ATLANTA, GA -- May 15, 1996 -- ROADMASTER INDUSTRIES,
INC. (NYSE: RDM) today announced results for the first quarter ended
March 30, 1996.
Net income for the quarter totaled $4.6 million, or $0.09 per
share, compared with a net loss of $1.5 million, or $0.03 per share,
for the first quarter of 1995. Net income earned in the first
quarter this year resulted from a $0.20 per share gain from the sale
of the company's camping division in March 1996. Excluding the
effects of the camping division sale, the Company would have
recorded a loss of $5.4 million, or $0.11 per share. The Company
noted that operating losses are attributable to continued under-
performance of its fitness equipment business, for which
restructuring initiatives have already been announced.
Revenue for the first quarter was $129,414,000, a decrease of
26% over last year's revenue for the comparable period of
$175,546,000. The revenue decrease primarily reflects a reduction
in fitness equipment revenues. The decrease in fitness equipment
revenues accounted for over 90% of the quarter's revenue shortfall.
As previously announced, the Company has experienced difficulties
with the integration of the DP acquisition and has restructured
fitness operations into a single manufacturing facility in an effort
to reduce both fixed and operating costs, as well as improve overall
working capital levels. This restructuring should be completed by
mid-year 1996.
Additionally, the company noted that revenues for the first
quarter of 1996 were lower by approximately $2.4 million, given the
sale of the camping division on March 8, 1996. Specifically,
revenues from the camping division for the first quarter of 1996
totaled approximately $19 million, while net income was less then
$0.01 per share. In the same period a year ago, camping revenues
and net income were approximately $21.3 million and $0.02 per share,
respectively.
Henry Fong, Chief Executive Officer of Roadmaster, stated,
"While we are obviously disappointed with the first quarter's
performance, the company entered the second quarter with
substantially improved liquidity, and higher revenues and
profitability in both the bicycle and toy categories. Moreover, we
think restructuring efforts in the fitness division will lead to
improved profitability, enhanced management focus, and more
efficient use of working capital. We are confident these measures
will favorably impact the fitness business as the company enters a
new program year, which begins in the third quarter."
Roadmaster, one of the largest manufacturers of bicycles, is
also a leading producer of fitness equipment, and is a leading
producer and distributor of toys and team sports equipment. The
trademarks or brand names under which Roadmaster sells its products
include Roadmaster, Flexible Flyer, Vitamaster, MacGregor, DP,
Hutch, Reach and Forster.
ROADMASTER INDUSTRIES, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(In thousands, except per share data)
(unaudited)
Three Months Ended
March 30,1996 April 1, 1995
Net sales $ 129,414 $ 175,546
Cost of sales 113,192 151,589
Gross profit 16,222 23,957
Selling, general and
administrative expenses 16,417 17,318
Other expense, net:
Interest expense 7,963 7,918
Gain on sale of subsidiary (20,151) --
Other, net 700 1,113
(11,488) 9,031
Earnings (loss) before income
tax expense 11,293 (2,392)
Income tax expense (benefit) 6,663 (915)
Net earnings (loss) $ 4,630 $ (1,477)
Earnings (loss) per common share:
Primary $ 0.09 $ (0.03)
Fully diluted $ 0.09 $ (0.03)
Weighted average common shares
outstanding and common stock
equivalents:
Primary 50,319 48,649
Fully diluted 63,075 48,649
CONTACT: Roadmaster Industries, Inc.
Jeff Hinton
(404) 586-9000
or
Lippert/Heilshorn & Associates
(212) 838-3777
Richard Foote, ext. 119
Jeffrey Volk, ext. 102
ANAHEIM, Calif. -- May 15, 1996 -- href="chap11.radiant.html">Radiant
Technology Corp. (RTNC) reports earnings of .02 a share for the
quarter ending March 31, 1996 and a Net Worth of .75 per share.
The company emerged from Chapter 11 Bankruptcy during the
quarter reported, Feb. 20, 1996.
Radiant Technology Corp. is a leading supplier of precision
temperature controlled belt furnaces that are primarily used by the
electronics and semiconductor manufacturing industries.
Radiant Technology Corp. is releasing a new Rapid Thermal Curing
furnace, the first engineered exclusively to produce new low cost
integrated circuit multichip modules. Lower cost multichip modules
are expected to lead the new wave of semiconductor package design
demanded by the high performance miniaturized electronics industry.
These micro packages will be cost competitive with printed circuit
board technology and are demanded by high speed processing for the
next generation of computers, high definition television and the
internet.
