DETROIT, MI -- March 21, 1996 -- Caribbean Telephone &
Telegraph Inc. (CT&T) regrets to announce that TLC -- The Long-
distance Co. has voided the use of millions of TLC PhoneCards around
the country which have been sold to independent distributors over
the last several months.
This announcement follows attempts by TLC and MCI, its major
carrier, to reconcile with independent distributors who bought TLC
PhoneCards for resale and refused to pay for them. In fact, there
were agreements made with several distributors, but terms of these
agreements were never honored.
TLC PhoneCard pioneered the current expansion of the prepaid
calling card market with unique packaging and a marketing strategy
to reach the general public through small corner stores and
convenience markets. This approach created a commodity of the
prepaid calling card and bred many copy-cat competitors.
The final blow came when MCI terminated carrier services,
essentially shutting down TLC's ability to provide long-distance
services. Unfortunately, the result of this action will leave many
consumers with cards that no longer work. Store owners are being
directed to contact their local, independent distributor for refund
information.
The problems began late last year when TLC's main independent
distributors withheld payments and refused to comply with their
terms of sale, while they continued to resell and distribute the TLC
PhoneCard. This meant that TLC continued to incur a phone bill for
these unpaid cards. The ever increasing cost from MCI, and the
expense to operate became more than TLC could absorb. This resulted
in MCI cutting its losses by terminating carrier services on TLC's
PhoneCard network.
Jim Franklin, president of TLC made this statement: "I deeply
regret the actions we have been forced to take today. However,
TLC's position is that the local, independent distributors are
ultimately responsible to the stores and the customers they service
and the solution at the store level lies in the distributors' hands.
CT&T is working with the independent distributors and customers by
providing information on the remaining balances found on cards
returned to stores."
Franklin also stated: "We felt it was time someone took a stand
against the uncontrollable fraud developing in this industry. It is
important to note that CT&T has no desire to go out of business or
file bankruptcy as many may believe. We are simply cutting our
losses and moving forward."
CT&T has established a distributor information line at 313/202-
2027 for consumers seeking further information. Callers will be
referred to their local, independent distributor in their area for
information regarding the unused balance on their TLC PhoneCards.
CONTACT: Kim Cascio, 313/202-2000
SEATTLE, WA -- March 21, 1996 -- href="chap11.seattle.html">Seattle Lighting
Fixture Co. announced today that it has filed a petition for
reorganization under Chapter 11 of the U.S. Bankruptcy Code.
The company is the Northwest's largest distributor of lighting
fixtures and related products.
Jim Scarborough, president and chief executive officer,
attributed the filing to cash shortages stemming from a reduction in
sales due to continued declines in housing starts in the
Metropolitan King County area where the majority of the company's
operations are centered.
According to statistics published by the Master Builders
Association of King and Snohomish Counties, the number of new single-
family home permits in King County declined 29% in 1995 vs. 1994.
Seattle Lighting was founded in 1917. Its 200 employees serve
retail, builder-contractors, and commercial customers from six
locations in the greater Puget Sound area. Additionally the company
operates under the name Builders Lighting with stores in Vancouver,
Wash., Gresham, Lake Oswego and Salem, Ore., and Boise, Idaho.
Seattle Lighting will continue its operations under current
management as debtor in possession and plans to emerge from Chapter
11 as quickly as possible as a stronger and more vibrant company.
CONTACT: Seattle Lighting Fixture Co.
Jim Scarborough, 206/689-9444
WELLESLEY, Mass., March 21, 1996 - Filene's Basement
Corp. (Nasdaq: BSMT) today reported results for the fourth quarter
and fiscal year ended February 3, 1996, which results reflect
charges associated with a strategic repositioning of the Company,
expenses related to certain store closings, the write down of
deferred tax assets for amounts not expected to be realized and
other one-time charges, all of which were previously announced, but
not quantified. Losses for the fourth quarter and fiscal year,
before the effect of the restructuring charge and certain other
corporate one-time charges, were $1.1 million, or 5 cents per share,
and $2.1 million, or 10 cents per share, respectively.
