Laserscope Reports Fourth Quarter and Year End
Results
SAN JOSE, Calif. -- Jan. 30, 1996 -- Laserscope
(Nasdaq: LSCP) today announced operating results for the fourth
quarter and year ended December 31, 1995.
The Company said that product shipment delays and restructuring
charges negatively impacted its fourth quarter results.
Laserscope said that fourth quarter shipment delays were related
to software modifications in its laser systems and delays in receipt
of certain letters of credit for laser system purchases. The
Company said both issues are being resolved and that the backlog of
products is expected to ship in the first quarter of 1996.
"Satisfying the backlog will assist our efforts to achieve
improved results in the first quarter of 1996," said Robert V.
McCormick, Laserscope President & CEO. "The Company should also
benefit in 1996 from two very recent events. First, our new Aura
Laser System, commercially launched in December 1995 for the private
practice and outpatient surgical center market, is attracting
considerable attention in both the U.S. and Europe.
"Second," said McCormick, "the U.S. Food and Drug
Administration's December 1995 marketing clearance for a unique
cancer treatment utilizing the Company's laser systems and the drug
PHOTOFRIN for the palliation of certain esophageal cancers is a
breakthrough event in patient care. We are especially pleased to
have the opportunity to work side-by-side with Sanofi Winthrop,
Inc., as part of our strategic alliance with QLT PhotoTherapeutics,
to bring this innovative therapy to market."
Marketing clearance for the Company's laser systems came in
conjunction with the FDA approval of PHOTOFRIN to treat advanced
esophageal cancer. PHOTOFRIN, a proprietary drug of QLT
PhotoTherapeutics Inc., is the first light-activated drug for use in
Photodynamic Therapy (PDT) to be approved in the United States.
Sanofi Winthrop, Inc., QLT PhotoTherapeutics' newly announced
U.S. distribution partner, will distribute PHOTOFRIN. Laserscope
will distribute laser systems and QLT's OPTIGUIDE fiberoptic
delivery devices.
Commenting on the 1995 results, McCormick said, "The slowdown
which we have been experiencing in the U.S. for capital equipment
and laser prostate surgery devices continued unabated throughout the
year."
With regard to the future outlook, he said, "We believe our new
Aura Laser System and market opportunities in PDT, arising from the
approval of PHOTOFRIN, provide us with good opportunities for
revenue growth. Additionally, the restructuring action taken in the
fourth quarter will reduce our expense levels going forward. As a
result, we are hopeful for improved results for the Company."
For the fourth quarter of 1995, Laserscope reported revenues of
$7.0 million, compared to revenues $10.2 million in the fourth
quarter of 1994. A net loss of $1.7 million (24 cents per share)
was reported for the fourth quarter of 1995, compared to net income
of $0.27 (4 cents per share) in the fourth quarter of 1994.
Revenues for the year ended Dec. 31, 1995 were $30.1 million,
compared to $36.3 million in 1994. A net loss of $3.5 million (51
cents per share) was reported for the year ended Dec. 31, 1995
compared to net loss of $0.93 million (13 cents per share) for the
year ended Dec. 31, 1994.
"In conclusion," said McCormick, "our international business is
improving, our balance sheet is virtually debt free, and we look
forward to favorable impacts from our new Aura Laser System and the
emerging PDT market."
Statements in this announcement about estimated results are
preliminary and based on partial information and management
assumptions. Except for the historical information presented, the
matters discussed in this news release are forward looking
statements that involve risks and uncertainties, including timely
development and acceptance of new products in new markets, the
impact of competitive products and pricing, the effect and timing of
relevant regulatory approvals, and the other risks detailed from
time to time in the company's public disclosure filings with the
U.S. Securities and Exchange Commission (SEC). Copies of the most
recent Forms 10K and 10Q are available upon request from
Laserscope's Investor Relations Department.
Laserscope designs, manufactures, sells and services an advanced
line of medical laser systems and energy delivery devices for the
hospital, outpatient surgical center and physician office markets.
