SPOKANE, Wash. -- Feb. 1, 1996--Egghead Inc.
(NASDAQ: EGGS) today reported operating results for its fiscal third
quarter ended Dec. 30, 1995, and the roll-out of its new retail
stores.
The company's consolidated revenue for the third quarter of
fiscal 1996 was $216.4 million, a decrease of 15 percent from the
$254.3 million in revenue for the same period of fiscal 1995. Net
loss for the quarter was $941,000, or 5 cents per share, compared to
net earnings of $3.8 million, or 22 cents per share, for the same
period of the previous year. Net earnings for the third quarter
last year were boosted by a non-recurring insurance recovery of
$1.65 million, or 6 cents per share.
For the nine months ended Dec. 30, 1995, the company reported
consolidated revenue of $582.2 million, a 9 percent decrease from
the $642.4 million in revenue for the same period of fiscal 1995.
The net loss for the first nine months of fiscal 1996 was $7.6
million, compared to net earnings of $1.7 million for the same
period of the previous year.
The company's losses during the third quarter and year-to-date
included approximately $712,000 and $4.3 million, respectively, of
non-recurring charges to complete the move of its operations to
Spokane and continue re-engineering the company. The restructuring
includes hiring a majority of new staff and management, implementing
new business and information systems, and the roll-out of Egghead's
new retail stores.
Comparable store sales for the third quarter of fiscal 1996
decreased 6.6 percent from the same period last year. Total retail
sales for the third quarter were $115.3 million, a decrease of 8
percent. The decline in comparable store sales was attributable to
a poor holiday season for retail and significant disruptions as a
result of relocating the company's merchandising and advertising
departments, as well as its Sacramento distribution center. Total
retail sales were also adversely effected by a reduction in the
number of overall stores in full operation to 169, down from 177 in
the same period last year.
During the third quarter, Egghead rolled out 11 new stores on
both replacement and new sites, for a total of 12 new stores in
operation to date.
"We are extremely excited about the new stores," stated Terry
Strom, chairman and chief executive officer. "Our new format is
easier to shop, better organized and far more comfortable than
superstores. It offers all customers a stronger product selection,
software demonstration stations and more informative signage. We've
got a winning 21st-century retail formula. We plan to keep
executing and to roll out another eight new stores by April, and
another 20 during the next fiscal year."
Corporate, government and educational (CGE) sales for the
quarter were $94.7 million, a decrease of 19 percent over the same
period for the previous year. The decline in CGE sales was
attributable to the loss of a number of corporate customers as a
result of the company's relocation. "In the near term," said Strom,
"we are tightening CGE's focus on improving outbound telemarketing
and sales training, and concentrating on higher margin and cross-
selling opportunities."
"While we are disappointed with our sales performance," noted
Brian Bender, vice president and chief financial officer, "our
balance sheet remains strong and we continue to execute our long-
range plan. The company has current assets of $303 million and no
long-term debt. We can continue to fund the roll-out of our
promising new stores and electronic commerce program.
"Despite a soft retail season and disruptions with corporate
customers, we see positive returns on the relocation and
restructuring of the company. Our selling, general and
administrative expenses have declined 9.5 percent from one year ago
and we expect to achieve even greater efficiencies in the coming
periods."
Egghead Inc. is a leading retailer of computer software and
accessories, with 169 retail stores located throughout North
America. The company also serves businesses, government agencies
and educational institutions through a field sales force. Its
corporate staff and call center are headquartered in Spokane.
ELEKOM is a subsidiary of Egghead developing on-line commerce and
procurement systems.
