RYE, N.Y. -- Feb. 15, 1996 -- Melville Corp.
(NYSE:MES), one of the nation's largest specialty retailers,
reported today its results for the fourth quarter and full year
ended Dec. 31, 1995.
Total net sales, inclusive of discontinued operations, for the
fourth quarter of 1995, which had one more selling day than the
fourth day of 1994, decreased 6.0% from sales of $3.7 billion for
the comparable period last year to $3.4 billion this year. Sales
for the 1995 quarter exclude those of Marshalls after its
disposition on Nov. 17, 1995. Adjusting for this disposition, total
net sales, inclusive of discontinued operations, increased 8.5%.
Same store sales for the quarter rose 3.0%.
The consolidated net loss for the quarter was $610.4 million
inclusive of a fourth quarter after-tax charge of $753 million
related to the company's previously announced comprehensive
restructuring plan.
Prior to the fourth quarter after-tax charge, consolidated net
earnings for the quarter were $147.7 million, or $1.36 per share,
compared to $212.7 million, or $1.97 per share for the 1994 fourth
quarter. Excluding Marshalls, as well as these charges, fourth
quarter net earnings were $1.44 per share in 1995, compared to $1.40
per share in 1994.
For the year ended Dec. 31, 1995, total net sales inclusive of
discontinued operations, were $11.5 billion, an increase of about 2%
from sales of $11.3 billion for the prior year. Adjusting for the
disposition of Marshalls, total net sales, inclusive of discontinued
operations, for the year increased, 6.7%. Same store sales for the
year increased 1.4%.
The consolidated net loss for 1995 was $657.1 million, after
taking into account the fourth quarter after-tax charge as well as a
$46 million after-tax charge related to a change in the company's
accounting policy for internally developed software. Adjusting for
these charges totalling $799 million, net earnings per share would
have been $1.26 per share, compared to $2.75 per share, for 1994.
Excluding Marshalls in both years, as well as the after-tax charges
in 1995, consolidated net earnings were $1.74 per share in 1995,
compared to $1.83 per share in 1994.
"There were several areas of strength in our performance in
1995, despite the decline in our overall results," said Stanley P.
Goldstein, chairman and chief executive officer. "CVS continued its
outstanding growth, once again generating record sales and operating
profits. Before special charges, operating profits at CVS jumped
20% to $274 million on sales of $4.9 billion. Footaction had an
excellent year, highlighted by a 13.1% gain in same store sales. In
addition, we made a number of important operating improvements in
several of our businesses, particularly Meldisco and Kay-Bee, which
are yielding positive results. However, the progress we made in
these areas was offset by weak performance in others, particularly
in the apparel segment."
On Oct. 24, 1995, the company announced a comprehensive
restructuring program to improve shareholder value. Its principal
components include the creation of three new, independent publicly
traded retailing companies focused on the chain drug, footwear and
toy industries; the sale of Marshalls; the planned sale of Wilsons
and This End Up; the consolidation of certain functions of Meldisco,
Footaction and Thom McAn as well as the reduction of Melville's
corporate overhead; and the closing of 330 underperforming stores.
"It has been less than four months since we announced our
restructuring program, and we are well on our way to completing its
objectives," said Goldstein. "Since the time of the announcement,
the company has:
"We are extremely pleased with our progress, and confident that
the combined actions we are taking will lead to significantly
improved profitability, greater financial strength and increased
value for our shareholders," Goldstein concluded.
As of Dec. 31, 1995, operating results include 6,657 stores and
leased departments, a decrease of 9.8% from the total of 7,378 as of
Dec. 31, 1994.
Melville operates specialty retail stores nationwide in four
business segments: prescription drugs, health and beauty care;
apparel; footwear; and toys and home furnishings. Its retail
divisions include CVS, Meldisco, Kay-Bee, Linens `N Things and
Footaction among others.
