DALLAS, Texas--Oct. 12, 1995--I.C.H.
or the Company) (f/k/a/ Southwestern Life Corporation) (ASE:SLC)
today provided additional details regarding its filing of a
voluntary petition for reorganization under Chapter 11 of the U.S.
Bankruptcy Code in Dallas on Oct. 10, 1995.
The Company stated that the filing reflected parent company only
scheduled assets and liabilities of $406.0 million and $510.0
million, respectively, as of Aug. 31, 1995.
Included in scheduled assets were gross proceeds of $213.0
million from the pending sale of ICH's principal subsidiaries, $45.1
million of cash and short-term investments, $68.2 million
representing the carrying value of its retained insurance and other
subsidiaries, $18 million representing the estimated value of a
profits interest in a Federal savings bank holding company, and
receivables and other assets of $61.7 million. Included in
receivables is $24.6 million recorded to date for a tax
indemnification claim against a third party and a note in the amount
of $28.1 million that is pledged to secure a note payable in the
amount of $31.3 million.
Scheduled liabilities included the Company's outstanding
publicly-held notes payable due in 1996 and 2003 totaling $379.1
million, including accrued interest; other notes payable totaling
$56.8 million, including accrued interest; federal income taxes
payable of $63.2 million, including accrued interest; and other
liabilities of $10.9 million. The outstanding publicly-held notes
payable amount includes the $21.5 million of such notes held by the
Company's subsidiary, Constitution Life Insurance Company, which
notes will be distributed to ICH.
The Company's estimate of $202.0 million of net cash proceeds
from the pending sale reported on Oct. 10, 1995 reflected
anticipated purchase price adjustments to be made upon the final
determination of the subsidiaries' statutory capital and surplus as
of Sept. 30, 1995. Additionally, the federal income tax payable
noted above is the parent company's portion of the consolidated $67
million tax settlement previously disclosed.
These amounts are unaudited, reflect various estimates made by
management based on currently available information and are subject
to revision for, among other things, the redetermination of income
taxes for the years 1990-1995, the ultimate resolution of tax
indemnification claim against a third party or any potential
liabilities under the indemnification provisions of the purchase
agreement related to the proposed sale of the Company's principal
subsidiaries. Additional information regarding ICH's assets and
liabilities will be provided as of Sept. 30, 1995 in connection with
the filing of its Report on Form 10-Q for the third quarter.
CONTACT: I.C.H. Corporation, Dallas,
Gerald J. Kohout, 214/954-7414
LAS VEGAS--Oct. 12, 1995--Mirage Resorts
Thursday reported 1995 third quarter earnings of $0.47 per share,
versus $0.39 for the prior-year quarter.
Net income of $45.2 million was up 23% over the $36.7 million
reported in last year's third quarter.
For the nine months, Mirage Resorts achieved earnings before
extraordinary items of $1.31 per share, nearly equaling the $1.32
earned for the full year 1994.
Results during the recent quarter were excellent at all four properties.
The Mirage maintained its record of strong performance, despite
a decline it its table games win percentage and the fact that there
were 8% fewer available room-nights in the quarter due to its guest
room enhancement program. The enhancement program was completed on
Aug. 18 and has been very well received.
For the month of September, the property's average room rate
rose 13% over September 1994, despite prior bookings at the pre-
enhanced rates. Occupancy of available standard rooms in the
quarter was 99.7%, versus 99.6%.
Treasure Island continued its strong financial performance of
the past several quarters. Its gross revenues rose 7% and operating
cash flow increased 5% over the strong results of the prior-year
quarter. For the nine-month period, Treasure Island generated
revenues of $295 million and operating cash flow (EBDIT) of $87
million -- up 9% and 24%, respectively.
As expected, the Golden Nugget's results were affected in the
recent quarter by disruption caused by construction of the Fremont
This $70 million project is being built by the major downtown
casino operators in partnership with the City of Las Vegas. It
converts Fremont Street (the principal street in front of the Golden
Nugget and other casinos) into a pedestrian mall, topped with a 100'
by 1,500' special effects canopy.
Within the canopy are 2.1 million computer-controlled, four-
color lights and a 540,000-watt sound system. The system was
recently tested very successfully and is expected to be fully
operational by December.
