BRAINTREE, Mass., March 26, 1996 - href="chap11.bradlees.html">Bradlees, Inc. (NYSE:
BLE) today reported results for the fourth quarter and 53 weeks
ended February 3, 1996 (fiscal 1995). Total sales for the fourth
quarter were $592.4 million compared with $692.5 million for the
fourth quarter of fiscal 1994.
The EBIT loss (before interest, asset impairment charges,
reorganization items and income taxes) for the quarter was $13.6
million compared with EBIT of $37.1 million for the same period last
year. The net loss for the quarter was $108.9 million or $9.54 loss
per share, compared with net earnings of $16.6 million or $1.46 per
share in the fourth quarter of last year. Comparable stores sales
declined 17.0% for the fourth quarter.
Total sales for fiscal 1995 were $1.84 billion compared with
$1.98 billion for fiscal 1994 (the 52 weeks ended January 28, 1995).
The fiscal 1995 EBIT loss (before interest, asset impairment charge,
reorganization items, cumulative affect of accounting changes and
income taxes) was $122.3 million versus EBIT of $40.5 million for
fiscal 1994. The fiscal 1995 net loss was $207.4 million or $18.17
loss per share versus net earnings of $5.3 million or $0.47 per
share for last year. Fiscal 1995 comparable store sales declined
13.6%.
Reorganization items for this year represent primarily
provisions for rejected leases and related asset write-offs,
restructuring charges associated with the closing of 13
underperforming stores, accrued retention bonuses approved by the
Bankruptcy Court and professional fees. The rejected leases include
certain closing stores, two previously planned new stores and
several off-site storage facilities. Reorganization items resulted
in a fourth quarter charge of $44.0 million and a fiscal 1995 charge
of $65.0 million.
Bradlees also reported its adoption of Statement of Financial
Accounting Standards No. 121, "Accounting for the Impairment of
Long- Lived Assets and for Long-Lived Assets to be Disposed of"
(SFAS 121) in its fourth quarter. The Company's adoption of SFAS
121 resulted in a fourth quarter charge of $99.4 million from a non-
cash write-down relating to the impairment of certain long-term
assets.
The Company is in compliance with covenants contained in its
$250 million Debtor-In-Possession (DIP) financing agreement. In
addition, the Company has amended such covenants for fiscal 1996 and
the remaining term of the agreement.
Commenting on this announcement, Mark A. Cohen, Bradlees'
Chairman and Chief Executive Officer said, "1995 was a difficult and
extremely challenging period for Bradlees. However, we have moved
aggressively toward building our management team, reorienting our
merchandising and operations strategies and improving our financial
performance. We look forward to improved results in 1996."
Bradlees, Inc., which currently operates 136 discount department
stores in Maine, New Hampshire, Massachusetts, Connecticut, New
York, New Jersey, Pennsylvania and Rhode Island, emphasizes a unique
blend of fashionable, high quality apparel and home furnishings at
outstanding value to its customers. Bradlees' common stock is
listed and traded on the New York Stock Exchange under the symbol
"BLE".
BRADLEES, INC.
CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands except per share amounts)
14 Weeks 13 Weeks 53 Weeks 52 Weeks
ended ended ended ended
Feb. 3, Jan. 28, Feb. 3, Jan. 28,
1996 1995 1996 1995
Total sales $592,394 $692,459 $1,840,926 $1,978,261
Leased sales 16,791 17,228 60,158 61,705
Net sales 575,603 675,231 1,780,768 1,916,556
Cost of goods sold 423,589 478,809 1,289,077 1,325,396
Gross margin 152,014 196,422 491,691 591,160
Leased department and
other operating income 3,546 5,131 14,075 18,565
Total 155,560 201,553 505,766 609,725
Selling, store operating,
administrative and
distribution expenses 155,524 151,354 575,220 520,290
Depreciation and
amortization 13,641 13,116 52,853 48,956
Earnings (loss) before
interest, impairment
charge, reorganization
items, income taxes
and cumulative effect
of accounting change (13,605) 37,083 (122,307) 40,479
Interest and debt
expense, net 5,701 8,159 25,278 30,468
Impairment of
long-lived assets 99,358 --- 99,358 ---
Reorganization items 43,968 --- 65,003 ---
Earnings (loss) before
cumulative effect
of accounting change (162,632) 28,924 (311,946) 10,011
Income tax expense
(benefit) (53,766) 12,337 (104,533) 4,205
Earnings (loss) before
cumulative effect of
accounting change (108,866) 16,587 (207,413) 5,806
Cumulative effect of
accounting change,
net of income tax
benefit --- --- --- (485)
Net earnings (loss) ($108,866) $16,587 ($207,413) $5,321
Net earnings (loss)
per share:
Earnings (loss) before
cumulative effect of
accounting change ($9.54) $1.46 ($18.17) $0.51
Cumulative effect of
accounting change,
net of income
tax benefit --- ---- --- (0.04)
Net earnings (loss)
