BALTIMORE, Jan. 24, 1996 - Environmental Elements
Corporation (NYSE: EEC) today announced operating results for its
third fiscal quarter and nine months ended December 31, 1995.
The Company reported a loss from continuing operations for the
quarter of $206,000 ($.03 per share), an improvement from the third
quarter loss of $538,000 ($.08 per share) last year, despite a
decline in sales during the quarter to $12,830,000 from $22,937,000
last year. Bookings were $16.9 million, up from $5.1 million during
the third quarter last year.
For the nine months ended December 31, the Company reported a
loss from continuing operations, including a $950,000 ($.14 per
share) restructuring charge in the second quarter, of $3,418,000
($.50 per share), compared with a loss of $2,446,000 ($.36 per
share) last year. Sales for the nine months of $47,610,000 were down
from $54,593,000 for the same period last year. Year-to-date
bookings, excluding $32 million of unbooked commitments, were $39.4
million, compared to $65.1 million for the first three quarters last
fiscal year.
Including gains from discontinued operations, the third quarter
net loss was $206,000 ($.03 per share), compared to net income of
$1,562,000 ($.23 per share) last year, and the year-to-date net loss
was $3,067,000 ($.45 per share) compared to a loss of $340,000 ($.05
per share) last year.
E.H. Verdery, President and Chief Executive Officer, commented,
"This third quarter, although not yet in the black, reflects
significant progress on several fronts. Bookings were at their
highest level in five quarters, and included conversion of two of
our committed projects to firm orders. Pulp and paper bookings were
at their highest level in more than a year, and backlog increased
for the first time since September 1994. Importantly, despite a 44%
decline in sales from last year, our operating results improved, due
to higher margins and much lower overheads. This indication that
our restructurings during the past two years are really taking hold
to improve performance and to lower break-even levels is gratifying.
While we will not rest until we are back in the black, this
demonstration of progress is welcome."
Environmental Elements Corporation, a leading air pollution
control systems provider for almost fifty years, designs and
supplies electrostatic precipitator, fabric filter, flue gas
desulfurization, and acid gas cleaning systems. Environmental
Elements' systems enable a broad range of customers in the power
generation, pulp and paper, waste to energy, rock products, metals
and petrochemical industries worldwide to operate their facilities
in compliance with particulate and gaseous emissions standards. The
Company also supplies a complete range of aftermarket parts and
services for its own systems and for systems supplied by others.
For further information please contact Lisa A. Morris, Investor
Relations Administrator, at 410-368-7092.
ENVIRONMENTAL ELEMENTS CORPORATION SUMMARY CONSOLIDATED FINANCIAL
DATA
Three Months Ended Nine Months Ended
December 31, December 31,
In thousands of dollars
except per-share amount
1995 1994 1995 1994
Sales $12,830 $22,937 $47,610 $54,593
Cost of sales 10,896 20,490 42,477 48,698
Gross Profit 1,934 2,447 5,133 5,895
Selling, general and
administrative expenses 2,008 2,900 7,225 8,201
Restructuring charge 0 0 950 0
Total Operating Expense 2,008 2,900 8,175 8,201
Operating Income (Loss) (74) (453) (3,042) (2,306)
Interest and other expense (132) (83) (376) (124)
Income (Loss) from Continuing
Operations before
Income Taxes (206) (536) (3,418) (2,430)
Provision for income taxes 0 2 0 16
Income (Loss) from
Continuing Operations (206) (538) (3,418) (2,446)
Gain on disposal of discontinued
operations, net 0 2,100 351 2,106
Net Income (Loss) $(206) $1,562 $(3,067) $(340)
Per share of common stock
and common stock equivalents:
Income (Loss) from continuing
operations $(0.03) $(0.08) $(0.50) $(0.36)
Income from discontinued
operations 0.00 0.31 0.05 0.31
Net Income (Loss) $(0.03) $0.23 $(0.45) $(0.05)
Average shares outstanding 6,884 6,849 6,875 6,842
Backlog, end of period $33,300 $50,900
KIRKLAND, Wash.--Jan. 24, 1996--INTERLINQ
Software Corp. (Nasdaq:INLQ) today reported a net loss of $76,000
(or 1 cent per share on 5,983,000 shares) for the second quarter
ended Dec. 31, 1995, compared with a net loss of $69,000 (or 1 cent
per share on 5,769,000 shares) for the same period last year.
Net revenue for the quarter was $3,109,000, up 15% from
$2,714,000 for the same period last year.
For the six months ended Dec. 31, 1995, the company reported a
net loss of $180,000 (or 3 cents per share on 5,970,000 shares)
compared with a net loss of $139,000 (or 2 cents per share on
5,725,000 shares) for the same period last year. Net revenue for
the six months was $6,063,000, up 7 percent from $5,682,000 last
year.
"Interest rates have dropped and the mortgage lending
environment is improving," said Jiri Nechleba, president and chief
executive officer. "With this favorable lending environment, we
have seen three quarters of sequential revenue growth. While a
continuation of this trend in our revenue should positively impact
our business, our restructuring program late in the second quarter
demonstrates our commitment to proactively manage our bottom line.
We continue to focus on expense control, leveraging our large
customer base for revenue opportunities and bringing new products to
market."
INTERLINQ Software Corp. is a leading provider of PC-based
software solutions for the residential mortgage lending industry.
The company's MortgageWare(R) family of products are sold to banks,
savings institutions, mortgage banks, mortgage brokers, and credit
unions. MortgageWare products automate mortgage loan management for
1,800 customers in more than 5,000 sites throughout the United
States and its territories.
INTERLINQ Software Corp.
Statements of Operations
(Unaudited)
Quarter Quarter Six mos. Six mos.
ended ended ended ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1995 1994
Net revenues:
Software license
fees $1,435,000 $1,011,000 $2,725,000 $2,278,000
Software support
fees 1,397,000 1,403,000 2,794,000 2,792,000
Other 277,000 300,000 544,000 612,000
Total net
revenues 3,109,000 2,714,000 6,063,000 5,682,000
Cost of revenues:
Software license
fees 391,000 332,000 752,000 676,000
Software support
fees 428,000 439,000 899,000 912,000
Other 177,000 157,000 319,000 331,000
Total cost of
revenues 996,000 928,000 1,970,000 1,919,000
Gross profit 2,113,000 1,786,000 4,093,000 3,763,000
Operating expenses:
Product development 514,000 267,000 1,080,000 477,000
Sales and
marketing 1,040,000 973,000 2,075,000 2,117,000
General and
administrative 870,000 883,000 1,619,000 1,790,000
Total operating
expenses 2,424,000 2,123,000 4,774,000 4,384,000
Operating income
(loss) (311,000) (337,000) (681,000) (621,000)
Net interest and
other income 198,000 164,000 409,000 276,000
Income (loss) before
income taxes (113,000) (173,000) (272,000) (345,000)
Income taxes (37,000) (104,000) (92,000) (206,000)
Net income
(loss) ($76,000) ($69,000) ($180,000) ($139,000)
Per Share Amounts:
Net income (loss) per
common and common
equivalent share ($ .01) ($ .01) ($ .03) ($ .02)
Weighted average number
of common and common
equivalent shares
outstanding 5,983,000 5,769,000 5,970,000 5,725,000
INTERLINQ Software Corp.
Balance Sheets
Assets
Dec. 31, June 30,
1995 1995
(Unaudited)
Current assets:
Cash and cash equivalents $8,152,000 $12,903,000
Short-term investments, at cost 5,264,000 1,471,000
Accounts receivable, less
allowance for doubtful accounts
of $136,000 and $119,000,
respectively 1,375,000 1,075,000
Current portion of contracts
receivable, less allowance for
doubtful contracts of $60,000
and $34,000, respectively 90,000 151,000
Income taxes refundable 0 987,000
Inventory 47,000 33,000
Prepaid expenses 292,000 282,000
Deferred income taxes 202,000 172,000
Total current assets 15,422,000 17,074,000
Furniture and equipment, at cost 4,840,000 4,620,000
Less accumulated depreciation
and amortization 2,771,000 2,255,000
Net furniture and equipment 2,069,000 2,365,000
Contracts receivable, excluding
current portion 27,000 28,000
Capitalized software costs, less
accumulated amortization of
$1,816,000 and $1,187,000,
respectively 3,888,000 2,134,000
Other assets 8,000 8,000
$21,414,000 $21,609,000
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $202,000 $123,000
Accrued commissions 65,000 105,000
Other accrued liabilities 475,000 565,000
Customer deposits 142,000 107,000
Accrued Income Tax Payable 50,000 0
Deferred software support fees 2,762,000 2,536,000
Total current liabilities 3,696,000 3,436,000
Noncurrent liabilities, excluding
current installments:
Deferred rent and other
lease obligations 427,000 446,000
Deferred software support fees 20,000 19,000
Deferred income taxes 238,000 370,000
Total noncurrent liabilities 685,000 835,000
Stockholders' equity:
Common stock, $.01 par value.
