SPEIZMAN INDUSTRIES INC - 10-Q Quarterly Report

FORM 10-Q
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

SPEIZMAN INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)

Not Applicable
(Former name, former address and former fiscal year, if
changed since last report)

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, and (2) has been subject to such filing requirements for the past 90 days.

Indicate the number of shares outstanding of each of the issuer's classes of common stock as of the latest practicable date.

SPEIZMAN INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

		March 29,		June 29,
		2003		2002
		(unaudited)
ASSETS
CURRENT:
Cash and cash equivalents	$	-	$	970,000
Accounts receivable, less allowances of $902,000 and $819,000		12,415,000		10,144,000
Inventories		10,608,000		13,542,000
Income tax refund		-		523,000
Deferred tax asset, current		1,773,000		1,773,000
Prepaid expenses and other current assets		750,000		1,004,000
TOTAL CURRENT ASSETS		25,546,000		27,956,000



PROPERTY AND EQUIPMENT:
Building and leasehold improvements		6,890,000		6,887,000
Machinery and equipment		946,000		939,000
Furniture, fixtures and transportation equipment		1,562,000		1,575,000
Total		9,398,000		9,401,000
Less accumulated depreciation and amortization		(3,552,000)		(3,089,000)

NET PROPERTY AND EQUIPMENT		5,846,000		6,312,000

DEFERRED TAX ASSET, LONG TERM		1,518,000		1,561,000
OTHER LONG-TERM ASSETS		1,072,000		428,000
GOODWILL, NET OF ACCUMULATED AMORTIZATION		3,790,000		3,790,000

	$	37,772,000	$	40,047,000

SPEIZMAN INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

		March 29,		June 29,
		2003		2002
		(unaudited)
LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:
Accounts payable	$	9,426,000	$	9,994,000
Customers’ deposits		1,627,000		1,779,000
Accrued expenses		562,000		545,000
Current maturities of long-term debt		5,447,000		6,565,000
Current maturity of obligation under capital lease		135,000		121,000

TOTAL CURRENT LIABILITIES		17,197,000		19,004,000

Long-term debt		4,049,000		4,544,000
Obligation under capital lease		4,288,000		4,380,000
TOTAL LIABILITIES		25,534,000		27,928,000


STOCKHOLDERS’ EQUITY:
Common stock – par value $.10; authorized 12,000,000 shares, issued 3,396,228, outstanding 3,255,428		340,000		340,000
Additional paid-in capital		13,047,000		13,047,000
Accumulated other comprehensive loss		(137,000)		(169,000)
Accumulated deficit		(425,000)		(512,000)
Total		12,825,000		12,706,000
Treasury stock, at cost, 140,800 shares		(587,000)		(587,000)
TOTAL STOCKHOLDERS’ EQUITY		12,238,000		12,119,000

	$	37,772,000	$	40,047,000

SPEIZMAN INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

	(Unaudited)				(Unaudited)
	For the Three Months Ended				For the Nine Months Ended
	03-29-03		03-30-02		03-29-03		03-30-02
	(13 Weeks)		(13 Weeks)		(39 Weeks)		(39 Weeks)

REVENUES	$	15,007,000	$	12,932,000	$	47,984,000	$	40,216,000

COST OF SALES		12,505,000		11,216,000		40,216,000		34,916,000

GROSS PROFIT		2,502,000		1,716,000		7,768,000		5,300,000

SELLING EXPENSES		880,000		1,392,000		2,864,000		4,316,000

GENERAL AND ADMINISTRATIVE EXPENSES		1,138,000		1,627,000		3,563,000		4,647,000

LOSS ON GOODWILL IMPAIRMENT		-		1,000,000		-		1,000,000

OPERATING INCOME (LOSS)		484,000		(2,303,000)		1,341,000		(4,663,000)

Net Interest Expense		400,000		399,000		1,199,000		1,536,000

INCOME (LOSS) BEFORE INCOME TAX EXPENSE (BENEFIT)		84,000		(2,702,000)		142,000		(6,199,000)

INCOME TAX EXPENSE (BENEFIT)		33,000		(488,000)		55,000		(1,518,000)

NET INCOME (LOSS)	$	51,000	$	(2,214,000)	$	87,000	$	(4,681,000)

Basic loss per share		$ 0.02		(0.68)		$ 0.03		(1.44)
Diluted loss per share		0.02		(0.68)		0.03		(1.44)

Weighted average shares Outstanding:
Basic		3,255,428		3,255,428		3,255,428		3,255,428
Diluted		3,255,428		3,255,428		3,255,428		3,255,428

SPEIZMAN INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	(Unaudited)
	For the Nine Months Ended
	03-29-03			03-30-02
	(39 Weeks)				(39 Weeks)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)		$	87,000		$	(4,681,000)
Adjustments to reconcile net income (loss) to cash provided by operating activities:
Depreciation		489,000			646,000
Amortization		-			184,000
Provision for inventory obsolescence		-			238,000
Provision for losses on accounts receivable		83,000			240,000
Deferred income taxes		75,000			(1,448,000)
Loss on impairment of goodwill		-			1,000,000
Gain on disposal of assets		(3,000)			(13,000)
(Increase) decrease in:
Accounts receivable		(2,354,000)			8,072,000
Inventories		2,934,000			1,838,000
Income Tax Receivable		523,000			-
Prepaid expenses and other current assets		254,000			204,000
Other assets		(644,000)			45,000
Increase (decrease) in:
Accounts payable		(568,000)			(2,589,000)
Trade notes payable		(1,248,000)			-
Accrued expenses and customers’ deposits		(135,000)			(1,841,000)
Net cash (used in) provided by operating activities		(507,000)			1,895,000
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		(63,000)			(13,000)
Proceeds on sale of assets		43,000			124,000
Net cash (used in) provided by investing activities		(20,000)			111,000
CASH FLOWS FROM FINANCING ACTIVITIES:
Net payments on line of credit agreement		(301,000)			(1,478,000)
Principal payments on capital lease obligation		(78,000)			(405,000)
Principal payments on long-term debt		(64,000)			-
Net cash (used in) financing activities		(443,000)			(1,883,000)

