VAN NUYS, Calif.--Jan. 16, 1996--href="chap11.cherokee.html">Cherokee Inc.
(NASDAQ:CHKE) Tuesday reported net sales of $2,155,000 and net
income of $336,000, or 5 cents per common and fully diluted share,
for the company's second fiscal quarter ended Dec. 2, 1995.
For the period ended Nov. 26, 1994, Cherokee reported net sales
of $18,906,000 and a loss of $5,428,000. Per-share data is not
presented for the period ended Nov. 26, 1994, due to the general
lack of comparability as a result of the revised capital structure
of the company.
For the six months ended Dec. 2, 1995, the company reported net
sales of $12,910,000 and net income of $3,177,000, or 49 cents per
common and fully diluted share. For the six months ended Nov. 26,
1994, the company reported net sales of $45,148,000 and a loss of
$7,771,000. Six-month results for the 1996 fiscal year primarily
reflect a non-recurring gain on the sale of the Cherokee uniform
division during the first quarter and the liquidation of
inventories.
The company has terminated manufacturing and importing apparel
and footwear and has sold most of its inventories. Cherokee's new
operating strategy now emphasizes retail direct as well as wholesale
and international licensing. The company grants retailers the
license to use the Cherokee trademark on certain categories of
merchandise, including those products that the company previously
manufactured.
Under this new operating strategy, the company has been able to
significantly reduce its overhead and ongoing operating costs. As a
result, Cherokee today is no longer comparable to the former
Cherokee.
For the six months and three months ended Dec. 2, 1995,
licensing revenues represented 4 percent and 17 percent of revenues,
respectively, and the terminated businesses represented 96 percent
and 83 percent of revenues, respectively. Future revenues will be
generated primarily through the licensing of the company's brand.
Continued Success of Licensing Strategy
"Since our new management team came on board in May 1995,
Cherokee has succeeded in increasing the company's minimum royalty
stream from about $4 million to over $25 million through 2001," said
Robert Margolis, chairman and chief executive officer of Cherokee.
"We are generating increasing royalty revenue from contracts
with existing and new domestic licensees, international licensees
and major retailers. Cherokee's retail direct licensing strategy
offers significant competitive advantages to retailers operating in
the current difficult retail environment," Margolis said.
The Cherokee mega brand, which took more than 20 years to build,
beats all store labels in recognized industry surveys. The November
1995 Fairchild Publication Survey ranked Cherokee sixth of the top
10 sportswear brands. On Aug. 15, 1995, the company entered into a
major alliance with Target Stores, a division of Dayton Hudson
Corp., guaranteeing minimum royalties of $11,540,000 through 2001.
In addition to Target, the company has signed licensing
agreements with Mervyn's, Modern Woman/Woman's World, J. Byron and
others. The company has 15 domestic and 10 international licensing
agreements covering an ever-increasing range of products.
Overseas Expansion
In November 1995, the company announced details of its master
licensing agreement with Mondragon International, a 25-year-old
publicly traded Philippines-based company. Mondragon also owns the
licensing rights in the Philippines for Nike-brand apparel and
Warner Brothers cartoon characters.
"Our agreement with Mondragon International, added to our
already successful licensing agreement with Suzuya Co. Ltd. in
Japan, further enhances our overseas operations and is testament to
the enduring strength of the Cherokee brand worldwide," said
Margolis. The Cherokee brand is now authorized to sell in more than
2,000 locations around the world.
Strong Financial Position
Cherokee is now debt-free and well-capitalized. As of Dec. 2,
1995, the company had cash and cash equivalents of $5,388,000. In
addition, Cherokee has reached agreement in principle to settle all
remaining unsecured creditors' claims arising from its 1994 Chapter
11 proceedings.
These claims are payable in shares of stock of the company, and
therefore payment of these claims will not have a material adverse
effect on the financial condition of the company.
Sale of the "Rockers" Brand
On Dec. 1, 1995, Cherokee sold its patents and trademarks
related to the "Rockers" brand footwear for $250,000 to Strategic
Partners Inc. Cherokee will continue to collect royalties from
Strategic Partners for the use of the trademark in connection with
the sale of Cherokee footwear to the uniform trade. The company
continues to pursue opportunities to divest other trademarks,
including "American Legends," "Pacific Express" and "A-Smile."
Stock Repurchase Program
On Nov. 2, 1995, Cherokee announced that its board of directors
approved a plan to repurchase up to 1 million shares of the
company's common stock. As of Dec. 2, 1995, the company has
repurchased 21,134 common shares.
Strengthening Market Position
"We are at various stages of completing a continuing stream of
licensing agreements in the U.S., Australia, China and other
countries in the Far East and Asia, as well as Europe, Mexico, South
America and Canada. These agreements are expected to produce gains
in earnings and capital appreciation in the current fiscal year.