Authorized 30,000,000 shares;
issued and outstanding 5,957,550
shares and 5,968,000 shares
respectively 60,000 60,000
Additional paid-in capital 13,043,000 13,168,000
Retained earnings 3,930,000 4,110,000
Total stockholders' equity 17,033,000 17,338,000
$ 21,414,000 $ 21,609,000
IRVINE, Calif.--Jan. 24, 1996--AST Research,
Inc. (ASTA-NASDAQ) today announced revenues of $612.9 million for
the second quarter of transition period 1995 and $1.016 billion for
the six-month transition period, ended Dec. 30, 1995. This compares
to revenues of $640.2 million recorded during the prior year quarter
and $1.136 billion recorded during the previous year's six-month
period.
AST's 1995 transition period encompasses July 2 through Dec. 30,
1995. It was created by the decision to change the fiscal year end
from the Saturday closest to June 30, to the Saturday closest to
Dec. 31.
The company reported a net loss of $128.6 million, or net loss
per share of $2.88 for the second quarter of transition period 1995,
compared to a net loss of $21.7 million and net loss per share of 67
cents recorded during the comparable prior year period. The second
quarter loss includes a $13 million charge for the previously-
announced restructuring of the Pacific Rim manufacturing operations.
AST reported a net loss of $225.0 million and net loss per share of
$5.27 during the six-month transition period 1995, compared to a net
loss of $61.1 million and net loss per share of $1.89 reported
during the previous year's six month period.
"While the net loss is disappointing, there are some positive
signs contained within the second quarter numbers, including a
significant sequential increase in revenues, growth in international
markets and significant improvements in our balance sheet," said
Ian Diery, AST president and chief executive officer. "This
quarter, we focused on improving our sales and laying the foundation
for more improved results. Lower margins were caused by sales of
older technologies to reduce inventories, shipment delays of some
new products and continued industry pricing pressures.
Significantly reducing our levels of older inventory should allow us
to take advantage of new, leading-edge products that are scheduled
for introduction during the current quarter.
"AST's management, board of directors and employees are
dedicated to returning the company to profitability. Our goal is to
make AST consistently one of the first to market in the computer
industry with leading edge products. With the help of our largest
shareholder and strategic partner, Samsung Electronics, AST is
driving to shorten and add flexibility to its supply chain and
become the most reliable supplier to the indirect channel, and
hence, their customers.
"While AST is working extremely hard to meet the challenges in
turning around its business, this is a process which will take some
time and is subject to many risks and uncertainties."
International sales of $351.6 million for the quarter reflect a
24 percent increase over the comparable prior year period, and
included a 32 percent increase in Europe. Significant year-over-
year sales gains were achieved in the European marketplace, with
strong gains in the Nordic region, as well as the United Kingdom.
The company also continued to expand its global presence with new
offices in Bangkok, Thailand, and was again reconfirmed by Dataquest
as holding the No. 1 market share position in China. Total
international revenues during the six-month transition period 1995
were $563.2 million, representing a 25 percent increase over the
previous year's six month period.
Revenues in the Americas region for the quarter were $261.3
million, representing a 27 percent decrease from sales recorded
during the comparable prior year period. Total Americas revenues
during the six-month transition period 1995 were $453.1 million,
representing a 34 percent decrease over the prior year six-month
period. The decrease represents lower consumer retail channel sales
during the period when compared to the prior year period. During
the first quarter of the transition period 1995, the company
significantly reduced its sales to the domestic consumer retail
channel, which turned around in the last quarter due to increased
product offerings. On a sequential quarter basis, the Americas
region experienced a revenue increase of 36 percent.
During the second quarter of transition period 1995, AST shipped
339,000 units, including 301,000 desktops and servers and 38,000
notebooks. Sales of Pentium-based systems represented 84 percent of
total desktop and server units. Shipments during the six-month
transition period 1995 totaled 514,000 desktops and servers and
70,000 notebooks.
Balance Sheet Summary
At Dec. 30, 1995, total cash and cash equivalents were $125.4
million, with $75.0 million in short-term borrowings. Total net
inventory was $252.3 million, down from $349.2 million at Sept. 30,
1995 and represented approximately 10 inventory turns. Accounts
receivable totaled $392.6 million, which represented 58 days sales
outstanding, down from 63 days sales outstanding in the previous
quarter.
During the quarter, AST announced it had entered into an
agreement with Samsung Electronics pursuant to which Samsung would
provide the company with additional credit support in the form of a
guaranty for a $200 million line of credit for two years and a $100
million vendor credit line for component purchases from Samsung. As
consideration for this support, AST granted Samsung a five-year
option to purchase up to 4.4 million shares of AST common stock at
one-cent per share, exercisable beginning on July 1, 1996. If the
option is exercised in full, Samsung's ownership position would
increase to approximately 45 percent, from its present position of
approximately 40 percent.
In December, AST obtained a $100 million revolving credit
facility utilizing a portion of the Samsung guarantee and is
negotiating to increase the facility to $200 million. The company
expects to complete the increase by the end of the current quarter.
Second Quarter Summary
During the second quarter, AST experienced significant changes
in upper management, introduced new models to its desktop and
notebook system families and began implementation of its turnaround
plan. In November, Ian Diery joined the company as president and
chief executive officer, following a successful tenure at Apple
Computer.
Product deliveries during the quarter included new Premmia and
Bravo business desktop models, as well as new multimedia models to
the Advantage! consumer retail family, featuring the latest in
microprocessors, voice recognition and other technologies. The
company also shipped new Ascentia mobile systems, which collectively
feature some of the industry's fastest processors and largest
displays, and collaborated with Samsung to deliver the Advantage!
Explorer notebook PC to the consumer retail market.
"We are continuing to work closely with AST as they proceed with
their turnaround plan," said Won S. Yang, Samsung Electronics
senior executive managing director and an AST board member. "Our
increased support reflects the confidence we have in management's
efforts and abilities to turn around the company."
Except for aforementioned historical information, the forward-
looking statements contained within this news release involve risks
and uncertainties. Potential risks and uncertainties include, but
are not limited to, continued competitive pricing pressures in the
computer industry; the company's ability to continue to develop,
produce and market products that incorporate new technology on a
timely basis, that are priced competitively and achieve significant
market acceptance; the effect of any continued losses on the
company's supplier and customer relationships; and its needs for
liquidity. Additional information on factors which could affect the
company's financial results are included in the company's report on
Form 10-Q for the first quarter of transition period 1995, which is
filed with the Securities and Exchange Commission.
Corporate Background
AST Research Inc., a member of the Fortune 500 list of America's
largest industrial and service companies, is one of the world's
leading personal computer manufacturers. The over two billion
dollar company develops a broad spectrum of desktop, mobile and
server PC products that are sold in more than 100 countries
worldwide. AST systems meet a wide range of customer needs, ranging
from corporate business applications to advanced home and home
office use. Corporate headquarters is located at 16215 Alton
Parkway, P.O. Box 57005, Irvine, Calif. 92619-7005. Telephone
714/727-4141 or 800/ 876-4278. Fax: 714/727-9355. Information
about AST and its products can be found on the World Wide Web at
http://www.ast.com. -0- *T
AST RESEARCH, INC
Condensed Consolidated Balance Sheets
(In thousands)
December 31, July 1,
1995
1995 Assets:
Cash and cash equivalents $ 125,387 $
95,825
Accounts receivable, net 392,598
394,927
Inventories 252,339
311,469
Other current assets 67,297
38,911
Total current assets 837,621 841,132
Property and equipment, net 98,725
101,255
Other assets 119,696
79,114
Total assets $1,056,042 $1,021,501
Liabilities and shareholders' equity:
Current liabilities $ 614,075 $
534,260
Long-term debt 125,540
219,224
Other non-current liabilities 5,545
4,779
Total liabilities 745,160 758,263
Common stock and additional capital 415,182
142,532
Retained earnings (deficit) (104,300)
120,706
Total shareholders' equity 310,882 263,238
Total liabilities and
shareholders' equity $1,056,042 $1,021,501
AST RESEARCH, INC.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
Three Months Ended Six Months Ended
(Unaudited) (Unaudited)
December 30, December 31, December 30, December 31,
1995 1994 1995 1994
Net sales $ 612,926 $ 640,159 $ 1,016,283 $
1,135,605
Cost of sales 623,032 573,841 1,033,158
1,031,988
Gross profit (loss)(10,106) 66,318 (16,875)
103,617
Selling and
marketing 66,258 58,548 117,560
110,413
General and
administrative 24,295 21,567 48,186
42,936
Engineering and
development 10,041 8,648 19,608
18,550
Restructuring charge 12,967 0 12,967
0
Operating loss (123,667) (22,445) (215,196)
(68,282)
Other expense, net (4,957) (4,541) (9,810)
(7,656)
Loss before taxes (128,624) (26,986) (225,006)
(75,938)
Income tax benefit 0 (5,262) 0
(14,808)
Net loss $ (128,624) $ (21,724) $ (225,006) $
(61,130)
Net loss
per share $ (2.88) $ (0.67) $ (5.27) $
(1.89)
Shares used in
computing net
loss per share 44,679 32,369 42,721
32,358
AST RESEARCH, INC.