NET (DECREASE) INCREASE IN CASH		(970,000)			123,000
CASH AND CASH EQUIVALENTS at beginning of period		970,000			-
CASH AND CASH EQUIVALENTS at end of period		$	-		$	123,000

Supplemental Disclosures:
Cash paid (refunded) during period for:
Interest		$	1,209,000		$	1,543,000
Income taxes		(403,000)			65,000

SPEIZMAN INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

	Common Shares	Common Stock		Additional Paid-In Capital		Retained Earnings (accumulated deficit)		Accumulated Other Comprehensive Loss			Treasury Stock		Comprehensive Loss

BALANCE, JUNE 30, 2001	3,396,228	$	340,000	$	13,047,000	$	4,830,000		$	(264,000)	$	(587,000)
Net loss	-		-		-		(5,342,000)		-			-	$	(5,342,000)
Accumulated Comprehensive loss – Interest rate swap, net of tax	-		- -		-		-		95,000			-		95,000
Comprehensive Loss	-		-		-		-		-			-	$	(5,247,000)
BALANCE, JUNE 29, 2002	3,396,228		340,000		13,047,000		(512,000)		(169,000)			(587,000)
Net income.	-		-		-		87,000		-			-	$	87,000
Accumulated Comprehensive income – Interest rate swap, net of tax	- -		-		-		-		32,000			-		32,000
Comprehensive income	-		-		-		-		-			-	$	119,000
BALANCE, MARCH 29, 2003 (unaudited)	3,396,228	$	340,000	$	13,047,000	$	(425,000)		$	(137,000)	$	(587,000)

SPEIZMAN INDUSTRIES, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present the Registrant's financial position, the results of operations and changes in cash flow for the periods indicated. Any interim adjustments are of a normal recurring nature unless otherwise indicated in the Notes to the Condensed ConsolidatedFinancial Statements.

The accounting policies followed by the Registrant are set forth in the Registrant's Form 10-K for the fiscal year ended June 29, 2002, which is incorporated by reference.

The Company, in some instances with its laundry equipment and services business, is engaged in installation projects for customers on a contract basis. Some contracts call for progress billings. In such cases, the Company uses the percentage of completion method to recognize revenue whereby sales are recorded based upon the ratio of costs incurred to total estimated costs at completion. Deferred revenue was $398,000 at March 29, 2003 and immaterial at June 29, 2002.

Taxes on income are allocated to interim periods on the basis of an estimated annual effective tax rate. Other comprehensive income (losses), if any, are net of an estimated deferred tax expense (benefit). Deferred income taxes at March 29, 2003 and June 29, 2002 consisted primarily of net operating loss carryforwards. The income tax refund represents the anticipated state and federal tax refund for the prior fiscal year.

Basic net income (loss) per share includes no dilution and is calculated by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted net loss per share reflects the potential dilution of securities that could share in the net income of the Company, which consists of stock options using the treasury stock method. In a period with a net loss, the weighted average shares outstanding will be the same for basic and diluted net loss per share.

The Company had one interest rate swap derivative designated as a cash flow hedge at March 29, 2003. The change in the fair market value during the current year was a gain of $32,000 net of income tax expense, and was recognized in Other Comprehensive Income/Loss at March 29, 2003. For interest rate swap agreements, increases or reductions in interest expense are recognized in the periods in which they accrue.

The Company has a revolving credit facility and a line of credit for issuance of Documentary Letters of Credit with SouthTrust Bank, N.A. Effective March 31, 2003, the Company entered into a Sixth Amendment and Forbearance Agreement relating to its credit facility with SouthTrust Bank, extending the maturity date until December 31, 2003. The credit facility, as amended, provides a revolving credit facility up to $10.0 million and an additional line of credit for issuance of documentary letters of credit up to $7.5 million. The availability under the combined facility is limited to a borrowing base as defined by the bank. The Company, as of March 29, 2003, had borrowings with SouthTrust Bank of $4.7 million under the revolving credit facility and had unused availability of $2.1 million. Advances under the revolving credit facility and line of credit as amended are broken down into two components for the calculation of interest expense: the London Interbank Offered Rate (LIBOR) component that accrues interest at the LIBOR rate plus 1½% to 2½%, and a base rate component that accrues interest at prime plus 1¼%. The rates are scaled based upon the Company’s funded debt as defined in the original Credit Facility Agreement. Prior to the Second Amendment and pursuant to the terms of the First Amendment dated November 13, 2000, the LIBOR component accrued interest at the LIBOR rate plus 3%, and the base rate component accrued interest at prime plus 1¼%. The Company also has in effect an interest rate swap derivative that fixes the interest rate for advances under the LIBOR component at 7.79% plus the applicable margin for borrowing levels of $5.0 million, which expires on June 2, 2003. Upon the expiration of the interest rate swap agreements, all borrowings under the revolving credit facility will accrue interest at prime plus 1¼% until June 30, 2003. Effective July 1, 2003, interest for all borrowings will accrue at prime plus 3.0%. As of March 29, 2003, amounts outstanding of $3.0 million were advanced under the LIBOR component at a rate of 1.30% plus 2.5%. The facility is secured by substantially all the assets of the Company.

Other long-term obligations primarily include trade debt with payment dates beyond one year. Effective February 2002, the Company restructured its payment terms with Lonati S.p.A., its largest supplier, on current trade obligations amounting to $5.2 million, less $1.0 million owed to the Company. The net balance of $4.2 million is payable over a 24-month period commencing March 1, 2004. The restructured terms also include an interest charge at 6% per annum, payable quarterly commencing September 2002. The agreement also provides the Company through February 2006 with exclusive distribution rights for Lonati’s product line and the ability to purchase inventory in U.S. dollars. At March 29, 2003, the Company was in compliance with all of its covenants related to the Lonati agreement.