Operating results at the Golden Nugget - Laughlin were
relatively flat, despite an increase in local competition that
opened in December 1994.
The company-wide table games win percentage in the quarter was
20.3%, versus the exceptionally high 22.1% of the prior-year's third
quarter. For the 1995 nine-month period, the company-wide table
games win percentage was 20.2%, versus 19.2% for the 1994 period.
Corporate expense declined 17% from the third quarter of 1994,
as the company focused on design and construction of new projects
rather than gaming legislation efforts. The company's policy is to
expense virtually all new jurisdiction costs as incurred, so a
reduction in such activities resulted in a reduction in corporate
Interest cost declined 40% from the prior-year period. The
company's long-term debt as of Sept. 30, 1995, was $258 million -- a
reduction of 41% from Sept. 30, 1994.
In recognition of the company's steady cash flows and strong
balance sheet, Moody's Investors Service recently upgraded its
ratings on the company's two outstanding note issues and assigned a
Baa3 rating to its bank credit facility and a P3 rating to its
planned commercial paper program.
All three major securities rating agencies (Moody's, Standard &
Poor's and Duff & Phelps) now regard the company as "investment
grade" at the senior, unsecured debt level.
During the quarter, the company completed its design and
development process and began construction on its most ambitious
project yet -- Bellagio. This exciting $1.1 billion, 3,000 guest-
room luxury resort is scheduled to open on the Las Vegas Strip in
late 1997 or early 1998.
During the design and development process, the company decided
to reduce the height but increase the length of the Bellagio guest
room tower (leaving the number of guest rooms unchanged) and to
significantly increase the size of its casino, retail and convention
Bellagio will be connected via a transportation system to Monte
Carlo, a 3,000 guest-room hotel-casino currently being built at the
south end of the Bellagio site. This $344 million resort (including
its land at estimated value) is a 50/50 joint venture between the
company and Circus Circus Enterprises Inc. and is scheduled to open
in early summer 1996.
On Sept. 6, the company was selected by the City of Atlantic
City, N.J., as the preferred developer of a 178-acre city-owned site
in the Marina district, adjacent to the successful Harrah's
facility. This is the largest single casino-zoned land parcel in
The company currently plans to reenter the Atlantic City market
with a large, creative and exciting facility. It is expected to
cost between $500 million and $750 million.
The company previously developed, owned and operated the Golden
Nugget-Atlantic City, which, from its opening in 1980 until it was
sold for a large profit in 1987, led the Atlantic City market in
revenues and operating income, despite being one of the smallest
The company is currently working with the city on a Memorandum
of Understanding, which is expected to be followed within 12 months
by a development agreement and commencement of construction. Like
most of its other large facilities, the company anticipates that
this project will require 24 to 30 months for construction.
In Louisiana, the unofficial committee representing href="chap11.capital.html">Capital
Gaming International's bondholders recently informally indicated
their approval of the Mirage's existing agreement to purchase the
stock of Capital's New Orleans riverboat casino subsidiary for
approximately $62 million.
Capital Gaming's subsidiary is operating under Chapter 11
bankruptcy protection. The subsidiary intends to file a plan of
reorganization with the bankruptcy court providing for consummation
of the Mirage Resorts acquisition.
Mirage Resorts has also filed an application with the State of
Louisiana for the sole unassigned casino license. The company is
negotiating agreements for sites in Lake Charles and Bossier City,
La., where it hopes to develop regional vacation destination resorts
if it is successful in obtaining the necessary casino licenses and
other required consents and approvals.
MIRAGE RESORTS INC.