CONTACT: Radiant Technology Corp., Anaheim, Calif.
714/961-0200
NEW YORK -- May 15, 1996 -- href="chap11.rcp.html">Rockefeller Center
Properties, Inc. (RCPI) announced today a net loss in the first
quarter of 1996 of $28,588,000, or $.75 per share, as compared to a
net loss of $7,478,000, or $.20 per share, for the same period in
1995.
The loss for each quarter results from the May 11, 1995 Chapter
11 bankruptcy filings by the Borrower under RCPI's mortgage loan on
most of Rockefeller Center. For accounting purposes RCPI has
limited recognition of income on the mortgage loan for the quarters
ended March 31, 1996 and 1995 to the cash actually received from the
Borrower. The Borrower paid interest of $20,339,000 in the first
quarter of 1995 and no cash was received from the Borrower in the
first quarter of 1996, which resulted in a decrease in income of
$.53 per share. The results also include an increase in general and
administrative expenses of $1,896,000, or $.05 per share,
principally due to increased legal fees, investor relations related
expenses and financial advisory fees incurred principally due to
actions taken as a result of the Borrower's Chapter 11 filings.
Under the Merger Agreement (see Note below), RCPI has been
extended a credit facility from Goldman Sachs Mortgage Company
(GSMC) which is expected to provide sufficient liquidity for RCPI
until the earlier of the consummation of the merger contemplated by
the Merger Agreement or May 31, 1996. Management and the Board of
Directors believe that, if the transactions contemplated by the
Merger Agreement are not consummated, RCPI would be subject to
substantial uncertainties. In particular, if the transactions
contemplated by the Merger Agreement have not been consummated by
May 31, 1996, unless GSMC agrees to finance RCPI's cash requirements
in June of 1996, including interest payments aggregating $8.1
million on the Floating Rate Notes and the 14% Debentures which will
be due on June 3, 1996, RCPI, in light of the fact that its cash
will be substantially exhausted by May 31, 1996, will be unable to
meet its obligations in June of 1996. In addition, unless RCPI and
the Investor Group agree otherwise, either RCPI or the Investor
Group will have the right to terminate the Merger Agreement if the
merger has not been consummated by May 31, 1996, and, in the event
of such a termination, RCPI will be obligated to reimburse the
Investor Group, promptly after any such termination, for up to $2.5
million of its expenses in connection with the Merger Agreement.
Quarter to March 31 1996 1995
-------------------------------------------------------------------
Revenues $14,000 $20,446,000
Interest expense $22,137,000 $21,365,000
General and administrative $3,172,000 $1,276,000
Amortization of deferred
debt issuance costs $936,000 $849,000
Increase in liability for
stock appreciation rights $1,907,000 $4,434,000
Expenses related to the
March 25, 1996 special
meeting of stockholders $450,000
Net loss ($28,588,000) ($7,478,000)
Net loss per share ($0.75) ($0.20)
On November 7, 1995, RCPI entered into an Agreement and Plan of
Merger with a group of investors (the "Investor Group") including
Exor Group S.A., David Rockefeller, Rockprop L.L.C., Troutlet
Investments Corporation and Whitehall Street Real Estate Limited
Partnership V, pursuant to which, subject to satisfaction of the
conditions specified in the Merger Agreement, a corporation formed
by members of the Investor Group or their designated affiliates will
merge into RCPI (the "Surviving Company"). The Surviving Company
will be wholly owned by members of the Investor Group or their
designated affiliates, and the stockholders of RCPI will receive
$8.00 in cash for each of their shares of RCPI's Common Stock. The
Merger Agreement was approved at a special meeting of RCPI's
stockholders on March 25, 1996. If the merger contemplated by the
Merger Agreement is consummated, members of the Investment Group or
their designated affiliates will own 100% of the Surviving Company's
Common Stock.
CONTACT: Rockefeller Center Properties, Inc. -
Stephanie Leggett Young, 212/698-1440 or 800/555-6444
CINCINNATI, OH -- May 15, 1996 -- href="chap11.fds.html">Federated Department
Stores, Inc. today reported a net loss of $37.9 million or 18
cents
a share for the first quarter of 1996, attributable primarily to
expenses related to the business integration of Broadway Stores,
Inc. into Federated. These expenses totaled $77.7 million, before
income taxes, or 22 cents a share for the period ending May 4, 1996.
Excluding these expenses, Federated would have posted net income of
$9.3 million or 4 cents a share, reflecting a solid operating
performance in the quarter.
