WEBSTER, S.D. -- May 9, 1996 -- DAKOTAH, INC.
(NASDAQ/NMS: DKTH) announced today the operating results for the
quarter ended March 31, 1996.
For the first quarter ended March 31, 1996, revenues increased
to $7,405,000 from $6,245,000 in the same period of 1995. The
higher revenues are primarily related to a home furnishing industry
improvement and sales related to Polarfleece products.
Net earnings for the three months ended March 31, 1996, were
$2,000 compared to $70,000 for the same period of 1995. The decline
in net earnings was primarily caused by the allowance for bad debt
related to the April 18, 1996 Chapter 11 bankruptcy filing of
Pacific Linen. Pacific Linen
is a west coast specialty retail chain
based in Bothel, Washington.
Gross margin percentages increased slightly to 26.5% in the
first quarter of 1996 from 26.3% for the same period of 1995. The
primary cause of the increase was a decrease in raw materials as a
percentage of sales but was mitigated by increased depreciation and
other manufacturing overhead expenses related to new manufacturing
capacity.
Troy Jones, Jr., Chief Executive Officer of DAKOTAH, INC.
stated, "Operationally, profits were equal to expectation. However,
the bankruptcy of Pacific Linen significantly impacted our bottom-
line performance. I regret that my April 18, 1996 announcement of
management first quarter expectations was in error, which was also
the same day as the Pacific Linen bankruptcy filing. The backlog
continues to be significantly above 1995 levels."
DAKOTAH INC. designs and manufactures decorative pillows,
bedroom ensembles, decorative throws, table linens and other
accessory products. There are various showrooms nationwide
including New York, Dallas, Atlanta, Los Angeles and San Francisco.
DAKOTAH, INC.
STATEMENTS OF EARNINGS
(000'S), EXCEPT PER SHARE AMOUNTS
(UNAUDITED)
For the three months ended:
March 31, MARCH 31,
1996 1995
Net Sales $ 7,405 $ 6,245
Cost of Goods Sold 5,441 4,604
Gross Profit 1,964 1,641
Operating Expenses:
Selling 1,094 926
General and Administrative 775 632
1,869 1,558
Operating Profit 95 83
Other Income (Expense), net (92) 26
Earnings Before Income Taxes 3 109
Income Tax Expense 1 39
NET EARNINGS $ 2 $ 70
Net Earnings Per Share $ 0 $ 0.02
Weighted Average Common Shares 3,500 3,500
Outstanding
DAKOTAH, INC.
CONDENSED BALANCE SHEETS
(000's) UNAUDITED
MARCH 31, 1996 DEC. 31, 1995
ASSETS
Cash and Cash Equivalents $ 10 $ 477
Other Current Assets 15,285 14,674
Property, Plant & Equipment, net 2,524 2,209
Other Assets 775 775
18,594 18,135
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current Liabilities $ 7,940 $ 7,564
Long Term Obligations, Less
Current Maturities 1,132 1,051
Stockholders' Equity 9,522 9,520
$ 18,594 $ 18,135
CONTACT: Dakotah Inc.
Troy Jones, JR., 605/345-4646
or
L.G. Zangani
Leonardo Zangani, 908/788-9660
NORTHBROOK, Ill. -- May 9, 1996 -- The U.S.
Bankruptcy Court today confirmed href="chap11.dauphin.html">Dauphin Technology Inc.'s Third
Amended Plan of Reorganization ("Plan").
The Plan, which was well received and approved by an
overwhelming number of the company's creditors and shareholders will
enable the company to emerge from Chapter 11 Bankruptcy proceedings.
The provisions of the Plan include a "debt for equity" swap for
all of the company's pre-petition debt and all of the post-petition
financing. In addition, the Plan also provides a mechanism for all
of the inventory held by Technology Partners, LLC to be turned over
to the company in an effort to assist the company with the
manufacturing of its product(s). Such inventory was originally
purchased by Technology Partners, LLC in May of 1995 from IBM when
Technology Partners, LLC acquired IBM's secured claim.
The company will now proceed to implement its Business Plan,
which includes diversification in products and technology via
strategic acquisitions and partnerships. The prior acquisition of
Interactive Controls Inc. ("Intercon") is expected to enable the
company to expand its products and sales in the industrial markets.
In addition, the company is planning to promptly begin production of
its DTR-2, a 2.5 pound palm-top computer capable of wireless
communication, voice, pen, and keyboard input. Markets targeted for
DTR-2 sales include the Department of Defense, health care industry,
Department of Transportation and others.
