BILOXI, Miss., Jan. 22, 1996 -- The United States
Bankruptcy Court for the Southern District of Mississippi ruled
Friday, January 19 to grant Casino Resource Corporation (Nasdaq:
CSNR) exclusive rights to purchase the Palace Casino [previously
owned by Maritime Group, Ltd.]
located in
Biloxi, Mississippi. This ruling eliminated any possible offerings
from other parties, and the sale is expected to close by February 2
of this year. The dockside vessel, which will remain on the
Mississippi Gulf Coast, will be purchased by Casino Resource
Corporation for a total cash purchase price of $12.0 million, a
fraction of the estimated cost of $52.0 million. Casino Resource
Corporation contemplates financing its purchase of the property
through a combination of debt and equity, or through a joint venture
partner who would provide a portion of the equity.
Jack Pilger, chief executive officer of Casino Resource
Corporation, also announced today results for the first quarter 1996
ended December 31, 1995. For the three-month period ended December
31, 1995, the company reported net income of $223,000 or $0.03 per
share (8,361,901 weighted average shares outstanding) on revenues of
$3,260,416 compared to a net loss of $46,424 or $0.01 per share
(7,392.462 weighted average shares outstanding) on revenues of
$2,420,294 for the first quarter of 1995.
"While our revenues are not yet significant, we are pleased to
report our third straight quarter of positive earnings," said
Pilger. "We continue to aggressively explore gaming opportunities as
well as the expansion of our entertainment division. In doing so,
we hope to significantly grow our earnings over the next 18 months."
Casino Resource Corporation is a diversified hospitality and
entertainment enterprise. The company owns and operates the 2,000-
seat Country Tonite Theater in Branson, Missouri; Country Tonite
Enterprises, an award-winning theatrical production company in Las
Vegas (producers of the "Country Tonite Show," currently in its
fourth year at the Aladdin Hotel); and the 154-room Grand Hinckley
Inn, located in Hinckley, Minn., adjacent to the Grand Casino. In
addition, the company has entered into strategic alliances for the
development of Indian gaming properties in Michigan and Indiana and
is negotiating the acquisition of the Palace Casino in Biloxi.
CASINO RESOURCE CORPORATION
SUMMARY OF EARNINGS
Three Months Ended
12-31-95 12-31-94
(unaudited)
EARNINGS
Revenues $ 3,260,416 $ 2,420,294
Income (loss) from
continuing operations 223,000 (72,733)
Income (loss) from
discontinued operations -- 26,309
Net income (loss) $ 223,000 $ (46,424)
EARNINGS PER COMMON SHARE
Income (loss) from
continuing operations $ 0.03 $ (0.01)
Income (loss) from
discontinued operations -- --
Net income (loss) 0.03 (0.01)
Weighted average
shares outstanding 8,361,901 7,392,462
CHARLOTTE, N.C., Jan. 22, 1996 -- Following a
meeting of
its board of directors, Broadway & Seymour, Inc. (Nasdaq: BSIS)
announced an anticipated loss for the fourth quarter and fiscal year
ending December 31, 1995 and a restructuring to improve operations
effective immediately. After year-end accounting statements are
completed, final financial results will be available as planned the
week of February 5, 1996. The Company estimated a loss for the
fourth quarter in the range of $20 million, reflecting both one-time
and operating charges, that would result in a loss for the year in
the range of $15 million. In determining the charges resulting in
the loss, the Company reevaluated its balance sheet assets from
previous purchases for impairment due to new business direction and
recognized the losses and reserves from underperforming business
necessary to enable the redirection of the Company.
The Company also announced the appointment of David A. Finley as
Executive Vice President and Chief Financial Officer. Mr. Finley,
William W. Neal, Chairman, and Alan C. Stanford, President, who
joined the Company in September 1995, will comprise a new Chief
Executive's Office to manage the newly restructured company. Mr.
Finley, 63, is a member of the Company's board of directors and
served as chief executive of IBM Credit Corporation and treasurer of
IBM prior to his retirement in 1989. David L. Durham, the current
CFO, was appointed Vice President and Chief Accounting Officer and
reports to Mr. Finley. In the Chief Executive's Office, Mr. Finley
will focus on finance and investor and banking relations, Mr. Neal
will focus on business development, and Mr. Stanford will focus on
planning and operations.
Also, Broadway & Seymour announced that it has retained Goldman,
Sachs & Co. to advise it in evaluating previous inquiries regarding
the Company and to provide ongoing strategic financial advice.
In order to focus on larger and longer-term customer
relationships, Broadway & Seymour's operations have been
restructured into four segments of the information technology
services and software industry: asset and investment management,
banking, call center and customer service, and law firm systems.
According to Mr. Finley, "We expect 1996 to be a profitable year,
and we will release our estimates when our detailed planning is
completed."
/CONTACT: David Finley, Executive Vice President and Chief
Financial Officer of Broadway & Seymour, 704-344-3010; or Kristin
Anderson of Ludgate Communications, 212-688-5144/
ATLANTA, Georgia--January 22, 1996--Roadmaster
Industries, Inc. (NYSE Symbol: RDM) today announced an agreement to
sell Roadmaster's Nelson/Weather-Rite camping division to Brunswick
Corporation (NYSE Symbol: BC) for cash consideration of
$120,000,000. The transaction is expected to be consummated in the
first quarter of calendar 1996. The agreement is subject to, among
other things, routine regulatory approvals, and Brunswick's review
of certain additional information. Roadmaster indicated that net
proceeds will be used to reduce outstanding indebtedness.
