MEMPHIS, TN, Feb. 1, 1996 --
Harrah's Entertainment, Inc.
(NYSE: HET) today reaffirmed in writing its commitment to use its
best efforts to bring the Harrah's Jazz Company partnership's
bankruptcy proceeding to a successful conclusion for all interested
parties. Harrah's Entertainment today informed by letter
representatives of the state of Louisiana of the following:
CONTACT: Ralph Berry, Harrah's Entertainment, Inc., 901-762-8629/
WESTBOROUGH, Mass. -- Feb. 1, 1996 -- Crystallume
(BB:CRYS, CRYSW) today reported financial results for the first
quarter of fiscal 1996, which ended December 31, 1995. Revenues for
the first quarter of fiscal 1996 were $13.6 million, compared to
$333,000 for the same period in fiscal 1995.
Net loss for the quarter, after non-recurring, merger-related
charges of $1.7 million, was $921,000, or $0.19 per share, compared
with a net loss of $1.1 million, or $0.33 per share, for the
comparable period in fiscal 1995. Before these non-recurring
charges, income from operations was $968,000, or $0.20 per share,
for the first quarter of fiscal 1996, compared with an operating
loss of $978,000, or $0.31 per share, a year ago. Weighted average
shares for the three months ended December 31, 1995 were 4.8
million, compared with 3.2 million for the prior year. The increase
in shares is primarily due to the financing of Crystallume's
acquisition of Electronic Designs, Inc. (EDI).
The company's results of operations for the first quarter of
fiscal 1996 include the results of operations of EDI from October
10, 1995, the day EDI was acquired by Crystallume in a transaction
accounted for under the purchase method. Based on this merger,
Crystallume is now a supplier of memory circuits and flat panel
display products and a developer of industrial applications for
synthetic diamond films and coatings.
Approximately $1.1 million of the non-recurring, merger-related
charge is due to the upward revaluation of EDI's inventories
acquired to their estimated fair value as required under purchase
accounting, thus eliminating margins on those acquired inventories.
This amount is reflected in Crystallume's cost of revenues as the
acquired inventories were sold during the first quarter. The
remaining $590,000 represents restructuring charges, principally
severance benefits resulting from combining and reducing management
functions.
"We are excited to be reporting our financial results for the
first quarter of fiscal 1996, our first as the newly merged
company," said Don McGuinness, chairman and chief executive officer
of Crystallume/EDI. "Our first-quarter results reflect a
restructuring of the diamond operations to improve financial results
and focus on the use of synthetic diamond technology in EDI's
products. With the acquisition and restructuring behind us, our
strategic goal is to grow the new company into a leading supplier of
memory circuits and enhanced flat panel display products to the
commercial, industrial and military markets."
Crystallume, headquartered in Westborough, Mass., has two
distinct business operations. The company designs, manufactures and
markets semiconductor memory circuits and flat panel display
products for Original Equipment Manufacturers (OEMs) in the global
commercial, industrial and military markets, particularly
telecommunications and data communications. In addition, the
company develops and markets industrial applications for synthetic
diamond films and coatings, and has begun efforts to use this
technology to improve and enhance its existing products. The
company's stock is quoted on the Nasdaq Bulletin Board, and the
company has applied for relisting on the Nasdaq Small-Cap Market.
The consolidated statements of operations and condensed balance
sheets follow.
CRYSTALLUME
CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended
December 31,
(Amounts in thousands, except per-share data) 1995 1994
Revenues $13,630 $333
Cost of revenues(a) 10,257
--
Gross margin 3,373 333
Operating expenses
Research and development 1,185 819
Selling, general and administrative 2,202 492
Restructuring 590
--
Amortization of intangible assets 118
--
4,095 1,311
Loss from operations (722) (978)
Other income (expense)
Interest income 45 22
Interest expense (244) (94)
Net loss ($921) ($1,050)
Net loss per share ($0.19) ($0.33)
Weighted average common shares 4,819 3,166
NOTE: Results of operations include the results of EDI from the
date of (October 10, 1995).
(a) Cost of revenues for the three months ended December 31, 1995
include
to the upward revaluation of inventories acquired from EDI to their
estimated fair value as of the acquisition date.
CRYSTALLUME
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands) December 31, September
30,
1995 1995
Assets
Cash and cash equivalents $943 $2,045
Accounts receivable, net 9,255 588
Inventories 7,494 83
Prepaid expenses and other
current assets 139 84
Total current assets 17,831 2,800
Property and equipment, net 4,094 2,455
Other assets 84 1,079
Intangible assets 2,212
--
Total assets $24,221 $6,334
Liabilities and Shareholders' Equity
Revolving credit facility $3,652 $
--
Current portion of long-term debt 4,106 545
Notes payable to shareholders -- 900
Notes payable to officers 290
--
Accounts payable 4,390 878
Accrued expenses and
other liabilities 3,814 760
Total current liabilities 16,252 3,083
Deferred rent 112 104
Long-term debt, net of
current portion 2,518 648
Long-term note payable
to shareholder -- 1,035
Total liabilities $18,882 $4,870
Convertible preferred stock
and common 26,928 22,132
Accumulated deficit (21,589) (20,668)
Total liabilities and
shareholder $24,221 $6,334
CONTACT: Crystallume/Electronic Designs, Inc.
