BRAINTREE, Mass., Dec. 8, 1995 -- href="chap11.bradlees.html">Bradlees Inc. (NYSE:
BLE)today reported results for the third quarter of fiscal 1995 (the
13 weeks ended October 28, 1995). Total sales for the third quarter
were $418.7 million compared with $465.7 million for the third
quarter of fiscal 1994 (the 13 weeks ended October 29, 1994). The
loss before interest, reorganization items and income taxes for the
quarter was $35.3 million compared with earnings before interest and
income taxes of $4.5 million for the same period last year. The net
loss for the quarter was $38.6 million or $3.38 loss per share,
compared with a net loss of $1.3 million or $.12 loss per share in
1994. Comparable stores sales declined 17.2%. Effective October
28, 1995, the Company completed the conversion of its financial
systems and changed its quarterly financial reporting calendar to
conform to the common retail presentation of 13 week (4-5-4)
quarters.
Sales for the three quarters (39 weeks) ended October 28, 1995
were $1.249 billion compared with $1.286 billion for the same period
in fiscal 1994, a decrease of 2.9%. The year-to-date loss before
interest, reorganization items and income taxes was $108.7 million
versus earnings before interest and income taxes of $3.4 million for
the same period in fiscal 1994. The year-to-date net loss was $98.5
million or $8.63 loss per share versus a net loss of $11.3 million
or $.99 loss per share for last year. Year-to-date comparable store
sales declined 11.8%. Reorganization items for this year's third
quarter and year-to-date represent primarily professional fees and
accrued retention bonuses directly related to Chapter 11, and a
provision for rejected leases and related asset write offs. The
rejected leases represent two previously planned new stores
(Cheltenham, PA and Staten Island, NY) and several smaller off-site
storage facilities. The Company will open three new stores,
previously planned for 1995, (Danvers/Peabody, MA, Providence, RI
and Worcester, MA) in March, 1996.
The Company completed the third quarter of fiscal 1994 with $67
million in cash and cash equivalents and no direct borrowings under
its Debtor-In-Possession (DIP) financing facility. The Company
currently anticipates that it will also not have any direct
borrowings under the DIP facility in the fourth quarter.
The Company continues to take important steps to reorient its
business away from low and no margin businesses and low margin
promotional programs, to more trend driven, profitable business
segments.
Bradlees, Inc. operates 136 discount department stores in Maine,
New Hampshire, Massachusetts, Connecticut, New York, New Jersey,
Pennsylvania, Rhode Island and Virginia. Bradlees' common stock is
listed and traded on the New York Stock Exchange under the symbol
"BLE". For additional Bradlees press releases, please call 1-800-
758-5804, extension 105750
BRADLEES, INC.
AND SUBSIDIARIES
(Operating as Debtor-in-Possession)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in thousands except per share amounts)
13 Weeks Ended
October 28, 1995 October 29, 1994
Total sales $418,656 $465,657
Leased department sales 14,529 17,596
Net sales 404,127 448,061
Cost of goods sold 288,417 308,084
Gross margin 115,710 139,977
Leased department and other
operating income 3,459 5,656
Total 119,169 145,633
Selling, store operating and
administrative expenses 141,694 128,910
Depreciation and amortization 12,781 12,208
Earnings (loss) before interest,
reorganization items and inc.
tax benefit (35,306) 4,515
Interest and debt expense, net 2,655 6,819
Reoranization items 13,066 ---
Loss before income
tax benefit (51,027) (2,304)
Income tax benefit (12,435) (991)
Net loss $(38,592) $(1,313)
Net loss per share $(3.38) $(0.12)
BRADLEES, INC.
