MT. LAUREL, N.J. -- Feb. 8, 1996 -- Tyco Toys Inc.
(NYSE: TTI) today reported Net Sales of $709,109,000 for the year
ended December 31, 1995, compared to $753,098,000 for 1994. The Net
Loss for 1995 was $30,429,000 ($.87 per share) after restructuring
charges of $8,900,000 compared to a Net Loss of $35,130,000 ($1.01
per share) after a $4,700,000 special charge in 1994.
For the Fourth Quarter ended December 31, 1995, the Company
reported Net Sales of $215,072,000 compared to $246,768,000 for the
same period in 1994. The Net Loss for the Fourth Quarter was
$18,089,000 ($.52 per share) after a $4,000,000 ($.12 per share)
restructuring charge for closing certain International facilities
compared to a Net Loss of $13,484,000 ($.39 per share) in 1994.
Gary Baughman, President and Chief Executive Officer, said
"Modestly higher Sales in the U.S. in the Fourth Quarter and Full
Year were more than offset by sharply lower Sales in the Company's
International and Preschool units. Results were affected by the
difficult retail climate worldwide, extensive restructuring, and the
discontinuing of action figure toys and other unprofitable product
Mr. Baughman continued, "Net Sales and Operating Profit in the
U.S. business unit benefitted in 1995 from strong sell-through at
retail of core brands such as Radio Control and Matchbox(R) and the
successful introduction of new products such as Doodle Bear(TM) and
Magna Doodle(R) 3-in-1 Play Center. In addition, our domestic
operations were favorably impacted by streamlined operations and
Mr. Baughman noted, "While the aggressive restructuring of the
Company's International and Preschool units negatively impacted
sales and operating results in 1995, we expect these actions will
generate substantial savings and improved results beginning in
Mr. Baughman also noted that despite the net loss for the year,
the Company's positive cash flow from operations during 1995,
partially attributable to lower inventories, resulted in a $17
million reduction in short-term debt.
Mr. Baughman added, "We are encouraged by the very positive
reaction to our 1996 product line at the recently concluded European
Toy Fairs and anticipate similar strong reception to the line at
next week's American International Toy Fair."
Tyco Toys, the third largest U.S. toy manufacturer, markets a
broad range of products worldwide, including a wide variety of
Sesame Street(R) preschool toys, Tyco(R) radio control vehicles,
View-Master(R) 3-D viewers, Magna Doodle(R) drawing toys and
Matchbox(R) diecast vehicles and playsets.
Tyco Toys Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
For the Quarters Ended For the Years Ended
December 31, December 31,
1995 1994 1995 1994
Net sales $215,072 $246,768 $709,109
$753,098 Cost of goods sold 130,715 150,308 416,236
Gross profit 84,357 96,460 292,873
and promotion 51,249 57,463 160,779
172,462 Selling, distribution
expenses 31,572 36,977 119,066
123,622 Restructuring charge 4,000 -- 8,900
4,700 Amortization of
goodwill 1,585 1,516 6,410
expenses 88,406 95,956 295,155
(loss) (4,049) 504 (2,282)
net 7,667 9,577 28,026
expense, net 1,710 2,129 (2,074)
Loss before taxes (13,426) (11,202) (28,234)
for income taxes 3,845 1,500 (1,005)
Net loss (17,271) (12,702) (27,229)
dividends 818 782 3,200
Net loss applicable
shareholders ($18,089) ($13,484) ($30,429)
($35,130) Net loss per common
share ($0.52) ($0.39) ($0.87)
shares outstanding 34,826 34,715 34,788
Tyco Toys Inc.
