EAGAN, Minn., Jan. 25, 1996-- Cray Research Inc.,
(NYSE:CYR) reported a net loss of $25.6 million, or $1.00 per share
on revenues of $236.3 million for the fourth quarter ending December
31. The results include a restructuring and one-time charge of $42.6
million pre-tax or $1.45 per share after tax. Net earnings per share
prior to restructuring and one time charges would have been $ .45
for the quarter. This compares with net earnings of $9.5 million or
$ .38 per share on revenues of $237.1 million for the comparable
quarter a year ago including one time and restructuring charges of
$8.3 million pre-tax or $ .23 per share after tax.
For the full year, the Company reported a net loss of $226.4
million, or $8.95 per share, on revenues of $676.2 million. This
compares with net earnings of $55.7 million or $2.16 per share on
revenues of $921.6 million for the previous fiscal year.
Orders totalled $266 million in the quarter compared with $147
million and $270 million for the third quarter of 1995 and the
fourth quarter of 1994 respectively. Orders for the full year
totalled $650 million, up 12% from the previous year. Backlog at the
end of the year stood at $437 million up 23% from the third quarter
and up 84% from 1994 and represent the highest level of year end
backlog in the Company's history. Cash and equivalents at the end of
the year totalled $254 million.
Product gross margins in the fourth quarter were 42% up from 35%
in the third quarter, as the Company began shipping new high-end
CRAY T90 systems in higher volume. Product gross margins declined in
both the fourth quarter and the full year compared with the
comparable periods a year ago, due to increased volumes of lower
priced mid-range systems and lower overall volumes of high end
systems shipped for the full year. Service gross margins were 27%
for the quarter and 29% for the full year, up from the comparable
periods a year ago due to lower spare parts requirements, as well as
overall cost reductions and greater efficiency in service delivery.
Total operating expenses prior to restructuring declined 8% for
the quarter and 7% for the full year compared with the similar
periods a year ago. One-time and restructuring charges in the fourth
quarter of $42.6 million are related to inventories, severance
payments for employees and miscellaneous restructuring actions.
Approximately 62% of the charges are non-cash in nature. For the
year, the Company has reported one-time and restructuring charges of
$187.7 million, $149.0 million of which are non-cash in nature.
Commenting on the results, Cray's chairman and chief executive
officer J. Phillip Samper said: "In 1995, we laid out a game plan
for the year and we followed it. Our fourth quarter results are
delivering on what we said previously.
"We also said we expect to be profitable in 1996, but our
performance will be much stronger in the second half of the year.
The first half will not be profitable and this first half weakness
is directly associated with the delivery schedule for new products.
Our efforts in the first half of 1996 will continue to focus on
reducing costs, increasing our efficiency, improving asset
utilization and more rapid execution.
"In 1995 we experienced growth in several critical dimensions as
we see more and more customers coming into our space. We continued
to set a record in the number of Cray systems installed, saw more
than 40% of our business come from new customers, more than half
from newly announced products, and our customers ordered more than
twice the number of Megaflops from Cray in 1995 compared with 1994.
Our system installed base grew 25% this year and, at nearly 800
systems, stands at an all time high.
"My optimism for 1996 is based on our strong new product line-up
and backlog coupled with our loyal customer base, increasing
awareness of Cray's value to new customers, and our talented
employees," Samper concluded.
The above statements concerning 1996 and the following
statements are based on current expectations. These statements are
forward looking and actual results may differ materially.
There are several factors that make the Company cautious on the
first half outlook. CRAY T90 systems, while increasing in volumes,
will not be at full volume until sometime in the second quarter.
CRAY T3E systems, with strong demand as reflected in backlog, are
not scheduled to begin shipping until later in the year, and the
Company's commercial effort, which management views as a long term
growth opportunity for Cray, will not have a significant or positive
impact on overall financial results in 1996. Given these factors,
while the Company anticipates an operating profit for the full year
1996, it anticipates operating losses in the first half.
The foregoing statements contained in this outlook are forward
looking statements that involve a number of risks and uncertainties.
Various factors could cause the actual results to differ materially
from such anticipated results, including timely availability of
third party components at reasonable prices, delays in shipment of
new products, business conditions and changes in customer demand or
spending patterns, the growth in high performance computing and the
general economy, uncertainty in government funding, inventory risks
associated with shifts in demand and/or price erosion of purchased
components, additional restructuring charges which may need to be
incurred, competitive factors including product introductions,
pricing actions or business combinations and alliances and the risk
factors listed from time to time in the company's SEC reports,
including but not limited to the report on Form 10-Q for the quarter
ended September 30, 1995.
Cray Research provides the leading high-performance tools and
services to help solve customers' most challenging problems.
CRAY RESEARCH, INC. and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
December 31
----------------------
1995 1994
---------- ----------
(In thousands, except
per share data)
Revenue:
Sales and lease $ 188,154 $ 185,448
Service fees 48,115 51,618
---------------------------- --------- ---------
Total revenue 236,269 237,066
---------------------------- --------- ---------
Cost of revenue:
Cost of sales and lease 109,103 95,574
Cost of services 35,201 40,685
---------------------------- --------- ---------
Total cost of revenue 144,304 136,259
---------------------------- --------- ---------
Gross profit 91,965 100,807
---------------------------- --------- ---------
Operating expenses:
Development and engineering 30,981 31,661
Sales, marketing & G & A 44,280 50,001
Restructure & one-time charges 42,559 8,296
---------------------------- --------- ---------
Total operating expenses 117,820 89,958
---------------------------- --------- ---------
Operating income (loss) (25,855) 10,849
Other income (expense), net (777) 1,954
---------------------------- --------- ---------
Earnings (Loss) before taxes (26,632) 12,803
Income tax benefit (expense) 1,003 (3,304)
---------------------------- --------- ---------
Net earnings (loss) $ (25,629) $ 9,499
----------------------------
Earnings (Loss) per common and
common equivalent share $ (1.00) $ 0.38
----------------------------
Average number of common and
common equivalent shares
outstanding 25,520 25,648
----------------------------
CRAY RESEARCH, INC. and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Twelve Months Ended
December 31
----------------------
1995 1994
---------- ----------
(In thousands, except
per share data)
Revenue:
Sales and lease $ 468,315 $ 727,725
Service fees 207,929 193,884
---------------------------- --------- ---------
Total revenue 676,244 921,609
---------------------------- --------- ---------
Cost of revenue:
Cost of sales and lease 289,158 376,740
Cost of services 147,411 151,407
---------------------------- --------- ---------
Total cost of revenue 436,569 528,147
---------------------------- --------- ---------
Gross profit 239,675 393,462
---------------------------- --------- ---------
Operating expenses:
Development and engineering 122,965 140,632
Sales, marketing & G & A 167,259 170,062
Restructure & one-time charges 187,670 8,296
---------------------------- --------- ---------
Total operating expenses 477,894 318,990
---------------------------- --------- ---------
Operating income (loss) (238,219) 74,472
Other income (expense), net 2,423 3,261
---------------------------- --------- ---------
Earnings (Loss) before taxes (235,796) 77,733
Income tax benefit (expense) 9,432 (22,037)
---------------------------- --------- ---------
Net earnings (loss) $(226,364) $ 55,696
----------------------------
Earnings (Loss) per common and
common equivalent share $ (8.95) $ 2.16
----------------------------
Average number of common and
common equivalent shares
outstanding 25,282 25,845
----------------------------
CRAY RESEARCH, INC. and SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31 December 31
1995 1994
------------ -----------
Assets (In thousands)
---------------------------
Current assets:
Cash and equivalents $ 104,425 $ 55,543
Receivables 156,039 229,808
Inventories 177,359 207,496
Other current assets 60,082 41,191
-------------------------- -------- --------
Total current assets 497,905 534,038
Long-term receivables 22,165 20,959
Leased systems and spares, net 69,671 110,207
Property, plant and equipment, net 200,875 265,116
Long-term cash investments 150,000 200,000
Other assets 37,438 51,559
------------------------ --------- ---------
$ 978,054 $ 1,181,879
Liabilities and Stockholders' Equity
-------------------------------------
Current liabilities:
Current installments/long-term debt $ 5,679 $ 7,344
Accounts payable 42,924 37,999
Accrued expenses 99,314 110,373
Income taxes payable 0 7,009
Deferred income and customer advances 124,255 75,214
----------------------------- -------- -------
Total current liabilities 272,172 237,939
----------------------------- -------- -------
Long-term debt, excluding
current installments 92,682 97,000
Other long-term obligations 10,772 18,030
Stockholders' equity:
Common stock 31,511 31,511
Additional paid-in capital 70,697 91,973
Retained earnings 696,196 922,560
Foreign currency translation adjustments 5,773 2,774
Unearned compensation-restricted stock (5,339) 0
Treasury stock, at cost (196,410) (219,908)
------------------------------- ------- -------
Total stockholders' equity 602,428 828,910
------------------------------- ------- -------
$ 978,054 $1,181,879
CRAY RESEARCH, INC.
SUPPLEMENTAL INFORMATION
December 31, 1995
SELECTED BALANCE SHEET ITEMS: ------------------
Total cash & investments $ 254,425,000
Receivables $ 156,039,000
Inventories
Raw material $ 90,891,000
Work in process 47,403,000
Finished goods 39,065,000
------------------------------------- -----------------
Total $ 177,359,000
------------------------------------- -----------------
Three Months Twelve Months
Ended Ended
Dec. 31, 1995 Dec. 31, 1995
------------- -------------
Interest received $ 2,715,000 $ 12,194,000
Interest paid 1,028,000 9,015,000
Depreciation and 33,320,000 139,138,000
amortization
Expenditure for property,
plant and equipment 7,844,000 49,164,000
Effect of exchange rate 325,000 2,558,000
changes on cash
------------------------------------------------------------
Overall gross profit margin 38.9% 35.4%
Sales and lease gross profit 42.0% 38.3%
margin
Service gross profit margin 26.8% 29.1%
------------------------------------------------------------
REVENUE BY GEOGRAPHY: ($000's) % ($000's) %
-------- -------- -------- --------
Revenue U.S. $ 88,601 37.5% $291,769 43.1%
Revenue International 147,668 62.5% 384,476 56.9%
------------------------------------------------------------
Orders 266,000 650,000
% Growth (decline) (1.5)% 11.9%
year-to-year
Backlog -- 437,000
% Growth year-to-year -- 84.4%
------------------------------------------------------------
Total number of employees 4225
------------------------------------------------------------
(In conjunction with the company's announcement today of
financial results for the fourth quarter and year ended Dec. 31,
1995, Cray Research, Inc., is providing this more detailed summary
of order activity.)
The value of orders for the fourth quarter totalled $266
million, up more than 80 percent from the strong $147 million figure
for third- quarter 1995. Total order value for 1995 was $650
million, up about 12 percent over 1994 order value of $581 million.
Year-end 1995 order backlog was $437 million, most of which is
scheduled for delivery in 1996. This represents an 84 percent
increase over 1994 year-end order backlog of $237 million and the
highest year-end backlog level in Cray's history.
Year-end 1995 backlog includes about $160 million, or more than
35 percent, in advance orders-to-date for Cray's recently announced
CRAY T3E scalable parallel processing system, scheduled to begin
shipments in first-half 1996. Cray said advance orders for the CRAY
T3E system are stronger than expected and well ahead of the pace set
by the prior- generation CRAY T3D system. The company said about 45
percent of the backlog is from the CRAY T90 Series systems.
"We are pleased by the strong interest in our new CRAY T3E and
CRAY T90 systems and by the success of all Cray's products," said J.
Phillip Samper, Cray chairman and chief executive officer. "We
already have received several orders for our most powerful 32-
processor CRAY T90 systems and the CRAY J90 systems are the fastest
selling product in our company history."
In addition to customers disclosed in the November 28, 1995,
CRAY T3E product announcement, Cray Research won fourth-quarter
orders for the CRAY T3E system from customers including the
University of Hannover; Technical University of Berlin; Konrad Zuse
Center for Information Technology Berlin; and the Norwegian
University for Science and Technology, for academic and dedicated
use by the Norwegian Meteorological Office for operational weather
forecasting. Cray said it already has received an order for a CRAY
T3E system with more than 1,000 processors from an undisclosed
customer and that the average system is more than 128 processors,
far exceeding the average processor count of competing parallel
systems. Additional fourth-quarter CRAY T3E customer names are being
withheld at the customers' requests.
Cray said about 40 percent of 1995 orders came from new
customers, largely reflecting the firm's continued expansion from
its high-end supercomputing leadership base into new technical and
commercial growth markets with higher-volume, lower priced systems
such as the CRAY J90 compact supercomputers and the CRAY CS6400
enterprise database servers. Cray's installed system base has more
than tripled in recent years, from about 250 in 1990 to nearly 800
systems at year-end 1995.
"Cray is firmly committed to maintaining our commanding lead in
the high-end supercomputer market, while leveraging this experience
in new technical and commercial markets," Samper said.
During the fourth quarter Cray received a large, multiple system
order for high-end systems from Ford Motor Company; high-end
supercomputer orders from an undisclosed aerospace organization;
Italy's Energy Production Center (ENEL); Kia Motors in Korea;
Italian auto firm Fiat; and four leading Japanese industrial
companies including the previously announced order from Nippon
Telegraph and Telephone Corp.; as well as orders for lower-priced
supercomputers from Carnegie Institution of Washington, Washington,
D.C.; Inter-University Computer Center in Israel; NASA and U.S. Navy
sites; the University of Oklahoma's Center for the Advanced
Prediction of Storms; the National Oceanographic and Atmospheric
Administration's National Environmental Satellite Data and
Information Service, Suitland, Md.; an order for six systems from
French auto company PSA Peugeot Citroen; and orders from three
separate Korean government organizations - Agency for Defense
Development, Seoul National University, and the Korea Institute of
Science and Technology. Several of these procurements involved
competition from SGI, Convex and IBM.
In the fourth quarter, over 50 percent of Cray Business System
orders were from new customers. Orders came from LG Electronics in
Korea; several Japanese universities including Chiba University,
which is using the CS6400 system as the university's Web Server; a
European telecommunications firm; and an order through Amdahl
expected to be installed at a European transportation firm. More
than 60 percent of the fourth-quarter orders for the CS6400 business
server were received through Cray's established global indirect
distribution channels.
Key targets for Cray's business servers are financial services,
telecommunications, retail, travel/transportation, and government
rightsizing markets. Cray said in 1995 the company set out to
capture high-profile reference customers in these target markets and
added customers including MCI Telecommunications, American
Automobile Association, Bank of America, and the Federal Bureau of
Investigation to its growing list of business server customers.
Cray Research provides the leading high-performance computing
tools and services to help solve customers' most challenging
problems.
CONTACT: Steve Conway, Media, 612-683-7133 and Brad Allen,
Financial, 612-683-7395, both of Cray Research, Inc.
Color Tile said that it has entered into a $15 million debtor-
in- possession (DIP) financing agreement with its existing bank
syndicate led by Chemical Bank, subject to Bankruptcy Court
approval. Today, the Bankruptcy Court approved $5 million of the
DIP facility on an emergency basis. These funds (together with all
proceeds from its current inventory) will be available to, among
other things, meet the company's continuing obligations to suppliers
and vendors during the restructuring process. In addition, the
Bankruptcy Court approved orders that will enable Color Tile to
continue paying salary and benefits to all its employees throughout
the country.