In fiscal 2002, the Company restructured a refundable customer deposit in the amount of $1.2 million included in trade notes payable below, to a two-year period, payable monthly commencing January 31, 2002. The amount of this obligation bears no interest.

The Company operates primarily in two segments of business, textile equipment (“textile”) and laundry equipment and services (“laundry”). Corporate operations include general corporate expenses, amortization of debt issuance costs, interest expense related to the Company’s credit facility and elimination of intersegment balances. The table below summarizes financial data by segment.

Segment Information	Nine Months	Total Textile		Total Laundry
	Ended March		Segment		Segment		Corporate		Total

Net Revenues	2003	$	28,690,000	$	19,294,000	$	-	$	47,984,000
	2002		22,487,000		17,729,000		-		40,216,000

Earnings (Loss) before Interest &Taxes	2003	$	1,385,000	$	857,000	$	(901,000)	$	1,341,000
	2002		(3,175,000)		(543,000)		(945,000)		(4,663,000)

Capital Expenditures	2003	$	53,000	$	10,000	$	-	$	63,000
	2002		11,000		2,000		-		13,000

Depreciation and Amortization	2003	$	224,000	$	24,000	$	241,000	$	489,000
	2002		582,000		63,000		185,000		830,000

Interest Expense	2003	$	682,000	$	4,000	$	513,000	$	1,199,000
	2002		679,000		6,000		851,000		1,536,000

Segment Information	Three Months	Total Textile		Total Laundry
	Ended March		Segment		Segment		Corporate		Total

Net Revenues.	2003	$	9,505,000	$	5,502,000	$	-	$	15,007,000
	2002		5,743,000		7,189,000		-		12,932,000

Earnings (Loss) before Interest &Taxes	2003	$	481,000	$	375,000	$	(372,000)	$	484,000
	2002		(2,235,000)		178,000		(246,000)		(2,303,000)

Capital Expenditures	2003	$	35,000	$	-	$	-	$	35,000
	2002		-		-		-		-

Depreciation and Amortization	2003	$	74,000	$	8,000	$	80,000	$	162,000
	2002		194,000		21,000		61,000		276,000

Interest Expense .	2003	$	228,000	$	1,000	$	171,000	$	400,000
	2002		46,000		2,000		351,000		399,000

Total Assets
March 29, 2003 (unaudited)		$	28,522,000	$	9,250,000	$	-	$	37,772,000
June 29, 2002 .		$	30,258,000	$	9,789,000	$	-	$	40,047,000

Goodwill
March 29, 2003 (unaudited) ..		$	622,000	$	3,168,000	$	-	$	3,790,000
June 29, 2002		$	622,000	$	3,168,000	$	-	$	3,790,000

In 2002, the loss before interest and taxes for the textile segment includes a loss on impairment of goodwill of $1,000,000.

The Company adopted the disclosure only provisions of Statement of Financial Standards No. 123, Accounting for Stock-Based Compensation. In addition, the Company adopted the disclosure provisions of SFAS No. 148, Accounting for Stock-Based Compensation, which amends the disclosure requirements of SFAS No. 123. SFAS No. 148 had no impact on net income (loss) or stockholders’ equity. The Company uses the intrinsic value method of accounting for the plan in accordance with Accounting Principle Board Opinion No. 25, and, therefore, recognizes no compensation expense for stock options. No stock options were issued for the nine months ended

March 29, 2003. Pro forma net income and earnings per share, as if the fair value method in SFAS No. 123 had been used to account for stock-based compensation, and the assumptions used for nine months ended March 29, 2003 and March 30, 2002 are as follows:

		For the Nine Months ended		For the Nine Months ended
		March 29,		March 30,
		2003		2002
Income (Loss):
As reported	$	87,000	$	(4,681,000)
Compensation expense		(16,000)		(60,000)
Pro forma	$	71,000	$	(4,741,000)

Basic income (loss) earnings per share:
As reported	$	0.03	$	(1.44)
Compensation expense		-		(0.02)
Pro forma	$	0.03	$	(1.46)

Black-Scholes assumptions *
Fair market value of option granted		$ 0.63		$ 0.63
Risk-free interest rate		4.9%		4.9%
Dividend yield		0%		0%
Stock volatility		73.9%		73.9%
Expected option life		10 years		10 years

The Company has outstanding commitments backed by letters or credit of approximately $5,954,000 and $5,012,000 at March 29, 2003 and June 29, 2002 respectively, relating to the purchase of machine inventory for delivery to customers.

On June 29, 2000, Hazel Hernandez filed a lawsuit against the Company and Wink Davis Equipment Company, Inc. (a wholly owned subsidiary of Speizman Industries) in the U.S. District Court for the Northern District of Illinois, Case No. 00-CV-5183 and is seeking damages of $2.7 million. The plaintiff’s claims include allegations that the Company and Wink Davis Equipment Company, Inc. placed an unreasonably dangerous machine in the stream of commerce, were negligent in the design, manufacture, sale, and distribution of the machine, and other grounds. The court has dismissed the claim against Speizman Industries. On October 15, 2002, the U.S. District Court for the Northern Illinois District of Illinois granted Wink Davis’ motion for dismissal and good faith regarding settlement. Wink Davis assumed no responsibility in the settlement agreement.

The Company filed a lawsuit with one of its customers for nonperformance associated with certain sales contracts. On July 31, 2001, the defendant filed a counterclaim alleging damages due to delay in delivery of machines and defects in operation in the amount of $6.8 million (Canadian) or approximately U.S. $4.3 million, plus interest and penalties in an unspecified amount. Based upon discussions with its legal counsel, the Company believes the counterclaim is without merit and intends to defend its position vigorously.