per share ($9.54) $1.46 ($18.17) $0.47
BRADLEES, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
ASSETS 2/3/96 1/28/95
Current assets:
Cash and cash equivalents 64,206 10,148
Accounts receivable 10,536 17,537
Refundable income taxes 24,576 ---
Inventories 282,270 306,218
Prepaid expenses 10,008 10,605
Deferred income taxes --- 1,421
Assets held for disposition 8,954 ---
Total current assets 400,550 345,929
Property excluding capital
leases, net 170,247 223,333
Property under capital
leases, net 37,249 59,808
Total property, plant
and equipment, net 207,496 283,141
Lease interests at fair value
and lease acquisition costs, net 186,626 247,485
Other, net 3,990 8,259
Total other assets 190,616 255,744
Total Assets $798,662 $884,814
BRADLEES, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Continued)
LIABILITIES AND STOCKHOLDERS' EQUITY 2/3/96 1/28/95
Current liabilities:
Accounts payable $148,870 $219,639
Accrued expenses 63,735 64,520
Short-term debt --- 21,000
Current portion of long-term debt 2,602 7,896
Total current liabilities 215,207 313,055
Long-term liabilities:
Other notes --- 5,150
Subordinated debt --- 225,000
Obligations under capital leases and other 53,396 59,493
Deferred income taxes 8,581 89,959
Other long-term liabilities 26,723 28,725
Total long-term liabilities 88,700 408,327
Liabilities subject to settlement under
the reorganization case 539,765 ---
Stockholders' equity:
Common stock -- 11,416,656 shares outstanding
(11,385,254 shares outstanding at 1/28/95)
Par value 115 113
Additional paid-in capital 137,951 138,077
Unearned compensation (793) (1,697)
Retained earnings (deficit) (181,766) 27,359
Treasury stock, at cost (517) (420)
Total stockholders' equity (deficit) (45,010) 163,432
Total Liabilities and Stockholders' equity $798,662 $884,814
TERRE HAUTE, Ind., March 26, 1996 - General Housewares
Corp. (NYSE: GHW) announced, at an analyst meeting in New York
today, that it will report a first quarter loss of approximately
$2,000,000 or $.50+ per share. To a significant degree, this will
be attributable to the disposition of the assets of its Sidney
Division.
The Company previously announced its intention to exit the cast
aluminum and cast iron cookware lines and is currently in
negotiations with parties interested in acquiring the Sidney
Division. The first quarter results will reflect certain
restructuring and operational charges related to the eventual
cessation of Company activities in Sidney, Ohio, as well as costs
attributable to closing certain unprofitable outlet stores.
In making the announcement, Paul A. Saxton, Chairman, President
and CEO stated: "The decision to exit the cast iron and aluminum
businesses came down to a resource allocation and return-on-
investment issue. Some of our businesses - particularly OXO and
Olfa - are growing rapidly, absorbing working capital and commanding
an investment in marketing and new product development. While the
brands Magnalite and Wagner may still offer substantial potential,
we are not willing to commit the substantial management resources
and capital necessary to exploit such potential. By concentrating
our resources on our growth businesses, rather than a less
profitable but investment-intensive operation, we believe the
Company's profitability will improve in the period ahead."
General Housewares is a leading manufacturer and marketer of
cookware, cutlery, kitchen tools, wood products and precision
cutting tools for the craft and hardware markets.
CONTACT: Robert L. Gray of General Housewares Corp, 812-232-1000
BILOXI, Miss., March 26, 1996 - Casino America, Inc.
(Nasdaq: CSNO) and Grand Palais
Riverboat, Inc., a wholly owned
subsidiary of Hemmeter Enterprises, Inc., announced today that the
Bankruptcy Court in the Eastern District of Louisiana today
confirmed the Plan of Reorganization submitted by Grand Palais.
The closing of the transaction is subject to a number of other
conditions, including approval by the Louisiana State Police
Riverboat Gaming Enforcement Division and other consents and
approvals. The parties are currently anticipating a closing of the
transaction to occur within 45 days.
Casino America, Inc. owns and operates four riverboat and
dockside casinos. The Company currently operates the Isle of Capri
Casino in Biloxi, Mississippi, the Isle of Capri Casino in
Vicksburg, Mississippi and the Isle of Capri Casino in Bossier City,
Louisiana. The Isle of Capri Casino in Bossier City, Louisiana is a
joint venture between Casino America, Inc. and Louisiana Downs.
This joint venture also has a separate joint venture with Crown
Casino Corporation to operate an Isle of Capri Casino near Lake
Charles, Louisiana.
CONTACT: Allan B. Solomon, Executive Vice President, 407-995-6660,
Rex Yeisley, Chief Financial Officer, 601-436-7054, both of Casino
America; or Douglas Draper, Counsel for Grand Palais,
504-581-9595