An equally important goal for us in 1999 is to continue to
strengthen our balance sheet. We expect to continue to generate strong
EBITDA, and we are aggressively managing working capital. We are focused
on reducing our capital expenditures, and our goal in fiscal 1999 is to
spend approximately $50 million, a significant decline from $103 million
in 1996. This reduction reflects substantial prior investments in
technology and the success of our domestic distribution center
consolidation program, which is now near completion.
We anticipate reducing the total debt on our balance sheet in 1999
through the generation of operating cash flow and asset sale proceeds.
We have also ended the common stock repurchase program we conducted in
1998, and we have amended the credit facility with our lender banks to
facilitate the disposition of non-core businesses. We believe these
combined efforts will provide greater financial flexibility to help us
execute our plan and fulfill our growth objectives.
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