The Company noted that demand for its bicycle and toy products
met or exceeded expectations resulting in continued market share
gains among domestic bicycle producers.
Despite strong performance in bicycles and toys, Roadmaster
announced that revenues for the fourth quarter and full year are
expected to total approximately $206 million and $730 million,
respectively, which would be below previous projections of $750
million for full-year revenue. Roadmaster anticipates reporting a
loss for the fourth quarter and the fiscal year ended December 31,
1995.
Roadmaster reported a loss of $9.3 million for the first nine
months ended September 30, 1995. The revenue shortfall and losses
came predominantly from the Company's Fitness Division product lines
which included the integration of DP. Additionally, intense
competitive pressures and an overall weak retail sales environment
were further contributing factors.
As a result of anticipated fiscal 1995 results, the Company
announced operational initiatives designed to reduce fixed cost
levels and enhance competitiveness in the Fitness Division. These
actions include the planned closing of Roadmaster's Tyler, Texas
fitness manufacturing facility, the elimination of approximately 600
positions, and consolidation of its fitness production at the
Opelika, Alabama plant. The consolidation at Opelika is expected to
be finished by mid-year 1996. In addition, the Company intends to
down-size certain operations, including the lamp operations and
distribution functions. These restructuring initiatives will result
in a one-time charge to 1995 net income.
Henry Fong, Roadmaster's Chief Executive Officer, noted, "These
actions are being taken to improve operating results by allowing the
Company to better capitalize on low-cost production capabilities.
Additionally, the sale of Nelson/Weather-Rite will considerably
improve the balance sheet and the Company's financial condition."
Roadmaster, one of the largest manufacturers of bicycles, is
also a leading producer of fitness equipment, and is a leading
producer and distributor of toys, team sport and camping equipment.
The trademarks or brand names under which Roadmaster sells its
products include Roadmaster, Flexible Flyer, Vitamaster, MacGregor,
Weather-Rite, American Camper, Remington, DP, Hutch, Reach, Forster,
and sleeping bag lines of Cloud Nine, American Trails, and
Expedition Trails.
CONTACT: Lippert/Heilshorn & Associates,
Richard Foote, ext. 119,
Jeffrey Volk, ext. 102,
212/838-3777
or
ROADMASTER INDUSTRIES, INC.,
Jeff Hinton, 1-618-393-2217
ASHLAND, Ky., Jan. 22, 1996 -- Ashland Inc.
(NYSE: ASH)
today reported net income of $87 million, or $1.29 a share, for the
quarter ended December 31, 1995, the first quarter of its 1996
fiscal year. This compares to net income of $35 million, or 50 cents
a share, for the same quarter a year ago. Sales and operating
revenues were $3.1 billion for the first quarter of 1996, compared
to $2.9 billion a year ago.
As previously announced, results for the quarter just ended
include an after-tax gain of $48 million, or 74 cents a share, from
the settlement of Ashland Exploration's claims in the bankruptcy
reorganization of Columbia Gas
Transmission and Columbia Gas
Systems. Excluding this gain, net income increased 13 percent
to $39
million, while earnings per share increased 10 percent to 55 cents,
despite a nearly 5 percent increase in the average number of shares
outstanding.
"The year is off to an encouraging start," said Ashland Chairman
and Chief Executive Officer John R. Hall. "Ashland Petroleum
substantially improved its results. Valvoline's performance
recovered. APAC had an excellent quarter, and Ashland Chemical had
good operating profit, although it was down from the record level of
a year ago when unusually high methanol prices benefited chemical
earnings. Natural gas volumes and prices improved, contributing to
better results from Ashland Exploration. Ashland Coal had a
reasonably strong quarter, and Arch Mineral returned to
profitability, compared to the last half of fiscal 1995. Retail
gasoline margins were squeezed by rising wholesale gasoline costs,
and that hurt SuperAmerica's results. Overall, it was a reasonable
December quarter, given the intensely competitive conditions in the
petroleum refining industry."
"We were pleased by the improvement in Ashland Petroleum's
results," Hall added. "Operating income was $18 million, compared to
$2 million last year." He noted Ashland Petroleum benefited from
improvements in several key areas. Gross refinery margins grew 15
cents a barrel despite a 45-cent-a-barrel increase in crude oil and
other input costs. Total throughput averaged about 378,000 barrels a
day, up 17 percent from last year when the Canton, Ohio, refinery
had a general maintenance turnaround. Refinery expenses declined by
34 cents a barrel compared to the same quarter a year ago, because
of increased input and Ashland Petroleum's ongoing efforts to cut
costs and improve efficiency.
"We were encouraged by Valvoline's rebound," Hall continued.
"Operating income was $12 million, compared to $9 million last
year." He noted that results improved from most of Valvoline's
product lines, reflecting new marketing initiatives and cost-control
efforts. Higher volumes and improved profitability from branded
motor oil and a stronger performance from private-label products
were major factors in the recovery. Valvoline Instant Oil Change
had an excellent quarter, significantly improving its operating
income.
The APAC group of highway construction operations had an
outstanding December quarter. Capitalizing on a strong year-end
backlog, APAC generated record volume in the quarter, resulting in
operating income of $23 million, up 14 percent from a year ago.
"APAC is well positioned for the spring construction season, with a
December 31 backlog of $616 million," Hall added.