This compares to a net loss of $6.4 million or 3 cents a share
for the period ending April 29, 1995, excluding fiscal 1995 business
integration and consolidation expenses (BICE) of $83.3 million,
before income taxes, or 28 cents a share. Expenses in the first
quarter last year were primarily related to the integration of
Macy's into Federated and a divisional consolidation.
Operating Income Up In Quarter
Operating income in the first quarter of 1996 was $55.3 million,
including BICE. Excluding BICE for both this year and last, first
quarter operating income for 1996 was $133.0 million or 4.0 percent
of sales, an increase of 41.2 percent over operating income of $94.1
million or 3.2 percent of sales for the first quarter of 1995.
"We are very pleased with our performance in the quarter," said
Allen Questrom, Federated's chairman and chief executive officer.
"We are especially pleased with our continuing ability to reduce
expenses, as well as with the progress being made in the ongoing
Broadway business integration." Questrom noted also that the first
quarter was impacted by the company's efforts to gradually reduce
the amount of promotional activity, particularly in its home-related
businesses.
Comp-Sales Increase 4.6 Percent
Sales for the first quarter of Fiscal 1996 totaled $3,300.7
million, an increase of 10.5 percent over sales of $2,988.0 million
in the same 13-week period last year. On a comparable-store basis,
sales for the quarter ended May 4, 1996 increased 4.6 percent.
Federated, with corporate offices in Cincinnati and New York, is
one of the nation's leading department store retailers, with annual
sales of more than $15 billion. Federated currently operates more
than 400 department stores and 150 specialty stores in 36 states.
Federated's department stores now operate under the names of
Bloomingdale's, The Bon Marche, Broadway, Bullock's, Burdines,
Emporium, Goldsmith's, Lazarus, Macy's, Rich's, Stern's and
Weinstock's.
(NOTE: Information on Federated and its operating divisions is
available on the Internet at href="http://www.federated-fds.com" target=_new>http://www.federated-fds.com">http://www.federated-fds.com
FEDERATED DEPARTMENT STORES, INC.
Consolidated Statements of Income (Unaudited)
_____________________________________________
(All amounts in thousands except percentages and per share figures)
13 Weeks Ended
____________________________
May 4, April 29,
1996 1995
__________ __________
Net Sales $3,300,665 $2,988,006
__________ __________
Cost of sales (Note 2) 2,014,648 1,823,921
Percent to sales 61.0% 61.0%
Selling, general and administrative
expenses (Note 3) 1,153,065 1,069,959
Percent to sales 34.9% 35.8%
Business integration and consolidation
expenses 77,688 83,322
Percent to sales 2.4% 2.8%
__________ __________
Operating Income 55,264 10,804
Percent to sales 1.7% 0.4%
Interest expense - net (112,281)
(97,552)
__________ __________
Loss Before Income Taxes (57,017)
(86,748)
Federal, state and local income
tax benefit 19,071 29,749
__________ __________
Net Loss $ (37,946) $
(56,999)
__________ __________
__________ __________
FEDERATED DEPARTMENT STORES, INC.
Consolidated Statements of Income (Unaudited)
_____________________________________________
(All amounts in thousands except percentages and per share figures)
13 Weeks Ended
____________________________
May 4, 1996 April 29, 1995
___________ ______________
Loss per Share $ (.18) $ (.31)
________ ________
________ ________
Average Number of Shares
Outstanding 206,710 182,682
________ ________
________ ________
1. Because of the seasonal nature of the department stores
business, the results for the 13 weeks ended May 4, 1996 and
April 29, 1995 (which do not include the Christmas season) are
not indicative of the results for the year.
2. Substantially all merchandise inventories are valued by the
retail method and stated on the LIFO (last-in, first-out) basis,
which is generally lower than market. Application of this method
did not impact the 13 weeks ended May 4, 1996 and resulted in a
charge of $1,761,000 for the 13 weeks ended April 29, 1995.
3. Includes depreciation and amortization expense of $133,325,000
and $115,258,000 for the 13 weeks ended May 4, 1996 and
April 29, 1995, respectively.
CONTACT: Federated Department Stores, Inc., Cincinnati -
Media - Carol Sanger, 513/579-7764 -or-
Investor - Susan Robinson, 513/579-7780
PARKERFORD, Pa. -- May 15, 1996 -- Global Spill
Management Inc. (GSMI), the Pennsylvania-headquartered environmental
services company, announced Wednesday its third quarter and nine
month results for the period ended March 31, 1996.
