PACIFIC GROVE, Calif., March 13, 1996 - href="chap11.cambridge.html">Cambridge Biotech
Corporation (CBC) scientists today announced results of
laboratory
experiments indicating that animals co-infected with two tick-borne
pathogenic bacteria, one of which causes Lyme disease and the other
Human Granulocytic Ehrlichiosis (HGE), a recently described and
potentially fatal human disease, suffered a significant drop in
white blood cell levels in comparison with animals infected with
either pathogen alone. CBC scientists presented the data at the
twelfth sesqui-annual meeting of the American Society for
Rickettsiology and Rickettsial Diseases.
"These results reveal that co-infection with both Lyme disease
and HGE bacteria may place people at greater risk of serious, life-
threatening consequences. Along with other recently published data
indicating that ticks can transmit both Lyme disease and HGE
simultaneously, these results underscore the need for an accurate
diagnostic test for HGE and further research to develop effective
vaccines," said Richard Coughlin, Ph.D., Senior Director of
Microbial Disease Research, Cambridge Biotech Corp. and the study's
principal investigator.
"Through our collaborations with leading institutions including
Yale University School of Medicine, University of Rhode Island, the
California Department of Health, and the Centers for Disease Control
and Prevention, we are working to develop both diagnostics and
vaccines and possibly combination vaccines for both HGE and Lyme
disease," added Dr. Coughlin.
In the experiments described at the conference, the scientists
used ticks collected in the wild to infect laboratory animals.
Blood samples from the animals were then tested for antibodies to
the bacteria that cause Lyme disease and HGE. The researchers found
in this experiment that compared to animals that had been infected
with only one of the bacteria, animals that had been infected with
both bacteria had a 35% decrease in neutrophils, a type of white
blood cell which is integral in fighting disease pathogens and is a
target of infection by granulocytic Ehrlichia, the type of bacteria
that causes HGE. Animals that had been infected with only one
bacterium had normal neutrophil counts, suggesting that co-infection
with both pathogens is more dangerous than the "sum" of both
diseases individually.
Lyme disease is caused by the bacterium Borrelia burgdorferi and
is transmitted by bites from infected ticks. Infection results in a
characteristic skin lesion called "erythema migrans" which may be
accompanied by flu-like symptoms. Untreated cases of Lyme disease
can progress to involve the heart, nerves and joints, frequently
resulting in arthritis. HGE produces symptoms similar to, but
usually more severe than, those of Lyme disease, including severe
head and muscle aches, and the sudden onset of high fever. Such
similarities have often caused HGE to be misdiagnosed as Lyme
disease. This is important because some of the currently
recommended treatments for Lyme disease are ineffective for treating
HGE. HGE was first recognized in 1991, and since then over 400
cases have been reported in 30 states, with as much as a 5%
mortality rate. In 1994, company scientists and academic research
collaborators, building on tick-borne disease research begun several
years ago, developed culture methods for HGE and have subsequently
isolated nine strains of HGE from the northeastern U.S. The
research team also demonstrated that HGE is transmitted in this area
by the deer tick, the same tick that carries Lyme disease.
"We believe the agent of HGE is widely distributed in the
northeast and is quite prevalent in deer ticks," said Durland Fish,
Ph.D., Research Scientist at the Department of Epidemiology and
Public Health of the Yale University School of Medicine and an
investigator in the study.
Through collaborations with the University of Rhode Island and
Yale University School of Medicine as well as under a Collaborative
Research and Development Agreement (CRADA) with the Centers for
Disease Control and Prevention (CDC), Cambridge Biotech is
developing immunoflourescence and other assays to help characterize
the Ehrlichia bacterium and to more fully describe the prevalence of
HGE. In addition to isolating the organism in HL60, a cell line
that is widely used in this area of research, the company has
isolated the organism in at least six other unrelated cell lines.
CBC is developing HGE diagnostic tests and vaccines for
commercialization.