Ashland Chemical had a good quarter with operating income of $38
million. Although down from last year's record quarter, the decline
was due entirely to lower methanol prices. Excluding methanol
contributions in both quarters, operating income improved.
Operating income from specialty chemical businesses increased 32
percent in the quarter just ended, highlighted by the benefits of
last year's acquisition of specialty chemical operations from
Aristech Chemical and an outstanding performance from the electronic
chemicals product line. Results from distribution businesses also
improved.
The Columbia Gas settlement was the major factor affecting
results from Ashland Exploration. However, a 25 percent increase in
natural gas production and a 32-cent increase in the average price
per thousand cubic feet also contributed to improved operating
income. Natural gas production averaged 111 million cubic feet a
day, due in part to a stronger market and last year's acquisition of
additional producing properties in Appalachia.
Operating income from SuperAmerica declined to $11 million, as a
4 percent increase in gasoline volumes and stronger merchandise
volumes and margins did not overcome lower retail gasoline margins
and higher operating expenses associated with new store openings.
Thirteen new units were opened during the quarter, including 9
SuperAmerica(R) stores and four Rich(R) Oil outlets.
On the strength of high sales volumes and favorable mining
costs, Ashland Coal had a reasonably strong December quarter, with
operating income of $17 million. Ashland Coal has previously
announced it expects its results for calendar 1996 to be adversely
affected by the recent expiration of its sales contracts with
Cincinnati Gas & Electric and by price reopeners under other
contracts. Ashland Coal also expects cost reduction initiatives now
underway to partially offset the impact of these developments in
1996 and to have even greater positive effects in calendar 1997.
Results from Arch Mineral declined compared to the quarter last
year, but returned to profitability after two quarters of equity
losses in the second half of fiscal 1995. Cost reductions and last
year's restructuring of operations contributed to the improvement.
Improved cash flow, reflecting the href="chap11.columbia.html">Columbia Gas settlement,
combined with lower capital expenditures enabled Ashland to reduce
debt by $40 million during the quarter. As a result, debt as a
percent of capital employed declined from 53 percent at the end of
fiscal 1995 to 51 percent at December 31.
"In summary, we remain optimistic that Ashland will have a
better year in 1996," Hall said. "The economy has been growing at a
pace healthy enough to stimulate demand for many of our products and
services. At the same time, gasoline demand remains strong, and
inventories of both gasoline and distillate are low. Consequently,
we are optimistic that 1996 will be a good year for Ashland."
Ashland Inc. is a large energy and chemical company engaged in
petroleum refining and marketing; coal; highway construction; and
oil and gas exploration and production. Ashland Chemical is the
largest distributor of chemicals and plastics in North America and a
leading supplier of specialty chemicals worldwide. Ashland's major
consumer brands include Valvoline(R) motor oils, Zerex(R) antifreeze
and Pyroil(R) automotive chemicals. As one of the largest
independent refiners in the nation, Ashland is also a leading
regional gasoline marketer, with products marketed under the
SuperAmerica(R) and Ashland(R) brand names.
Ashland Inc. and Subsidiaries
STATEMENTS OF CONSOLIDATED INCOME
(In millions except per share data - unaudited)
Three months ended
December 31
1995 1994(1)
REVENUES
Sales and operating revenues
(including excise taxes) $3,079 $2,924
Other 94(2) 15
3,173 2,939
COSTS AND EXPENSES
Cost of sales and operating expenses 2,350 2,213
Excise taxes on products and merchandise 238 244
Selling, general and
administrative expenses 289 272
Depreciation, depletion and amortization 98 94
General corporate expenses 23 25
2,998 2,848
OPERATING INCOME 175 91
OTHER INCOME (EXPENSE)
Interest expense (net of interest income) (43) (38)
Equity income 4 6
INCOME BEFORE INCOME TAXES 136 59
Income taxes (44) (16)
Minority interest in earnings of subsidiaries (5) (8)
NET INCOME 87 35
Dividends on convertible preferred stock (5) (5)
INCOME AVAILABLE TO COMMON SHARES $82 $30
EARNINGS PER SHARE
Primary $1.29 $.50
Assuming full dilution $1.16 $.50
AVERAGE COMMON SHARES AND
EQUIVALENTS OUTSTANDING
Primary 64 61
Assuming full dilution 76 61
(1) Amounts have been restated to reflect the consolidation of
Ashland Coal, Inc.
(2) Includes a gain of $73 million resulting from the settlement of
Ashland Exploration's claims in the bankruptcy reorganization
of Columbia Gas Transmission and Columbia Gas Systems.
Ashland Inc. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions - unaudited)
December 31
1995 1994(1)
ASSETS
Current assets
Cash and cash equivalents $ 62 $ 58
Accounts receivable 1,566 1,409
Inventories 791 728
Other current assets 220 190
2,639 2,385
Investments and other assets
Investments in and advances to
unconsolidated affiliates 147 154
Investments of captive insurance companies 200 182
Other noncurrent assets 498 490
845 826
Property, plant and equipment
Cost 7,125 6,809
Accumulated depreciation, depletion
and amortization (3,574) (3,374)
3,551 3,435
$7,035 $6,646
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Debt due within one year $ 279 $ 267
Trade and other payables 1,741 1,579
Income taxes 75 45
2,095 1,891
Noncurrent liabilities
Long-term debt (less current portion) 1,781 1,614
Employee benefit obligations 622 599
Reserves of captive insurance companies 177 179
Deferred income taxes 41 66
Other long-term liabilities and
deferred credits 413 452
3,034 2,910
Minority interest in
consolidated subsidiaries 178 226
Stockholders' equity
Convertible preferred stock 293 293
Common stockholders' equity 1,435 1,326
1,728 1,619
$7,035 $6,646
(1) Amounts have been restated to reflect the consolidation
of Ashland Coal, Inc.
