GOSHEN, Ind., Dec. 5, 1995 -- Cobra
Industries (NYSE: COI)
(COIUQ) today reported a net loss for the third quarter ended
September 30, 1995, of $4.7 million, or 87 cents a share, on
revenues of $42.2 million, compared to net income from continuing
operations of $354,000, or 7 cents a share, on revenue from
continuing operations of $48.4 million in the 1994 third quarter.
For the nine months, the recreational vehicle manufacturer
reported a net loss of $10.6 million, or $1.96 per share, on revenue
of $148.6 million, compared to net income of $1.4 million, or 26
cents per share, on revenue of $152.3 million for its continuing
operations in 1994.
According to the company, the loss for the quarter and the nine
month period was the result of higher-than-anticipated costs
associated with Cobra's previously announced consolidation plan and
an overall slowdown in the recreational vehicle industry.
"In May 1995, Cobra's then-management approved a formal plan to
discontinue the company's motor home business," said Thomas A.
DeNova, chairman and chief executive officer. "The costs associated
with this plan, including the expense for warranties on units
already sold, the reduced value of unused inventory and the
consolidation from 18 manufacturing facilities to 9, were higher
than originally expected. As a result, the company had to take an
additional charge of $1.9 million during this year's third quarter."
Cobra expects this plan to be substantially completed by the end of
1995.
Cobra expects this sales decline to continue into the fourth
quarter of 1995. As well, the company expects fourth quarter and
year-end results to be negatively affected by the costs associated
with its recent Chapter 11 filing, the cash collateral requirements
of its current bank agreement and additional plant consolidations.
As part of its plan to focus on its core strengths in towable
trailers and tent campers, Cobra sold its profitable, but non-
strategic, Tri-Star distribution business in November 1995 for $3.8
million in cash. The buyer also agreed to assume approximately $1.1
million of Cobra's Tri-Star liabilities. Proceeds from this sale
were used to reduce Cobra's combined debt load of approximately $15
million to $10.8 million.
Cobra Industries, Inc., headquartered in Goshen, Indiana, is one
of North America's largest recreational vehicle manufacturers.
Cobra manufactures conventional trailers, park trailers, folding
camper trailers and van conversions. The company has manufacturing
and distribution facilities in Indiana, California, Texas and
Georgia.
Cobra Industries, Inc.
Condensed Balance Sheet
(Dollars in thousands)
(Unaudited)
September 30, December 13,
1995 1994
Assets
Current Assets:
Cash $1,915 $1,255
Accounts receivable, net 11,582 15,239
Inventories 16,409 35,167
Prepaid expenses 880 1,091
Total current assets $30,786 $52,752
Net property and equipment 7,057 8,625
Property, plant and equipment
held for sale at estimated
disposal costs 890 --
Other Assets:
Goodwill, net 15,013 15,296
Other intangible assets 125 685
Other assets 837 204
Total Assets $54,707 $77,562
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of long-term debt $16,118 $4,410
Accounts payable 16,501 23,718
Accrued warranty costs 1,977 1,666
Accrued payroll and related 982 741
Other current liabilities 473 3,099
Total current liabilities 36,051 33,634
Long-term debt, less current portion 4,750 19,191
Deferred compensation 170 350
Total Liabilities 40,971 53,175
Stockholders' Equity:
Common stock $0.01 par value,
20,000,000 shares authorized,
5,440,000 outstanding 54 54
Additional paid-in capital 33,619 33,619
Accumulated deficit (19,937) (9,286)
Total stockholders' equity 13,736 24,387
Total liabilities and
stockholders' equity $54,707 $77,562
Cobra Industries, Inc.