In the normal course of business, the Company is named in various other lawsuits. The Company vigorously defends such lawsuits, none of which are expected to have a material impact on operations, either individually or in the aggregate.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This report contains forward-looking statements that have been made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current expectations, estimates, and projections about Speizman's industry, management beliefs, and certain assumptions made by Speizman's management. Words such as "anticipates," "expects," "intends," "plans," "believes,” "seeks," "estimates," variations of such words, and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict; therefore, actual results may differ materially from those expressed or forecasted in any such forward-looking statements. Such risks and uncertainties include those set forth herein under the caption "Other Risk Factors.” Unless required by law, the Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise. However, readers should carefully review the risk factors set forth in other reports and documents that the Company files from time to time with the Securities and Exchange Commission.

Speizman Industries, Inc. is a major distributor of specialized industrial machinery, parts and equipment. The Company operates primarily in two segments, textile equipment (“textile segment”) and laundry equipment and services (“laundry segment”). In the textile segment, the Company distributes sock-knitting machines, other knitting equipment, automated boarding, finishing and packaging equipment used in the sock industry, and related parts. In the laundry segment, the Company sells commercial and industrial laundry equipment, including the distribution of machines and parts as well as providing installation and after sales service. The Company refers to its operations in the textile segment as Speizman Industries, and the laundry segment as Wink Davis Equipment Co., Inc. (“Wink Davis”).

Revenues increased to $15.0 million for the third quarter of fiscal 2003 from $12.9 million for third quarter in fiscal 2002. Revenues for the textile division increased to $9.5 million in the third quarter of fiscal 2003 from $5.7 million for third quarter fiscal 2002. The increase in revenue is due primarily to an 84.0% increase in the sales of new machines in the third quarter of 2003 over the prior year’s third quarter and reflects an increase in demand for the Company’s sock finishing equipment. Revenues for the laundry division decreased to $5.5 million from $7.1 million last year. The decline in revenue reflects a 33.0% reduction in sales of new machines in the third quarter of 2003 as compared to the prior year. This decline is due to the continued sluggishness in the hospitality industry.

For the nine months ended March 28, 2003, total revenues increased 19.2% to $47.9 million from $40.2 million in the prior year. Revenues for the textile division increased to $28.7 million from $22.4 million in the prior year. Laundry revenues increased 8.5% to $19.2 million from $17.7 million in the prior year. The increase in both divisions reflects an increase in sales of new machinery.

Gross profit for the third quarter increased to $2.5 million from $1.7 million in the third quarter of last year. As a percentage of revenues, gross profit increased to 16.7% from 13.3% in the prior year. Third quarter gross margin increased in the textile division from 7.9% in 2002 to 15.1% in 2003. The increase is due primarily to increased demand for the Company’s products in the third quarter of 2003 as compared to the prior year. In the prior year, the Company offered significant discounts on certain products in order to stimulate sales. The increase also reflects a 26.0% increase in the sales of parts and services, on which the Company typically earns a higher margin. Third quarter gross margin for the laundry division increased to 19.5% from 17.5% for the same quarter of last year. The increase is due primarily to a change in product mix. The Company sold fewer large projects in the third quarter of 2003 than in the prior year. Due to the competitive nature of these large projects, the Company experiences lower margins on those sales than on the sales of smaller white machines.

Gross profit for the nine months ended March 29, 2003, increased to $7.7 million from $5.3 million in 2002. As a percentage of sales, gross profit increased to 16.1% from 13.2% last year. The increase in gross profit is attributable to the increase in sales volume noted above, the reduction of service related salaries included in cost of sales for both divisions, and a 23.0% increase in sales of parts and services for both divisions, on which the Company typically earns a higher margin.

Selling expenses decreased to $880,000 in the third quarter of fiscal 2003 from $1.4 million last year. As a percentage of sales, selling expenses decreased to 5.9% from 10.8%. The decrease is due primarily to a change in the Company’s sales compensation plans late in the second quarter of last year that reduced the fixed component of the salesmen’s compensation.

Selling expenses decreased to $2.9 million (5.9% of sales) in the nine months ended March 29, 2003, as compared to $4.3 million (10.8% of sales) in the same period last year. The decrease is primarily due to a change in the Company’s sales compensation plans that reduced the fixed component of the salesmen’s salaries.

General and administrative expenses decreased to $1.1 million (7.6% of sales) in the third quarter of fiscal 2003 from $1.6 million (12.6% of sales) in the third quarter of last year. The reduction in general and administrative expenses reflects management’s continued emphasis on controlling costs, primarily payroll related costs.

For the nine months ended March 29, 2003, general and administrative expenses decreased 23.3% to $3.6 million from $4.6 million in the same period last year. The decrease primarily reflects a reduction in payroll related expenses.

Interest expense decreased to $1.2 million in the nine months ended March 29, 2003, from $1.5 million in the prior year. The decrease is due to reduced borrowing rates and a lower level of borrowing under the Company’s revolving line of credit.

The provision for income tax in the current quarter was $33,000 or 39.0% of the current pre-tax income. This compared to a benefit of $488,000 for income tax for the same period last year or 18.0% of the pre-tax loss. For the nine months period ended March 29, 2003 and 2002, the effective rates were 39.0% and 24.0%, respectively. The difference between the effective tax rates and the statutory tax rates are due to non-deductible expenses for tax purposes such as meal and entertainment expenses.

Net income for the quarter ended March 29, 2003 was $51,000, or $0.02 per basic and diluted share, compared to a net loss of $2.2 million or $0.68 per basic and diluted share for the quarter ended March 30, 2002.

Net income for the nine months ended March 29, 2003, was $87,000 or $0.03 per basic and diluted share, as compared to a net loss of $4.7 million, or $1.44 per basic and diluted share for the same period last year.

