises, LLC
HBI Playtex
HbI International,
LLC
HBI Sourcing, LLC
Inner Self, LLC
Jasper-Costa Rica,
L.L.C.
National Textiles,
L.L.C.
NT Investment
Company, Inc.
Playtex Dorado, LLC
Playtex Industries,
Inc.
Playtex Marketing
Corporation
Seamless Textiles,
LLC
UPCR, Inc.
UPEL, Inc.
Bal-Mex S. de R.L.
de C.V.
Canadelle LP
Canadelle Holdings
Corporation Limited
Cartex Manufacturera
S. A.
Caysock, Inc.
Caytex, Inc.
Caywear, Inc.
Ceiba Industrial, S.
de R.L.
Champion Products S.
de R.L. de C.V.
Choloma, Inc.
Confecciones
Atlantida S. de R.L.
Confecciones de
Nueva Rosita S. de R.L. de C.V.
Confecciones El
Pedregal Inc.
Confecciones El
Pedregal S.A. de C.V.
Confecciones del
Valle, S. de R.L. de C.V.
Confecciones Jiboa
S.A. de C.V.
Confecciones La
Caleta, Inc.
Confecciones La
Herradura S.A. de C.V.
Confecciones La
Libertad, S.A. de C.V.
DFK International
Ltd.
Dos Rios
Enterprises, Inc.
Hanes Caribe, Inc.
Hanes Choloma, S. de
R. L.
Hanes
Hanes de Centro
America S.A.
Hanes de
Hanes de Honduras S.
de R.L. de C.V.
Hanes Dominican,
Inc.
Hanesbrands Japan
Inc.
Hanes Panama Ltd.
Hanes Brands
Incorporated de Costa Rica,
Hanesbrands
Argentina S.A.
Hanesbrands Brasil
Textil Ltda.
Hanesbrands
Hanesbrands
Dominicana, Inc.
Hanesbrands Europe
GmbH
Hanesbrands
Philippines Inc.
Hanesbrands (HK)
Limited
Hanesbrands (
HBI Alpha Holdings,
Inc.
HBI Beta Holdings,
Inc.
BANKS
NC
Telephone:
Facsimile:
Account Number:
Account Manager:
As of September
2006, the Company incurred US$2.6 billion of debt in the form of a new senior
secured credit facility.
THE HONG KONG AND
Telephone:
Facsimile:
Account Number:
Account Manager:
The Firm does not
mention there relationship with the provided bank.
PAYMENT HISTORY
BUSINESS
DATE LAST PAYMENT CREDIT BALANCE
CUR 1- 31- 61-
CATEGORY
REPTD
---------- ----- ----- ------- --------
-------- --- --- --- --- --- --------
AIR TRANS
07-04 07-03 0000000 16900
5100 78 6 0
5 11 CUST 14 YR
APPAREL
07-05 07-04 VARIED 43900 0
0 0 0
0 0 CUST 97 YR
APRL MENS
07-06 00-00 NET 30 32600 1100
0 94 6
0 0
CHEMICALS
07-04 07-02 NET 30 14900 0
0 0 0
0 0
FACTOR
07-03 00-00 VARIED 60600
0 0 0
0 0 0
FREIGHT
07-04 06-11 VARIED 0 0
0 0 0
0 0
FREIGHT
07-05 00-00 VARIED 9600 1300
100 0 0 0 0
FRGHT FWRD 07-05 06-09 VARIED 500
500 0 0
0 0 100
MACH DISTR 07-04 07-04 1/10N30 600 300
100 0 0 0
0 CUST 12 YR
PACKAGING
07-06 06-12 NET 30 500 0
0 0 0
0 0 CUST
5 YR
PERSNLSVCS 07-05 07-05 ROI 6000
6000 24 76
0 0 0
SAFTY PROD 07-05 00-00 NET 30 0
0 0 0 0 0 0
TEXTILES
07-04 07-02 NET 45 12700 0
0 0 0
0 0 CUST
1 YR
TRANSPORTN 07-03 00-00 NET 30 0
0 0 0
0 0 0
CUST < 1 Y
TRNS EQUIP 07-05 00-00 NET 7 100
0 0
0 0 0
0 CUST 1 YR
TRUCK DLR
07-06 00-00 CONTRCT 50500
3500 99 1
0 0 0
AIR TRANS
06-11 00-00 NET 30 3900 3900
5 8 0
43 44 COLLECTION
GIFTWARE
06-11 00-00 N30 1300 1300
83 0 17
0 0
CURRENT QUARTER 249400 17800
60 33 0
1 6
Payment Trends
INDUSTRY BUSINESS BALANCE
CUR 1- 31- 61-
DATE
CUR DBT DBT $ %
30 60 90 91+
--------
--- --- ---
-------- --- --- --- --- ---
20070600
0 7 13 83700 45
48 2 2 3
20070500
0 7 5 155700 79
18 1 1 1
20070400
0 6 5 132400 81
15 2 1 1
20070300
0 7
5 134600 80 18 0
1 1
20070200
0 7 6 112100 68
30 0 1 1
20070100
0 8 12 126900 19
81 0 0 0
Payment History - Quarterly Averages
BALANCE CUR 1-
31- 61-
QUARTER
YEAR DBT $ %
30 60 90 91+
-------- ------ --- -------- --- --- --- --- ---
First
2007 5 126000 76
21 1 1 1
Fourth
2006 12 69000 23
76 0 0 1
Third
2006 5 18300 72
27 1 0 0
Second
2006 5 8600 76
21 3 0 0
First
2006 9 10600 78
10 5 7 0
FINANCIAL INFORMATION
FINANCIAL FIGURES
Year-End (D/M/Y): 31/03/2007 31/12/2006 31/12/2005
Quarterly Consolidated Consolidated
Sales / Revenues 1,039,894 2,250,473 4,472,832
Interest Income - -7,401 8,795
Gross Margin 339,679 720,354 1,485,332
Operating Income (Loss) 68,866 190,074 433,600
Interest on Loans 51,717 70,753 26,075
Other Expenses -61,428 -59,568 3,229,134
RESULTS
Income before Taxes 17,149 111,920 416,320
Income Tax 5,145 37,781 93,827
Net Income 12,004 74,139 322,493
ASSETS