Dauphin's CEO and President, Andrew Kandalepas, has been
instrumental in rescuing the company prior to and after he joined
management in November of 1995. Kandalepas comments, "I am
extremely pleased with the outcome. It has been an unbelievable
challenge and quite an effort. I am especially happy for our
shareholders whose interests we all fought so hard to preserve and
protect." Kandalepas continues, "This is a new era for the company.
With the $51 million debt now a thing of the past, we can
concentrate on our business objectives with more vigor and
excitement."
Dauphin stock is publicly traded on the Over-the-Counter
Electronic Bulletin Board under the symbol DNTK.
CONTACT: Dauphin Technology Inc., Northbrook
Sheila A. Trendel, 847/559-8443 ext. 206
PLEASANTON, Calif. -- May 9, 1996 -- href="chap11.hexcel.html">Hexcel
Corporation (NYSE/PSE: "HXL") today reported results for the
first
quarter ended March 31, 1996.
Results for the first quarter of 1996 include one month of
operations of the composites business acquired from Ciba-Geigy
Limited and Ciba-Geigy Corporation (collectively, "Ciba") on
February 29, 1996. Net sales for the quarter were $126.4 million,
compared with net sales for the first quarter of 1995 of $85.2
million. Approximately $27.6 million of 1996 first quarter sales
was attributable to the acquired business. Gross margin for the
1996 quarter was $26.8 million, or 21.2% of sales, compared with
gross margin for the 1995 quarter of $14.8 million, or 17.4% of
sales.
Hexcel generated net income of $1.8 million in the first quarter
of 1996, or $0.07 per share, compared with a net loss of $2.5
million in the first quarter of 1995, or $0.28 per share. The 1996
quarter includes business acquisition and consolidation expenses of
$5.2 million, which resulted from the compensation expense
associated with stock options granted in 1995 subject to shareholder
approval and other acquisition-related costs. Results for the first
quarter of 1996 also include $1.6 million of interest expense
attributable to the write-off of capitalized debt financing costs as
a result of the refinancing of certain credit facilities in
connection with the acquisition of the composites business from
Ciba. Other income of $2.7 million resulted from the receipt of an
additional $1.6 million in cash in connection with the disposition
of the Chandler, Arizona facility in 1994, and from the partial
settlement for $1.1 million of a claim arising from the sale of
certain assets in 1991. Results for the first quarter of 1995
include bankruptcy reorganization expenses of $2.1 million.
Commenting on the first quarter results, John J. Lee, the
Chairman and Chief Executive Officer of Hexcel, said, "Obviously,
the acquisition of the composites business from Ciba had an impact
on sales volumes and related costs, even though the quarterly
results only reflect one month of operating activity for this
business. Apart from the acquisition, the real news from the first
quarter is the solid improvement in the Company's operating
performance. Excluding the results of the acquired business, sales
were more than $13 million higher in the first quarter of 1996 than
in the first quarter of 1995, and gross margin continued to improve.
In fact, gross margin as a percentage of sales reached its highest
level since the third quarter of 1992. Overall, Hexcel's operating
performance continues to improve. This trend reflects not only an
improvement in the commercial aerospace market which is very
important to the Company, but also the benefits of the restructuring
program that was begun in 1993 and completed in 1995. More work
must be done, but Hexcel has demonstrated that it is capable of
adapting to an ever-changing business environment and taking the
actions necessary to remain an industry leader."
Hexcel went on to announce that its Board of Directors has
approved a plan for consolidating the Company's operations following
the acquisition of the composites business from Ciba. This business
consolidation program, which is expected to take up to three years
to complete, will result in a second quarter charge against earnings
of $32 million. The total expense of the consolidation program is
estimated to be approximately $49 million, including the $5.2
million of expenses incurred in the first quarter of 1996 and
additional expenses totaling as much as $12 million that will be
recognized after the second quarter of 1996. Cash expenditures
necessary to complete the business consolidation program are
expected to total approximately $44 million, net of expected
proceeds from asset sales. The objective of the business
consolidation program is to integrate acquired assets and operations
into Hexcel, and to reorganize the Company's research and
manufacturing activities around strategic centers dedicated to
select product technologies. The consolidation program is also
intended to eliminate excess manufacturing capacity and redundant
administrative functions. Specific actions contemplated by the
consolidation program include the previously announced closure of
the Anaheim, California facility acquired from Ciba, the closure of
a portion of the Welkenraedt, Belgium facility, the reorganization
of the Company's manufacturing operations in France, the
consolidation of the Company's U.S. special process manufacturing
activities, and the integration of sales and marketing resources.
Management estimates that the consolidation program will reduce the
Company's workforce by approximately 8% worldwide.