Cherokee is strengthening its market position and is continuing
to become a major factor in the apparel licensing marketplace,"
Margolis concluded.
Cherokee, based in Van Nuys, is a marketer and licenser of the
Cherokee brand products. The company is pursuing retail direct
licensing agreements with major retailers in addition to exclusive
as well as non-exclusive wholesale and retail licensing operations
in the United States and abroad.
For more information on Cherokee via facsimile at no cost,
simply call 800/PRO-INFO and dial client code 058. -0-
CHEROKEE INC.
Consolidated Statements of Operations
(Unaudited)
Successor Predecessor Successor Predecessor
Company Company Company Company
Three Months Ended Six Months Ended
---------- ----------- ----------- -----------
12/2/95 11/26/94 12/2/95 11/26/94
---------- ----------- ----------- -----------
Net Sales $2,155,000 $18,906,000 $12,910,000
$45,148,000
Cost of Goods Sold 1,807,000 18,380,000 10,455,000
37,886,000
Gross Profit 348,000 526,000 2,465,000
7,262,000
Selling, General &
Administrative
Expenses 425,000 6,592,000 3,066,000
14,440,000
Operating Loss (77,000) (6,066,000) (601,000)
(7,178,000)
Other Expenses (Income):
Interest Expense 31,000 2,251,000 345,000
4,881,000
Investment & Interest
Income (148,000) (30,000) (203,000)
(57,000)
Gain on Sale of Uniform
Division & Other
Assets (245,000) --- (3,708,000)
---
Other (51,000) 794,000 (212,000)
999,000
Total Other (Income)
Expenses, Net (413,000) 3,015,000 (3,778,000)
5,823,000
Income (Loss) before
Income Taxes 336,000 (9,081,000) 3,177,000
(13,001,000)
Income Taxes (Benefit) --- (3,653,000)
--- (5,230,000)
Net Income (Loss) 336,000 (5,428,000) 3,177,000
(7,771,000)
Net Income per Common
& Common Equivalent
Shares $0.05 (a) $0.49
(a)
Weighted Average Common
& Common Equivalent
Shares Outstanding 6,673,893 (a) 6,473,989
(a)
Net Income per Common
& Common Equivalent
Shares Outstanding $0.05 (a) $0.49
(a)
Weighted Average Common
& Common Equivalent
Shares Outstanding
-- Fully Diluted 6,673,893 (a) 6,473,989
(a)
(a) Per-share result is not presented due to the general lack of
comparability as a result of the revised capital structure of
the company.
CHEROKEE INC.
Balance Sheets
(Unaudited)
Successor Company
12/2/95 6/3/95
----------- -----------
(Unaudited)
ASSETS
Current Assets:
Cash & Cash Equivalents (includes
Restricted Cash of $308,000) $ 5,388,000 $ 285,000
Receivables, Net 1,354,000 11,553,000
Inventories 250,000 11,530,000
Other Current Assets 340,000 506,000
Total Current Assets 7,332,000 23,874,000
Property & Equipment, Net 25,000 37,000
Assets Held for Sale 3,576,000 3,665,000
Notes Receivable & Other, Net 2,236,000 684,000
Total Assets $13,169,000 $28,260,000
LIABILITIES & STOCKHOLDERS' EQUITY
Current Liabilities:
Short-term Revolving Credit & Other $ --- $14,213,000
Accounts Payable & Accrued Expenses 993,000 1,360,000
Accrued Payroll & Related Expenses 139,000 1,559,000
Other Accrued Liabilities 57,000 2,306,000
Income Taxes Payable 88,000 100,000
Total Current Liabilities 1,277,000 19,538,000
Deferred Income Taxes Payable 1,500,000 1,500,000
Stockholders' Equity:
Common Stock, $0.02 par value,
20,000,000 shares authorized,
6,096,000 shares issued and
outstanding at 6/3/95 and
6,457,766 shares issued and
outstanding at 12/2/95 129,000 122,000
Additional Paid-in Capital 11,696,000 11,703,000
Accumulated Deficit (1,234,000) (4,411,000)
Note Receivable from Stockholder (199,000) (192,000)
Stockholders' Equity 10,392,000 7,222,000
Total Liabilities & Stockholders'
Equity $13,169,000 $28,260,000
ATLANTA, Jan. 16, 1996 -- Anacomp,
Inc. (NYSE: AAC), today
announced its year-end financial results for the period ended Sept.
30, 1995.
For the year, Anacomp incurred a loss of $238.3 million, or
$5.22 per share, on sales of $591.2 million. That compares to a net
income of $15.0 million, or 27 cents per share, on sales of $592.6
million in fiscal 1994. Included in the fiscal 1995 loss are $136.9
million of special charges (representing a $108.0 million write- off
of goodwill and $28.9 million of costs associated with previous
software investments), $32.7 million of restructuring charges, and a
one-time $29.0 million deferred tax provision.