Computation of Net Loss per Share
(In thousands, except per share amounts)
Three Months Ended Six Months Ended
(Unaudited) (Unaudited)
December 30, December 31, December 30, December 31,
1995 1994 1995 1994
Shares used in
computing primary
loss per share:
Weighted average
shares of common
stock outstanding 44,679 32,369 42,721
32,358
Effect of stock
options treated as
common stock
equivalents under
the treasury stock
method
Weighted average common
and common equivalent
shares outstanding 44,679 32,369 42,721
32,358
Net loss $ (128,624) $ (21,724) $ (225,006) $
(61,130)
Net loss per
share - primary $ (2.88) $ (0.67) $ (5.27) $
(1.89)
Shares used in
computing fully
diluted loss per
share:
Weighted average
shares of common
stock outstanding 44,679 32,369 42,721
32,358
Effect of stock
options treated
as equivalents
under the
treasury
stock method
Shares assumed
issued on conversion
of Liquid Yield
Option Notes
Weighted average
common and common
equivalent shares
outstanding 44,679 32,369 42,721
32,358
Net loss
Net loss - primary
earnings
per share $ (128,624) $ (21,724) $ (225,006) $
(61,130)
Adjustment for
interest on LYONs,
net of tax
Adjusted net loss -
fully diluted
loss per share $ (128,624) $ (21,724) $ (225,006) $
(61,130)
Net loss per
share -
fully diluted $ (2.88) $ (0.67) $ (5.27) $
(1.89)
STAMFORD, Conn., Jan. 24, 1996--Income from Xerox
Corporation's (NYSE: XRX) core document processing business
increased 22 percent in the fourth quarter of 1995 to $379 million
before a $98 million gain from a reduction in the Brazilian tax
rate. Income in the 1994 fourth quarter was $311 million. For the
full year, income grew 36 percent before the tax gain, to $1.1
billion, compared with $794 million in 1994.
Document processing primary earnings per share in the quarter,
before the gain, increased 20 percent to $3.30, compared with $2.76
in the comparable 1994 quarter. For the full year, primary earnings
per share increased 38 percent to $9.32, compared with $6.73 in
1994. On a fully diluted basis, earnings per share were $3.11 in the
quarter, compared with $2.60, and $8.83 for the year, compared with
$6.44. Including the Brazilian tax gain, fourth quarter income was
$477 million, or $4.18 per primary share. On a fully diluted basis,
earnings per share were $3.91. For the full year, document
processing income, including the tax gain, was $1.2 billion, or
$10.20 per primary share. On a fully diluted basis, earnings per
share were $9.63.
The lower Brazilian tax rate will increase ongoing income by $30
million to $40 million annually in 1996 and beyond.
Document processing revenues increased 4 percent to $4.8 billion
in the fourth quarter, compared with $4.6 billion in the 1994 fourth
quarter, and 10 percent to $16.6 billion in the full year, compared
with $15.1 billion in 1994.
Fourth quarter revenues in Europe and Brazil had double-digit
growth on a pre-currency basis. U.S. revenues declined 3 percent in
the quarter due to lingering effects of the realignment of the sales
force implemented in early 1995, and the comparison with strong
revenue growth in the 1994 fourth quarter, which included unusually
high printer component sales. Excluding printer component sales,
U.S. revenues were equal to the 1994 fourth quarter.
"U.S. revenues were disappointing, but we have initiated the
necessary corrective actions to return our U.S. operations to their
historical effectiveness," said Xerox Chairman and Chief Executive
Officer Paul A. Allaire. "Our strategic direction is sound and the
market opportunities remain significant."
Revenues from enterprise printing products increased 10 percent
in the quarter and represented 29 percent of total revenues. Black-
and-white copier revenues declined 2 percent and represented 57
percent of total revenues.
The growth in income reflects an operating margin improvement of
1.7 percentage points in the quarter, driven by an improvement of
4.1 percentage points in sales gross margins, compared with the 1994
fourth quarter.
"We are seeing continuing pricing pressures, but they have been
more than offset by benefits from our productivity programs,"
Allaire said.
The worldwide work force declined by 2,400 in 1995, to 85,200,
including 400 in the fourth quarter. A reduction of 1,000 in the
quarter due to the restructuring program initiated in 1993 was
partially offset by hiring to support the high-growth facilities
management business. Reductions from the restructuring program now
total 12,000 employees.
"We continue to achieve our objectives for this program and have
invested in systems and other productivity improvements to ensure
ongoing cost reductions," Allaire said. "Our top priorities remain
productivity and profitable revenue growth.
"The global document processing market is growing at more than
10 percent annually, driven by production publishing, color copying
and printing, electronic printing and office network systems,"
Allaire said.
"With our broad line of highly competitive document products and
systems, we are in a strong position to continue to grow our
business and improve our financial returns in 1996," the Xerox
chairman said, noting the fourth-quarter introduction of the first
two products in the Document Centre Systems family. These products
print, scan, fax and copy documents for workgroups, with all
operations managed over the network from each user's personal
computer or on a walk-up basis.
Insurance Results
As a result of the agreements to sell the remaining insurance
units of Talegen Holdings, Inc., announced Jan. 18, results from
insurance operations are now accounted for as discontinued
operations and all prior periods have been restated. Therefore,
document processing will be the only continuing operation. The
company has agreements to sell the Talegen units to investor groups
led by Kohlberg Kravis Roberts & Co. for consideration totaling $2.7
billion in transactions expected to close in the middle of this
year.
Discontinued operations had a loss of $1.57 billion in the
fourth quarter, reflecting a charge of $1.546 billion as a result of
the insurance disengagement. This charge consists of a non-cash loss
on the sales of $978 million and $568 million primarily to cover
additional Talegen loss reserves and all estimated future expenses
associated with the excess-of-loss reinsurance coverage to Talegen.
In addition, the balance of the insurance operations had a $24
million loss in the quarter. The fourth quarter loss per share from
discontinued operations was $14.20, on both a primary and fully
diluted basis. The full-year loss from discontinued operations was
$1.646 billion. The full-year loss per share was $14.89, on both a
primary and fully diluted basis.
Total Company Results
As a result of the insurance charge, the company reported a loss
of $1.1 billion in the fourth quarter, or $10.02 per primary share,
and a loss of $472 million, or $4.69 per share, for the full year.
On a fully diluted basis, the company reported a loss of $10.29 per
share in the quarter and $5.26 for the full year. In the 1994 fourth
quarter, the company had net income of $311 million, or $2.76 per
primary share, and $794 million, or $6.73 per primary share, for the
full year. Fully diluted earnings per share were $2.60 in the fourth
quarter of 1994 and $6.44 for the full year.
/CONTACT: Judd Everhart of Xerox, Stamford, Conn. 203 968-3572; or
Brent Laymon of Xerox, 203 968-4237/
ROCHESTER, N.Y.--Jan. 24, 1996--Bausch & Lomb
(NYSE/BOL) reported today revenues for the fourth quarter ended
December 30, 1995 amounted to $455.1 million. A loss of $3.4
million or $.04 per share was sustained in the period.
Earnings were reduced by a previously disclosed restructuring
reserve of $17.4 million or $.30 per share after taxes, an
additional provision of $3.6 million or $.06 per share after taxes
for a litigation reserve, and the recognition of retirement and
other benefits for former chairman and chief executive officer
Daniel E. Gill amounting to $4.4 million or $.08 per share after
taxes. Excluding those special items, Bausch & Lomb's net earnings
for the fourth quarter amounted to $21.9 million or $.40 per share.
The company also announced today its decision to restate its
1993 financial results, with a corresponding restatement for 1994.
Bausch & Lomb continues to believe that the accounting in 1993 was
made in good faith based on facts known at that time by the company,
its senior management and its outside auditors. The company is
taking this action due to uncertainties surrounding the execution of
a fourth-quarter 1993 distributor program, designed to shift
responsibility for the sale and distribution of a portion of Bausch
& Lomb's U.S. traditional contact lens business to distributors,
and the improper recording of certain 1993 sunglass sales in
Southeast Asia, which were identified in the course of an ongoing
investigation conducted by the company. The information obtained
during the company's investigation over the past year has been
provided to Price Waterhouse, the company's independent accountants,
and they concur with management's decision to restate.
