LEXINGTON, Mass.--Jan. 5, 1996--The Stride Rite
Corp. (NYSE:SRR) today reported sales and earnings for its 1995
fiscal year and the fourth quarter.
Net sales for the 1995 fiscal year totaled $496.4 million, off 5
percent from 1994's total of $523.9 million. The company incurred a
net loss of $8.4 million ($.17 per share) in fiscal 1995 compared to
earnings of $19.8 million ($.40 per share) in the 1994 fiscal year.
The 1995 results include a non-recurring, pretax charge of $16.6
million ($10 million, net of income tax benefits, or $.20 per share)
related to the cost reductions and product and business unit
realignments, which were announced previously. Before the non-
recurring charge, the company's earnings for fiscal 1995 were $.03
per share, down from the $.40 per share earned in fiscal 1994.
Net sales for the fourth quarter of fiscal 1995 totaled $78.1
million, down 8 percent from $85.1 million reported in the
comparable period of fiscal 1994. The company incurred a net loss
of $20.9 million or $.42 per share in the 1995 quarter compared to a
net loss of $1.2 million or $.02 per share in last year's fourth
quarter. The 1995 fourth quarter loss includes the non-recurring
charge described above which amounted to $.20 per share.
Robert C. Siegel, Stride Rite's chairman and chief executive
officer, commented, "The company's success depends heavily on the
progress of our Keds brand. Sales for the Keds division in fiscal
1995 finished 16 percent below last year's level. Keds' 1995
results were hurt by weak retail sales trends and changes in women's
fashions. We made progress in both the Sperry Top-Sider and
International divisions in 1995 as sales of these business units
exceeded the 1994 totals by 10 percent and 26 percent, respectively.
However, revenues of Stride Rite children's business were soft in
1995 as sales to independent retailers were off 6 percent from last
year and comparable store sales of our company-owned retail stores
decreased 2.1 percent from 1994. Total sales our Retail division
increased 17 percent from last year because of new stores opened
over the last two years."
Siegel continued, "Many of the same pressures which hurt our
performance in fiscal 1995 are still present in the marketplace. In
mid-Novemeber, we announced a series of actions to realign certain
businesses and product lines. While the cost of these decisions
negatively impacted our 1995 fourth quarter results, the related
reduction in annual operating costs of $20 million will increase our
profitability in fiscal 1996. This week, Jonathan Caplan, who has
been president of the Keds division for the past two years, resigned
from the company. I have immediately assumed direct responsibility
for the Keds business while we search for a new leader. I have also
asked Gerrald Silverman, who has been the president of our
International division, to take on a key leadership role in the Keds
organization. I am optimistic about the Spring 1996 product
direction for each of our business. However, the retail outlook
continues to be a difficult one and in spite of the product
improvements, our backlog of orders for spring delivery is currently
below last year's level. A portion of this decrease in Spring 1996
advance orders was anticipated because our Keds division is
emphasizing the quick-response capabilities of our Kentucky
distribution facility in an effort to reduce retailer inventories
and to improve the profitability of the Keds brand for our major
retail customers. The increased reliance on quick-response reorders
has resulted in lower advance bookings for Spring and is expected to
change Keds normal shipping pattern by shifting sales from the first
quarter to the second quarter of 1996. We will continue to spend
aggressively to market our brands in 1996 and will place a renewed
emphasis on improving the presentation of our products at point of
sale."
The Stride Rite Corp. markets the leading brand of high quality
children's shoes in the U.S. Other footwear products for children
and adults are marketed by the company under its well known brand
names, including Sperry Top-Sider, Keds and Grasshoppers.
A summary of sales and net income (loss) for the fourth quarter
and fiscal year is as follows.
For the Quarter Ended For the Year Ended
Dec. 1,1995 Dec. 2,1994 Dec. 1,1995 Dec. 2,1994
Net Sales $78,134,000 $85,137,000 $496,432,000
$523,877,000
Net income
(loss)(a) (20,893,000) (1,237,000) (8,430,000)
19,798,000
Net income (loss)
per share of
common stock(a) $(.42) $(.02) $(.17)
$.40
Average common
shares and common
equivalent shares
outstanding
during the
period 49,673,000 49,662,000 49,780,000
49,904,000
(a) The net loss for the 1995 fourth quarter and fiscal year
includes a non-recurring charge, net of income tax benefits, of
$9,972,000 or $.20 per share
RICHMOND, Va.--January 5, 1996--Access America
announced today that it expects to pay more than $1,000,000 in
claims to hundreds of purchasers of its Access America Travel
Protection products following the cessation of services of href="chap11.regency.html">Regency
Cruise Line.