As previously announced, Hexcel has executed a definitive
agreement to acquire the Composite Products Division of Hercules
Incorporated, and the Company expects to complete this transaction
by the end of the second quarter. The acquisition of this business,
which is subject to various conditions, would result in certain
modifications to the actions contemplated by the business
consolidation program. However, these modifications are not
expected to have a significant impact on the overall cost or timing
of the Company's business consolidation program. Hexcel Corporation
is an international developer and manufacturer of lightweight, high-
performance composite materials, parts and structures for use in the
commercial aerospace, space and defense, recreation and general
industrial markets.
Hexcel Corp. and Subsidiaries
Condensed Consolidated Statements of Operations
Unaudited
The Quarter Ended (in thousands, except March 31, April 2,
per share data) 1996 1995
Net sales $126,418 $ 85,155
Cost of sales (99,635) (70,360)
Gross margin 26,783 14,795
Marketing, general and administrative
expenses (17,482) (12,166)
Business acquisition and consolidation
expenses (5,211) --
Other income, net 2,697 --
Operating income 6,787 2,629
Interest expense (3,633) (2,363)
Bankruptcy reorganization expenses -- (2,125)
Income (loss) from continuing operations
before income taxes 3,154 (1,859)
Provision for income taxes (1,306) (510)
Income (loss) from continuing operations 1,848 (2,369)
Discontinued operations: Loss during
phase-out period -- (112)
Net income (loss) $ 1,848 $(2,481)
Net income (loss) per share and
equivalent share:
Primary and fully diluted:
Continuing operations $ 0.07 $ (0.27)
Discontinued operations -- (0.01)
Net income (loss) $ 0.07 $ (0.28)
Weighted average shares and
equivalent shares 24,685 8,773
CONTACT: Hexcel Corp., Pleasanton
William P. Meehan, 510/847-9500
LOS ANGELES, May 9, 1996 - Kerr Group, Inc. (NYSE: KGM),
today reported a loss from continuing operations applicable to
common stockholders before unusual items of $3,373,000 or $0.86 per
common share for the quarter ended March 31, 1996, compared to a
loss from continuing operations applicable to common stockholders of
$582,000 or $0.16 per common share for the quarter ended March 31,
1995. The Company has restated its results to present as
discontinued operations the Company's Consumer Products Business,
the manufacturing assets of which were sold by the Company on March
15, 1996.
Net sales from continuing operations decreased to $25,096,000 in
the first quarter of 1996 from $27,362,000 in the same period in
1995 primarily due to lower sales of prescription packaging products
and tamper-evident closures.
D. Gordon Strickland, President and Chief Executive Officer,
said the increase in the loss from continuing operations before
unusual items in the first quarter of 1996, as compared to the first
quarter of 1995, was primarily due to 1995 cost increases which have
not been offset by price increases, increased reserves for customer
rebates and inventory obsolescence, inefficiencies due to reduced
production and lower sales.
As previously announced, during the first quarter of 1996 the
Company recorded an unusual loss of $7,500,000 ($4,500,000 after-tax
or $1.14 per common share) for the costs associated with the
restructuring of the Company, which include moving the corporate
headquarters from Los Angeles, California to Lancaster, Pennsylvania
and relocating the wide mouth jar operations from Santa Fe Springs,
California to Bowling Green, Kentucky. The pre-tax loss consists
primarily of reserves of $3,000,000 for severance and related costs,
$2,200,000 for losses on the sublease of two facilities, and
$1,900,000 for asset retirements.
In addition to the presently recorded restructuring loss, the
Company will also incur non-recurring pre-tax losses during 1996 and
early 1997 associated with the restructuring of approximately
$2,400,000 ($1,440,000 after-tax or $0.37 per common share)
primarily related to equipment and personnel relocation costs, and
inefficiencies related to the relocation of operations. Accounting
rules require these costs to be expensed as incurred.
The Company reported a net gain from discontinued operations of
$1,431,000 or $0.36 per share for the first quarter of 1996 as
compared to a net loss from discontinued operations of $12,000 for
the first quarter of 1995. The net gain in 1996 includes a pre-tax
gain of $2,607,000 ($1,564,000 after-tax or $0.40 per common share)
in connection with the sale of the manufacturing assets of the
Consumer Products Business. This pre-tax gain has been reduced by
$5,800,000 of reserves, primarily consisting of $3,800,000 for
retiree health care and pension expense, $1,000,000 for severance
and related costs, $500,000 for professional fees and $300,000 for
asset retirements.
The relocation of the corporate headquarters and wide mouth jar
manufacturing operations are progressing on schedule. The
restructuring is expected to result in annualized pre-tax cost
savings of approximately $6,500,000. These cost savings are
expected to be substantially realized in 1997.