It sells its products in the U.S., the U.K. and France through its
own direct sales force and serves twenty other countries in Europe,
the Middle East and the Asia-Pacific region through regional
distributors.
LASERSCOPE FINANCIAL SUMMARY
(Thousands except per share amounts)
(Unaudited)
Condensed Consolidated Statement of Operations
Three Months Ended 12 Months Ended
December 31, December 31,
1995 1994 1995 1994
Net revenues $6,991 $10,195 $30,133 $36,320
Costs of sales 3,746 4,998 14,792 16,918
------- ------- ------- -------
Gross margin 3,245 5,197 15,341 19,402
Operating expenses:
Research and development 813 826 3,838 3,589
Selling, general and
administrative 3,750 4,171 14,914 16,994
Restructuring expenses 419 -- 419 --
------- ------- ------- -------
4,982 4,997 19,171 20,583
Operating income (loss) (1,737) 200 (3,830) (1,181)
Interest and other
income, net 28 71 278 250
------- ------- ------- -------
Income (loss) before
income taxes (1,709) 271 (3,552) (931)
Provision for income taxes -- -- -- --
------- ------- ------- -------
Net income (loss) $(1,709) $271 $(3,552) $(931)
Net income (loss)
per share $(0.24) $0.04 $(0.51) $(0.13)
Shares used in per share
calculations 7,015 6,957 6,999 6,924
Condensed Consolidated Balance Sheet
December 31, December 31,
1995 1994
Assets
Current assets:
Cash, cash equivalents &
short-term investments $2,278 $6,602
Accounts receivable, net 5,543 8,066
Inventories 10,292 7,512
Other current assets 692 1,038
------- -------
Total current assets 18,805 23,218
Property and equipment, net 2,663 3,320
Other assets 2,114 783
------- -------
Total assets $23,582 $27,321
Liabilities and Shareholders' Equity
Current liabilities $ 6,241 $ 6,393
Obligations under capital leases 15 27
Shareholders' equity 17,326 20,901
------- -------
Total liabilities and
shareholders' equity $23,582 $27,321
CONTACT: Laserscope
Richard Wood, (IR/Media)
or
Thomas Boyd, (Financial) 408/943-0636
MANSFIELD, Mass. -- Jan. 30, 1996 -- Augat Inc.
(NYSE:AUG) today reported that for the fourth quarter ended December
31, 1995, it incurred a net loss of $9.5 million, or $0.48 per
share, compared with net income of $7.2 million, or $0.37 per share,
for the same period in 1994.
As reported on December 20, 1995, the fourth quarter of 1995
included restructuring costs and other charges totaling $23 million
pre-tax ($15.3 million after taxes, or $0.77 per share). Excluding
the restructuring and other charges, the Company earned $5.8 million
in net income, or $0.29 per share, for the fourth quarter of 1995.
For the year ended December 31, 1995, Augat's net income before
the restructuring and other charges was $22.9 million, or $1.16 per
share. Including the restructuring and other charges of $15.3
million after taxes, the company reported net income of $7.6
million, or $0.39 per share, for 1995 versus $26.2 million or $1.36
per share in 1994.
Sales for the 1995 fiscal year increased by one percent to
$534.9 million versus $530.7 million in 1994.
"Augat's results for 1995 were clearly mixed," said William R.
Fenoglio, Augat's President and Chief Executive Officer. "We have
already taken steps, through our restructuring plan, to improve our
competitiveness as well as our long-term return to shareholders."
During 1995, the Communications Division sales grew more than 30
percent, with strong growth in all key geographical locations. The
division recently captured new business with Cox, Time Warner and
Italy's Sirti, along with follow-on business in Korea.
"We are pleased with both the worldwide sales growth and long-
term international business growth potential in the Communications
Division," commented Fenoglio. "Recent wins in Japan, Australia,
Italy and Korea reinforce our strategy to focus our resources in the
communications arena."