AND SUBSIDIARIES
(Operating as Debtor-in-Possession)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in thousands except per share amounts)
39 Weeks Ended
October 28, October 29,
1995 1994
Total sales $1,248,532 $1,285,804
Leased department sales 43,367 44,479
Net sales 1,205,165 1,241,325
Cost of goods sold 865,488 846,588
Gross margin 339,677 394,737
Leased department and other
operating income 10,529 13,433
Total 350,206 408,170
Selling, store operating and
administrative expenses 419,696 368,934
Depreciation and amortization 39,212 35,841
Earnings (loss) before
interest, reorganization
items, income tax
benefit and cumulative
effect of accounting
change (108,702) 3,395
Interest and debt expense,
net 19,577 22,309
Reorganization items 21,035 ---
Loss before income
tax benefit and
cumulative effect
of accounting change (149,314) (18,914)
Income tax benefit (50,767) (8,133)
Loss before cumulative
effect of accounting
change (98,547) (10,781)
Cumulative effect
of accounting
change, net of
income tax benefit --- (485)
Net loss $(98,547) $(11,266)
Net loss per share:
Loss before cumulative
effect of accounting
change $(8.63) $(0.95)
Cumulative effect
of accounting
change, net of
income tax benefit --- (0.04)
Net loss per share $(8.63) $(0.99)
BRADLEES, INC.
AND SUBSIDIARIES
(Operating as Debtor-in-Possession)
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
October 28, Jan. 28, October 29,
1995 1995 1994
ASSETS
Current assets:
Restricted cash $1,083 $---
$---
Unrestricted cash and
cash equivalents 65,947 10,148 4,100
Total cash and cash equivalents 67,030 10,148
4,100
Accounts receivable 16,296 17,537
25,037
Inventories 413,236 306,218
429,671
Prepaid expenses 10,915 10,605
7,969
Deferred income taxes 27,733 1,421
14,191
Total current assets 535,210 345,929
480,968
Property, plant and equipment, net:
Property excluding capital
leases, net 210,859 223,333 210,742
Property under capital leases, net 58,946 59,808
63,920
Total property, plant and
equipment, net 269,805 283,141 274,662
Other assets:
Lease interests at fair value and lease
acquisition costs, net 240,187 247,485 249,547
Other, net 1,556 8,259
9,061
Total 241,743 255,744 258,608
Total assets $1,046,758 $884,814
$1,014,238
BRADLEES, INC.
AND SUBSIDIARIES
(Operating as Debtor-in-Possession)
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
October 28, Jan. 28, October 29,
1995 1995 1994
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $266,094 $219,639
$325,502
Accrued expenses 55,303 64,520
53,168
Short-term debt --- 21,000
72,000
Current portion of capital
lease obligations & other 5,019 7,896 7,103
Total current liabilities 326,416 313,055
457,773
Long-term liabilities:
Subordinated debt --- 225,000
225,000
Obligations under capital leases
and other 40,695 64,643 60,865
Deferred income taxes 65,504 89,959
92,912
Other long-term liabilities 28,573 28,725
29,559
Total long-term liabilities 134,772 408,327
408,336
Liabilities subject to settlement
under the reorganization case 521,845 --- ---
Stockholders' equity:
Common stock - 11,417,958 shares
outstanding (11,385,254 at 1/28/95,
11,273,396 at 10/29/94)
Par value 115 113
113
Additional paid-in-capital 137,954 138,077
137,020
Unearned compensation (945) (1,697)
(1,157)
Retained earnings
(accumulated deficit) (72,899) 27,359 12,479
Treasury stock, at cost (500) (420)
(326)
Total stockholders' equity 63,725 163,432
148,129
Total liabilities and
stockholders' equity $1,046,758 $884,814 $1,014,238
NEW YORK, Dec. 8, 1995 -- href="chap11.columbia.html">Columbia Gas System's $1 billion
shelf registration covering debentures, preferred stock, and common
stock is rated as follows: debentures 'BBB' and preferred stock
'BBB-'. The company's outstanding $2 billion 'BBB' debentures, $200
million 'BBB-' preferred stock, and $200 million 'BBB-' dividend
enhanced convertible preferred stock, were rated by Fitch upon
issuance on Nov. 28, 1995 when Columbia emerged from bankruptcy. The
credit trend is stable.