Consolidated Balance Sheets
(In thousands, except share amounts)
Assets Current assets Cash and cash equivalents
$27,604 $30,476 Receivables, net 187,503
211,400 Inventories, net 56,710 66,284 Prepaid
expenses and other
current assets 19,738 24,389 Deferred taxes
Total current assets 304,563 349,780
Property and equipment, net 33,021 47,240
Goodwill, net of accumulated
amortization 226,112 231,292 Deferred taxes,
noncurrent 28,560 23,732 Other assets
Total assets $615,132 $670,635
Liabilities and Stockholders'
equity Current liabilities Notes and acceptances
payable $60,923 $77,831 Current portion
long-term debt 1,053 1,165 Accounts payable
45,557 51,325 Accrued expenses and other
current liabilities 93,179 95,107
Total current liabilities 200,712 225,428
Long-term debt, net of
current portion 147,180 146,851 Other
liabilities 1,900 2,124
Stockholders' Equity 265,340 296,232 Total
stockholders' equity $615,132 $670,635 -0-
SECAUCUS, N.J., Feb. 7, 1996 -
Petrie Retail Inc., a
privately-owned company, today reported that the United States
Bankruptcy Court for the Southern District of New York has extended
the company's exclusive periods in which to file a plan of
reorganization and during which to solicit acceptances of its
reorganization plan through July 31, 1996 and September 30, 1996,
In October 1995, as a result of the difficult retailing
environment, Petrie Retail Inc. filed a voluntary petition for
protection under chapter 11 of the U.S. bankruptcy code.
CONTACT: Tom Daly, or Dawn Dover, or Adam Weiner, all of Kekst and
MEMPHIS, Tenn., Feb. 7, 1996 - href="chap11.harrahs.html">Harrah's Entertainment,
Inc. (NYSE: HET) today reported record results for the year and
quarter ended Dec. 31, 1995. Earnings per share for the year and
fourth quarter, before the write-down of certain gaming projects,
were $1.34 and 23 cents per share, respectively. After the 58 cents
per share after tax impact of these fourth quarter write-downs,
earnings per share were 76 cents for 1995 and a loss of 35 cents for
the fourth quarter.
EBITDA (Earnings Before Interest, Taxes, Depreciation and
Amortization), excluding the project write-downs and preopening
costs in both 1994 and 1995, rose 22.8 percent to $450.1 million in
1995. EBITDA in traditional markets was essentially even with 1994,
but EBITDA in emerging markets rose 45.0 percent. Overhead costs
declined 37.1 percent.
The company reported record revenues of $1.55 billion for the
year and $378.4 million for the quarter, increases of 15.7 percent
and 10.2 percent, respectively. Excluding the project write-downs,
records for operating income, net income and earnings per share were
set for both the year and the quarter.
The write-downs recorded in the fourth quarter 1995 totaled
$93.3 million, before tax, and included write-offs of investments in
and advances to various joint ventures, but primarily in New
The results for 1995 included records for revenues and operating
income in the company's riverboat casino division for the quarter
and year. Leading the riverboat division results were revenue and
operating income records in Joliet, Shreveport and North Kansas City
for the year and quarter. 1995 results also include a full year of
results from Harrah's Ak-Chin, operated for the Ak-Chin tribe south
At Harrah's Atlantic City, operating income for the quarter was
down 7.8 percent from the prior year's fourth quarter record,
primarily as a result of higher promotional costs and depreciation
expense. For the year, operating income at Harrah's Atlantic City
was up 14.9 percent.
Harrah's southern Nevada properties remained relatively flat
with prior year results in both the fourth quarter and for the year.
Harrah's Las Vegas finished the year down 1.2 percent from its prior
year record operating income. Laughlin's operating income edged up
slightly during the fourth quarter from the prior year period, but
was down for the year overall.
In northern Nevada markets of Reno and Lake Tahoe, Harrah's
operating income declined 9.9 percent from the prior year fourth
quarter and 12.3 percent from the prior year. The decline came from
the Reno market, where a new competitor opened in August and bad
weather had impacted business earlier in the year.
"From an operations standpoint, Harrah's had a remarkable year.
Our riverboat casino division continues to post excellent results,
increasing its operating income by 29.3 percent over 1994," said
Philip G. Satre, president and chief executive officer for Harrah's
Entertainment. "In Atlantic City, we were at our highest level
since 1989, although we fell just short of an operating income
record. This excellent performance came as the property celebrated
its 15th anniversary.
"A pattern of improved results following investments in new
capacity can certainly be found. Casinos opened in emerging markets
where we have invested heavily in the past three years showed
substantial gains in earnings, while casinos in traditional markets
have for the most part been unchanged. We are now in the midst of
further investments in some of the emerging markets, as well as
launching several large investments in traditional markets," Satre
"In Nevada, we are pleased with northern Nevada results in light
of the first significant new competition in the Reno market for
decades. In southern Nevada, Harrah's Las Vegas has maintained a
pace nearly equal to its record set two years ago," Satre continued.