In addition to the $14,417,000 received from the sale of the
manufacturing assets of the Consumer Products Business on March 15,
1996, the Company expects to receive approximately $16,500,000,
primarily during the remainder of 1996, from the sale by the Company
of inventory and the collection of accounts receivable of the
Consumer Products Business.
The Company is in discussions with its lenders regarding
extension of waivers of certain financial covenants, which expire
May 15, 1996, and the extension of the May 15, 1996 due date of a
$6,040,000 unsecured note. The Company's lender indebtedness is
unsecured.
Kerr, headquartered in Los Angeles, is a major producer of
plastic packaging products.
KERR GROUP, INC.
Consolidated Statements of Earnings (Loss) for the
Three Months Ended March 31, 1996 and 1995
(In Thousands)
Three Months Ended
March 31,
1996 1995
(Unaudited)
Net sales $25,096 $27,362
Cost of sales 22,729 21,029
Gross profit 2,367 6,333
Selling, warehouse, general and
administrative expense 6,384 5,886
Loss on restructuring (1) 7,500 0
Interest expense (2) 1,359 1,129
Interest and other income (100) (46)
Loss from continuing operations
before income taxes (12,776) (636)
Benefit for income taxes (5,110) (261)
Loss from continuing operations $(7,666) $(375)
Discontinued Operations:(2)
Gain on sale of discontinued operations(3) 1,564 0
Loss from discontinued operations (133) (12)
Net earnings (loss) related to discontinued
operations 1,431 (12)
Net loss (6,235) (387)
Preferred stock dividends 207 207
Net loss applicable to common stockholders $(6,442) $(594)
Net earnings (loss) per common share,
primary and fully diluted: (4)
From continuing operations $(2.00) $(.16)
From discontinued operations (2) .36 .00
Net loss $(1.64) $(.16)
(2) The Company sold the manufacturing assets of its Consumer
Products Business on March 15, 1996 and, accordingly, has reflected
the results of this discontinued business separately from continuing
operations in the above table. The presentation of this business as
discontinued operations had no effect on net loss, net loss
applicable to common stockholders and net loss per common share from
the amounts previously reported.
(3) The gain on the sale of discontinued operations has been
reduced by $5,800,000 of reserves primarily consisting of $3,800,000
for retiree health care and pension expense, $1,000,000 for
severance and related costs, $500,000 for professional fees and
$300,000 for asset retirements.
(4) Weighted average number of common shares outstanding for
the three months ended March 31, 1996 and 1995 were 3,933,000 and
3,678,000, respectively. Fully diluted net earnings per common
share reflect when dilutive, a) the incremental common shares
issuable upon the assumed exercise of outstanding stock options, and
b) the assumed conversion of the Preferred Stock and the elimination
of the related Preferred Stock dividends. Antidilution occurred in
the three months ended March 31, 1996 and 1995.
KERR GROUP, INC.
Condensed Consolidated Balance Sheets as of
March 31, 1996 and December 31, 1995
(In Thousands)
March 31, 1996 December 31, 1995
(Unaudited) (As Restated)
Assets
Cash and cash equivalents $5,044 $3,904
Receivables 7,906 7,154
Inventories 16,052 17,748
Prepaid expenses and other
current assets 2,566 3,106
Current net assets related to
discontinued operations (1) 16,668 12,847
Total current assets 48,236 44,759
Property, plant and equipment, net 43,298 46,818
Deferred income tax asset 11,222 8,057
Goodwill and other intangibles 6,476 6,983
Other assets 7,515 8,026
Non-current net assets related to
discontinued operations (1) 0 4,854
$116,747 $119,497
Liabilities and Stockholders' Equity
Short-term debt $6,040 $6,500
Senior debt due 1997 through 2003
classified as current (2) 46,460 50,000
Other current liabilities 23,568 18,597
Total current liabilities 76,068 75,097
Accrued pension 17,182 18,318
Other long-term liabilities 4,515 2,175
Preferred stock 9,748 9,748
Common equity before pension
adjustment 17,857 24,299
Excess of additional pension
liability over unrecognized prior
service cost, net of tax
benefits (8,623) (10,140)
Total stockholders' equity 18,982 23,907
$116,747 $119,497
(2) The Company's outstanding senior debt due 1997 through 2003
was classified as a current liability because the Company was in
default of certain financial covenants for which the Company had
received waivers only through May 15, 1996.