Anacomp's operating income for fiscal 1995, which is income
before special and restructuring charges, interest, other income,
and income taxes, was $41.4 million. That compares to operating
income of $79.6 million in fiscal 1994. The decrease is largely
attributable to lower micrographics margins as a result of lower
selling prices; a decline in COM system and supplies sales; higher
selling, general, and administrative costs; and a change in product
mix as relatively less profitable magnetics products represented a
greater portion of total sales.
The restructuring charges in 1995 result from Anacomp's decision
to close its Omaha, Nebraska magnetic media manufacturing facility,
exit the manufacture of readers and reader/printers at its San
Diego, California manufacturing facility, and make significant
reductions in its workforce. The charges are comprised of severance
costs, inventory write-downs, excess facility reserves, and other
miscellaneous restructuring charges.
Anacomp announced last week that it has filed a pre-negotiated
plan of reorganization under Chapter 11 of the U.S. Bankruptcy Code
in order to accomplish a financial restructuring. During this
process, the company's business operations will continue as normal
- including paying vendors on normal trade terms, honoring all
obligations to customers, and paying all employees as usual.
"Anacomp historically has had strong operating cash flows, and
that continues today," noted P. Lang Lowrey III, Anacomp's recently
appointed President and Chief Executive Officer. "Our performance
in 1995 was impacted by a combination of negative market trends that
resulted in decreased revenues and margins, along with a failure to
manage costs in this changing environment. In addition, both our
results and our ability to invest into new technologies has been
hampered by a debt load that's simply too big."
Anacomp believes that benefits from its operational
restructuring and downsizing efforts will begin to be realized in
the first quarter of fiscal 1996. The company expects its first
quarter results to track its new five-year business plan.
"We're very pleased that we have achieved our initial cost
reduction targets in the first quarter as a result of our downsizing
and our continuing operational restructuring," added Lowrey. "Now,
with our pre- negotiated plan of organization filed January 5, we
are close to achieving a new financial framework that will allow
Anacomp to maintain its existing operations going forward while also
investing in new digital products and services."
Anacomp also announced that Paul G. Roland was elected chairman
of Anacomp's Board of Directors, replacing Louis P. Ferrero. Mr.
Roland has served as an Anacomp director since 1984. He has been a
partner with the law firm of Ruckelshaus, Roland, Hasbrook &
O'Connor since 1971.
Anacomp also announced that it expects the New York Stock
Exchange to delist the company's stock as a result of Anacomp's
recent Chapter 11 filing.
In addition, Anacomp announced that the company has deferred
setting a date for its annual shareholder meeting while the
refinancing process continues.
Anacomp is a leading provider of multiple-media data management
solutions, delivering cost-effective strategies that incorporate
micrographic, digital, and magnetic output media.
CONSOLIDATED BALANCE SHEETS
Anacomp, Inc. and Subsidiaries
(Dollars in thousands, Sept. 30, Sept. 30,
except per share amounts) 1995 1994
ASSETS
Current assets:
Cash and cash equivalents $19,415 $ 19,871
Accounts and notes receivable,
less allowances for doubtful
accounts of $7,367 and
$3,550, respectively 90,091 117,441
Current portion of
long-term receivables 6,386 8,021
Inventories 53,995 63,375
Prepaid expenses and other 5,306 5,421
Total current assets 175,193 214,129
Property and equipment,
at cost less accumulated
depreciation and
amortization of $96,898 and
$100,574, respectively 44,983 66,769
Long-term receivables,
net of current portion 12,322 16,383
Excess of purchase price
over net assets of businesses
acquired and other intangibles,
net 160,315 279,607
Deferred tax asset, net of
valuation allowance of $108,400
and $57,000, respectively --- 29,000
Other assets 28,216 52,751
Total $421,029 $658,639
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Current portion of
long-term debt $389,900 $ 45,222
Accounts payable 57,368 82,790
Accrued compensation,
benefits and
withholdings 20,891 16,573
Accrued income taxes 9,365 9,000
Accrued interest 40,746 19,701
Other accrued liabilities 60,587 35,027
Total current liabilities 578,857 208,313
Long-term debt, net of
current portion --- 366,625
Other noncurrent
liabilities 5,841 9,467
Total noncurrent
liabilities 5,841 376,092