Beth Godlin, Senior Vice President of Travel Industry Sales &
Marketing stated, "Access America products are designed to cover a
wide range of emergencies - bankruptcy of a travel supplier is one
that effects a large number of travelers." She went on to say that,
"it is important for agents to realize that the products offered
through cruise lines and tour operators do not protect purchasers if
the supplier offering the product ceases operations as in the case
of Regency Cruise Line."
Coverage for supplier bankruptcy provided by "third-party"
insurance products can vary greatly. Many "third party" insurance
products offer limited coverage for tour operator and cruise line
bankruptcy. Others exclude coverage from the basic trip
cancellation/interruption benefit and sell default/bankruptcy
coverage at an extra cost to the customer.
Regency Cruise Line is not the first major supplier to abruptly
cease operations. In the past Access America coverage has also
benefited customers of Eastern Airlines and Exploration Cruise Lines
when those suppliers went bankrupt. Access America's trip
cancellation and interruption benefit also covers non-refundable
payments or deposits if the customer cancels or interrupts his trip
for unexpected illness, injury or death of the traveler, family
members and traveling companions, and several other unforeseen
events.
Access America is a division of World Access Service
Corporation, the country's largest full service provider of
insurance services and products to organizations in the travel,
health care, and financial service industries. World Access travel
and medical assistance and insurance, credit card enhancements and
managed care programs cover more than 50 million persons. World
Access provides all product development and distribution, claims
administration, customer service, and emergency assistance services
for all of the products it markets.
CONTACT: Access America,
Beth Godlin
212/499-9200
ATLANTA, Jan. 5, 1996 -- Anacomp,
Inc. (NYSE: AAC) today
filed a pre-negotiated plan of reorganization under Chapter 11 of
the United States Bankruptcy Code. The plan is based on an
agreement-in- principle for a financial restructuring between
Anacomp and representatives of an unofficial committee of holders of
the company's 15% Senior Subordinated Notes.
Anacomp's business operations will continue as normal. Under
the terms of the reorganization plan, the company's trade creditors
will not be impaired and will be paid in full in the ordinary course
of business. In addition, the bankruptcy court has allowed the
company to continue to pay its vendors on normal trade terms, to
honor all obligations to customers (including pre-petition warranty
claims), and to pay all employees as usual.
The plan filed by Anacomp calls for the company's current debt
and accrued unpaid interest and dividends of approximately $457
million (including preferred stock) to be reduced by approximately
$173 million. In very general terms, the plan calls for:
A disclosure statement will contain an official description of
Anacomp's proposed financial restructuring. Once this statement is
approved by the bankruptcy court, it will be mailed to all debt and
preferred stock holders.
"This is an important step for Anacomp's future," noted P. Lang
Lowrey III, the company's new president and chief executive officer.
"Our reorganization plan, which has the support of our largest group
of debt holders, would significantly reduce our debt and would
position us to maintain our on-going operations while investing in
new digital technologies."
Certain representatives of Anacomp's senior secured lenders have
indicated they oppose the plan filed by the company today. "We will
continue to work with all of Anacomp's lenders under the Chapter 11
umbrella to try to reach a consensual agreement," added Lowrey.
Anacomp is a leading provider of multiple-media data management
solutions, delivering cost-effective strategies that incorporate
micrographic, digital, and magnetic output media.
/CONTACT: Jeff Withem, Corporate Communications, 404-876-3361,
ext. 8527; or Nancy Vandeventer, Investor Relations, 800-350-3044,
both
of Anacomp/
DALLAS, Jan. 5, 1996 -- Search Capital Group, Inc.
("Search") (OTC Bulletin Board: SRCG.OB) today reported a
consolidated net loss of $20.1 million for the fiscal year ended
Sept. 30, 1995, comprised of a loss of $10.6 million for the parent
company, excluding Fund subsidiaries, and a loss of $9.5 million for
the Fund subsidiaries. For the fiscal year ended Sept. 30, 1994,
Search had reported a consolidated net loss of $26.2 million,
comprised of a loss of $8.9 million for the parent company and a
loss of $17.3 million for the Fund subsidiaries. Net interest income
for the 1995 fiscal year was $2.7 million for the parent company,
excluding the Fund subsidiaries, and net interest loss was $430,000
for the Fund subsidiaries, compared to net interest income in fiscal
1994 of $2.7 million and $1.4 million, respectively.