Frank Edwards, 508/366-5151
or
Liz Marsolais, 508/366-5151
FREMONT, Calif. -- Feb. 1, 1996 -- SyQuest
Technology, Inc. (NASDAQ: SYQT) today announced its operating
results for the first quarter ended December 31, 1995 and a
restructuring of its operations.
The company reported a quarterly net loss of $33.8 million, or
$2.98 per share, on net revenues of $78.7 million. This compares
with net income of $1.9 million, or 16 cents per share, on net
revenues of $65.9 million for the first quarter of fiscal year 1995.
"Our decision to restructure operations was a difficult one,"
said Syed H. Iftikar, chairman, chief executive officer, and
president of SyQuest. "However, given the dramatic changes in our
markets during the last few quarters, and the corresponding changes
in our product line and operating model, a thoughtful, systematic
restructuring is in the best interests of the company and its
stockholders. We do not expect to return to profitability in the
current quarter. However, we believe that the planned actions will
help us to stabilize and refocus the business in the near term, and
ultimately to recover our competitive strength and profitability in
the long term."
Restructuring Actions
The restructuring will consist of the following actions:
The restructuring will require the company to take a pre-tax
charge of approximately $3.0 million to $5.0 million, according to
preliminary estimates, against second-quarter earnings. This one-
time charge, which will be fully reported with second-quarter
results in April 1996, will include provisions for fixed assets
associated with Far East manufacturing operations, as well as
severance compensation and other benefits for terminated employees.
In addition to the restructuring, SyQuest is actively recruiting
candidates for the new management position of president and chief
operating officer, responsible for improving the efficiency of
operations throughout the company.
First-Quarter Results
In the first quarter, net revenues were $78.7 million, an
increase of 19.4 percent from $65.9 million in the first quarter of
fiscal 1995.
The first-quarter gross margin was -11.8 percent, down from
+24.2 percent a year earlier. This was due to lower average selling
prices for core products, such as the SQ5200 and the SQ3270 drives,
and for all cartridge products; to higher production costs for EZ135
system products; and to an overall shift in revenues from drives to
systems. Unit sales of drives, which have a higher gross margin,
decreased by 49 percent. Unit sales of systems, which have a lower
gross margin, increased by more than 300 percent. Unit sales of
cartridges grew by 70 percent.
Also contributing to the lower gross margin was a $8.6-million
provision for excess inventories of the SQ5200 and SQ3270 drives and
a $7.8-million provision for losses on purchase commitments for
EZ135 system products.
Selling, general, and administrative expenses increased 68.4
percent, from 13.0 percent a year earlier to 18.4 percent of net
revenues in the first quarter of fiscal 1996. These expenses
included an additional provision of $1.0 million for bad debts. The
total allowance for bad debts is now $4.6 million, or 6.7 percent of
total accounts receivable. Research and development expenses grew
38.4 percent, from 7.9 percent to 9.1 percent of net revenues,
reflecting an increased investment in new products.
"New product development is key to SyQuest's future," said
Iftikar. "Our markets have become increasingly competitive,
challenging us to reach new levels of price/performance that will
achieve and sustain a clear competitive advantage. At the same
time, winning in the marketplace must be profitable. Our intent
going forward is to ensure that SyQuest's research and development
efforts and product line reflect these imperatives."
The company's first-quarter 1996 results also included a $3.0-
million provision for income taxes as a result of an increased
valuation allowance for deferred tax assets.
Cash Position
At December 31, 1995, SyQuest's cash and cash equivalents were
$10.8 million, down from $29.2 million at September 30.
"Although we have a $30-million bank line of credit, subject to
normal borrowing limitations, we view both the decline in our cash
position and current cash levels as issues facing the company,"
said Iftikar. "However, we are taking specific steps to strengthen
our overall financial condition, including the restructuring of
operations, the outsourcing of manufacturing, and the subsequent
reduction of operating expenses."
The Company
SyQuest Technology, Inc. is the industry's leading supplier of
removable Winchester disk cartridges and associated drives. These
products enable personal computer users to exchange data, expand
data storage capacity incrementally, and back up, store, and
physically secure data. Founded in 1982, the company has worldwide
operations, primarily in North America, Asia, and Europe.
SYQUEST TECHNOLOGY, INC.