Redeemable preferred stock, $.01 par value,
issued and outstanding
500,000 shares
(aggregate preference
value of $25,000) 24,574 24,478
Stockholders' equity (deficit):
Common stock, $.01 par
value: authorized
100,000,000
shares: 46,187,625 and
45,728,505 issued,
respectively 462 457
Capital in excess of par value 182,725 181,843
Cumulative translation
adjustment 1,329 (269)
Accumulated deficit (372,759) (132,275)
Total stockholders' equity (deficit) (188,243) 49,756
Total $421,029 $658,639
CONSOLIDATED STATEMENTS OF OPERATIONS
Anacomp, Inc. and Subsidiaries
Three months ended
(Dollars in thousands, Sept. 30,
(except per share amounts) 1995 1994
Revenues:
Services provided $ 53,919 $ 55,988
Equipment and supply sales 85,036 107,512
Total 138,955 163,500
Operating costs and expenses:
Costs of services provided 43,017 39,597
Costs of equipment and supplies
sold 66,319 76,117
Selling, general and
administrative expenses 30,173 26,794
Special charges 6,889 ---
Restructuring charges 32,695 ---
Total 179,093 142,508
Income (loss) before interest,
other income, income taxes,
and cumulative effect of
accounting change (40,138) 20,992
Interest income 446 839
Interest expense and fee
amortization (18,628) (16,378)
Financial restructuring costs (2,235) ---
Other income (loss) 641 174
Total (19,776) (15,365)
Income (loss) before taxes and
cumulative effect of accounting
change (59,914) 5,627
Provision for income taxes 32,200 3,200
Income (loss) before cumulative
effect of accounting change (92,114) 2,427
Cumulative effect on prior years
of a change in accounting for
income taxes --- ---
Net income (loss) (92,114) 2,427
Preferred stock dividends and
discount accretion 539 539
Net income (loss) available
to common $(92,653) $ 1,888
Earnings (loss) per common and
common equivalent share:
Income (loss), net of preferred
stock dividends and
discount accretion $ (2.01) $ 0.04
Cumulative effect on prior years
of a change in accounting
for income taxes --- ---
Net income (loss) available to
common stockholders $ (2.01) $ 0.04
Twelve months ended
(Dollars in thousands, Sept. 30,
(except per share amounts) 1995 1994
Revenues:
Services provided $219,881 $223,511
Equipment and supply sales 371,308 369,088
Total 591,189 592,599
Operating costs and expenses:
Costs of services provided 161,211 156,214
Costs of equipment and supplies
sold 279,456 264,269
Selling, general and
administrative expenses 109,127 92,539
Special charges 136,889 ---
Restructuring charges 32,695 ---
Total 719,378 513,022
Income (loss) before interest,
other income, income taxes,
and cumulative effect of
accounting change (128,189) 79,577
Interest income 2,000 3,144
Interest expense and fee
amortization (70,938) (67,174)
Financial restructuring costs (5,987) ---
Other income (loss) (212) (192)
Total (75,137) (64,222)
Income (loss) before taxes and
cumulative effect of accounting
change (203,326) 15,355
Provision for income taxes 35,000 8,400
Income (loss) before cumulative
effect of accounting change (238,326) 6,955
Cumulative effect on prior years
of a change in accounting for
income taxes --- 8,000
Net income (loss) (238,326) 14,955
Preferred stock dividends and
discount accretion 2,158 2,158
Net income (loss) available
to common stockholders $(240,484) $ 12,797
Earnings (loss) per common
and common equivalent share:
Income (loss), net of preferred
stock dividends and
discount accretion $ (5.22) $ 0.10
Cumulative effect on prior years
of a change in accounting
for income taxes --- 0.17
Net income (loss) available to
common stockholders $ (5.22) $ 0.27
CONSOLIDATED STATEMENTS OF CASH FLOWS
Anacomp, Inc. and Subsidiaries
Year ended Sept. 30,
(Dollars in thousands) 1995 1994 1993
Cash flows from operating activities:
Net income (loss) $(238,326) $14,955 $18,591
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation and amortization 43,375 40,649 38,208
Cumulative effect of a change in
accounting for income taxes --- (8,000) ---
Provision (benefit) for losses on
accounts receivable 2,742 (695) (892)
Provision for inventory valuation 10,956 --- ---
Deferred taxes 29,000 6,000 ---
Special charges 136,889 --- ---
Loss (gain) on disposition of assets 6,308 776 (721)
Change in assets and liabilities, net
of effects from acquisitions:
Decrease in accounts and
long-term receivables 30,948 3,040 1,215
Decrease (increase) in
inventories and prepaid
expenses (1,612) 15,254 1,308
Increase in other assets (8,207) (11,349) (5,329)
Increase (decrease) in accounts
payable and accrued expenses 11,465 (3,623) 1,125
Decrease in other noncurrent
liabilities (3,626) (4,323) (7,613)
Net cash provided by operating
activities 19,912 52,684 45,892
Cash flows from investing activities:
Proceeds from sale of assets 18,777 7,805 15,956