Color Tile also said that American Blind and Wallpaper Factory,
Inc. (ABWF), the company's Plymouth, Michigan-based, wholly owned
subsidiary engaged in the sale of name-brand and private-label
window treatments and wall coverings on a special-order basis, is
not involved in or affected by the Chapter 11 filing, and that ABWF
has entered into a separate credit facility with the bank syndicate
led by Chemical Bank that will allow it to operate independently and
separately from its parent's reorganization process.
The restructuring of Color Tile will be led by Bart A. Brown,
Jr., its Chairman and CEO, and by Larry Ramaekers, a principal in
the Southfield, Michigan firm of Jay Alix and Associates, who today
was named its President and Chief Operating Officer. Mr. Brown was
recently Chairman and CEO of The Circle K Corporation, which
successfully emerged from Chapter 11 in 1993. Mr. Ramaekers, age
57, has successfully led the reorganization of several companies
over the past 10 years, including the recent return to profitability
of National Car Rental Systems, Inc., of which he was President.
"Over the past year, Color Tile has confronted an extremely
difficult floor covering retail environment and many of our stores
currently are not profitable," said Bart A. Brown, Jr., Chairman and
Chief Executive Officer of Color Tile. "We have been working with
our lenders over the past several months to develop a plan to
restructure the company. We intend to use the Chapter 11 process to
restructure Color Tile along financial and operational lines that
are consistent with the new marketplace that is taking shape. The
DIP facility will provide Color Tile with the flexibility it needs
to continue its revitalization program. Color Tile has an
experienced management team, loyal franchisees, national purchasing
power, strong customer recognition and a service commitment that
distinguishes it from other full-service flooring retailers. With
these competitive advantages, I am confident we can set Color Tile
back on a profitable growth track."
Mr. Ramaekers said, "I am delighted to join the Color Tile team.
The Color Tile name and its employees have been well respected in
the floor covering business for over 40 years. We intend to
capitalize on the company's strengths and focus our efforts on areas
where the company already excels, such as in providing the highest
level of service to our customers."
Color Tile, Inc. is "America's Flooring Store," retailing
carpet, ceramic and vinyl floor covering products. Color Tile
operates 620 company owned stores and 154 franchisee-owned stores in
49 states serving the residential and commercial markets.
CONTACT: James N. Fingeroth, or Todd Fogarty, both of Kekst and
Company, 212-593-2655
In SFTU030, "PHYSICIANS CLINICAL LABORATORY REPORTS THIRD
QUARTER RESULTS," moved yesterday, Jan. 23,1996 we are informed
by the company that the quotation in the fifth graph should include the
additional sentence: "The Company continues to rely upon cash
collections to meet its operating needs." Also, the fifth graph
should be followed by a "Safe Harbor" Statement. Complete,
corrected release follows.
PHYSICIANS CLINICAL LABORATORY REPORTS THIRD QUARTER RESULTS
SACRAMENTO, Calif., Jan. 23, 1996 -- Physicians Clinical
Laboratory, Inc. (Nasdaq: PCLI), today reported results for the
third quarter of fiscal 1996.
For the quarter ended November 30, 1995, PCLI reported revenues
of $21,614,000 compared with revenues of $28,919,000 in the third
fiscal quarter of 1995. Operating losses before one-time charges
were $2,800,000 versus an operating loss of $635,000 in the prior
year. Taking into effect one-time charges of $2,556,000 or
approximately $0.42 per share, related to credit restructuring
activities and the write-down of accounts receivable, the Company
reported a net loss of $8,757,000 or $1.45 per share, compared with
net loss of $1,793,000, or $0.29 per share for the same period one
year ago.
For the first nine months of fiscal 1996, PCLI reported revenues
of $70,830,000 compared with $87,057,000 for the first six months of
fiscal 1995. Operating losses before one-time charges were
$3,523,000 compared with operating income of $5,198,000 in the same
period one year ago. Taking into effect the one-time charges, the
Company reported a loss of $20,808,000, or $3.44 per share, versus
net loss of $495,000, or $0.08 per share, for the first nine months
of fiscal 1995.
Commenting on the third fiscal quarter results, President and
Chief Executive Officer, Nate Headley, said "Fiscal results at the
beginning of our third fiscal quarter provided the basis for the
complete restructuring of our Southern Region operations. That
effort, resulting in an approximate annualized savings of
$9,500,000, and the elimination of 220 full-time employees was
completed in December of 1995, and not reflected in third fiscal
quarter results."
Headley continued, "The Southern Region restructuring included
not only substantial reduction in operating costs but also the
recognition and elimination of non-profitable capitation contracts.
It has become obvious that our Industry can no longer sustain
services under capitation without careful analysis of current
individual contract profitability. The steadily increasing
penetration of managed care in California tends to place many
contracts in a precarious environment with respect to continued
profitability. The Southern region restructuring in combination
with the recent purchase of the Company's senior debt by an investor
group led by Fidelity Investments and Oaktree Capital Management has
substantially strengthened the Company's financial stability and
operating environment on a going forward basis. The Company
continues to rely upon cash collections to meet its operating
needs."
The following is a "Safe Harbor" Statement under the Private
Securities Litigation Reform Act of 1995:
The statements contained in this release that are not historical
facts are forward looking statements. Actual results may differ
materially from those projected in the forward looking statements.
These forward looking statements involved risks and uncertainties,
including but not limited to the following: actual results of
operations following the restructuring of the Company's Southern
Region, the Company's ability to continue to eliminate non-
profitable contracts and operations, and the other factors
identified in the Company's Report on Form 10-Q for the quarter
ended November 30, 1995 and other documents filed by the Company
with the Securities and Exchange Commission.
PHYSICIANS CLINICAL LABORATORY, INC.
CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE THREE AND NINE MONTHS ENDED NOVEMBER 30, 1995 AND 1994
(In thousands, except for per share data)
Three Months Ended Nine Months Ended
November 30, November 30,
1995 1994 1995 1994
NET REVENUE $21,614 $28,919 $70,830 $87,057
DIRECT LABORATORY COSTS 7,599 8,356 24,284 27,143
Gross Profit 14,015 20,563 46,546 59,914
LABORATORY SUPPORT COSTS 6,318 6,014 18,961 18,367
Laboratory Profit 7,697 14,549 27,585 41,547
OVERHEAD EXPENSE 10,497 15,183 31,108 36,349
CREDIT RESTRUCTURING EXPENSE 499 -- 3,011 --
WRITE DOWN OF ACCOUNTS
RECEIVABLE TO NET REALIZABLE
VALUE 2,057 -- 5,057 --
Operating Income (5,356) (634) (11,591) 5,198
INTEREST EXPENSE AND OTHER,
net 3,401 2,431 9,217 5,983
INCOME TAXES 0 (1,273) 0 (290)
Net Income (Loss) $(8,757) $(1,792) $(20,808) $ (495)
EARNINGS PER SHARE:
Primary $ (1.45) $ (0.29) $ (3.44) $ (0.08)
Fully Diluted $ N/A $ N/A $ N/A $ N/A
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING
Primary 6,031,000 6,182,000 6,049,000 6,164,000
Fully Diluted N/A N/A N/A N/A
BRANSON, Mo., Jan. 24, 1996 -- ITEC
ATTRACTIONS announced today the filing of a Chapter 11 bankruptcy
petition and the proposed sale of its OZARKS DISCOVERY IMAX THEATER
COMPLEX in
Branson, Missouri within the bankruptcy case. ITEC developed the
Ozark Discovery IMAX Theater and Mall in Branson as a part of a
corporate strategy to become a multi-facility company. In the fall
of 1994, the company had a secondary offering of its stock which was
to finance the second facility in St. Thomas, U.S. Virgin Islands
and to provide some funding to complete the "Ozark" theme film for
the Branson facility. This offering failed, and ITEC was forced to
borrow short term funds to complete the production of the film.
The burden of this additional debt proved too heavy for one
facility to carry. Thus the company has determined to sell the
Branson complex.
In order to facilitate the sale and to restructure and reduce
its existing debt, ITEC is filing for Chapter 11 protection under
the Bankruptcy Laws. The sale of the Branson facility is the source
of the funds with which the company will make payments to creditors.
The exact terms of the sale and the details of the Chapter 11 plan
will be finalized after all required parties tender their approval.
Kelvyn H. Cullimore, President of ITEC Attractions explained,
"It has been our goal to have the very best IMAX Theater operation
in the country. We have endeavored to be contributing members of
this community, and we have always placed the needs and the
satisfaction of our customers above all else. We feel that in most
ways we have met our goals and been successful in our efforts. Our
satisfaction rating at the theater is tops, and McFarlain's
restaurant has been a success since the first day we opened. I can
not give enough praise to our great team of people who have created
this fine institution in the period of just two short years. It is
unfortunate that the debt structure of the company was such that the
sale of the facility was necessary. We are pleased that DESTINATION
CINEMA has a commitment to meeting the high standards of
entertainment and customer satisfaction that we have instituted."
In addition to the IMAX Giant Screen Theater, Destination Cinema
is purchasing the mall, McFarlain's Restaurant, Gingerbread Kids
Children's Shoppe, and two films which anchor the programming at the
theater: Ozarks: Legacy and Legend," and "Neighbors."
In announcing the sale, Cullimore said, "Destination Cinema is
the major player in the private sector of the giant screen industry.
Their financial strength and their vast experience in operating
tourist destination giant screen theaters will enhance the positive
experience of our facility and will be a significant addition to the
Branson entertainment community."
Richard James, President of Destination Cinema stated, "It is
anticipated that there will be little or no change in the operations
of the Ozarks Discovery IMAX theater. We are impressed with the
quality of the management personnel here, we have never seen a
stronger team of people with a spirit of commitment to customer
service. We want to perpetuate that spirit."
Both ITEC and DESTINATION CINEMA have committed to making the
transition of the ownership as smooth as possible. James stated,
"We are confident that the receptive operators, tour companies and
individual customers will not sense any difference in the way the
business has been operated. With additional resources, we hope to
be able to develop the company's operations even further."
CONTACT: Bob Cardon, Corporate Secretary of International Tourist
Attractions Entertainment Corp., 801-566-9000/
WHEELING, Ill.--Jan. 25, 1996--SPORTMART, INC.
(NASDAQ NM: SPMT, SPMTA) today announced it will record a $4.8
- $5.4 million charge, after related income taxes, against its
fourth quarter earnings. These charges, designed to improve the
Company's future profitability, include:
Sportmart's "No Contest!" division, which consists of four
locations selling footwear and apparel, will be closed in order for
the Company to focus its efforts solely on its superstores.
The two mart closings are due to cannibalization from newer
neighboring Sportmart marts at better locations. The River North
mart was impacted by the Company's new flagship LaSalle Street store
located six blocks away. The Wheeling mart, now impacted by three
newer marts, has been operating as a clearance center since May of
1995.
Lastly, Sportmart will reserve funds for severance in
conjunction with the retirement of Sanford Cantor, Co-Founder and
Vice Chairman of the Company, as well as other personnel
restructuring. Sportmart also announced that it estimates sales for
the fourth quarter of 1995 to be approximately $152 - $153 million.
This sales estimate has been developed assuming that the last week
of January's sales continue on current trend for January. The
Company also estimates that comparable store sales for the quarter
will be approximately 1.5% below the prior year's fourth quarter,
once again assuming that the last week of January sales continue on
current trend. Sales estimates for any period which has not yet
occurred are subject to various risks, including adverse weather,
general economic conditions, adverse effect of competition and the
general retail environment.
Andrew S. Hochberg, President of Sportmart, Inc., said, "In this
increasingly competitive operating environment, we must continually
examine our business to ensure we are achieving maximum operating
efficiencies. As a result of such examination, we have elected to
concentrate our energy and resources on our core full-line sporting
goods business. Additionally, the marts we intend to close were
both cannibalization victims of stronger performing marts in the
local area.
"Company wide sales were lower than anticipated, due to lower
than expected sales in the nine Canadian stores opened during 1995
and lower than anticipated sales of ski related merchandise,
especially on the West Coast. Also, the increased promotional
nature during the holiday season resulted in increased advertising
expenditures and lower overall gross margins. The lower gross
margins in the quarter were necessary to ensure an average mart
inventory level estimated to be $2.5 - $2.6 million at year end,
which would approximate the prior year's level. The Company will
incur a loss for the quarter, both before and after the nonrecurring
charges. While these results are disappointing, we nevertheless
remain confident that these nonrecurring charges together with the
other significant changes made within our organization since mid-
1995 should positively impact our future results."
The Company anticipates announcing audited fourth quarter and
year end results in mid-March.
"Safe Harbor" Statement under
the private Securities Litigation Reform Act of 1995: The statements
which are not historical facts contained in this release are forward
looking statements that involve risks and uncertainties, including,
but not limited to, product demand and market acceptance risks, the
effect of economic conditions, the impact of competitive products
and pricing, product development, commercialization and
technological difficulties, capacity and supply constraints or
difficulties, the results of financing efforts, actual purchases
under agreements, the effect of the Company's accounting policies,
and other risks detailed in the Company's Securities and Exchange
Commission filings.
CONTACT: Company Contact:
Tom Hendrickson,
Chief Financial Officer,
708-520-0100;
or,
Investor Relations Contact:
John Nesbett,
Lippert/Heilshorn & Assoc.,
212-838-3777 ext. 101
MIDLAND, Mich., Jan. 25, 1996 -- The following was
released by Dow Chemical Company (NYSE: DOW):
1995 Year End Highlights
(In millions, except for per share amounts)
3 Months Ended 12 Months Ended
Dec. 31 Dec. 31
1995 1994 1995 1994
Net Sales $4,594 $4,612 $20,200 $16,742
Operating Income 663 518 3,891 1,820
Income from Continuing 415 181 1,884 765
Operations
Earnings per Common Share 1.63 0.65 7.03 2.77
from Continuing Operations
Earnings Per Common Share 1.63 0.80 7.72 3.37
Review of Annual Results
The Dow Chemical Company today announced that 1995 sales totaled
a record $20.2 billion, a 21 percent increase from $16.7 billion in
1994. Increases of 4 percent in volume and 16 percent in price
contributed to the year's sales gain. Operating income for the year
more than doubled to $3.9 billion from $1.8 billion in 1994.
Earnings were $7.72 per share in 1995 versus $3.37 per share in
1994. Excluding earnings from discontinued operations and gains and
charges, earnings were $8.27 per share in 1995, up 152 percent
versus $3.28 per share in 1994.
All of Dow's business segments - Chemicals and Performance
Products, Plastics, Hydrocarbons and Energy, and Consumer
Specialties - reported higher sales in 1995 compared to 1994.
Operating income for all segments, except Hydrocarbons and Energy,
increased versus 1994. The most significant increases were in
Chemicals and Performance Products, with operating income rising 159
percent, and Plastics, with an increase of 120 percent, reflecting
solid price gains in the first half of 1995.
The 1995 earnings were impacted by a $1.24 per share investment
write down related to Dow Corning's
filing for protection under
Chapter 11 of the United States Bankruptcy code, and a gain of $0.62
per share from the sale of Dow's pharmaceutical businesses. This
year's earnings include $0.07 per share from discontinued
operations. Earnings in 1994 included a $0.46 per share charge
related to the contemplated sale of the DowBrands Personal Care
business, and a gain of $0.20 per share from the sale of Dow's
investment in the Magma Power Company. As well, in 1994 Dow
recorded a $0.25 per share after tax loss as a result of a special
charge taken by Dow Corning to cover
costs related to breast implant
litigation. The 1994 earnings include $.060 per share from
discontinued operations.