Consolidated Statements of Operations
(Amounts in thousands, except per share data)
13 Weeks Ended 39 Weeks Ended
(unaudited) (unaudited)
Dec. 30, Dec. 31, Dec. 30, Dec. 31,
1995 1994 1995 1994
Net sales $216,364 $254,283 $582,216 $642,442
Cost of sales, including
certain buying, occupancy,
and distribution costs 193,085 222,444 519,933 566,061
Gross margin 23,279 31,839 62,283 76,381
Selling, general, and
administrative expense 22,808 25,210 69,164 68,461
Depreciation and amortization
expense, net of amounts
included in cost of sales 2,436 2,236 7,228 7,000
Operating income (loss) (1,965) 4,393 (14,109) 920
Theft insurance recovery 0 1,650 0 1,650
Other income (expense):
Interest income 358 168 1,949 506
Interest expense (37) (16) (74) (27)
Other, net 84 55 (253) (206)
Income (loss) before
income taxes (1,560) 6,250 (12,487) 2,843
Income tax (provision)
benefit 619 (2,437) 4,870 (1,109)
Net income (loss) $ (941) $ 3,813 $ (7,617) $ 1,734
Earnings (loss) per share (5 cents) 22 cents (44 cents) 10 cents
Weighted average common shares
and common equivalent shares
outstanding 17,541 17,380 17,401 17,231
Egghead Inc. and Subsidiaries
Consolidated Balance Sheets
(Dollars in thousands)
Dec. 30, Dec. 31,
1995 1994
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 16,408 $ 24,323
Accounts receivable, net of
allowance for doubtful accounts 101,764 91,983
Merchandise inventories 169,581 168,323
Prepaid expenses and other
current assets 8,686 3,429
Current deferred income taxes 6,760 7,077
Total current assets 303,199 295,135
Property and equipment, net 30,345 21,269
Non-current deferred income taxes 2,918 3,320
Other assets 1,876 2,244
$338,338 $321,968
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes payable to banks $ -- $ --
Accounts payable 172,975 149,810
Accrued liabilities 21,042 24,256
Income taxes payable -- 605
Current portion of capital
lease obligations 262 292
Total current liabilities 194,279 174,963
Capital lease obligations, less
current portion 355 153
Deferred rent 1,267 1,421
Total liabilities 195,901 176,537
Commitments and contingencies
Shareholders' equity:
Common stock, 1 cent par value:
50 million shares authorized;
17,543,072 and 17,166,031 shares
issued and outstanding, respectively 175 172
Additional paid-in capital 124,082 120,572
Retained earnings 18,180 24,687
Total shareholders' equity 142,437 145,431
$338,338 $321,968
CONTACT: Egghead Inc., Spokane
Brian Bender, 509/891-4851
or
Fi.Comm Ltd.
Michael Newman, 800/790-0569
BIRMINGHAM, Ala., Feb. 1, 1996 - Torchmark Corporation
(NYSE: TMK) announced today that it is exploring a strategic
restructuring that could include dividing Torchmark into separate
publicly-traded operating companies. R. K. Richey, Chairman and
CEO, said that "the current operating environment has led us to
conclude that this may be the best way to maximize shareholder
value." The investment banking firm of Morgan Stanley has been
engaged as Torchmark's financial advisor for this purpose.
Torchmark also reported that in addition to its previously
announced plans to sell Torch Energy Advisors, it has decided to
dispose of its Black Warrior investment and to account for both as a
discontinued operation, thus modifying the presentation of its
financial results in 1995 and prior periods to set forth separately
the results attributable to the discontinued energy segment. Black
Warrior was written down in the fourth quarter of 1995 to its
estimated realizable value concurrent with Torchmark's decision to
dispose of its energy segment. The writedown was primarily due to
disappointments in obtaining significant gas production from lower
coal seams. An after-tax charge of $130 million, or $1.82 per share
for Black Warrior is included in loss from discontinued operations.
1995's net operating income from continuing operations was $3.93
per share, up 5% from $3.74 in 1994 (as modified to reflect
discontinued operations). The fourth quarter's net operating income
from continuing operations was $1.03 per share, up 13% from $.91 (as
modified) in 1994's comparable period.
1995's net loss from discontinued operations was $1.80 per
share, compared to $.07 of income in 1994 (as modified). The fourth
quarter's net operating loss from discontinued operations was $1.84
per share, versus $0.02 of income (as modified) in 1994's comparable
period.
1995's operating income before adjustment for discontinued
operations and the writedown of Black Warrior was $3.95 per share,
up 4% from $3.81 in 1994. The fourth quarter's operating income per
share from continued and discontinued operations was $1.01 per
share, up 9% from $.93 in the same period in 1994.
1995's net income, which includes the income or loss from
discontinued operations, realized investment losses, and the related
adjustment to deferred policy acquisition costs, was $143 million,
or $2.00 per share, versus $269 million, or $3.72 per share, last
year. The fourth quarter's net loss was $56 million, or $.79 per
share, compared to $64 million of income, or $.89 per share, last
year. Net of acquisition costs, American Income's contribution to
net income was $.24 per share for 1995 and $.06 per share for the
fourth quarter.
Pre-tax operating income from insurance operations (excluding
Liberty's litigation) increased 15% to $486 million, led by American
Income, Globe and United Investors:
Dollars in Millions
Excluding American Income
Twelve Twelve Twelve Twelve
Months % of Months % of Months % Of Months % Of
1995 Premium 1994 Premium 1995 Premium 1994 Premium
Underwriting
income before
administrative
expenses
Life $212.1 27.5 $166.8 27.7 $165.6 26.8 $160.2 27.6
Health 150.4 19.9 148.9 19.2 135.5 19.0 146.5 19.1
Annuity 12.5 9.4 12.5 9.4
374.9 325.1 313.5 316.1
Other income 3.1 3.8 3.1 3.8
Administrative
expenses
excluding
Liberty's
litigation (98.8) (6.4) (86.3) (6.2) (90.5) (6.7) (85.0)(6.2)
Underwriting
income excluding
Liberty's
litigation 279.2 242.6 226.1 234.9
Net Investment
Income 396.2 346.8 356.6 340.9
Required
investment
income on
net
liabilities (189.8) (165.8) (176.1) (163.8)
Pre-tax operating
income from
insurance
operations
excluding
Liberty's
litigation $485.7 $423.6 $406.6 $412.0
Excluding American Income, underwriting income declined due to
lower health insurance premiums ($714 million versus $767 million).