Ashland Inc. and Subsidiaries
STATEMENTS OF CONSOLIDATED CASH FLOWS
(In millions - unaudited)
Three months ended
December 31
1995 1994(1)
CASH FLOWS FROM OPERATIONS
Net income $ 87 $ 35
Expense (income) not affecting cash
Depreciation, depletion
and amortization (2) 101 97
Deferred income taxes (9) 10
Other noncash items 10 --
Change in operating assets
and liabilities (3) (27) (38)
162 104
CASH FLOWS FROM FINANCING
Proceeds from issuance of long-term debt 1 63
Proceeds from issuance of capital stock 1 1
Loan repayment from leveraged
employee stock ownership plan 3 8
Repayment of long-term debt (16) (11)
Increase (decrease) in short-term debt (25) 41
Dividends paid (23) (23)
(59) 79
CASH FLOWS FROM INVESTMENT
Additions to property, plant and equipment (74) (117)
Purchase of operations - net of
cash acquired (17) (54)
Proceeds from sale of operations 1 2
Investment purchases (4) (117) (63)
Investment sales and maturities (4) 114 63
Other - net -- 3
(93) (166)
INCREASE IN CASH AND CASH EQUIVALENTS $ 10 $ 17
CASH FLOWS FROM OPERATIONS
Income adjusted for noncash charges (5)
Petroleum $ 41 $ 44
SuperAmerica 15 19
Valvoline 12 11
Total Refining and Marketing Group 68 74
Chemical 40 40
APAC 26 22
Coal 29 34
Exploration 71 6
Corporate (including interest expense) (45) (34)
Change in operating assets and liabilities (27) (38)
$ 162 $ 104
ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT
Petroleum $ 21 $ 43
SuperAmerica 4 9
Valvoline 4 6
Chemical 13 13
APAC 9 9
Coal 14 15
Exploration 6 20
Corporate 3 2
$ 74 $ 117
(1) Amounts have been restated to reflect the consolidation of
Ashland Coal, Inc.
(2) Includes amounts charged to general corporate expenses.
(3) Excludes changes resulting from operations acquired or
sold.
(4) Represents primarily investment transactions of captive
insurance companies.
(5) Net income plus expense (deduct income) not affecting
cash.
Ashland Inc. and Subsidiaries
INFORMATION BY INDUSTRY SEGMENT
(Dollars in millions - unaudited)
Three months ended
December 31
1995 1994
SALES AND OPERATING REVENUES
Petroleum $ 1,232 $ 1,229
SuperAmerica 456 442
Valvoline 275 268
Chemical 886 818
APAC 329 274
Coal 164 156
Exploration 56 48
Intersegment sales (319) (311)
$ 3,079 $ 2,924
OPERATING INCOME
Petroleum $ 18 $ 2
SuperAmerica 11 18
Valvoline 12 9
Total Refining and Marketing Group 41 29
Chemical 38 47
APAC 23 20
Coal 17 20
Exploration 79 (1) --
General corporate expenses (23) (25)
$ 175 $ 91
EQUITY INCOME
Arch Mineral Corporation $ 2 $ 3
Other 2 3
$ 4 $ 6
OPERATING INFORMATION
(mbpd thousand barrels per day)
Petroleum
Product sales (mbpd) (2) 387.0 360.0
Refining inputs (mbpd) (3) 378.2 321.9
Value of products manufactured per
barrel $ 22.05 $ 21.45
Input cost per barrel 18.00 17.55
Refining margin per barrel $ 4.05 $ 3.90
SuperAmerica
Product sales (mbpd) 75.3 72.5
Merchandise sales $ 139 $ 132
Valvoline lubricant sales (mbpd) (2) 20.1 17.6
APAC backlog at December 31 $ 616 $ 523
Coal (million tons sold) (4)
Ashland Coal, Inc. 6.0 5.5
Arch Mineral Corporation 6.9 7.4
Exploration (net daily production)
Natural gas (million cubic feet) (2) 111.0 88.9
Nigerian crude oil (thousand barrels) 18.2 19.4
(1) Includes a gain of $73 million resulting from the settlement
of Ashland Exploration's claims in the bankruptcy
reorganization of Columbia Gas Transmission and Columbia Gas
Systems.
(2) Includes intersegment sales.
(3) Includes crude oil and other purchased feedstocks.
(4) Ashland's ownership interest is 54% in Ashland Coal and
50% in Arch Mineral.
CORNING, N.Y.--Jan. 22, 1996-- Corning
Incorporated (NYSE:GLW) said today that net income for its fourth
quarter ended Dec. 31 totaled $83.5 million, or $0.37 per share.
In 1994, fourth quarter net income was $35 million, or $0.14 per
share. Adjusting for the impact of Dow Corning Corporation, which
was fully reserved in the second quarter of 1995, fourth quarter
1994 net income was $96.1 million, or $0.43 per share.