"We had a very strong year in 1995. The company set a sales
record and posted its third highest earnings," said William S.
Stavropoulos, President and CEO. "I am particularly pleased with
the performance of our growing industrial specialties, which include
Fabricated Products, Thermosets, and Performance Products.
Operating income from these businesses was $1.3 billion, a 59
percent increase over last year."
"Throughout the year we made many significant changes to enhance
our ability to create value growth and increase productivity over
the long- term," said Stavropoulos. "In addition, through a series
of strategic acquisitions and divestitures, including the sale of
Marion Merrell Dow, and moves to purchase production sites in Italy
and Argentina, we are shifting our business portfolio to focus our
resources on our core businesses. We are well positioned for
another good year."
Fourth Quarter of 1995 Results
In the fourth quarter of 1995, operating income rose 28 percent
to $663 million compared to $518 million in the same period last
year, on flat sales. Sales in the fourth quarter were $4.6 billion,
representing price gains of 2 percent and volume declines of 2
percent.
Earnings per share from continuing operations in the fourth
quarter of 1995 were $1.63 per share up 151 percent versus $0.65 per
share in the same period last year. Excluding the impact of charges
and gains, Dow's fourth quarter 1994 earnings per share from
continuing operations were $1.16.
Operating income for all of the business segments improved, with
the exception of Hydrocarbons and Energy, versus the fourth quarter
of 1994. The fourth quarter performance improvement was the result
of the continued strength of the industrial specialties businesses
which contributed 55 percent of the quarter's operating income.
Operating income for Chemicals and Performance Products was $285
million, up 40 percent versus $204 million in the fourth quarter of
1994. Higher prices for caustic soda, propylene glycol and ethylene
glycol, and lower unit manufacturing costs, were a major part of the
improved results.
Plastics reported operating income of $476 million, a gain of 14
percent compared to the same period in 1994. Lower unit
manufacturing costs, and lower costs of purchased styrene
contributed to this segment's gains.
Hydrocarbons and Energy had an operating loss of $24 million.
The decline in operating income was due primarily to the impact of
the December, 1994 expiration of two Texas power sales agreements
with Destec Energy Inc.
Consumer Specialties had an operating loss of $8 million, a $29
million improvement over the same period last year. Improved
manufacturing costs and continued productivity enhancements at
DowBrands contributed significantly to this segment's results.
Agricultural chemicals saw a volume increase of 10% overall, with
especially strong growth in Latin America and the Pacific.
Earnings in the fourth quarter of 1994 were impacted by a $0.25
per share after tax loss, recorded by Dow as a result of a special
charge taken by Dow Corning to cover
the cost of breast implant
litigation. Earnings were also impacted by a $0.46 per share charge
related to the contemplated sale of the DowBrands Personal Care
business, and a gain of $0.20 per share from the sale of Dow's
investment in the Magma Power Company.
"As forecasted, we witnessed the effect of price softening due
to inventory corrections for some basic chemicals and plastics in
the second half of the year," said Stavropoulos. "However, prices
began to stabilize by year's end. This, coupled with the
implementation of our value growth initiatives and our continued
productivity improvements, should result in another good year in
1996."
CONSOLIDATED STATEMENTS OF INCOME
The Dow Chemical Company and Subsidiaries
(Unaudited)
Three Months Ended Twelve Months Ended
Dec. 31 Dec. 31 Dec. 31 Dec. 31
In millions, except
for share amts. 1995 1994 1995 1994
-------------------------------------------------------------------
Net Sales $4,594 $4,612 $20,200 $16,742
--------------------------------------------------------------------
Operating Costs and Expenses
Cost of sales 3,227 3,361 13,337 12,131
Insurance and finance
co. operations, pretax income (26) 6 (61) (40)
Research and development expenses 199 195 808 783
Promotion and advertising expenses 103 101 416 411
Selling and administrative
expenses 419 418 1,771 1,594
Amortization of intangibles 9 13 38 43
----------------------------------------
Total operating costs
and expenses 3,931 4,094 16,309 14,922
--------------------------------------------------------------------
Operating Income 663 518 3,891 1,820
--------------------------------------------------------------------
Other Income (Expense)
Equity in earnings of
20%-50% owned companies
(Note B) 16 (54) 70 29
Interest expense (108) (81) (434) (362)
Interest income and foreign
exchange 96 29 289 98
Net loss on investments (Note B) 0 (42) (330) (42)
Sundry 27 10 43 83
----------------------------------------
Total other income (expense) 31 (138) (362) (194)
--------------------------------------------------------------------
Income before provision for taxes
on income and minority interests 694 380 3,529 1,626
Provision for taxes on income 250 165 1,442 654
Minority interests' share in income 27 32 196 200
Preferred stock dividends 2 2 7 7
--------------------------------------------------------------------
Income from continuing operations $415 $181 $1,884 $765
--------------------------------------------------------------------
Discontinued Operations (Note C):
Income from pharmaceutical business,
net of taxes on income 0 41 18 166
Gain on sale of pharmaceutical
business, net of taxes on income 0 0 169 0
--------------------------------------------------------------------
Net income available
for common stockholders $415 $222 $2,071 $931
--------------------------------------------------------------------
Average common shares
outstanding 254.9 277.3 268.2 276.1
Earnings per common share from
continuing operations $1.63 $0.65 $7.03 $2.77
Earnings per common share $1.63 $0.80 $7.72 $3.37
Common stk dividends declared
per shr $0.75 $0.65 $2.90 $2.60
--------------------------------------------------------------------
Depreciation $390 $351 $1,369 $1,224
Capital expenditures (Note D) $351 $375 $1,428 $1,183
Note A: The unaudited interim financial statements reflect all
adjustments (consisting of normal recurring accruals) which, in the
opinion of management, are considered necessary for a fair
presentation of the results for the periods covered. Certain
reclassifications of prior year amounts have been made to conform to
current year presentation. These statements should be read in
conjunction with the financial statements and notes thereto included
in the Company's Form 10-K for the year ended December 31, 1994.
Note B: On May 15, 1995, Dow Corning
Corporation announced that
it had filed for protection under Chapter 11 of the United States
Bankruptcy Code with the United States Bankruptcy Court in Bay City,
Michigan. The Company is a 50 percent shareholder in Dow Corning
Corporation.
The Company's investment in Dow Corning was $374 million at
March 31, 1995.
Dow Corning reported an after tax net loss of $167 million for
the second quarter of 1995, of which the Company's share amounted to
$83 million. Dow Corning's second quarter loss was a result of a
$221 million after tax charge taken to reflect a change in
accounting method for its contribution to a breast implant global
settlement. The change in the method of accounting from a present
value or discounted basis, to an undiscounted basis, resulted from
uncertainties arising from Dow Corning's filing for protection under
Chapter 11.
As a result of Dow Corning's Chapter 11 filing and its 1995
second quarter loss, the Company has recognized a pretax charge
against income of $330 million, has fully reserved its net
investment in Dow Corning and will not recognize its 50 percent
share of future equity earnings while Dow Corning remains in Chapter
11. The charge impacted the Company's second quarter of 1995
earnings by $1.24 per share.
Note C: On June 28, 1995, the Company completed the sale of its
197 million shares of Marion Merrell Dow to Hoechst for $5.1 billion
or $25.75 per share. In addition, subsidiaries of the Company have
completed the sale of the Company's Latin American pharmaceutical
business based in Argentina, Brazil and Mexico to Roussel Uclaf S.A.
for $133 million. These two transactions, net of taxes on income of
$382 million, increased the Company's second quarter of 1995
earnings by $169 million or 62 cents per share.
The Company's consolidated statements of income and cash flows
have been restated to reflect the pharmaceutical business as
discontinued operations. Net sales attributable to the
pharmaceutical business for the three months ended March 31, 1994,
June 30, 1994, September 30, 1994, December 31, 1994 and March 31,
1995 were $753, $808, $830, $882 and $757 million, respectively
Taxes on income from the pharmaceutical business for the same
periods were $25, $33, $30, $37 and $36 million respectively.
Note D: Capital expenditures for 1995 have increased $269
million compared to 1994 as a result of the Company investing $318
million, in the second quarter, for assets formerly leased.
CONTACT: Darlene MacKinnon of Dow Chemical, 517-636-2876/
MERCERVILLE, N.J.--Jan. 25, 1996-- Congoleum
Corp. (NYSE:CGM) announced today that it will take a $2.5 million
pre-tax charge to 1995 earnings related to its account receivable
from
Color Tile Inc.
Color Tile, a Fort Worth based floor covering retailer, filed
for bankruptcy under Chapter XI yesterday. With this charge,
Congoleum's receivable from Color Tile will be fully reserved.
Congoleum's sales to Color Tile in the last six months of 1995 had
declined to approximately half the 1994 level.
Roger S. Marcus, chairman of the board, commented, "Color Tile
has been a customer for over 30 years. While this charge is
disappointing, we value our long term relationship and are pleased
to see them taking steps to put their financial difficulties behind
them. We are hopeful these changes set the stage for returning our
level of business with Color Tile to that of previous years."
Congoleum Corp. is North America's second largest manufacturer
of resilient vinyl flooring, serving both commercial and residential
markets with products in a wide variety of designs and colors. The
company's products are used primarily by the remodeling,
replacement, commercial, manufactured home and new residential
markets. The Congoleum brand name has been associated with the
flooring industry since 1924.
Congoleum Corp. is a 44% owned subsidiary of American Biltrite
Inc. (AMEX:ABL).
CONTACT: Congoleum Corporation,
Howard N. Feist, 609/584-3586;
or,
Dewe Rogerson Inc.,
Debra Wasser/ Daniel Gray, 212/688-6840
BOCA RATON, Fla.--(BUSINESS WIRE)--Jan. 25, 1996--Levitz
Furniture Inc. (NYSE:LFI), the largest specialty retailer of
furniture in the United States, Thursday reported that sales for the
third fiscal quarter ended December amounted to $270.1 million as
compared to $294.7 million last year, a decrease of 8.3%.
For comparable stores, the decrease was 9.7%.
Net loss available to common shareholders amounted to $7,254,000
or $.25 per common share for the quarter as compared to net income
of $5,024,000 or $.17 per common share last year.
Net loss for the quarter includes an after tax charge for an
organizational restructuring of $3,200,000 or $.11 per share.
This restructuring charge is due to a major realignment of the
company's field organization management structure eliminating the
final two geographic divisions in the company. The result
centralized all buying, inventory management, and advertising at the
company's home office in Boca Raton. According to Michael Bozic,
chairman and chief executive officer, "This new structure will
result in clear accountability in our buying and selling
organizations and will provide for only one layer of management
between our stores and a company president." Sixty-five positions
including five senior executives were eliminated.
For the nine months ended Dec. 31, 1995, sales amounted to
$763.2 million as compared to $802.1 million last year, a decrease
of 4.9%. For comparable stores, the decrease was 9.6%.
Net loss for common stockholders amounted to $15,858,000 or $.54
per share as compared to net income of $7,345,000 or $.25 per common
share last year.
Net loss for the nine months includes an after tax charge of
$5,760,000 for two organizational restructurings or $.19 per share
which consists of a previously disclosed after tax charge of
$2,560,000 for the quarter ended Sept. 30, 1995 and the above
described after tax charge of $3,200,000 for the quarter ended Dec.
31, 1995.
LEVITZ FURNITURE INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Dollars in thousands except share data)
(Unaudited)
Three Months Ended Nine Months Ended
Dec. 31, Dec. 31,
1995 1994 1995 1994
Net sales $270,117 $294,682 $763,242 $802,102
Costs and expenses:
Cost of sales 149,987 156,896 412,168 426,312
SG&A expenses 106,974 110,513 306,832 305,055
Restructuring exp. 5,000 - 9,000 -
Depreciation and
amortization 7,339 7,294 22,084 21,160
269,300 274,703 750,084 752,527
Operating income 817 19,979 13,158 49,575
Interest expense, net 12,150 11,996 37,935 35,275
Income (loss) before
income taxes (11,333) 7,983 (24,777) 14,300
Income tax expense
(benefit) (4,079) 2,959 (8,919) 5,299
Net income (loss)
before extraordinary
items (7,254) 5,024 (15,858) 9,001
Extraordinary items,
net of tax benefit
of $983 - - - (1,566)
Net income (loss) $(7,254) $5,024 $(15,858) $7,435
Earnings (loss) per
common share:
Income (loss) before
extraordinary items $(0.25) $0.17 $(0.54) $0.30
Extraordinary items - - - (0.05)
Net income (loss)
per common share $(0.25) $0.17 $(0.54) $0.25
Weighted average
number of
common shares
outstanding 29,620,628 29,620,628 29,620,628 29,620,628
LEVITZ FURNITURE INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(Dollars in thousands)
Dec. 31, March 31,
1995 1995
ASSETS (Unaudited)
CURRENT ASSETS:
Cash and cash equivalents $ 13,685 $ 6,301
Receivables 34,256 33,707
Inventories 136,359 155,008
Deposits and prepaid expenses 5,154 7,202
Income taxes receivable 2,624 3,148
Total current assets 192,078 205,366
PROPERTY AND EQUIPMENT, net 227,772 249,152
PROPERTY UNDER CAPITAL LEASES, net 137,726 145,759
OTHER ASSETS:
Intangible leasehold interests 17,466 18,748
Deferred financing fees 7,439 8,955
Goodwill 18,821 19,208
Other 3,923 3,986
Total other assets 47,649 50,897
$605,225 $651,174
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES:
Cash overdrafts $ 27,641 $ 17,303
Current portion of long-term debt 9,260 13,498
Current portion of obligations under
capital leases 4,972 5,184
Accounts payable, trade 52,863 57,613
Accrued expenses and other liabilities 75,812 70,885
Deferred income taxes 2,812 5,048
Total current liabilities 173,360 169,531
LONG-TERM DEBT, net of current portion 323,559 348,908
OBLIGATIONS UNDER CAPITAL LEASES, net of
current portion 84,075 87,767
OTHER NONCURRENT LIABILITIES 26,302 24,916
DEFERRED INCOME TAXES 57,961 64,329
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' DEFICIT:
Common stock, at par value 303 296
Capital in excess of par 212,213 210,039
Deferred compensation (2,078) -
Retained earnings (deficit) (270,470) (254,612)
Total stockholders' deficit (60,032) (44,277)
$605,225 $651,174
EL SEGUNDO, Calif., Jan. 25, 1996 -- Unocal
Corporation
(NYSE: UCL) today reported fourth-quarter 1995 net earnings of $49
million, or 16 cents per common share, compared with a loss of $68
million, or 32 cents per common share, in the same period a year
ago. Fourth quarter revenues were $2.22 billion, compared with
$1.98 billion a year ago.
Earnings from operations for the fourth quarter 1995, excluding
special items (detailed in the attached tables), were $92 million,
or 34 cents per common share. This compares with operating earnings
of $86 million, or 32 cents per common share, for the fourth quarter
1994.