The Company has historically satisfied its cash requirements from operations, borrowings under credit facility arrangements, and by negotiating extended terms of trade debt. The Company has a revolving credit facility with SouthTrust Bank, N.A. The agreement with SouthTrust as amended on March 31, 2003, expires on December 31, 2003 and provides a revolving line of credit up to $10.0 million and an additional line of credit for issuance of Documentary Letters of Credit up to $7.5 million. The availability under the combined lines of credit is limited by the percentage of accounts receivable and inventory advance rates determined from time to time by SouthTrust. As of March 29, 2003, the Company’s revolving line of credit was $4.7 million and the usage for documentary letters of credit was $6.0 million. The unused amount available to the Company as determined by the Bank was $2.1 million. Amounts outstanding under the line of credit for direct borrowings bear interest based upon two components: London Interbank Offered Rate (LIBOR) plus the applicable margin (1.5% to 2.5%) for a short term fixed period and prime plus the applicable margin (0% to 1.25%) for the non-fixed period. The rates vary based upon the Company’s funded debt as defined in the loan agreement. Beginning on June 3, 2003, all borrowings under the line will accrue interest at prime plus 1¼% until June 30, 2003. On July 1, 2003, the interest rate will increase to prime plus 3% until the expiration of the agreement. In connection with the SouthTrust facility, the Company granted a security interest in all assets of the Company.

Working capital at March 29, 2003 was $8.3 million, a decrease of $700,000 from $9.0 at June 29, 2002. The working capital ratio at March 29, 2003 was 1.49 compared with 1.47 at June 29, 2002. Net cash used in operating activities was $507,000 for the nine months ended March 29, 2003 compared with $1,895,000 provided by operating activities during the same period in 2002.

The increase of $2.3 million in accounts receivable during the first nine months of fiscal 2003 primarily resulted from greater than average shipment (and sales) of laundry equipment in March 2003.

The reduction in inventory of $2.9 million was primarily due to sales of stock textile equipment. Inventory reserves of $607,000 were released during the first nine months of fiscal 2003 for certain stock equipment that was liquidated at below cost in order to reduce inventory levels.

The income tax refund decreased $523,000 due to receipt of cash associated with the Federal Income tax refund.

Prepaid expenses and other current assets decreased $254,000 during the first nine months of fiscal 2003. The decrease is primarily due to the decrease in prepaid insurance as the Company continues to amortize its annual insurance premiums.

Other long-term assets increased $644,000 during the first nine months of fiscal 2003. The increase is due to the reclassification of accounts receivable to long-term for two customers in which payments are not anticipated within one year due to restructuring of one receivable and litigation associated with the other. Although the accounts have been reclassified as a long-term asset, management believes they will be collected in full.

Cash used in investing activities was $20,000 and resulted from capital expenditures of $63,000 offset by proceeds from sales of fixed assets of $43,000.

Net cash used in financing activities was $443,000 for the nine months ended March 29, 2003 and consisted of $365,000 for principal payments of debt obligations and $78,000 for capital lease obligations.

The Company’s credit facility with SouthTrust matures December 31, 2003. The Company currently does not have the financial resources to repay this debt when it becomes due and will therefore need to refinance this debt prior to maturity. There is no assurance that the Company will be able to refinance this debt with another lender on a timely basis, on commercially reasonable terms, or at all. Additionally, the textile industry has continued to experience tightened lending practices from traditional financial institutions which may further hinder Speizman’s ability to refinance this debt, especially in light of Speizman’s recent financial losses. If Speizman is unable to refinance this debt or obtain needed additional capital, it would be required to significantly reduce its operations, dispose of assets and/or sell additional securities on terms that could be dilutive to current stockholders. However, there is no assurance that additional financing will be available when needed or desired on terms favorable to the Company or at all.

The Company’s discussion and analysis of its financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Management believes the following critical accounting policies, among others, affect its more significant judgments and estimates used in the preparation of its consolidated financial statements.

The major portion of the Company’s revenues consists of sales and commissions on sales of machinery and equipment. The revenue derived therefrom for the textile segment is recognized in full at the time of shipment, and for the laundry segment, at time of installation. In some instances the laundry equipment and services business is engaged in installation projects for customers on a contract basis. Some contracts call for progress billings. In such cases, the Company uses the percentage of completion method to recognize revenue whereby sales are recorded based upon the ratio of costs incurred to total estimated costs at completion. Shipping and handling charges to customers are included in revenues. Costs associated with shipping are included in cost of sales.

In assessing the value of the Company’s goodwill, management must make assumptions regarding estimated future cash flows and other factors to determine the carrying amount of the assets. If these estimates or their related assumptions change in the future, the Company may be required to record impairment charges for these assets. Effective July 1, 2001, the Company adopted Statement of Financial Standards No. 142, "Goodwill and Other Intangible Assets" and is now required to analyze goodwill for impairment issues on an annual basis.

The Company performs its annual impairment test of goodwill on the last day of its fiscal year and more often if circumstances surrounding its business dictate that it do so. For purposes of determining the fair value of its goodwill, the Company computes the net present value of its future cash flows using the five-year average return on investment earned by comparable companies in its industry and compares that to the book value of the reporting segment.

In assessing the value of the Company’s accounts receivable and inventory, management must make assumptions regarding the collectibility of accounts receivable and the market value of the Company’s inventory. In the case of accounts receivable, the Company considers the current and future financial condition of its customers and judgmentally determines the reserve required. In the case of inventory, the Company considers recent sales of similar products, trends in the industry and other factors when establishing an inventory reserve.

The Company has recorded a deferred tax benefit associated with its net operating losses and other timing differences associated with tax regulations and generally accepted accounting principles, because management believes these assets will be recoverable by offsetting future taxable income. If the Company does not return to profitability, or if the loss carryforwards cannot be utilized within federal statutory deadlines (currently 20 years), the asset may be impaired. During fiscal 2002, the Company reduced its deferred tax asset by $200,000 in light of these uncertainties.

