SLM INTERNATIONAL DELAYS FILING OF SECOND QUARTER 10-Q
NEW YORK, NY--August 17, 1995--SLM International
Inc. (Electronic Bulletin Board: "SLMI") announced today that it
has delayed filing its Form 10-Q with the Securities and Exchange
Commission to allow additional time for completion of its financial
statements for the second quarter ended July, 1 1995. The Company
currently expects to file the Form 10-Q on or about August 21, 1995.
Based on information currently available from its ongoing review,
the Company expects to report a loss from continuing operations
approximating $20 million for the six months ended July 1, 1995.
This loss includes unfavorable impacts of $7 million for the
settlement of environmental litigation and $7 million of
professional fees and higher interest costs related to defaults with
its lenders. Excluding such items, the Company's six month loss from
continuing operations, which consists primarily of the Company's
sporting goods business, would be approximately $6 million. The
1995 loss from continuing operations also reflects the adverse
impact of the hockey and baseball strikes. For the six months ended
July 2, 1994, the Company reported income from continuing operations
of $0.9 million, or $0.05 per share, and net sales from continuing
operations of $70.2 million.
The 1995 six month net loss is expected to exceed $45 million,
reflecting the loss from continuing operations and a loss from
discontinued operations as a result of the completion of the sale of
the Company's discontinued Buddy L toy and
fitness businesses out of
bankruptcy in early July 1995. It must be emphasized that the 1995
results are preliminary estimates based on internal review and are
subject to change as additional information becomes available, and
following analysis and input from the Company's independent
accountants, Coopers & Lybrand. The net loss for the 1994 period
was $4.8 million, or $0.25 per share.
The Company's loss for the six months ended July 1, 1995
includes an expense of $7 million relating to the settlement of an
environmental lawsuit brought in Vermont Superior Court by the owner
of a property adjacent to the Company's manufacturing facility in
Bradford, Vermont. The Company has paid $1 million in cash to the
property owner and has agreed to deliver its $6 million Term Note
due June 28, 2000, bearing interest at 10% per annum, with principal
amortization on a 20 year schedule.
Howard Zunenshine, Chief Executive Officer of SLM International,
Inc., stated, "The sale of our Buddy L toy and fitness business
allows us to focus all of our energy and resources exclusively on
our core sporting goods business. The past year has been a
difficult time for the Company, but given the cash flow problems we
have experienced since late last year, our operating results are
encouraging. Our brand is strong and our employees are dedicated to
facing the challenges ahead and helping us to take advantage of the
opportunities in the marketplace. In addition, we believe that the
previously announced Standstill Agreement with our lenders and the
retention of Bear Stearns & Co. Inc to assist us in exploring a
wide variety of possible financial transactions, including
refinancing outstanding debt and obtaining additional equity
capital, are very positive steps in enabling us to achieve our
strategic goals."
SLM International, Inc. designs, develops, manufactures and
markets a broad range of sporting goods on a worldwide basis.
CONTACT: SLM International, Inc.
Howard Zunenshine, (514)331-5150
John A. Sarto, (212)675-0070
or
IR CONTACT: David Walke/June Filingeri/Melissa Garelick
PRESS: Lisa Bradlow
Morgen-Walke Associates
(212)850-5600
Boca Research Inc. makes announcement
BOCA RATON, Fla.--Aug. 17, 1995--Anthony F.
Zalenski, chief executive officer of Boca Research Inc.
(NASDAQ:BOCI) stated Thursday that he was surprised to learn that
Dennis Hayes has been seeking alternatives to bring HREF="chap11.hayes.html">Hayes Microcomputer Products Inc. out of Chapter 11,
including seeking investors.
Zalenski indicated that Boca is nevertheless continuing to
conduct due diligence, pursue financing sources and otherwise take
steps toward acquiring Hayes.
CONTACT: Boca Research Inc., Boca Raton
Gale A. Blackburn, 407/997-8621, ext. 305
407/994-5848 (fax)
EPE ANNOUNCES 1995 SECOND QUARTER RESULTS
EL PASO, Texas--Aug. 17, 1995--El Paso
Electric Company ("EPE" or the "Company") reported a net loss of $9.6
million (or $.27 per common share) for the quarter ended June 30,
1995. This compared to a net loss of $7.2 million (or $.20 per
common share) for the same period in 1994. The net loss for the six
months ended June 30, 1995, of $26.1 million (or $.73 per common
share) compared to a net loss reported for the 1994 six-month period
of $20.4 million (or $.57 per common share). The loss for the three
and six months ended June 30, 1995, resulted primarily because
revenues were not sufficient to cover the Company's operating and
reorganization expenses and interest charges. Until EPE emerges
from bankruptcy, results from operations are not expected to be
better than the historical results the Company has reported while in
bankruptcy.