Melville Corp. and Subsidiary Companies
Consolidated Statements of Operations (unaudited)
($ and Shares in 000's, except per share amounts)
Fourth Quarter Ended
Dec. 31, % of Dec. 31, % of
1995 Sales 1994 Sales
Net sales $2,920,967 100.0 $3,135,709
100.0
Cost of goods sold, buying
and warehousing costs 1,941,831 66.5 2,020,664
64.4
Gross margin 979,136 33.5 1,115,045
35.6
Selling, general and
administrative expenses 732,136 25.1 732,308
23.4
Depreciation and amortization 42,577 1.5 43,817
1.4
Restructuring and asset
impairment charge 936,829 32.1
-- 0.0
Operating (loss) profit (732,406) (25.1) 338,920
10.8
Interest expense, net 16,649 0.6 13,141
0.4
(Loss) earnings from
continuing operations
before income taxes and
cumulative effect of change in
accounting principle (749,055) (25.6) 325,779
10.4
Income tax (benefit) provision (161,885) (5.5) 145,334
4.6
(Loss) earnings from continuing
operations before
cumulative effect of change in
accounting principle (587,170) (20.1) 180,445
5.8
(Loss) earnings from discontinued
operations, net (23,188) (0.8) 32,210
1.0
(Loss) earnings before cumulative
effect of change in accounting
principle (610,358) (20.9) 212,655
6.8
Cumulative effect of change in
accounting principle, net -- 0.0
-- 0.0
Net (loss) earnings $(610,358) (20.9) $212,655
6.8
Weighted average number of common
shares outstanding 105,089 105,595
(Loss) earnings from continuing
operations before cumulative
effect of change in accounting
principle $ (5.63) $ 1.67
Discontinued operations, net (0.22) 0.30
(Loss) earnings before cumulative
effect of change in accounting
principle (5.85) 1.97
Cumulative effect of change in
accounting principle -- --
Net (loss) earnings per share
of common stock $ (5.85) $ 1.97
Dividends per common share $ 0.38 $ 0.38
Number of stores open at end
of period
Year Ended
Dec. 31, % of Dec. 31, % of
1995 Sales 1994 Sales
Net sales $9,689,062 100.0 $9,445,678
100.0
Cost of goods sold, buying
and warehousing costs 6,574,658 67.9 6,238,378
66.0
Gross margin 3,114,404 32.1 3,207,300
34.0
Selling, general and
administrative expenses 2,722,621 28.1 2,576,680
27.3
Depreciation and amortization 197,745 2.0 180,356
1.9
Restructuring and asset
impairment charge 936,829 9.7
-- 0.0
Operating (loss) profit (742,791) (7.7) 450,264
4.8
Interest expense, net 54,977 0.6 32,385
0.3
(Loss) earnings from
continuing operations
before income taxes and
cumulative effect of change in
accounting principle (797,768) (8.2) 417,879
4.4
Income tax (benefit) provision (182,070) (1.9) 174,293
1.8
(Loss) earnings from continuing
operations before
cumulative effect of change in
accounting principle (615,698) (6.4) 243,586
2.6
(Loss) earnings from discontinued
operations, net 547 0.0 63,884
0.7
(Loss) earnings before cumulative
effect of change in accounting
principle (615,151) (6.3) 307,470
3.3
Cumulative effect of change in
accounting principle, net 41,955 0.4
-- 0.0
Net (loss) earnings $(657,106) (6.8) $307,470
3.3
Weighted average number of common
shares outstanding 105,081 105,481
(Loss) earnings from continuing
operations before cumulative
effect of change in accounting
principle $ (6.02) $ 2.15
Discontinued operations, net 0.01 0.60
(Loss) earnings before cumulative
effect of change in accounting
principle (6.01) 2.75
Cumulative effect of change in
accounting principle (0.40) --
Net (loss) earnings per share
of common stock $ (6.41) $ 2.75
Dividends per common share $ 1.52 $ 1.52
Number of stores open at end
of period 6,657 7,378
Note: Percentages may not foot due to rounding.
IN ACCORDANCE WITH APB OPINION NO. 30, THE FOOTWEAR SEGMENT HAS
BEEN CLASSIFIED AS DISCONTINUED AS DISCONTINUED OPERATIONS FOR ALL
PERIODS PRESENTED DUE TO ITS INTENDED SPINOFF DURING 1996.