CONTACT: Geoffrey A. Whynot, Vice President, Finance and Chief
Financial Officer of Kerr, 310-284-2407
DENVER, CO - May 9, 1996 - Coram Healthcare (NYSE: CRH) today
reported revenues of $131.6 million for the first quarter ended
March 31, 1996, compared to $104.8 million for the first quarter of
1995. Net loss for the first quarter was $17.9 million or $0.44 per
share, compared to net income of $4.6 million or $0.11 per share for
the first quarter of 1995.
"Coram continues to show margin improvement and a strengthened
balance sheet," said Donald J. Amaral, Coram's president and chief
executive officer. "Our total cost of service as a percentage of
net sales declined compared to the fourth quarter, thereby
increasing gross profit as a percentage of net sales by 1.2%.
Eliminating the effect of a restructuring benefit which was recorded
in the fourth quarter of 1995, operating results improved by over $8
million from the fourth quarter of 1995 to the first quarter of
1996."
"One of the key indicators you monitor in a turnaround is cash
flow, and I am pleased to say that the company showed strong
improvement," Amaral said. "Total recurring cash flow, which was
negative in the fourth quarter of 1995, was positive each month in
the first quarter of 1996. We are making progress in the
collections area, evidenced by the fact that during the first
quarter we collected $23 million more than we billed."
"Our focus is on gaining profitable new business to replace
unprofitable business," Amaral said. "Revenues in the first quarter
of 1996 declined by $22 million from the fourth quarter of 1995," he
stated. "Approximately $6.5 million of this amount was due to non-
strategic or unprofitable businesses sold or discontinued by the
company. We have also been eliminating unprofitable contractual
relationships. In the first quarter of 1996, patient census
declined by approximately 7% from the level we saw in the previous
quarter. Historically, the fourth quarter has been our busiest
season of the year. In the fourth quarter of 1995, patient census
increased by approximately 10% over that recorded in the third
quarter."
"Revenue growth is an important goal for Coram," Amaral
stressed. "We are aggressively pursuing - and winning - contracts
that allow us to provide high quality care at competitive prices, on
terms that make business sense for Coram."
New Contracts, New AIDS Care And Asthma Management Programs,
Transplant Program Growing
The company announced that during the first quarter, among other
pieces of new business, it had signed new national agreements with
three leading national insurers and managed care organizations
involving 27.5 million covered lives, completed a national agreement
with a preferred provider network of self-funded employers covering
2 million lives, and gained an exclusive contract, which includes an
asthma disease management program, with a new and rapidly growing
Medicaid HMO. Coram has been exploring cooperative ventures with a
number of integrated health care systems, and has begun managing all
ancillary services for a major Midwestern medical center through the
Coram Resource Network.
Coram also introduced an innovative AIDS care management program
with a leading Blue Cross/Blue Shield plan. The program offers
support services and case management for people with HIV/AIDS from
the time they are diagnosed as HIV positive.
"New contracts take time to produce a strong referral stream,"
Amaral commented, "but we are confident that the relationships we
are developing will be positive for our company, our customers, and
the patients we serve."
"The company showed record growth in its transplant program
during the first quarter of 1996. Coram is the leading provider of
homecare for solid organ and bone marrow transplant patients," said
Donald Amaral. "We have literally written the book on homecare for
the transplant patient - who requires very complex care pre- and
post- transplant, often receiving multiple infusion therapies. We
also have the ability to support these patients with oral
medications through Coram Prescription Services, which has an
excellent patient support and compliance program for transplant
patients, which is proving to be a major plus in the marketplace.
Many transplant patients require lifetime therapy on anti-rejection
medications."
"Coram's focus in the quarters to come will be to continue to
improve productivity, so we deliver high quality care with
increasing cost-effectiveness, focus our marketing efforts on the
complex patient populations where we bring unique value, integrate
our oral and intravenous drug therapies services, and continue to
improve the efficiency of our collections," Amaral concluded.
Coram, headquartered in Denver, is a leading provider of
alternative site patient care - complex care provided outside the
hospital. Coram's mission is to work with physicians, managed care
and other providers to develop new and better models of care for
those with serious or chronic medical problems.