CONSOLIDATED CONDENSED INCOME STATEMENTS
(In thousands, except per share data)
(Unaudited)
Three months ended
Dec. 31,
1995 1994
Net revenues $78,667 $65,892
Cost of revenues 80,090 49,965
Provision for losses on
purchase commitments 7,839 --
-------- --------
Gross Profit(loss) (9,262) 15,927
Operating Expenses:
Selling, general & admin. 14,464 8,587
Research and development 7,160 5,175
------- -------
Total operating expenses 21,624 13,762
------- -------
Income (loss) from operations (30,886) 2,165
Interest income (net) 85 365
------- -------
Income (loss) before income
taxes (30,801) 2,530
Provision for income taxes 3,000 607
------- -------
Net income (loss) ($33,801) $1,923
Income (loss) per share:
Net income (loss) ($2.98) $0.16
Common and common equivalent
shares used in computing
per share amounts 11,324 11,899
SYQUEST TECHNOLOGY, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)
Dec. 31, Sept. 30,
1995 1995
(Unaudited) (Note)
Assets
Current assets:
Cash and cash equivalents $10,801 $29,248
Short-term investments 400 400
Accounts receivable 63,522 55,653
Inventories 36,018 34,213
Prepaid expenses and deposits 2,472 2,066
Deferred income taxes 10,254 13,254
---------- ----------
Total current assets 123,467 134,834
Property, equipment and
leasehold improvements 58,258 57,790
Less: Accumulated depreciation (26,978) (31,070)
---------- ----------
Net property and equipment 31,280 26,720
Other assets 3,093 3,130
---------- ----------
$157,840 $164,684
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $59,231 $41,213
Income taxes payable 356 355
Accrued compensation 6,276 5,206
Accrued expenses & other liabilities 16,731 15,210
Provision for losses on
purchase commitments 10,849 10,510
Notes payable to bank 6,013 --
---------- ----------
Total current liabilities 99,456 72,494
Deferred rent 272 276
Deferred income taxes 8,725 8,726
Stockholders' equity:
Common stock 13 13
Additional paid in capital 79,489 79,489
Treasury stock (12,855) (12,855)
Retained earnings (deficit) (17,260) 16,541
---------- ----------
Total stockholders' equity 49,387 83,188
---------- ----------
$157,840 $164,684
Note: The consolidated condensed balance sheet at September 30,
1995 has been derived from the audited financial statements at that
date.
MIDLAND, Mich., Feb. 2, 1996 - Dow
Corning Corp. today
reported both fourth-quarter 1995, and year-end sales and profits.
Sales in 1995 totaled $2.5 billion, an increase of 13.6 percent over
$2.2 billion reported for 1994.
The company recorded a net loss for the year of $30.6 million,
including the impact of a previously announced special charge of
$221.2 million after-tax, taken at the end of the second quarter to
reflect a change in the company's accounting method for its
liability in a breast implant global settlement.
Excluding the special charge in the second quarter, net profit
after tax (PAT) for the year was $190.6 million, an increase of 31.4
percent over comparable 1994 profits of $145.0 million.
Fourth-quarter sales for 1995 were $615.0 million, up 5.4
percent from the $583.4 million recorded for the same period in
1994. Net profit for the quarter was $39.6, up 21.5 percent from a
fourth-quarter 1994 net profit of $32.6 million, excluding the
previously reported fourth-quarter 1994 special charge of $151.8
million after tax.
"Strong economies throughout most of 1995 enabled this
performance, although some slowing occurred as the year came to a
close," said Richard A. Hazleton, chairman and chief executive
officer. "Asia, outside of Japan, continues to grow faster than all
other areas of the world. Some of the large European economies
slowed considerably in the fourth quarter, and the U.S. economy is
in a period of uncertainty.
"We continue to be appreciative of the steadfast loyalty and
support of not only our employees but also of our customers and
suppliers as we work through Chapter 11. We're making progress in
many areas, and continue to remain strong, as demonstrated by our
year-end financial results," Hazleton said.
Consolidated financial statements are available by calling Dow
Corning at 517-496-5436.
Dow Corning Corp., a global leader in silicon-based materials,
is a Michigan corporation with shares equally owned by The Dow
Chemical Co. (NYSE: DOW) and Corning Inc. (NYSE: GLW). More than
half of Dow Corning's sales are outside the U.S.