"It is this competitive performance in Las Vegas that encouraged us
to announce the major expansion, renovation and repositioning of our
property there, which will roll out over the next year and a half."
"In addition to Las Vegas, Harrah's has begun a major hotel
expansion and casino renovation in Atlantic City, and expansions and
renovations in North Kansas City, Tunica and Joliet," Satre pointed
"In New Orleans, we continue to work on a plan of reorganization
of the Harrah's Jazz Company partnership under Chapter 11 bankruptcy
protection," Satre commented. "Since the result of any plan is
undetermined at this time, the write-downs we have taken during the
fourth quarter include our entire remaining investment in the
During December, Harrah's opened a casino it is managing for the
Upper Skagit Indian tribe north of Seattle, Washington. Last
weekend, Harrah's first international property, Harrah's Sky City in
Auckland, New Zealand, opened its casino phase of a multi-use
Development costs were down for the year and quarter, and group
staff costs overall declined 18.2 percent for the year and 34.0
percent for the quarter.
Corporate expense was down slightly for the fourth quarter 1995
compared to the same period last year and slightly higher for the
Interest expense for the fourth quarter was unchanged from prior
year. The 1995 fourth quarter included one and a half months of
joint venture interest from New Orleans of $4.3 million, compared to
$2.0 million in New Orleans joint venture interest during the same
period in 1994. For the year, the company's share of New Orleans
interest expense was $19.2 million, accounting for all of the
increase in the company's interest expense over the prior year.
Both 1995 and 1994 total results include the contributions from
discontinued hotel operations while owned by the company. The
company's hotel business was spun off in June 1995. Costs
associated with the spin-off of 21 cents per share also impacted
1995 full year results. 1994 results were impacted by an 8 cents per
share charge due to a change of accounting policy.
Final earnings per share for 1995, including all project write-
downs, six months of discontinued hotel results and the costs of the
hotel spin-off were 76 cents per share compared to 76 cents per
share in 1994.
Harrah's Entertainment, Inc., the premier name in the casino
entertainment industry, is the most geographically diversified
casino company in North America.
HARRAH'S ENTERTAINMENT, INC.
CONSOLIDATED SUMMARY OF OPERATIONS
Fourth Quarter Ended Fiscal Year Ended
(In thousands, except Dec. 31, Dec. 31, Dec.31, Dec. 31,
per share amounts) 1995 1994 1995 1994
Revenues $378,434 $343,558 $1,550,076 $1,339,406
Operating profit before
preopening costs, project
write-downs and corporate
expense $ 73,078 $ 63,903 $354,066 $ 313,407
Preopening costs (450) -- (450) (15,313)
Project write-downs (93,348) -- (93,348) --
Corporate expense (9,311) (9,832) (30,347) (28,907)
Operating income (loss) (30,031) 54,071 229,921 269,187
Interest, net of interest
capitalized (22,314) (22,166) (94,416) (78,322)
Provision for settlement of
litigation and related
costs -- (50,942) -- (53,449)
Other income, including
interest income 725 651 16,078 1,867
Income (loss) before income
taxes and minority
interests (51,620) (18,386) 151,583 139,283
Provision for income taxes 17,843 (9,746) (60,677) (75,391)
Minority interests (2,770) (4,229) (12,096) (13,908)
Income (loss) from continuing
operations (36,547) (32,361) 78,810 49,984
Earnings from hotel
operations, net of tax
provision of $9,833, $15,434
and $22,570 -- 6,389 21,230 36,319
Spin-off transaction expenses,
net of tax benefit of
$5,134 -- -- (21,194) --
Income (loss) before cumulative
effect of change in
accounting policy (36,547) (25,972) 78,846 86,303
Cumulative effect of change
in accounting policy, net
of tax benefit of $4,317 -- -- -- (7,932)
Net income (loss) $(36,547) $(25,972) $78,846 $ 78,371
Earnings (loss) per share
Continuing operations $ (0.35) $ (0.31) $0.76 $ 0.49
Earnings from hotel
operations, net -- 0.06 0.21 0.35
expenses, net -- -- (0.21) --
Cumulative effect of change
in accounting policy, net -- -- -- (0.08)
Net income (loss) $ (0.35) $ (0.25) $0.76 $ 0.76
Average common shares
outstanding 103,218 102,810 103,188 102,810
BETHLEHEM, Pa. -- Feb. 7, 1996 -- Piercing Pagoda,
Inc. (Nasdaq: PGDA) today announced record operating results for
the third quarter of fiscal 1996 which ended December 31, 1995.
