BLUE BELL, Pa. -- April 24, 1996 -- Unisys Corp.
Wednesday reported a first-quarter net loss of $13.4 million
compared to net income from continuing operations of $32.1 million
in the year-ago quarter.
On a per-share basis, the first-quarter net loss was 25 cents
per common share compared to earnings of 2 cents per share a year
ago. Including the company's discontinued defense business, which
was sold in May 1995, total net income a year ago was $44.6 million,
or 9 cents per share. Revenue for the first quarter was $1.42
billion compared to $1.46 billion in the year-ago quarter.
James A. Unruh, Unisys chairman and chief executive officer,
said, "In the first quarter we launched a new business structure
under which Unisys operates as one company with three highly focused
businesses. This realignment has involved a sweeping reengineering
of our business operations. It is aimed at dramatically improving
our competitiveness and reducing our cost base.
"As we expected, these actions had a disruptive effect on our
results in the quarter. Our first-quarter revenue and margins also
reflect fewer shipments of our large-scale systems as we shift to a
new product cycle in our enterprise server family. In short, we are
in the midst of a key transition in our business and our product
portfolio as we continue the transformation of Unisys into an
information management company."
Unruh said the company's fourth-quarter 1995 restructuring plans
are on schedule. As part of these actions, Unisys announced plans
to reduce manufacturing space worldwide from approximately one
million square feet to 250,000 square feet over the next 18 months.
The reduced requirement for manufacturing space results from the
impact of technology changes and the company's increased use of
common platforms and commodity components in its computer systems.
Unisys said it successfully completed two debt offerings during
the quarter for a total of $724 million. "The success of these
offerings was a strong endorsement from the financial markets of our
strategy and our prospects going forward," Unruh said.
Despite business disruptions caused by the transition in the
company's business structure and product portfolio, customer revenue
from Information Services increased 14% in the quarter.
In Global Customer Services, customer revenue increased 9% from
year-ago levels led by strong growth in Network Enable and Desktop
Services. Customer revenue in Computer Systems declined 19% as the
company moves into the early stages of a new product cycle in its
high-end enterprise server family. Unisys said the decline in its
gross profit in the quarter was due to the Computer Systems
business.
Total orders declined slightly in the quarter due primarily to
the product cycle transition and organizational realignment.
Increased orders in the Pacific/Asia and Americas markets were
offset by order declines in the U.S. and European markets.
"Our Information Services and Global Customer Services
businesses continue to deliver solid growth, and we see no letup in
the opportunities for these two groups," Unruh said. "In addition,
last week our Computer Systems business announced our new ClearPath
family of servers, which was very well received in the marketplace.
While we plan some shipments in the second quarter, the rampup in
shipments is expected to take place during the second half.
"Although we may continue to see some disruption in our second-
quarter results as the short-term effects of restructuring actions
ripple through our business, we are positioning ourselves for an
improved second half of the year and beyond. Overall, we continue
to look for tangible financial progress in 1996."
UNISYS CORP.
CONSOLIDATED BALANCE SHEET
(Millions)
March 31, Dec. 31,
1996 1995
----------- ----------
Assets
Current assets
Cash and cash equivalents $1,403.1 $1,114.3
Marketable securities 5.8 5.4
Accounts and notes receivable, net 898.5 996.3
Inventories
Finished equipment and supplies 365.7 358.6
Work in process and raw materials 344.6 315.3
Deferred income taxes 329.8 329.8
Other current assets 85.0 98.9
-------- --------
Total 3,432.5 3,218.6
-------- --------
Long-term receivables, net 60.1 58.7
-------- --------
Properties and rental equipment 2,076.4 2,088.4
Less accumulated depreciation 1,401.0 1,397.0
-------- --------
Properties and rental equipment, net 675.4 691.4
-------- --------
Cost in excess of net assets acquired 1,006.5 1,014.6
Investments at equity 287.2 298.9
Deferred income taxes 682.6 682.6
Other assets 1,192.3 1,148.4
-------- --------
Total $7,336.6 $7,113.2
Liabilities and stockholders' equity
Current liabilities
Notes payable $ 14.3 $ 12.1
Current maturities of long-term debt 344.0 343.5
Accounts payable 813.2 940.6
Other accrued liabilities 1,415.9 1,677.4
Dividends payable 26.6 30.2
Estimated income taxes 95.5 143.5
-------- --------
Total 2,709.5 3,147.3
-------- --------
Long-term debt 2,251.8 1,533.3
Other liabilities 566.3 572.4
Stockholders' equity
Preferred stock 1,570.3 1,570.3
Common stock 1.7 1.7
Accumulated deficit (742.6)
(702.6)
Other capital 979.6 990.8
-------- --------
Stockholders' equity 1,809.0 1,860.2
-------- --------
Total $7,336.6 $7,113.2
UNISYS CORP.