"Our fourth quarter earnings benefited from a 5 percent increase
in domestic natural gas production, record natural gas production
levels in Thailand in late November and early December, and higher
refinery production of light oil products," said Roger C. Beach,
Unocal's chairman and chief executive officer. "The effect of the
increased gas production was magnified by stronger worldwide natural
gas prices."
The gain in natural gas prices in the quarter had the greatest
impact in the U.S. Gulf Coast, a strategic focus area for Unocal.
Approximately 40 percent of Unocal's worldwide natural gas
production comes from this area.
Beach added that the gains in natural gas production were more
than offset by continuing declines in U.S. and foreign crude oil
production. "In the U.S., the decline in crude oil production
reflects the sale of non-strategic domestic properties and natural
gas production declines in California and the Central U.S.," he
said.
For 1996, the company expects domestic natural gas production to
be lower, reflecting the expected sale of its California upstream
operations. Increases in Unocal's foreign gas production,
principally in Thailand, should more than offset the decline in
domestic natural gas production.
Unocal's 76 Products Company continued to show improvements in
earnings and cash flow in the quarter. The earnings performance was
helped in part by higher production of gasoline, jet fuel and diesel
at the company's refineries.
The company's agricultural products business unit continued its
strong performance in the fourth quarter with higher earnings from
nitrogen-based fertilizers sales in the U.S. West Coast and Pacific
Rim. Higher commodity prices significantly enhanced margins for the
company's agricultural products.
The company's reported earnings for the fourth quarter included
a non-cash, after-tax charge of $53 million (detailed in special
adjustments table) for adoption of Statement of Financial Accounting
Standards No. 121. This new accounting standard, "Accounting for
the Impairment of Long-Lived Assets and for Long-Lived Assets to be
Disposed of," requires that long-lived assets with book values that
cannot be recovered by estimated future undiscounted cash flows be
written down to fair value. The impairment provision in the fourth
quarter was related principally to 1995 reserve write-downs for oil
and gas properties in the U.S., Canada and The Netherlands.
The reported fourth quarter earnings also included one-time cash
benefits from a bankruptcy settlement with Columbia Gas Transmission
Corp. and the sale of oil and gas properties in Wyoming.
For the full year 1995, net earnings were $260 million, or 91
cents per common share. This compares with a loss of $153 million,
or 78 cents per common share, for 1994. Full-year revenues were
$8.43 billion, up from $7.97 billion last year.
Earnings from operations for 1995, excluding special items
(detailed in the attached tables), were $297 million, or $1.06 per
common share. This compares with adjusted earnings of $300 million,
or $1.09 per common share, in 1994.
UNOCAL CORPORATION
CONDENSED CONSOLIDATED EARNINGS STATEMENT
(UNAUDITED)
For the Three Months For the Twelve Months
Dollars in millions Ended December 31 Ended December 31
except per share amounts 1995 1994 1995 1994
Total revenues(a) $2,224 $1,984 $8,425 $7,965
Costs and other
deductions(a) 2,123 2,057 7,962 7,671
Earnings before
income taxes 101 (73) 463 294
Income taxes 52 (5) 203 170
Earnings (loss) before
cumulative effect of
accounting change 49 (68) 260 124
Cumulative effect of
accounting change - - - (277)
Net earnings (loss) $49 $(68) $260 $(153)
Dividends on preferred stock 9 9 36 36
Net earnings (loss)
applicable to common shares $40 $(77) $224 $(189)
Earnings (loss)
per common share:(b)
Before cumulative effect
of accounting change $0.16 $(0.32) $0.91 $0.36
Cumulative effect of
accounting change - - - (1.14)
Net earnings (loss) $0.16 $(0.32) $0.91 $(0.78)
(a) Includes consumer
excise taxes of $233 $207 $898 $893
(b) Based on weighted average
common shares outstanding
(in millions) 247 244 246 243
CONDENSED CONSOLIDATED BALANCE SHEET
(UNAUDITED)
Dec. 31 Dec. 31
Millions of dollars 1995(a) 1994
Assets
Cash and cash equivalents $94 $148
Other current assets 1,482 1,380
Investments and long-term receivables 1,101 895
Properties - net 7,109 6,823
Other assets 105 91
Total assets $9,891 $9,337
Liabilities
Current Liabilities $1,316 $1,257
Long-term debt and
capital lease obligations 3,698 3,461
Deferred Income taxes 722 643
Other deferred credits and liabilities 1,225 1,161
Total liabilities 6,961 6,522
Stockholders' Equity 2,930 2,815
Total liabilities and
stockholders' equity $9,891 $9,337
(a) Certain amounts have been reclassified to conform to
requirements of SFAS No. 119, "Disclosure about Derivative Financial
Instruments and Fair Value of Financial Instruments".
UNOCAL CORPORATION
CONDENSED CONSOLIDATED CASH FLOWS
(UNAUDITED)
For the Three Months For the Twelve Months
Ended December 31 Ended December 31
Millions of dollars 1995 1994 1995 1994
CASH FLOWS FROM
OPERATING ACTIVITIES
Cash flow from operations $373 $222 $1,235 $1,256
Working capital and
other changes related
to operations 228 222 42 43
Net cash provided by
operating activities 601 444 1,277 1,299
CASH FLOWS FROM
INVESTING ACTIVITIES
Capital expenditures
(includes dry hole costs) (492) (433) (1,459) (1,272)
Proceeds from asset sales 74 20 204 156
Net cash used in
investing activities (418) (413) (1,255) (1,116)
CASH FLOWS FROM
FINANCING ACTIVITIES
Net increase (decrease) in
long-term debt and capital
lease obligations (194) (33) 111 (56)
Dividends paid (58) (57) (232) (229)
Other (5) 14 45 45
Net cash used in
financing activities (257) (76) (76) (240)
Decrease in cash and
cash equivalents (74) (45) (54) (57)
Cash and cash equivalents
at beginning of period 168 193 148 205
Cash and cash equivalents
at end of period $94 $148 $94 $148
SELECTED FINANCIAL DATA
For the Three Months For the Twelve Months
Ended December 31 Ended December 31
1995 1994 1995 1994
Exploration expense
Oil & Gas
United States $13 $9 $39 $24
Foreign 39 27 96 89
Geothermal 2 1 4 3
Total $54 $37 $139 $116
Dry hole costs
Oil & Gas
United States $8 $8 $36 $45
Foreign 2 10 21 34
Geothermal 0 2 4 5
Total $10 $20 $61 $84
Depreciation, Depletion
& Amortization $318 $218 $1,022 $947
UNOCAL CORPORATION
OPERATING HIGHLIGHTS
(UNAUDITED)
For the Three Months For the Twelve Months
Ended December 31 Ended December 31
1995 1994 1995 1994
Net daily production(a)
Crude oil and condensate
(thousand barrels daily):
United States 121.0 131.6 125.1 137.3
Foreign:
Far East 86.4 92.5 85.1 87.1
Other 28.2 32.6 30.2 35.4
Total Foreign 114.6 125.1 115.3 122.5
Worldwide 235.6 256.7 240.4 259.8
Natural gas (million
cubic feet daily):
United States 1,078 1,029 1,103 1,095
Foreign:
Far East 643 675 609 623
Other 67 29 53 48
Total Foreign 710 704 662 671
Worldwide 1,788 1,733 1,765 1,766
Natural gas liquids
(thousand barrels daily) 20.4 23.2 21.0 21.9
Geothermal (million
kilowatt-hours daily) 16.7 19.2 16.1 20.5
Input to crude oil
processing units (thousand
barrels daily)(b) 233 233 213 231
Sales of Petroleum
products (thousand barrels
daily)(b) 287 247 259 238
Average sales prices
Crude oil and condensate
(per barrel):
United States $14.59 $13.80 $15.03 $13.06
Foreign:
Far East $16.02 $14.78 $16.09 $14.55
Other $15.23 $15.35 $15.69 $14.36
Total Foreign $15.75 $14.97 $15.95 $14.48
Worldwide $15.07 $14.32 $15.40 $13.63
Natural gas (per mcf):
United States $1.75 $1.57 $1.56 $1.78
Foreign:
Far East $2.13 $1.94 $2.04 $2.01
Other $1.82 $1.72 $1.39 $1.76
Total Foreign $2.10 $1.93 $1.98 $1.99
Worldwide $1.89 $1.71 $1.72 $1.86
(a) Includes production sharing agreements on a gross basis.
(b) Restated 1994 to exclude 50% of the volumes of The UNO-VEN Co.
UNOCAL CORPORATION
EARNINGS BY BUSINESS SEGMENT
(Unaudited)
4th Quarter of 1995 4th Quarter of
Millions of dollars Before-tax After-tax Before-tax After-tax
Petroleum
Exploration & Production:
United States $153 $95 $84 $52
Foreign 29 18 112 51
Refining & Marketing:
76 Products Company 23 16 (8) (5)
Geothermal &
Power Operations 8 5 14 8
Diversified Businesses:
Agricultural Products 25 19 16 12
Carbon & Minerals 17 12 14 9
Pipelines 19 16 15 12
Other (2) (2) 9 6
Corporate & Unallocated
Administrative & General (36) (27) (53) (33)
Interest expense - net (58) (38) (60) (44)
Environmental &
Litigation expense (56) (35) (218) (137)
Other (21) (30) 2 1
Earnings before
cumulative effect of
accounting change 101 49 (73) (68)
Cumulative effect of
accounting change - - - -
Total $101 $49 $(73) $(68)
The Exploration & Production segment is engaged in the
exploration for, the production and marketing of crude oil,
condensate, natural gas liquids and natural gas.
Refining & Marketing:
76 Products Company -- principally is responsible for the
company's West Coast petroleum refining operations, marketing and
transportation of refined petroleum products.
The Geothermal & Power segment is involved in the exploration
for, and the production and sale of geothermal resources.
Diversified Businesses:
Agricultural Products -- manufactures and markets nitrogen-based
fertilizers for wholesale markets.
Carbon and Minerals - produces and markets petroleum cokes and
specialty minerals.
Pipelines - principally includes equity earnings from affiliated
pipeline companies.
Other - includes the development and sale of real estate assets
and equity earnings from a refining and marketing joint venture.
..Effective in the fourth quarter 1995, certain expenses
previously reported under Corporate and Unallocated have been
allocated to the operating segments. Prior Year segment earnings
were restated to conform to the 1995 allocation.
UNOCAL CORPORATION
1995 EARNINGS NEWS RELEASE SUPPLEMENT
SPECIAL ADJUSTMENTS
(UNAUDITED)
Dollars in millions
except per share 4th Quarter of 1995 4th Quarter of 1994
amounts Before-tax After-tax Before-tax After-tax
Reported earnings (loss) $101 $49 $(73) $(68)
Less: Special items
Exploration & Production
United States
Asset Sales 44 27 (7) (5)
FAS 121 Impairment (44) (27) - -
Columbia Gas Settlement 55 34 - -
Foreign
FAS 121 Impairment (43) (26) - -
76 Products
Asset Sales 1 1 - -
Litigation - - (2) (2)
Write-down of assets - - (23) (14)
Diversified Businesses
Other
Asset Sales 4 2 - -
Write-down of assets (3) (2) - -
Corporate & Unallocated
Asset Sales 5 3 - -
Environmental provision (10) (6) (152) (94)
Litigation provision (33) (21) (38) (24)
Write-down of assets - - (14) (9)
Deferred tax adjustment - - - -
Mesa settlement - - - -
Other (14) (28) (10) (6)
Total special items (38) (43) (246) (154)
Adjusted earnings $139 $92 $173 $86
Less: Dividends on
preferred stock 9 9
Adjusted net earnings
applicable to common shares 83 77
Adjusted net earnings
per common share $0.34 $0.32
UNOCAL CORPORATION
EARNINGS BY BUSINESS SEGMENT EXCLUDING SPECIAL ADJUSTMENTS
(UNAUDITED)
4th Quarter of 1995 4th Quarter of 1994
Millions of dollars Before-tax After-tax Before-tax After-tax
Petroleum
Exploration & Production:
United States $98 $61 $91 $57
Foreign 72 44 112 51
Refining & Marketing:
76 Products Company 22 15 17 11
Geothermal &
Power Operations 8 5 14 8
Diversified Businesses:
Agricultural Products 25 19 16 12
Carbon & Minerals 17 12 14 9
Pipelines 19 16 15 12
Other (3) (2) 9 6
Corporate & Unallocated
Administrative & General (36) (27) (28) (18)
Interest expense - net (58) (38) (60) (44)
Environmental &
Litigation expense (13) (8) (28) (19)
Other (12) (5) 1 1
Total $139 $92 $173 $86
UNOCAL CORPORATION
EARNINGS BY BUSINESS SEGMENT
(Unaudited)
For Twelve Months For Twelve Months
Millions of Ended December 31, 1995 Ended December 31, 1994
dollars Before-tax After-tax Before-tax After-tax
Petroleum
Exploration & Production:
United States $386 $240 $289 $180
Foreign 330 181 407 198
Refining & Marketing:
76 Products Company (12) 11 23 14
Geothermal &
Power Operations 47 26 57 32
Diversified Businesses:
Agricultural Products 113 74 42 29
Carbon & Minerals 72 52 62 42
Pipelines 82 66 70 56
Other 12 7 22 14
Corporate & Unallocated
Administrative &
General (127) (84) (137) (85)
Interest expense - net (257) (178) (255) (174)
Environmental &
Litigation expense (148) (92) (293) (186)
Other (35) (43) 6 4
Earnings before
cumulative effect of
accounting change 463 260 293 124
Cumulative effect of
accounting change - - (447) (277)
Total $463 $260 $(154) $(153)
UNOCAL CORP.
1995 EARNINGS NEWS RELEASE SUPPLEMENT
SPECIAL ADJUSTMENTS
(UNAUDITED)
Dollars in millions
except per share For the Twelve Months For the Twelve Months
amounts Ended December 31, 1995 Ended December 31, 1994
Before-tax After-tax Before-tax After-tax
Reported earnings
(loss) $463 $260 $(154) $(153)
Less: Special items
Exploration & Production
United States
Asset Sales 52 32 (20) (13)
Provision for
abandonment and
remediation of the
Guadalupe oil field - - (26) (16)
Write-down of assets(13) (8) (24) (15)
FAS 121 Impairment (44) (27)
Florida and Alaska
OCS settlement 29 18 - -
Columbia Gas
settlement 55 34 - -
Foreign
Asset Sales 6 3 23 16
FAS 121 Impairment (43) (26)
76 Products
Asset Sales 1 1 1 1
Litigation - - (2) (2)
Environmental - - (4) (2)
Write-down of assets - - (32) (20)
Geothermal
Asset Sales 9 7 - -
Diversified Businesses
Agricultural Products
Asset Sales 6 4 3 2
Other
Asset Sales 6 3 - -
Write-down of assets (3) (2) - -
Corporate & Unallocated
Asset Sales 34 21 3 2
Environmental
provision (41) (26) (156) (97)
Litigation provision(60) (37) (65) (41)
Write-down of assets (3) (2) (14) (9)
Mesa settlement - - 38 24
Other (14) (32) (10) (6)
Cumulative effect of
accounting change - - (447) (277)
Total special items (23) (37) (732) (453)
Adjusted earnings $486 $297 $578 $300
Less: Dividends on
preferred stock 36 36
Adjusted net earnings
applicable to common shares 261 264
Adjusted net earnings
per common share $1.06 $1.09
UNOCAL CORPORATION
EARNINGS BY BUSINESS SEGMENT EXCLUDING SPECIAL ADJUSTMENTS
(UNAUDITED)
For Twelve Months For Twelve Months
Millions of Ended December 31, 1995 Ended December 31, 1994
dollars Before-tax After-tax Before-tax After-tax
Petroleum
Exploration & Production:
United States $307 $191 $359 $224
Foreign 367 204 384 182
Refining & Marketing:
76 Products Company (13) 10 60 37
Geothermal & Power
Operations 38 19 57 32
Diversified Businesses:
Agricultural Products 107 70 39 27
Carbon & Minerals 72 52 62 42
Pipelines 82 66 70 56
Other 9 6 22 14
Corporate & Unallocated
Administrative &
General (127) (84) (112) (70)
Interest
expense - net (257) (178) (255) (174)
Environmental &
Litigation expense (47) (29) (72) (48)
Other (52) (30) (36) (22)
Total $486 $297 $578 $300
WILTON, Conn.--Jan. 25, 1996--Dun & Bradstreet
today reported a 10.6 percent increase in 1995 revenue to $5.4
billion, driven by strong revenue performances at IMS International,
Nielsen Media Research, Gartner Group, A.C. Nielsen and D&B
Information Services. Underlying revenue grew by 7.5 percent.