Melville Corp. and Subsidiary Companies
Consolidated Balance Sheets (unaudited)
($ in 000's)
Dec. 31, Dec. 31,
1995 1994
ASSETS
Current assets:
Cash and cash equivalents $129,583 $117,035
Investments 175,000 --
Accounts receivable, net 296,393 229,833
Inventories 1,672,957 2,138,243
Prepaid expenses 285,995 165,388
Total current assets 2,559,928 2,650,499
Property, and equipment, net 1,114,404 1,526,922
Other non-current assets 287,230 558,068
TOTAL ASSETS $3,961,562 $4,735,489
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued
expenses $1,730,476 $1,320,193
Notes payable 52,000 200,000
Other current liabilities 15,212 122,549
Total current liabilities 1,797,688 1,642,742
Long-term debt(a) 327,698 331,340
Other non-current liabilities 287,083 378,472
Redeemable preferred stock 1,330 1,330
Shareholders' equity 1,547,763 2,381,605
TOTAL LIABILITIES AND EQUITY $3,961,562 $4,735,489
(a) Includes $309,400 and $323,000 related to the company's Employee
Stock Ownership Plan in 1995 and 1994, respectively.
Certain reclassifications have been made to the financial statements
of prior periods to conform to current period presentation.
CONTACT: Melville Corp., Rye
Nancy Christal, 914/925-4385 (for investors)
or
Kekst & Co.
Jim Fingeroth or Wendi Kopsick, 212/593-2655 (for media)
ATLANTA, Feb. 15, 1996 - Anacomp,
Inc. (NYSE: AAC) today
announced that it has reached a consensual agreement-in-principle
with all of its major creditor groups on the terms of a financial
restructuring plan to enable Anacomp's emergence from Chapter 11.
The agreement represents a compromise among Anacomp, its senior
secured lenders, and an official committee of unsecured creditors.
The company believes the support of these groups provides sufficient
votes for the confirmation of its reorganization plan, which is
being amended to reflect the terms of the agreement.
The agreement reached today calls for Anacomp's current debt and
accrued unpaid interest and dividends of approximately $460 million
(including preferred stock) to be reduced by approximately $173
million. In very general terms, the amended plan will provide for:
Anacomp filed a pre-negotiated plan of reorganization under
Chapter 11 of the United States Bankruptcy Code on January 5, 1996.
The agreement-in-principle announced today retains the company's
commitment to continue to pay its vendors on normal trade terms and
to honor all obligations to customers.
"This agreement-in-principle paves the way for Anacomp to emerge
from Chapter 11 on an expedited basis and allows management to focus
its energies on our customers," noted P. Lang Lowrey III, the
company's new president and chief executive officer. "In light of
today's agreement, we believe we can get our financial restructuring
plan approved by the bankruptcy court this Spring."
Anacomp is a leading provider of multiple-media data management
solutions, delivering cost-effective strategies that incorporate
micrographic, digital, and magnetic output media.
CONTACT: Jeff Withem, Corporate Communications, 404-876-3361, ext.
8527, or Nancy Vandeventer, Investor Relations, 800-350-3044, both
of Anacomp
BEND, Ore., Feb. 15, 1996 - Consep, Inc. (Nasdaq: CSEP)
today reported results for the fourth quarter and year ended
December 31, 1995.
Revenue for the fourth quarter of 1995 increased by 20% to
$4,002,000 from $3,344,000 reported in the same period last year.
Sales of proprietary products increased strongly by approximately
145% in the fourth quarter, offsetting a slight 3% decline in
revenues from distribution operations. The Company's net loss for
the fourth quarter was $1,163,000, or $0.15 per share, compared to a
net loss of $2,912,000, or $0.47 per share, in 1994. The fourth
quarter has historically produced lower revenues and a net loss due
to the seasonality of the insect control market. The reduction in
the net loss for this traditionally slow quarter was achieved as a
result of increased sales of proprietary products at stronger gross
margins while reducing operating expenses by 34% from their 1994
fourth quarter level. 1994 fourth quarter and year-end results
included a restructuring charge of $866,000.