CONSOLIDATED STATEMENT OF CASH FLOWS
(Millions)
Three Months Ended
March 31
---------------------
1996 1995
-------- --------
Cash flows from operating activities
Income (loss) from continuing operations $ (13.4) $ 32.1
Add (deduct) items to reconcile income (loss)
from continuing operations to net cash
(used for) operating activities:
Depreciation 44.6 58.6
Amortization:
Marketable software 28.7 34.4
Cost in excess of net assets acquired 10.4 10.2
Decrease in deferred income taxes -- .1
Decrease in receivables, net 94.9 40.2
(Increase) in inventories (36.4)
(27.7)
(Decrease) in accounts payable and other
accrued liabilities (378.3) (290.1)
(Decrease) in estimated income taxes (48.1)
(37.7)
Increase in other liabilities .6 1.8
(Increase) in other assets (27.7)
(10.0)
Other (1.5) 7.0
-------- --------
Net cash used for operating activities (326.2)
(181.1)
-------- --------
Cash flows from investing activities
Proceeds from investments 713.4 1,002.8
Purchases of investments (718.2)
(1,007.9)
Proceeds from marketable securities -- 2.0
Proceeds from sales of properties 14.9 7.4
Investment in marketable software (14.9)
(27.8)
Capital additions of properties and
rental equipment (34.6) (52.7)
Purchases of businesses (7.1) (
8.1)
-------- --------
Net cash used for investing activities (46.5)
(84.3)
-------- --------
Cash flows from financing activities
Proceeds from issuance of debt 700.9 --
Principal payments of debt (.3)
(17.2)
Net proceeds from short-term borrowings 2.2 17.1
Dividends paid on preferred shares (30.2)
(30.0)
Other .2 .2
-------- --------
Net cash provided by (used for) financing
activities 672.8
(29.9)
-------- --------
Effect of exchange rate changes on
cash and cash equivalents (7.1) 4.5
-------- --------
Net cash provided by (used for) continuing
operations 293.0
(290.8)
Net cash used for discontinued operations (4.2) (
13.4)
-------- --------
Increase (decrease) in cash and cash
equivalents 288.8
(304.2)
Cash and cash equivalents, beginning
of period 1,114.3 868.4
-------- --------
Cash and cash equivalents, end of period $1,403.1 $ 564.2
UNISYS CORP.
CONSOLIDATED STATEMENT OF INCOME
(Millions, except per share data)
Three Months
Ended March 31
-------------------
1996 1995
-------- --------
Revenue $1,423.1 $1,464.9
-------- --------
Costs and expenses
Cost of revenue 984.2 923.5
Selling, general and
administrative 322.0 332.7
Research and development 96.0 95.5
-------- --------
1,402.2 1,351.7
-------- --------
Operating income 20.9 113.2
Interest expense 50.5 50.5
Other income (expense), net 9.3 (14.3)
-------- --------
Income (loss) from continuing
operations before income taxes (20.3) 48.4
Estimated income taxes (benefit) ( 6.9) 16.3
-------- --------
Income (loss) from continuing
operations (13.4) 32.1
Income from discontinued
operations -- 12.5
-------- --------
Net income (loss) (13.4) 44.6
Dividends on preferred
shares 30.2 29.9
-------- --------
Earnings (loss) on common shares $(43.6) $14.7
Earnings (loss) per common share
Primary
Continuing Operations $( .25) $ .02
Discontinued Operations -- .07
-------- --------
Total $( .25) $ .09
Fully diluted
Continuing Operations $( .25) $ .02
Discontinued Operations -- .07
-------- --------
Total $( .25) $ .09
Shares used in the per share
computations (thousands):
Primary 171,437 171,821
Fully diluted 171,437 171,821
Note: Certain prior year amounts have been reclassified
to conform with the 1996 presentation.
UNISYS CORP.