For the full year, Corning incurred a net loss of $50.8 million,
or $0.23 per share, compared with net income of $281.3 million, or
$1.32 per share, in 1994. Both years include net losses from Dow
Corning and restructuring charges. Excluding restructuring charges
and the losses from Dow Corning, 1995
net income was $337.7 million,
or $1.49 per share, compared with $339.5 million, or $1.59 per
share, in 1994.
For the fourth quarter 1995, Corning's sales increased 4 percent
to $1.3 billion. For 1995, sales were $5.3 billion, an increase of
11 percent. The sales increases were due to strong performance in
several growth businesses: optical fiber and optical cable;
information display products; pharmaceutical services; and
environmental products. Approximately 20 percent of the annual
sales increase was the result of acquisitions completed in 1994.
Equity company results, excluding Dow Corning Corporation,
increased slightly in the fourth quarter and 29 percent for the full
year. The increase was due primarily to strong performance from the
international optical fiber equity companies.
Corning Board Chairman James R. Houghton said, "The fourth
quarter results were at the low end of our expectations and reflect
some slippage of December sales into 1996. Over the course of the
year, the significant profit gains achieved by the Communications
and Specialty Materials segments and the Corning Pharmaceutical
Services business were offset by previously indicated poor
performance in the Consumer segment and at Corning Clinical Labs."
Houghton added, "As we look forward, we expect the positive
trends in the growth businesses to continue. However, we face
difficult earnings comparisons in the first half as we pursue
solutions to the profitability issues in the Consumer segment and at
Corning Clinical Labs."
Corning Incorporated is a Fortune 500 company whose businesses
are at the leading edge of the technologies that comprise three of
the fastest growing segments of the global economy
-- Communications, Environment and Life Sciences. Its 1995 sales
totaled $5.3 billion.
Corning Incorporated and Subsidiary Companies
Consolidated Statements of Income
(In millions, except per-share amounts)
Year Ended Twelve Weeks Ended
Dec. 31, 1995 Jan. 1, 1995 Dec. 31 ,1995 Jan. 1, 1995
(Unaudited)
Revenues
Net sales $5,313.1 $4,770.5 $1,330.4
$1,273.5
Royalty, interest
and dividend
income 33.0 28.7 8.3
7.2
5,346.1 4,799.2 1,338.7 1,280.7
Deductions
Cost of sales 3,386.0 3,060.9 867.4
824.8
Selling, general
and administrative
expenses 1,093.5 871.7 271.5
238.5
Research and
development
expenses 179.7 176.9 46.2
44.1
Provision for
restructuring and
other special
charges 67.0 82.3
-- --
Interest expense 117.8 110.4 27.4
24.8
Other, net 36.2 37.5 4.6
1.2
Income before
taxes on income 465.9 459.5 121.6
147.3
Income tax expense 154.7 170.1 39.3
53.0
Income before minority
interest and equity
earnings 311.2 289.4 82.3
94.3
Minority interest in
earnings of
subsidiaries (66.8) (50.7) (13.5)
(11.7)
Dividends on convertible
preferred securities of
subsidiary (13.7) (6.1) (3.2)
(3.4)
Equity in earnings
(losses) of associated
companies:
Excluding Dow Corning
Corporation 66.5 51.5 17.9
16.9
Dow Corning
Corporation (348.0) (2.8)
(61.1)
Net Income (Loss) $ (50.8) $ 281.3 $ 83.5 $
35.0
Earnings Per Common Share:
Net Income (Loss) $(0.23) $1.32 $0.37
$0.14
Dividends Declared $0.72 $0.69 $0.18
$0.18
Weighted Average Shares
Outstanding 226.6 211.8 226.7
224.9
The accompanying notes are an integral part of these statements.
Corning Incorporated and Subsidiary Companies
Condensed Consolidated Balance Sheets
(In millions)
Dec. 31, 1995 Jan. 1, 1995
Assets
Current Assets
Cash and short-term investments $ 214.9 $ 161.3
Receivables, net 932.4 947.1
Inventories 467.8 416.7
Deferred taxes on income and
other current assets 219.2 201.2
Total current assets 1,834.3 1,726.3
Investments
Other than Dow Corning Corporation 376.1 352.0
Dow Corning Corporation -- 341.8
Plant and Equipment, Net 2,031.6 1,890.6
Goodwill and Other
Intangible Assets, Net 1,416.1 1,408.0
Other Assets 329.0 304.0
$5,987.1 $6,022.7
Liabilities and Stockholders' Equity
Current Liabilities
Loans payable $ 146.0 $ 67.6
Accounts payable 255.2 258.3
Other accrued liabilities 763.9 748.3
Total current liabilities 1,165.1 1,074.2
Other Liabilities 664.9 643.6
Loans Payable Beyond One Year 1,393.0 1,405.6
Minority Interest in
Subsidiary Companies 272.5 247.0
Convertible Preferred Securities
of Subsidiary 364.7 364.4
Convertible Preferred Stock 23.9 24.9
Common Stockholders' Equity 2,103.0 2,263.0
$5,987.1 $6,022.7
The accompanying notes are an integral part of these statements.
Corning Incorporated and Subsidiary Companies
Notes to Consolidated Financial Statements
Quarter 4, 1995
(1) Earnings per common share are computed by dividing net income
less dividends on Series B convertible preferred stock by the
weighted average number of common shares outstanding during the
period. The weighted average shares outstanding for the fourth
quarter were 226.7 million and 224.9 million for 1995 and 1994,
respectively, and 226.6 million and 211.8 million in fiscal years
1995 and 1994, respectively. Preferred dividends of $0.5 million
and
$0.6 million were declared in the fourth quarter of 1995 and 1994,
respectively, and $2.0 million and $2.1 million in fiscal years 1995
and 1994.
