TEMPE, Arizona -- Sept. 6, 1995 -- href="chap11.udc.html">UDC Homes, Inc.
announced that it has agreed in principle to sell UDC's Charlotte
Division to Shea Homes/Southeast Division. UDC's Charlotte Division
consists of over 600 home sites in such communities as Thornhill,
Providence Arbours and Cameron Wood. Homes under construction are
not a part of the agreement. However, model homes at some of the
developments may be included in the purchase.
Shea Homes/Southeast Division, a division of Shea Homes
(headquarters are in Southern California), entered the Charlotte
market in July 1994. Named California Builder of the Year, the
company built over 2,300 homes in California and Phoenix in 1994,
and was ranked 24th in the nation based on housing starts and 15th
in the nation based on revenues.
When asked about the sale, John F. Shea, Jr., one of the
division's principals stated, "We want to establish a stronger
foothold in Charlotte as we've realized that consumer demand for
quality homes in desirable areas is even greater than we had
UDC is currently a debtor in possession pursuant to the
provisions of Chapter 11 of the Bankruptcy Code in a bankruptcy case
pending before the United States Bankruptcy Court for the District
of Delaware. A confirmation hearing on UDC's plan of reorganization
is scheduled for October 2, 1995 and UDC hopes to emerge form
bankruptcy shortly thereafter.
CONTACT: John F. Shea,
Edmund H. Shea, III,
Shea Homes/Southeast Division,
DOBBS FERRY, New York -- Sept. 8,
1995 -- Fingermatrix
Inc. (NASDAQ EBB:FINX), inventors of electronic fingerprinting
technology, Friday announced it has entered into a stock purchase
agreement under which an international financial concern based in
the Far East will make an equity investment of $2 million in the
company over the next 12 months.
Thomas T. Harding, president and chief executive officer, said
under the terms of the agreement the investor group will purchase 2
million shares of Fingermatrix by the end of the one-year period.
Five hundred thousand shares were purchased on Sept. 6 to be
followed by a similar number Oct. 1. Further details of the
transaction were not disclosed.
Fingermatrix, a leading developer of electronic fingerprinting
equipment with numerous patents in the field, is operating under a
new stockholder-sponsored management. This team last April took the
company out of Chapter 11 bankruptcy which the previous management
had filed voluntarily in September 1993.
"This investment will fulfill our capital requirements over the
next year and accelerate the company's already rapid recovery,"
He said management's first greatly upgraded system, a single-
finger live scanner based on its latest patented technology, is now
being evaluated by eight major corporations. Two other advanced
systems will be introduced before the end of this year, he added.
CONTACT: Molesworth Associates Inc.,
Gordon Molesworth, 520/625-0035
NEW YORK, New York -- Sept. 8, 1995 -- FAMILY
CORPORATION (Nasdaq Symbol: FBAR, Nasdaq Preferred Symbol: FBARP)
today announced that it has agreed to settle the Weinstein
litigation. Pursuant to the settlement, the Company will receive
approximately $600,000 as its share of the settlement and recovery
In connection with the reorganization plan of href="chap11.general.textiles.html">General Textiles
(the Company's operating subsidiary), the Company agreed to pursue
litigation against the former shareholders of General Textiles
(Norman Weinstein, et. al.) who sold their stock in connection with
a 1989 leveraged acquisition (the Company acquired General Textiles
in 1992 while General Textiles was operating under chapter 11
protection). The lawsuit alleged that the 1989 leveraged
acquisition rendered General Textiles insolvent and that certain
payments to the former shareholders constituted fraudulent transfers
and sought to recover such payments. The parties to the lawsuit
have agreed to enter into a settlement agreement pursuant to which
none of the parties admits any wrongdoing.
Based on the settlement agreement, the Company will receive $1.3
million. After deducting the $400,000 in expenses incurred by the
company in relation to the litigation, the Company will distribute
approximately $700,000 to certain subordinated noteholders of
General Textiles in accordance with the plan of reorganization and
will retain the remaining $200,000. Therefore, the net proceeds to
the Company from the settlement will be $600,000. The Company
expects to receive the settlement funds in November.
FAMILY BARGAIN CORPORATION, through its subsidiary General
Textiles, operates 102 `Family Bargain Center' off-price apparel
retail stores which sell primarily first quality clothing for men,
women and children at prices which generally are significantly lower
than the prices offered by its competitors. Stores are located in
California, Arizona, New Mexico, Washington, Nevada and Oregon.
CONTACT: Company Contact: Investor Relations Contact:
John A. Selzer or John Nesbett, ext. 101
Chief Executive Officer Jason Thompson, ext. 124
RICHMOND, Virginia -- September 8, 1995 -- href="chap11.best.html">Best Products
Co., Inc. (NASDAQ: BEST) today reported its 1995 second
sales and operating results.