Net sales in the third quarter ended December 31, 1995 increased
36% to $49.1 million from $36.1 million in the same period last
year. Net income increased 30% to $5.7 million, or $1.07 per share
for the third quarter compared to pro forma net income of $4.4
million, or $0.86 per share, a year ago. Comparable store net sales
increased 7% in the third quarter. The Company ended the quarter
with 463 stores, an increase of 122 stores, or 36%, compared to 341
at December 31, 1994
In the nine months ended December 31, 1995, net sales increased
38% to $94.5 million from $68.4 million in the same period last year
and comparable store net sales increased 11%. In the first nine
months of fiscal 1996, net income increased 44% to a record $5.9
million, or $1.11 per share, compared to pro forma net income of
$4.1 million, or $0.97 per share, reported in the first nine months
of fiscal 1995.
In a separate announcement, Piercing Pagoda stated that it will
acquire an additional 37 locations from href="chap11.earring.html">The Earring Tree, Inc.,
which is in bankruptcy, bringing the total number of locations
acquired to 63. The acquisition includes the leases for 23 kiosks
and 14 in-line stores along with the physical kiosks and fixtures at
such locations. There will be no inventory purchased.
John F. Eureyecko, Executive Vice President and Chief Financial
Officer, commented, "Our strong earnings performance is particularly
gratifying given the bad winter weather in the northeast during two
busy shopping weeks in December and the extra costs associated with
the acceleration of our aggressive new store opening schedule.
Mr. Eureyecko continued, "The acquisition of the 37 Earring Tree
stores provides us with an additional opportunity to add desirable
kiosk locations to our portfolio, as well as several key in-line
stores. While we remain focused on our kiosk operations, our in-
line store sales have been very successful and, subsequently, this
acquisition allows us the opportunity to continue to expand this
concept. The acquisition further underscores our commitment to
growth through store expansion and reaffirms our commitment to
developing complimentary retail concepts."
Piercing Pagoda, Inc. is the largest specialty retailer of
jewelry through kiosk stores in the United States, operating 468
Piercing Pagoda and Plumb Gold stores in regional shopping malls
throughout the country. The Company offers an extensive selection
of popular-priced 14 and 10 karat gold earrings, chains, charms and
bracelets, as well as a selection of rings and silver jewelry, all
in basic styles at everyday low prices.
PIERCING PAGODA, INC.
Summary of Operations (Unaudited)
(In thousands, except per share data)
Three Months Ended Nine Months Ended
12/31/95 12/31/94 12/31/95 12/31/94 Net
sales $49,141 $36,089 $94,528 $68,395 Gross
profit 23,244 17,016 42,409 30,461 Income
from operations 9,753 7,611 10,463 8,117 Net income
(loss) 5,700 4,394 (A) 5,907 4,137 (A)
per share $ 1.07 $ 0.86 (A) $ 1.11 $ 0.97 (A)
shares outstanding 5,350 5,098 (A) 5,319 4,280 (A)
(A) Reflects pro forma results of operations. Upon consummation of
the Company's initial public offering in October 1994, the Company
was converted to a "C" corporation from an "S"corporation.
Accordingly, pro forma net income presents the results of
operations as if the Company had been taxed as a "C" corporation
for the entire period reported. Net loss for the three month
and nine month periods ended December 31, 1994 was $3,895 and
CONTACT: John F. Eureyecko
Executive Vice President and
Chief Financial Officer
Naomi Rosenfeld/Eileen Howard/
Media contact: Suzanne Miller
HARRISBURG, Pa., Feb. 7, 1996 - The Office of Attorney
General seeks more than $100,000 in restitution for consumers in an
action filed today against a Luzerne County home construction and
The suit filed in U.S. Bankruptcy Court for the Middle District
of Pennsylvania by the Attorney General's Bureau of Consumer
Protection identifies the defendants as A. Dan Notari and Lorraine
Notari, doing business as Notari Construction from their home at 12
Curtis St., Pittston.