For the year ended December 31, 1995, revenues increased 23% to
$30,844,000 from $25,120,000 reported for 1994. Importantly,
revenues from proprietary pest control products grew 64% in 1995 to
$9,385,000 from $5,738,000 in 1994. Revenues from distribution
operations increased 11%. The net loss for 1995 was $1,286,000, or
$0.19 per share, as compared to a loss of $5,850,000, or $0.97 per
share, in 1994.
Gross margins from the sale of proprietary products increased to
42% of proprietary product revenues in 1995 from 38% in 1994. Gross
margins from distribution operations increased to 18% in 1995 from
16% in 1994.
"Despite the quarter's seasonality, we are pleased with our
results and the strong increase in proprietary revenues," commented
Volker Oakey, President and CEO. "Sales in the quarter were led by
a 72% increase in revenues from proprietary consumer products and
the addition of revenues from Farchan Laboratories, acquired in
February 1995. For the year, revenues from agricultural proprietary
products grew by 70%, consumer products revenues increased 29% and
Farchan Laboratories contributed $1,194,000 in revenues."
"In 1995, we set out to grow our proprietary product revenues,
strengthen our gross margins and achieve profitability during our
seasonally strong first and second quarters. We are pleased to
report that we succeeded at accomplishing these goals. Demand for
our proprietary products is increasing and we feel that we are well
positioned to build on the expanding opportunity in 1996. In the
coming year, we will look to continue to capitalize on the sales
momentum of our pest control products, while controlling our costs
and improving our bottom line."
Consep, Inc. develops, manufactures and markets environmentally
safe pest control products for commercial agriculture and the
consumer home, lawn and garden markets. The Company currently has
five mating disruption products fully registered with the EPA for
commercial sales. Consep also owns and operates full-line
agrichemical distributors in key agricultural regions in order to
facilitate the market introduction and market expansion of its
proprietary products.
CONSEP, INC.
Consolidated Statements of Operations
For the Fourth Quarters and Years Ended December 31, 1995 and
December 31, 1994
4th Quarter 4th Quarter Year Ended Year Ended
Ended Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1995 1994
(unaudited) (unaudited)
Revenues:
Proprietary products $1,272,122 $ 520,133 $9,385,112 $5,737,783
Distribution 2,729,692 2,824,191 21,458,622 19,381,844
Total revenues 4,001,814 3,344,324 30,843,734 25,119,627
Cost of Revenues:
Proprietary products 819,343 459,800 5,478,827 3,542,715
Distribution 2,156,564 2,423,261 17,615,237 16,273,273
Total cost of revenues 2,975,907 2,883,061 23,094,064 19,815,988
Gross margin:
Proprietary products 452,779 60,333 3,906,285 2,195,068
Distribution 573,128 400,930 3,843,385 3,108,571
Total gross margin 1,025,907 461,263 7,749,670 5,303,639
Operating expenses:
Research and
development (1) 262,160 326,580 1,059,048 1,725,635
Selling, general and
administrative (1) 1,130,269 1,219,457 4,631,787 4,912,434
Distribution (2) 790,535 902,582 3,364,971 3,631,402
Restructuring costs -- 865,987 -- 865,987
Total operating
expenses 2,182,964 3,314,606 9,055,806 11,135,458
Other income (expense),
net -5,752 -58,372 19,657 -18,016
Net loss $-1,162,809 -2,911,715 -11,286,479 -5,849,835
Net loss per common and common
equivalent share $ -0.15 $ -0.47 $ -0.19 $ -0.97
Weighted average common
and common equivalent
shares outstanding 7,551,059 6,261,344 6,761,623 6,001,883
(1) Research and development and selling, general and
administrative expenses relate to the company's proprietary product
operations and to general corporate matters.