Net loss for the fourteen week fourth quarter this year, after
the restructuring charge, was $31.1 million, or $1.52 per share,
compared to a net loss after the restructuring charge for the 13
week fourth quarter last year of $3.2 million, or 16 cents per
share. Net loss for the 53 week fiscal year ended February 3, 1996,
after the restructuring charge, was $31.8 million, or $1.56 per
share, compared to a net loss after the restructuring charge of $1.2
million, or 6 cents per share for the 52 week fiscal year ended
January 28, 1995.
The fourth quarter charges of $30.1 million reflect store
closing costs related to on-going and one-time lease costs, asset
write-offs of improvements to leased premises and inventory write-
offs, as well as cost markdowns related to the exiting of certain
lines of apparel and certain other corporate one-time charges. Of
the total charges of $30.1 million, $20.7 million are noncash
related and the cash portion, which is primarily comprised of
ongoing lease obligations, is expected to be paid out over the next
several years.
As a result of these actions, the locations remaining open will
represent a core of stores that historically have contributed to the
Company's profits. It is anticipated that all of the closings will
be accomplished during 1996, thereby allowing the Company to improve
its return on assets, enhance expense control and productivity and
provide a stronger store foundation for the implementation of the
Company's new marketing and merchandising initiatives. None of
these charges impact the Company's compliance with its loan
covenants, as they are specifically excluded from such calculations.
Fourth quarter net sales for the fourteen week period this year
were $170.3 million, down 5% from last year's thirteen week sales of
$178.5 million. Comparable store net sales for the fourteen week
period were down 4% versus the comparable fourteen week period last
year. Net sales for the 53 week fiscal year were $582.5 million,
down 4% from last year's net sales of $608.3 million for the 52 week
fiscal year. Comparable store net sales for the 53 week period this
year were down 6% versus the comparable 53 week period last year.
Filene's Basement Corp. operates specialty stores, which offer
focused, quality, branded assortments of men's and women's apparel
at prices generally 20-60% below department and other specialty
store regular prices. The Company has 43 stores operating primarily
in the Northeast and Midwest.
FILENE'S BASEMENT CORP.
FOURTH QUARTER REPORT
FEBRUARY 3, 1996
The following are Filene's Basement's results for the fourth
quarter of fiscal year 1995, as compared to the fourth quarter of
fiscal year 1994:
Fiscal quarter ended(A)
February 3, 1996 January 28, 1995
Net sales $170,322 $178,525
Cost of sales, including
buying, receiving and
occupancy costs: 149,008 140,992
Gross profit 21,314 37,533
Selling, general and
administrative expenses 39,400 36,484
Amortization of intangible assets 9 9
Amortization of beneficial
operating lease rights 329 329
Charge for store closings 11,377 4,892
Operating loss (29,801) (4,181)
Interest expense, net 1,371 667
Loss before income taxes (31,172) (4,848)
Income tax benefit (54) (1,691)
Loss before extraordinary item (31,118) (3,157)
Extraordinary item: loss on debt
repurchase, net of tax benefit --- (23)
Net loss ($31,118) ($3,180)
Primary and fully diluted earnings per share:
Loss before extraordinary item ($1.52) ($0.16)
Extraordinary item: loss on debt
repurchase, net of tax benefit --- $0.00
Net loss per common share ($1.52) ($0.16)
Weighted average shares
outstanding 20,481 20,373
(A) In thousands except per share data
(A) Fourteen weeks this year versus thirteen weeks last year
FOURTH QUARTER REPORT
FEBRUARY 3, 1996
The following are Filene's Basement's results for the 53 weeks
ended February 3, 1996, as compared to the same 52 week period in
fiscal year 1994:
Fiscal year ended(A)
February 3, 1996 January 28, 1995
Net Sales $582,509 $608,303
Cost of Sales, including
buying, receiving and
occupancy costs: 464,411 466,444
Gross profit 118,098 141,859
Selling, general and
administrative expenses 132,666 129,859
Amortization of intangible assets 38 38
Amortization of beneficial
operating lease rights 1,314 1,314
Charge for store closings 11,377 4,892
Operating income (loss) (27,297) 5,756