DOW CORNING CORPORATION AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND RETAINED
EARNINGS
(in millions of dollars except share data)
Year ended December 31,
1995 1994 1993
NET SALES $2,492.9 $2,204.6 $2,043.7
OPERATING COSTS AND EXPENSES:
Manufacturing cost of sales 1,664.4 1,470.3 1,403.9
Marketing and administrative
expenses 450.3 415.4 403.9
Implant costs 351.1 241.0 640.0
2,465.8 2,126.7 2,447.8
OPERATING INCOME (LOSS) 27.1 77.9 (404.1)
OTHER INCOME (EXPENSE):
Interest income 36.6 18.0 5.0
Currency gains (losses)
and other, net (22.6) (11.0) 10.4
Interest expense (43.0) (70.3) (33.3)
INCOME (LOSS) BEFORE REORGANIZATION
COSTS AND INCOME TAXES (1.9) 14.6 (422.0)
Reorganization costs 21.0 - -
INCOME (LOSS) BEFORE INCOME TAXES (22.9) 14.6 (422.0)
Income tax provision (benefit) (9.6) 7.9 (150.9)
Minority interests' share
in income 17.3 13.5 15.9
NET INCOME (LOSS) (1995 - $(12.24)
per share; 1994 - $(2.72) per
share; 1993 - $(114.80)
per share) (30.6) (6.8) (287.0)
Retained earnings at beginning
of year 597.5 604.3 891.3
Retained earnings at end
of year $ 566.9 $ 597.5 $ 604.3
DOW CORNING CORPORATION AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions of dollars)
ASSETS December 31, 1995 December 31, 1994
CURRENT ASSETS:
Cash and cash equivalents $ 387.3 $ 201.1
Receivables, net 474.4 416.2
Anticipated implant insurance
receivable 265.0 157.5
Implant deposit 275.0 275.0
Inventories 329.0 308.4
Other current assets 105.0 277.6
Total current assets 1,835.7 1,635.8
PROPERTY, PLANT AND
EQUIPMENT, NET 1,207.6 1,191.9
ANTICIPATED IMPLANT INSURANCE
RECEIVABLE 1,126.0 943.6
RESTRICTED INSURANCE PROCEEDS 108.3 -
OTHER ASSETS 680.8 321.9
$4,958.4 $4,093.2
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term borrowings $ 23.4 $ 446.8
Accounts payable 148.5 160.2
Implant reserves - 475.4
Other current liabilities 287.6 242.6
Total current liabilities 459.5 1,325.0
LONG-TERM DEBT 110.8 335.1
IMPLANT RESERVE - 1,286.9
OTHER LIABILITIES 110.3 352.1
LIABILITIES SUBJECT TO COMPROMISE:
Accounts payable 46.6 -
Implant reserves 2,471.5 -
Notes payable and long-term debt 648.4 -
Other 337.6 -
Total liabilities subject
to compromise 3,504.1 -
MINORITY INTEREST IN CONSOLIDATED
SUBSIDIARIES 126.8 117.9
STOCKHOLDERS' EQUITY 646.9 676.2
$4,958.4 $4,093.2
SEATTLE, Feb. 2, 1996 - IMRE Corporation (Nasdaq: IMRE)
announced today its financial results for the year ended December
31, 1995. The Company reported a net loss of $6.8 million, or $0.39
per share, compared to a net loss of $6.2 million, or $0.40 per
share, for 1994. The Company reported total expenses of $11.0
million for 1995 compared to $11.1 million for 1994. Expenses in
1995 reflected $2.1 million for non-recurring charges, including a
$0.6 million restructuring expense for the Company's recently
announced restructuring plan to move all operations, except
manufacturing, to San Diego, California, and $1.5 million of non-
cash expenses reported earlier in 1995 for the purchase of the
minority interest of a subsidiary and debt conversion expenses.
The Company's cash position as of December 31, 1995 was $1.0
million. As recently announced, the Company completed a private
placement of approximately $12.5 million of common stock subsequent
to December 31, 1995. As a result the Company had cash of
approximately $12.5 million as of January 31, 1996.
The Company reported revenue of $4.1 million, a decrease of
16.3% from revenue of $4.9 million for 1994. The revenue for 1995
includes the $3.0 million take-or-pay payment made by its North
American distributor, Baxter Healthcare Corporation, in March 1995.
The decrease in revenue is due primarily to Baxter selling less to
customers than when IMRE sold directly to health care providers and
Baxter requiring less product in 1995 as compared to 1994. The
increase net loss is due primarily to the decrease in revenue, an
increase in research and development expenses, and certain non-
recurring charges, all of which were partially offset by a
significant reduction in sales and marketing expenses.
For the three months ended December 31, 1995, the Company
reported revenue from product sales of $9,000, compared to revenue
of $0.8 million for the same period in 1994. The net loss was $3.2
million, or $0.17 per share, compared to $1.8 million, or $0.12 per
share for 1994. The decrease in net sales is a result of not
shipping any product to Baxter during the fourth quarter of 1995
compared to shipments being made during the same period in 1994.
The increase in net loss was a result of the decrease in sales, an
increase in compensation costs resulting from severance costs
incurred from the resignation of certain executive officers in
December 1995, and the restructuring expense noted previously. Such
increased expenses were partially offset by a reduction in sales and
marketing expenses.
IMRE Corporation in a medical device company that is a leader in
the field of immunoadsorption therapy. The Company's first product,
the PROSORBA(R) column, has FDA marketing approval for the treatment
of idiopathic thrombocytopenic purpura (ITP), an immune-mediated
bleeding disorder. In September 1995, IMRE announced positive
results of a pilot clinical trial using the PROSORBA(R) column for
rheumatoid arthritis therapy and is currently planning to begin a
controlled clinical trial in rheumatoid arthritis during the first
half of 1996.