Purchases of property, plant and
equipment (14,372) (18,868) (20,726)
Proceeds from notes receivable --- --- 1,343
Payments to acquire companies
and customer rights (1,262) (14,565) (1,114)
Net cash provided by (used in)
investing activities 3,143 (25,628) (4,541)
Cash flows from financing activities:
Proceeds from issuance of common
stock and warrants 743 1,484 2,262
Proceeds from revolving line
of credit and long-term
borrowing 22,529 39,000 39,799
Principal payments on
long-term debt (45,859) (71,095) (77,958)
Preferred dividends paid (1,031) (2,062) (2,062)
Payments related to the issuance
of debt and equity --- --- (7,707)
Net cash used in financing
activities (23,618) (32,673) (45,666)
Effect of exchange rate changes
on cash 107 566 (644)
Decrease in cash and cash equivalents (456) (5,051) (4,959)
Cash and cash equivalents at
beginning of year 19,871 24,922 29,881
Cash and cash equivalents at
end of year $ 19,415 $19,871 $24,922
Supplemental disclosures of cash flow information:
(Dollars in thousands) Year ended Sept. 30,
1995 1994 1993
Cash paid during the year for:
Interest $ 39,426 $ 57,781 $59,552
Income taxes $ 4,128 $ 2,007 3,468
Supplemental schedule of non-cash investing and financing
activities:
During 1995, 1994, and 1993 the Company acquired companies and
rights to provide future services. In conjunction with these
acquisitions, the purchase price consisted of the following:
(Dollars in thousands) Year ended Sept. 30,
1995 1994 1993
Cash paid $1,262 $14,565 $1,114
Credit memos issued --- 3,085 150
Notes payable issued --- 4,290 3,170
Stock issued --- 17,201 ---
Total fair value of
acquisitions $1,262 $39,141 $4,434
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
Anacomp, Inc. and Subsidiaries
Capital in Cumulative
Year ended Sept. 30, Common excess of Translation
1995, 1994 and 1993 Stock par value Adjustment Deficit Total
(Dollars in thousands)
BALANCE AT 9/30/92 $397 $161,198 $ 8,200 $(161,505)$ 8,290
Common stock issued for
purchases under the
Employee Stock
Purchase Plan 4 1,253 --- --- 1,257
Exercise of stock
options 5 997 --- --- 1,002
Preferred stock
dividends --- --- --- (2,062) (2,062)
Accretion of redeemable
pref. stock discount --- --- --- (96) (96)
Translation adjustments
for year --- --- (12,944) --- (12,944)
Other --- (239) --- --- (239)
Net income for the year --- --- --- 18,591 18,591
BALANCE AT 9/30/93 406 163,209 (4,744) (145,072) 13,799
Common stock issued for
purchases under the
Employee Stock Purchase
Plan 3 872 --- --- 875
Exercise of stock
options 3 606 --- --- 609
Preferred stock
dividends --- --- --- (2,062) (2,062)
Accretion of redeemable
preferred stock
discount --- --- --- (96) (96)
Translation adjustments
for year --- --- 4,475 --- 4,475
NBS stock issuance 20 7,380 --- --- 7,400
Graham Stock Issuance 25 9,776 --- --- 9,801
Net income for the year --- --- --- 14,955 14,955
BALANCE AT 9/30/94 457 $181,843 $ (269) $(132,275)$49,756
Common stock issued for
purchases under the
Employee Stock Purchase
Plan 3 689 --- --- 692
Exercise of stock
options 1 50 --- --- 51
Preferred stock
dividends --- --- --- (2,062) (2,062)
Accretion of redeemable
preferred stock
discount (96) (96)
Translation adjustments
for year --- --- 1,598 --- 1,598
Graham stock issuance 1 143 --- --- 144
Net loss for the year --- --- --- (238,326)(238,326)
BALANCE AT 9/30/95 $462 $182,725 $1,329 $(372,759)($188,243)
NEWARK, N.J., Jan. 16, 1996 -- Public Service
Enterprise
Group Incorporated (Enterprise) (NYSE: PEG) reported today (January
16, 1996) that consolidated earnings for the year 1995 were $662.3
million or $2.71 per share of common stock, based on 244.7 million
average shares outstanding. Consolidated earnings for 1994 were
$679.0 million or $2.78 per share, based on 244.5 million average
shares outstanding.
Enterprise's results for the year were affected by a combination
of factors - despite higher electric sales and improved nonutility
earnings - reflected in the results of its principal subsidiary,
Public Service Electric and Gas Company (PSE&G). These factors
included higher maintenance expenses associated with the shutdown of
the Salem Nuclear Generating Station and the scheduled refueling and
maintenance outage of the Hope Creek Nuclear Generating Station;
lower gas sales caused by mild weather during the 1995 winter
months; higher depreciation expenses due to more plant in service,
and certain adjustments related to federal taxes and allowance for
funds used during construction (AFDC).
Earnings for Public Service Electric and Gas Company (PSE&G),
Enterprise's principal subsidiary, were $582.7 million or $2.38 per
share of Enterprise common stock, compared with 1994 earnings of
$618.9 million or $2.53 per share.