"The restatement is an effort to resolve continuing
uncertainties related to past matters," said chairman and chief
executive officer William H. Waltrip. "It's time to get on with
moving our company forward with initiatives that will enhance
shareholder value."
As previously reported, the company has conducted an extensive
investigation of these matters and has taken several steps,
including management changes and the curtailing of certain business
practices, to address identified problems. The company also is
continuing to cooperate with an ongoing investigation by the staff
at the Securities and Exchange Commission concerning these issues.
Restatement of the contact lens distributor program will reduce
Bausch & Lomb's originally reported 1993 sales and net income by
$22.3 million and $11.0 million respectively, while reversal of the
sunglass sales in the Southeast Asia region will reduce previously
reported 1993 sales by $19.8 million and net income by $6.6 million.
In total, this restatement will reduce 1993 earnings per share by
$.29. The restatement will increase Bausch & Lomb's reported 1994
sales and net income by corresponding amounts, but has no effect
whatsoever on the company's 1995 financial results. Bausch & Lomb
intends to prepare revised financial statements reflecting
appropriate adjustments to quarterly and annual figures for 1993 and
1994 as soon as practical. The income statement and product line
comparisons released today reflect a restatement of the 1994 fourth
quarter and full year.
Returning to a discussion of its most recent results, Bausch &
Lomb reported today the $455.1 million in revenues from continuing
businesses for the 1995 fourth quarter represented an increase of 2
percent from the year-ago figure of $445.7 million. This comparison
does not include $35.9 million in 1994 revenues for a sports optics
business that was divested in 1995, and for which no revenues were
recorded in the most recent quarter.
Consolidated revenues from continuing product lines for 1995 in
total reached $1,914.6 million, a gain of 7 percent over the 1994
amount of $1,781.7 million. Including results for the divested
sports optics business, full-year sales were $1,932.9 million in
1995 versus $1,892.7 million in 1994.
Net earnings for all of 1995 amounted to $112.0 million or $1.94
per share compared to the amounts of $31.1 million or $.52 per share
in 1994. Results for both periods were impacted by costs for
special charges. The 1995 amounts also include a gain on the sale
of the sports optics business. Bausch & Lomb said net earnings
reached $127.1 million or $2.20 per share in 1995, excluding the
special charges and the gain on the sports optics divestiture.
On a geographic basis, excluding sales from the company's
divested sports optics business, the company attained higher fourth-
quarter revenues in all regions of the world except the Latin
America, where demand was constrained by weak business conditions in
Mexico and Brazil. U.S. revenues were modestly ahead of 1994,
while gains of 14 percent and 7 percent were attained in Asia and
Europe. Currency movements increased consolidated revenues by $4.7
million or 1 percent in the 1995 fourth quarter.
Revenues in Bausch & Lomb's healthcare segment in the 1995
fourth quarter totaled $344.6 million, up approximately 3 percent
from the same period a year ago. Healthcare segment sales for the
year in total increased 9 percent to $1,359.5 million from the 1994
level of $1,249.9 million.
Fourth-quarter revenues in Bausch & Lomb's personal health
sector declined 5 percent from the prior year due to sharply lower
sales for the Interplak line of power toothbrushes. That business
has been impacted by intense competition, and Bausch & Lomb's board
of directors yesterday authorized management to explore the possible
divestiture of the Interplak line. Worldwide contact lens care
product revenues were essentially unchanged from a year ago as good
demand for the Boston product line in the U.S. and higher shipments
of soft lens solutions in Europe, Asia and the Western Hemisphere
offset a decline in U.S. sales. Recent market surveys indicate
Bausch & Lomb is maintaining its strong position in the U.S. lens
care market, and the company said it believes the recent decline in
revenues stemmed in part from an industry-wide slow down in
shipments and the absence of retailer promotions. Revenue growth
approaching 15 percent was attained in the company's skin care
business, while sales of over-the-counter medications in Europe grew
almost 30 percent over the prior year. Higher sales were also
attained by the general eyecare product line in the U.S.
Medical sector revenues advanced 14 percent over the 1994
fourth quarter. Worldwide contact lens sales rose approximately 15
percent, and were led by a 40 percent increase in sales of lenses
used in disposable and planned replacement programs. Double digit
rates of sales growth were also attained by the company's
prescription pharmaceutical business and its line of hearing aids.
Bausch & Lomb's dental implant business achieved revenue growth
approaching 20 percent during the quarter.
Revenues in the biomedical sector increased 5 percent over
the 1994 fourth quarter. Higher shipments of pathogen-free eggs and
increased orders for toxicology testing products were the primary
factors behind this growth in sales.
In Bausch & Lomb's optics segment, fourth-quarter sales for
continuing product lines reached $110.5 million, 1 percent above the
comparable 1994 amount of $109.7 million. This comparison excludes
$35.9 million in sports optics revenues recorded in the fourth
quarter of 1994. For the full twelve months of 1995, optics segment
revenues were $573.4 million compared to the year-ago amount of
$642.8 million. Divested sports optics operations contributed $18.3
million and $111.0 million to the respective periods. Excluding
those amounts, optics segment revenues for 1995 in total advanced 4
percent over the prior year.
Worldwide sunglass revenues increased 3 percent over the fourth
quarter of 1994. Double-digit rates of growth were attained in the
U.S. and Europe. This progress, which included substantially
higher shipments of Revo sunglasses in the U.S., was significantly
moderated by reduced sales in Mexico and Brazil.
"Very good progress has been made in addressing issues that have
limited Bausch & Lomb's financial performance over the past two
years. However, much remains to be done," said William H.
Waltrip. "We must accelerate our efforts to generate the $50 million
savings in operating expenses that was identified as a key priority
last December, and plans to bring this about should be finalized in
coming weeks.
"A second major priority is to move new products into the market
that are more closely aligned with the preferences of consumers
worldwide. This is especially true in the sunglass and contact lens
businesses.
"During 1996 we will be evaluating a range of strategies for
improving financial returns in our contact lens business. We must
be certain that investments made in that area are commensurate with
an appropriate level of risk, and that our assumptions about future
gains in profitability are well founded."
Waltrip concluded by saying, "Our entire management team is
focused on developing additional opportunities for building long-
term shareholder value. The next few quarters should see us taking
new actions directed towards our goals of improved profitability, a
more focused product portfolio and sharpened competitive strategies
throughout our major businesses."
Bausch & Lomb
Statement of Earnings
(Dollars Amounts in Thousands, Except Per Share Data)
Quarter Ended Twelve Months Ended
Dec. 30, Dec. 31 Dec. 30, Dec. 31,
1995 1994(a) 1995 1994(a)
Net Sales
Healthcare $ 344,595 $ 336,022 $1,359,477
$1,249,923
Optics 110,471 145,592 573,406
642,763
455,066 481,614 1,932,883 1,892,686
Costs and Expenses
Cost of products sold 202,035 237,359 859,984
913,279
Selling, administrative
and general (1) 195,228 200,165 769,935 724,219
Research and development 17,988 14,953 65,622
60,421
Restructuring charges (2) 26,697 - 26,697
-
Goodwill impairment
charge (3) - 75,000 - 75,000
441,948 527,477 1,722,238 1,772,919
Operating Earnings 13,118 (45,863) 210,645
119,767
Other (Income) Expense
Investment income (10,170) (8,905) (39,009)
(35,339)
Interest expense 10,766 11,970 45,765
41,379
(Gain) loss from
foreign currency 1,986 (393) 6,244 (2,615)
Gain on sale of Sports
Optics Division (4) - - (35,902) -
Litigation provision (5) 5,700 - 21,700
-
8,282 2,672 (1,202) 3,425
Earnings (Loss) Before Income
Taxes and Minority Interest 4,836 (48,535) 211,847
116,342
Provision for income taxes 2,324 7,058 78,068
61,162
Earnings (Loss) Before
Minority Interest 2,512 (55,593) 133,779
55,180
Minority interest in
subsidiaries 5,877 6,483 21,757 24,057
Net Earnings (Loss) $ (3,365) $ (62,076) $ 112,022 $
31,123
Net Earnings (Loss) Per
Common Share $ (0.04) $ (1.04) $ 1.94 $
0.52
Average Common Shares
Outstanding (000s) 57,852
59,739
(a) 1994 results have been restated based on uncertainties
surrounding the execution of a fourth quarter 1993 distributor
program and the improper recording of certain 1993 sunglass sales in
Southeast Asia. 1994 fourth quarter sales, net earnings and
earnings
per share improved by $2,561, $851 and $0.01, respectively. For the
full year, 1994 sales, net earnings and earnings per share improved
by $42,134, $17,645 and $0.29, respectively.
(1) CEO retirement in 1995 reduced full year and quarter four net
earnings by $4,364 or $.08 per share.
(2) Restructuring charges recorded in 1995 reduced full year and
quarter four net earnings by $17,353 or $.30 per share.