IMRE CORPORATION
Condensed Financial Data
(In thousands except per share data)
Quarter ended December 31 Year ended December 31
Three Months Year
1995 1994 1995 1994
Revenue $ 9 $ 781 $ 4,104 $ 4,918
Interest income 21 26 119 72
Total 30 807 4,223 4,990
Production costs 582 514 2,041 2,571
Sales and marketing 74 535 820 3,550
Research and
development 778 844 3,219 2,108
General and
administrative 1,090 653 2,627 2,694
Other 645 2,080
Interest expense 29 79 262 218
Total expenses 3,198 2,625 11,049 11,141
Net loss from
operations $(3,168) $(1,818) $(6,826) $(6,151)
Net loss per
share $ (0.17) $ (0.12) $ (0.39) $ (0.40)
Weighted average
shares
outstanding 18,590 15,590 17,599 15,244
BENSALEM, Pa., Feb. 2, 1996 - Charming Shoppes, Inc.
(Nasdaq: CHRS), the retail women's apparel chain announced a pretax
charge of $33,000,000 related to the restructuring of its overseas
sourcing and domestic corporate operations. This charge is in
addition to a pretax charge of $65,000,000 related to the closing of
290 underperforming stores which the Company announced during
December 1995. Most of this $33,000,000 charge is associated with
the downsizing of the Company's overseas sourcing operation. Direct
overseas sourcing will be reduced from approximately seventy percent
of total purchases to approximately fifty percent. This reduction
will result in the redirection of timely fashion merchandise
purchases to the domestic market thereby leaving more basic
merchandise purchases as the primary function of the overseas
sourcing organization. This will enable the company to reduce
working capital associated with the financing of fabric purchases
and will provide Charming Shoppes merchants more time to predict
fashion trends prior to placing orders.
The restructuring of the Company's domestic corporate operations
primarily include operational changes such as changes to the product
development, store design and construction departments.
One hundred twenty stores have been closed since the
announcement of the $65,000,000 pretax charge in December 1995.
Approximately seventy are scheduled for closing during the first
quarter of fiscal 1997.
The total fourth quarter restructuring charge will reduce pretax
earnings by $98,000,000. The after-tax effect on earnings will be
approximately $66,000,000, or $.64 per share. Most of the pretax
charge will result in the write-off of existing assets with
approximately $37,000,000 attributable to cash payments.
As previously reported, the Company said it anticipates an
operating loss for the fourth quarter of the fiscal year ranging
from $.32 to $.36 per share.
The Company will release the results of the fourth quarter on
March 19, 1996.
CONTACT: Bernard Brodsky, Vice President & Treasurer of Charming
Shoppes, 215-638-6719
CAROL STREAM, Ill., Feb. 2, 1996 - Ben Franklin Retail
Stores, Inc. (Nasdaq: BFRS) today reported a net loss of $11.7
million, or $2.14 per share, for the third quarter of fiscal 1996.
This loss reflects charges and adjustments of $13.2 million on a pre-
tax basis related primarily to restructuring charges of $11.2
million for its wholesale operations and store closings in its
retail business and includes adjustments and provisions for
uncollectible trade receivables. For the third quarter of fiscal
1995, the Company had net income of $310,000, or $.06 per share.
Net sales for the third quarter ended December 31, 1995
increased 9.2% to $102.9 million as compared with $94.2 million in
the comparable quarter of fiscal 1995, primarily as a result of
increased wholesale sales and increased retail sales from new
openings of Company-owned craft superstores. The operating loss in
the current quarter was $15.7 million, as compared to operating
income of $1.3 million in the comparable quarter of fiscal 1995.
The operating loss of $15.7 million included $13.2 million of
charges and adjustments as explained above and reflects reduced
margins on retail sales from its Company-owned craft superstores due
to heavy seasonal promotional activity.
"These charges and adjustments reflect direct and proactive
actions to address a weak retail environment experienced by our
Franchise stores and our Company-owned craft superstores. The
restructuring charges and adjustments will cover costs associated
with the closing of up to eight Company-owned craft superstores,
relocation costs for certain facilities and adjustments and
provisions for uncollectible trade receivables," Robert Kendig,
President and Chief Operating Officer, said.
"These actions will improve cash flow by recapturing capital
that is currently tied-up in inventory and fixed building costs,
improve efficiencies not realized currently from increased wholesale
volume and reduce negative cash flows in non-performing Company-
owned craft superstores. These actions should translate into future
savings of over $4.4 million pre-tax annually once fully
implemented. We remain committed in assisting our franchisees in
succeeding in the Craft industry and will continue to expand Company-
owned craft superstores in selected retail markets," Kendig added.
FIRST NINE MONTHS RESULTS:
The net loss for the nine months was $12.2 million, or $2.22 per
share, including charges of $13.2 million on a pre-tax basis as
explained above as compared to net income of $1.1 million, or $.21
per share, in the prior year nine month period.