For the year, Automotive Division sales worldwide were down by
15 percent. However, wiring sales decreased by 30 percent due to
the lower production run rates for both the Aerostar and the Mustang
car platforms. The automotive volumes were further depressed by the
delayed ramp-up of the new Chrysler mini-van. The weak wiring sales
were partially offset by growth in both domestic and European
automotive components markets.
The Interconnection Products Division's sales grew 7 percent in
1995, excluding the acquisition of Elastomeric Technologies Inc.
Worldwide, the division experienced strong demand in components for
PC modems, as well as connectors for portable communications and
high performance workstations.
"In addition, our Interconnection Products Division continued
its performance turnaround. Our move to a more focused product line
strategy and pruning of non-performing commodity lines is currently
on track," Fenoglio said. "The restructuring announced in December
will help us improve our overall competitiveness in our key product
lines: switches, sockets, terminal blocks and connectors."
Augat reported that incoming orders for the fourth quarter of
1995 were $135 million versus $140 million in the fourth quarter of
1994. The backlog at December 31, 1995 was $124 million compared to
$119 million at December 31, 1994.
"Augat is well positioned for the future," said Fenoglio. "We
continue to introduce new products and see continued growth,
particularly in the international segments of our business. Our on-
going objective is to generate at least 35 percent of our annual
sales from products introduced within the past three years."
Fenoglio continued, "During 1995 we made two strategic
investments: Photon Systems and Elastomeric Technologies, both of
which are adding new dimensions to our product offerings in the
Communications and Interconnection Products Divisions. In December,
we also announced our intent to acquire certain assets of Lindsay
Specialty Products. Lindsay Specialty Products is primarily a
leading manufacturer and global provider of RF distribution products
for the cable television (CATV), wired communications and wireless
industries. During 1996, we will continue to make investments for
the future. We expect to see solid earnings improvement in 1996,
recognizing that a major unknown is the yet-unpassed U.S.
Telecommunications Bill."
The Company also announced that the Board of Directors, on
January 29, 1996, approved a quarterly dividend of $0.04 per share
on the Company's common stock. The cash dividend will be paid on
February 29, 1996, to shareholders of record on February 12, 1996.
One of the largest manufacturers of connector products in the
world, Augat Inc., is pursuing a strategy for growth in
communications, automotive, computer and industrial markets through
customer partnerships, new-product introductions, strategic
acquisitions and ongoing productivity measures.
AUGAT INC.
STATEMENTS OF CONSOLIDATED INCOME
For the Three Months and Twelve Months ended Dec. 31, 1995 and
1994
(Dollars in thousands, except per share data)
Three Months Ended Twelve Months Ended
1995 1994 1995 1994
Net sales $137,874 $141,195 $534,873 $530,706
Cost of products sold 110,146 114,417 423,699 420,647
Gross margin 27,728 26,778 111,174 110,059
Selling, general and
administrative
expenses 21,201 15,313 75,998 66,219
Restructuring costs 18,700 18,700
Income from operations(12,173) 11,465 16,476 43,840
Other income (expense) -
net (2,243) (900) (4,716) (4,140)
Income (loss) before taxes on income (14,416)
10,565 11,760 39,700
Provision (credit) for taxes on income (4,946)
3,415 4,160 13,500
Net income (loss) ($9,470) $7,150 $7,600 $26,200
Earnings(loss) per
share ($0.48) $0.37 $0.39 $1.36
Average common shares
outstanding 19,924 19,446 19,727 19,280
NOTE:
Restructuring costs and other charges in the fourth
quarter and twelve months ended December 31, 1995 as follow:
Restructuring costs $18,700
Other charges $4,300
Total $23,000
CONTACT: Ellen B. Richstone or James R. Buckley
Chief Financial Officer Account Executive
Augat Inc. Sharon Merrill Associates, Inc.