CORAM HEALTHCARE CORPORATION
Condensed Consolidated Statement of Operations
(In Millions, Except Per Share Data)
(unaudited)
Three Months Ended
Results of Operations Mar. 31, Mar. 31, Dec. 31,
1996 1995 1995
Net revenue $131.6 $104.8 $153.7
Cost of service 98.2 75.6 116.6
Gross profit 33.4 29.2 37.1
Selling, general and
administrative expenses 25.3 17.9 33.0
Provision for estimated
uncollectable accounts 8.7 4.0 12.3
Amortization of goodwill 4.3 2.8 4.8
Restructuring benefit --- (4.1) (15.2)
Operating income (loss) (4.9) 8.6 2.2
Non-operating expenses, net (18.3) (2.7) (17.5)
Income (loss) before income taxes
and minority interest (23.2) 5.9 (15.3)
Provision (benefit) for
income taxes (7.4) (1.1) 0.1
Minority interest in net income
of consolidated joint ventures 2.1 2.4 2.2
Net income (loss) $(17.9) $4.6 $(17.6)
Net income (loss) per share $(0.44) $0.11 $(0.44)
Weighted average common
shares outstanding 40.7 40.9 40.4
CORAM HEALTHCARE CORPORATION
Condensed Consolidated Balance Sheet
(In Millions)
Mar. 31, Dec. 31,
1996 1995
(unaudited)
Assets:
Cash and cash equivalents $23.0 $26.7
Restricted cash 7.8 25.4
Accounts receivable, net 131.8 153.8
Other current assets 64.9 50.1
Total current assets 227.5 256.0
Goodwill, net 339.1 347.7
Other assets 73.2 84.1
Total assets $639.8 $687.8
Liabilities and Stockholders' Equity:
Accounts payable and other
current liabilities 125.0 151.5
Current maturities of long-term debt 235.7 67.1
Total current liabilities 360.7 218.6
Long-term debt 266.9 439.3
Other liabilities 8.6 11.9
Stockholders' equity 3.6 18.0
Total liabilities and
stockholders' equity $639.8 $687.8
LA CROSSE, Wis., May 9, 1996 - LaCrosse Footwear, Inc.
(Nasdaq-NNM: BOOT) has executed a definitive agreement to purchase
substantially all of the assets of Red
Ball, Inc. The proposed sale
was approved by the Federal bankruptcy court in Louisville, KY on
May 6, 1996. Red Ball, Inc. has been operating under the protection
of Chapter 11 of the Federal bankruptcy code since February 1996.
The scheduled closing date is May 20, 1996. Subject to working
capital adjustments at closing, the cash purchase price is
approximately $6.0 million.
Red Ball, Inc. is a leading designer, manufacturer and marketer
of branded outdoor sporting and protective footwear, sold primarily
under the Red Ball(R) brand, used in hunting, fishing and outdoor
activities. Red Ball's product offerings include hip boots, rubber
bottom/leather top pac boots and appropriate accessories, totaling
approximately $16.9 million in revenues in 1995. In addition, Red
Ball has developed a line of children's protective footwear, under
the Red Ball Jets(R) brand with 1995 revenues of $5.8 million.
Revenues in 1996 will be well below the 1995 level due to temporary
effects of the bankruptcy.
LaCrosse also announced, unrelated to the Red Ball, Inc.
purchase, that it has repurchased all of its outstanding preferred
stock, consisting of 19,574 shares at their stated value of $100 per
share. According to Robert J. Sullivan, vice president finance and
chief financial officer, "The repurchase will have a positive effect
on earnings per share as the company's current borrowing cost on an
after- tax basis is less than the preferred stock dividend."
LaCrosse Footwear designs, manufactures, and markets premium
quality rubber, leather and vinyl footwear for the sporting and
outdoor, farm and general utility, occupational and children's
markets under the LaCrosse(R) and Danner(R) brands and for private
label customers.
CONTACT: Robert J. Sullivan, vice president-finance of LaCrosse
Footwear, Inc., 608-782-3020
WORCESTER, Mass. and WEST BRIDGEWATER, Mass., May 9, 1996
- Cambridge Biotech Corporation
today announced that it has sold its
reference laboratory business to Boston Biomedica Incorporated.
Cambridge's reference laboratory provides specialized confirmatory
testing services, including tests for HIV, HTLV and Lyme Disease to
physicians, hospitals, blood centers and other reference labs.
Under the agreement, Cambridge Biotech will receive an up-front
payment and royalties on revenues from the existing client base.
Laboratory services will be provided by BBI-North American Clinical
Laboratories (BBI-NACL), a wholly owned subsidiary of Boston
Biomedica. BBI-NACL is a nationally recognized leader in reference
laboratory services in the area of infectious diseases, particularly
retrovirology, hepatitis and Lyme Disease.
BBI-NACL founder Dr. Richard C. Tilton commented, "This
transaction will allow us to expand the menu of tests we currently
provide to over 800 clients nationwide, while providing Cambridge's
clients with many additional assays. With our expertise in
infectious disease testing, BBI-NACL is the natural choice to
provide Cambridge's clients with the same level of high quality
reference laboratory service that they expect."