Three months Nine Months
For the periods ended Sept. 30,
1995 1994 1995 1994
(In thousands, except
Gross revenues $366,739 $365,769 $1,076,851 $1,030,802
Less - promotional
allowances (31,586) (29,424) (89,630) (87,590)
335,153 336,345 987,221 943,212
costs and expenses 252,750 250,250 751,029 735,569
Operating income before
corporate expense 82,403 86,095 236,192 207,643
Corporate expense 9,278 11,166 27,193 27,574
Operating income 73,125 74,929 208,999 180,069
Other income and (expenses)
Interest and other income 1,363 1,001 4,528 4,729
Interest cost (7,720) (12,971) (25,762) (41,011)
Interest capitalized 2,353 1,988 6,830 5,809
Other, net 965 (3,072) 1,205 (3,401)
(3,039) (13,054) (13,199) (33,874)
Income before income taxes
and extraordinary item 70,086 61,875 195,800 146,195
Provision for income
taxes (24,891) (22,370) (70,326) (53,180)
extraordinary item 45,195 39,505 125,474 93,015
Extraordinary item - loss
on early retirements of
debt, net of applicable
income tax benefit - (2,773) (6,785) (7,337)
Net income $45,195 $36,732 $118,689 $85,678
Income per share of common stock
extraordinary item $0.47 $0.42 $1.31 $0.98
Extraordinary item - loss
on early retirements of
debt, net of applicable
income tax benefit - (0.03) (0.07) (0.08)
Net income per share
of common stock $0.47 $0.39 $1.24 $0.90
Common and dilutive common
equivalent shares 96,505 94,448 95,977 94,715
MIRAGE RESORTS INC.
Three Months Nine Months
For the periods ended Sept. 30,
1995 1994 1995 1994
(Dollars in thousands)
The Mirage $200,630 $202,866 $582,735 $556,221
Treasure Island 100,270 94,075 295,195 271,691
Golden Nugget 50,584 53,275 150,697 152,937
Golden Nugget - Laughlin 15,255 15,553 48,224 49,953
366,739 365,769 1,076,851 1,030,802
Less - promotional
allowances (31,586) (29,424) (89,630) (87,590)
Net revenues $335,153 $336,345 $987,221 $943,212
Operating cash flow (EBDIT)(a)
The Mirage $ 63,112 $ 66,845 $169,858 $161,315
Treasure Island 28,363 27,092 86,916 70,154
Golden Nugget 10,333 12,798 32,690 35,143
Golden Nugget - Laughlin 2,953 2,950 11,378 11,373
$104,761 $109,685 $300,842 $277,985
The Mirage $ 52,625 $ 55,016 $140,619 $125,276
Treasure Island 21,051 19,863 65,021 49,210
Golden Nugget 7,523 10,060 24,501 27,273
Golden Nugget - Laughlin 1,204 1,156 6,051 5,884
82,403 86,095 236,192 207,643
Corporate expense (9,278) (11,166) (27,193) (27,574)
$ 73,125 $ 74,929 $208,999 $180,069
Company-wide table games
win percentage 20.3% 22.1% 20.2% 19.2%
Company-wide standard guest-
room occupancy percentage 98.8% 98.9% 98.7% 98.7%
(a) Earnings before depreciation, interest and taxes.
FACT SHEET COMPARISON
Bellagio Mirage Island
TOTAL BUILDING SQUARE FOOTAGE
LOWRISE 1,458,000 1,100,000 635,527
HIGHRISE 2,650,000 1,972,000 1,738,365
TOTAL 4,108,000 3,072,000 2,373,892
SQUARE FEET 109,564 95,900 75,000
TABLES 140 119 79
SLOTS 2,550 2,253 2,251
STANDARD ROOMS 2,643 2,765 2,688
SUITES 352 279 212
TOTAL UNITS 2,995 3,044 2,900
APPROX. NET SIZE OF
STANDARD ROOMS (SQ. FT.) 470 385 380
INTERIOR MEETING SPACE
SQUARE FEET 98,000 71,000 16,000
OUTLETS 12 11 9
SEATS 2,400 2,255 1,708
OUTLETS 17 12 14
SQUARE FEET 55,711 24,815 11,929
SEATS 1,800 1,503 1,525
SPA & SALON
SQUARE FEET 25,000 18,000 14,000
SQUARE FEET 3,754 0 3,027
SECAUCUS, N.J.--October 12, 1995--href="chap11.petrie.html">Petrie Retail
Inc., a privately-held company, today announced that due to
difficult retail industry conditions and resulting pressure from
factors and trade creditors, it has filed a voluntary petition to
seek protection under Chapter 11 of the Federal Bankruptcy Code.