Revenues (unaudited) for the third quarter ended March 31, 1996
were $2,939,000, with a loss from continuing operations of $805,000
(4 cents per share) and net loss of $2,518,000 (13 cents per share)
as compared to $4,308,000 of revenues, a loss from continuing
operations of $747,000 (6 cent net loss per share) and a net loss of
$975,000 (8 cents per share) for the comparable quarter in 1995.
Included in the 3rd quarter loss from continuing operations is a
one time non recurring loss of $315,000 related to costs incurred
for the postponed acquisition of American Marine Inc. The company
also recorded a loss of $1,713,000 related to the discontinued
operations of the company's recently closed Environmental Disposal
Options Corp. subsidiary.
The write down in goodwill accounted for $1,328,000 of the loss
related to discontinued operations.
Revenues (unaudited) for the nine months ended March 31, 1996
were $12,772,000 with a loss from continuing operations of
$1,419,000 and a net loss of $3,494,000, compared to revenues of
$12,026,000 and a loss from continuing operations of $330,000 and a
net loss of $672,000 for the same period in fiscal 1995.
Global Spill Management Inc. provides a wide range of
environmental contracting and waste management services. Its
environmental contracting and remediation activities are centered in
the Northeast United States, and its waste management services are
provided in the Eastern half of the United States and California.
The company also responds to environmental emergencies
throughout the Continental United States.
Global Spill Management Inc.
Financial Highlights
Summary Statement of Operations
-------------------------------
(unaudited)
(000's except share data)
Three Months Ended Nine Months Ended
March 31, March 31,
1996 1995 1996 1995
---- ---- ---- ----
Revenues $2,939 $4,308 $12,772 $12,026
Gross profit -- -- 3,133 3,059
Percentage of
revenue 20.2% 16.5% 24.9% 25.6%
SG&A 1,011 1,328 3,611 3,265
Restructuring
expense -- -- 380 --
Loss from continuing
operations (805) (747) (1,419) (330)
Loss from
discontinued
operations (1,713) (228) (2,075) (342)
Net income loss $(2,518) $(975) $(3,494) $(672)
Net loss per share
from continuing
operations $(.04) $(.06) $(.08) $(.03)
Net loss per share
from discontinued
operations (.09) (.02) (.11) (.03)
Net loss per share $(.13) $(.08) $(.19) $(.06)
Shares used in
computing primary
net income (loss)
per share 18,494,028 12,239,503 18,494,028 10,797,217
Summary Balance Sheet
(unaudited)
(000's)
March 31, June 30,
1995 1995
--------- ---------
Current Assets $3,401 $4,801
Total Assets 8,037 10,927
Current Liabilities 5,492 5,234
Long-Term Obligations 1,207 1,512
Shareholders' Equity 1,339 4,181
MIAMI, FL -- May 15, 1996 -- New
Valley Corporation
(OTC: NVLY) today announced financial results for the first quarter
ended March 31, 1996.
First quarter 1996 revenues were $36.7 million, compared to
revenues of $7.7 million in the first quarter of 1995. The Company
recorded an operating loss of $4.9 million in the 1996 first quarter
versus operating income of $6.6 million in 1995. Net loss
applicable to common shares in the 1996 quarter was $16.1 million,
or $0.08 per share, compared to a loss of $5.0 million, or $0.03 per
share, in the first quarter of 1995.
"New Valley's revenues for the quarter increased greatly over
last year's quarter due to the acquisitions of the Ladenburg,
Thalmann investment banking firm, commercial real estate, and
Thinking Machines Corporation, a developer and marketer of parallel
software for high-end computing systems," said Bennett S. LeBow,
chairman and chief executive of New Valley Corporation. "Operating
income for the quarter was lower than last year's quarter primarily
due to $10 million of expenses related to our investment in RJR
Nabisco. We are optimistic that these initiatives will result in
long-term value for New Valley and its shareholders."
New Valley is principally engaged in, through Ladenburg,
Thalmann & Co. Inc., the investment banking and brokerage business,
and in the ownership and management of commercial real estate and
the acquisition of operating companies.