Net sales increased 17% to $306.1 million from $261.5 million in
the previous year's nine month period as a result of increased
wholesale sales and increased retail sales from new openings of
Company-owned craft superstores. The operating loss in the current
period was $13.6 million as compared to operating income of $3.3
million in the prior year period. The operating loss of $13.6
million included $13.2 million of charges and adjustments as
explained above and reflected reduced operating results in the third
quarter.
Ben Franklin Retail Stores is a franchisor to more than 300
craft stores, including craft superstores, and more than 540 variety
stores, and wholesaler to holders of over 800 merchandise agreements
throughout the United States and internationally. In addition, the
Company currently owns and operates 41 Ben Franklin Crafts
Superstores, which are expanded-format, full service stores
providing craft products and craft classes for their customers. The
Company is headquartered in Carol Stream, Illinois.
BEN FRANKLIN RETAIL STORES, INC. AND SUBSIDIARIES
CONDENSED STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED)
AND SUMMARIZED BALANCE SHEET DATA (UNAUDITED)
(In thousands, except per share amounts)
Third Quarter Ended Nine Months Ended
December 31, December 31,
1995 1994 1995 1994
Income Statement Data:
Net Sales $102,867 $94,183 $306,094 $261,551
Operating costs
Cost of sales,
buying and
occupancy 92,269 83,639 274,379 235,370
General and
administrative
expenses 13,815 8,384 30,617 20,369
Restructuring
Charge 11,213 -- 11,213 --
Depreciation and
amortization 1,305 841 3,516 2,471
Total operating
expenses 118,602 92,864 319,725 258,210
Operating income (loss) (15,735) 1,319 (13,631) 3,341
Interest expense - net 2,324 892 5,284 1,864
Other income (expense) 136 83 222 316
Income (loss) before
income taxes (17,923) 510 (18,693) 1,793
Income tax expense
(benefit) (6,218) 200 (6,472) 655
Net Income (Loss) $(11,705) $ 310 $(12,221) $ 1,138
BEN FRANKLIN RETAIL STORES, INC. AND SUBSIDIARIES
CONDENSED STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED)
AND SUMMARIZED BALANCE SHEET DATA (UNAUDITED)
(In thousands, except per share amounts)
Third Quarter Ended Nine Months Ended
December 31, December 31,
1995 1994 1995 1994
Primary earnings per share
Net Income (Loss) $(2.14) $ .06 $(2.22) $ .21
Average Common Shares
Outstanding 5,463 5,519 5,503 5,510
Fully diluted earnings
per share
Net Income (Loss) $ N/A $ N/A $ N/A $ N/A
Average Common Shares
Outstanding 9,173 9,229 9,173 9,224
Summarized Balance Sheet Data: As of
December 31, 1995 March 31, 1995
Total Assets $227,200 $219,500
Working Capital 92,800 65,600
Long-Term Obligations
Excluding Current Portion 110,900 61,000
Stockholders' Equity 47,400 59,400
MOORESTOWN, N.J., Feb. 2, 1996 - href="chap11.todays.html">Today's Man, Inc.
(Nasdaq: TMAN) announced that it has filed a voluntary petition to
reorganize under Chapter 11 of the Bankruptcy Code. Under Chapter
11, Today's Man, Inc. would continue to operate its business under
Court protection from creditors, while seeking to work out a Plan of
Reorganization. "The petition was filed in the U.S. Bankruptcy
Court for the District of Delaware.
The Company is in the process of finalizing $25 million of
Debtor In Possession (DIP) facing, subject to Bankruptcy Court
approval. "The Company believes that the financing should provide
adequate funding throughout the reorganization period.
David Feld, Today's Man Founder and Chairman of the Board and
Chief Executive Officer, said, "The decision to file for bankruptcy
was difficult, but we feel it represents the most viable approach to
restructuring our business to respond to the adverse conditions
facing the retailing industry. Regardless of the present negative
industry environment, we believe that Today's Man has an appealing
concept, significant positions in several major markets and wide
name recognition among consumers. The reorganization will allow us
to build on these qualities and take the initiatives necessary to
ensure a strong future for the Company."
Mr. Feld announced that, in connection with the restructuring,
the Company plans to accelerate its program to sharply reduce
operating costs and streamline major departments. Today's Man
previously announced that it would not open any new stores in 1996
in order to concentrate on improving results at its existing stores
and markets.
"We are grateful for our constructive relationships with our
suppliers and the loyalty and commitment of our associates, and with
their continued support we believe we will come through this process
as a more competitive company," Mr. Feld concluded.
Today's Man, Inc. currently operates 35 menswear superstores in
the Philadelphia, New York, Washington and Chicago markets and one
outlet in Florida. It offers a wide selection of tailored clothing,
furnishings, accessories and sportswear at everyday low prices.
CONTACT: Frank E. Johnson, Vice President and Chief Financial
Officer, 609-722-6380, or David Feld, Chairman of the Board &
C.E.O.,both of Today's Man, Inc., 609-722-6340; or Edward Nebb or Jeff
Majtyka of Morgen Walke Associates, 212-850-5600/
HUNTINGTON, W.Va., Feb. 2, 1996 - Champion Industries,
Inc. (Nasdaq: CHMP) today announced that it has completed the
acquisition of the operations of E.S.