The following chart illustrates Torchmark's emphasis on life
insurance, where life insurance sales were up $68 million, or $45%,
to $218 million (sales were up $24 million, or 17%, excluding
American Income) and life annualized premium in force was up $72
million, or 9%, to $869 million:
Dollars in Millions
Premium Issued Premium In Force
Twelve Twelve At At
Months Months % Year End Year End %
1996 1994 Change 1995 1994 Change
Direct response $63.9 $48.3 23 $180.5 $154.1 17
American Income
Agency 51.2 7.4 592 169.6 147.0 15
United American
Agencies 26.2 11.6 125 49.8 39.1 27
Liberty National
Home Service 48.5 51.5 (6) 297.4 291.8 2
United Investors
Agency 10.6 8.7 22 78.7 73.1 8
Other 17.6 22.3 (21) 93.4 91.9 2
$218.0 $149.8 45 $869.4 $797.0 9
Life premiums grew 28% to $772 million. Health premiums were
$755 million, down 2%. Total revenue increased 10% to $2.1 billion.
Adjusting for the purchase of American Income and the classification
of the energy operations as discontinued, life premiums were $618
million, up 7%, health premiums were $714 million, down 7%, and
total revenue was flat at $1.8 billion.
Total investment income, excluding that from American Income,
was even with last year. This was due to growth in invested assets
and portfolio restructuring, offset by a decline in new money rates.
Pre-tax litigation costs at Liberty National were $12 million,
or $.17 per share, for the year and $4 million, or $.06 per share,
in the fourth quarter. There is no discernible trend upon which to
predict future litigation amounts. Currently, there are 170 cases
(excluding stayed cancer cases) pending in Alabama which seek
punitive damages. In December, the Alabama Supreme Court
unanimously affirmed the previously reported settlement in the
Robertson cancer policy class action lawsuit. A petition for
rehearing has been filed in the case.
Noninsurance pre-tax operating income grew 12% to $91 million
due to increased investment management fees in Waddell and Reed.
For the quarter, Waddell and Reed's pre-tax operating income
increased 25% from the year-ago period to $25 million. Investment
product collections were even with last year at $1.2 billion.
Fourth quarter collections were $354 million, up 20% from the third
quarter and up 39% from 1994's fourth quarter. Total assets under
management increased 26% to $18.3 billion.
Return on equity (excluding the effect of SFAS 115 and
discontinued operations) was 18.5% versus 19.7% last year. Total
assets at December 31, which includes net assets in discontinued
operations of $156 million, were $9.3 billion and shareholders'
equity was $1.6 billion. Book value per share was $22.17 ($20.33
excluding the effect of SFAS 115).
/CONTACT: Lee Bartlett of Torchmark Corporation, 205-325-4204/
FAIRVIEW HEIGHTS, Ill., Feb. 1, 1996 - Zeigler Coal
Holding Company (NYSE: ZEI) today released the following:
Financial Summary Table
(In millions, except per share data)
Quarter Ending Twelve Months
12/31/95 12/31/94 12/31/95 12/31/94
(Unaudited) (Unaudited)
Tons Sold 9.0 9.2 36.9 40.0
Total Revenues $191.6 $196.6 $784.1 $ 870.9
Net Income (loss) (50.8) 6.5 (11.2) 25.1
Net Income before
Special Items.. 13.3 11.4 43.1 38.6
Earnings (loss)
Per Share (1.79) .23 (.40) 1.01
Earnings Per Share
before Special Items.. .47 .40 1.52 1.55
EBITDA before
Special Items.... 41.1 45.1 152.8 167.4
EBITDA Per Share
before Special
Items.... 1.45 1.59 5.38 6.72
Zeigler Coal Holding Company today reported net income of $43.1
million, or $1.52 per share, for the year ended December 31, 1995,
excluding special items that materially impacted results.
Excluding non-cash special items (after taxes) consisting of a
$61.8 million charge for asset impairments and a $2.3 million charge
for the quarterly SAU revaluation, Zeigler's fourth quarter net
income was $13.3
million, or 47 cents per share, on 28.4 million shares. In the same
quarter last year, net income before a charge for debt prepayment of
$8.4 million and a benefit from the SAU revaluation of $3.5 million,
was $11.4 million, or 40 cents per share, on 28.4 million shares.