In addition to Dr. Coughlin and Dr. Fish, other investigators in
the study are Cindy Gingrich-Baker, also with Cambridge Biotech
Corp., and Thomas Mather, Ph.D., Director of the Center for Vector-
borne Diseases of the University of Rhode Island.
Cambridge Biotech Corporation, which filed for protection under
Chapter 11 of the United States Bankruptcy Code on July 7, 1994, is
a therapeutics and diagnostics company focusing on infectious
disease and cancer. The company is developing and commercializing
therapeutic and prophylactic vaccines for infectious diseases and
immunotherapeutics for cancer. The company's therapeutics business
includes the Stimulon(TM) family of adjuvants, the most advanced of
which, QS-21, is in clinical development through corporate and
academic partners, and proprietary vaccines. The proprietary
vaccines include a feline leukemia vaccine currently on the market
and vaccines in development in the areas of tick-borne diseases,
streptococcal pneumonia, bovine mastitis and canine Lyme disease.
Cambridge Biotech's diagnostic business is primarily focused on
retroviral Lyme and enteric diseases.
CONTACT: Gerald Beltz, Ph.D., VP of Research and Development of
Cambridge Biotech Corporation, 508-797-5777, or Robert Gottlieb,
Senior Vice-President of Feinstein Partners Inc., 617-577-8110
RICHMOND, VA., March 13 /PRNewswire/ - href="chap11.consumat.html">Consumat Systems, Inc.
(OTC-Bulletin Board: CSMT), the Richmond, Virginia based
incineration and pollution control equipment manufacturer, announced
today that it had consummated the Plan of Reorganization that the
United States Bankruptcy Court for the Eastern District of Virginia
in Richmond confirmed on February 28, 1996. Accordingly, the
Company's name has been changed to Reorganized Consumat Systems,
Inc., and, effective March 12, 1996, all trading in the firm's stock
will be in the shares of Reorganized Consumat Systems, Inc. Under
the Plan of Reorganization, each share of the pre-reorganization
Company is being exchanged for approximately .36 shares of
Reorganized Consumat Systems, Inc.
CONTACT: Mark E. Hills of Consumat Systems, Inc., 804-746-4120
MOORESTOWN, N.J., March 13, 1996 - href="chap11.todays.html">Today's Man, Inc.
(Nasdaq National Market: TMANQ) announced that it has received
formal approval from the U.S. Bankruptcy Court for its $20 million
debtor-in- possession (DIP) financing facility. The $20 million
facility, which is being financed by CIT Group/Business Credit,
Inc., had been previously approved by the Court as interim
financing.
"Now that our financing is in place and formally approved,
Today's Man will enjoy greater operating flexibility as we move
through the spring selling season and beyond," said David Feld,
President and Chief Executive Officer. "Our $20 million DIP
facility helps to ensure a steady flow of fresh merchandise,
supporting our efforts to increase sales and restore Today's Man to
profitability."
Today's Man operates 28 menswear superstores in the
Philadelphia, New York and Washington markets. The company offers a
wide selection of tailored clothing, furnishings, accessories and
sportswear at every day low prices.
CONTACT: Michael W. Kempner or Carreen Winters of MWW/Strategic
Communications, Inc. Public Relations, 201-507-9500
VERNON HILLS, Ill., March 13, 1996 - Citing weaker
housing demand, lumber price deflation, and a fourth quarter
restructuring charge, Wickes Lumber Company (Nasdaq: WIKS) today
reported a net loss for fiscal 1995. Company also announced the
extension of its bank revolving credit facility to January 1998.
The net loss for 1995 was $15.6 million, or $2.54 per common
share, compared to income of $28.1 million, or $4.59 per common
share, in 1994. Eliminating unusual items, the net loss for 1995 was
$2.7 million, or $0.44 per common share, compared to fully taxed and
adjusted income of $1.60 per common share in 1994.