NEW VALLEY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars In Thousands, Except Per Share Amounts)
(Unaudited)
Three Months Ended March 31,
1996 1995
Revenues:
Principal transactions, net $ 8,738
Commissions 3,863
Real estate leasing 5,706
Computer sales and service 4,699
Interest and dividends 5,184 $ 6,631
Other income 8,494 1,038
Total Revenues 36,684 7,669
Cost and Expenses:
Operating, general and
administrative 37,144 2,342
Interest 4,524
Reversal of restructuring accruals -- (2,044)
Total Costs and Expenses 41,668 298
(Loss) income from continuing
operations before income taxes (4,984) 7,371
(Benefit) provision for income taxes (100) 740
(Loss) income from continuing
operations (4,884) 6,631
Discontinued operations:
Income from discontinued operations,
net of income taxes of $155 -- 1,398
Net (Loss) Income (4,884) 8,029
Dividends on preferred
shares - undeclared (15,462) (20,411)
Excess of carrying value of
redeemable preferred shares
over cost of shares purchased 4,279 7,358
Net loss applicable to Common Shares $ (16,067) $ (5,024)
Loss per common and equivalent share:
From continuing operations $ (.08) $ (.04)
Discontinued operations $ .01
Net loss per Common Share $ (.08) $ (.03)
Number of shares used in computation 191,552 189,585
NEWBURY PARK, Calif. -- May 15, 1996 -- DDL
Electronics Inc. (NYSE:DDL) Wednesday announced results for its
third quarter ended March 31, 1996.
Revenues were $10,501,000 compared with $6,079,000 for the third
quarter of last year. The increase results from DDL's acquisition
of SMTEK Inc. in January 1996. For the nine months ended March 31,
1996, revenues were $22,722,000, an increase of 63 percent over pro
forma revenues for the nine months ended March 31, 1995, of
$13,908,000 (excluding A.J. Electronics and Aeroscientific Corp.,
which were disposed of during fiscal 1995).
Increased revenues in the nine-month period result from
increased sales at DDL Electronics Ltd. in the United Kingdom, and
from inclusion of SMTEK's operations in DDL's consolidated results
for the latest quarter.
In the current quarter, net income was $2,147,000 or 11 cents
per share, compared with $167,000 or 1 cent per share in last year's
third quarter. For the nine months ended March 31, 1996, net income
was $2,883,000 or 16 cents per share, compared with $1,074,000 or 7
cents per share for the first nine months of fiscal 1995 (on a pro
forma basis excluding A.J. and Aero).
Net income for the current quarter and nine-month period
includes an extraordinary gain of $2,552,000 as the result of an
agreement reached in March 1996 to reduce DDL's unfunded retirement
obligations through the issuance of common stock purchase warrants
to certain former officers and directors of the company.
As a result of goodwill amortization and interest expense on the
debt issued to finance the SMTEK acquisition, DDL incurred a loss
before extraordinary item of $405,000 or 2 cents per share, compared
with income before extraordinary item of $167,000 or 1 cent per
share for the same quarter last year.
For the nine months ended March 31, 1996, income before
extraordinary item was $331,000 or 2 cents per share, compared with
a loss before extraordinary item of $1,367,000 or 8 cents per share
for the first nine months of fiscal 1995 (on a pro forma basis
excluding A.J. and Aero).
In May 1996, the holders of $3.3 million of DDL's 10 percent
Cumulative Convertible Debentures elected to convert their
debentures to common stock. This conversion increases DDL's
stockholders' equity by $3.3 million and lowers ongoing interest
expense by $330,000 on an annualized basis. On a pro forma basis,
assuming the conversion had taken place on March 31, 1996, total
stockholders' equity would have been $6,186,000 at that date, which
is DDL's highest stockholders' equity level in more than four years.
In summarizing recent events, Gregory L. Horton, president and
CEO, stated: "DDL's turnaround continues to progress at a rapid
pace. During the latest quarter, DDL installed a new management
team and consummated the acquisition of SMTEK to serve as a
launching pad for the expansion of DDL's domestic operations. Also,
DDL's balance sheet has been substantially strengthened. Our focus
is now to rapidly increase revenues and profitability by
aggressively marketing our existing manufacturing capacity in the
U.S. and Europe, and by acquiring additional companies to expand our
presence in the electronic manufacturing services industry."
DDL Electronics, with headquarters in Newbury Park, provides
customized, integrated electronic manufacturing services to original
equipment manufacturers (OEMs) in the computer, telecommunications,
instrumentation, medical, industrial and aerospace industries.
DDL ELECTRONICS INC.