(3) Goodwill impairment charge recorded in quarter four 1994
reduced
net earnings by $75,000 or $1.26 per share.
(4) The gain on sale of the Sports Optics Division increased full
year net earnings by $20,823 or $.36 per share.
(5) Litigation provisions recorded in 1995 reduced full year net
earnings by $14,241 or $.24 per share.
BAUSCH & LOMB
HEALTHCARE AND OPTICS SEGMENTS
NET SALES AND BUSINESS SEGMENT EARNINGS COMPARISONS
(Dollar Amounts in Thousands, Except Per Share Data)
Quarter Ended Twelve Months Ended
Dec. 30, Dec. 31, Dec. 30, Dec. 31,
1995 1994(a) 1995 1994(a)
Net Sales
Healthcare $ 344,595 $ 336,022 $1,359,477
$1,249,923
Optics 110,471 145,592 573,406
642,763
$ 455,066 $ 481,614 $1,932,883 $1,892,686
Business Segment Earnings
Healthcare $ 229,231 (1) $
91,541 (2)
Optics 42,324 (1)
72,075
------------ ----------
$ 271,555 $ 163,616
*T
(a) 1994 results have been restated based on uncertainties
surrounding the execution of a fourth quarter 1993 distributor
program and the improper recording of certain 1993 sunglass sales in
Southeast Asia. 1994 fourth quarter sales and segment earnings
improved by $2,561 and $1,019, respectively. For the full year,
1994 sales and segment earnings improved by $42,134 and $26,002,
respectively.
(1) Restructuring charges recorded in 1995 reduced healthcare and
optics
segment earnings by $7,868 and $15,829 respectively.
(2) Goodwill impairment charge recorded in 1994 reduced healthcare
segment earnings by $75,000.
CONTACT: Bausch & Lomb, Rochester
Investor Contact: Franklin T. Jepson
716/338-6025 (office) or 716/461-2534 (residence)
or
Barbara M. Kelley Holly Echols
716-338-5386 (office) 716-338-8064 (office)
716-621-7141 (residence) 716-473-7104 (residence)
1-800-701-1816 (pager)
DALLAS--Jan. 24, 1996--Centex Corporation
today announced results for the quarter ended Dec. 31, 1995, the
third quarter of the company's 1996 fiscal year, and for the first
nine months of fiscal 1996. Dallas-based Centex (NYSE: CTX),
through its subsidiaries, is the nation's largest home builder, a
leading residential mortgage originator, and a top-ranked general
building contractor. Centex also owns a 49 percent interest in
Centex Construction Products, Inc. (NYSE: CXP).
For the quarter ended Dec. 31, 1995, corporate revenues were
$790,149,000, about the same as $793,205,000 for the same quarter in
the prior fiscal year. Net earnings for the current quarter were
$15,156,000, a 16 percent improvement over $13,057,000 for the same
quarter last year. Earnings per share for the current quarter were
$.52, an 18 percent increase over $.44 for the same quarter in
fiscal 1995.
For the nine months ended Dec. 31, 1995, corporate revenues were
$2,277,945,000, 8 percent less than $2,481,431,000 for the same
period last year. Net earnings for the current nine months were
$37,580,000, 18 percent less than $45,861,000 for the same period in
the prior fiscal year. Including the gain from the April 1994 sale
of 51 percent of CXP, Centex's total net earnings for the nine
months last year were $83,356,000.
Earnings per share for the nine months this year were $1.29, 13
percent less than $1.49 for the same period last year. Including
the CXP gain, Centex's total earnings per share for the nine months
last year totaled $2.71.
Earnings per share for both the quarter and the nine months
declined slightly less than net earnings due to fewer average shares
outstanding in the current periods. During the fiscal year ended
March 31, 1995, Centex repurchased 3.74 million shares of its common
stock, or about 12 percent of the shares outstanding at the
beginning of its 1995 fiscal year.
Centex said corporate financial results for the quarter improved
due to substantial earnings gains in its Home Building and its
Financial Services businesses, as well as in its equity in the
earnings of CXP. These increases were offset somewhat by an
increased loss in the company's Contracting and Construction
Services business.
HOME BUILDING
Home Building revenues for the current quarter were $499.2
million, slightly higher than $485.0 million for the same quarter
last year. Operating earnings from Home Building were $28.6 million
for the same quarter this year, a 17 percent gain over $24.4 million
for the quarter in fiscal 1995.
Home closings for the current quarter totaled 2,948 units,
slightly less than 2,994 units for the same quarter in the prior
fiscal year. Led by a 42 percent increase in the Southwest, unit
orders rose in all regions to reach 2,678 for the quarter this year,
20 percent higher than 2,223 orders for the same quarter a year ago.
Centex's average home sales price for the quarter this year was
$165,262, 3 percent higher than $160,331 for the same quarter in
fiscal 1995 and only slightly higher than the average sales price of
$163,143 for the Sept. 30, 1995 quarter. Home Building margin per
closed unit was $9,697 for the quarter this year, 19 percent higher
than the per unit margin of $8,133 for the same quarter last year
and 16 percent above the per unit margin of $8,387 for the quarter
ended Sept. 30, 1995. The Home Building operating margin in the
current quarter rose to 5.73 percent vs. 5.02 percent for the same
quarter last year and 5.08 percent in the quarter ended September
1995.
For the nine months, Home Building revenues were $1.41 billion
this year, 10 percent less than $1.57 billion for the same period
last year. Operating earnings from Home Building were $71.6 million
for the nine month period this year, 15 percent less than $84.6
million for the same period a year ago.
Home closings for the current nine months were 8,522 units, 12
percent less than 9,696 units for the same period last year. Home
orders for the nine months of 9,308 were 18 percent higher than
7,867 units for the same period a year ago.
The backlog of homes sold but not closed at Dec. 31, 1995 was
4,773 units, 20 percent above 3,966 units at Dec. 31, 1994 and 5
percent less than 5,043 units at Sept. 30, 1995.
FINANCIAL SERVICES
Current quarter revenues from Financial Services were $33.3
million, 22 percent higher than $27.3 million for the same quarter
last year. Operating earnings from Financial Services were $5.2
million for the quarter this year, a 31 percent gain over $4.0
million last year. Last year's operating earnings were comprised of
a $2.1 million loss from the company's mortgage banking business and
a $6.1 million gain related to the December 1994 disposition of the
company's savings and loan.
Mortgage originations for the quarter this year totaled 10,204,
24 percent higher than 8,250 originations for the same quarter last
year but slightly below 10,659 originations for the quarter ended
Sept. 30, 1995. Originations for Centex-built homes in this year's
quarter were 2,108, 14 percent higher than 1,851 originations for
the same quarter last year. Spot (third-party) originations of
8,096 were 27 percent above last year's 6,399 originations.
Total mortgage applications for the quarter of 9,754 were 36
percent higher than 7,160 applications for the same quarter last
year. Builder applications rose 11 percent while spot applications
increased 45 percent.
For the current nine months, revenues from Financial Services
were $93.2 million, slightly lower than $94.7 million for the same
period last year. Operating earnings from Financial Services were
$12.2 million for the nine months, 11 percent higher than $11.0
million for the same period last year. Last year's operating
earnings included a $3.1 million profit from the company's mortgage
banking business and a gain of $7.9 million from the company's
former savings and loan operation.
Mortgage originations for the nine month period this year
totaled 30,039, a slight increase over 29,910 originations for the
same period last year. Originations for Centex-built homes declined
8.5 percent to 5,859 from 6,403 last year, while spot originations
rose 3 percent to 24,180 this year from 23,507 for the same period a
year ago.
Total mortgage applications for the nine months this year
reached 32,337, up 19 percent from 27,110 applications for the same
period a year ago. Builder applications rose 42 percent for the
period while spot applications increased 14 percent.
CONTRACTING AND CONSTRUCTION SERVICES
Revenues from Contracting and Construction Services were $257.6
million for the quarter this year, 8 percent lower than $280.9
million for the same quarter in the prior year. Contracting and
Construction Services reported an operating loss of $2.0 million for
the quarter this year vs. a loss of $570,000 for the same quarter
last year.
The current quarter loss was due primarily to the non-
recognition during the quarter of earnings related to the Centex
Construction Group's contract to build href="chap11.harrahs.html">Harrah's Jazzville Casino in
New Orleans and to write-downs of certain other projects. The
Harrah's contract was suspended on Nov. 22, 1995 as a result of a
bankruptcy filing by the Harrah's Jazz Company partnership.
For the current nine months, revenues from Contracting and
Construction Services were $774.2 million, 5 percent less than
$814.8 million for the same quarter last year. Contracting and
Construction Services reported an operating loss of $1.8 million for
the nine months this year compared to last year's loss of $1.7
million for the same period.