Attorney General Tom Corbett said the defendants have filed a
Chapter 7 bankruptcy action.
The suit alleges that the defendants took about $155,500 from
four consumers for home construction and home improvement projects
that were never completed. Work that was completed was done in a
shoddy fashion, according to the suit.
The suit charges that the defendants' actions violated the
state's Unfair Trade Practices and Consumer Protection Law, and it
asks the court to order the defendants to make restitution to
affected consumers and to pay civil penalties to the state.
The action was filed by Deputy Attorney General James M. Sysko
of the Bureau of Consumer Protection's Scranton office.
"The consumers in these cases have suffered serious financial
losses," Sysko said. "It is our position that these debts should
not be dischargeable under the bankruptcy action."
CONTACT: Jack Lewis, Press Secretary of the Office of Attorney
General, 717-787-5211, or at home, 717-657-9840
MIDLAND, Texas -- Feb. 7, 1996 -- Parker & Parsley
Petroleum Company ("Parker & Parsley") (NYSE:PDP) today announced
financial and operating results for the quarter and fiscal year
ending Dec. 31, 1995.
Comparing the fourth quarter of 1995 to the same period in 1994,
production cost fell $.45 per barrel of oil equivalent (BOE),
general and administrative (G&A) expense declined $.25 per BOE,
interest expense was down $.04 per BOE and DD&A dropped $1.00 per
BOE. For the fiscal year, net cash provided by operating activities
before working capital and other changes increased 14% to $155.2
Chairman and President, Scott D. Sheffield stated, "The fourth
quarter cost data and the increase in cash flow for the year
indicate material improvement in a number of key areas and are a
direct result of the hard work and dedication of our employees.
"Comparing the fourth quarter of 1995 to 1994, production costs,
general and administrative expense, and interest expense are all
decreasing both in total dollars and on a BOE basis. The reduction
of these costs has improved our operating margin by $.74 per BOE and
our net earnings by $1.74 per BOE from the fourth quarter of 1994.
"Except for the asset impairment charge, we would have reported
net income in the fourth quarter of 1995. We are extremely
encouraged by these results and the success of our 1995 drilling
program which contributed to the replacement of 281% of the reserves
produced in 1995. We will continue to build on this solid
foundation in 1996."
Fourth Quarter 1995
Parker & Parsley reported decreases in costs and expenses in
most of the major categories when compared to the fourth quarter of
1994. Production costs dropped to $29.1 million or $4.48 per barrel
of oil equivalent (BOE) in 1995 from $38.2 million or $4.93 per BOE,
a 9% decline per BOE from 1994.
Contributing to the drop was the sale of non-strategic, high
production cost or low margin properties, as well as a concentrated
effort to justify and reduce all operating costs. Specific
opportunities for significant reductions are being studied and
should impact 1996 results. G&A expense fell 31% to $7.4 million
from $10.8 million and 18% per BOE to $1.14 from $1.39 in the fourth
quarter of 1994. G&A declined due to restructuring both the
domestic and Australian organizations.
Interest expense was reduced to $14.7 million from $17.8 million
because of reductions in long term debt. The fourth quarter 1995
DD&A expense for oil and gas properties decreased 17% on a BOE basis
to $4.80 from $5.80 in the fourth quarter of 1994 as a result of
impairment charges and the reserve additions from the Company's
successful 1995 drilling program.
Revenues and production declined to $123.6 million and 6.5
million BOE in the fourth quarter of 1995 compared to $146.0 million
and 7.7 million BOE in the same period in 1994. Daily oil
production decreased to 33,960 barrels from 40,084 barrels and daily
gas production decreased to 220.3 Mmcf from 264.9 Mmcf in the fourth
quarter of 1994.
The decreased revenues and production are a direct result of the
Company's 1995 divestiture of non-strategic assets for which
aggregate proceeds of $175.1 million were received.