Including special items for the full year, Zeigler reported a
loss of $11.2 million, or 40 cents per share, on 28.4 million
shares, versus income in 1994 of $25.1 million, or $1.01 per share,
on 24.9 million shares. For the quarter, Zeigler's loss of $50.8
million, or $1.79 per share, compared with 1994 earnings of $6.5
million, or 23 cents per share.
In the fourth quarter, the company adopted the provisions of
Statement of Financial Accounting Standards (SFAS) No. 121,
"Accounting for the Impairment of Long-Lived Assets and for Long-
Lived Assets to be Disposed Of." This adoption, along with other
associated mine closing costs, resulted in a fourth quarter 1995
after-tax charge to earnings of $61.8 million, or $2.18 per share.
This includes a $36.8 million charge primarily related to three Old
Ben Coal Company operations in Southern Illinois that are expected
to close or become idle in 1996. It also includes an additional $25
million charge related to asset write-downs and accelerated accruals
at Wolf Creek Collieries Company in Eastern Kentucky, which was
idled on October 1, 1995. For the year, the company also recognized
a second quarter gain of $9.9 million, or 35 cents per share, on
settlement of a contract dispute with SIGECO.
Fourth quarter revenues totaled $191.6 million, compared to
$196.6 million in 1994, a 2.5% decrease. For the year, total
revenues were $784.1 million, compared to $870.9 million in 1994.
Better-performing coal assets point to positive future
For the fourth quarter, coal revenues totaled $184.2 million,
down 4% from the fourth quarter of 1994. Coal revenue for the year
was $754.5 million, down 11% from 1994.
Average production costs of $16.67 per ton in the second half of
1995 showed a 9% improvement from first half costs, largely
resulting from the company's strategies to reduce exposure to
uncommitted high-sulfur coal and to close the Wolf Creek mine.
Average production costs per ton for the year decreased 42 cents
(2%) from $17.94 in 1994 to $17.52 in 1995. Reductions were driven
mainly by a larger percentage of overall production from lower-cost
Powder River Basin coal; aggressive liability management; and
operating improvements at certain operations in the Midwest and
Appalachia.
According to Zeigler President and Chief Executive Officer Chand
B. Vyas, "I am pleased with our performance in 1995, following a
first half that was marred by poor market conditions, particularly
in the Midwest, and higher costs associated with the Wolf Creek
mine. 1995 was an important transition year, and in the second half
we made the difficult but necessary decisions to idle Wolf Creek and
close or idle four Illinois Basin mines. This will reduce exposure
to low-margin sales in the spot market, enhance our cost-reduction
efforts and allow us to operate in areas where we can earn an
improved return on our investment."
In particular, major areas of improvement targeted in 1996
include: 1) increased productivity at certain Appalachian
operations, 2) improved profitability from coal sales previously
supplied by Wolf Creek Collieries Company, 3) enhanced returns in
the Midwest as the company increases its mix of committed, higher-
margin sales, and 4) reinvestment of cash flows to higher-margin
businesses.
Non-mining contributions dramatically increase in 1995
Non-mining revenues climbed $2.2 million, or 42%, in the fourth
quarter. For the year, non-mining revenues rose $8.1 million, or
38%, primarily due to a continued increase in the export terminal
business resulting from rising global demand for U.S. coal. Other
non-mining improvements included increased contributions from the
ENCOAL clean coal plant, gains due to continued pruning of non-
performing surplus assets, increased farm and timber income and
higher coal leaseouts. Non-mining earnings before interest and taxes
totaled $9.2 million, more than quadrupling the company's 1994
performance.
"Our non-mining businesses had an outstanding year in 1995,
which resulted from our strategic moves last year to manage these
assets as core businesses," said Vyas. "These non-mining
businesses, together with greater contributions from our improved
coal properties and a sharpened focus on marketing and new business
development, give me great optimism for a very strong earnings
performance in 1996 and beyond."
Zeigler's SG&A expenses for the year increased $4.1 million,
primarily relating to increased legal costs associated with contract
disputes and the settlement of a lawsuit involving Zeigler
subsidiaries and Alma Land Company, as well as the incremental costs
of operating as a public company.
Strong cash flow leads to 1995 debt reduction of $105.3 million
Zeigler continued to demonstrate its strong cash-generating
ability in 1995, experiencing record cash flow from operating
activities of $171.4 million. Even after excluding the after-tax
proceeds from the contract settlement with SIGECO, cash flow from
operating activities established a new high for the company.
Excluding special items in both years, earnings before interest,
taxes, depreciation, depletion and amortization (EBITDA) totaled
$152.8 million in 1995, compared with $167.4 million in 1994.
Operating cash flow was used to pay down $13 million in long-
term debt in the fourth quarter. Since the end of 1994, the company
reduced long- term debt by $105.3 million and experienced $14.7
million in lower interest expense for the year.