Fiscal 2003 Equipment Bookings – The Company experienced a decline in equipment bookings in the textile and laundry divisions during the first nine months of fiscal 2003. Consistent with the cost saving initiatives that began in fiscal year 2001, the Company continues to look for ways to control its expenses to help mitigate the adverse effects from the decline in bookings.

Hosiery Equipment – Shipments of the new generation closed toe sock knitting machine produced by Lonati, S.p.A. of Brescia, Italy, the world’s largest manufacturer of hosiery knitting machines, began in mid-March 2001. The new generation closed toe machines have been commercially accepted and the Company anticipates they could gradually replace most of the conventional athletic sock machines in the United States and Canada over the next four to six years.

Knitted Fabric Equipment – Although the Company experienced an increase in demand in the first nine months of fiscal 2003, the overall market demand for seamless actionwear machines has decreased significantly since its peak two years ago. However, it now appears that only the large, well-capitalized underwear and lingerie firms who have significant resources with brand names and direct relationships with major retail outlets will have the ability to purchase significant quantities of additional seamless garment machines.

Wink Davis – The Company, through Wink Davis, maintains a strong presence in the United States industrial laundry segment through its sale of new equipment, parts and services. Due to the combination of the slowing economy and the effects of September 11, the demand for on premise laundry equipment within the hospitality industry has declined significantly in the past 18 – 24 months. Proposals for larger installation projects continue to remain active; however, if successful, margins will continue to be slightly lower as a result of increased competition in a relatively tight market.

Other Areas of Development – The Company continually explores opportunities for additional growth including new relationships with manufacturers that have competitive product offerings in its existing market channels. The Company has begun several initiatives geared toward increasing parts sales and service revenues in both textile and laundry divisions.

As of March 29, 2003, the Company had 105 full-time domestic employees. The Company’s employees are not represented by a labor union, and the Company has never suffered an interruption of business as a result of a labor dispute. The Company considers its relations with its employees to be good.

As of May 3, 2003, the Company’s backlog of unfilled equipment orders was approximately $5.8 million. The period of time required to fill orders varies depending on the model ordered, manufacturers’ production capabilities, and availability of overseas shippers. The Company typically fills its backlog within 12 months; however, orders constituting the current backlog are subject to customer cancellation, changes in delivery and machine performance. As a result, the Company’s backlog may not necessarily be indicative of future revenue and will not necessarily lead to revenues in any future period. Any cancellation, delay or change in orders which constitute our current or future backlog may result in lower than expected revenues.

There are certain seasonal factors that may affect the Company’s business. Traditionally, manufacturing businesses in Italy close for the month of August, and the Company’s hosiery customers close for one week in July. Consequently, no shipments or deliveries, as the case may be, of machines distributed by the Company that are manufactured in Italy are made during these periods which fall in the Company’s first quarter. In addition, manufacturing businesses in Italy generally close for two weeks in December, during the Company’s second quarter. Fluctuations of customer orders or other factors may result in quarterly variations in net revenues from year to year.

Management believes that inflation has not had a material effect on the Company’s operations.

As of May 7, 2003, Speizman had $4.1 million in borrowings under its line of credit facility with SouthTrust Bank. The scheduled maturity date for this facility is December 31, 2003. The Company currently does not have the financial resources to repay this debt when it becomes due and will therefore need to refinance this debt prior to the maturity date. There is no assurance that the Company will be able to refinance this debt with another lender on a timely basis, on commercially reasonable terms, or at all. Additionally, the textile industry has continued to experience tightened lending practices from traditional financial institutions which may further hinder Speizman’s ability to refinance this debt, especially in light of Speizman’s recent financial losses. If Speizman is unable to refinance this debt or obtain needed additional capital, it would be required to significantly reduce its operations, dispose of assets and/or sell additional securities on terms that could be dilutive to current stockholders.

In May 2002, the Company and Lonati S.p.A. entered into an agreement, effective February 2002, providing for the amendment of their agreement under which Speizman distributes Lonati sock-knitting machines in the United States and Canada, and Lonati’s forbearance and payment restructuring with respect to $4.2 million of trade debt owed by Speizman to Lonati. This amendment and forbearance agreement provides that the following events, among others, will constitute an event of default under Speizman’s distribution agreement with Lonati, as amended:

Upon the occurrence of an event of default, Lonati can terminate its distribution agreement with Speizman and can declare all amounts then due Lonati payable in full.

The Lonati and Santoni agreements allow Lonati to make sales directly to customers located in the Company’s distribution territories and pay the Company a commission as determined on a case by case basis. If direct sales to customers became material, it would have an adverse effect on the Company’s profits since the commissions received by Speizman are typically less than the profits generated by equipment sales.

The Company’s distributor agreements with Pellerin Milnor and Chicago Dryer are renewed on an annual basis. If the Company lost the distribution rights to either of these product lines, it would have a material adverse impact on the revenues of the Company.

Due principally to a decline in sales, the Company incurred a net loss of $5.3 million in fiscal 2002. In addition, Speizman incurred a net loss of $5.9 million in fiscal 2001 due principally to losses associated with foreign currency derivatives. For the year ended June 29, 2002, the Company generated cash from operating activities of $7.0 million. For the nine months ended March 29, 2003, the Company used cash from operating activities of $507,000. Although the Company has returned to profitability for the nine months ended March 29, 2003, Speizman will need to generate continued increases in its revenues, or reductions in overhead in order to continue generating additionalcash from operating activities.

