ELJER INDUSTRIES ANNOUNCES SECOND QUARTER RESULTS
DALLAS, Texas--August 2, 1995--Eljer
Industries, Inc. (NYSE:ELJ) today reported results for the second
quarter and six months ended July 2, 1995. For the second quarter,
the net loss was $1,206,000 or $0.17 per share compared with net
income of $2,386,000 or $0.34 per share in the same quarter a year
ago. Second quarter 1995 operating income was $3,114,000 compared
with $5,109,000 in the same period last year. Net sales were
$92,416,000 compared with $103,356,000 in the second quarter of
1994.
The second quarter was impacted by a weaker North American
housing market which resulted in decreased sales in the Company's
North American operations. In addition, the gross margin was
reduced by continued high raw material costs for stainless steel,
aluminum, brass, copper and polybutylene resin which has not yet
been fully offset by price increases given the competitive market
conditions. The Company reduced SG&A and litigation costs during
the quarter, while interest expense increased 34% due to scheduled
rate increases on debt and an amendment to the credit agreement
effected in late 1994 to improve liquidity. At the same time, the
Company's European operations improved substantially in the second
quarter reflecting the ongoing benefit of a re-engineering program
instituted in the second half of 1994.
For the first six months of 1995, the net loss was $2,088,000 or
$0.29 per share compared with net income of $2,746,000 or $0.39 per
share in the same period of 1994. Operating income was $5,538,000
compared with $8,107,000 in the first half of 1994. Net sales were
$191,471,000 versus $194,231,000 in the comparable period last year.
Litigation costs in the second quarter totaled $1,834,000 offset
by a $1,076,000 reduction in litigation reserves at HREF="chap11.usbrass.html"> United States Brass Corporation, the Company's
indirect, wholly-owned subsidiary
which is, as previously disclosed, maintaining its net book value at
zero during the course of its bankruptcy proceeding. For the first
half of 1995, the reserve reduction totaled $2,242,000. U.S. Brass,
Eljer Manufacturing and the Company filed an amended Plan of
Reorganization and disclosure statement in U.S. Brass' voluntary
Chapter 11 bankruptcy on June 16, 1995 and a hearing on the amended
disclosure statement is scheduled for August 22, 1995.
Scott Arbuckle, President and Chief Executive Officer,
commented: "With new housing starts down more than 15% from last
year and raw material costs at historic highs, the second quarter
was the most difficult we have seen in some time. We are continuing
the process of reducing expenses to match current market levels as
well as implementing programs and systems that are making us more
cost effective and competitive. The benefits of these efforts will
be more fully realized in 1996 since we will be absorbing severance
and related costs resulting from these actions during 1995. We are
particularly pleased with the substantial progress of our European
operations which is expected to continue into the second half of the
year."
Eljer Industries, Inc. is a leading manufacturer and marketer of
high quality building products, including plumbing, heating and
venting products, for the residential and commercial construction,
remodeling and repair, and do-it-yourself markets. -0-
ELJER INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED STATEMENTS OF INCOME
(unaudited)
(In thousands, except per share amounts)
For the Three Months For the Six Months
Ended Ended
7/2/95 7/3/94 7/2/95 7/3/94
NET SALES $ 92,416 $103,356 $191,471 $194,231
COST OF SALES 69,606 75,921 145,263 142,528
GROSS PROFIT 22,810 27,435 46,208 51,703
SELLING & ADMINISTRATIVE
EXPENSES 18,938 20,415 38,419 40,325
LITIGATION AND
RELATED COSTS 758 1,911 2,251 3,271
INCOME FROM OPERATIONS 3,114 5,109 5,538 8,107
OTHER EXPENSE, net 827 432 931 757
INTEREST EXPENSE, net 3,536 2,579 6,665 5,656
INCOME (LOSS) BEFORE
INCOME TAXES (1,249) 2,098 (2,058) 1,694
INCOME TAX (BENEFIT)
EXPENSE (43) (288) 30 (1,052)
NET INCOME (LOSS) $ (1,206) 2,386 $ (2,088) $ 2,746
NET INCOME (LOSS)
PER SHARE $ (0.17) $ 0.34 $ ( 0.29) $ 0.39
WEIGHTED AVERAGE
NUMBER OF
COMMON SHARES 7,130 7,121 7,130 7,110
CONTACT: Morgen-Walke Associates, New York
Lynn Morgen/June Filingeri
Stan Froelich, Media contact, 212/850-5600
Ken Pieper, 214/663-9390
The Harvey Group Inc. seeks to reorganize under Chapter 11
SACAUCUS, N.J.--Aug. 3, 1995--The Harvey
Group Inc. announced today that it has filed under the Federal Bankruptcy
laws for Chapter 11 reorganization. The company further stated that
it is continuing to seek additional equity financing from various
financing sources.
Arthur Shulman, president and CEO of the Harvey Group, stated,
"We hope that this reorganization can be accomplished quickly and
that the Company will emerge as a stronger enterprise with the
ability to continue to provide high quality audio/video consumer
electronics to our customers."
Based in Secaucus, Harvey Electronics is a specialty retailer of
high-quality audio/video consumer electronics and home theater
products with seven stores in the Metropolitan New York area.
CONTACT: The Harvey Group Inc.
Arthur Shulman/Joseph J. Calabrese
201/865-3418
201/865-0342 (fax)
IRG TECHNOLOGIES, INC. FILES VOLUNTARY PETITION FOR REORGANIZATION UNDER
CHAPTER 11
CARROLLTON, Texas--Aug. 3, 1995--IRG
TECHNOLOGIES, INC. (Nasdaq: IRGT) announced today that on Aug. 2,
1995, the company and each of its subsidiaries filed a voluntary
petition for reorganization under Chapter 11 of the U.S. Bankruptcy
Code in the United States Bankruptcy Court, Northern District of
Texas, Dallas Division. As a result of the previously disclosed
liquidation of its inventory and collections of accounts receivable,
the company has repaid all of its outstanding indebtedness under its
bank line of credit facility and the facility has been terminated.
Additionally, the company has reduced its workforce to 15 employees.
The company has entered into an agreement with its largest creditor
pursuant to which the creditor has agreed to support and vote in
favor of a plan of reorganization being developed by the company,
provided that, among other things, the plan of reorganization is
filed by Dec. 1, 1995 and confirmed by March 1, 1996. There can be
no assurance that this plan of reorganization will be acceptable to
any of the company's other creditors.
The company also announced that Mr. Bernard Appel resigned from
the company's board of directors, effective June 2, 1995. Mr. Nasim
Aziz, the executive vice president of the company, was subsequently
appointed as a director to fill the vacancy created by Appel's
resignation.
CONTACT: Aino Alber, CFO, IRG TECHNOLOGIES, INC., 214/481-3473.