Zeigler expands focus on acquisitions, new business development
beyond coal
"Over the past few years, we have completed a dramatic
transformation of our company from what was essentially a high-
sulfur coal producer to a company with an overwhelming low-sulfur
profile," said Vyas. "In 1996, our reputation as a nimble, action-
oriented company continues as we explore consistent, sustainable
growth and high-return opportunities."
To further capitalize on these opportunities, Vyas said the
company is putting the finishing touches on a corporate
reorganization whereby the company has reorganized its core
corporate services staff and created three distinct growth units:
Coal, Non-Mining, and Marketing/New Business Development.
Vyas said these growth units will be primarily responsible for
enabling the company to meet its goals of consistent, sustainable
growth through a major multi-pronged effort to: 1) increase the
revenue and earnings contribution from coal mining businesses; 2)
continue to boost contributions from non-mining operations; and 3)
capitalize on new opportunities in coal and related industries where
Zeigler can best leverage its existing resources and skills.
"Zeigler has succeeded to date not only because we excel at coal
mining and marketing, but because we manage our businesses as
shareholders who understand the need to create value," said Vyas.
"Moving forward, the company is exploring various opportunities both
domestically and overseas within mining, power and other industries
where Zeigler can position itself in higher value-adding segments,
improve returns on investment, reduce earnings volatility and maintain
consistent growth and higher valuation for Zeigler shareholders."
Zeigler, headquartered in the metropolitan St. Louis area,
controls more than 1.3 billion tons of economically recoverable coal
reserves, including 1 billion tons of low sulfur and compliance
coal. The Zeigler family of companies currently operates 11
underground and surface coal mining complexes, located in Illinois,
Kentucky, Ohio, West Virginia and Wyoming, which mine primarily
steam coal. Industry-wide, steam coal is used to produce
approximately 56 percent of the nation's electrical power. In
addition, Zeigler subsidiaries own and operate import/export
terminals in Virginia and South Carolina and the ENCOAL clean coal
technology plant in Wyoming.
ZEIGLER COAL HOLDING COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three and Twelve Months Ended December 31,
(In millions, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
1995 1994 1995 1994
REVENUES:
Coal sales $ 184.2 $ 191.4 $ 754.5 $ 849.4
Other revenues 7.4 5.2 29.6 21.5
Total revenues 191.6 196.6 784.1 870.9
COSTS AND EXPENSES:
Cost of coal sales 139.6 140.9 594.1 667.0
Selling, general and
administrative expenses 7.8 6.8 24.1 20.0
Revaluation of stock
appreciation units 2.9 (4.7) 3.2 8.8
Depreciation, depletion
and other amortization 17.1 17.6 68.6 69.4
Provision for asset
impairment 82.4 -- 82.4 --
Other costs and expenses 3.1 3.8 13.1 16.5
Total costs and
expenses 252.9 164.4 785.5 781.7
OTHER INCOME:
Gain on contract
settlement -- -- 13.2 --
EARNINGS BEFORE
INTEREST & TAXES (61.3) 32.2 11.8 89.2
INTEREST INCOME (EXPENSE):
Interest on borrowings (6.1) (8.9) (27.1) (39.3)
Amortization of deferred
financing costs (.2) (.3) (.8) (4.7)
Interest income .1 .7 .4 1.8
Net interest expense (6.2) (8.5) (27.5) (42.2)
INCOME (LOSS) BEFORE
INCOME TAXES AND
EXTRAORDINARY ITEM (67.5) 23.7 (15.7) 47.0
INCOME TAXES (BENEFIT) (16.7) 8.8 (4.5) 13.5
INCOME (LOSS) BEFORE
EXTRAORDINARY ITEM $ (50.8) 14.9 (11.2) 33.5
EXTRAORDINARY ITEM:
Early extinguishment
of debt, net of tax -- (8.4) -- (8.4)
NET INCOME (LOSS) $ (50.8) $ 6.5 $ (11.2) $ 25.1
WEIGHTED AVERAGE
SHARES OUTSTANDING 28.4 28.4 28.4 24.9
NET INCOME (LOSS)
PER COMMON SHARE
Income before
extraordinary item $ (1.79) $ 0.53 $ (0.40) $ 1.35
Extraordinary Item -- (0.30) -- (0.34)
Net income (loss) $ ( 1.79) $ 0.23 $ (0.40) $ 1.01
ZEIGLER COAL HOLDING COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In millions, except share data)
December 31, December 31,
1995 1994
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 23.3 $ 15.6
Receivables:
Trade accounts receivable
(net of allowances of
$2.6 and $13.4) 67.2 84.8
Other receivables 4.9 3.2
Total receivables 72.1 88.0
Inventories:
Coal work in process 7.3 9.1
Coal finished goods 20.1 25.4
Mine supplies 23.0 31.6
Total inventories 50.4 66.1
Income taxes receivable -- .9
Deferred income taxes 8.4 16.1
Other current assets 3.4 4.5
Total current assets 157.6 191.2
PROPERTY, PLANT AND EQUIPMENT:
Land and mineral rights 633.1 664.3
Prepaid royalties 21.3 25.9
Plant and equipment 506.9 514.4
Total at cost 1,161.3 1,204.6
Less - accumulated depreciation,
depletion and amortization (302.7) (251.2)
Property, plant and equipment, net 858.6 953.4
OTHER ASSETS:
Prepaid pension expense 9.5 12.5
Deferred financing costs, net 2.7 3.3
Other long-term assets 7.0 5.1
Total other assets 19.2 20.9
TOTAL ASSETS $ 1,035.4 $ 1,165.5
ZEIGLER COAL HOLDING COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In millions, except per share data)
December 31, December 31,
1995 1994
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable - trade $ 56.2 $ 51.8
Dividends payable 1.4 1.4
Income taxes payable 2.3 --
Other taxes payable 24.0 22.7
Accrued payroll and
related benefits 24.0 29.4
Other accrued expenses 19.8 18.3
Total current liabilities 127.7 123.6
LONG - TERM DEBT 344.8 450.1
ACCRUED POSTRETIREMENT BENEFIT
OBLIGATIONS 255.8 252.5
ACCRUED PNEUMOCONIOSIS BENEFITS 49.4 73.2
ACCRUED MINE CLOSING COSTS 105.7 87.3
DEFERRED INCOME TAXES -- 22.5
OTHER LONG - TERM LIABILITIES 70.5 57.9
COMMITMENTS and CONTINGENCIES -- --
Total liabilities 953.9 1,067.1
STOCKHOLDERS' EQUITY:
Common stock - $0.01 par value -
50,000,000 shares authorized;
28,355,616 shares issued and
outstanding at December 31, 1995
and 1994 .3 .3
Capital in excess of par value 71.9 71.9
Retained earnings 9.3 26.2
Total stockholders' equity 81.5 98.4
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 1,035.4 $ 1,165.5
ZEIGLER COAL HOLDING COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Twelve Months Ended December 31,
(In millions)
1995 1994
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (loss) $ (11.2) $ 25.1
Adjustments for differences between
income flows and cash flows from
operating activities:
Extraordinary item, early debt
extinguishment -- 7.3
Depreciation, depletion and other
amortization 68.6 69.4
Amortization of deferred financing costs .8 4.7
Mine closing costs (9.7) (17.5)
Provision for asset impairments 82.4 --
Proceeds from contract settlement 45.5 --
Net gain on contract settlement (13.2) --
Postretirement benefits 3.3 12.9
Pneumoconiosis benefits (23.8) (5.2)
Workers' compensation 8.9 4.3
Stock appreciation units 2.5 8.4
Deferred income taxes -
noncurrent portion (22.4) 7.1
Other noncash items 2.2 (2.0)
Changes in working capital:
(Increase) decrease in receivables 15.6 (11.9)
Decrease in income taxes receivable .9 6.5
(Increase) decrease in inventories 7.8 (11.7)
(Increase) decrease in other
current assets 9.1 (1.9)
Increase in accounts payable - trade 4.4 3.2
Decrease in deferred revenue -- (.8)
Decrease in accrued expenses and other
current liabilities (.3) (6.8)
(Increase) decrease in working capital 37.5 (23.4)
Total adjustments to net income 182.6 66.0
Net cash provided by
operating activities 171.4 91.1
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property, plant,
and equipment (56.3) (45.6)
Proceeds from sales of property,
plant and equipment 3.6 4.0
Net cash used in investing activities (52.7) (41.6)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from public offering
of common stock -- 68.6
Payment of debt acquisition costs -- (.6)
Net repayments of long-term debt (105.3) (164.8)
Payment of dividends (5.7) --
Net cash used in financing activities (111.0) (96.8)
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 7.7 (47.3)
CASH AND CASH EQUIVALENTS, BEGINNING 15.6 62.9
CASH AND CASH EQUIVALENTS, ENDING $ 23.3 $ 15.6
ZEIGLER COAL HOLDING COMPANY
KEY STATISTICAL DATA (UNAUDITED)
Three and Twelve Months Ended December 31,
(In millions, except per ton data)
Three Months Ended Twelve Months Ended
Dec 31, Sept 30, Dec 31, December 31,
1995 1995 1994 1995 1994
SALES VOLUME (tons):
Appalachia Mines 3.2 3.1 3.3 13.2 14.4
Midwest Mines 2.4 2.8 3.0 10.7 12.8
Powder River Basin 2.9 3.2 2.6 11.5 10.9
Purchased Coal 0.5 0.5 0.3 1.5 1.9
Total 9.0 9.6 9.2 36.9 40.0
AVERAGE PRICE PER TON SOLD:
Appalachia Mines $ 34.23 $ 34.48 $ 32.66 $ 33.79 $ 32.47
Midwest Mines 19.46 18.74 20.99 19.60 21.49
Powder River Basin 4.71 5.12 4.77 5.07 4.97
Purchased Coal 27.63 29.49 27.02 28.29 27.39
Average $ 20.51 $ 19.84 $ 20.72 $ 20.47 $ 21.22
PRODUCTION VOLUME (tons):
Appalachia Mines 2.9 3.3 3.6 12.9 14.3
Midwest Mines 2.4 2.2 3.1 10.6 13.2
Powder River Basin 2.9 3.3 2.7 11.6 11.0
Total 8.2 8.8 9.4 35.1 38.5
AVERAGE PRODUCTION COST PER TON:
Appalachia Mines $ 27.86 $ 29.00 $ 28.11 $ 28.70 $ 28.03
Midwest Mines 16.23 19.24 16.22 18.23 18.34
Powder River Basin 4.33 4.41 3.96 4.49 4.24
Average $ 16.24 $ 17.20 $ 17.18 $ 17.52 $ 17.94
FORT LAUDERDALE, Fla., Feb. 1, 1996 -- Discovery Zone, Inc.