1995 full year sales declined 1.4 percent to $972.6 million from
$986.9 million reported in 1994. The results for 1995 include 52
weeks of activity compared to 53 weeks in the previous year. On a
same store basis, sales declined 3.8 percent for the year or 2.1
percent when adjusted for the extra week of activity included in the
1994 results. Lumber deflation was a major contributor to the sales
decline estimated at approximately $45 million, or 4.6 percent of
total sales. Gross profit dollars were reduced by approximately $8
million due to lumber deflation related sales declines.
The Company reported a fourth quarter 1995 net loss of $15.4
million, or $2.50 per common share, compared to net income of $18.7
million, or $3.06 per common share, in the fourth quarter of 1994.
Eliminating the unusual items discussed below, net loss for fourth
quarter 1995 was $0.41 per common share compared to a fully taxed
and adjusted net income of $0.53 per common share in the fourth
quarter of 1994.
Lumber price deflation and declines in housing starts and
consumer sales, as well as an extra week of activity in 1994,
contributed to the fourth quarter sales decline of 23.9 percent
- $223.6 million compared to $293.8 million for the year ago period.
On a same store basis, sales declined 20.1 percent for the quarter
and 14.9 percent adjusted for the extra week of activity. Lumber
deflation was estimated to be nearly $12 million in the fourth
quarter, or 5.1 percent of sales.
In the 1995 fourth quarter, the Company charged $17.8 million
for restructuring and unusual items, or a negative $1.75 per share
net of taxes. Also included in the 1995 results was a $3.5 million
operating loss in connection with the start up of its Russian
operations, or $0.35 per share net of taxes, compared to a loss of
$366 thousand for the full year of 1994. The accounting for the
Company's interest in Riverside International Corporation, which
conducts these operations, was changed from the consolidation
reporting method to the equity reporting method in the fourth
quarter of 1995 in connection with the recently announced agreement
with two investment funds to each acquire a 25 percent interest in
these operations for a $10 million equity infusion. Riverside
International operates logging, sawmill and finishing mill
operations in Russia, principally in the Archangel area.
In the 1994 fourth quarter, the Company reversed a previously
established deferred tax asset valuation reserve, which resulted in
a benefit of $14.4 million, or $2.35 per share. Also included in
the 1994 fourth quarter was a $2.0 million charge for post-
employment and other related costs, or a negative $0.20 per share
net of taxes, and a $1.2 million gain on sale of the private label
credit card portfolio, or $0.11 per share net of taxes.
"Our disappointing 1995 results were caused by several factors,"
said J. Steven Wilson, Wickes Chairman and Chief Executive Officer.
"We began 1995 with a view that market demand would be sufficiently
positive so that we could focus our energies on executing our
strategic repositioning of becoming a pro-oriented distributor. We
believed that our success in growing professional sales would offset
most of the costs of optimizing the Company for builder customers.
"We did succeed in growing professional sales," stated Wilson.
"Our sales to residential builders grew by 6.2 percent, and sales to
commercial builders grew by 46 percent. An analysis of regional
housing starts data indicates that Wickes builder sales outperformed
housing start performance in each of our three regions. We believe
our strategy is sound.
"However, Wickes - like our industry - faced the unexpected
challenges of weaker home construction and consumer markets,
compounded by a sharp decline in lumber prices which left us with
the costs of handling higher unit volume with a reduced margin
dollar stream. We have taken cost cutting actions consistent with
the level of demand, but we did not reduce costs as quickly as
margin dollars were impacted. To further strengthen our position,"
Wilson explained, "we took a $17.8 million charge in the fourth
quarter which primarily reflects the costs of closing six
uncompetitive facilities, consolidating ten others with nearby
centers, other restructuring planned for 1996 and unusual items.
"Most importantly," emphasized Wilson, "we are continuing to
scrutinize every asset and activity as we stress improvement in
return on assets and productivity and continued growth in our
professional business. Most market forecasters are calling for a
better year in residential building, and another solid year in
commercial construction. We believe we are much better positioned in
1996 as a result of our initiatives on expense reduction, asset
management, and building professional sales growth. We are also
studying strategies designed to reduce our sensitivity to commodity
price fluctuations."