Operating revenues decreased 9.9 percent and 10.2 percent for
the three and six months ended June 30, 1995, compared to the same
periods in 1994, primarily due to lower fuel and purchased power
costs which are generally billed directly to customers. Base
revenues were also lower due to reduced sales to a major wholesale
customer and lower sales this year compared to 1994 when the weather
was warmer than usual. Interest costs were higher in 1995 due
primarily to increased interest rates which more than offset the
Company's discontinuance of interest accruals on unsecured debt when
EPE's proposed merger with Central and South West Corporation
("CSW") was terminated by CSW on June 9, 1995. On July 16, 1994,
the Company implemented an increase in Texas base rates of
approximately $25 million, under bond and subject to refund;
however, EPE has deferred recognition of the additional revenue
pending a final order of the Public Utility Commission of Texas
("PUCT") in Docket 12700, the Company's current rate filing.
As previously announced, subject to both approval by the PUCT
and an effective plan of reorganization, the Company has an
agreement with the City of El Paso and essentially all other parties
to Docket 12700 which would provide for a continuation of the July
16, 1994, increase, freeze base rates in Texas at that level for 10
years, allow the Company to keep all base revenues collected under
bond since July 16, 1994, and resolve certain fuel matters. If the
rate agreement had become effective on Jan. 1, 1995, reported
operating revenues would have increased approximately $9.4 million
and $18 million for the three and six month periods, respectively.
The PUCT is scheduled to consider the proposed rate agreement on
Aug. 30, 1995.
The proposed rate agreement in Texas will result in an overall
bankruptcy estate value which is substantially less than that
contemplated in the plan of reorganization terminated by CSW, and
will therefore result in substantially reduced recoveries for
unsecured creditors and equity holders. A new plan of
reorganization will probably result in unsecured creditors owning a
substantial majority of the equity in the reorganized Company upon
the Company's emergence from bankruptcy.
The Company filed a voluntary petition under Chapter 11 of the
United States Bankruptcy Code on Jan. 8, 1992. EPE is an electric
utility serving approximately 271,000 customers in El Paso, Texas,
and an area of the Rio Grande Valley in West Texas and Southern New
Mexico, and wholesale customers located in such diverse locations as
Southern California and Mexico. The Company achieved a new record
system peak demand of 1,374 MW (megawatts) on Aug. 9, 1995, which
was a 0.6 percent increase over 1994's record system peak of 1,365
MW.
El Paso Electric Company's results of operations for the three
and six months ended June 30, 1995 and 1994 are as follows (in
thousands except share data):
Three Months Ended
--------------------------
6/30/95 6/30/94
----------- -----------
Operating revenues $ 124,683 $ 138,447
Operating expenses (106,832) (120,698)
Interest charges (24,602) (23,019)
Loss before reorganization items (7,130) (5,044)
Reorganization items (expense),
net of tax (2,472) (2,128)
Net loss (9,602) (7,172)
Weighted average number
of common shares outstanding 35,544,330 35,544,330
Net loss per weighted average
share of common stock $ (0.27) $ (0.20)
Six Months Ended
--------------------------
6/30/95 6/30/94
----------- -----------
Operating revenues $ 237,072 $ 263,923
Operating expenses (207,271) (234,771)
Interest charges (51,100) (44,626)
Loss before reorganization items (21,579) (15,743)
Reorganization items (expense),
net of tax (4,471)
(4,618)
Net loss (26,050)
(20,361)
Weighted average number
of common shares outstanding 35,544,330 35,544,330
Net loss per weighted average
share of common stock $ (0.73) $ (0.57)
CONTACT: El Paso Electric Company, El Paso
Alan Lee Bunnell, corporate spokesperson for EPE,
915/543-5823; (National and Regional Media)
or
Henry Quintana Jr., supervisor of corporate
communications, 915/543-5824 (Local Media)
or
John Droubay, EPE treasurer, 915/543-5710
(Financial Analysts)
or
EPE's Office of the Secretary, 1-800/592-1634 or
1-800/351-1621 (Stockbrokers and Shareholders)