SUPPLEMENTAL SUMMARY
(Millions)
Information Global
Computer
Elimi- Services Customer Systems
Total nations Group Services Group
----- ------- ----------- -------- --------
Three Months Ended
March 31, 1996
------------------
Customer
revenue $1,423.1 -- $404.3 $464.1 $554.7
Intercompany -- $(109.3) 4.0 17.8 87.5
-------- ------- ------ ------ ------
Total revenue $1,423.1 $(109.3) $408.3 $481.9 $642.2
Three Months Ended
March 31, 1995
------------------
Customer
revenue $1,464.9 -- $354.6 $427.4 $682.9
Intercompany -- $(118.7) -- 27.0 91.7
-------- -------- ------ ------ ------
Total revenue $1,464.9 $(118.7) $354.6 $454.4 $774.6
CONTACT: Unisys Corp., Blue Bell
J. Peter Hynes, 215/986-6948
Internet: hynespet@po7.bb.unisys.com
GARDEN CITY PARK, N.Y. -- April 24, 1996 -- Coffee
Distributing Corp. (CDC), the New York metropolitan area's largest
office refreshment supply company, has found itself in a bit of hot
water.
The problem? It accepted payment for coffee deliveries made to
a company that later filed bankruptcy.
"This whole affair proves what we've suspected all along," said
Robert Friedman, president of Coffee Distributing Corp. "Coffee is
the fuel that keeps American business going. You can run a company
without paper, without pens ... even without computers. But don't
even think about trying to run it without coffee!"
According to a recently-filed complaint, Towers Financial Corp.
(once owned by notorious New York "entrepreneur" Steven Hoffenberg)
violated New York State bankruptcy laws by paying Coffee
Distributing Corp. ahead of its other creditors in order to ensure a
continued supply of coffee.
"I don't believe we did anything wrong," said Friedman. "We
simply received payment for product delivered. Towers still had
employees hard at work, trying to rehabilitate the business. If we
had pulled the plug on the coffee any sooner, I'm willing to bet
that the employees would have walked, too."
Founded in 1963, Coffee Distributing Corp. is the largest office
refreshment supply company in the greater New York metropolitan
area, providing a full range of regular and gourmet coffees and
other beverages, snacks and miscellaneous supplies to more than
13,000 businesses. The company recently inked an agreement to be
the region's exclusive office supplier of world-famous Timothy's
Gourmet Coffee. Coffee Distributing Corp. is based in Garden City
Park, Long Island.
CONTACT: Epoch 5 Marketing Inc., Huntington, N.Y.
Doug Vandewinckel, 516/427-1713
POMPANO BEACH, Fla. -- April 24, 1996 -- Advanced
Promotion Technologies Inc. (NASDAQ:APTVC), developer and marketer
for the Vision Value Network(tm), an electronic marketing and
financial services network for supermarkets, Wednesday announced
financial results for the first quarter ended Feb. 24, 1996.
Revenues for the three months ended Feb. 24, 1996 were $908,000,
as compared to $875,000 in the three months ended Feb. 25, 1995.
Promotion revenues increased in 1996 by approximately $196,000, due
to greater participation in The Vision Value Club by consumers,
offset by a decrease in revenue from manufacturers of $163,000.
Net loss for the quarter was $3,046,000, or $0.17 per share, as
compared to $7,795,000, or $0.60 per share, in the three months
ended Feb. 25, 1995. The 61% reduction in net losses is attributed
to approximately $2.7 million extinguishment of the Consumer
Redemption Liability, as a result of the de-installation of 79
stores, due to the termination of the Kroger and other retailer
contracts, and the assumption of that liability by certain of those
retailers. Also, direct operating and selling, general and
administrative expenses were reduced as a result of the company's
effort to restructure the company and operate on a smaller scale.
The company also recently announced the appointment of three new
board members, George Harrison, the company's president and chief
operating officer, Scott N. Christensen and David Ingwersen.
Christensen is president of SelectSoft Inc., and has held sales and
management positions in the direct marketing and database marketing
industry. Ingwersen is president of Open Payment Technologies Inc.
and has held technical and management positions with First Data
Corp. Inc.
Advanced Promotion Technologies markets the Vision Value
Network(tm), an electronic marketing and financial services network
for supermarkets. Installed in each checkout lane, Vision Value
terminals combine print, video and voice media to communicate
targeted product promotions, advertising and financial services to
consumers.
ADVANCED PROMOTION TECHNOLOGIES INC.