Condensed Statement of Operations
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1995 1994 1995 1994
Revenues:
Net sales $42,009 $48,128 $147,972 $151,941
Fee income 188 302 584 532
Total revenues 42,197 48,430 148,556 152,473
Cost of goods sold 39,106 41,282 133,858 132,887
Gross profit 3,091 7,148 14,698 19,586
Operating expenses:
Selling and delivery 2,222 1,785 6,707 5,571
General administrative 2,819 2,384 6,960 5,596
Operating Income (1,949) 2,979 1,031 8,419
Interest expense, net 657 761 2,200 2,224
Income before income taxes
and discontinued
operations (2,607) 2,218 (1,169) 6,195
Income taxes from
continuing
operations 22 29 106 132
Income from continuing
operations (2,629) 2,189 (1,275) 6,063
Loss from discontinued operations:
Loss on operations, net
of tax expense ($60 for
9 month period ended
Sept. 30, 1994 and $23
for 1995, $13 for
3 month period ended
June 30, 1994 and $15
for 1995. (1,902) (1,835) (4,277) (4,667)
Charge for discontinued
operations -- -- (4,909) --
Extraordinary Item,
net of tax ($2 for
the 3 month period
ended Sept. 30, 1995 (190) -- (190) --
Net income (loss) $(4,721) $354 $(10,651) $1,396
Net income (loss) per common share:
Continuing operations $(0.49) $0.41 $(0.24) $1.12
Discontinued operations (0.35) (0.34) (1.69) (0.86)
Extraordinary Items (0.03) -- (0.03) --
Net income (loss) $(0.87) $0.07 $(1.96) $0.26
Weighted average shares
outstanding 5,440,000 5,440,000 5,440,000 5,440,000
DALLAS--Dec. 5, 1995--I.C.H.
Corporation
(OTC:ICHD) announced today that U.S. Bankruptcy Court Judge Robert
C. McGuire in the Company's Chapter 11 proceeding had signed and
approved the order providing for the sale by the Company of its
principal insurance subsidiaries -- Southwestern Life Insurance
Company, Union Bankers Insurance Company and Constitution Life
Insurance Company -- and substantially all of the assets of the
Company's management subsidiary, Facilities Management Installation,
Inc., to Southwestern Financial Corporation, a company organized by
Knightsbridge Capital Fund I, L.P. and PennCorp Financial Group,
Inc., for gross consideration of $260 million, consisting of $210
million cash and $50 million of securities.
The Company expects to close the transaction before the end of the year.
CONTACT: I.C.H. Corporation, Dallas,
Gerald J. Kohout, 214/954-7414
BRIGHTON, Mich., Dec. 5, 1995 -- href="chap11.fretter.html">Fretter, Inc. (Nasdaq:
FTTR) today announced that Dixons U.S. Holdings and the subsidiaries
of Dixons US Holdings including Silo, Inc. filed for relief under
Chapter 11 of the United States Bankruptcy Code. Fretter, Inc., and
its subsidiary Fred Schmid Appliance and T.V. Co. are not parties to
the bankruptcy, and have not filed for bankruptcy protection.
The bankruptcy filing follows the closing of substantially all
of the Silo retail stores and cessation of the business of Silo.
Fretter, Inc. and its subsidiary, Fred Schmid Appliance and T.V.
Co. have not filed for bankruptcy protection. However, given the
Company's recent financial performance and the competitive
environment in which it operates, the Company is continuing to
explore various financial and other alternatives available to it.
Fretter, Inc. is a specialty retailer of consumer electronics and
home appliances, now operating 50 retail stores under the name
Fretter and through its subsidiary Fred Schmid Appliance and T.V.
Co.
/CONTACT: D. Campbell of Fretter, 810-220-5178/
SAN ANTONIO--Dec. 5, 1995--Argyle Television
Inc. (NASDAQ:ARGL) Tuesday announced that it completed the
acquisition of WGRZ-TV, the NBC affiliate in Buffalo, N.Y., from
Tak
Communications Inc., debtor in possession.
Argyle had previously purchased KITV-TV, the ABC affiliate in
Honolulu, from Tak in June 1995. The closing of the WGRZ purchase
was deferred until Tuesday at the request of Tak to enable it to
complete its bankruptcy plan of reorganization. Argyle paid Tak a
total of $146 million in cash for WGRZ and KITV.
Today, Argyle Television owns and operates five network-
affiliated stations: WZZM-TV, the ABC affiliate in Grand Rapids,
Mich.; WGRZ-TV, the NBC affiliate in Buffalo; KITV-TV, the ABC
affiliate in Honolulu; WAPT-TV, the ABC affiliate in Jackson, Miss.;
and WNAC-TV, the Fox affiliate in Providence, R.I. Argyle's Series
A common stock trades on the NASDAQ National Market System under the
symbol ARGL.
CONTACT: Argyle Television Inc., San Antonio,
Bob Marbut, 210/828-1700