(2) Depreciation and amortization charged to operations for fiscal
years 1995 and 1994 totaled $377.4 million and $338.4 million,
respectively.
(3) On May 15, 1995, Dow Corning Corporation, a 50-percent owned
equity company, voluntarily filed for protection under Chapter 11 of
the United States Bankruptcy Code. As a result of this action,
Corning recorded an after-tax charge of $365.5 million, or $1.62 per
share, in the second quarter of 1995 to fully reserve its investment
in Dow Corning. In addition, Corning discontinued recognition of
equity earnings from Dow Corning beginning in the second quarter of
1995. Corning recognized equity earnings of $17.5 million, or $0.08
per share, in the first quarter of 1995. Corning recognized equity
losses from Dow Corning totaling $61.1 million, or $0.29 per share,
and $2.8 million, or $0.01 per share, in the fourth quarter and
fiscal year 1994, respectively. The 1994 amounts include an
after-tax reduction in equity earnings of $75.9 million, or $0.36
per
share, as a result of charges taken by Dow Corning related to
breast-implant litigation.
(4) Corning's effective tax rate, excluding unusual items was 32%
and 36% for the fourth quarter of 1995 and 1994, respectively, and
34% and 36% for fiscal years 1995 and 1994, respectively. The
decrease in the effective tax rate was primarily due to an increase
in the percentage of Corning's earnings from consolidated entities
with lower effective tax rates.
(5) During fiscal year 1995, Corning recorded a restructuring charge
totaling $67 million ($40.5 million after tax), or $0.18 per share.
(6) During fiscal year 1994, Corning recorded a charge totaling
$82.3 million ($55.4 million after tax), or $0.26 per share, which
included integration costs, transaction expenses, and certain other
reserves, primarily related to the acquisition of Nichols Institute,
Maryland Medical Laboratory and Bioran Medical Laboratory.
Subsequent Event
(7) On January 16, 1996, Corning and International Technology
Corporation signed an agreement whereby Corning will increase its
ownership in Quanterra Incorporated from 50% to 81% in exchange for
an investment of approximately $20 million. As a result of this
transaction, Corning will consolidate Quanterra's results beginning
in the first quarter of 1996. Quanterra provides environmental
testing and related services.
NEW YORK--Jan. 22, 1996--Ogden Corporation
(Ogden) announced today that it has elected to adopt Statement of
Financial Accounting Standards No. 121 in the fourth quarter of
1995. SFAS No. 121, "Accounting for the Impairment of Long-Lived
Assets and or Long-Lived Assets to Be Disposed Of," requires long-
lived assets with recorded values that are not expected to be
recovered through future cash flows to be written down to fair
value, and assets to be disposed of be reported at the lower of
their carrying amount or fair value.
The effect of adopting SFAS No. 121 is expected to reduce fourth
quarter pre-tax income by a non-cash charge of approximately $50
million. Net income for the fourth quarter is expected to be
reduced by approximately $35 million. This charge will be in
addition to the previously announced restructuring initiatives and
related expenses that Ogden stated would be taken during the fourth
quarter. As a result of this charge, Ogden said that it will post a
loss for the fourth quarter, 1995. A substantial portion of this
charge represents anticipated losses on the sale of certain non-core
businesses; Ogden expects a gain on the sale of each of its
remaining non-core businesses in 1996.
Separately Ogden announced that it expects to release earnings
on or about February 5, 1996.
Ogden Corporation is a leading global service company focusing
on entertainment, aviation, and independent power. Common stock of
Ogden (OG) is traded on the New York Stock Exchange.
CONTACT: Ogden Corp., New York,
Quintin G. Marshall, 212/868-5421
BUFFALO GROVE, Ill., Jan. 22, 1996 -- Telular
Corporation
(Nasdaq-NNM: WRLS) today announced a major restructuring initiative
and its financial results for the first quarter of fiscal 1996,
which ended December 31, 1995.
First Quarter Results
Net revenues fell 40.9 percent to $4.03 million from $6.82
million in the comparable quarter a year ago and from $9.35 million
in the previous quarter. The net loss for the first quarter totaled
$5.23 million, or ($0.22) per share, against a net loss of $4.86
million, or ($0.21) per share, a year earlier. The lower revenue
was the result of weaker foreign sales, particularly from South and
Latin America, a region that contributed heavily to sales in the
prior periods, but where a combination of weaker economic conditions
and lack of access to hard currency inhibited reorders. The company
also accepted the return of GSM PhoneCell units from a Middle East
distributor. The units have been returned for rework to correct
interoperability shortcomings and will be updated for fax-and-data
capability.
"Last November we announced that revenues for the quarter would
be below the prior quarter and that we would be unable to sustain
quarter to quarter improvements we have experienced in recent
periods. The next two quarters will also be affected by delays in
deployment of our customized PhoneCell product into Motorola's
wireless local loop (WLL) program in Hungary, previously anticipated
to begin in the second fiscal quarter. The delays are due to
changes to required customer specifications that necessitate further
product functionality enhancements," advised William L. De Nicolo,
Telular's Chairman and CEO.
Restructuring Enacted
The company also announced a major restructuring program.