/CONTACT: Ralph Pellecchia, 212-908-0586, or Bill Stellenwerf,
212-908-0558/
CALGARY, ALBERTA--DECEMBER 8, 1995--TRANS-DOMINION
ENERGY(TSE: TDE) BANKRUPTCY COURT IN HOUSTON APPROVES THE
TRANSFER OF ASSETS (EXCLUDING PERU) TO CLAIMANTS ALLOWING CLOSURE OF
ACQUISITION OF PROPERTIES IN PAKISTAN, SENEGAL AND BULGARIA; SHELL
TO DRILL IN SENEGAL IN DECEMBER; MR. CHARLES WHEELER TO BECOME
CHAIRMAN
The Bankruptcy Court in Houston has agreed to the settlement
with the Claimants of the Guyana
Development Corporation
facilitating the closing of the agreements previously made between
Trans-Dominion ("TDE") and the Claimants. Within the next month,
TDE now anticipates that it will complete the acquisition of:
A further 1,900,000 shares and 5,400,000 warrants will be issued
in escrow pending the acquisition of a 6 percent carried working
interest in Block 50, Peru. Part of the consideration in escrow
could be released if certain discovery conditions are met in Senegal
or Pakistan.
The acquisition of the Peruvian property is subject to a further
court hearing and if the 6 percent carried working interest is
acquired, then all the shares and warrants in escrow would be
released together with US$100,000.
Shareholder and TSE approval has been given for this
acquisition. In June of this year, Tullow Oil, the operator of the
Pakistan License, announced a discovery well which flowed at the
rate of 9.5 million cubic feet per day. Subsequent review of the
technical data from this well indicates a small reserve of gas at
this location.
Further seismic work, planned for 1996, is required to delineate
the reservoir and to identify further drilling targets in the area.
Pecten (Shell), the operator of the Senegal offshore License, is
currently mobilizing a rig to drill the first of a probable two-well
program (second well optional). The well is expected to commence
drilling later this month.
At the closing, Mr. Charles Wheeler, a geologist with 34 years
of international experience at Exxon, reaching the level of vice-
president in charge of worldwide exploration and production, will be
appointed Chairman of TDE.
CONTACT: Michael J. Doherty,
President
011-44-1483-303776 or
011-44-1483-306179 (FAX)
or
W.J. (Jim) Cooke,
Operations Vice President
403/232-1166 or
403/232-6299 (FAX)
OAK BROOK, Ill., Dec. 8, 1995 -- href="chap11.envirodyne.html">Envirodyne Industries,
Inc. (Nasdaq SmallCap: EDYN) has entered into a settlement
agreement
resolving all claims of the former union employees of Wisconsin
Steel Company which shut down in March 1980. Under the terms of
settlement of Frank Lumpkin, et al. v. Envirodyne Industries, Inc.
and without any admission or finding of liability or wrongdoing,
Envirodyne will be released and discharged from all claims in
exchange for 900,000 shares of Envirodyne common stock. The United
States Bankruptcy Court for the Northern District of Illinois,
Eastern Division. Details of the notice to claim holders, timing of
the hearing to approve the settlement and plan of distribution are
pending. The company expects settlement to become effective in the
first quarter of 1996 when the shares of common stock, or the
proceeds from the sale thereof, will be distributed to the former
Wisconsin Steel union employees.
This settlement concludes nearly 16 years of litigation. The
plaintiff class, consisting of former employees of WSC Corp., had
sought to hold Envirodyne liable for certain pension and other
benefits arising out of their employment with WSC. WSC Corp., an
indirect wholly owned subsidiary of Envirodyne, acquired the assets
of Wisconsin Steel from Navistar International Corp. in 1977. The
former WSC Corp. employees had sought over $100 million in
compensatory, punitive and other damages under a collective
bargaining agreement.
Because the Lumpkin litigation arose before Envirodyne's
bankruptcy in 1993, plaintiffs' recovery is subject to Envirodyne's
Plan of Reorganization under which common stock was distributed to
Envirodyne's unsecured creditors in satisfaction of their allowed
claims. The company anticipates that upon completion of the Lumpkin
settlement and certain other claims to be satisfied through the
issuance of common stock, Envirodyne will have 14,479,721 shares of
common stock outstanding.
/CONTACT: J.S. Corcoran, S.M. Schuster or G.S. Donovan, all of
Envirodyne Industries, Inc., 708-575-2400./