The net loss for the parent company, excluding the Fund
subsidiaries, increased $1.7 million, from $8.9 million for fiscal
1994, to $10.6 million for fiscal 1995, primarily due to (i) special
charges of $2.4 million related to settlement of shareholder
litigation and $315,000 related to costs associated with the
bankruptcy filings of certain Fund subsidiaries, and (ii) an
increase of $2.9 million in general and administrative expenses
primarily incurred in severance of former management, opening retail
lots for sale of repossessed vehicles and opening branch offices for
collection of excessively past due accounts, all of which were
partially offset by an improvement in the provision for credit
losses of $3.4 million.
The net loss for the Fund subsidiaries decreased $7.8 million,
from $17.3 million for fiscal 1994 to $9.5 million for fiscal 1995,
primarily due to a significant decrease in the provision for credit
losses of $13.7 million, partially offset by (i) decreased net
interest income of $1.8 million related to a run off of older loan
portfolios and (ii) increased administrative expenses of $4.0
million incurred in the repossession, repair and sale of the higher
numbers of repossessed vehicles and also due to increased costs
arising from intensified collection efforts.
"1995 has been a year of significant change and progress for
Search. After considerable pain, effort and expense to restructure
operations, settle the shareholder litigation, and reposition Search
for growth in the finance industry, we are now poised and ready to
pursue internal growth as well as acquisitions. We anticipate that
with a favorable vote and confirmation of the Joint Plan of
Reorganization, Search will be able to attain profitability in
fiscal 1996," stated George Evans, chairman and CEO of Search.
Prior to Evans' appointment as CEO and the restructuring of the
management team, Search had created wholly-owned single purpose
entities, referred to as Fund subsidiaries to fund contract
receivable purchasing. Search has eight active non-recourse Fund
subsidiaries, which issued $72.5 million in notes, of which, $68.3
million was still outstanding at Sept. 30, 1995. Neither Search nor
any other subsidiary or affiliate of Search has guaranteed repayment
of the Fund subsidiaries' notes.
In August 1995, the Fund subsidiaries filed for protection and
reorganization under Chapter 11 of the U.S. Bankruptcy Code. The
Parent entity, Search, has not filed for bankruptcy protection but
is a co-proponent with the non-recourse Fund subsidiaries in a plan
of reorganization in those bankruptcy proceedings. Search believes
that the majority of the noteholders will elect the Search Equity
Option. Upon the completion of a successful conversion of debt to
equity, Search would be positioned with approximately $10 million in
cash, $40 million in equity, and prospective credit lines ranging
from $100 million to $300 million with various lenders.
Search Capital Group, Inc. is a specialized financial services
company engaging in the purchase, management and securitization of
used motor vehicle receivables. Search shares (SRCG.OB) are
currently being traded on the OTC Bulletin Board.
SEARCH CAPITAL GROUP, INC. AND SUBSIDIARIES
Consolidating Statements of Operations
($000's except per share amounts)
Year Ended September 30, 1995
Search & Fund
Non-Fund Subsidiaries
Subsidiaries & Eliminations Consolidated
Interest revenue $ 2,949 $ 10,523 $ 13,472
Interest expense 252 10,953 11,205
Net Interest Income (loss) 2,697 (430) 2,267
Provision for credit losses 1,365 1,763 3,128
Net interest income (loss)
after provision for credit
losses 1,332 (2,193) (861)
General and administrative
expenses 8,930 7,368 16,298
Class Action settlement
charges 2,420 -- 2,420
Restructuring Charges 315 -- 315
Other (income) expense -- -- --
Loss before income taxes (10,333) (9,561) (19,894)
Preferred stock dividends (240) -- (240)
Net loss attributable to
common stockholders $(10,573) $ (9,561) $(20,134)
Net loss per share attributable
to common shareholders $ (2.26)
Weighted average number of
common shares outstanding 8,967,000
Year Ended September 30, 1994
Search & Fund
Non-Fund Subsidiaries
Subsidiaries & Eliminations Consolidated
Interest revenue $ 2,921 $ 11,133 $ 14,054