The Company also announced today that its Bank Group has agreed
to an extension of the Company's revolving credit agreement to
January 1998. In addition, the facility was reduced from $145
million to $130 million and certain covenants were amended. "We are
very pleased with the Bank Group's continued support of our strategy
and the proactive measures we've taken to improve our financial
results," said Wilson.
Wickes Lumber is one of the largest suppliers of building
materials in the United States. The Company sells its products and
services primarily to building professionals, as well as do-it-
yourselfers involved in major home improvement projects. The
Company operates building centers in 24 states in the Midwest,
Northeast and South and component manufacturing facilities that
produce pre-hung door units, window assemblies, roof and floor
trusses and framed wall panels. Visit Wickes on the World Wide Webb
at http://www.wickes.com." target=_new>http://www.wickes.com">http://www.wickes.com.
WICKES LUMBER COMPANY AND SUBSIDIARIES
UNAUDITED CONSOLIDATED SUMMARY STATEMENTS OF EARNINGS
(in thousands, except share and per share amounts)
13 Weeks 14 Weeks 52 Weeks 53 Weeks
Ended Ended Ended Ended
12/30/95 12/31/94 12/30/95 12/31/94
Net sales $223,629 $293,787 $972,612 $986,872
Cost of Sales 175,173 226,307 751,800 753,041
Gross Profit 48,456 67,480 220,812 233,831
Selling, general and
administrative
expense 46,726 56,665 201,111 197,043
Depreciation,
goodwill and
trademark
amortization 1,401 1,394 5,882 4,543
Restructuring and
unusual charges(A) 17,798 2,000 17,798 2,000
Other operating
income(B) (1,447) (3,141) (5,831) (6,772)
Total 64,478 56,918 218,960 196,814
Earnings (loss)
from
operations (16,022) 10,562 1,852 37,017
Interest expense 5,985 6,014 24,351 21,663
Equity in loss of
Riverside
International,
Inc. unit(C) 3,543 --- 3,543 ---
Earnings (loss)
before income
taxes (25,550) 4,548 (26,042) 15,354
Provision for
income taxes:
Current 1,485 174 1,353 1,660
Deferred(D) (11,796) (14,360) (11,796) (14,360)
Minority interest 159 --- --- ---
Net earnings
(loss) ($15,398) $18,734 ($15,599) $28,054
Per share data:
Fully taxed net
earnings (loss)
before unusual
items(E) ($0.41) $0.53 ($0.44) $1.60
Restructuring
and unusual
charges (1.74) (0.20) (1.75) (0.20)
Equity in loss of
Riverside
International,
Inc. unit (0.35) --- (0.35) ---
Gain on sale of
private label
credit card
portfolio --- 0.11 --- 0.11
Decrease in
deferred tax
asset valuation
allowance --- 2.35 --- 2.35
Income taxes(F) --- 0.27 --- 0.73
Net earnings (loss)
per common share ($2.50) $3.06 ($2.54) $4.59
Weighted average
common and common
equivalent shares
outstanding 6,157,964 6,118,977 6,151,771 6,106,279
(A) -- In 1995, this charge relates to the centers closed on
December 29, 1995, other restructuring planned for 1996 and unusual
items. In 1994, this charge related to the headquarters cost
reduction program announced in July of 1994.
(B) - In 1994, a $1.175 million gain on the sale of our private
label credit card portfolio is included in other income.
(C) - The accounting for our Riverside International unit was
changed to the equity method in the fourth quarter of 1995 to
reflect the recently announced transaction with NIS Regional Fund
and Russia Partners Company. For the year of 1994, this operation
reported a loss of $366 thousand.
(D) - In 1994, a deferred tax benefit resulted from management's
reassessment of the deferred tax asset valuation allowance
established as part of the October 1993 recapitalization.
(E) - The per share unusual items data, reported below fully
taxed net earnings (loss) before unusual items, is net of income
taxes at a 39.7% effective rate.
(F) - For comparison purposes, 1994 income taxes on income
before unusual items is adjusted to the 1995 39.7% effective tax
rate.