Speizman’s Large Amount of Debt Could Negatively Impact its Business and its Stockholders

Principally as a result of losses funded over the past two fiscal years, the Company is burdened with a large amount of debt. Speizman’s large amount of debt could negatively impact its stockholders in many ways, including:

The majority of Speizman Industries’ suppliers for textile parts and textile equipment are based in foreign countries, primarily Italy. There can be no assurance that Speizman will not encounter significant difficulties in any attempt to enforce any provisions of the agreements with foreign manufacturers, or any agreement that may arise in connection with the placement and confirmation of orders for the machines manufactured by foreign manufacturers or obtain an adequate remedy for a breach of any such provision, due principally that they are foreign companies.

The Company's operations are substantially dependent on the net revenues generated from the sale of sock knitting and other machines manufactured by both Lonati S.p.A. and Santoni, S.p.A., Brescia, Italy, one of Lonati's subsidiaries, and the Company expects this dependence to continue. Sales of sock knitting and other machines manufactured by Lonati and Santoni generated an aggregate of approximately 31.9% and 30.4% of the Company's net revenues in fiscal 2002 and fiscal 2001, respectively. The Company amended its agreement with Lonati for the sale of its machines effective February 2002 to be the exclusive agent through February 2006. The Company has acted as the United States sales agent and distributor for certain machines manufactured by Lonati continuously since 1982. The cost to the Company of Lonati machines, as well as the delivery schedule of these machines, are at the discretion of Lonati. Management believes that the Company’s relationship with Lonati will continue to be strong as long as the Company generates substantial sales of Lonati machines; however, there can be no assurance that the Company will be able to do so or that the Company's relationship with Lonati will continue or will continue on its present terms. Any decision by Lonati to sell machines through another distributor or directly to purchasers would have a material adverse effect on the Company.

During fiscal 2000 and the early part of fiscal year 2001, the Company experienced issues with machine performance and delays from Lonati in shipments of closed toe knitting machines and Santoni undergarment knitting machines. The Company experienced material cancellations or postponements of orders due to these delays and performance issues. There can be no assurance that delayed deliveries in the future or issues with machine performance on newer technology will not result in the loss or cancellation of significant orders. The Company also cannot predict situations in Italy such as potential employee strikes or political developments which could further delay deliveries or have other adverse effects on the business of Lonati and the other Italian manufacturers represented by the Company.

Historically, Speizman Industries’ purchases of foreign manufactured machinery and spare parts for resale were denominated in Italian lira or Euro dollars. For purchases of machines that were denominated in Italian lira or Euro dollars, Speizman generally purchased foreign currency hedging contracts to compensate for anticipated dollar fluctuations; however, during fiscal year 2001, the Company experienced adverse effects utilizing lira hedging contracts for orders that were postponed or delayed. Prior to fiscal year 2001 and for approximately 30 years, the Company did not experience any adverse effect from utilizing lira-hedging contracts. During fiscal year 2001, and in light of newer technology that was being delivered by Lonati represented by its newer version closed toe single cylinder sock knitting machine, and with previous experiences of delays associated with the development of its previous generation closed toe machine, the Company arranged with Lonati and its affiliates to purchase its products for resale in U.S. dollars. Speizman’s arrangement to buy in U.S. dollars with Lonati contractually ends in February 2006. In the future, for purchases of machines that are supplied by other manufacturers that are denominated in Euro dollars, Speizman Industries feels its current practices enable the Company to adjust sales prices, or to commit to Euro dollar hedging contracts that effectively compensate for anticipated dollar fluctuations.

Additionally, international currency fluctuations that result in substantial price level changes could impede or promote import/export sales and substantially impact profits. Speizman is not able to assess the quantitative effect of such international price level changes could have upon Speizman Industries’ operations. There can be no assurance of fluctuations and foreign exchange rates will not have an adverse effect on Speizman Industries’ future operations. All of Speizman Industries’ export sales originating from the United States are made in U.S. dollars.

The Company's business is subject to all the risks inherent in acting as a distributor including competition from other distributors and other manufacturers of both textile and laundry equipment, as well as the termination of profitable distributor-manufacturer relationships.

The Company's laundry equipment segment is subject to the risks associated with new construction in the hospitality industry. Currently, there is a slowdown in construction of new hotels due to a general slowdown in the U.S. economy and excess room availability.

The Textile Segment is subject to the risks associated with certain categories in the textile industry, specifically, for socks, underwear, and actionwear garments. The textile industry risks relating to socks, underwear, and actionwear garments include the impact of style and consumer preference changes. These factors may contribute to fluctuations in the demand for the Company's sock knitting and packaging equipment and knitted fabric equipment products. There has been a slowdown in underwear and actionwear garments that commenced during the second half of fiscal 2001; however, the Company has experienced a modest upturn in demand for its circular knitting machines used in the production of seamless undergarments, action wear, and swimsuits in recent months.

The Company’s Common stock has been listed on the Nasdaq SmallCap Market since March 20, 2001 and was listed on the Nasdaq National Market System from October 1993 to March 19, 2001. The Company’s continued listing of its common stock on the Nasdaq SmallCap Market is subject to certain criteria which include a minimum bid of $1.00 as well as maintaining a minimum market value of public float of $1.0 million. Since January 2002, the Company’s stock has been trading below $1.00. On May 8, 2003, the closing per share bid price for the Company’s common stock was $0.30. The Company has been notified by Nasdaq that its common stock will be delisted on May 12, 2003. The Company plans to appeal the delisting.

On January 30, 2003, Nasdaq issued a press release proposing to extend the grace period for compliance with the minimum bid requirement from 180 days to 540 days. Management believes that, if the proposal is adopted, its common stock would be included in the extended grace period.

On April 22, 2003, the Company was notified by Nasdaq that its common stock has not maintained a minimum market value of publicly held shares (“MVPHS”) of $1,000,000. If at anytime before July 21, 2003, the MVPHS of the Company’s common stock is not $1,000,000 or more for at least 10 consecutive trading days, then the Company’s common stock will be delisted. The Company estimates that the closing per share bid price of its common stock must be at least $0.42 in order to meet the minimum MVPHS.