Interest expense 237 9,731 9,968
Net Interest Income (loss) 2,684 1,402 4,086
Provision for credit losses 4,757 15,423 20,180
Net interest income (loss)
after provision for credit
losses (2,073) (14,021) (16,094)
General and administrative
expenses 5,996 3,324 9,320
Class Action settlement
charges 560 -- 560
Restructuring Charges -- -- --
Other (income) expense (24) -- (24)
Loss before income taxes (8,605) (17,345) (25,950)
Preferred stock dividends (240) -- (240)
Net loss attributable to
common stockholders $ (8,845) $(17,345) $(20,190)
Net loss per share attributable
to common shareholders $ (2.33)
Weighted average number of
common shares outstanding 11,258,000
SEARCH CAPITAL GROUP, INC. AND SUBSIDIARIES
Consolidating Balance Sheets
($000's)
September 30, 1995
Search & Fund
Non-Fund Subsidiaries Consolidated
Subsidiaries & Eliminations Totals
ASSETS
Gross Contracts
Receivable $ 7,365 $ 59,312 $ 66,677
Unearned Interest (1,300) (11,806) (13,106)
Net Contract Receivables 6,065 47,506 53,571
Allowance For Credit Losses (2,862) (15,761) (18,623)
Loan Origination Fees 591 3,163 3,754
Amortization of Loan
Origination Fees (506) (2,431) (2,937)
Net Contact Receivables
after Allowance for
Credit Losses & Loan
Origination Fees 3,288 32,477 35,765
Cash and Cash Equivalents 442 -- 442
Restricted Cash -- 8,105 8,105
Vehicles Held for Resale 93 508 601
Deferred Note Offering Costs 42 9,011 9,053
Accumulated Amortization (41) (5,950) (5,991)
Net Deferred Note Offering
Costs 1 3,061 3,062
Property and Equipment 2,126 -- 2,126
Accumulated Depreciation (820) -- (820)
Net Property and Equipment 1,306 -- 1,306
Inter-company Balances 646 (646) --
Other Assets, Net 650 (9) 641
TOTAL ASSETS $ 6,426 $ 43,496 $ 49,922
LIABILITIES
Line of Credit $ 1,058 $ -- $ 1,058
Notes Payable -- 68,253 68,253
Cash Overdraft -- -- --
Accrued Settlement 2,912 -- 2,912
Accrued Restructuring 214 -- 214
Accounts Payable and other
Liabilities 1,804 247 2,051
Accrued Interest 2 1,067 1,069
Total Liabilities 5,990 69,567 76,557
STOCKHOLDERS' EQUITY
Preferred Stock - 12%
Senior Convertible, $.01
Par Value, Cumulative,
$400,000 Shares Issued
and Outstanding 4 -- 4
Common Stock, $.01 Par
Value, 20,000,000 Shares
Authorized, 11,897,630
issued 117 -- 117
Additional Paid-in
Capital 26,766 -- 26,766
Accumulated Deficit (25,301) (26,071) (51,372)
Treasury Stock at Cost,
3,026,389 Shares (1,150) -- (1,150)
Total Shareholder Equity 436 (26,071) (25,835)
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 6,426 $ 43,496 $ 49,922
September 30, 1994
Search & Fund
Non-Fund Subsidiaries Consolidated
Subsidiaries & Eliminations Totals
ASSETS
Gross Contracts
Receivable $ 35,255 $ 98,848 $134,103
Unearned Interest (6,785) (20,862) (27,647)
Net Contract Receivables 28,470 77,986 106,456
Allowance For Credit Losses(12,803) (31,830) (44,633)
Loan Origination Fees 518 2,221 2,739
Amortization of Loan
Origination Fees (331) (1,559) (1,890)
Net Contact Receivables
after Allowance for
Credit Losses & Loan
Origination Fees 15,854 46,818 62,672
Cash and Cash Equivalents 939 -- 939
Restricted Cash -- 3,586 3,586
Vehicles Held for Resale 185 506 691
Deferred Note Offering Costs 42 8,813 8,855
Accumulated Amortization (39) (3,112) (3,151)
Net Deferred Note Offering
Costs 3 5,701 5,704
Property and Equipment 1,459 -- 1,459
Accumulated Depreciation (397) -- (397)
Net Property and Equipment 1,062 -- 1,062
Inter-company Balances 752 (752) 0
Other Assets, Net 472 -- 472
TOTAL ASSETS $ 19,267 $ 55,859 $ 75,126
LIABILITIES
Line of Credit $ 3,487 $ -- $ 3,487
Notes Payable -- 70,768 70,768
Cash Overdraft 1,218 -- 1,218
Accrued Settlement 560 -- 560
Accrued Restructuring -- -- --
Accounts Payable and other
Liabilities 1,864 122 1,986
Accrued Interest 5 1,478 1,483
Total Liabilities 7,134 72,368 79,502
STOCKHOLDERS' EQUITY
Preferred Stock - 12%
Senior Convertible, $.01
Par Value, Cumulative,
$400,000 Shares Issued
and Outstanding 4 -- 4
Common Stock, $.01 Par
Value, 20,000,000 Shares
Authorized, 11,897,530
issued 117 -- 117
Additional Paid-in
Capital 27,006 -- 27,006
Accumulated Deficit (14,969) (16,509) (31,478)
Treasury Stock at Cost,
3,026,389 Shares (25) -- (25)
Total Shareholder Equity 12,133 (16,509) (4,376)
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 19,267 $ 55,859 $ 75,126