Parker & Parsley reported a net loss of $15.7 million ($.44 per
share) compared to a net loss of $9.5 million ($.28 per share) in
the fourth quarter of 1994. The after tax effect of the non-cash
asset impairment charge associated with SFAS No. 121 "Impairment of
Long Lived Assets" of $19.0 million ($.54 per share) as reported in
December 1995 was the primary cause for the increase in net loss
Fiscal Year 1995
For the year ended Dec. 31, 1995, net cash provided by operating
activities before working capital and other changes totaled $155.2
million in 1995, up 14% from the $135.6 million reported in 1994.
Increased oil and gas production coupled with stronger oil
prices and declining production costs were the leading contributors
to the improved cash flow. Long-term debt dropped to $589.2 million
at year end 1995, down $122.8 million or 17% from $712.0 million at
year end 1994.
Revenues increased 4% to $513.7 million from $496.2 million in
1994 and costs and expenses, before asset impairment charges,
increased 3% to $533.3 million from $516.7 million. Oil and gas
production revenues improved 11% to $375.7 million from $337.6
million, primarily from increased prices and higher production.
Average oil prices improved 10% to $16.96 from $15.40 in 1994 and
average gas prices were virtually unchanged at $1.84 in 1995 and
$1.89 in 1994.
Production was at the highest level in Parker & Parsley's
history despite the mid-year sale of non-strategic properties,
increasing 7% to 27.1 million BOE from 25.4 million BOE in 1994.
Daily oil production moved up to 35,348 barrels from 33,279 barrels
in 1994, while daily gas production was 233.7 Mmcf, up from 218.3
International daily production, primarily Australia, averaged
4,312 barrels in 1995 and 4,780 barrels in 1994 and 23.6 Mmcf
compared to 25.2 Mmcf in 1994. Non-strategic properties sold during
1995 contributed production for approximately one half of 1995.
Year end 1995 reserves were also at record levels despite
property sales and record production levels. Sheffield remarked,
"Even with production of 27.1 million BOE and property sales of 34.8
million BOE in 1995, Parker & Parsley increased its 1995 total
proved reserves by 5% to 297 million BOE. We added 76 million BOE
representing a reserve replacement rate of 281% of the 1995
production, and the acquisition and finding cost was only $2.73 per
The acquisition and finding cost for 1995 contributed to a 5%
drop in the three year average acquisition and finding cost to $4.79
per BOE and a 7% drop in the five year average to $4.37 per BOE.
Under the Company's expanded exploitation and exploration
program, 516 wells were spudded in 1995. Capital expenditures in
1995 totalled $208.1 million with $159.6 invested in drilling
opportunities and the remainder invested in strategic property
acquisitions at the division level. The Company plans to drill more
than 475 wells during 1996 with a capital budget of at least $175
Production costs per BOE declined 3% to $4.83 in 1995 from $5.00
in 1994 primarily due to the sale of marginal properties and ongoing
cost control efforts. General and administrative expense, adjusted
for $10.6 million of non-recurring charges, decreased to $1.07 per
Parker & Parsley realized a net loss of $99.8 million ($2.83 per
share) compared to a 1994 loss of $14.6 million ($.49 per share).
The net loss for 1995 includes several nonrecurring items:
$84.8 million after tax charge ($2.40 per share) associated with
the early adoption of SFAS No. 121 "Impairment of Long-Lived
$4.4 million after tax charge ($.12 per share) for financing
fees associated with the Company's acquisition activities which had
previously been capitalized and expenses associated with existing
legal matters included in other expenses,
$6.9 million ($.20 per share) after tax charge relating to the
amortization of deferred compensation awarded in 1993 and
organizational realignment changes included in general and
administrative expenses, and
$10.8 million ($.31 per share) after tax gain on disposition of
Parker & Parsley Petroleum Company is one of the largest public
independent oil and gas exploration and production companies in the
United States. Parker & Parsley's oil and gas properties are
located in the United States principally in the Permian Basin of
West Texas, the onshore Gulf Coast region of South Texas and
Louisiana, the Mid-Continent region, Argentina and in Australia.
CONTACT: Parker & Parsley, Midland;
Hermann E. Eben, 915/683-4768