508/543-4300 617/262-1800
GOSHEN, Ind., Jan. 30, 1996 -- href="chap11.cobra.html">Cobra Industries, Inc. (UL:
COI) announced today that it has closed a Court-approved agreement
to sell substantially all of its assets to the privately-held Forest
River Industries, Inc. Cobra's remaining principal asset, the
TransCon regional van conversion business in Texas, is currently
being marketed for sale. The company has been operating under
Chapter 11 of the United States Bankruptcy Code since October 27,
1995.
Forest River's management, which replaces Cobra's senior
management team effective immediately, said it plans to resume
fulfilling customer orders as soon as possible. Employees who have
been on lay-off for the past few weeks are being recalled to work at
the company's Indiana and California operations. Forest River also
expects to maintain the company's current network of dealers and
suppliers.
Proceeds from the sale have been used to repay Cobra's existing
debt with Congress Financial Corporation, New York, which had
provided debtor- in-possession (DIP) financing and a term loan.
Cobra Industries, headquartered in Goshen, Indiana, was one of
North America's largest recreational vehicle producers, with
manufacturing facilities in Indiana, California and Texas. The
company produced conventional trailers, park trailers, folding
camper trailers and van conversions.
CONTACT: James J. Roop or Robert G. Berick of Watt, Roop & Co.,
216-566-7019
SECAUCUS, N.J., Jan. 30, 1996 --
Petrie Retail Inc., a
privately held company, announced today that Edwin J. Holman, 48,
will join the company as President and Chief Operating Officer
effective immediately.
"We are excited to be adding an executive with Ed Holman's
operating experience and expertise to the talented management team
we have been assembling over the past year," said Verna Gibson,
Chairman and Chief Executive Officer. "Our goal was to fill the
positions of President and Chief Operating Officer on a permanent
basis as quickly as possible, and we have not only fulfilled that
objective, but in the process have succeeded in attracting one of
the most highly skilled, results-oriented retailing executives in
the industry. His command of virtually all aspects of the retail
business - from operations to finance and strategic planning - is
the ideal complement to the wealth of merchandising skill and
experience Petrie possesses."
Mr. Holman said, "I am very pleased to be joining an
organization with the strength of franchise and depth of management
that Petrie boasts. Petrie has tremendous potential. I joined this
team not just to complete the reorganization, which I am eager to
do, but to identify and build upon the exciting opportunities that
lay ahead."
Ms. Gibson added, "All of us at Petrie appreciate the diligent
work of Gil Osnos, who fulfilled the roles of President and Chief
Operating Officer on a temporary basis since November while we
conducted our search for a long-term executive." Mr. Osnos is
Chairman of Osnos & Co., a leading crisis and turnaround management
firm.
Mr. Holman began his retail career in 1964 at Milgrim Food
Stores. Most recently, he served as President and Chief Executive
Officer of Woodward & Lothrop, a
department store chain which also
operated John Wanamaker
Philadelphia, joining the company shortly
after it filed for Chapter 11 in June of 1994. He remained with the
Company until the sale of its operations in December, 1995.
Prior to joining Woodward & Lothrop, Mr. Holman worked for
eleven years at Carter Hawley Hale Stores, where he ultimately rose
to the position of Vice Chairman and Chief Operating Officer.
During his tenure at Carter Hawley Hale, he served in a variety of
other positions including Executive Vice President, Operations;
Senior Vice President, Operations at the company's Neiman Marcus
division; and Vice President and Controller. He has also worked at
Macy's Midwest in a variety of financial and operational positions.
Mr. Holman earned his Bachelor of Arts, Bachelor of Science and
Master of Business Administration from Rockhurst College. He is
married and has two children.
Petrie Retail Inc., a privately held company based in Secaucus,
New Jersey, operates women's apparel stores under the Petrie,
Stuarts, Marianne, Jean Nicole, Winkleman's, MJ Carroll, Rave and G
+ G names. In October 1994, as a result of the difficult retailing
environment, Petrie Retail filed a voluntary petition for protection
under chapter 11 of the U.S. bankruptcy code.