Earnings for Enterprise Diversified Holdings Incorporated
(EDHI), parent company of Enterprise's nonutility businesses, were
$79.6 million or 33 cents per share of Enterprise common stock,
compared with 1994 earnings of $60.1 million or 25 cents per share.
EDHI's 1995 results reflect the collection of a bankruptcy
settlement from Columbia Gas
Transmission Company related to a take-
or-pay contract with Enterprise's oil and gas business, Energy
Development Corporation (EDC). The settlement amounted to a one-
time earnings gain of $23 million or 9 cents per share of Enterprise
common stock recorded in the fourth quarter of 1995.
Enterprise's earnings for the fourth quarter of 1995 were $152.3
million or 62 cents per share. Earnings for the corresponding
period of 1994 were $131.8 million or 54 cents per share. Fourth-
quarter results for PSE&G were $105.7 million or 43 cents per share,
compared to $109.6 million or 45 cents per share in 1994. In the
fourth quarter, EDHI earned $46.6 million or 19 cents per share,
compared to 1994 fourth-quarter earnings of $22.3 million or 9 cents
per share.
Enterprise's revenues for 1995 were $6.16 billion, compared to
1994 revenues of $5.92 billion. Fourth-quarter revenues for 1995
were $1.67 billion, compared to $1.47 billion.
PSE&G's electric sales to customers in 1995 increased by 1.3%
when compared to 1994 sales. Residential and commercial sales were
up 2.8% and 1.6%, respectively, while industrial sales were down
0.9%.
Total gas sold and transported increased 3.0% in 1995.
Residential and firm industrial sales decreased 5.9% and 19%,
respectively, while firm commercial sales were up 0.4%. The decline
in industrial sales was largely due to a shift of customers to the
transportation service gas firm sales category. Firm transportation
service increased 46.2%.
PSE&G's electric sales increased 3.1% in the fourth quarter when
compared to sales in the same period of 1994. Residential sales
increased by 3.5% and commercial sales were up 5.3%, while
industrial sales decreased 1.7%.
Total gas sold and transported increased 16.9% in the fourth
quarter when compared to the same period of 1994. Residential and
firm commercial sales increased 14.7% and 15.9%, respectively, while
firm industrial sales declined by 10.1%. Transportation service
increased by 41.6%.
/CONTACT: Neil Brown, Corporate Communications of PSE&G,
201-430-6017/
DELRAY BEACH, Fla., Jan. 16, 1996 -- FIBERCORP
INTERNATIONAL, INC. (OTC Bulletin Board: FCII) today announced that
its wholly owned subsidiary, href="chap11.fibercorp.html">FiberCorp, Inc. has filed a Chapter 11
proceeding under the U.S. bankruptcy laws. The current Company
management will continue to manage the business as a "Debtor-in-
Possession", pending a Plan of Reorganization. Robert C. Furr, Esq.
of Furr and Cohen, P.A., Boca Raton, Fl. (4O7-395-0500) has been
retained as bankruptcy counsel to FiberCorp, Inc.
Commenting on this action, Craig B. Stearns, Chairman, stated
that "We have taken this step to provide the time frame necessary to
concentrate our limited financial and human resources on
demonstrating the commercial viability of FiberCorp, Inc.'s
proprietary battery monitoring technology for commercial battery
installations. This battery testing technology is the key to our
plan of re-organization. That plan will serve as a mechanism to
address creditor claims and emerge as a stable and viable
enterprise.
"FiberCorp has accomplished a significant portion of its
previously announced debt restructure plan," Mr. Stearns reported.
"By year end 1995, approximately $1.250 million of closely held debt
had been extinguished in exchange for approximately 2.5 million
shares of newly issued common stock. Nonetheless, the Company has
not been successful in raising the necessary new capital to complete
the remainder of the plan," Mr. Stearns added.
Commenting further on the Company's direction, Mr. Stearns
reiterated the previously announced intention to sell FiberCorp,
Inc.'s T-1 Access technology.
Fibercorp, Inc. markets and supports a complete line of pro-
active vendor-independent transmission and power management systems
for telecommunication networks and has developed a battery
monitoring system for use at commercial battery installations.
/CONTACT: Nancy Mlinarchik, FiberCorp, 407-495-5568; investor
relations, Paul Cornell, 813-535-7380/
DENVER, Jan. 16, 1996 -- Creative Programming and
Technology Ventures, Inc. (Nasdaq: CPTV), a producer of innovative
video game development technology through its group of operating
companies, today reported a net loss for the first quarter of fiscal
1996 ended November 30, 1995. The company also announced that it
remains committed to its restructuring efforts, first announced in
December 1995, which include a strong emphasis on video game
development as well as management changes and cost reductions.