Manufacturing and engineering consolidation and outsourcing, and the
elimination of non-core product lines are planned. The company's
Puerto Rico and Illinois manufacturing facilities will be closed and
production transferred to Telular's Atlanta facility, thereby
substantially reducing fixed manufacturing costs. These actions
will also result in reduced general and administrative expenses
Company-wide. Headcount will be reduced from 250 to approximately
150 by the end of the third fiscal quarter. Preliminary estimates
for restructuring charges anticipated for the second fiscal quarter
range from $7-9 million, consisting primarily of non-cash write-offs
of goodwill, inventories and leasehold improvements.
"Our continued difficulty in predicting demand from the immature
marketplaces served by our products underscores the importance of
reducing fixed costs and properly aligning expenses to attainable
levels of revenue. We have and will continue to alter our business
strategy accordingly, added De Nicolo. Our immediate focus is
clearly on restructuring for profitability and the ongoing
development of the market driven products needed to reach our long
term goal of product and technological dominance in the worldwide
fixed wireless and domestic PCS markets. On a more positive note, I
am pleased to report that our investment in CDMA and GSM fax-and-
data capable PhoneCell products are on target with introductions
scheduled beginning mid 1996."
Founded in 1986, Telular has developed telecommunications
interface technology that switches a standard phone system, fax,
computer modem or monitored alarm system to available wireless
service for either primary or back-up communications. The line of
fixed wireless products developed and marketed by Telular includes
the PhoneCell(TM) line of products, the modular PhoneCell CPX(TM),
the PCSone(TM) intelligent docking station and the AXCELL cellular
mobile data interface.
TELULAR CORPORATION
Condensed Consolidated Statements of Operations
Unaudited
Three Months ended December 31, %
1995 1994 Change
Total Net Sales $4,028,325 $6,819,805 -40.9%
Cost of Sales 3,742,170 5,425,103 ---
Gross Profit 286,155 1,394,702 ---
Selling, general and
administrative expenses 5,731,105 6,890,676 -16.8%
Loss from operations (5,444,950) (5,495,974) ---
Other income (expense) 214,734 631,681 ---
Net income (loss) ($5,230,216) ($4,864,293) nm
Net loss per common share ($0.22) ($0.21) nm
Weighted average number of common
shares outstanding 23,716,289 23,219,338 ---
Consolidated Balance Sheets
Unaudited
December 31, September 30,
1995 1995
Assets
Current Assets $45,024,848 $42,721,267
Property & Equipment (net) 4,277,950 3,851,250
Other Assets 8,095,935 8,174,713
Total Assets $57,398,733 $54,747,230
Liabilities & Stockholders' Equity
Liabilities $24,470,048 $16,791,455
Total Stockholders' Equity 32,928,685 37,955,775
Total Liabilities
and Stockholders' Equity $57,398,733 $54,747,230
WASHINGTON, Jan. 22, 1996 -- The United States
Bankruptcy
Court for the Middle District of Florida, Tampa Division has set
March 15, 1996, no later than 5:00 p.m., Central Time, as the last
day that all persons who have or may have asbestos bodily injury
claims against The Celotex Corporation
and/or Carey Canada Inc. must
file a proof of claim.
Any such person who fails to file a proof of claim by the above
deadline shall be forever barred from asserting any such claim
against Celotex or Carey Canada and shall not be permitted to vote
on any plan or plans of reorganization, participate in any
distribution in the Celotex and Carey Canada bankruptcy cases on
account of such claim, or receive further notices regarding such
claim or the Celotex and Carey Canada bankruptcy case; provided,
however that any such person who manifests an asbestos-related
injury prior to March 15, 1996 shall not be precluded from asserting
a claim for a different asbestos-related injury manifested
subsequent to March 15, 1996 against a trust established pursuant to
a confirmed plan or plans of reorganization for Celotex and Carey
Canada if the different asbestos-related injury is valued at a
higher level than the previous asbestos-related injury by such
trust.
Celotex and Carey Canada have filed a plan of reorganization
with the bankruptcy court which establishes a trust to provide,
among other things, compensation to current and future holders of
asbestos bodily injury claims. Holders of properly filed claims
whose claims are estimated by the bankruptcy court will be entitled
to vote to accept or reject the plan and will be considered for
compensation if the bankruptcy court confirms the plan.
A hearing to consider confirmation of the plan is scheduled for
June 10, 1996 at 9:00 a.m., Eastern Time.
Celotex and Carey Canada filed for bankruptcy protection under
Chapter 11 of the United States Bankruptcy Code on October 12, 1990.
Celotex is a major manufacturer of building and roofing products for
residential and commercial use. Carey Canada, a wholly-owned
subsidiary of Celotex, was formerly engaged in the mining, milling,
and processing of asbestos fiber.
Persons who want further information should call 1-800-353-5233
or write Claims Agent/Balloting Agent, P.O. Box 1536, Minneapolis,
MN 55440-1536.
Public Service Announcement Attached
ASBESTOS ALERT
PUBLIC SERVICE ANNOUNCEMENT
ATTENTION PERSONS WITH ASBESTOS-RELATED INJURY.
The Celotex Corporation and Carey Canada Inc. have filed a plan
of reorganization in United States Bankruptcy Court. The plan
establishes a trust to compensate persons who have asbestos bodily
injury claims.
The bankruptcy court has set March 15, 19-96 as the last date by
which a proof of claim must be filed by persons who have or may have
claims for asbestos bodily injury against Celotex and/or Carey
Canada. Holders of properly filed claims whose claims are estimated
by the bankruptcy court will be entitled to vote to accept or reject
the plan and will be considered for compensation if the bankruptcy
court confirms the plan.