BALANCE SHEETS
UNAUDITED
(In thousands, except share data)
Nov. 25, Feb. 24,
1995 1996
ASSETS
CASH $ 5,600 $ 1,397
OTHER ASSETS 1,988 1,467
PROPERTY AND EQUIPMENT 24,625 23,070
$32,213 $25,934
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
CURRENT LIABILITIES $17,471 $14,620
6% SUBORDINATED DEBENTURES, LONG
TERM DEBT AND CAPITAL LEASE
OBLIGATIONS 14,846 14,464
STOCKHOLDERS' DEFICIENCY (104) (3,150)
$32,213 $25,934
STATEMENT OF OPERATIONS
UNAUDITED
(In thousands, except share data)
Three Months Ended
Feb. 25, Feb. 24,
1995 1996
REVENUES $ 875 $ 908
TOTAL COSTS AND EXPENSES 8,111 6,003
LOSS FROM OPERATIONS (7,236) (5,095)
INTEREST EXPENSE (NET) 497 258
EXTINGUISHMENT OF CONSUMER
REDEMPTION LIABILITY -- (2,701)
NET LOSS ($7,733) ($2,652)
PREFERRED STOCK DIVIDEND
REQUIREMENTS (62) (394)
NET LOSS PER COMMON SHARE ($0.60) ($0.17)
WEIGHTED AVERAGE SHARES 12,909,701 18,441,095
DENVER, April 24, 1996 - Gerrity Oil & Gas Corporation
(NYSE: GOG) reported a net loss of $.9 million, or $.15 per share
after preferred dividends, on revenue of $12.5 million for the first
quarter of 1996, compared to a net loss of $1.6 million, or $.20 per
share, on revenue of $14.8 million for the first quarter of 1995.
Net cash provided by operating activities before changes in
operaring assets and liabilities was $5.2 million for the 1996
quarter compared to $6.7 million for the first quarter of 1995.
Average natural gas production was 41.2 million cubic feet
(MMcf) per day in the first quarter of 1996, a 7% decrease from the
44.2 MMcf per day in the fourth quarter of 1995. Average crude oil
production was 3,520 barrels of oil per day (bopd), a 4% decrease
from the 3,665 bopd in the fourth quarter of 1995. Average natural
gas prices were $1.66 per Mcf in the first quarter of 1996, a 4%
increase from $1.60 per Mcf in the fourth quarter of 1995. Average
crude oil prices were $18.56 per barrel, a 16% increase from $16.01
per barrel in the fourth quarter of 1995.
As previously announced, the Company entered into an agreement
whereby the Company will be merged into a wholly-owned subsidiary of
Patina Oil & Gas Corporation, which is a wholly-owned subsidiary of
Snyder Oil Corporation. The consummation of the merger is subject
to certain conditions including approval by Gerrity's common
shareholders at a special meeting to be held on Thursday, May 2,
1996. There can be no assurance that the merger will be
consummated.
Gerrity Oil & Gas Corporation, based in Denver, Colorado, is an
energy firm historically characterized by low cost operations in the
Denver-Julesburg Basin.