Interest expense, net 4,927 3,679
Income (loss) before income taxes
and extraordinary item (32,224) 2,077
Income tax provision (benefit) (433) 983
Income (loss) before
extraordinary item (31,791) 1,094
Extraordinary item: loss on debt
repurchase, net of tax benefit --- (2,335)
Net loss ($31,791) ($1,241)
Primary and fully diluted earnings per share:
Income (loss) before
extraordinary item ($1.56) $0.05
Extraordinary item: loss on debt
repurchase, net of tax benefit --- ($0.11)
Net loss per common share ($1.56) ($0.06)
Weighted average shares
outstanding 20,403 21,077
(A) In thousands except per share data
(A) Fifty-three weeks this year versus fifty-two weeks last year
FOURTH QUARTER REPORT
FEBRUARY 3, 1996
(dollars in thousands)
Feb. 3, Jan. 28,
ASSETS 1996 1995
Current assets:
Cash and cash equivalents $464 $4,642
Inventories 85,777 117,504
Other current assets 26,534 10,752
Deferred income taxes --- 9,261
Total current assets 112,775 142,159
Property, plant and equipment, net 67,278 71,587
Beneficial operating lease
rights, net 16,125 17,439
Deferred income taxes 3,128 2,500
Intangible assets, net & other 10,746 5,235
Total assets $210,052 $238,920
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Accounts Payable 36,646 48,808
Accrued Expenses 33,402 34,675
Short term debt 13,200 ---
Obligations under capital leases,
due within one year 490 449
Total current liabilities 83,738 83,932
Reserve for store closings 4,663 1,366
Deferred revenue 2,166 2,333
Long-term debt 35,000 35,000
Obligations under capital leases,
less current portion 3,627 4,118
Common stock 206 204
Cost of 75,000 common shares in treasury (16) (16)
Unamortized restricted stock compensation (12) (37)
Additional paid-in capital 86,048 85,596
Retained earnings (5,368) 26,424
Total stockholders' equity 80,858 112,171
Total liabilities and
stockholders' equity $210,052 $238,920
SOUTH JORDAN, Utah, March 21, 1996 - John Gunter,
president and chief executive officer of TELS Corporation (Nasdaq:
TELS), announced today restructuring at the subsidiary level,
including the closure of Computer Express (Richardson, Texas) and
D.J. GunTel (Carrollton, Texas).
"TELS had originally expected these subsidiary channels to
function as enhancements to its distribution channel. However,
after carefully considering the overall performance of our
subsidiaries, we have determined that long-term profitability and
shareholder value will be best served by renewing our emphasis on
core strengths while eliminating the drag to our bottom line," said
Gunter.
He indicated that, for example, while revenues attributable to
Computer Express had increased significantly during the two
successive years following the acquisition by TELS Corporation,
Computer Express had a $0.04 per share negative impact on
consolidated earnings in 1994. A residual impact is expected for
1995, with some carryover anticipated into the first quarter of
1996. "With an even greater tightening of margins anticipated in
the reseller business, we saw little likelihood of improved results
in the near term. Having booked two successive quarters of net
losses, and in anticipation of a probable net loss between $0.04 and
$0.09 per share for 1995, we have determined to cut our losses
sooner rather than later and suspend our presence in the PC reseller
industry," Gunter said.
Gunter also indicated that TELS subsidiary Hash-Tech, Inc.
(Santa Clara, Calif.), a producer and assembler of computer and
electronics components, expects to open a sales-support office in
Austin, Texas, to better serve its broadening customer base and
enable it to capitalize on opportunities in the region's expanding
high-tech business environment. In the two years since being
acquired by TELS, Hash-Tech, Inc. has nearly doubled its revenues,
in addition to reducing administrative expenses, improving operating
margins and obtaining ISO-9002 certification.
"Notwithstanding underperformance in other areas, we are
optimistic about opportunities for our remaining subsidiaries and
recognize Hash- Tech's ISO-9002 certification as a critical arrow in
the quiver aimed toward domestic and international growth," said
Gunter. "By refocusing our efforts on what we do well, we
anticipate more attractive margins and considerable improvement in
the bottom line in 1996."