Centex said its Construction Group received approximately $166
million of new contracts during the quarter vs. $305 million of new
work for the same quarter last year. New contracts for the current
nine month period totaled $729 million compared to $982 million for
the same period last year. The backlog of uncompleted construction
contracts at Dec. 31, 1995 was $1.236 billion, slightly less than
the backlog of $1.40 billion at Dec. 31, 1994 and the backlog of
$1.375 billion reported at Sept. 30, 1995.
CONSTRUCTION PRODUCTS
For the current quarter, Centex Corporation's 49 percent "Equity
in Earnings of Affiliate (CXP)" was $7.5 million, a 73 percent
increase over $4.3 million for the same quarter in fiscal 1995. For
the current nine months, Centex's 49 percent equity in CXP totaled
$21.4 million, a 55 percent increase over $13.8 million for the same
period a year ago.
CXP benefitted during the quarter from stronger than expected
product shipments due to unseasonably mild weather.
OTHER DEVELOPMENTS AND OUTLOOK
Centex and its subcontractors have a claim totaling nearly $40
million against Harrah's Jazzville for completed but unpaid work.
Centex's current liability to its subcontractors is for
substantially less than the total claim and the company is
negotiating to minimize that exposure. Centex said it believes that
it and its subcontractors will ultimately recover a substantial
portion of their losses. Centex said it will complete the
evaluation of its recovery potential and take any required charges
in connection with its fiscal year-end report.
Centex noted that the recent lower level of interest rates has
had a positive impact on both its Home Building and Financial
Services businesses. Improving backlogs in these businesses,
coupled with the continuation of favorable results from CXP, should
continue to generate earnings gains for the remainder of fiscal 1996
and provide the foundation for additional gains in the following
fiscal year.
Centex Corporation and Subsidiaries
Summary of Consolidated Earnings
(unaudited)
(dollar amounts in thousands, except per share data)
Quarter Ended
December 31,
-------------------------------------
1995 1994 Change
----------- ----------- ------
Revenues $ 790,149 $ 793,205
-%
Earnings Before Income Taxes $ 24,906 $ 19,311
29%
Net Earnings $ 15,156 $ 13,057
16%
Earnings Per Share $ 0.52 $ 0.44
18%
Average Shares Outstanding 29,229,616 29,485,220
(1%)
Nine Months Ended
December 31,
-------------------------------------
1995 1994 Change
----------- ----------- ------
Revenues $ 2,277,945 $ 2,481,431
(8%)
Earnings Before Income Taxes
Before Gain on CXP's IPO $ 61,994 $ 71,849 (14%)
Gain on CXP's IPO -- 59,328
----------- -----------
Earnings Before Income Taxes $ 61,994 $ 131,177
Net Earnings
Before Gain on CXP's IPO $ 37,580 $ 45,861 (18%)
Gain on CXP's IPO -- 37,495
----------- -----------
Net Earnings $ 37,580 $ 83,356
Earnings Per Share
Before Gain on CXP's IPO $ 1.29 $ 1.49 (13%)
Gain on CXP's IPO -- 1.22
----------- -----------
Earnings Per Share $ 1.29 $ 2.71
Average Shares Outstanding 29,050,846 30,722,621
(5%)
Centex Corporation and Subsidiaries
Revenues and Earnings by Lines of Business
(dollars in thousands)
Quarter Ended
December 31,
-------------------------------------
1995 1994 Change
----------- ----------- ------
Revenues
Home Building $ 499,199 $ 485,042
3%
63% 61%
Financial Services 33,307 27,258
22%
4% 4%
Contracting and Construction
Services 257,643 280,905 (8%)
33% 35%
----------- -----------
Total $ 790,149 $ 793,205
-%
100% 100%
Operating Earnings
Home Building $ 28,587 $ 24,351
17%
73% 77%
Financial Services 5,227 3,989
31%
13% 12%
Contracting and Construction
Services (1,950) (570) (242%)
(5%) (2%)
Other, Net (29) (398)
93%
-% (1%)
Equity In Earnings of
Affiliate (CXP) 7,519 4,337 73%
19% 14%
----------- ----------
Total Operating Earnings 39,354 31,709
24%
100% 100%
Corporate General Expenses (3,540) (3,980)
Interest Expense (10,908) (8,418)
----------- -----------
Earnings Before Income Taxes $ 24,906 $ 19,311
29%
Centex Corporation and Subsidiaries
Revenues and Earnings by Lines of Business
(dollars in thousands)
Nine Months Ended
December 31,
-------------------------------------
1995 1994 Change
----------- ----------- ------
Revenues
Home Building $ 1,410,522 $ 1,571,897
(10%)
62% 63%
Financial Services 93,243 94,731
(2%)
4% 4%
Contracting and Construction
Services 774,180 814,803 (5%)
34% 33%
----------- -----------
Total $ 2,277,945 $ 2,481,431
(8%)
100% 100%
Operating Earnings
Home Building $ 71,619 $ 84,615
(15%)
69% 80%
Financial Services 12,199 10,987
11%
12% 10%
Contracting and Construction
Services (1,795) (1,720) (4%)
(2%) (2%)
Other, Net (275) (1,306)
79%
-% (1%)
Equity In Earnings of
Affiliate (CXP) 21,358 13,812 55%
21% 13%
----------- ----------
Total Operating Earnings 103,106 106,388
(3%)
100% 100%
Corporate General Expenses (10,910) (11,320)
Interest Expense (30,202) (23,219)
----------- -----------
Earnings Before Gain on CXP
Initial Public Offering
and Income Taxes 61,994 71,849 (14%)
Gain on CXP Initial Public
Offering -- 59,328
----------- -----------
Earnings Before Income Taxes $ 61,994 $ 131,177
Centex Corporation and Subsidiaries
Housing Activity by Geographic Area
Closings
--------------------------------------------
Three Months Ended Nine Months Ended
------------------ ---------------------
12/31/95 12/31/94 12/31/95 12/31/94
-------- -------- -------- --------
West 568 522 1,680 1,811
Midwest 317 315 885 948
East 703 688 2,013 2,175
Southeast 563 613 1,549 1,927
Southwest 797 856 2,395 2,835
------- ------- -------- --------
2,948 2,994 8,522 9,696
Sales (Orders) Backlog
---------------------------------------
12/31/95 9/30/95 12/31/94
----------- ------------ -----------
West 695 713 566
Midwest 507 566 365
East 1,081 1,191 948
Southeast 1,079 1,151 965
Southwest 1,411 1,422 1,122
----------- ----------- -----------
4,773 5,043 3,966
Sales (Orders)
--------------------------------------------
Three Months Ended Nine Months Ended
------------------ ---------------------
12/31/95 12/31/94 12/31/95 12/31/94
-------- -------- -------- --------
West 550 489 1,772 1,621
Midwest 258 176 950 691
East 593 533 2,176 1,844
Southeast 491 473 1,736 1,505
Southwest 786 552 2,674 2,206
-------- -------- -------- --------
2,678 2,223 9,308 7,867
CAMBRIDGE, Mass., Jan. 23-- Genetics Institute,
Inc. (Nasdaq: GENIZ) today reported a net loss of $22,488,000, or
$(0.84) per share, on revenues of $172,055,000 for the year ended
December 31, 1995. The loss includes a special one-time charge of
$24,857,000, or $0.93 per share relating to the Company's fourth
quarter acquisition of SciGenics, Inc. Excluding this nonrecurring
charge, the Company would have reported net income of $2,369,000, or
$0.09 per share, for 1995. This is compared with a net loss of
$18,875,000, or $(0.71) per share, on revenues of $130,880,000 for
the year ended December 31, 1994.
For the fourth quarter of 1995, the Company reported a net loss
of $26,174,000 (including the special charge of $24,857,000
described above), or $(0.98) per share, on revenues of $41,880,000.
Excluding this nonrecurring charge, the Company would have reported
a net loss of $1,317,000 or $(0.05) per share for the fourth quarter
of 1995. This is compared with a net loss of $11,924,000, or
$(0.45) per share, on revenues of $27,953,000 for the fourth quarter
of 1994.
Revenue for the year ended December 31, 1995 increased to
$172,055,000 from $130,880,000 for the prior year. This increase
was driven primarily by: higher product sales that rose to
$83,220,000 from $43,482,000 a year ago; and higher royalty income
that totaled 55,993,000 in 1995 compared to $42,603,000 a year ago.
In addition, Collaborative R&D revenue included $9.5 million and
$28.9 million for the years ended December 31, 1995 and 1994,
respectively, relating to collaborations with American Home Products
Corporation, the Company's majority shareholder.
"1995 clearly represents a financial turning point for Genetics
Institute," said Gabriel Schmergel, the Company's President and
Chief Executive Officer. "Excluding the SciGenics special charge,
the Company has achieved profitability based largely on a 91%
increase in product sales and a 31% increase in royalty income.