Upton Printing Company, Inc.
of New Orleans, Louisiana. Champion's wholly-owned subsidiary,
Bourque Printing of Baton Rouge, paid cash and assumed certain of
Upton's liabilities in exchange for substantially all of Upton's
assets. The transaction was completed in accordance with Upton's
confirmed Chapter 11 bankruptcy case in the U.S. Bankruptcy Court
for the Eastern District of Louisiana.
Upton Printing, founded in 1889, is a New Orleans-based company
specializing in high end color printing. Upton's clients include
not only local New Orleans companies but also prominent regional and
national accounts. Bourque's New Orleans operations will be
conducted under the Upton Printing name as a division of Bourque.
Champion Industries Chairman Marshall T. Reynolds hailed the
acquisition as "a significant step in the growth of our Louisiana
operations. This is a particularly good fit within the Bourque
framework, and I feel it will produce results quickly."
Upton Printing owner and President, William R. Bell, said
joining forces with Bourque "gives us the ability to immediately
offer the full line of Champion Industries products to our
customers. Now that we have Champion's financial muscle working for
us, we can concentrate on selling everything from business forms to
data supplies along with our high end color printing."
Bourque General Manager Doug McElwain said that this will
"dramatically enhance our presence in New Orleans. Our sales staff
now will have a first class base of operations there, and we plan to
place data products inventory at Upton right away."
The combined Bourque and Upton operations will account for over
$9 million in annual sales in Louisiana. Upton's sales have
approximated $2.5 million per year. The parent company, Champion
Industries, had sales of more than $44 million in its most recent
fiscal year.
Champion Industries, whose stock is traded on the Nasdaq Stock
Market under the symbol CHMP, is headquartered in Huntington, WV.
The firm is a major commercial printer, business form manufacturer
and supplier of office products and office furniture. Champion
serves the entire southeastern United States through its regional
markets in West Virginia, Kentucky, Ohio, Tennessee, Louisiana,
Mississippi, Maryland and the Carolinas.
CONTACT: Joseph C. Worth, Chief Financial Officer of Champion,
304-528-2791, or home, 304-525-6771
NEW YORK, Feb. 2, 1996 - Price Waterhouse LLP has
appointed M. Freddie Reiss as managing partner of the firm's
national Corporate Recovery practice, which includes its Business
Turnaround Services segment. The practice, with more than 200
professionals, provides comprehensive, business, systems and
litigation consulting to debtors and equity shareholders of
companies in transition due to reorganization, restructuring,
merger, acquisition, divestiture, bankruptcy and dissolution.
Prior to his new post, Reiss, 49, was responsible for Price
Waterhouse's Corporate Recovery unit in the western region and co-
director of the U.S. practice.
Reiss has extensive experience in corporate recovery workouts,
turnarounds and bankruptcy matters in the real estate, retailing,
health care, financial services, manufacturing and service
industries. He has worked on many complex bankruptcy matters such
as those involving Orange County (California), Lincoln Savings,
Executive Life Insurance and House of Fabrics.
Mike Gagnon, senior partner of the firm's national Dispute
Analysis and Corporate Recovery practice, said, "Freddie is an
outstanding leader who will bring to our Corporate Recovery practice
unsurpassed experience and a passion for service to our clients."
Reiss joined Price Waterhouse as a partner in 1988 and was one
of the founders of the firm's insolvency practice. He was recently
invited to serve as a Fellow of the American College of Bankruptcy
and is a member of the Association of Insolvency Accountants, the
Turnaround Management Association and the Los Angeles Bankruptcy
Forum. He is also a member of Price Waterhouse's Worldwide
Insolvency Leadership Team. Reiss is a Certified Public Accountant
in New York and California and is a Certified Insolvency and
Reorganization Accountant. He received his B.B.A. from the City
College of New York.
The Corporate Recovery practice is part of the Price
Waterhouse's Dispute Analysis and Corporate Recovery consulting
unit. With over 400 professionals in 17 major U.S. cities, the
Dispute Analysis and Corporate Recovery practice provides litigation
consulting on a full range of litigation matters as well as
operational and financial consulting to businesses and their
creditors.
For nearly 150 years, Price Waterhouse has helped the world's
leading companies solve complex business problems. Today, through a
worldwide network comprising 53,000 professionals in 119 countries
and territories, Price Waterhouse assists clients in implementing
strategies to improve business performance; effecting organizational
and strategic change; using information technology for competitive
advantage; and meeting audit and tax requirements. Price Waterhouse
LLP, with 16,000 men and women throughout the U.S., is a vital part
of the worldwide Price Waterhouse organization.
CONTACT: Ellen Ringel of Price Waterhouse, 212-819-5021/
SKOKIE, Ill. -- Feb. 2, 1996 -- U.S. Robotics
Corporation (NASDAQ:USRX) announced today that it has withdrawn its
bid to acquire Hayes Microcomputer
Products, Inc.