TELS Corporation through its subsidiaries designs, builds,
assembles, sells and services telecommunications/call accounting and
personal computer components.
CONTACT: Stephen M. Nelson, Chief Financial Officer or Monica
Riding, Investor Relations, TELS Corporation, 801-571-1182;
Madeleine Franco or Andrew Graft of Jordan Richard Assoc.,
801-595-8611
TELS press releases are available through Company News On-Call by
fax, 800-758-5804, extension 473775, or href="http://www.prnewswire.com/" target=_new>http://www.prnewswire.com/">http://www.prnewswire.com/
EVANSVILLE, Ind., March 21, 1996 - Shoe Carnival, Inc.
(Nasdaq: SCVL) a leading retailer of value-priced name brand and
private label footwear, today reported that, due primarily to its
inventory reduction efforts combined with a weak retail environment
and the previously announced restructuring charges, it recorded
losses of $.55 per share and $.67 per share respectively for the
fifty-three week fiscal year and fourteen week fourth quarter ended
February 3, 1996. With lower per-store inventories, a renewed
emphasis on branded women's shoes and elimination of underperforming
stores, management anticipates improved results in 1996.
The Company has changed its fiscal year to a 52/53 week year
ending on the Saturday closest to January 31 effective for the
fiscal year ended February 3, 1996. For comparability, the fourth
quarter of 1994 and fiscal year 1994 have been restated to reflect
results for the thirteen week period and fifty-two week period ended
January 28, 1995.
Net sales for the fourteen week fourth quarter fell 2.9% to
$57.6 million from sales of $59.3 million in the thirteen week
fourth quarter last year. Comparable store sales on a thirteen week
basis decreased 15.3%. The Company previously announced the
establishment of a reserve for expected costs to be incurred in
closing eight unprofitable stores in 1996. This resulted in a pre-
tax charge of $3.3 million in the fourth quarter. Additionally, the
Company increased a reserve against the cost value of inventory for
anticipated losses to be incurred in the liquidation of clearance
product in both the stores that will close and those that will
remain open. This resulted in a pre- tax charge to cost of sales of
$2.9 million in the fourth quarter. Including these charges, the
Company reported a net loss of $8.7 million, or $.67 per share for
the fourth quarter of fiscal 1995 as compared to a net loss of $1.7
million or $.13 per share for the fourth quarter of fiscal 1994.
The loss in the fourth quarter of fiscal 1994 includes pre-tax
charges of $2.3 million against cost of sales for inventory write
downs and $267,000 for store closing costs. The Company closed one
store in January 1995.
Net sales for the fifty-three week fiscal year ended February 3,
1996 increased 5.1% to $228.3 million from sales of $217.1 million
for the restated fifty-two week year ended January 28, 1995.
Comparable store sales on a fifty-two week basis decreased 10.0%.
Including pretax charges of $1.3 million for the write down of
inventory and $3.3 million for store closings, the net loss for
fiscal 1995 was $7.2 million or $.55 per share compared to net
income of $705,000, or $.05 per share for fiscal 1994. Pre-tax
charges recorded in 1994 for the write down of inventory and store
closings were $2.4 million and $267,000 respectively.
Wayne Weaver, Chairman, stated, "We began last year with
specific goals for reducing and reshaping our inventories. Our
operating results in 1995 were definitely impacted by these
initiatives, especially in such a weak footwear and apparel retail
climate. We have evaluated every aspect of our business, most
significantly, our merchandising and marketing strategies. From
that we concluded the need for further restructuring of our store
base, inventories and administrative expenses, the charges for which
were taken in our fourth quarter. Although our inventory reduction
program is nearly complete, we will continue to stress conservative
inventory management practices, especially until we see a
strengthening in the retail climate. We also accomplished a major
objective in completing the transition of our women's inventory to a
predominantly branded mix. The eight stores we plan to close in
1996 were significantly underperforming units. By focusing our
resources on our remaining store base, with lower per-store
inventories and a better match of operating expenses to revenues, we
would anticipate improvements in future profits and cash flow.