Further, the recently announced restructuring and expansion of our
EPO license agreement with Boehringer Mannheim GmbH should help us
to achieve our goal of increased profitability in 1996."
Genetics Institute is a leading biopharmaceutical firm engaged
in the discovery, development and commercialization of human
pharmaceuticals through recombinant DNA and other technologies. The
Company has a diversified portfolio of licensed and proprietary
pharmaceutical products at various stages of development, including
treatments for anemia, hemophilia, cancer, bone damage, infectious
disease, inflammatory conditions and immune system disorders.
American Home Products Corporation (NYSE: AHP) holds a majority
interest in Genetics Institute. AHP is one of the worlds largest
research based pharmaceutical and health care products companies and
is a leading developer, manufacturer and marketer of prescription
drugs and over-the-counter medicines. It is also a leader in
vaccines, generic pharmaceuticals, biotechnology, agricultural
products, animal health care, medical devices and food products.
GENETICS INSTITUTE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND
TWELVE MONTHS ENDED DECEMBER 31, 1995 AND 1994
(unaudited - in thousands except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
1995 1994 1995 1994
REVENUE:
Product Sales $21,870 $9,030 $83,220 $43,482
Royalties 17,301 10,710 55,993 42,603
Collaborative R&D 2,709 8,213 32,842 44,795
Total Revenue 41,880 27,953 172,055 130,880
OPERATING EXPENSES:
Cost of Sales 7,296 6,303 38,436 28,369
Research & Development 31,956 28,866 122,404 108,161
General & Administrative 5,503 5,009 20,289 18,719
Special Acquisition Charge 24,857 --- 24,857 ---
Total Operating Expenses 69,612 40,178 205,986 155,249
LOSS FROM OPERATIONS (27,732) (12,225) (33,931) (24,369)
Other Income, Net 1,558 301 11,443 5,494
NET LOSS $(26,174) $(11,924) $(22,488) $(18,875)
WEIGHTED AVG SHARES 26,825 26,554 26,724 26,440
OUTSTANDING
NET LOSS PER SHARE $(.98) $(.45) $(.84) $(.71)
GENETICS INSTITUTE, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
AS OF DECEMBER 31, 1995 AND 1994
(unaudited - in thousands)
December 31,
1995 1994
ASSETS
Cash and Marketable Securities $250,839 $269,763
Other Current Assets 67,729 40,075
Total Current Assets 318,568 309,838
Property, Plant and Equipment, Net 109,116 105,315
Other Assets 6,132 6,440
Total $433,816 $421,593
LIABILITIES AND SHAREHOLDERS' EQUITY
Total Current Liabilities $43,696 $32,589
Shareholders' Equity 390,120 389,004
Total $433,816 $421,593
LOS ANGELES, Jan. 24, 1996-- Occidental Petroleum
Corporation (NYSE: OXY) today reported net income of $7 million (a
loss of $.05 per share) for the fourth quarter of 1995, compared
with break- even earnings (a loss of $.06 per share) for the fourth
quarter of 1994. The fourth quarter 1995 results included a $132
million pretax charge relating to the previously announced
reorganizations of the oil and gas and natural gas transmission
divisions. Sales were $2.4 billion for the fourth quarter of 1995,
compared with $2.5 billion for the same period of 1994.
The reorganization of the oil and gas division, for which a
charge of $95 million was recorded, is expected to result in
annualized savings of $100 million. Approximately 15 percent of
this charge is to provide for estimated losses on disposition of
assets as part of the reorganization. MidCon's reorganization, for
which a $37 million charge was recorded, is expected to recognize
annualized savings of $50 million.
In announcing the results, Dr. Ray R. Irani, chairman, president
and chief executive officer, stated, "Occidental's earnings before
special items for the full year 1995 were $623 million. This is
Occidental's best performance since the restructuring was announced
in January 1991 and is the first year since 1981 that we have earned
the dividend from earnings before special items. In addition, the
chemical division's 1995 reported earnings were higher than in any
previous year."
Oil and gas divisional earnings before special items were $64
million for the fourth quarter of 1995, compared with $4 million for
the fourth quarter of 1994. Divisional results after special items
were a loss of $31 million for the fourth quarter of 1995, compared
with a loss of $42 million for 1994. The 1995 results included the
$95 million charge related to reorganization costs. The 1994
results included charges to provide reserves for litigation matters
and impairment of properties and other charges, partially offset by
the reversal of reserves related to sold businesses. The increase
in 1995 operating earnings resulted primarily from higher worldwide
crude oil production and lower exploration expense.
Natural gas transmission divisional earnings before special
items were $59 million for the fourth quarter of 1995, compared with
$89 million in 1994. Divisional earnings after special items were
$22 million for the fourth quarter of 1995, compared with $93
million for 1994. The 1995 earnings included the $37 million charge
related to reorganization costs. The 1994 earnings included a
benefit from a LIFO inventory reduction. The decrease in 1995
operating earnings resulted from lower margins including those on
restructured contracts, partially offset by higher throughput
volumes.
Chemical divisional earnings were $167 million for the fourth
quarter of 1995, compared with earnings before special items of $212
million in 1994. Fourth quarter 1994 divisional earnings, after
charges for litigation matters and curtailment of certain plant
operations, were $127 million. The decline in 1995 operating
earnings resulted primarily from decreased profit margins in
petrochemicals and PVC resins and the absence of income applicable
to assets divested in 1995. Partially offsetting these declines was
the favorable impact of improved profit margins for caustic soda.
Unallocated interest expense was $13 million lower in the fourth
quarter of 1995, compared with 1994. The 1995 interest expense
reflected the benefit of a net reduction in outstanding debt,
partially offset by increased expense due to regulatory settlements.
Unallocated corporate other items were an expense of $7 million in
the fourth quarter of 1995, compared with income of $6 million in
1994. The decline in 1995 primarily reflected lower equity earnings
from unconsolidated chemical investments.
For the total year 1995, Occidental's net income totaled $511
million ($1.31 per share), compared with a net loss of $36 million
($.36 per share) in 1994. Sales increased to $10.4 billion for 1995
from $9.2 billion in 1994.
SUMMARY OF DIVISIONAL NET SALES AND EARNINGS
(Millions, except per-share amounts)
Fourth Quarter Twelve Months
Periods Ended December 31 1995 1994 1995
1994
DIVISIONAL NET SALES
Oil and gas $ 778 $ 665 $ 3,018 $ 2,451
Natural gas transmission 578 536 2,038 2,110
Chemical 1,117 1,364 5,370 4,677
Other - (1) (3) (2)
$ 2,473 $ 2,564 $10,423 $ 9,236
DIVISIONAL EARNINGS
Oil and gas $ (31) $ (42) $ 45 $ 27
Natural gas transmission 22 93 213 276
Chemical 167 127 1,080 350
158 178 1,338 653
Unallocated corporate items
Interest expense, net (130) (143) (540) (564)
Income taxes (a) (14) (41) (295) (110)
Other (7) 6 8 (15)
NET INCOME (LOSS) 7 - 511
(36)
Preferred dividends (23) (20) (93)
(76)
Earnings (loss) applicable to
common stock $ (16) $ (20) $ 418 $ (112)
EARNINGS (LOSS) PER COMMON SHARE
Primary $ (.05) $ (.06) $ 1.31 $ (.36)
Fully diluted $ (.05) $ (.06) $ 1.30 $ (.36)
Average common
shares outstanding 318.8 312.8 318.2 310.8
(a) Includes an offset for charges and credits in lieu of U.S.
federal income taxes allocated to the divisions. Divisional
earnings in the fourth quarter of 1995 have benefited from credits
allocated by $4 million, $12 million and $7 million at oil and gas,
natural gas transmission and chemical, respectively. Divisional
earnings in the fourth quarter of 1994 have benefited from credits
allocated by $5 million, $12 million and $8 million at oil and gas,
natural gas transmission and chemical, respectively.
SUMMARY OF OPERATING STATISTICS
Fourth Quarter Twelve Months
Periods Ended December 31 1995 1994 1995 1994
NET OIL, GAS AND LIQUIDS
PRODUCTION PER DAY
United States
Crude oil and condensate
(thousands of barrels) 62 59 64 59
Natural gas liquids
(thousands of barrels) 10 13 11 8
Natural gas
(millions of cubic feet) 584 612 612 620
Other Western Hemisphere
Crude oil and condensate
(thousands of barrels) 127 116 129 119
Eastern Hemisphere and other
Crude oil and condensate
(thousands of barrels) 100 77 85 59
Natural gas
(millions of cubic feet) 125 50 127 52
NATURAL GAS TRANSMISSION DELIVERIES
Sales (billions of cubic feet) 203 146 648 549
Transportation
(billions of cubic feet) 421 381 1,533 1,533
CAPITAL EXPENDITURES (millions) $ 372 $ 476 $ 978 $1,186
DEPRECIATION, DEPLETION AND
AMORTIZATION OF ASSETS (millions)$ 213 $ 222 $ 921 $ 882
HERSHEY, Pa., Jan. 24, 1996-- Nuclear
Support Services,
Inc. (Nasdaq: NSSI) announced today the signing of a Letter of
Intent to sell the commercial nuclear support business of its NSS
Numanco subsidiary for cash. The proposed sale is subject to
approval of the Bankruptcy Court in its Chapter 11 proceeding and is
part of a reorganization plan which the Company expects to file by
the end of January.