WICKES LUMBER COMPANY AND SUBSIDIARIES
UNAUDITED CONSOLIDATED SUMMARY
BALANCE SHEETS
(in thousands except share data)
Fiscal Year Ended
12/30/95 12/31/94
ASSETS
Current assets:
Cash $87 $2,037
Accounts receivable, less allowance
for doubtful accounts of $8,208 in 1995
and $4,657 in 1994 81,792 97,629
Inventory 110,639 124,084
Deferred tax asset - current 25,906 14,360
Prepaid expenses 1,051 1,584
Total current assets 219,475 239,694
Property, plant and equipment, net 56,545 56,847
Trademark (net of accumulated amortization
of $9,830 in 1995 and $9,608 in 1994) 7,170 7,392
Deferred tax asset - noncurrent 250 ---
Other assets (net of accumulated amortization
of $4,464 in 1995 and $2,071 in 1994) 19,075 15,640
Total 302,515 319,573
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $424 $709
Accounts payable 41,457 46,620
Accrued liabilities 37,972 28,854
Total current liabilities 79,853 76,183
Long-term debt, less current maturities 205,221 211,139
Other long-term liabilities 2,312 2,105
Commitments and contigencies
Common stockholders' equity:
Common stock (6,143,473 issued and
outstanding in 1995 and 6,100,549 shares
issued and outstanding in 1994) 61 61
Additional paid-in capital 76,773 76,190
Accumulated deficit (61,705) (46,105)
Total 15,129 30,146
Total common stockholders' equity $302,515 $319,573
PURCHASE, N.Y., March 13, 1996 - href="chap11.spectrum.html">Spectrum Information
Technologies, Inc. and Motorola, Inc. (NYSE: MOT) announced that,
subject to U.S. Bankruptcy Court approval, they have reached an
agreement to their mutual satisfaction which settles the patent
litigation that has been pending between the parties since December
1994. Spectrum's bankruptcy is pending in the United States
Bankruptcy Court for the Eastern District of New York.
4~
The settlement agreement provides that Spectrum and Motorola
will cross license each other for use of specified intellectual
property. Motorola will be licensed to utilize Spectrum's basic
technology in modems and modem chipsets. "This agreement will
assist Spectrum's development of its wireless communications
software business," said Donald J. Amoruso, Spectrum's Chief
Executive Officer. "We are pleased to have reached this cooperative
resolution."
CONTACT: Michael Freitag, media contact, of Kekst and Company,
212-593-2655, or Spectrum Information Technologies, Inc. Investor
Relations, 914-251-1800 ext. 182
WASHINGTON, March 13, 1996 - Marriott International, Inc.
(NYSE: MAR) and Forum Group, Inc.
today announced that the $13 per
share cash tender offer by a wholly owned Marriott subsidiary (FG
Acquisition Corp.) to purchase all of the outstanding shares of
Forum's common stock has been extended from 12:00 midnight, New York
City time on Thursday, March 21, 1996 until 12:01 a.m. New York City
time, Saturday, March 23, 1996.
Marriott also confirmed that the condition to the tender offer
requiring entry of an order by the U.S. Bankruptcy Court has been
satisfied. In addition, the company said that it has waived the
condition to the tender offer requiring that Forum acquire all of
the equity interest in Forum Retirement Communities II, L.P. In
consideration of this waiver, and of Marriott's agreement under
certain circumstances, not to assert after March 21, 1996 that
several other conditions to the tender offer have not been
satisfied, Forum has permitted Marriott to extend the tender offer
for one day.
Based on the latest count of shares tendered, approximately
2,953,713 shares of Forum common stock have been validly tendered
and not withdrawn pursuant to the tender offer. In addition, shares
representing approximately 83% of the outstanding shares of Forum's
common stock have been committed to be tendered, resulting in the
tendering of a total of approximately 93% of Forum's shares.
Marriott International, Inc., based in Washington, D.C., is a
diversified hospitality company involved in lodging and services
management.
CONTACT: Nick Hill of Marriott International, 301-380-7484