"We have been able to orchestrate these changes without serious
impact on our overall financial condition. In fact, despite the
loss for the year, we were able to generate $7.4 million in cash
from operating activities mainly from inventory reductions. We paid
down $3.5 million in long-term debt, which represented only 24
percent of total capital at the end of the year. Working capital
exceeds $50 million and translates into a current ratio of 3.4:1,
and as of the end of the year we had $13 million available under our
revolving credit facility. In short, our financial condition
remains very strong and we view this as a competitive advantage in
today's retail climate.
"We are optimistic about 1996, but we are planning the year
conservatively. We will open four or five new stores this year,
including stores in Orlando, FL and Fayetteville, AR, which opened
on February 29, 1996 and March 14, 1996, respectively. We opened
both of these stores with our new store design which we successfully
tested in Macon, GA in the latter part of 1995. Planned capital
expenditures of $7.0 million to $8.0 million are targeted primarily
for new stores, the remodeling of eight existing stores with our new
store design and technological enhancements to our information
systems."
Shoe Carnival is a chain of 96 footwear stores located in the
Midwest and Midsouth. Combining "value pricing" (guaranteed lowest
prices) with carnival-like entertainment, Shoe Carnival is a leading
retailer of name brand and private label footwear for the entire
family. Headquartered in Evansville, IN, Shoe Carnival trades on the
Nasdaq Stock Market under the symbol SCVL.
SHOE CARNIVAL, INC.
CONDENSED STATEMENTS OF INCOME
(In thousands, except per share)
(Unaudited)
14 Weeks 13 Weeks 53 Weeks 52 Weeks
Ended Ended Ended Ended
February 3, January 28, February 3, January 28,
1996 1995(A) 1996 1995(A)
Net sales $57,551 $59,292 $228,263 $217,137
Cost of sales
(including buying,
distribution and
occupancy costs) 50,631 46,372 176,019 161,100
Gross profit 6,920 12,920 52,244 56,037
Selling, general and
administrative
expenses 17,495 14,934 58,946 53,703
Restructuring charge(B) 3,282 267 3,282 267
Operating income
(loss) (13,857) (2,281) (9,984) 2,067
Interest expense, net 426 451 1,626 818
Income (loss) before
income taxes (14,283) (2,732) (11,610) 1,249
Income tax expense
(credit) (5,551) (1,049) (4,420) 544
Net income (loss) $(8,732) $(1,683) $ (7,190) $ 705
Net income (loss)
per share $ (.67) $ (.13) $ (.55) $ .05
Weighted average common
shares and common
equivalent shares
outstanding 13,019 13,019 13,031 13,047
(A) -- The Company changed its fiscal year to a 52/53 week year
ending on the Saturday closest to January 31, effective for the
fiscal year ended February 3, 1996. The fourth quarter of 1994 and
the fiscal year 1994 have been restated to reflect results for the
thirteen week period and fifty-two week period ended January 28,
1995.
(B) - Restructuring charges incurred in 1995 and 1994 relate to
the expected closing of a total of nine stores. One store was
closed in January 1995 and eight stores are expected to close in
fiscal 1996.
SHOE CARNIVAL, INC.
CONDENSED BALANCE SHEETS
(In thousands)
(Unaudited)
February 3, January 28,
1996 1995
ASSETS
Current Assets:
Cash and cash equivalents $ 900 $ 1,759
Accounts and notes receivable 1,026 635
Merchandise inventories 62,699 70,369
Deferred income tax benefit 1,820 710
Other 4,660 3,457
Total Current Assets 71,105 76,930
Property and equipment-net 31,160 30,831
Total Assets $102,265 $107,761
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 12,783 $ 10,131
Accrued and other liabilities 7,504 4,510
Current portion of long-term debt 612 573
Total Current Liabilities 20,899 15,214
Long-term debt 18,922 22,450
Deferred lease incentives 1,948 1,703
Deferred income taxes 925 1,633
Total Liabilities 42,694 41,000
Shareholders' Equity 59,571 66,761
Total Liabilities and Shareholders' Equity $102,265 $107,761