CONTACT: Tom Daly, Dawn Dover or Adam Weiner, all of Kekst and
Company, 212-593-2655
DALLAS, TX -- Jan. 30, 1996 -- href="chap11.spectra.html">Spectravision, Inc.
announced today that it has received five bids from parties
interested in acquiring the company as part of its solicitation of
sponsors for its plan of reorganization.
The deadline for submitting such bids was Jan. 29, 1996 as set
in a Dec. 20, 1995 court order filed in the U.S. Bankruptcy Court in
Wilmington, Del.
Spectravision said it was evaluating the bids and would consult
with the official committee of unsecured creditors (the "Committee")
regarding each of the proposals. The company said that it and the
committee may initiate follow-up negotiations with the potential
plan sponsors that may lead to the sponsors modifying their
proposals. Spectravision said that it has set Feb. 14, 1996 as the
deadline for selecting a sponsor.
As previously announced, Spectravision filed for protection
under Chapter 11 of the U.S. Bankruptcy Code on June 8, 1995 in
order to obtain additional financing and facilitate the
implementation of its operational turnaround while it pursued a
planned financial restructuring.
Spectravision, Inc. is the leading supplier of in-room, pay-per-
view entertainment and information services to the worldwide lodging
industry. Through its STARPATH(TM) technology, it is the only
company in the lodging industry delivering compressed digital video
and digital video-on-demand to hotels in North America. Founded in
1971, the company markets its products and services in the U.S.,
Canada, Mexico, the Caribbean, Australia and the Pacific Rim.
CONTACT: Spectravision, Inc.,
Robert Mead, 212/484-6701
SANTA CRUZ, Calif. -- Jan. 30, 1996--The Santa
Cruz Operation, Inc. (NASDAQ NM: SCOC) today announced results for
its first fiscal quarter ending December 31, 1995.
Revenues for the quarter were $47,914,000 compared to
$47,982,000 for the first quarter of 1995. Excluding the after tax
impact of non-recurring charges of $38,363,000, relating to the
acquisition of the UNIX business from Novell in December, 1995, net
profits for the quarter were $2,605,000 or $0.08 per share. Results
for the first quarter including the non-recurring charges amounted
to a net loss of $32,703,000 or $0.99 per share. For the same
quarter in 1995 a net loss of $9,328,000 or $0.30 per share was
reported; excluding non-recurring charges related to the acquisition
of Visionware Limited in December, 1994, net profits for the quarter
were $3,937,000 or $0.12 per share.
The acquisition of the UNIX business from Novell was completed
in the last month of the first quarter. Consistent with industry
practices a non-recurring charge of $38,363,000 was recorded,
primarily related to purchased research and development which had
not yet reached technological feasibility.
John Jarvis, chief financial officer, said, "Reductions in
inventory levels maintained by some of the company's channel
partners were a contributing factor to the leveling in revenues and
came about as a result of a decision on how best to manage multiple
product offerings in our distribution channels. We have in this
first quarter realized the benefit of prior action taken to reduce
our operating costs, improve efficiency and restructure segments of
the business: we shall continue to look for similar actions
throughout the company, particularly as we assimilate the UNIX
business recently acquired from Novell."
Alok Mohan, president and CEO of SCO, said, "We made some
significant advances in the quarter having completed the acquisition
of the UNIX business. We are excited about our Client Integration
business, our strategy for Layered Products, and our up-coming
Internet announcements. Additionally, we are receiving positive
feedback from OEM's regarding our acquisition of the UNIX business,
potential for enhanced relationships, and a consequent strengthening
of the channel."
SCO, The Santa Cruz Operation, and the SCO logo are trademarks
or registered trademarks of The Santa Cruz Operation, Inc. in the
USA and other countries. UNIX is a registered trademark in the US
and other countries, licensed exclusively through X/Open Company
Limited. All other brand or product names are or may be trademarks
of, and are used to identify products or services of, their
respective owners.