Alison Taunton-Rigby, President and CEO of Cambridge, said,
"With this sale, we move another step forward in executing
Cambridge's reorganization, and in focusing on our therapeutics
business in infectious disease and cancer therapeutics as Aquila
Biopharmaceuticals." Dr. Taunton-Rigby noted that a key reason for
selecting BBI-NACL was to provide Cambridge's reference laboratory
customers with the same high quality service they have been
receiving from Cambridge, and a seamless transition to the new
owner. "BBI-NACL is highly regarded in the industry," she
continued, "and has had a working relationship with Cambridge since
the mid eighties, which will facilitate the transition."
Located in New Britain, CT, BBI-NACL is a licensed and
accredited clinical reference laboratory for infectious disease
testing, particularly in the area of retrovirology. BBI-NACL is a
wholly owned subsidiary of Boston Biomedica (BBI), a leader in the
development and manufacture of quality control products and assay
components used in infectious disease diagnostics including AIDS and
hepatitis. Privately owned BBI was founded in 1986, and is
headquartered in West Bridgewater, MA. BBI supplies diagnostic
reagents to research and clinical laboratories, blood banks,
diagnostic manufacturers and regulatory agencies worldwide.
Cambridge Biotech Corporation (CBC) is a therapeutics and
diagnostics company focusing on infectious disease and cancer. CBC
filed for protection under Chapter 11 of the United States
Bankruptcy Code on July 7, 1994, and filed a reorganization plan
with the bankruptcy court on April 10, 1996. After bankruptcy court
approval of CBC's reorganization plan, the assets, liabilities and
intellectual property of CBC, relating to its biopharmaceutical
business, will transfer to Aquila Biopharmaceuticals. Aquila will
focus on developing and commercializing therapeutic and prophylactic
vaccines for infectious diseases, and immunotherapeutics for cancer.
Aquila's therapeutics business will include the Stimulon(TM) family
of adjuvants and proprietary vaccines. The most advanced adjuvant,
QS-21, is in clinical development through corporate and academic
partners. 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, malaria,
bovine mastitis and canine Lyme disease. CBC recently announced the
sale of its retroviral diagnostic business to bioMerieux Vitek, Inc.
for $6.5 million in cash, and its enteric diagnostic business to
Carter-Wallace for $4.5 million in cash.
CONTACT: Alison Taunton-Rigby, President, Chief Executive Officer
of Cambridge Biotech Corporation, 508-797-5777, or Richard
Schumacher,
President, Chief Executive Officer of Boston Biomedica, Inc.,
508-580-1900, or Robert Gottlieb, Senior Vice-President of Feinstein
Partners, Inc., 617-577-8110
ST. LOUIS, MO -- May 9, 1996 -- Pinnacle Automation,
Inc. and its wholly owned subsidiary, Alvey Systems, Inc. (the
Company) today announced record sales for the quarter ended March
31, 1996.
Revenues increased to $80.7 million, a 20% improvement over the
$67.0 million in revenues reported for the first quarter of 1995.
The Company reported that earnings before interest, taxes,
depreciation, amortization and extraordinary losses (EBITDA),
excluding $13.1 million of non-recurring charges, increased to $4.4
million for the quarter ended March 31, 1996. These earnings
represent an increase in EBITDA of 13% over 1995 first quarter
results of $3.9 million.
New order bookings in the first quarter were $73.5 million, an
8% increase over the $68.3 million recorded for the same period in
1995. Order backlog at March 31, 1996 was $139.5 million or 20%
above the $116.1 million reported at March 31, 1995.
After recording a non-recurring $13.1 million charge to
operations and an extraordinary loss of $2.0 million, the Company
reported a net loss of $14.5 million for the quarter ended March 31,
1996. These non-recurring items are attributable to the
recapitalization of Pinnacle and the Company's acquisition of
Weseley Software Development Corp. (Weseley), both of which were
completed during January 1996.
Concurrent with Pinnacle's recapitalization, which was completed
January 24, 1996, the Company recorded as an extraordinary loss a
$2.0 million write-off, net of tax benefit, related to the debt
issuance costs resulting from the early extinguishment of the
Company's debt. In addition, the Company recorded a $1.4 million
charge to operations attributable to the early termination of a
consulting agreement.
In conjunction with the acquisition of Weseley, the Company
allocated and immediately expensed $11.7 million of the purchase
price to purchased in-process research and development costs.
William R. Michaels, Pinnacle's chairman and chief executive
officer, stated, "First quarter 1996 revenues reflect increased
volume over the first quarter of 1995 at each of the Company's
operating units." Michaels continued, "The strength in order
backlog and the demand for the Company's warehouse distribution and
management systems has provided the basis for this significant
revenue growth."