Full-year 1995 earnings per share increased by 2.7 percent to
$3.80, up from $3.70 in 1994, excluding the previously announced
fourth-quarter 1995 one-time pretax charge of $448 million, or $1.91
per share, in connection with the company's plan to split into three
public corporations. Including the charge, D&B reported full-year
earnings per share of $1.89.
"This is an exciting time for Dun & Bradstreet," said Robert E.
Weissman, chairman and chief executive officer. "We exceeded our
1995 revenue growth targets and took steps to implement a sweeping
strategy to increase shareholder value by transforming D&B into
three publicly traded, global corporations."
In the fourth-quarter, D&B's reported revenue increased by 10.4
percent to $1.55 billion from $1.41 billion a year ago, driven by
excellent revenue growth at IMS International, Moody's Investors
Service and Gartner Group. Underlying revenue also was up 10.4
percent in the fourth quarter.
Fourth-quarter consolidated earnings per share were up 4.9
percent to $1.29 from $1.23, excluding the charge. Including the
charge, D&B reported a loss of 62 cents a share for the quarter.
(See attached tables.)
THE DUN & BRADSTREET CORPORATION
CONSOLIDATED STATEMENT OF INCOME
(In millions except per share amounts)
Three Months Ended
December 31 Percent
--------------------- Change
1995 1994 -------
------- ------
Operating Revenue $1,554.7 $1,408.4 10.4
Operating Costs,
Selling and
Administrative Expenses 1,686.4(A) 1,107.2 52.3
---------- ---------
Operating (Loss) Income (131.7) 301.2 --
Interest Expense - Net 1.1 3.7 (70.3)
Other Expense - Net 13.3 (B) 4.9 (B) 171.4
-------- ---------
Non-Operating Expense
- Net 14.4 8.6 67.4
(Loss) Income Before
Income Tax (Benefit)
Provision (146.1) 292.6 --
Income Tax (Benefit)
Provision (40.5) 83.1 --
------- -------
Net (Loss) Income $(105.8) $209.5 --
------- -------
(Loss) Earnings Per
Share of Common Stock ($0.62) $1.23 --
------ ------
Dividends Paid Per Share of
Common Stock $0.66 $0.65 1.5
------ ------
Average Number of
Shares Outstanding 169.4 169.9 --
Effective Tax Rate 27.7% 28.4% (2.5)
(A) Includes a one-time pre-tax charge of $448 million for costs
principally associated with the Company's plan to reorganize into
three
independent companies focused on high-growth information markets;
financial-information services; and consumer-product market
research. The charge reflects a loss in connection with the
adoption of SFAS No. 121 related to the revaluation of certain
assets due principally to the reorganization, a provision for
postemployment benefits and an accrual for contractual obligations
impacted by the plan. Excluding the effect of the charge, earnings
per share was $1.29. Also includes gains totalling $15 million
related to divestitures and a $24 million one-time decline in
employee medical benefits costs.
(B) Includes a $6 million benefit in 1995 and a $10 million benefit
in 1994 from tax sharing agreements with an Alaska Native
Corporation.
THE DUN & BRADSTREET CORPORATION
CONSOLIDATED STATEMENT OF INCOME
(In millions except per share amounts)
Twelve Months Ended
December 31 Percent
----------------- Change
1995 1994 ------
------ -------
Operating Revenue $5,415.1 $4,895.7 10.6
Operating Costs,
Selling and
Administrative Expenses 4,893.3 (A) 3,970.2 (B) 23.3
-------- -------
Operating Income 521.8 925.5 (43.6)
Interest Expense - Net 20.9 7.8 167.9
Other Expense - Net 57.2 (C) 38.5 (C) 48.6
------ -------
Non-Operating Expense - Net 78.1 46.3 68.7
Income Before Provision
for Taxes 443.7 879.2 (49.5)
Provision for Income Taxes 122.9 249.7 (50.8)
------ -------
Net Income $320.8 $629.5 (49.0)
------ -------
Earnings Per Share of
Common Stock $1.89 $3.70 (48.9)
-------- ------
Dividends Paid Per Share
of Common Stock $2.63 $2.56 2.7
-------- --------
Average Number of
Shares Outstanding 169.5 169.9 --
Effective Tax Rate 27.7% 28.4% (2.5)
(A) Includes a one-time pre-tax charge of $448 million in the fourth
quarter for costs principally associated with the Company's plan to
reorganize into three independent companies focused on high-growth
information markets; financial-information services; and consumer-
product market research. The charge reflects a loss in connection
with the adoption of SFAS No. 121 related to the revaluation of
certain assets due principally to the reorganization, a provision
for postemployment benefits and an accrual for contractual
obligations impacted by the plan. Excluding the effect of the
charge, earnings per share was $3.80. Also includes (1) in the
fourth quarter, gains totalling $15 million related to divestitures
and a $24 million one-time decline in employee medical benefits
costs, (2) a $90 million gain in the third quarter on the sale of
Interactive Data Corp., offset by operating charges related to
restructuring expense of $13 million and postemployment benefits
expense of $77 million, and (3) a $28 million gain in the first
quarter from the sale of warrants received in connection with the
divestiture of Donnelley Marketing in 1991.
(B) Includes $36 million gain from sale of the assets of DunsNet
and $39 million of charges principally for the revaluation of
computer software and other intangible assets. In addition, a
change in eligibility requirements for the company's postretirement
medical plan resulted in a curtailment gain of $26 million, which
was largely offset by a substantial increase in spending for new
product development. Also includes $56 million of restructuring
gains from the sale of Thomson Directories and the Machinery
Information Division of Dataquest, offset by $56 million of
restructuring expense.
(C) Includes a $6 million benefit in 1995 and a $10 million benefit
in 1994 from tax sharing agreements with an Alaska Native
Corporation.
DETAILED COMMENTS ON D&B'S
FOURTH-QUARTER SEGMENT RESULTS
Marketing Information Services reported an 11.6 percent increase
in fourth-quarter revenue to $675.6 million from $605.3 million a
year ago. Excluding the impact of the weaker dollar and
acquisitions, revenue growth for the segment was 10 percent. IMS
International reported fourth-quarter revenue of $252 million, up 24
percent on a reported basis and up 18 percent on an underlying
basis. Revenue growth for the quarter was boosted by strong sales of
new products and client winbacks in the U.S. A.C. Nielsen's
reported fourth-quarter revenue increased by 4 percent to $348
million, and was up 2 percent on an underlying basis, reflecting in
part the impact in Europe of weak economic conditions on customer
expenditures and the transition to scanning data. Nielsen Media
Research posted strong underlying revenue growth in the fourth
quarter, spurred by a robust advertising economy, additional
broadcast and cable network subscribers, and new services, such as
local Hispanic audience measurement.
FOURTH-QUARTER 1995 SEGMENT PERFORMANCE
(Dollars in millions)
Fourth Quarter 1995
Operating Reported Underlying(a)
Segment Revenue % Change %
Change
Marketing Information Services $675.6 11.6%
10%
Risk Management and Business
Marketing Information Services $471.0 7.8%
12%
Software Services $137.7 16.6%
12%
Directory Information Services $152.2 -2.6%
-3%
Other Business Services $118.3 28.8%
30%
Risk Management and Business Marketing Information Services
reported fourth-quarter revenue growth of 7.8 percent to $471.0
million from $436.9 million a year ago. Excluding the impact of the
weaker dollar, acquisitions and divestitures, revenue growth for the
segment was 12 percent. Moody's Investors Service continued to
strengthen in the fourth-quarter, posting an excellent gain in
reported revenue, driven by increased volume in the corporate-bond
market. Dun & Bradstreet Information Services (DBIS) reported
revenue of $385 million, up 8 percent from last year and up 7
percent on an underlying basis. DBIS U.S. posted a 6 percent
gain in fourth-quarter reported revenue to $200 million, driven mainly
by new products, such as Credit Scoring, Risk Assessment Manager and
Database Marketing, as well as by an increase in new customers
targeted by the unit's revamped sales force. DBIS Europe had solid
fourth-quarter revenue growth on both a reported and an underlying
basis.
Software Services reported a 16.6 percent increase in
fourth-quarter revenue to $137.7 million from $118.0 million a year
ago. Excluding the impact of the dollar and the acquisition of
Pilot Software, Software Services had double-digit growth in
underlying revenue. D&B Software achieved a solid increase in underlying
fourth-quarter revenue, as strong client/server product sales met
expectations.
Directory Information Services reported a 2.6 percent decrease in
fourth-quarter revenue to $152.2 million from $156.3 million a year
ago, as a result of previously disclosed contractual changes.
Underlying fourth-quarter sales of Directory Information Services
yellow pages directories were up modestly.
Other Business Services reported fourth-quarter revenue of $118.3
million, up 28.8 percent from $91.8 million a year ago. Gartner
Group reported excellent growth in fourth-quarter revenue. NCH
Promotional Services reported a slight increase in fourth-quarter
revenue.
DETAILED COMMENTS ON D&B'S
FULL-YEAR 1995 SEGMENT RESULTS
The following comments and table reflect 1995 and 1994
business-segment operating income excluding the impact of gains
related to divestitures and charges related to restructuring and
other one-time actions.
Marketing Information Services reported a 16.9 percent increase
in 1995 revenue to $2.39 billion from $2.04 billion in 1994.
Excluding the impact of a weaker U.S. dollar and acquisitions,
revenue growth for the segment was 9 percent. IMS International
reported 1995 revenue of $819 million, up 18 percent on a reported
basis, and 11 percent on an underlying basis. A.C. Nielsen
reported 1995 revenue of $1.29 billion, up 17 percent on a reported
basis, and up 6 percent on an underlying basis. Nielsen Media
Research posted strong underlying revenue growth for the year.
Operating income for the segment increased by 22 percent to $337.2
million from $277.0 million a year ago.
1995 SEGMENT PERFORMANCE
(Dollars in millions)
Operating
Revenue 1995 Income(a)
1995 % Change Operating % Change
Segment Revenue vs. 1994 Income(a) vs.
1994
Marketing Information
Services $2,388.1 16.9% $337.2
21.7%
Risk Management and
Business Marketing
Information Services $1,734.1 8.0% $405.1
-9.0%
Software Services $457.4 12.7% $30.3
--
Directory Information
Services $423.7 -3.7% $204.0
-4.7%
Other Business Services $411.9 2.7% $63.8
22.0%
Risk Management and Business Marketing Information Services
reported 1995 revenue growth of 8.0 percent to $1.73 billion from
$1.61 billion in 1994. Excluding the impact of the weaker dollar,
acquisitions and divestitures, segment revenue increased by 6
percent. Moody's reported a moderate increase in 1995 revenue,
principally due to weakness in corporate-bond volumes and public-
debt refundings in the first half of the year. Dun & Bradstreet
Information Services' (DBIS) 1995 revenue was up 10.7 percent to
$1.39 billion on a reported basis, and rose 6 percent on an
underlying basis. Revenue at DBIS U.S. increased 6 percent to $766
million. While DBIS Europe reported 20 percent growth in revenue
for the year, underlying revenue was up modestly due to weakness in
several countries. Operating income for the segment decreased by 9
percent to $405.1 million from $445.2 million a year ago, due in
part to major insolvencies that resulted in increased incurred
losses of about $28 million at American Credit Indemnity, planned for
divestiture in 1996. Segment profits in 1995 also were dampened by
weakness in DBIS's international operations, including the impact of
integrating certain acquisitions and the effects of economic
conditions in Latin America.
Software Services reported a 12.7 percent increase in 1995
revenue to $457.4 million from $405.9 million a year ago. Excluding
the impact of the dollar and the acquisition of Pilot Software,
underlying revenue growth was 5 percent. D&B Software posted a gain
in revenue for the year, reflecting strong sales of client/server
software. Client/server revenue increased by 150 percent in 1995,
exceeding $100 million for the year. The Software Services segment
posted operating income of $30.3 million, compared with a slight
loss in 1994.
Directory Information Services reported a 3.7 percent decrease in
1995 revenue to $423.7 million from $440.1 million a year ago, as a
result of previously disclosed contractual changes. Underlying 1995
sales of Directory Information Services were up modestly. Operating
income for the segment decreased by 5 percent to $204.0 million.
Other Business Services reported 1995 revenue of $411.9 million,
up 2.7 percent from $401.1 million in 1994. Underlying segment
revenue increased by 25 percent. Gartner Group reported excellent
revenue growth in 1995. NCH Promotional Services reported a slight
decrease in 1995 revenue. Operating income for the segment
increased by 22 percent to $63.8 million, excluding the impact of
the third-quarter 1994 gain on the sale of the assets of DunsNet.
The Dun & Bradstreet Corporation is the world's largest marketer
of information, software and services for business decision making,
with worldwide revenue of $5.4 billion in 1995.
CONTACT: The Dun & Bradstreet Corporation, Wilton
Reid H. Gearhart, 203-834-4275
CHICAGO, Jan. 25, 1996 --USG
CORPORATION (NYSE: USG)
today reported 1995 net sales of $2,444 million and EBITDA of $417
million. These results compare favorably with 1994 net sales of
$2,290 million and EBITDA of $325 million. For the fourth quarter
of 1995, USG reported net sales of $602 million and EBITDA of $102
million, up slightly and 52 percent, respectively, over the
comparable 1994 period. (1995 fourth-quarter and full-year results
include a $30 million pretax ($24 million after-tax) charge in
connection with USG's previously announced exit of the insulation
manufacturing business. This primarily noncash charge is included in
"Other expense, net" in the Consolidated Statement of Earnings and
is not reflected in USG's EBITDA figures discussed above. 1994
fourth-quarter and full-year cost of products sold and EBITDA
included a $30 million charge for previously announced asbestos
litigation settlements. Excluding the 1994 asbestos charge, 1995
EBITDA increased 17 percent over 1994.)
Commenting on USG's 1995 performance, USG Chairman Eugene B.
Connolly said, "Demand for our products remained strong in 1995.