THE SANTA CRUZ OPERATION, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except earnings per share)
Three months ended
December 31,
1995 1994
------------------
(unaudited)
Net revenues:
Licenses $43,175 $42,628
Services 4,739 5,354
Net revenues 47,914 47,982
Cost of revenues:
Licenses 7,707 7,964
Services 4,571 4,829
Total cost of revenues 12,278 12,793
Gross margin 35,636 35,189
Operating expenses:
Research and development 7,945 7,451
Sales and marketing 19,722 18,833
General and administrative 4,930 4,367
Non-recurring charges 38,363 14,095
Total operating expenses 70,960 44,746
Operating losses (35,324) (9,557)
Other income (expense):
Interest income (expense), net 629 899
Other income (expense) (194) 69
Loss before income taxes (34,889) (8,589)
Income taxes (benefit) (2,186) 739
Net loss $(32,703) $(9,328)
Net loss per share $(0.99) $(0.30)
Common and common equivalents
used in computing net loss
per share 32,968 30,754
THE SANTA CRUZ OPERATION, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except for share data)
December 31, September 30,
1995 1995
------------------------------
(unaudited)
Assets
Current assets:
Cash and cash equivalents $23,972 $32,074
Short-term investments 17,530 14,816
Receivables, net 47,767 45,009
Deferred tax asset 3,896 3,896
Other current assets 11,312 8,544
Total current assets 104,477 104,339
Property and equipment, net 15,249 14,991
Other assets 28,944 12,540
Total assets $148,670 $131,870
Liabilities and Shareholders' Equity
Current liabilities:
Royalties payable $4,673 $6,852
Trade accounts payable 10,908 10,207
Income taxes payable 6 31
Accrued expenses and other
current liabilities 23,656 18,991
Customer deposits and
deferred revenues 8,161 6,086
Total current liabilities 47,404 42,167
Other long-term liabilities 8,208 7,521
Shareholders' Equity
Common stock, net, authorized 100,000,000 shares
Issued and outstanding 37,167,171 and
30,844,003 shares 127,027 83,146
Cumulative translation adjustment (386) (84)
Retained earnings (33,583) (880)
Total shareholders' equity 93,058 82,182
Total liabilities and
shareholders' equity $148,670 $131,870
CONTACT: Lippert/Heilshorn & Associates, Inc.
John Nesbett, 212/838-3777
or
The Santa Cruz Operation, Inc.
Monika Laud, 408/427-7421
CAMBRIDGE, Mass., Jan. 30, 1996 -- Polaroid Corporation
(NYSE: PRD) reported today that worldwide sales for the fourth
quarter of 1995 were $674.8 million, a two percent decrease,
compared with sales of $685.9 million in the fourth quarter of 1994.
The net loss for the fourth quarter of 1995 was $111.0 million, or
$2.44 primary loss per common share, compared to net earnings of
$57.3 million, or $1.23 primary earnings per common share, in the
fourth quarter of 1994. Excluding the pre-tax special charge for
restructuring and other expenses of $170 million and the related tax
effect, the primary loss per common share for the fourth quarter of
1995 would have been $.01.
The fourth quarter special charge for restructuring and other
expenses, announced on December 19, 1995, related to the severance
and early retirement programs and write-off of certain assembly
equipment, fixed assets and inventory. The special charge for this
program is expected to total approximately $265.0 million. Of that
amount, $170.0 million was recorded in the fourth quarter of 1995
and an estimated $90 million to $100 million will be charged in the
first quarter of 1996. The total special charge exceeds an earlier
estimate due to the fact that the severance program is expected to
result in the elimination of 1,600 positions worldwide, 300 more
than originally anticipated, and will include a higher proportion of
salaried employees. The company now expects to realize annualized
savings of more than $110 million from the December-announced
program.
Operating profit for the fourth quarter of 1995, excluding the
special charge, was $29.4 million, compared to $83.9 million for the
fourth quarter of 1994. This decrease was due to less-than-expected
revenues, particularly in the U.S., and higher overhead expenses,
including significant instant film marketing promotions and
increased spending in the company's new digital imaging businesses.