A hearing to consider confirmation of the plan is scheduled for
June 10, 19-96 at 9:00 a.m., Eastern Time.
For Further Information
Call 1-800-3-5-3-5-2-3-3
or
Write: Claims Agent/Balloting Agent
P.O. Box 1-5-3-6
Minneapolis, MN 5-5-4-4-0-1-5-3-6
DALLAS--Jan. 22, 1996--Brinker International,
Inc. ("Brinker" or the "Company") reported revenues of $289.7
million for the second fiscal quarter ended Dec. 27, 1995, an
increase of 17.5 percent over the $246.6 million reported for the
same quarter of fiscal 1995. Capacity (as measured by store weeks)
increased 19.1 percent for the quarter while average weekly sales
declined 1.5 percent. Excluding restructuring related items, net
income declined 19.6 percent from $16.1 million to $12.9 million and
primary net income per share declined 22.7 percent from $0.22 to
$0.17.
Revenues for the six month period of fiscal 1996 rose 17.3
percent to $579.1 million from $493.7 million reported for the same
period last fiscal year. For the six months, capacity increased
19.8 percent and average weekly sales declined 2.2 percent.
Excluding restructuring related items, net income declined 17.7
percent from $34.6 million to $28.5 million, while primary net
income per share declined 19.6 percent from $0.46 to $0.37.
In October 1995, the Board of Directors approved a strategic
plan intended to support the Company's long term growth target that
focuses on continued development of those restaurant concepts that
have the greatest return potential for the Company and its
shareholders. The Company recorded a $50.0 million restructuring
charge in the second quarter to cover the costs related to execution
of this plan. In addition, Brinker completed the previously
announced sales of the Grady's American Grill, Spageddies Italian
Kitchen, and the Kona Ranch Steak House concepts during the quarter,
recognizing a gain of $9.3 million. Including the restructuring
related items, the net loss and primary net loss per share for the
second quarter were $13.6 million and $0.18, respectively, while
year-to-date net income and primary net income per share were $2.0
million and $0.03, respectively.
Brinker owns and operates six restaurant concepts under the
names of Chili's Grill & Bar, Romano's Macaroni Grill, On The Border
Cafes, Cozymel's - A Very Mexican Grill, Maggiano's Little Italy,
and Corner Bakery.
BRINKER INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
13 Weeks Ended 26 Weeks Ended
------------------- ------------------
Dec. 27, Dec. 28, Dec. 27, Dec. 28,
1995 1994 1995 1994
-------- -------- -------- --------
Revenues $289,656 $246,607 $579,116
$493,679
-------- -------- -------- --------
Costs and Expenses
Costs of Sales 83,675 67,097 167,333 133,373
Restaurant Expenses 156,109 128,475 309,014 255,322
Depreciation and
Amortization 16,201 14,163 32,273 27,949
General and Administrative 13,578 12,636 26,575 24,860
Interest Expense 892 -- 1,659 --
Gain on Sales of Concepts (9,262) -- (9,262) --
Restructuring Charge 50,000 -- 50,000 --
Other, Net (687) (492) (1,593) (1,309)
-------- -------- -------- --------
Total Costs and Expenses 310,506 221,879 575,999 440,195
-------- -------- -------- --------
Income (Loss) Before
Provision for Income Taxes (20,850) 24,728 3,117 53,484
Provision for Income Taxes (7,297) 8,655 1,091
18,863
-------- -------- -------- --------
Net Income (Loss) $(13,553) $ 16,073 $ 2,026 $ 34,621
Primary Net Income (Loss)
Per Share $ (0.18) $ 0.22 $ 0.03 $ 0.46
Primary Weighted Average
Shares Outstanding 76,626 74,391 76,932 74,584
BRINKER INTERNATIONAL, INC.
UNITS SUMMARY
Total Units Second Quarter Fiscal 1996 Total Units
Sept. 27, --------------------------- Dec. 27,
1995 Openings Closings Sales 1995
----------- -------- -------- ------- -----------
Company Units:
Chili's 330 11 (2) -- 339
Macaroni Grill 54 7 -- -- 61
On The Border 17 2 -- -- 19
Cozymel's 4 2 -- -- 6
Maggiano's 3 -- -- -- 3
Corner Bakery 5 1 -- -- 6
Grady's 49 1 (4) (42) 4
Spageddies 15 1 (6) (6) 4
Kona Ranch 1 -- -- (1) --
----------- -------- -------- ------- -----------
478 25 (12) (49) 442
JV/Franchise Units:
Chili's 116 7 -- -- 123
Macaroni Grill 1 1 -- -- 2
On The Border 4 -- -- -- 4
Spageddies 5 1 -- (6) --
Wildfire -- 1 -- -- 1
----------- -------- -------- ------- -----------
126 10 -- (6) 130
Total Units:
Chili's 446 18 (2) -- 462
Macaroni Grill 55 8 -- -- 63
On The Border 21 2 -- -- 23
Cozymel's 4 2 -- -- 6
Maggiano's 3 -- -- -- 3
Corner Bakery 5 1 -- -- 6
Wildfire -- 1 -- -- 1
Grady's 49 1 (4) (42) 4
Spageddies 20 2 (6) (12) 4
Kona Ranch 1 -- -- (1) --
----------- -------- -------- ------- -----------
604 35 (12) (55) 572