(Nasdaq: ZONE) announced today that in light of a disappointing
operating performance in January, it is uncertain whether a
renegotiation of its credit facility can be achieved. As previously
disclosed, the company has been in discussions with lenders
regarding its credit facility. The company said it now believes that
such credit facility would need to be significantly greater than the
amount previously negotiated with its lenders. As a result the
company is considering all alternatives to meet its cash
requirements, including a reorganization under Chapter 11 of the
United States Bankruptcy Code, to allow it to access additional
working capital and restructure its indebtedness. The company is
continuing discussions with its lenders. Discovery Zone said that
since the change in operating management last April, it has achieved
significant corporate overhead reductions and substantially improved
the quality of operations. Despite this progress, the company said
it is unlikely that it will be able to generate sufficient cash
flows from operations to remain viable in the long term, unless it
can reduce its debt burden, lower its interest expense, and improve
its operating cost structure. Such improvements would require
closing a number of unprofitable locations and renegotiating
unfavorable existing leases. Steven R. Berrard, chief executive
officer of Discovery Zone, stated, "Discovery Zone remains the
leading player in the industry with a strong core operation. We are
optimistic that we will find a solution to achieve a solid and
sustainable business." Discovery Zone is the leading operator of
children's indoor entertainment and fitness facilities, with 330
facilities in 34 states.
SAN JOSE, Calif., Feb. 1, 1996 - Media Arts Group, Inc.
(Nasdaq: ARTS) announced today results for the fiscal third quarter
and nine months ended December 31, 1995.
Media Arts Group, Inc., posted revenues of $15,044,000 for the
recent quarter, a 10% gain in comparison to $13,727,000 in revenues
for the same period last year. Net income for the recent quarter
was $826,000 or $0.09 per share representing a 5% increase in
comparison to income before discontinued operations and
extraordinary items of $785,000 or $0.08 per share for the third
quarter a year ago. The recent quarter included non-recurring
expenses of $190,000 (before tax effect) for severance benefits
related to the company's continuing efforts to reduce operating
expenses.
For the nine-month period ended December 31, 1995, revenue
decreased by 2% to $39,636,000 compared to revenue of $40,636,000
for the same period in 1994. The company reported a net loss of
$152,000 or ($0.02) per share for the nine months compared to income
before discontinued operations and extraordinary items of $3,845,000
or $0.44 per share for the comparable nine-month period last year.
Included in net income for the recent nine-month period were non-
recurring expenses of $790,000 (before tax effect) for costs related
to reduction in headcount and the restructuring of the company's
independent sales force to an in-house sales force. Included in net
income for the nine-month period last year were non-recurring
deferred tax credits of $638,000.
Revenues for the third quarter were $15,044,000, an increase of
$3,412,000 or 29% compared to revenues of $11,632,000 in the second
quarter. Third quarter gross profit was up 38%, or $2,462,000 from
$6,399,000 to $8,861,000 and operating expenses were down
approximately 11%, or $800,000 compared to the previous quarter this
year.
"We believe that our growth in sales this quarter over the third
quarter a year ago reflects the continued demand for Thomas Kinkade
products and the advantages of our move to an in-house sales force,"
said Ken Raasch, chairman and chief executive officer of Media Arts
Group. "We also remain optimistic about the potential impact of our
new products, although the Company has not yet seen the effect."