The filing, which was made in the United States Bankruptcy Court for
the Southern District of New York, will enable the Company to
conduct business as usual and recently- installed management to
continue to implement its strategic plan to invigorate the business
and retain the confidence of vendors and other creditors.
Petrie has obtained a two year, $115 million debtor-in-
possession (DIP) financing facility from Chemical Bank. Subject to
court approval, these funds will enable the Company to meet future
inventory needs and to fulfill obligations associated with operating
its business, including the prompt payment of new vendor invoices.
Employees will receive salaries in the normal manner and basic
benefit programs will continue.
Verna Gibson, Petrie Retail Inc.'s Chairman, said, "Since our
new management team and investor group came to the Company to effect
a turnaround of Petrie Retail's operations in December 1994,
business has begun to demonstrate improvements. We have assembled
one of the best management teams in the industry, rebuilt our
merchandising and store organization, have more current inventory in
place, and have introduced new products that emphasize fit and
"Unfortunately, our efforts have coincided with the most
difficult industry environment anyone has seen in the last thirty
years. While we are seeing progress and improvement in our
business, factors and trade creditors have nonetheless increased
their pressure to unprecedented levels. As a result, we have been
confronting the most stringent terms that we have historically
"The protection of Chapter 11 will allow us to regain creditor
support and continue to implement the business strategy we have been
pursuing since our team joined Petrie Retail in December 1994. Our
new bank financing will enable us to continue to conduct business as
usual with an uninterrupted flow of fresh product for our customers
through the course of the Chapter 11 process. We look forward to
emerging from Chapter 11 as soon as practicable," she concluded.
Based in Secaucus, New Jersey, privately-held Petrie Retail Inc.
was formed in 1994 from the retail operations of Petrie Stores
CONTACT: (For media)
Kekst and Company,
Tom Daly/Dawn Dover/Adam Weiner
(For all other inquiries)
(201) 866-3600 ext. 7000
MOORESTOWN, N.J.--Oct. 12, 1995--Holly
Products, Inc. (NASDAQ: HOPR, HOPRW, HOPRP; BSE:HOP, HOPP) majority
stockholder of Country World Casinos,
Inc. (Bulletin Board CWRC)
today announced that Country World Casinos, Inc. filed a bankruptcy
petition under Chapter 11 of Title II of the United States Code.
The Board of Directors voted unanimously to file this action in
order to avoid the public sale of Country World's major assets and
protect the interest of the shareholders. Country World Casinos,
Inc. still seeks to construct the largest casino for limited stakes
gambling in Black Hawk, Colo. and Holly Products, Inc. continues to
aggressively pursue the financing necessary on behalf of Country
This action is taken to protect the interest of the shareholders
of both companies as a result of a Rule 120 Motion, finding of fact,
conclusion of law and order authorizing sale of certain real
property in Black Hawk, Colo., on behalf of New Allied Development
Corp. and Tommy Knocker Casino Corp., the holder of a second deed of
trust on behalf of the Country World property.
In May 1995, Country World Casinos, Inc. filed a civil action
against Tommy Knocker Casino and its parent New Allied Development
Corp. for, amongst other things, failure to secure a $475,000 first
deed of trust on the subject property in accordance with the terms
of a warranty deed, an overcharge of approximately $300,000 with
regard to an environmental remediation program and failure to
disclose the gaming regulatory history of certain control
individuals within New Allied Development Corp., which would hamper
Country World Casinos ability to obtain a gaming license. In
accordance with the above, Country World ceased making payments to
New Allied for subject property and sought relief through the
As a result of this action, Tommy Knocker filed a notice of
election and demand of sale with the Gilpin County Public Trustee in
June 1995 and there after a motion under Rule 120 in the city and
county of Denver, Colo. seeking an order authorizing the sale of
subject property. In Oct. 1995, Tommy Knocker and New Allied Corp.
were granted the motion by a Denver County Magistrate without regard
for the Civil Action filed by Country World Casinos, Inc. and
subsequently planned to conduct a public sale at 10:00 A.M., Oct.
William H. Patrowicz, president of Holly Products, Inc. stated
"We are disappointed in the Magistrate's ruling which forces this
bankruptcy filing. However, we remain optimistic that we will be
able to secure the necessary financing and provide greater earnings
potential for shareholders."
