Levi Strauss reports $238 million of cash, $1.7 billion of debt

By Lisa Kerner

Charlotte, N.C., April 10 - Levi Strauss & Co. reported cash and cash equivalents of $238 million as of Feb. 26 and $555 million available under its revolving credit facility during its first-quarter 2012 earnings call on Tuesday.

The San Francisco-based apparel maker company ended the quarter with $1.7 billion of net debt, compared with $1.8 billion at the end of 2011.

Chief financial officer Blake Jorgensen said he is comfortable with the company's liquidity position.

Cash from operating activities was up at $105 million, versus $46 million for the prior-year period, reflecting higher trade receivable collections.

Levi Strauss also reported net income of $49 million during the quarter, compared with $41 million during the same quarter of 2011. The increased net income was attributed to revenue growth and lower advertising expenses, partially offset by lower gross margins reflecting the adverse impact of cotton prices.

Jorgensen said Levi Strauss expects to pay a dividend in the second quarter pending board approval.

The CFO said the company is pleased with its first-quarter results, but "we are cautious as we move forward due to the ongoing difficult economic environment, the impact of which is increasing in some of our emerging markets."

Levi Strauss will continue to be pressured by high cotton costs through the second quarter as well as by organization transitional costs over the next few quarters and as the company positions for long-term profitable growth, Jorgensen said.

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