CPTV reported revenues of $50,560 for the first quarter of 1996,
down from $322,865 in fiscal 1995. The company reported a net loss
of $812,552, or 24 cents per share, for fiscal 1966 first quarter,
compared with net income of $57,202, or 2 cents per share for the
comparable period in fiscal 1995. The drop in revenues and the net
loss in earnings were primarily attributable to negative results at
the company's Alexandria Studio's subsidiary.
Revenues in the first quarter of fiscal 1996 declined due to the
inability to secure new business contracts. The company also
reported increased SG&A expenses in the first quarter of fiscal 1996
compared with 1995, due primarily to one-time severance and accrued
vacation payments in connection with the end of employment
relationships with certain Alexandria management personnel.
Restructuring Plan Underway
CPTV also reaffirmed its decision to re-align the company
according to the guidelines first announced in early December 1995.
These guidelines established the company's main priority for the
future: building "next generation" entertainment software, including
32-bit processing systems and CD-ROM technologies for the consumer
marketplace. Other parts of the plan included management changes at
Alexandria and reduced outside acquisition/investment activities.
Gary Vickers, CPTV President, said, "We have made major
investments in our OddWorld subsidiary's development of
'SoulStorm(TM)' an interactive software game." "SoulStorm" will be
the first game in the "StoryDwelling Adventure(TM)" series, and it
represents the company's current primary investment focus and
business prospect. The company believes the game will appeal to a
wide variety of game players of any age because it incorporates
adventure, action and strategy elements in one game. "Although
there can be no assurances that our game development efforts will be
commercially successful, we have committed our full energies and
resources to establishing a definitive product development and
branding strategy in an attempt to position our company for a
profitable fiscal 1997." As a result of these investments, OddWorld
reported no revenues for the three months ended November 30, 1995,
and management projects that OddWorld will continue to report
negative operating results until the completion of the "SoulStorm"
title.
CPTV has recently shown prototypes of the "SoulStorm" title to
numerous third-party publishers and distributors and their
preliminary indications of interest are very high. Vickers noted,
however, that the video game business is risky and literally
thousands of game titles compete for available retail shelf space,
which at any given time has room for only a few hundred select
titles. Vickers therefore cautioned that there is no guarantee that
"SoulStorm" will be able to broadly secure the necessary shelf space
and visibility it would need to achieve significant commercial
success. Vickers said, "I feel very positive about the feedback we
are receiving on the title and relative prospects for CPTV
investors. With our main goal of building shareholder value, we
have decided to restructure and thereby concentrate our resources on
fewer opportunities having the best combined market potential."
Creative Programming and Technology Ventures, Inc. (CPTV),
through its operating subsidiaries, OddWorld Inhabitants and
Alexandria Studios, headquartered in Los Osos, Calif., designs and
develops interactive entertainment software for the latest video
game systems, such as Sega Saturn, 3DO and Sony Playstation. It
also intends to focus on Windows 95 as a new and viable game
platform. CPTV is headquartered in Denver and its stock trades on
the Nasdaq Small-Cap Market under the symbol CPTV.
CREATIVE PROGRAMMING AND TECHNOLOGY VENTURES, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
QUARTER ENDED NOVEMBER 30
1995 1994
Revenues $50,560 $322,865
Cost of sales 189,017 344,094
Gross profit (loss) 138,457 21,229
Selling, general and administrative expenses 719,223 371,044
Loss from operations (857,690) (392,273)
Other credits (charges):
Investment income 51,186 95,528
Interest expense (6,048) (1,294)
Loss from continuing operations (812,552) (298,039)
Income tax benefit -- 88,935
Minority interests in loss of
consolidated subsidiaries -- 26,720
Loss from continuing operations (812,552) (182,384)
Discontinued operations:
Income (loss) from operations of
divested subsidiary Celluloid,
Studios, Inc., net of income tax
expense of $63,200 in 1994. -- 239,586
Net loss ($812,552) $57,202
Income (loss) per common share:
Loss from continuing operations ($0.24) ($0.05)
Income from discontinued operations -- 0.07
Net income (loss) ($0.24) $0.02
Weighted average number of common shares 3,424,317 3,332,967
CONSOLIDATED BALANCE SHEET (UNAUDITED)
NOVEMBER 30, AUGUST 31,
ASSETS 1995 1995
Current assets:
Cash and cash equivalents $443,016 $1,302,292
Investments 1,751,876 2,385,625
Accounts receivable:
Trade, net of allowance for doubtful accounts -- 48,331
Related party -- 7,133
Unbillable receivable -- 24,440
Prepaid expenses 119,908 36,533
Sale of discontinued operation:
Note receivable under sale of
discontinued operations 74,723 --
Current portion of note receivable -- 72,526
Total Current Assets $2,389,523 $3,876,880
