F & M DISTRIBUTORS, INC. ANNOUNCES SECOND QUARTER RESULTS
WARREN, Mich., Aug. 24, 1995-- F & M
a debtor-in-possession, announced today operating results for the
second quarter ended July 29, 1995.
For the three months ended July 29, 1995, net sales were $119.0
million at 88 store locations compared to $187.5 million in 129
stores in the second quarter of the prior year. Net losses for the
three months were $15.7 million or ($1.63) per share, as compared to
net losses of $8.4 million or ($.87) per share in the prior year.
Comparable store sales declined 19% in the second quarter.
For the six months ended July 29, 1995, net sales were $238.2
million at 88 locations compared to $364.2 million in 129 locations
in the same period last year. The net loss for the six months was
$31.7 million or ($3.30) per share, compared to a net loss of $12.1
million or ($1.26) per share in the prior year. Comparable store
sales declined 18% year to date.
Current year losses are not tax effected due to the Company's
net operating loss carryforward position. Operating losses, before
interest, reorganization items and non-recurring charges, were $6.4
million in the second quarter and $16.6 million for the six months
year to date as compared to operating losses of $9.4 million and
$11.4 million, respectively, in the comparable periods of the prior
As a result of the losses incurred in the month of July 1995,
the Company did not comply with certain financial covenants
contained in its debtor-in-possession credit agreement. The
Company, its secured lenders, and the general creditors' committee
have reached an agreement in principle to waive compliance with such
financial covenants through October 20, 1995 and to amend the debtor-
in-possession credit agreement to accommodate the Company's business
operations. The agreement in principle is subject to a definitive
agreement and the approval of such agreement by September 14, 1995
by the bankruptcy court having jurisdiction over the Company's
chapter 11 case. The trade lien previously granted in favor of
vendors extending credit to the Company will continue in full force
and effect during the waiver period.
The Company, its secured lenders and the general creditors'
committee have agreed that the Company should aggressively pursue
alternative business strategies during the waiver period, including
the marketing of the Company or part of the business operations to
F & M is liquidating five stores in outstate Michigan and one
store location in Illinois. The Company took a non-cash charge of
$4.3 million in its second quarter operating results for reserves
related to the closing of these stores. The outstate Michigan
stores do not complement the three major consumer markets served by
F & M (Chicago, Detroit and Baltimore/Washington D.C.). The
Illinois store location to be closed is at its lease expiration.
The Company is reviewing all of its operations, and will, in the
near term, sell or liquidate up to an additional six store
locations. Reserves related to the closing of these six stores will
be determined and reflected in the Company's third quarter operating
The Company currently operates 82 F & M super drugstores located
primarily in Chicago, Detroit and Baltimore/Washington D.C. Its
retail stores offer a wide selection of branded health and beauty
aids, cosmetics and household consumables and supplies at everyday
F & M is operating and managing its business as a debtor-in-
possession under chapter 11 of the United States Bankruptcy Code.
The chapter 11 reorganization case was commenced by the Company on
December 5, 1994.
/CONTACT: Eileen Howard, or Media: Stacy Berns, both of
Morgen-Walke Associates, 212-850-5600; or Laura Kendall, Sr. VP &
Chief Financial Officer of F & M Distributors, Inc., 810-758-1400, ext. 251/
Boca Research, Inc. announces termination of
negotiations regarding the acquisition of Hayes Microcomputer
BOCA RATON, Fla.--Aug. 24, 1995--Boca Research,
Inc. (NASDAQ:BOCI) today announced that it has terminated
negotiations with respect to the acquisition of HREF="chap11.hayes.html">Hayes Microcomputer Products, Inc. under the previously
announced letter of intent with
Hayes. In making the announcement, Boca Research indicated that Mr.
Hayes' recent efforts to seek alternatives to the merger with Boca
Research, his refusal to suspend these efforts during continued
negotiations with Boca Research, and the course of negotiations over
the past several days caused Boca Research to conclude that Mr.
Hayes is not committed to the merger.
Anthony F. Zalenski, president and chief executive officer of
Boca Research, stated that, "Pursuing an acquisition of Hayes was
consistent with our strategy to expand our business through
developing strategic partnerships and acquiring complementary
businesses. We believed that the acquisition of Hayes would be a
major step in furthering this strategy. However, as we pursued due
diligence and negotiations with Dennis Hayes, it became apparent to
us that there were fundamental differences between Boca Research and
Mr. Hayes relating to the management of the combined companies. We
determined that these differences would restrict Boca Research's
management from taking the actions required to return Hayes to
profitability and would jeopardize Boca's earnings growth."
Mr. Zalenski indicated that Boca Research will continue to
monitor the status of the Hayes Chapter 11 Bankruptcy Proceeding.
Boca Research (NASDAQ:BOCI), founded in 1985, is a Florida
corporation headquartered in Boca Raton. The Company designs,
manufactures, markets and supports quality, cost-effective data
communications, multimedia and networking products to facilitate the
transmission of information on personal computers and computer
networks. The Company provides hardware products augmented with
software for use in the corporate, consumer and small office/home
office marketplaces, and sells these products worldwide to wholesale
distributors, OEMs and retailers.
CONTACT: Boca Research, Inc., Boca Raton
Mike Brewer, 407/997-8621 ext. 217
(Vice President, Finance)