GERRITY OIL & GAS CORPORATION
FINANCIAL SUMMARY
(000s)
1995 1995 1995 1995 1996
1Q 2Q 3Q 4Q 1Q
Revenue:
Oil and gas sales $14,296 $13,949 $11,355 $11,913 $12,154
Interest and other
income 497 641 667 542 313
Total revenue 14,793 14,590 12,022 12,455 12,467
Costs and expenses:
Lease operating
expenses 1,234 1,264 1,058 1,178 1,169
Production taxes 1,015 991 784 842 861
Depletion, depreciation
and amortization 8,062 8,069 7,118 7,084 6,677
General and
administrative, net 1,830 1,861 1,783 2,257 1,678
Interest 3,514 3,715 3,743 3,533 3,408
Restructuring expenses 828 --- --- --- ---
Abandonments, exploration
and other 29 4 135 117 59
Total costs and
expenses 16,512 15,904 14,621 15,011 13,852
Loss before income
taxes (1,719) (1,314) (2,599) (2,556) (1,385)
Benefit for income
taxes 86 66 63 --- 470
Net loss (1,633) (1,248) (2,536) (2,556) (915)
Accrued preferred
dividend 1,139 1,138 1,139 1,138 1,139
Net loss to common
stock ($2,772) ($2,386) ($3,675) ($3,694) ($2,054)
Loss per common share($0.20) ($0.17) ($0.27) ($0.27) ($0.15)
Operating cash flow $6,711 $6,916 $4,778 $6,941 $5,166
Operating cash flow
per share $0.49 $0.50 $0.35 $0.50 $0.37
Weighted average shares
outstanding 13,781 13,781 13,781 13,781 13,781
PRODUCTION SUMMARY
Oil production
(Bbls) 473,927 432,438 374,856 337,213 320,353
Gas production
(Mcfs) 4,631,084 4,811,772 4,330,325 4,065,3273,746,291
Oil and gas
production (Boe) 1,245,774 1,234,400 1,096,577 1,014,768 944,735
Oil production
(Bbls) - daily 5,266 4,752 4,075 3,665 3,520
Gas production
(Mcfs) - daily 51,456 52,877 47,069 44,188 41,168
0il and gas production
(Boe) - daily 13,842 13,565 11,919 11,030 10,382
SUMMARY BOE ECONOMICS
Revenue:
Oil and gas sales $11.47 $11.30 $10.35 $11.74 $12.87
Interest and other
income 0.40 0.52 0.61 0.53 0.33
Total revenue 11.87 11.82 10.96 12.27 13.20
Costs and expenses:
Lease operating
expenses 0.99 1.02 0.96 1.16 1.24
Production taxes 0.81 0.80 0.72 0.83 0.91
Depletion, depreciation
and amortization 6.47 6.54 6.49 6.98 7.07
General and
administrative, net 1.47 1.51 1.63 2.22 1.78
Interest 2.82 3.01 3.41 3.48 3.61
Restructuring expenses 0.66 0.00 0.00 0.00 0.00
Abandoments, exploration
and other 0.03 0.00 0.12 0.12 0.06
Total costs and
expenses 13.25 12.88 13.33 14.79 14.67
Loss before income
taxes (1.38) (1.06) (2.37) (2.52) (1.47)
Benefit for income
taxes 0.07 0.05 0.06 0.00 0.50
Net loss ($1.31) ($1.01) ($2.31) ($2.52) ($0.97)
Net loss to common
stock ($2.23) ($1.93) ($3.35) ($3.64) ($2.17)
OIL & GAS PRICE SUMMARY
Oil price ($/Bbl) $15.91 $16.46 $15.96 $16.01 $18.56
Gas price ($/Mcf) $1.46 $1.42 $1.24 $1.60 $1.66
OPERATIONS SUMMARY
Wells Drilled 29 1 1 9 0
Wells Hooked up 63 7 2 4 5
Wells Recompleted 12 2 1 31 12
Gerrity Oil & Gas Corporation
Financial and Operational Summary
Financial Summary Quarter Quarter
(Dollars in thousands, except per share amounts) Ended Ended
3/31/95 3/31/96
Revenue $14,793 $12,467
Costs & expenses:
Lease operating expenses 1,234 1,169
Production taxes 1,015 861
Depletion, depreciation and amortization 8,062 6,677
General and administrative, net 1,830 1,678
Interest expense 3,514 3,408
Restructuring expenses 828 -
Abandonments, exploration and other 29 59
Total costs and expenses 16,512 13,852
Loss before income taxes (1,719) (1,385)
Benefit for income taxes 86 470
Net loss (1,633) (915)
Accrued preferred dividend 1,139 1,139
Net loss to common shareholders ($2,772) ($2,054)
Net loss per common share ($0.20) ($0.15)
Weighted average shares outstanding 13,781 13,781
Cash Flow Summary:
Net loss ($1,633) ($915)
Depletion, depreciation and amortization 8,062 6,677
Amortization of unearned revenue - (296)
Amortization of loan fees 159 161
Restructuring expenses 194 -
Deferred tax provision and other (71) (461)
Total Cash Flow $6,711 $5,166
Cash Flow Per Share $0.49 $0.37
Production Summary:
Oil production (Bbls) 473,927 320,353
Gas production (Mcfs) 4,631,084 3,746,291
Oil production (Bbls) - daily 5,266 3,520
Gas production (Mcfs) - daily 51,456 41,168
Oil and Gas Price Summary:
Oil price ($/Bbl) $15.91 $18.56
Gas price ($/Mcf) $1.46 $1.66
Oil equivalent price ($/Bbl) $11.47 $12.87