Cash and Equivalents 149,290 155,973 298,252
Inventory 1,253,668 1,216,501 1,236,586
Accounts Receivables 710,389 624,807 2,172,209
Other Current Assets - 73,899 48,765
Total Current Assets 2,113,347 2,071,180 3,755,812
Property Plant & Equip 530,882 556,866 617,021
Other Fixed Assets 390,640 388,868 103,023
Total Fixed Assets 1,341,236 1,364,440 1,135,263
Intangibles 419,714 418,706 415,019
Total Assets 3,454,583 3,435,620 4,891,075
LIABILITIES
Trade Creditors 615,847 586,708 1,330,485
Other Current Liab - 834 275,385
Total Current Liab 646,776 611,181 1,611,954
Long Term Debt 2,474,625 2,484,000 2,786
Other Long Term Liab 241,862 271,168 47,201
Total Long Term Liab 2,716,487 2,755,168 49,987
Total Liabilities 3,363,263 3,366,349 1,661,941
EQUITY
Retained Earnings 45,028 33,024 -
Total Equity 91,320 69,271 3,229,134
FINANCIAL ANALYSIS
Actual Previous Percentage of total assets
31/03/2007 31/12/2006 31/03/2007
31/12/2006
Cash and Equivalents 149,290 155,973 4.32 4.54
Inventory 1,253,668 1,216,501 36.29 35.41
Other Current Assets 0 73,899 0.00 2.15
Total Current Assets 2,113,347 2,071,180 61.18 60.29
Intangibles 419,714 418,706 12.15 12.19
Total Assets 3,454,583 3,435,620 100.00
100.00
Total Current Liab 646,776 611,181 18.72 17.79
Long Term Debt 2,474,625 2,484,000 71.63 72.30
Other Long Term Liab 241,862 271,168 7.00 7.89
Total Liabilities 3,363,263 3,366,349 97.36 97.98
Total Equity 91,320 69,271 2.64 2.02
CURRENT OPERATIONS
NAICS Code: 448
Clothing and Clothing Accessories Stores
Number of
Employees: 49,000
Business Activity:
The Firm is engaged
in the design, manufacture, source, and sale of apparel for men, women, and
children. Their product portfolio
includes t-shirts, bras, panties, men’s underwear, kids underwear, socks,
hosiery, casual-wear, thermals, sleepwear, fleece, and active-wear. They offer
their products under the Hanes, Champion, Playtex,
The Firm owns and
leases facilities supporting administrative, manufacturing, distribution and
direct outlet activities. They own an approximately 470,000 square-foot
headquarters located in
As of December 30,
2006, The Firm had 164 manufacturing, distribution and office facilities in 21
countries. They owned 76 of manufacturing, distribution and office facilities
and leased the others as of December 30, 2006. The leases for these facilities
expire between 2007 and 2016, with the exception of some seasonal warehouses
that they lease on a month-by-month basis.
As of December 30, 2006, they also operated 220 direct outlet stores in
41 states, most of which are leased under five-year, renewable lease agreements.
PUBLIC RECORD
DEBTOR INFORMATION
Debtor(s): HANESBRANDS INC.
SECURED PARTY OR CREDITOR INFORMATION
Secured
Party(s): CITIBANK, N.A., AS COLLATERAL
AGENT
COLLATERAL INFORMATION
Collateral Type: UNSPECIFIED
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DEBTOR INFORMATION
Debtor(s): HANESBRANDS INC.
SECURED PARTY OR CREDITOR INFORMATION
Secured
Party(s): CITIBANK, N.A., AS COLLATERAL
AGENT
COLLATERAL INFORMATION
Collateral
Type: UNSPECIFIED
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DEBTOR INFORMATION
Debtor(s): HANESBRANDS, INC
WINSTON
SECURED PARTY OR CREDITOR INFORMATION
Secured
Party(s): RAYMOND LEASING CORPORATION
COLLATERAL INFORMATION
Collateral
Type: LEASED EQUIPMENT
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No judgements, tax
liens or bankruptcy petitions were traced to the Firm.
GENERAL COMMENTS
The Subject is
well-established and is engaged in the design, manufacture, source, and sale of
apparel for men, women, and children. Payment are considered to be generally
satisfactory and a search of public records and bankruptcy courts returned no
derogatory information or record of the Company filing a bankruptcy petition.
Financial statements indicate that the Company is profitable. They are
considered generally acceptable for normal business transactions.
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)