RICHMOND, Va.--Nov. 30, 1995--Best
Co., Inc. (NASDAQ: BEST) today reported its third quarter net
and operating results.
Third quarter net sales for the 13 weeks ended October 28, 1995
decreased 2.1% to $325.9 million compared to $332.8 million for the
13 weeks ended October 29, 1994. Comparable store net sales
decreased 6.0% during the same period. Earnings before interest,
income taxes, depreciation and amortization ("EBITDA") was $0.2
million for the third quarter of 1995 compared to $6.2 million for
the third quarter of 1994. The company reported a net loss of $0.18
a share for the third quarter of 1995 compared to a net loss of
$0.02 a share for the same period in 1994.
Gross margin during the third quarter of 1995 was $76.5 million
compared to $80.5 million for the same period in 1994. Selling,
general and administrative expenses were $76.3 million for the third
quarter compared to $74.3 million for the same period in 1994. The
difference was due primarily to higher payroll related to the
opening of new stores and significantly higher paper and postage
costs for promotional publications.
Chief Executive Officer Stewart M. Kasen said: "Continuing
consumer caution adversely impacted sales throughout the period,
particularly in consumer electronics and toys. In addition, our
performance was affected by shifts in our promotional calendar."
Best Products, a specialty retailer offering category-dominant
assortments of jewelry and home products, operates 175 Best stores
in 23 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
Thirteen weeks ended Thirty-nine weeks ended
10/28/95 10/29/94 10/28/95 10/28/94
Historical Historical Historical Pro forma (a)
(Dollar amounts in thousands, except per share amounts)
Net sales $325,943 $332,821 $910,543 $918,825
Cost of goods sold 249,412 252,339 692,957 694,734
Gross margin 76,531 80,482 217,586 224,091
Selling, general and
expenses 76,350 74,310 227,210 215,061
amortization 4,555 3,024 11,807 7,371
Interest expense, net 5,286 4,389 13,581 13,423
Loss before income
tax benefit (9,660) (1,241) (35,012) (11,764)
Income tax benefit 3,863 496 14,005 4,706
Net loss (b) $ (5,797) $ (745) $ (21,007) $ (7,058)
Net loss per common
share $ (0.18) $ (0.02) $ (0.66) $ (0.22)
Weighted average common
shares outstanding 31,579,997 31,660,711 31,623,580 31,660,711
EBITDA (c) $ 181 $ 6,172 $ (9,624) $ 9,030
(a) The pro forma results of operations for the thirty-nine
weeks ended October 29, 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.
Oct. 28, Oct. 29,
(Dollar amounts in thousands)
Cash and cash equivalents $ 3,503 $ 40,849
Merchandise inventories 669,947 650,196
Other 50,066 33,226
Total current assets 723,516 724,271
Property and equipment, net 177,476 152,373
Deferred income taxes, net and other 27,925 25,896
Total Assets $ 928,917 $902,540
Liabilities and Stockholders' Equity
Short-term borrowings $ 18,000 $ -
Current maturities of long-term debt
and capital lease obligations 13,438 13,326
Accounts payable 250,396 240,657
Accrued expenses and other 80,928 75,245
Total current liabilities 362,762 329,228
Long-term debt 137,669 140,103
Capital lease obligations 86,201 94,836
Other 13,231 13,159
Total Liabilities 599,863 577,326
Common stock 31,579 31,661
Additional paid-in capital 298,387 298,305
Retained earnings (deficit) 4,088 (4,752)
Loans under Stock Purchase Loan Plan (5,000) -
Total Stockholders' Equity 329,054 325,214
Total Liabilities and Stockholders' Equity $ 928,917 $902,540
SECAUCUS, N.J.--Nov. 30, 1995--Following its
filing for Chapter 11 on October 18, href="chap11.jamesway.html">Jamesway Corporation
established a special office staffed by Human Resources personnel
retained by the company to provide assistance to employees seeking
guidance about other employment opportunities. Jamesway's efforts
are already finding some success.
"I estimate that approximately 50% of our merchandising
personnel -- about 34 people -- have secured employment with other
retailers," said Tom Corcoran, Director of Human Resources, who
heads the company's placement efforts. "In addition, about 18
people from our advertising, MIS, and finance departments have found
work. As soon as we announced that we would be helping to place our
employees in new jobs, I began receiving calls from other retailers
looking for personnel. So far, we have received inquiries from
several major retailers and a number of other specialty retailers."
The human resources office helps with resume writing, provides
phone-mail services, distributes job postings, distributes resumes
to prospective employers, and provides a central location for
networking between former employees and prospective employers.
Jamesway expects to keep the office open until December 15.
Michael J. Sherman, Executive Vice President-Special Projects,
said, "Under Chapter 11, the company must seek to maximize the
return for creditors and equity holders. Even as that
responsibility requires Jamesway to wind-down its operations, we are
working diligently to ensure that both ongoing and terminated
employees are treated fairly and equitably."
Jamesway's human resources personnel continue to act as a point
of contact for companies who may be interested in hiring recently
terminated Jamesway employees. Anyone wishing to inquire about such
employees should contact Tom Corcoran at 201-330-6323.
CONTACT: Jason Lynch / Jim Fingeroth,
Kekst and Company
NEW YORK--Nov. 30, 1995--
Properties, Inc. (RCPI) today announced that its Board of Directors
has determined that the Company will not pay a dividend for the
quarter ended Dec. 31, 1995.
RCPI is a mortgage real estate investment trust whose principal
asset is a $1.3 billion participating convertible mortgage loan to
the Borrower, comprised of two partnerships (
Properties and RCP Associates), which jointly own Rockefeller
and are 100% controlled by Rockefeller Group, Inc. (RGI).
Mitsubishi Estate Company, Ltd. controls an 80% equity interest in
RGI and Rockefeller Family Interests hold the remaining 20%. On May
11, 1995, the Borrower commenced cases under chapter 11 of the
bankruptcy law in the United States Bankruptcy Court for the
Southern District of New York.
RCPI is listed on the New York Stock Exchange as "RCP". As of
Nov. 29, 1995 there are 38,260,704 shares of common stock
CONTACT: Rockefeller Center Properties, Inc., New York,
Stephanie Leggett Young, 212/698-1440;
Gary Holmes, 212/484-7736
TORONTO--Nov. 30, 1995--Trenton Industries Inc.
(TSE:TII) today announced that the Court refused to approve the
proposals of Trenton Industries Inc. and its subsidiaries, Trenton
Machine Tool Inc. and SailRail Enterprises Limited.
As a result, each of these companies is deemed to have filed an
assignment in bankruptcy as of March 2, 1995.
CONTACT: Dean Antonakes, (613) 394-4861 or
(613) 394-6095 (FAX)