(2) Distribution expenses consist entirely of selling, general
and administrative expenses of the company's distribution operations
Consolidated Condensed Balance Sheets
Dec. 31, 1995 Dec. 31, 1994
ASSETS
Current assets:
Cash, cash equivalents and
short-term investments $ 2,206,096 $ 3,405,149
Accounts receivable 3,797,425 3,473,763
Inventories 8,012,430 5,697,053
Other current assets 616,717 491,887
Total current assets 14,632,668 13,067,852
Property and equipment, net 3,215,841 3,065,635
Other assets 3,710,065 3,518,144
Total assets $21,558,574 $19,652,631
LIABILITIES & SHAREHOLDERS' EQUITY
Current liabilities:
Bank lines of credit $ 1,710,997 $ 1,376,807
Other current liabilities 3,937,950 4,829,203
Total current liabilities 5,648,947 6,206,010
Long-term liabilities 1,228,147 1,006,675
Total liabilities 6,877,094 7,212,685
Shareholders' equity 14,68l,480 12,439,946
Total liabilities and
shareholders' equity $21,558,574 $19,652,631
CHARLOTTE, N.C. -- Feb. 15, 1996 --
Pic 'N Pay
Stores, Inc., today announced that, as part of its new owners'
plans
to downsize and restructure the company, Pic 'N Pay has filed a
voluntary petition for reorganization under chapter 11 of the
Federal Bankruptcy Code. The filing, which was made in the U.S.
Bankruptcy Court for the District of Delaware in Wilmington, will
enable Pic 'N Pay to conduct business as usual under the protection
of the court while the new owners reorganize the company's
operations.
Based in Charlotte, N.C., Pic N' Pay Stores, Inc. is the largest
footwear and accessories retailer in the Southeastern United States.
The company operates approximately 800 stores in 20 states under the
Pic 'N Pay, Shoe World and Shoe City names and has annual revenues
of approximately $240 million. The company's stores are located in
malls, shopping centers and freestanding locations.
Pic 'N Pay Stores was acquired earlier this month by Sussex
Holdings, Inc. from the Bata Shoe Organization, a privately held
company based in Canada. Sussex Holdings is a New Jersey-based
investor group led by William F. Taggart, a private investor and
turnaround specialist. Mr. Taggart has been named Chairman of Pic
'N Pay. Joseph Gajda will continue as President and CEO of the
chain.
"Founded nearly 40 years ago, Pic 'N Pay has grown to become one
of the largest footwear retailers in the nation," Mr. Taggart said.
"In the last few years, however, the company has been hampered by
lackluster consumer spending on apparel and fierce competition in
the footwear industry. Nonetheless, we strongly believe that Pic 'N
Pay continues to have a great franchise and are committed to using
the reorganization process to ensure that the company reaches its
full potential in the future.
"We hope to achieve a successful reorganization as quickly as
possible," Mr. Taggart said. "Our goal is to downsize the
operation, including closing a substantial number of underperforming
stores, to return the company to profitability. Once this process
has been completed, we will then pursue new opportunities for
growth. The company already has the right infrastructure in place to
achieve this goal, including a strong management team led by Joe
Gajda."
Mr. Gajda, the President and CEO, said: "Today's chapter 11
filing should not have any impact on our customers. All of our
stores are open, well-stocked, and conducting business as usual. We
intend to provide all customer services as normal."
CONTACT: Michael Freitag;
Todd Fogarty;
Kekst and Company;
(212) 593-2655
MOORESTOWN, N.J., Feb. 15, 1996 - href="chap11.todays.html">Today's Man, Inc.
(Nasdaq: TMANQ) and The Shoe Corporation of America (SCOA) division
of J. Baker, Inc. (Nasdaq: JBAK) announced that they have agreed to
open additional licensed shoe departments in nine Today's Man
stores. The departments will be located in the five Today's Man
stores in Washington, D.C., as well as Paramus, Wayne, East Hanover
and Woodbridge, New Jersey. These new shoe departments are
scheduled to open in mid-March. SCOA currently operates the shoe
departments in the Today's Man store in the Chelsea section of
Manhattan.
Today's Man Chairman and CEO, David Feld, stated, "We believe
the shoe departments will be an important part of the on-going
Today's Man merchandising strategies, and we are looking forward to
working with SCOA to continue to build our business relationship."
Today's Man, Inc., operating under the protection of Chapter 11
of the Bankruptcy Code as a debtor-in-possession, operates 28
menswear superstores in the Philadelphia, New York and Washington
markets.
CONTACTS: Frank E. Johnson, Vice President and Chief Financial
Officer of Today's Man, 609-722-6380; or Edward Nebb or Jeff Majtyka
of Morgen-Walke Associates, 212-850-5600