Our businesses set shipment records in key product groups including
ceiling tile, DUROCK cement board and SHEETROCK brand joint
compounds. The new residential construction market was down in 1995,
but this drop was offset by growth in the repair and remodel and
nonresidential construction markets, which also drive sales of USG
products.
"In 1995, we continued to focus on increasing shareholder value
through strategic capital investments in our core businesses and
debt reduction geared to attaining investment grade status," added
Connolly. "We invested $147 million in our core businesses and
reduced debt by $223 million." Of this debt reduction, $116 million
was attributable to 1995 cash flow, and the balance relates to the
1994 cash sweep under the corporation's former credit agreement.
Total debt at the end of 1995 was $926 million.
Capital investments completed in 1995 or targeted for completion
in 1996 include wallboard line speed-ups, which added 600 million
square feet of capacity and reduced manufacturing costs; paper mill
stock- cleaning equipment, which will reduce paper costs; various
other cost reduction projects; expansion of USG Interiors, Inc.'s
Greenville, Miss., ceiling tile plant; and introduction of new
products.
Debt reduction, combined with improved operating performance,
resulted in credit rating upgrades from both Standard & Poor's
Ratings Group and Moody's Investor Services during 1995. Annual
interest expense was further reduced in the third quarter of 1995
through a debt refinancing that included a new bank credit facility,
the issuance of $150 million of 8 1/2 percent senior notes due 2005
and the retirement of the remaining balance of USG's 10 1/4 percent
senior notes. In addition, the new bank credit facility provides
greater financial flexibility for strategic growth.
Connolly remarked, "We are bullish about our industry's 1996
prospects. We believe that the U.S. will experience an elongated
business cycle driven by favorable interest rates, as well as good
consumer confidence and home affordability. This should result in
modest growth in the housing market and continued growth in repair
and remodel activity and nonresidential construction."
North American Gypsum
USG's North American gypsum business reported 1995 net sales of
$1,924 million and EBITDA of $386 million, increases of 8 percent
and 27 percent, respectively, over 1994.
Net sales by United States Gypsum Company of $1,309 million and
EBITDA of $327 million represent increases of 8 percent and 32
percent, respectively, over 1994. Higher wallboard selling prices,
partially offset by slightly lower shipments of gypsum wallboard,
were primarily responsible for the higher sales, while higher waste
paper furnish prices negatively affected EBITDA by about $28
million. EBITDA in 1994 included a special one-time charge of $30
million for asbestos litigation settlements. Excluding this charge,
U.S. Gypsum's 1995 EBITDA increased 18 percent over 1994.
Shipments of gypsum wallboard by U.S. Gypsum were 7.6 billion
square feet, slightly below 1994's record of 7.7 billion square
feet, and 1995 capacity utilization was 92 percent. U.S. Gypsum's
average 1995 selling price of $110.44 per thousand square feet was
$10.36, or 10 percent, higher than 1994's average price of $100.08.
U.S. Gypsum's wallboard plants ran at 93 percent capacity in the
fourth quarter of 1995, and its average wallboard selling price of
$107.70 per thousand square feet was slightly higher than in the
fourth quarter of 1994.
L&W Supply Corporation, USG's building products distribution
business, reported 1995 net sales of $753 million, the highest
annual sales in L&W's history, vs. $659 million in 1994. EBITDA was
$26 million compared to $15 million in 1994. L&W achieved record
sales levels for virtually all product lines in 1995, and all
product lines recorded gross profit improvements over 1994 levels.
The number of L&W distribution centers at the end of 1995 was 156,
up 17 from the end of 1994, including the six centers acquired in
south Florida as part of the Doby Building Supply acquisition, which
occurred in December 1995.
CGC Inc.'s gypsum division reported 1995 net sales of $102
million, down 7 percent vs. 1994, and EBITDA of $11 million vs. $15
million in 1994. Canadian wallboard demand was depressed in 1995 as
a result of the lowest level of housing starts in 35 years. CGC
partially offset low demand by increasing its Canadian market share
and exporting more wallboard to the United States. Higher waste
paper furnish prices also adversely affected CGC's profitability.
Worldwide Ceilings
USG's worldwide ceilings businesses reported 1995 net sales of
$609 million, up 3 percent, and EBITDA of $67 million, up 8 percent
over 1994. These increases were driven by the improved sales and
EBITDA performance of USG Interiors, Inc. Worldwide ceilings' full-
year 1995 results reflect record ceiling tile shipments attributable
to the improving U.S. commercial renovation market and growing
demand from international markets.
USG Interiors recorded net sales of $385 million and EBITDA of
$58 million. Adjusting for the sale of USG Interiors' access floor
business, which occurred late in 1994, USG Interiors' net sales and
EBITDA are up 4 percent and 10 percent, respectively, over 1994.
USG's worldwide ceilings international units reported combined net
sales of $263 million and EBITDA of $9 million, up 14 percent and
unchanged, respectively, vs. 1994.
Accounting and Earnings-Per-Share Adjustments
As previously reported, USG emerged from bankruptcy on May 6,
1993. The implementation of the bankruptcy plan resulted in the
conversion of more than $1.4 billion of subordinated debt and unpaid
interest into equity and significantly reduced USG's ongoing
interest expense. Various adjustments were recorded to USG's
financial results to reflect the restructuring. One of these
adjustments resulted in the recording of $851 million of
reorganization value in excess of identifiable assets, which is
being amortized over a five-year period. Another adjustment
relating to the difference between the face value and the market
value of the corporation's debt was also recorded.
Together, the amortization of these noncash adjustments and the
one-time fourth-quarter charge relating to the exit of the
insulation manufacturing business reduced USG's fourth-quarter and
12-months 1995 net earnings by $67 million, or $1.49 per share, and
$197 million, or $4.38 per share, respectively.
USG Corporation is a Fortune 500 company with subsidiaries that
are market leaders in their key product groups of gypsum wallboard,
joint compound and related gypsum products; ceiling tile and grid;
and building products distribution.
USG CORPORATION
(dollars in millions except per share figures)
Periods ended Dec. 31,
Three Months 12 Months
1995 1994 1995 1994
Condensed Consolidated
Statement of Earnings:
Net sales $602 $601 $2,444 $2,290
Cost of products sold (a) 452 480 1,841 1,773
------ ------ -------- ------
Gross profit 150 121 603 517
Selling and administrative expenses 63 65 244 244
Amortization of excess
reorganization value (b) 42 42 169 169
------ ------ ------- ------
Operating profit 45 14 190 104
Interest expense, net (c) 21 44 93 139
Other expense, net (d) 31 2 32 3
Taxes on income 18 3 97 54
------ ----- ------- ----
Net loss (e) (25) (35) (32) (92)
------ ----- ------- -----
Net loss per common share (e) (0.55) (0.79) (0.71) (2.14)
Other Financial Information:
EBITDA (f) 102 67 417 325
EBITDA margin, percent 16.9% 11.1% 17.1% 14.2%
Depreciation and depletion 15 12 58 53
Capital expenditures 53 27 147 64
Cash and cash equivalents (As of Dec. 31) 70 197
Principal amount
of total debt (As of Dec. 31) 926 1,149
Average common
shares outstanding 45,191,546 45,120,120
45,083,005 43,243,497
(a) Fourth quarter and 12 months 1994 cost of sales include a $30
million pretax ($17 million after-tax) charge for an asbestos
settlement.
(b) In connection with its 1993 debt restructuring, USG Corporation
recorded $851 million of reorganization value in excess of
identifiable assets, which is being amortized against earnings over
a five-year period.
(c) Fourth quarter and 12 months 1994 interest expense includes a
$16 million pretax ($9 million after-tax) write-off of
reorganization debt discount.
(d) Fourth quarter and 12 months 1995 other expense includes a $30
million pretax ($24 million after-tax) charge in connection with the
planned sale of the Thermafiber insulation business in the United
States and the closure of an insulation business in Canada.
(e) The noncash amortization of excess reorganization value and
reorganization debt discount (included in interest expense), as well
as the fourth quarter 1995 charge disclosed above in footnote (d),
reduced reported net earnings by $67 million, or $1.49 per share, in
the three months ended Dec. 31, 1995, and by $197 million, or $4.38
per share, in the 12 months ended Dec. 31, 1995. The noncash
amortizations, as well as the above-mentioned charges for the
asbestos settlement and write-off of reorganization debt discount
reduced earnings for the respective 1994 periods by $71 million, or
$1.60 per share, and $207 million, or $4.81 per share.
(f) EBITDA represents earnings before interest, taxes, depreciation,
depletion, amortization and items classified as other expense, net.
The corporation believes EBITDA is helpful in understanding cash
flow generated from operations that is available for taxes,
debtservice and capital expenditures.
USG CORPORATION
(dollars in millions)
Net Sales EBITDA
---------------------- ----------------------
Periods ended Dec. 31, Three Months 12 Months Three Months 12 Months
1995 1994 1995 1994 1995 1994 1995 1994
Core Business Results:
U.S. Gypsum Company $322 $321 $1,309 $1,209 $82 $48 $327 $248
L&W Supply Corporation 190 174 753 659 7 3 26 15
CGC Inc. (gypsum) 24 30 102 110 4 5 11 15
Other subsidiaries (a) 23 25 75 90 5 8 22 28
Eliminations (77) (78) (315) (288) - - - (2)
----- ----- ----- ---- ---- ---- ---- ----
North American Gypsum 482 472 1,924 1,780 98 64 386 304
USG Interiors, Inc. 93 97 385 400 12 11 58 53
USG International 57 55 235 202 - 2 5 6
CGC Inc. (interiors) 6 7 28 29 1 - 4 3
Eliminations (10) (10) (39) (37) - - - -
----- ----- ---- ---- --- ---- ---- ---
Worldwide Ceilings 146 149 609 594 13 13 67 62
Corporate - - - - (9) (10) (36)(41)
Eliminations (26) (20) (89) (84) - - - -
----- ---- ----- ----- --- ----- ---- ----
Total USG Corporation 602 601 2,444 2,290 102 67 417 325
(a) Includes Yeso Panamericano, S.A. de C.V., a Mexican building
products business, Gypsum Transportation Limited, a Bermuda shipping
company, and USG Canadian Mining Ltd., a mining operation in Nova
Scotia.
ROCHESTER, N.Y., Jan. 25, 1996 -- Goulds Pumps, Inc.
(Nasdaq-NNM-GULD) today announced annual earnings per share of $1.35
exclusive of restructuring, a 40.6 percent increase over 1994
earnings per share of $.96, also exclusive of restructuring. The
Company reported record orders that were 21.8 percent higher than
last year and record sales that were 22.8 percent greater than 1994.
Sales of $186.5 million for the quarter were 29.7 percent
greater than the same quarter last year. Fourth quarter orders of
$178.6 million were 13.2 percent better than the fourth quarter of
1994. Without the effect of Vogel, acquired in December 1994, sales
would have increased 18.2 percent and orders would have increased
3.1 percent over a strong 1994 quarter. Backlog at December 31,
1995 was $151.2 million, 32.9 percent higher than backlog at
December 31, 1994. Without Vogel, the increase would have been 6.9
percent.
Earnings per share for the fourth quarter were $.28 in 1995
before the net restructuring impact of $.49, primarily for the
disposal of Environamics Corporation and the wind down of the
Company's Venezuelan manufacturing operation. Net earnings of $6.0
million, exclusive of the impact of restructuring, were 1.9 percent
greater than last year's fourth quarter earnings of $5.9 million,
without a 1994 restructuring charge of $3.5 million. The 1995
fourth quarter earnings per share also benefited by $.07 from tax
strategies implemented in the quarter while the 1994 fourth quarter
earnings included a $4.2 million pre-tax credit ($.12 per share)
resulting from changes in eligibility requirements for the Company's
post-retirement medical and life insurance programs.
For the year, orders of $729.2 million increased 21.8 percent;
sales of $718.8 increased 22.8 percent and net earnings of $28.6
million, exclusive of restructuring, increased 40.8 percent over
last year. Without Vogel, orders would have increased 11.1 percent;
sales would have increased 12.0 percent and earnings exclusive of
restructuring would have increased 37.2 percent.
The Company's 1994 financial results were impacted by a $3.5
million pre-tax charge ($.10 per share) for legal and other fees
related to the Company's defense of lawsuits in California alleging
leaching of lead from submersible pumps. This litigation was
settled in July 1995. The 1994 financial results also include the
previously noted $4.2 million pre-tax credit ($.12 per share).
INDUSTRIAL PRODUCTS SECTOR
Strong Industrial Products orders of $102.5 million for the
fourth quarter resulted in record annual orders of $390.9 million
which were 20.5 percent better than last year. The fourth quarter
orders were 14.6 percent greater than the strong 1994 fourth quarter
orders. Without Vogel, orders would have increased 11.0 percent for
the year and 4.0 percent for the quarter.
The industrial core markets remain strong but the quarter over
quarter orders comparison does not show the sharp increases reported
in prior quarters because the significant upturn in orders began in
the fourth quarter of 1994, which was a record at that time.
Further, an interruption in orders momentum at the Engineered
Products business was experienced when lead times were temporarily
lengthened during the third quarter. These lead times have since
been reduced to competitive levels. For the fourth quarter, overall
parts orders increased 7.7 percent, led by a large order booked at
the Vertical Products business unit.
Sales of $107.9 million for the fourth quarter of 1995 were 28.3
percent higher than the same quarter a year ago and annual sales of
$377.4 were 16.7 percent greater than 1994. Without Vogel, the
increase for the quarter would have been 16.9 percent and the
increase for the year would have been 7.5 percent. A factor in this
high sales level is a throughput record set at our Engineered
Products factory as additional manufacturing improvements, which
were discussed in prior quarters, continue to be implemented.
The sector's operating earnings jumped 34.2 percent for the
quarter and 32.1 percent for the year. These increases would have
been 13.6 percent for the quarter and 24.4 percent for the year
without Vogel.
The Company has recently announced that a letter of intent has
been signed to sell certain product lines of the Municipal Business
Unit. It is expected that this sale will be completed during the
first quarter of 1996.
WATER TECHNOLOGIES SECTOR
Record orders and sales improved by 11.3 percent and 31.6
percent, respectively, over the fourth quarter of last year and 23.4
percent and 30.2 percent, respectively, for the full year. Without
Vogel, orders would have increased 2.0 percent for the quarter and
11.3 percent for the year. The sector's sales increases would have
been 20.1 percent for the fourth quarter and 17.4 percent for the
full year without Vogel. These strong orders and sales levels were
mainly driven by Europe, which posted a sales increase of 27.5
percent in local currency for the fourth quarter.
Quarterly operating earnings for the sector increased 64.3
percent with Vogel and 33.4 percent without Vogel. Specifically,
strong profitability at WTG-America and at Vogel for the quarter
more than offset weaker operating earnings at Lowara. For the year,
operating earnings increased 20.9 percent with Vogel and 13.3
percent without Vogel.
Earlier in the week, a change in the leadership of WTG-Europe
was announced when J. Kevin Kilbane was named as the President-
Goulds Pumps Europe. Kevin had previously worked for Goulds Pumps
having held several senior level management positions. He returned
to Goulds Pumps from Ingersoll Dresser Pump Company where he had
worldwide responsibilities as the President of the Engineered Pump
Group since 1992.