Ralph A. Trallo, NSSI President and Chief Executive Officer,
stated, "This development is a significant step in the Company's
efforts toward a timely exit from bankruptcy. It also allows us to
focus on value added services as well as achieving a balanced market
mix."
NSSI is a leading supplier of service support and maintenance to
power generation, pulp and paper, petro-chemical and other general
industries.
CONTACT: Ralph A. Trallo, President of Nuclear Support Services,
717-533-6370
SANTA CLARA, Calif.--Jan. 24, 1996--Rational
Software Corporation (NASDAQ: RATL) today announced revenue and
results of operations for the third quarter ended December 31, 1995.
Revenue for the period was $24,004,000, a 29 percent increase
compared to $18,605,000 for the third quarter last year. Product
license revenue for the period was $14,904,000, an increase of 49
percent compared to $9,983,000 last year. For the quarter, the
company's gross profit increased 39 percent to $17,192,000 from
$12,358,000 last year, while the overall gross profit margin
increased to 72 percent from 66 percent reported last year.
The company reported a net loss of $11,161,000, or $0.69 per
share, for the third quarter compared to a net profit of $1,564,000,
or $0.12 per share, reported for the same period last year. As a
result, for the first nine months the company reported a net loss of
$0.52 per share compared to net income of $0.26 per share last year.
As previously announced, the company's earnings for the third
quarter were reduced by charges and operating expenses associated
with the acquisition of Objectory AB and the subsequent
restructuring and shaping of the company's business. As a result of
these actions, the company incurred approximately $14,500,000 of
third-quarter non-recurring operating and merger-related expenses,
which includes an $8,700,000 write-off of in-process research and
development costs associated with the acquisition.
Cash and cash equivalents increased to $42,900,000 from the
$37,200,000 reported at the end of the second quarter.
Paul D. Levy, president and chief executive officer of Rational
Software Corporation, said, "We are pleased with the strong growth
in third-quarter product revenue. Based on the strength of third-
quarter business, Rational's object technology revenue for the first
nine months of the current fiscal year has more than doubled
compared to the same period in the prior year. The net loss for the
period is in line with what the company had previously announced,
and we feel that we have completed during the quarter the combining
of Objectory AB with Rational in an efficient manner."
Mr. Levy went on to say, "We are pleased to report that several
important new products are now shipping. New releases of the
company's Rational Apex and Spire products began shipping in the
third quarter, supporting C/C++. Rational Rose 3.0 for Windows,
with the potential to further broaden the company's object
technology business, began shipping in December, and Rational
Rose/PowerBuilder began shipping earlier this month. In addition,
an early release of Rational Rose/Visual Basic is being tested by
select customers, and we have completed work on the prototype of
Rational Rose/Java for Internet software development."
Rational Software Corporation develops, markets, and supports a
comprehensive solution for developing complex software applications.
The company provides a solution that can be tailored to support a
customer's specific software-development needs. This solution is
supported by an integrated family of tools that provide support for
the critical phases of the software-development process, from
business engineering and systems engineering, through initial
analysis and design, to implementation, delivery, and maintenance.
In addition, Rational provides a full range of technical consulting,
training, and support services as an integral component of its
solution.
Rational Software Corporation
Consolidated Results of Operations
(in thousands of dollars, except per share data, unaudited)
Three months ended December 31,
1995 % 1994 %
Revenues:
Product $14,904 62.1 $ 9,983 53.7
Consulting and support 9,100 37.9 8,622 46.3
Total revenues 24,004 100.0 18,605 100.0
Cost of sales:
Product 1,953 8.1 1,741 9.4
Consulting and
support 4,859 20.2 4,506 24.2
Total cost of
sales 6,812 28.4 6,247 33.6
Gross margin
Product 12,951 86.9 8,242 82.6
Consulting and
support 4,241 46.6 4,116 47.7
Total gross
margin 17,192 71.6 12,358 66.4
Operating expenses:
Product development 5,374 22.4 2,876 15.5
Sales and
marketing 10,906 45.4 6,558 35.2
General and
administrative 3,441 14.3 1,828 9.8
Merger and
restructuring costs
(benefits) - - (510) -2.7
Write-off of in-process
research and
development 8,700 36.2 - -
Operating
expenses 28,421 118.4 10,752 57.8
Operating (loss)
income (11,229) -46.8 1,606 8.6
Other income, net 288 1.2 99 0.5
Provision for income
taxes 220 0.9 141 0.8
Net (loss)
income $(11,161) -46.5 $1,564 8.4
Earnings per share $(0.69) $0.12
Shares used in computing
per share amounts 16,233 12,668
Rational Software Corporation
Consolidated Results of Operations
(in thousands of dollars, except per share data, unaudited)
Nine months ended December 31,
1995 % 1994 %
Revenues:
Product $40,174 61.4 $28,327 53.1
Consulting and
support 25,229 38.6 24,989 46.9
Total revenues 65,403 100.0 53,316 100.0
Cost of sales:
Product 5,081 7.8 4,480 8.4
Consulting and
support 13,788 21.1 13,440 25.2
Total cost of
sales 18,869 28.9 17,920 33.6
Gross margin
Product 35,093 87.4 23,847 84.2
Consulting and
support 11,441 45.3 11,549 46.2
Total gross
margin 46,534 71.1 35,396 66.4
Operating expenses:
Product
development 11,830 18.1 9,153 17.2
Sales and marketing 26,988 41.3 24,058 45.1
General and
administrative 7,223 11.0 - -
Merger and restructuring
costs (benefits) - - (1,100) -2.1
Write-off of in-process
research and
development 8,700 13.3 - -
Operating expenses 54,741 83.7 32,111 60.2
Operating (loss)
income (8,207) -12.5 3,285 6.2
Other income, net 916 1.4 193 0.4
Provision for income
taxes 512 0.8 278 0.5
Net (loss) income $(7,803) -11.9 $3,200 6.0
Earnings per share $(0.52) $0.26
Shares used in computing
per share amounts 14,984 12,494
Rational Software Corporation
Condensed Consolidated Balance Sheets
(in thousands of dollars)
December 31, 1995 March 31, 1995
(unaudited)
Assets
Current assets:
Cash and cash equivalents $42,930 $ 10,476
Receivables 18,048 18,741
Prepaids and other assets 2,124 766
Total current assets 63,102 29,983
Property and equipment, net 5,368 6,117
Goodwill and other purchased
intangibles 2,330 -
Deposits and other assets 1,116 1,900
Total assets $71,916 $38,000
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 3,451 $ 2,331
Accrued employee benefits 7,374 5,619
Other accrued liabilities 4,197 3,938
Acquisition-related accruals 1,614 -
Current portion long-term
debt 1,367 2,572
Deferred revenue 6,520 7,781
Total current liabilities $24,523 $22,241
Long-term debt and lease
obligations - 1,911
Long-term accrued merger and
restructuring expense 2,459 1,764
Stockholders' equity:
Common stock 110,924 70,058
Accumulated deficit (65,990) (57,974)
Total stockholders' equity 44,934 12,084
Total liabilities and
stockholders' equity $71,916 $38,000
BURNABY, British Columbia, Jan. 24, 1996-- The Mississippi
Supreme Court ordered today that the interim stay previously granted
to The Loewen Group would be lifted effective January 31, 1996. As
a result, the company will be required to post a bond in the amount
of $625 million by January 31.
The company and its advisors have been and will continue to
explore options to raise financing to support the bond. If
financing is not available for the $625 million bond, or if the
company otherwise determines that it will not post the bond, then
following the expiration of the stay the plaintiffs would be
entitled to attach assets of the company. Attachment of assets
could cause certain company indebtedness to accelerate. If the
company determines that the assets and operations of the company
are, absent a stay, at risk, the company may determine that it would
be in the best interests of its continued operations, shareholders
and creditors generally to place the company under bankruptcy
protection.
The Loewen Group Inc. is the second largest funeral service
corporation in North America, with 814 funeral homes and 179
cemeteries across the United States and Canada. Approximately 90%
of the company's total revenue is derived from locations in the
United States.
For further information: Paul Wagler, Senior Vice-President,
Finance or Dwight Hawes, Vice President, Finance (604) 299-9321/