If the Company is delisted, its common stock might trade in the OTC – Bulletin Board, which is viewed by most investors as a less desirable marketplace. In such event, the market price of the common stock may be adversely impacted and a stockholder may find it difficult to dispose, or obtain accurate quotations as to the market value, of the Company’s common stock.

The Company is exposed to market risks, which include changes in U.S. and international interest rates as well as changes in foreign currency exchange rates as measured against the U.S. dollar and each other. The Company attempts to reduce these risks by utilizing financial instruments, pursuant to Company policies.

The value of the U.S. dollar affects the Company’s financial results. Changes in exchange rates may positively or negatively affect the Company’s revenues (as expressed in U.S. dollars), cost of sales, gross margins, operating expenses, and retained earnings. Where the Company deems it prudent, it engages in hedging those transactions aimed at limiting in part the impact of currency fluctuations. The Company has historically entered into forward exchange contracts to protect against currency exchange risks associated with the Company’s anticipated and firm commitments of lira-denominated purchases for resale.

These hedging activities provide only limited protection against currency exchange risks. Factors that could impact the effectiveness of the Company’s programs include volatility of the currency markets, and availability of hedging instruments. All currency contracts that are entered into by the Company are components of hedging programs and are entered into for the sole purpose of hedging an existing or anticipated currency exposure, not for speculation. Although the Company maintains these programs to reduce the impact of changes in currency exchange rates, when the U.S. dollar sustains a strengthening position against the Euro in which the Company has anticipated purchase commitments, the Company’s earnings could be adversely affected if future sale prices cannot be increased because of market pressures.

Within 90 days prior to the filing of this report, under the supervision and with the participation of the Company’s management, including the Company’s chief executive and chief financial officers, an evaluation of the effectiveness of the Company’s disclosure controls and procedures (as defined in Rule 13a-14(c) under the Securities Exchange Act of 1934) was performed. Based on this evaluation, such officers have concluded that the Company’s disclosure controls and procedures were effective as of the date of that evaluation in alerting them in a timely manner to material information relating to the Company required to be included in this report and the Company’s other reports that it files or submits under the Securities Exchange Act of 1934. There were no significant changes in the Company’s internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation.

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

I, Robert S. Speizman, Chairman of the Board and President (Principal Executive Officer) of Speizman Industries, Inc., certify that:

1. I have reviewed this quarterly report on Form 10-Q of Speizman Industries, Inc.

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

a) Designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

b) Evaluated the effectiveness of the registrant’s disclosure control and procedures as of a date within 90 days prior to the filing date of this quarterly report (the “Evaluation Date”); and

c) Presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):

a) All significant deficiencies in the design or operation of internal controls which could adversely affect the registrant’s ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and

6. The registrant's other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

I, Paul R.M. Demmink, Vice President-Finance, CFO, Secretary and Treasurer (Principal Financial Officer), of Speizman Industries, Inc., certify that:

1. I have reviewed this quarterly report on Form 10-Q of Speizman Industries, Inc.

b) Evaluated the effectiveness of the registrant’s disclosure control and procedures as of a date within 90 days prior to the filing date of this quarterly report (the “Evaluation Date”); and

c) Presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and

Delaware	56-0901212

(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

701 Griffith Road Charlotte, North Carolina	28217

(Address of principal executive offices)	(Zip Code)

Class of Common Stock	Outstanding at May 6, 2003
Par value $.10 per share	3,255,428

PART I. FINANCIAL INFORMATION:	Page No.

Item 1. Financial Statements:

Condensed Consolidated Balance Sheets	3-4

Condensed Consolidated Statements of Operations	5

Condensed Consolidated Statements of Cash Flows	6

Condensed Consolidated Statements of Stockholders’ Equity	7

Notes to Condensed Consolidated Financial Statements	8-13

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	14-23

Item 3. Quantitative and Qualitative Disclosure about Market Risk	23

Item 4. Controls and Procedures	23

PART II. OTHER INFORMATION	24

Item 6. Exhibits and reports on Form 8-K	24

		March 29,		June 29,
		2003		2002
		(unaudited)
Revolving Credit Facility	$	4,699,000	$	5,000,000
Trade notes payable		4,797,000		6,109,000
Total.		9,496,000		11,109,000
Current maturities		(5,447,000)		(6,565,000)
	$	4,049,000	$	4,544,000

	Payments Due by Periods
	Total		Less Than One Year		1-3 Years		4-5 Years		After 5 Years
Long-term debt	$	9,496,000	$	5,447,000	$	4,049,000	$	-	$	-
Capital lease obligations	4,423,000		135,000		546,000		531,000		3,211,000
Irrevocable letters of credit	5,954,000		5,954,000		-		-		-
Operating leases		1,362,000		587,000		708,000		67,000		-
Total contractual cash obligations	$	21,235,000	$	12,123,000	$	5,303,000	$	598,000	$	3,211,000

Item 6. Exhibits and reports on Form 8-K

	(a)	Exhibits:

		10(a)	Sixth Amendment and Forbearance Agreement between SouthTrust Bank and Speizman Industries, Inc. effective March 31, 2003.

		99.1	Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

		99.2	Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

	(b)	Reports on Form 8-K:

		Current Report on Form 8-K: Press release announcing bank extension, dated April 2, 2003.

		Current Report on Form 8-K: Press release announcing third quarter 2003 financial results, dated May 12, 2003.

	SPEIZMAN INDUSTRIES, INC.
	(Registrant)

Date: May 13, 2003	/s/ Robert S. Speizman
	By: Robert S. Speizman
	Title: President


Date: May 13, 2003	/s/ Paul R.M. Demmink
	By: Paul R.M. Demmink
	Title: CFO/Secretary-Treasurer

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