IN CLOSING
Thomas C. McDermott, Chairman, President and Chief Executive
Officer concluded, "1995 has been a very good year for Goulds as we
significantly improved our profitability and even more clearly
focused on our strategic imperatives. The foundation for
accomplishing these priorities is our management team which we have
substantially strengthened during the year. We are also pleased
with the success from our regional organizations which have helped
to drive worldwide growth."
"We continue to focus on those businesses which are strategic
and enhance profitability. Businesses such as Environamics, the
Municipal Business Unit and Venezuelan manufacturing have been
targeted for divesture because they do not meet these criteria."
"We believe that the momentum generated in 1995 will carry
forward to 1996, which should be a strong year."
GOULDS PUMPS, INCORPORATED
Condensed Consolidated Statements of Earnings
(In thousands except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
1995 1994 1995 1994
Net sales $186,544 $143,845 $718,763 $585,476
Costs and expenses
Cost of sales 134,680 103,251 514,050 418,386
Selling, general and
administrative expenses 39,464 31,282 144,603 117,572
Research and development
expenses 1,923 2,613 8,227 10,564
Restructuring charges 18,513 3,463 18,513 3,463
Provision for (reversal of)
environmental litigation (140) -- (890) 3,454
(Earnings) losses from
affiliates (22) 155 (23) (451)
Interest expense 3,159 1,759 11,373 6,553
Interest income (446) (276) (1,825) (3,038)
Other (income)
expense - net 298 (3,917) (361) (670)
Earnings (loss) before
income taxes (10,885) 5,515 25,096 29,643
Income taxes (6,325) 1,767 7,024 11,442
Net earnings (loss) $ (4,560) $ 3,748 $ 18,072 $ 18,201
Net earnings (loss)
per common share $ (.21) $ .18 $ .85 $ .86
Dividends per common
share $ .20 $ .20 $ .80 $ .80
Weighted average
shares outstanding 21,268 21,184 21,240 21,175
Condensed Consolidated Balance Sheets
Goulds Pumps, Incorporated
(In thousands)
December 31,
1995 1994
ASSETS
Current Assets:
Cash and cash equivalents $ 6,383 $ 7,374
Receivables - net 143,819 113,777
Inventories 131,693 111,508
Deferred tax asset 18,972 12,494
Prepaid expenses and
other current assets 16,598 10,898
Total current assets 317,465 256,051
Property, plant
& equipment - net 173,304 152,789
Investment in Vogel -- 17,800
Investments in affiliates 1,207 1,178
Other investments 9,046 6,498
Deferred tax asset 8,834 8,125
Goodwill - net 29,858 1,656
Other assets 14,272 13,144
Total $553,986 $457,241
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Short-term borrowings $ 37,904 $ 10,418
Current portion of
long-term debt 21,716 24,886
Trade payables 71,406 47,382
Deferred tax liability 1,514 391
Restructuring accrual 7,701 3,224
Other 70,295 52,902
Total current liabilities 210,536 139,203
Long-term debt 73,454 53,756
Pension 26,302 16,992
Other postretirement
benefit obligation 50,903 51,681
Deferred tax liability
and other 2,477 4,322
Shareholders' Equity:
Common stock outstanding 21,283 21,193
Additional paid-in capital 59,175 57,622
Retained earnings 122,741 121,671
Cumulative translation
adjustments and other (12,885) (9,199)
Total shareholders' equity 190,314 191,287
Total $553,986 $457,241
Major Market Segment Information
Goulds Pumps, Incorporated
(In thousands)
The Company operates in two major market segments, Industrial
Products and Water Technologies. The Industrial Products segment
produces and sells pumps used in various industries including pulp
and paper, chemical processing, petrochemical, food and beverage,
oil, mining, municipal, and electric utility and provides parts and
repair services for various types of pumps and other rotating
equipment. The Water Technologies segment produces and sells pumps
for residential, farm, irrigation and commercial/light industrial
use.
Three Months Ended Twelve Months Ended
December 31, December 31,
1995 1994 1995 1994
Net Sales:
Industrial Products $107,874 $ 84,058 $377,399 $323,254
Water Technologies 78,670 59,787 341,364 262,222
Total net sales $186,544 $143,845 $718,763 $585,476
Operating Earnings:
Industrial Products $6,725 $5,012 $28,475 $21,556
Water Technologies 5,538 3,370 29,601 24,477
Total operating
earnings 12,263 8,382 58,076 46,033
General corporate
expense 1,786 1,683 6,193 7,079
Restructuring charges 18,513 3,463 18,513 3,463
Provision for
(reversal of)
environmental
litigation (140) -- (890) 3,454
(Earnings) losses from
affiliates (22) 155 (23) (451)
Interest expense 3,159 1,759 11,373 6,553
Interest income (446) (276) (1,825) ( 3,038)
Other (income)
expense - net 298 (3,917) (361) (670)
Earnings (loss) before
income taxes $(10,885) $ 5,515 $ 25,096 $ 29,643
ATLANTA, Jan. 25, 1996 -- Delta Air Lines (NYSE: DAL)
today reported financial results for the December 1995 quarter which
reflect year-over-year improvements because of a continuing
commitment to cost reductions. The December quarter is the second
quarter of Delta's fiscal year.
Unaudited operating income totaled $169 million. Operating
income in the December 1994 quarter was $18 million. Unaudited net
income for the December 1995 quarter was $70 million, compared to a
net loss of $18 million in the December 1994 quarter. Primary and
fully diluted earnings per common share after preferred stock
dividend requirements were $0.93, compared with a primary and fully
diluted loss per common share of $0.79 in the December 1994 quarter.
Operating cost per available seat mile was 8.61 cents in the
December 1995 quarter, down four percent from 8.93 cents in the
previous year.
"Permanent cost reductions are the most powerful and sustainable
way to restore financial health," said Ronald W. Allen, Delta's
chairman, president and chief executive officer. "We will not go
back to business as usual, even during these relatively good
economic times. Delta's and the industry's current stages of
financial recovery are too fragile for complacency. And, our
revenue performance underscores the fact that the highly competitive
environment we are dealing with will make it very difficult to
improve our financial position through revenue growth.
"Our Leadership 7.5 cost reduction program is driving our
improved financial performance, and we are committed to our
financial goals," Allen said. "We see increasing pressure on
revenues from low-cost competitors in the core of our operation as
well as the impact of rising fuel prices and the uncertainty of the
economy. Our goals are to rebuild a record of sustained, superior
financial performance and to grow from this profitable base."
Allen said the company's December 1995 quarter costs were
inflated $22 million, due to a still-unresolved exemption for
commercial aviation from a 4.3 cents per gallon jet fuel tax, which
became effective October 1995. "Exemption from this additional tax
would remove a high financial hurdle now in the path of our
industry's recovery," Allen noted.
"Delta's current progress toward our goals is due to the
commitment and professionalism of Delta people in every part of the
company," Allen said. "That became especially clear recently when
strong holiday traffic and extreme weather conditions affected our
operations and tested everyone at Delta. Mechanics, flight
attendants, pilots, airport personnel, reservations sales agents
- everyone - worked together under very difficult circumstances.
Our operations did not always meet our expectations and those of our
customers, but we are using our people's experience and feedback to
return to Delta standards."
"The value of this teamwork, though, is being tested by recent
actions by the Air Line Pilots Association. The negotiating
position put forth by ALPA last week is a cause for serious concern
in achieving the company's goals and maintaining a cohesive work
group," Allen said. "Delta's overall pilot block hour costs must be
competitive if we are to remain profitable and grow. Our most
recent contract offer to ALPA was designed to make Delta cost-
competitive while addressing the most significant needs of Delta
pilots. ALPA's counterproposal moves in the opposite direction by
adding millions of dollars in costs. We are committed to the
negotiating process, and we will work diligently toward reaching a
competitive and fair agreement quickly."
For calendar year 1995, Delta reported unaudited operating
income of $1.04 billion, compared to an operating loss of $217
million in calendar 1994. Unaudited net income for calendar 1995
was $510 million ($8.26 primary and $6.68 fully diluted earnings per
common share after preferred stock dividends), compared to a net
loss of $159 million ($5.12 primary and fully diluted loss per
common share after preferred stock dividends) in calendar 1994.
Calendar 1994 results included a $414 million pretax
restructuring charge related to the company's Leadership 7.5 program
and a $114 million after-tax benefit from the adoption of a new
accounting standard related to postemployment benefits. Excluding
these items, the net loss for calendar 1994 was $12 million ($2.21
primary and fully diluted loss per common share after preferred
stock dividends), and operating income totaled $197 million.
December 1995 Quarter
Operating revenues in the December 1995 quarter were $2.9
billion, up one percent from the December 1994 quarter. Operating
revenue per available seat mile increased two percent to 9.14 cents.
Passenger revenue grew two percent, due to a 3.3 percent
improvement in the passenger mile yield, which was partially offset
by a 1.6 percent decline in passenger traffic to 20.8 billion
revenue passenger miles. Cargo revenue decreased 12 percent to $135
million.
Operating expenses in the December 1995 quarter declined four
percent from the December 1994 quarter to $2.8 billion. Expenses
include $22 million in additional jet fuel taxes, due to the October
1995 expiration of an industry exemption from a 4.3 cents per gallon
fuel tax and the unresolved status of a further exemption.
Leadership 7.5 initiatives contributed to reductions in most cost
categories.
Operating cost per available seat mile declined four percent to
8.61 cents, as operating capacity declined one percent to 32.2
billion available seat miles. Excluding the 4.3 cents per gallon
jet fuel tax, operating cost per available seat mile was 8.54 cents.
Passenger load factor for the December 1995 quarter was 64.5
percent, compared to 65.0 percent in the December 1994 quarter. The
break-even load factor declined to 60.5 percent from 64.6 percent.
Calendar Year 1995
Operating revenue in calendar 1995 increased two percent from
calendar 1994 to $12.3 billion. Passenger revenue was up two
percent to $11.4 billion, as the passenger mile yield rose three
percent to 13.38 cents and passenger traffic declined one percent to
85.1 billion revenue passenger miles. Cargo revenue decreased five
percent to $537 million, due to a five percent decline in cargo ton
miles.
Operating revenue per available seat mile increased two percent
to 9.41 cents.
Operating expenses totaled $11.2 billion in calendar 1995,
compared to $12.3 billion in calendar 1994. Calendar 1994 expenses
include a $414 million pretax restructuring charge related to the
company's Leadership 7.5 program. Excluding this restructuring
charge, calendar 1995 expenses were down six percent from the
previous year.
Available seat miles in calendar 1995 totaled 130.2 billion,
essentially unchanged from the previous year. Operating cost per
available seat mile, excluding the calendar 1994 restructuring
charge, decreased five percent from 9.10 cents to 8.61 cents.
Passenger load factor for calendar 1995 was 65.4 percent
compared to 66.2 percent in calendar 1994. The break-even load
factor was 59.4 percent, down from 65.1 percent excluding the 1994
period restructuring charge.
Delta Board of Directors Declares Cash Dividends
Delta Air Lines' Board of Directors, at their regular meeting
held here today, declared cash dividends of five cents per common
share and $875 per share of Series C Convertible Preferred Stock
($0.875 per depositary share).
Both dividends are payable March 1, 1996, to stockholders of
record on February 8, 1996.
CONTACT: Corporate Communications, 404-715-2533 or 404-715-2532,
or Investor Relations, 404-715-6679, both of Delta Air Lines
GRAND RAPIDS, Mich., Jan. 25, 1996 -- Guardsman Products,
Inc. (NYSE: GPI) today announced that 1995 sales increased 24% to a
record $250,574,000 up from $201,888,000 in 1994. Net income before
previously announced restructuring charges amounted to $8,067,000
($.85 per share) for the year ended December 31, 1995, up 37% from
the $5,903,000 ($.70 per share) earned during 1994. Pretax earnings
before restructuring charges increased 34% from $9,839,000 in 1994
to $13,138,000 in 1995. Earnings in 1995 were impacted by
restructuring charges, which decreased pretax income by $10,458,000
or $.70 per share for the year. Including the restructuring
charges, net income totaled $1,432,000 or $.15 per share.
Sales for the fourth quarter were a record $61,436,000 in 1995
compared to $56,890,000 in the fourth quarter of 1994, an increase
of 8%. For the fourth quarter, Guardsman reported net income before
restructuring charges of $2,377,000 ($.25 per share) up 94% from the
$1,225,000 ($.13 per share) in 1994. Restructuring charges recorded
in the fourth quarter of 1995 totaled $9,988,000 or $.67 per share
resulting in a net loss of $3,971,000 or $.42 per share for the
period.
NET MARGINS (BEFORE RESTRUCTURING) UP 37%
Solid growth in both sales and operating profits was achieved
from all three business groups. These results are reflective of
growth from ongoing operations as well as from acquisitions in the
Metal Coatings and Consumer Products Groups.
The Company has previously indicated that its strategic plan
calls for a doubling of net operating margins particularly in its
coatings businesses, and a doubling in size of its consumer
business. It recorded steady progress on both fronts in 1995.
"A step at a time, we are getting where we have to get on our
strategy," commented Charles E. Bennett, President and Chief
Executive Officer. "Net margins, prior to restructuring charges,
were up 37%. Once again, our Consumer Products Group achieved very
handsome revenue gain. Additionally, strong volume increases allowed
us to realize better returns on our ongoing fixed cost base
reduction program. We have set the stage for more of the same in
1996," Mr. Bennett commented.
"As announced on November 14, 1995, we undertook a restructuring
of our Coatings Group and other corporate structure changes to
increase our future gross and net operating margins. We recorded
the financial effect of these actions during the fourth quarter with
a resultant one- time impact on our earnings. As production is
realigned within our more efficient facilities and as the
administrative workload is consolidated or eliminated over the next
several months, we will report continued improvement in operating
results for 1996 and into the future," Mr. Bennett said.
Quarter Ended Year Ended
December 31, December 31,
1995 1994 1995 1994
(thousands of dollars, except share and per share data)
Net Sales $61,436 $56,890 $250,574 $201,888
Cost of Sales 39,352 38,366 165,618 132,984
Operating Expenses 18,201 16,162 70,274 58,251
Operating Income Before
Restructuring Charges 3,883 2,362 14,682 10,653
Interest Expense 516 413 2,131 1,188
Investment Income (153) (94) (587) (374)
Income Before
Restructuring Charge 3,520 2,043 13,138 9,839
Restructuring Charge 9,988 10,458
Income Before Income
Taxes (6,468) 2,043 2,680 9,839
Income Taxes (2,497) 818 1,248 3,936
Net Income $(3,971) $1,225 $1,432 $5,903
Income Per Share:
Before Restructuring
Charges $0.25 $0.13 $0.85 $0.70
Restructuring Charges (0.67) (0.70)
Net Income ($0.42) $0.13 $0.15 $0.70
Weighted Average Shares
Outstanding 9,550,234 9,474,283 9,515,199 8,464,639
CONTACT: Henry H. Graham, Jr., Vice President of Finance and Chief
Financial Officer of Guardsman, 616-957-2600
YOUNGSTOWN, Ohio -- Jan. 25, 1996 --
Phar-Mor, Inc.
today announced the results for its second fiscal quarter, the
thirteen weeks ended December 30, 1995. For the 102 drug stores
that the Company operates, all of which are comparable stores, net
income for the quarter was $ 3,578,000 or $0.29 per share compared
to, on a pro forma basis, $ 5,470,000 or $0.45 per share for the
comparable thirteen weeks ended December 31, 1994 (giving
retroactive effect to fresh start accounting adjustments,
elimination of non-recurring reorganization costs and adjusting
interest expense to give effect to the new debt of the reorganized
Company).