Michaels further commented, "The higher sales volume and
continuing productivity and operating improvements at certain of the
Company's subsidiaries have resulted in increased EBITDA, after
excluding non-recurring charges." In conclusion, he noted, "EBITDA
growth did not keep pace with revenues as the Company incurred
additional expenses associated with the management reorganization at
one of its subsidiaries and costs associated with a major consulting
engagement designed to improve productivity and reduce cycle times
at its largest subsidiary."
The Company is a leading materials handling and information
systems company, which produces equipment and related software and
controls that enable manufacturers, distributors and retailers to
operate their manufacturing plants, distribution centers and
warehouses more efficiently.
NOTE: The statements contained in this release that are not
historical facts are forward-looking statements. Actual results may
differ from those projected in such forward-looking statements.
These forward-looking statements involve risks and uncertainties,
including, but not limited to, risks associated with changes in the
performance of the financial markets, in the demand for and market
acceptance of the Company's products and services, and in general
economic conditions.
Investors are also directed to other risks discussed in
documents filed by the Company with the Securities and Exchange
Commission.
Alvey Systems, Inc. And Subsidiaries
Consolidated Statement of Operations
(Unaudited)
(dollars in thousands)
THREE MONTHS ENDED
MARCH 31, 1996 1995
Net Sales $ 80,717 $ 67,008
Cost of goods sold 61,235 51,485
Gross profit 19,482 15,523
Selling, general and
administrative expenses 15,309 11,828
Research and development expenses 639 438
Amortization expense 438 468
Write-off of purchased research
and development 11,700 --
Other expense (income), net 1,372 48
Operating income (loss) (9,976) 2,741
Interest expense 2,504 2,074
Income (loss) before provision
for income taxes and
extraordinary losses (12,480) 667
Income taxes 75 341
Net income (loss) before
extraordinary losses (12,555) 326
Extraordinary losses 1,993 0
Net income (loss) $(14,548) $ 326
Earnings per share(1) - -
(1) Given the historical organization and capital structure of
Alvey Systems, earnings per share information is not considered
meaningful or relevant and therefore has not been presented
Alvey Systems, Inc. And Subsidiaries
Condensed Consolidated Balance Sheet
(dollars in thousands)
March 31, December 31
1996 1995
(Unaudited)
Assets
Current assets:
Cash and short-term investments $ 7,113 $ 3,405
Receivables 49,844 48,778
Accumulated costs and earnings
in excess of billings 12,626 8,317
Inventories 17,790 19,686
Other current assets 7,399 6,364
Total current assets 94,772 86,550
Property, plant and equipment, net 26,728 25,675
Other assets 10,181 6,031
Goodwill 36,650 32,029
$168,331 $150,285
Liabilities, redeemable preferred stock,
and net investment of parent
Current liabilities:
Current portion of long-term debt $ 334 $ 6,915
Accounts payable 20,828 24,368
Accrued expenses 25,892 27,764
Customer deposits 13,808 12,107
Billings in excess of accumulated
costs and earnings 16,152 13,904
Other current liabilities 2,922 1,893
Total current liabilities 79,936 86,951
Long-term debt 100,717 42,460
Deferred income taxes and other
long-term liabilities 11,991 9,271
Redeemable preferred stock 0 27,322
Net investment of Parent (24,313) (15,719)
$168,331 $150,285
Alvey Systems, Inc. And Subsidiaries
Consolidated Statement of Cash Flows
(Unaudited)
(dollars in thousands)
THREE MONTHS ENDED
MARCH 31, 1996 1995
Operating Activities:
Net Income $(14,548) $ 326
Depreciation 716 668
Amortization 438 468
Write-off of purchased research
and development 11,700 0
Unamortized debt issue costs in
extraordinary loss 2,963 0
Changes in operating assets
and liabilities (3,933) (5,050)
Net cash provided by (used for)
operating activities (2,664) (3,588)
Investing activities:
Acquisition of subsidiaries (14,972) 0
Cash payments to dispose of Lewiston (191) (306)
Software developments (100) 0
Additions to property, plant and
equipment, net (1,543) (459)
Net cash (used for) investing
activities (16,806) (765)
Financing activities:
Proceeds of borrowings 102,019 13,625
Payments of debt and capital leases (50,343) (11,241)
Redemption of preferred stock (27,600) 0
Other (898) (12)
Net cash provided by (used for)
financing activities 23,178 2,372
Net increase in cash and short-term
investments 3,708 (1,981)
Cash and short-term investments,
beginning of year 3,405 2,580
Cash and short-term investments,
end of year $ 7,113 $ 599