Property and equipment, net 930,939 870,265
Other assets:
Certificate of deposit 412,000 $412,000
Investment 35,000 35,000
Project costs 1,761,778 1,469,644
Excess of purchase price over net assets
acquired, net of accumulated amortization
of $27,591 75,266 76,800
Note receivable under sale of
discontinued operations, net of
current portion 97,457 111,206
Organization costs and other 113,398 123,406
Total 2,494,899 2,228,056
Total assets $5,815,361 $6,975,201
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt:
Financial institution $134,776 $133,690
Obligations under capital leases 33,647 33,595
Accounts payable:
Trade 102,770 211,356
Related parties -- 115,167
Accrued expenses and other 95,912 114,310
Total current liabilities 367,105 608,118
Note payable, financial institution, net
of current portion 190,173 224,037
Obligations under capital leases, net
of current portion 10,597 20,497
Total long-term liabilities 200,770 244,534
Shareholders' equity
Preferred stock, par value $0.01;
authorized 10,000,000 shares, issued
and outstanding 1,000,000 (aggregate
liquidation preference $10,000) 10,000 10,000
Common stock, par value $0.01,
authorized 50,000,000 shares,
issued and outstanding, 3,425,000 shares 34,250 34,250
Capital in excess of par 8,355,641 8,335,641
Deficit (3,089,894) (2,277,342)
Less 111,121 shares common stock
in treasury, at cost (62,511) --
Total shareholders' equity 5,247,486 6,122,549
Total liabilities and
shareholders' equity $5,815,361 $6,975,201
NORWALK, Conn.--Jan. 16, 1996--The
Caldor
Corporation (NYSE: CLD) announced today that the U.S. Bankruptcy
Court for the Southern District of New York has granted the Company
an extension of the period under which it has the exclusive right to
file a plan of reorganization with the court.
The exclusivity period, which had been scheduled to expire on
January 17, 1996, has now been extended through July 31, 1996.
Likewise, the period in which the Company can solicit acceptances
for the reorganization plan has been extended through September 30,
1996.
The extensions were fully supported by the Company's bank group,
the creditors' committee and newly formed equity committee.
Don Clarke, Chairman and Chief Executive Officer, said, "Since
the time of the filing on September 18, 1995, we have focused our
efforts on stabilizing our business operations and our relationships
with vendors and the trade community, our employees, shareholders
and customers. This was particularly important with the Christmas
season coming shortly after the filing. With the extension of the
exclusivity period, we can now continue with the preparation of our
business plan that will serve as the foundation for our plan of
reorganization."
The Caldor Corporation is the fourth largest discount department
store chain in the U.S., with annual sales of approximately $2.8
billion. It operates 166 stores in ten East Coast states. With a
strong consumer franchise in high-density urban/suburban markets,
Caldor offers a diverse merchandise selection, including both
softline and hardline products.
CONTACT: Media: Wendi Kopsick/Jim Fingeroth,
Kekst and Company
(212) 593-2655
-OR-
Investor Relations: Dave Peterson
(203) 849-2334
MIAMI, Jan. 16, 1996 -- Spec's Music, Inc.
(Nasdaq: SPEK)
previously announced that its primary lender has declared a default
under its loan agreement with the company and demanded that the
outstanding loan balance of approximately $14 million be repaid.
Contrary to prior published reports, today the company reached
agreement with the lender for a forty-five (45) day forbearance from
all legal action in consideration for a partial principal repayment
to facilitate the company's discussion with other financial
institutions and lenders for replacement financing.
Spec's Music, Inc. operates 57 stores in Florida and Puerto
Rico. It is the largest specialty music retailer in Miami/Ft.
Lauderdale, Tampa and Florida's eastern Gold Coast.
/CONTACT: Barbara Goldberg, O'Connell & Goldberg, 305-964-9098/
SAN DIEGO--Jan. 17, 1996--Audre
Recognition
Systems Inc. (Audre) Wednesday announced that its board and the
board of directors of AUDRE Inc. have requested and he has agreed,
that Thomas F. Casey step down as the president of AUDRE Inc. and
Audre Recognition Systems Inc. effective Jan. 15, 1996.
The boards of directors have decided that on an interim basis,
Dr. James Fiebiger and Donald Lundell will share the duties of the
offices of president and chief executive officer of both companies.
The boards of directors have determined that such action was in the
best interest of the two companies and will aid and assist the
companies in their on-going efforts to successfully reorganize
pursuant to Chapter 11 of the United States Bankruptcy Code.
The companies are currently discussing a possible consulting
agreement with Casey, but as of this date, no agreement has been
reached.
AUDRE (AUtomatic Digitizing and REcognition), founded in 1983,
is a designer and developer of automatic document conversion
software. AUDRE designs, develops and markets a line of proprietary
applied intelligence-based software systems. AUDRE's products are
used to convert engineering drawings, technical publications and
maps to computer intelligent formats.
CONTACT: Tim Kent, 310/442-0599