Sales of Thomas Kinkade products for the recent quarter
(excluding sales by Thomas Kinkade Stores) were $8,367,000,
representing an increase of $3,389,000 or 68% as compared to
revenues of $4,978,000 for the previous quarter this year, and an
increase of $1,394,000 or 20% as compared to revenues of $6,973,000
for the same period a year ago. Sales for Thomas Kinkade Stores for
the recent quarter were $3,101,000 an increase of $988,000 or 47%
compared to the previous quarter and an increase of $539,000 or 29%
compared to the same period last year (excluding sales of galleries
acquired in the current year). "We continue to see the demand
increase for Thomas Kinkade products evidenced by our growth in
sales in Thomas Kinkade Stores," said Raasch. "We are enthusiastic
about plans for expanding the store concept as it is an important
part of our comprehensive strategy to continue to increase brand
name awareness and sales of Kinkade's products."
The company expects to continue its efforts, begun in September
1995, to reduce expenses in various areas including staffing,
facilities and manufacturing. The majority of the company's cost
reduction efforts have been focused on the operations of John Hine
Limited. For the recent quarter, sales of John Hine Limited
products were down 30% as compared to the same period a year ago.
The company is currently implementing steps intended to return John
Hine Limited to profitability and is evaluating goodwill writedowns
and restructuring alternatives available to the U.K. subsidiary.
"We will continue to seek operational efficiencies throughout the
Company," stated Raasch.
The company has experienced covenant defaults in its financing
agreements with senior and senior subordinated lenders. The company
is in discussions with senior and senior subordinated lenders
regarding those matters.
Based in San Jose, Media Arts Group, Inc., designs,
manufactures, distributes and licenses gifts, collectibles, and home
decor accessories based on exclusive licenses and brand names,
through its four subsidiaries: Lightpost Publishing, John Hine
Limited, Thomas Kinkade Stores and MAGI Entertainment Products.
Media Arts Group products are sold through more than 4,500
independently-owned stores and stores and galleries worldwide.
CONTACT: Sue Edstrom of Media Arts group, 408-947-4680; or Wayne
Brown or Sheila Whitman of Carl Thompson Associates, 303-494-5472
ST. LOUIS, Feb. 1, 1996 - Edison
Brothers Stores Inc.
said today that it completed the sale of its mall entertainment
division to Namco Cybertainment, a wholly owned subsidiary of Namco
Ltd., of Tokyo, Japan. Edison Brothers received approval of the
previously announced sale Tuesday from the U.S. Bankruptcy Court in
Wilmington, Del.
The sale included selected assets and stores of Edison Brothers
Mall Entertainment and Horizon Entertainment, which operated 128
game rooms and larger entertainment centers. Namco will now operate
105 of these units.
"The completion of this sale is a turning point for the
company," Senior Executive Vice President Peter Edison said. "It
signals the company's return to our core footwear and apparel
businesses. The sale will enable us to move forward with the
company's other restructuring initiatives."
Edison Brothers Stores Inc. filed for voluntary reorganization
under Chapter 11 on November 3, 1995. The company operates
approximately 2,000 apparel and footwear specialty stores
nationwide.
CONTACT: David B. Cooper, Jr., Chief Financial Officer, 314-331-
6531 or Amy Calvin, Communications, 314-331-7996, both for Edison
Brothers
ST. PAUL, Minn. -- Feb. 1, 1996 -- Eltrax Systems Inc., a
developer and marketer of patient card systems for the
health care industry announces the signing of a Letter of Intent for
Eltrax to acquire substantially all of the assets of href="chap11.applied.html">Applied Computing Devices Inc. (ACD) of Terre
Haute, Indiana, subject to,
among other things, completion of a definitive purchase agreement
and approval by the Bankruptcy Court in Indianapolis, IN.
ACD is a leading provider of network Operations Support Systems
used by telephone companies worldwide in fault monitoring, traffic
engineering and trunk/line provisioning. ACD's architecture is
object-based, protocol independent and fully scalable, creating off-
the-shelf network operations support tools.
Pursuant to the Letter of Intent, which was signed yesterday,
Eltrax will acquire substantially all of the assets of ACD
(excluding cash, accounts receivable, and real estate) for a
purchase price of $1.1 million, on or before March 1, 1996. The
Bankruptcy Court proceedings allow other offers to purchase ACD's
assets to be submitted and evaluated prior to the hearing on the
final approval of the sale by the Bankruptcy Court, which is
expected to occur on Feb. 14, 1996. Eltrax management is aware that
there are other interested, potential purchasers of ACD's assets,
and therefore, the completion of this acquisition is uncertain at
this time.
Eltrax Systems Inc., headquartered in St. Paul, markets its
products nationwide. The Company went public in December, 1992 and
its shares are traded on the Nasdaq Smallcap Market under the symbol
ELTX.
CONTACT: Eltrax Systems Inc.,
Mack V. Traynor, III, 612/633-8373