U.S. Robotics had sought to acquire Hayes, which filed for
Chapter 11 Bankruptcy in November 1994, pursuant to a plan of
reorganization filed with the United States Bankruptcy Court for the
Northern District of Georgia in October 1995. The company announced
the withdrawal of its plan to the Bankruptcy Court during ongoing
hearings on the confirmation of two other competing reorganization
plans.
John Mc Cartney, U.S. Robotics executive vice president and
chief operating officer, said, "The company's management concluded,
in light of all the circumstances, that acquiring Hayes would not be
in the best interests of U.S. Robotics and its stockholders. "We
evaluated and re-evaluated this transaction in light of the other
opportunities for growth that are available to us and ultimately
decided that it would be better to deploy our financial and
operational resources in other directions."
In addition, U.S. Robotics' proposed transaction had not been
cleared by the Federal Trade Commission (FTC), which was reviewing
it under the Hart-Scott-Rodino antitrust law. "We believe we could
have obtained the necessary FTC approval on terms that would have
been acceptable, but this was one of the many factors taken into
account in our analysis," said Jonathan Zakin, U.S. Robotics
executive vice president for strategy and corporate development.
The court hearings continue with respect to the two remaining
plans for the reorganization of Hayes which were proposed by Hayes
as debtor-in-possession and by the Official Committee of Unsecured
Creditors. U.S. Robotics continues to be interested in the case as
a creditor, and it has also objected to certain provisions of the
other plans which would have the effect of transferring a license
under certain patents owned by a U.S. Robotics subsidiary to the
reorganized entity.
All of the proposed plans would pay the claims of Hayes'
creditors in full with interest. The proposal withdrawn by U.S.
Robotics would have paid the Hayes shareholders $97.5 million,
primarily in U.S. Robotics shares, subject to the reduction in the
event creditors' claims and unpaid administrative expenses exceed
$85 million. The debtor's plan would restructure the equity of
Hayes, with funding from new investors and the buyout of
shareholders other than founder, Dennis Hayes. The Creditors
Committee plan is based upon the proposed acquisition of Hayes by
Diamond Multimedia, Inc. On January 25, 1996, Diamond modified its
bid, increasing the total consideration to the shareholders of Hayes
from $100 million to $111 million, payable in a combination of cash
and Diamond stock.
U.S. Robotics (NASDAQ:USRX) is one of the world's leading
suppliers of products and systems that provide access to
information. The company designs, manufactures, markets and supports
remote access servers, enterprise communications systems,
desktop/mobile client products, modems and telephony products that
connect computers and other equipment over analog, digital and
switched cellular networks, enabling users to gain access to, manage
and share data, fax and voice information. Its customers include
Internet service providers, regional Bell operating companies and a
wide range of other large corporations, businesses, institutions and
individuals. The company's 1995 sales were $889.3 million.
CONTACT: U.S. Robotics Corporation, Skokie;
Karen J. Novak, Media Relations, 708/982-5244;
C. David Hall, Investor Relations, 708/982-5162
DALLAS, Feb. 2, 1996 - USTrails Inc. (OTC:USTQ) today
reported results for the second quarter of fiscal 1996, which ended
Dec. 31, 1995.
For the three months ended Dec. 31, 1995, USTrails reported a
net loss of $704,000 or $.19 per share on revenues of $18.8 million,
compared with a net loss of $3.2 million or $.86 per share on
revenues of $20.3 million for the same period last year. For the
six months ended Dec. 31, 1995, USTrails reported a net loss of $1.9
million or $.51 per share on revenues of $43.7 million, compared
with a net loss of $5.9 million or $1.60 per share on revenues of
$45.5 million for the same period last year. Although revenues
declined during the current periods, there were greater decreases in
expenses, principally campground operating costs and interest, which
were primarily responsible for the improvement in results. The
company expects to report a net loss for fiscal 1996.
On Jan. 31, 1996, USTrails repurchased $7.4 million of the 12
percent Secured Notes due 1998 for $5.3 million, including accrued
interest. Following this repurchase, USTrails has outstanding
$101.4 million principal amount of Secured Notes. As previously
disclosed, based on its current business plan, USTrails believes
that a recapitalization or reorganization of the company and its
subsidiaries will be required by no later than fiscal 1997 to
address the mandatory redemptions and maturity of the Secured Notes.
USTrails presently intends to discuss recapitalization or
reorganization alternatives with the holders of its Secured Notes
between now and June 30, 1996.
USTrails, through its subsidiaries Thousand Trails, Inc. and
National American Corporation (NACO), owns and operates a system of
60 membership-based campgrounds, which is one of the largest private
campground systems in the United States. USTrails also manages
timeshare facilities and owns certain real estate at eight full
service resorts and provides a reciprocal use program for members of
approximately 330 recreational facilities.
CONTACT: Harry J. White Jr., USTrails, 214-243-2228/