CONTACT: Holly Products , Inc.,
William Patrowicz, 609/234-1450
GRAND RAPIDS, Mich., Oct. 12, 1995 -- Ameriwood
International Corporation (Nasdaq-NNM: AWII) said today that a
difficult environment for regional discount retailers, the company's
largest unassembled furniture distribution channel, and consumer
electronic retailers is likely to cause the company to report a
decline in sales for the quarter ended September 30, 1995, of
between 3.5 percent and 4.5 percent. As a result, the company
expects to post a loss of between $0.07 and $0.11 per share in the
The company indicated that discount retailers are suffering from
a combination of softer-than-expected consumer spending levels and
competitive pressures from the dominant players in the discount
category. Regional discount retailers, specifically in the
Northeast section of the nation, have been hit particularly hard.
The impact of these reduced sales levels is further compounded by
retailers reducing apparent over-inventory positions beyond
adjusting for the current sales volume. Additionally, Ameriwood's
original equipment manufacturer (OEM) revenues were unfavorably
impacted by softness in consumer electronic sales.
Ameriwood expects that it will report a loss for the third
quarter when it reports its results later this month. Several
factors are contributing to this situation. The decline in sales,
resulting in lower production levels, makes it relatively more
difficult to absorb the company's fixed costs. Additionally, the
overall retail environment and the declaration of Chapter 11
bankruptcy by a significant customer, href="chap11.caldor.html">Caldor Corp., during the
quarter will likely necessitate an increase in Ameriwood's bad debt
reserve to reflect the weak retail environment.
"We are operating in a very difficult environment," said
Ameriwood President and Chief Executive Officer Jay Miglore. "The
weak environment in the regional discount retailer segment and the
reactions of our customers in that segment of the market are having
effects on every aspect of our business. The decline in sales and
its implications for overhead absorption and the need to increase
our bad debt reserves are just the most obvious. Additionally, as
our customers struggle to manage their own inventories, the number
of last minute changes to orders and deliveries increases. That, in
turn, makes it more difficult for us to operate efficiently and puts
additional pressure on our operating margins.
"The competitive pressures stemming from excess capacity in the
unassembled furniture industry remain intense," said Miglore. "All
industry participants are continuing to be aggressive in their
pricing to maintain market share and cover fixed costs. Ameriwood
continues to emphasize new product development and a focus on
growing channels such as office superstores, as well as further
penetration of other channels."
Miglore said that the quarter did have a number of bright
that will help Ameriwood deal with the current environment and allow
it to prosper over the longer term. To counter the weakness in the
discount channel, Ameriwood will continue to emphasize the office
superstore channel which Ameriwood believes is the most rapidly
growing unassembled furniture channel. "We are increasing our
penetration of the office superstore market, which has become our
second largest channel in less than two years, with products
designed for the home office and small business. These products and
other products targeted for channels other than discount are part of
our strategy to broaden our product line to include products for
additional channels of distribution and to reduce our relative
exposure in the discount retail segment of the market. We are
looking forward to the upcoming High Point, North Carolina,
furniture show with new products that will further that strategy."
Ameriwood Chairman Neil L. Diver noted that Ameriwood continues
to closely control costs to help mitigate the current environment.
"We are fortunate that we instituted cost controls last year in
anticipation of a difficult environment. Therefore, we are as lean
as we can be without degrading our ability to operate effectively.
Clearly, we have to continue to be aggressive in controlling our
costs, and I am confident we are doing so."
Separately, Diver indicated that Ameriwood is making progress
toward resolving the environmental issue at its Dowagiac, Michigan,
manufacturing facility. "Recent changes in Michigan environmental
law have caused us to escalate the planning and implementation of
remediation of the facility and the determination of costs of
remediation. However, we will also continue our efforts through
litigation to recover past and future costs from the other
responsible parties," said Diver.
Ameriwood Industries is one of the nation's leading
manufacturers of quality unassembled furniture for home and offices
and is also a major original equipment manufacturer of stereo
/CONTACT: Dave Kraker, Treasurer, of Ameriwood Industries,
616-336-9400; or Mike Arneth (general), Amy LaBan (analysts), or
Kuhlmann-Doerer (media), all of The Financial Relations Board,