Net income for the twenty-six weeks ended December 30, 1995, on
a pro forma basis, was $ 4,468,000 or $ 0.37 per share, compared to
$ 6,277,000 or $ 0.52 per share for the comparable twenty-six weeks
ended December 31, 1994.
Sales were $ 284.3 million for the second quarter, compared to $
305.9 million for the second quarter of the prior year, a decrease
of 7.0 % . The sales decrease was a result of shortfalls in
seasonal categories of general merchandise, cosmetics and
consumables.
Sales were $ 539.2 million for the twenty-six weeks ended
December 30, 1995, compared to $ 581.6 million for the comparable
twenty-six weeks of the prior year, a decrease of 7.3 % .
Phar-Mor is a retail drug
store chain with 102 stores in 18 states. The Company's common stock
is traded on the NASDAQ Small Cap Market under the symbol "PMOR". The
Company expects to be listed on the NASDAQ National Market following
the completion of the Securities and Exchange Commission's review of
its amended Form 10 registration statement, which was filed with the SEC
on December 15, 1995.
PHAR-MOR, INC.
UNAUDITED CONSOLIDATED SUMMARY OF SALES AND EARNINGS
(In thousands, except per share amounts)
PROFORMA : (a)
Successor Company Successor Company
Thirteen Weeks Ended Twenty-six Weeks Ended
12/30/95 12/31/94 12/30/95 12/31/94
Sales $284,318 $305,949 $539,163 $581,635
Income before
income tax
expense $5,966 $9,116 $7,450 $10,461
Income tax
expense 2,388(b) 3,646(b) 2,982(b) 4,184(b)
Net income $3,578 $5,470 $4,468 $6,277
Earnings per
share $0.29 $0.45 $0.37 $0.52
AS REPORTED:
Successor Company Predecessor Company
Thirteen Weeks Ended Thirteen Weeks Ended
12/30/95 12/31/94
Sales $284,318(c) $405,616(c)
Income before
reorganization
items and income
taxes $5,966(c) $6,283(c)
Reorganization items - 247(d)
Income before income
taxes 5,966 6,530
Income tax expense 2,388(b) -(b)
Net income $3,578 $6,530
Earnings per share $0.29 N/M
Successor Company Predecessor Company
Seventeen Nine Twenty-six
Weeks Ended Weeks Ended Weeks Ended
12/30/95 9/2/95 12/31/94
Sales $357,195(c) $181,968(c) $768,840(c)
Income (Loss) before
reorganization
items, fresh start
revaluation,
extraordinary item
and income taxes $6,112(c) ($1,634)(c) $2,886(c)
Reorganization items - (16,798)(d)
(2,942)(d)
Fresh start revaluation - 8,043 -
Extraordinary item -
gain on debt discharge - 775,073 -
Income (loss) before
income taxes 6,112 764,684 (56)
Income tax expense 2,446(b) -(b) -(b)
Net income (loss) $3,666 $764,684 ($56)
Earnings per share $0.30 N/M N/M
(a) The Company emerged from protection under Chapter 11 of the
United States Bankruptcy Code on September 11, 1995 (the
"Effective Date"). Consequently, the Company has applied the
reorganization and fresh-start reporting adjustments to the
balance sheet as of September 2, 1995, the closest fiscal month
end to the Effective Date. The proforma information is for the
102 stores that the Successor Company was operating when it
emerged from bankruptcy on September 11, 1995. The proforma
information includes all retroactive adjustments for fresh start
accounting, elimination of non-recurring reorganization items
and adjusting interest expense to give effect to the new debt of
the reorganized Company.
(b) Due to the losses generated by the Predecessor Company it
was in a net operating loss carryforward position. Further, the
discharge of debt in conjunction with the reorganization did not
generate taxable income. Consequently, no provision for income
taxes was recorded by the Predecessor Company. The income tax
provision for the Successor Company has been computed at the
estimated combined Federal and state tax rate of approximately
40%.
(c) Includes results for 143 stores for the 13 weeks and 26
weeks ended December 31, 1994 and 102 stores for all other
periods presented.
(d) Reorganization items include charges for Chapter 11
professional fees, the Debtor-In-Possession financing facility
fees and costs of downsizing net of credits for interest income,
amortization of prepetition vendor exclusivity income, gain on
sale of an asset held for sale and an insurance claim recovery.
EARNINGS PER SHARE for the Successor Company have been computed
based on 12,156,250 weighted average shares outstanding for each
period. No earnings per share have been presented for the
Predecessor Company because such presentation would not be
meaningful.
CONTACT: Gary Holmes,
(212) 484-7736
BEAVERTON, Ore., Jan. 25, 1996 -- Epitope, Inc.(AMEX: EPT)
today reported a net loss of $0.13 per share ($1.7 million) for
the first quarter of fiscal 1996, ended December 31, 1995, compared
with a net loss of $0.39 a share ($4.3 million) for the first
quarter of fiscal 1995. Revenue for the quarter totaled $1.3
million, compared with $1.1 million for the first quarter a year
ago.
Sales of the company's oral specimen collection device in the
current quarter were approximately four times the levels achieved in
the first quarter of fiscal 1995 due to increased use of the device
for insurance risk assessment. That increase more than offset a
decline in revenues from sales of the company's serum HIV Western
blot confirmatory test. Product revenues for the prior year
included $393,000 from the company's fresh flower packaging
operation that was divested in May 1995. Product revenues for the
company's medical products division increased 17% over the prior
year quarter. Grant and contract revenues in the current quarter
included $390,000 of payments pursuant to the company's development,
license and supply agreement with SmithKline Beecham, plc (SB).
The company's medical products division reduced its operating
loss as compared to the prior year first quarter by approximately $1
million due to improved profitability of products, contract revenues
from SB, and cost reductions as a result of the company's
restructuring program. Operating losses in the first quarter of the
prior fiscal year included $1.6 million related to two agricultural
operations which were divested late in the prior fiscal year.
Just prior to the end of the quarter, on December 22, the
company received an approvable letter from the Food and Drug
Administration with respect to its application to market its Western
blot HIV-1 confirmatory test for use with specimens collected with
its oral specimen collection device. The FDA indicated that it will
issue an approval order after certain information has been
submitted, reviewed and deemed acceptable, and upon successful
completion of a facilities inspection. The company recently
submitted the requested information. An inspection is currently
underway.
"We are pleased to have accomplished a significant reduction in
operating losses as we execute our plan to bring the company to
profitability," said Adolph J. Ferro, president and chief executive
officer. "Use of the Epitope oral specimen collection device for
insurance risk assessment purposes continues to increase. We
believe that approval of the OraSure(R) Western blot test will lead
to widespread use of our insurance testing product and in a broad
range of professional markets to be served by our marketing partner,
SmithKline Beecham. SB plans to launch the OraSure oral specimen
device to various professional markets upon FDA approval of the
confirmatory test."
A tabulation of results follows (in thousands, except per share data):
EPITOPE, INC.
Three months ended
OPERATING HIGHLIGHTS 12/31/95 12/31/94
Revenue $ 1,311 $ 1,135
Net loss (1,652) (4,302)
Net loss per share (.13) (.39)
Average shares outstanding 12,492 11,031
SELECTED BALANCE SHEET DATA 12/31/95 12/31/94
Cash and marketable securities $19,304 $14,458
Working capital 19,582 15,764
Total assets 28,119 23,466
Convertible notes 3,620 4,070
Shareholders' equity 21,332 17,048
CONTACT: Mary Hagen or Gus Allen of Epitope, 503-641-6115/
SAN JOSE, Calif. -- Jan. 25, 1996 -- Diamond Multimedia
(Nasdaq: DIMD) Thursday announced that it has increased
its offer to acquire Hayes Microcomputer
Products, Inc. out of Chapter 11 bankruptcy reorganization.
The Official Committee of Unsecured Creditors of Hayes (the
"Committee"), which has approved the Diamond offer, today filed with
the U.S. Bankruptcy Court in Atlanta, Georgia, an amendment to the
Plan of Reorganization of the Committee and Diamond increasing the
offer.
The Committee and Diamond filed an amendment to the Plan on
December 7, 1995 in which Diamond proposed to provide approximately
$85 million in cash to creditors, representing a full pay-out of pre-
petition claims, plus interest, and offered equity holders $92
million in stock and $8 million in cash. The new offer continues to
provide cash to creditors, however, equity holders will now receive
an aggregate of $102.4 million in stock and $8.6 million in cash.
Diamond further reserved the right to increase the total cash
consideration and correspondingly decrease the total stock
consideration by any amount up to one-half of the total merger
consideration of $111 million.
Diamond Multimedia
Diamond Multimedia designs, markets and supports high-
performance multimedia solutions for the PC and Macintosh markets.
Products include the Stealth, Viper and SPEA brands of graphics, CAD
and multimedia accelerators, Diamond EDGE 3D animation accelerators
and Supra fax/modems.
Diamond also markets Internet kits including ISDN adapters, as
well as sound cards and multimedia upgrade kits. Headquartered in
San Jose, CA, Diamond has marketing and technical support facilities
in Vancouver (Wash.), Tokyo, Starnberg (Germany), Paris and Slough
(U.K.) Diamond's products are sold through regional, national and
international distributors as well as to major computer retailers,
mass merchants and OEMs worldwide. Diamond's common stock is traded
on the Nasdaq National Market under the symbol DIMD.
CONTACT: Diamond Multimedia,
Gary Filler, 408/325-7333 (investors) /
Kim Stowe, 408/325-7204 (media),
kims@diamondmm.com
or
Financial Relations Board,
Ann Trunko, 415/986-1591 (general information) /
Kevin Mirise, 415/986-1591 (analyst contact)
FREMONT, Calif. -- Jan. 25, 1996 -- SEEQ Technology
Incorporated (NASDAQ;SEEQ) today announced financial results for its
first quarter ended December 31, 1995. The semiconductor company
specializing in data communication products reported a net loss of
$293,000 or $0.01 per share, on revenues of $4,801,000 compared to a
net profit, which includes a $285,000 credit to previously
established restructuring reserves, of $494,000 or $0.02 per share,
on revenues of $6,180,000 for the corresponding prior-year period.
Phil Salsbury, SEEQ's President and Chief Executive Officer
commented, "We are disappointed that production during the first
quarter of fiscal 1996 was not sufficient to meet demand.
Consequently, product availability and revenues were significantly
lower than planned. During the last six months, we began production
at three foundries while discontinuing business with another.
Achieving adequate production ramp-up has been slowed by the effects
of continued strong world-wide demand for semiconductor foundry
capacity. However, we believe we are nearing the end of this
transition period and expect to see future improvement in wafer and
product availability. Gross margins for the quarter were impacted
by higher costs relating to start-up production for several new
product offerings. Our financial position has remained stable as we
reduced our outstanding debt during the quarter by almost $3 million
and net working capital remained at approximately $6.2 million.
Customer interest in SEEQ's data communication products is very
strong and our backlog of datacom orders grew to an all time high
for the second consecutive quarter. During the first quarter of
fiscal 1996, SEEQ achieved a number of major accomplishments. Of
primary importance, we secured strategic design wins for both our
Fast Ethernet Controllers and Ethernet Media Transceivers and also
met important initial product delivery schedules. We are very
encouraged by these recent events as they support our belief that
SEEQ has emerged as a leading provider of highly integrated, high
performance and cost effective Ethernet solutions. During the
coming quarter, we expect to reach a major milestone in our Fast
Ethernet product family when we complete introduction of our
physical layer component for the Fast Ethernet 100Base T4 market.
We have initiated sampling of this product and, to date, have booked
first orders with key customers. We are excited about these
additions to our Fast Ethernet product line-up and are confident the
market recognizes SEEQ's measurable cost and performance advantages
over competing solutions."
SEEQ Technology Inc. is a leading manufacturer of data
communications semiconductor products. As a LAN pioneer, it
introduced the first integrated Ethernet controller in 1982. The
company's Ethernet solutions are used in industry-leading
applications such as Network Interface Cards, Hubs/Bridges/Routers,
Switches, and Test Equipment. SEEQ has recently extended its
product families to include both Fast Ethernet (100 Base-T) and
Asynchronous Transfer Mode (ATM) components. SEEQ is located at
47200 Bayside Parkway, Fremont, CA. 94538. Telephone (510)226-7400;
Fax: (510)657-2837. "Safe Harbor" Statement under the Private
Securities Litigation Reform Act of 1995
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934, including statements
regarding the expectation of increased capacity, product
availability and the timing of new product introductions during the
remainder of fiscal 1996. Except for historical information, the
matters discussed in this press release are forward-looking
statements that are subject to certain risks and uncertainties that
could cause the actual results to differ materially from those
projected. Factors that could cause actual results to differ
materially include the following: general economic conditions and
conditions specific to the semiconductor industry, fluctuations in
customer demand and the timing and market acceptance of new product
introductions, SEEQ's ability to have available an appropriate
amount of foundry capacity and product availability in a timely
manner, the timely development of new products, and the risk factors
listed from time to time in SEEQ's SEC reports, including but not
limited to the report on Form 10-K for the year ended September 30,
1995 (Management's Discussion and Analysis of Financial Condition
and Results of Operations, Factors Affecting Future Results
section). SEEQ assumes no obligation to update the information
included in this press release.
For easy access to SEEQ's product and financial information use
our world wide web site at " target=_new>http://www.seeq.com">
http://www.seeq.com
SEEQ TECHNOLOGY INCORPORATED
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three months ended
Dec. 31, Dec. 31,
1995 1994
Revenues $4,801 $6,180
Costs and expenses:
Cost of revenues 3,487 4,330
Research and development 786 836
Marketing, general and
administrative 921 855
Restructuring and other, net -- (285)
------ ------
Total costs and expenses 5,194 5,736
------ ------
Income (loss) from operations (393) 444
Interest expense (83) (87)
Interest and other income, net 183 142
------ ------
Income (loss before
income taxes) (293) 499
Provision for income taxes -- (5)
------ ------
Net income (loss) ($293) $494
------ ------
Net income (loss) per share: ($0.01) $0.02
Shares used in per share
calculation: 29,873 25,820
SEEQ TECHNOLOGY INCORPORATED
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
(Unaudited)
Dec. 31, Sep. 30,
1995 1995
Assets
Current assets:
Cash and cash equivalents $3,112 $3,682
Restricted Cash -- 3,000
Accounts receivable,
less allowances 3,860 3,900
Inventories 2,546 2,230
Deposits and prepaid expenses 535 212
------- -------
Total current assets 10,053 13,024
Net property and equipment 1,574 1,500
Other assets 4,494 4,410
------- -------
Total assets $16,121 $18,934
------- -------
Liabilities and Stockholders' Equity
Current liabilities:
Note Payable to bank $ -- $3,000
Accounts payable 2,572 1,938
Accrued salaries, wages
and employee benefits 341 467
Other accrued liabilities 592 950
Current portion of long-term
obligations 343 287
------- -------
Total current liabilities 3,848 6,642
Long-term obligations 1,490 1,524
------- -------
Total liabilities 5,338 8,166
------- -------
Stockholders' equity 10,783 10,768
------- -------
Total liabilities and
stockholders' equity $16,121 $18,934
------- -------