Including the special charge, the loss from operations for the
fourth quarter of 1995 was $140.6 million.
U.S. sales decreased in the fourth quarter of 1995 to $328.9
million compared with $346.9 million in the same period last year,
due primarily to the price promotions offered on instant integral
film in the U.S. and Europe. International sales were $345.9
million in the fourth quarter of 1995, compared with $339.0 million
for the fourth quarter of 1994.
Retail sales of instant integral film in the United States were
up six percent in the fourth quarter of 1995 compared with the same
period in 1994, and were up 13 percent in December, despite the
generally weak retail environment during the holiday season. Dealer
inventories of instant integral film were about ten percent lower
than at year-end 1994. The company believes that these retail
indicators signal that the combination of new price promotions and
the dealer inventory adjustment program were well received.
Similarly, there are encouraging signs in Western Europe.
Gary T. DiCamillo, Polaroid chairman and chief executive officer
said, "1995 was an unusual year for Polaroid due to two major
restructurings and the dealer inventory adjustment program. As a
result, we expect to reduce the employee population by approximately
2,500 people worldwide compared to year-end 1994. We are shifting
our research resources to projects with the greatest potential and
consolidating manufacturing operations for increased efficiencies.
We have taken action to significantly reduce the losses in our new
digital imaging businesses in 1996. Finally, we have made major
changes in our sales and distribution methods in markets around the
world - inventory adjustment programs in the United States and
Europe, direct distribution in Japan, increased investments in
emerging markets, and increased promotional expenses. All these
steps will increase profits as we move forward."
For the full year, 1995 worldwide sales decreased three percent
to $2.24 billion, compared with $2.31 billion in 1994. U.S. sales
for the full year 1995 were $1.02 billion, compared with $1.16
billion for 1994. International sales for the full year 1995 were
$1.22 billion, compared with $1.15 billion in 1994. Russia
continued its impressive growth in 1995, with $196.3 million in
sales, a 27 percent increase compared with $154.3 million in 1994.
The company sold 5.4 million cameras in 1995, compared with 6.4
million cameras in 1994, primarily due to lower sales of Captiva
than in the prior year. Instant film shipments decreased slightly
for the full year compared to 1994, reflecting the dealer inventory
adjustment program in the United States and Europe and a change to
direct distribution in Japan.
The net loss for the full year 1995 was $140.2 million, or
$3.09 primary loss per common share, compared with earnings of
$117.2 million for the full year 1994, or $2.49 primary earnings per
common share. The full year 1995 results include special charges
totaling $247.0 million for the two early retirement and severance
programs offered in 1995 and other special charges associated with
the program announced in December 1995. Excluding these items, the
full year 1995 primary earnings per common share would have been
approximately $4.5 per share.
The loss from operations for the full year 1995 was $157.8
million, compared with an operating profit of $200.3 million in
1994. Excluding the special charges for restructuring and other
expenses of $247.0 million, operating profit for 1995 would have
been $89.2 million.
Total losses in Polaroid's digital imaging businesses were
approximately $190 million compared to $180 million in 1994.
Shipments of the new graphics imaging product, Dry Tech Imagesetting
Film, began in October 1995, and the company plans to ship a number
of new products for the graphic arts market in 1996. Shipments of
Helios medical imaging systems doubled in 1995, compared to 1994.
Solid growth continues in the electronic imaging systems business.
For the full year 1995, the effective tax rate was 30 percent,
versus 27 percent for 1994. For purposes of determining the after-
tax special charges, the company applied a statutory tax rate of 35
percent. The net after-tax foreign currency exchange loss from
balance sheet translation for the full year 1995 amounted to $.03
per common share, compared with a $.02 loss for 1994.
Polaroid Corporation, with sales of more than $2.2 billion, is
the worldwide leader in instant imaging. Polaroid supplies instant
photographic cameras and films, conventional cameras and films,
videotapes and electronic imaging products to markets worldwide,
including amateur and professional photography, industry, science,
medicine, government and education.