Second quarter net sales for the 13 weeks ended July 29, 1995
decreased 0.1% to $311.8 million compared to $312.2 million for the
same period in the prior year. Comparable store net sales decreased
4.7% during the same period. Earnings (loss) before interest,
income taxes, depreciation and amortization ("EBITDA") was a loss of
$4.2 million for the second quarter of 1995 compared to earnings of
$4.2 million for the second quarter of 1994. The company reported a
net loss of 23 cents a share for the second quarter of 1995 compared
to a pro forma net loss of 5 cents a share for the same period in
1994. The company historically reports losses during the second
quarter of the year.
Gross margin during the second quarter of 1995 was $74.5 million
compared to $76.8 million for the same period in the prior year.
Second quarter selling, general and administrative ("SG&A") expenses
were $78.7 million this year compared to $72.6 million in 1994 due
primarily to higher payroll and promotional expenses.
Chief Executive Officer Stewart M. Kasen said, "The second
quarter was characterized by continuing consumer caution, with sales
of consumer electronics and lawn and patio furniture impacted
adversely throughout the period. Results were affected by several
factors, including higher SG&A levels in anticipation of increased
Best Products completed its Chapter 11 proceedings and
substantially consummated its plan of reorganization in June 1994.
The financial results for the 13 and 26 weeks ended July 30, 1994
have been presented on a pro forma basis to reflect adoption of
fresh start reporting as of the beginning of those periods.
Management believes this pro forma information provides an
appropriate and meaningful basis of comparison to the 13 and 26
weeks ended July 29, 1995.
Best Products, a specialty retailer offering category-dominant
assortments of jewelry and home products, operates 164 Best stores
in 22 states. The company also operates 12 Best Jewelry stores and
a nationwide mail-order service.
BEST PRODUCTS CO. INC.
Historical and Pro Forma Results of Operations
13 weeks ended 26 weeks ended
July 29, July 30, July 29, July 30,
1995 1994 1995 1994
Historical Pro- Historial Pro-
(Dollar amounts in thousands, except per share amounts
Net sales $311,841 $312,233 $584,600
Cost of goods sold 237,378 235,481 443,545
Gross margin 74,463 76,752 141,055
Selling, general and
administrative expenses 78,648 72,604 150,860
amortization 3,634 2,457 7,252
Interest expense, net 4,101 4,384 8,295
Loss before income tax
benefit (11,920) (2,693) (25,352)
Income tax benefit 4,769 1,077 10,142
Net loss(b) $ (7,151) $ (1,616) $(15,210) $
Net loss per common share $ (0.23) $ (0.05) $ (0.48) $
Weighted average common
shares outstanding 31,630,029 31,660,711 31,645,369
EBITDA(c) $ (4,185) $ 4,148 $ (9,805) $
(a): The pro forma results of operations for the thirteen and
twenty-six weeks ended July 30, 1994 give effect to the transactions
occurring in conjunction with the company's emergence from Chapter
11 as if the emergence had occurred on January 29, 1994 instead of
June 14, 1994, the actual date. The results of operations have been
adjusted to reflect: the reduction in depreciation and amortization
expense due to the lower assigned values of property and equipment
and other intangible assets; the elimination of historical interest
expense and recording of interest expense on the debt structure as
provided for by the company's reorganization plan; the elimination
of the effects of historical reorganization items, fresh start
revaluation and gain on debt discharge; and the recording of
appropriate income tax benefit.
(b): Operating results are subject to significant seasonal
fluctuations. Net earnings (loss) of any quarter are seasonally
disproportionate to sales since many operating expenses are
relatively constant throughout a year. As a consequence, interim
results should not be relied upon as necessarily indicative of
results for any entire year.
(c): EBITDA consists of earnings (loss) before interest, income
taxes, depreciation and amortization. EBITDA is not intended to
present net earnings (loss), cash flows or any other measures of
performance in accordance with generally accepted accounting
principles, but is included because management believes it to be a
useful tool for measuring performance.
BEST PRODUCTS CO., INC.
July 29, July 30,
(Dollar amounts in thousands)
Cash and cash equivalents $ 78,935 $ 118,595
Merchandise inventories 513,988 498,537
Other 34,890 18,991
Total current assets 627,813 636,123
Property and equipment, net 168,540 146,176
Deferred income taxes, net and other 22,263 24,750
Total Assets $ 818,616 $ 807,049
Liabilities and Stockholders' Equity
Current maturities of long-term debt
and capital lease obligations $ 13,197 $ 13,396
Accounts payable 163,612 133,973
Accrued expenses and other 66,694 82,092
Total current liabilities 243,503 229,461
Long-term debt 138,294 140,685
Capital lease obligations 89,016 97,544
Other 12,952 13,400
Total Liabilities 483,765 481,090
Common stock 31,581 31,661
Additional paid-in capital 298,385 298,305
Retained earnings (deficit) 9,885 (4,007)
Loans under Stock Purchase Loan Plan (5,000)
Total Stockholders' Equity 334,851 325,959
Total Liabilities and
Stockholders' Equity $ 818,616 $ 807,049
CONTACT: Best Products Inc., Richmond,
Investor Relations: J. Stuart Newton, 804/261-2150 or
Betsy Brod, 212/850-5600;
Media Contacts: Ross Richardson, 804/261-2157 or
Stacy Berns, 212/850-5600