POLAROID CORPORATION AND SUBSIDIARY COMPANIES
Condensed Consolidated Statement of Earnings
Periods ended DECEMBER 31, 1995 and DECEMBER 31, 1994
(In millions, except per share data)
Fourth Quarter Full Year
1995 1994 1995 1994
Net sales:
United States $328.9 $346.9 $1,019.0 $1,160.3
International 345.9 339.0 1,217.9 1,152.2
Total net sales 674.8 685.9 2,236.9 2,312.5
Cost of sales 400.4 388.2 1,298.6 1,324.2
Marketing, research,
engineering and
administrative expenses 245.0 213.8 849.1 788.0
Restructuring and other 170.0 --- 247.0 ---
Total costs 815.4 602.0 2,394.7 2,112.2
Profit/(loss) from operations (140.6) 83.9 (157.8) 200.3
Other income (0.9) 2.0 8.5 7.0
Interest expense 13.4 13.2 52.1 46.6
Earnings/(loss) before
income taxes (154.9) 72.7 (201.4) 160.7
Federal, state and
foreign income tax
expense/(benefit) (43.9) 15.4 (61.2) 43.5
Net earnings/(loss) ($111.0) $57.3 ($140.2) $117.2
Primary earnings/(loss) per
common share ($2.44) $1.23 ($3.09) $2.49
Fully diluted earnings
per common share (A) $1.16 (A) $2.42
Cash dividends per
common share $0.15 $0.15 $0.60 $0.60
Weighted average common shares
used for primary earnings per
share calculation
(in thousands) 45,456(B) 46,590(B) 45,404(B) 46,992(B)
Common shares outstanding at
end of period (in thousands) 45,533 45,998 45,533 45,998
(A) Fully diluted earnings per share are not stated because they
are greater than primary earnings per common share.
(B) The weighted average shares used to calculate primary
earnings per common share include assumed conversion of options
outstanding, as appropriate.
POLAROID CORPORATION AND SUBSIDIARY COMPANIES
Supplementary Financial Information
(In millions)
Fourth Quarter
1995 1994
EARNINGS STATEMENT DATA FOR FOREIGN CURRENCY
EXCHANGE
After-tax foreign currency exchange
gain/(loss) ($2.0) ($4.3)
Twelve Months
1995 1994
SELECTED CASH FLOW DATA
Additions to property, plant, and equipment $167.9 $146.7
Depreciation $132.7 $118.2
At End of Fourth Quarter
BALANCE SHEET 1995 1994
Current Assets:
Cash and cash equivalents $73.3 $143.3
Short-term investments 9.8 85.6
Receivables 550.4 541.0
Inventories:
Raw materials 137.2 112.4
Work-in-process 233.7 231.2
Finished goods 244.6 233.8
Total inventories 615.5 577.4
Prepaid expenses and other assets 208.5 141.4
Total current assets 1,457.5 1,488.7
Net property, plant and equipment 691.0 747.3
Deferred tax assets 113.3 80.7
Total assets $2,261.8 $2,316.7
Current liabilities:
Short-term debt $160.4 $117.1
Current portion of long-term debt 39.7 35.9
Payables and accruals 274.9 275.7
Compensation and benefits 197.4 121.4
Federal, state and foreign income
taxes 46.6 51.8
Total current liabilities 719.0 601.9
Long-term debt 526.7 566.0
Accrued postretirement benefits 257.2 247.2
Accrued postemployment benefits 41.2 37.2
Stockholders' equity:
Common stock, $1 par value 75.4 75.4
Additional paid-in capital 401.9 387.2
Retained earnings 1,525.8 1,692.1
Less: Treasury stock, at cost 1,205.4 1,174.5
Deferred compensation 80.0 115.8
Total stockholders' equity 717.7 864.4
Total liabilities and equity $2,261.8 $2,316.7
CONTACT: Robert Guenther, 617-386-3112 or guenthrpolaroid.com or
Nancy Childs, 617-386-3122 or childsnpolaroid.com both of Polaroid/