Condensed Consolidated Statements of Operations
(In thousands, except per-share amounts)
(Unaudited)
Three months ended
March 31,
1996 1995
Revenues $ 10,501 $ 6,079
Costs and expenses:
Cost of goods sold 9,147 4,916
Administrative and selling 1,132 913
Goodwill amortization 317 --
Restructuring charges -- --
10,596 5,829
Operating income (loss) (95) 250
Gain on sale of assets -- --
Other income (expense), net (310) (83)
Income (loss) before income
taxes (405) 167
Income tax benefit -- --
Income (loss) before
extraordinary item (405) 167
Extraordinary item 2,552(e) --
Net income $ 2,147 $ 167
Earnings (loss) per share:
Income (loss) before
extraordinary item (2 cents) 1 cent
Extraordinary item 13 cents --
11 cents 1 cent
Average shares (in 000s) 19,065 16,013
Nine months ended March 31,
Pro forma
1996 1995 1995(a)
Revenues $ 22,722 $ 22,673 $ 13,908
Costs and expenses:
Cost of goods sold 19,985 20,629 12,068
Administrative and selling 3,027 4,146 2,733
Goodwill amortization 317 -- --
Restructuring charges -- 1,173(b) --
23,329 25,948 14,801
Operating income (loss) (607) (3,275) (893)
Gain on sale of assets -- 3,374(c) --
Other income (expense), net (172) (649) (474)
Income (loss) before income
taxes (779) (550) (1,367)
Income tax benefit 1,110(d) -- --
Income (loss) before
extraordinary item 331 (550) (1,367)
Extraordinary item 2,552(e) 2,441(f) 2,441
Net income $ 2,883 $ 1,891 $ 1,074
Earnings (loss) per share:
Income (loss) before
extraordinary item 2 cents (3 cents) (8 cents)
Extraordinary item 14 cents 15 cents 15 cents
16 cents 12 cents 7 cents
Average shares (in 000s) 17,678 15,791 15,791
DDL Electronics Inc.
Condensed Consolidated Balance Sheet
(in thousands)
March 31, June 30,
1996 1995
Current assets:
Cash and cash equivalents $ 2,649 $ 2,917
Accounts receivable 5,553 3,600
Inventories 7,621 2,188
Prepaid expenses and deposits 170 171
Total current assets 15,993 8,876
Property, plant and equipment, net 5,966 3,309
Goodwill 6,025 --
Other assets 1,944 405
$29,928 $12,590
Current liabilities
Current portion of long-term debt $ 4,203 $ 633
Accounts payable 7,708 5,283
Other current liabilities 4,097 2,988
Total current liabilities 16,008 8,904
Long-term debt 11,034 7,030
Stockholders' equity (deficit):
Common stock 202 161
Additional paid-in capital 25,828 20,983
Common stock held in escrow (1,325) --
Accumulated deficit (20,715) (23,598)
Foreign currency translation adjustment (1,104) (890)
Total stockholders' equity (deficit) 2,886 (3,344)
$29,928 $12,590
WILMINGTON, N.C., May 15, 1996 - Welcome Home, Inc.
(Nasdaq: WELC) today announced financial results for the first
quarter ended March 31, 1996.
Net sales for the first quarter of 1996 increased 2.8% to $12.5
million, versus $12.1 million for the first quarter of 1995.
Comparable store sales decreased 12.0% in the first quarter. Net
loss for the first quarter of 1996 was $2.1 million, or $0.29 per
share, as compared to $1.6 million, or $0.19 per share, for the same
period last year.
The Company also announced that, on May 15, 1996, it signed an
amendment to its existing revolving credit agreement with Fleet
Capital (formerly Shawmut Capital) which increased its borrowing
availability by $4 million for the remainder of 1996, waived past
financial covenant violations and revised those covenants to less
restrictive levels for the remaining term of the related agreement,
through May 2000.
On a separate note, the Company announced the appointment of
Robert E. Wood as Chief Information Officer. Mr. Wood joins Welcome
Home from Office Max, where he was Director of Computer Services.
Previously, Mr. Wood had been Director of Management Information
Services at Goody's Family Clothing Inc. Mr. Wood has assumed
responsibility for the Company's overall information systems
operations, including implementation of the Company's new
information system.
Ed Kleiger, President and Chief Operating Officer, noted, "The
retail environment remained challenging during the first quarter,
which is seasonally our slowest quarter and has historically
generated a loss. We are continuing the implementation of our
restructuring plan, which includes (1) the refinement of our
merchandise assortments, (2) ascertaining more effective and
efficient means of distribution, and (3) preparation for the
implementation of a new information system later this year. Our
gross margin increased to 47.5% from 44.5% for the first quarter of
1995. This improvement reflects that clearance and liquidation
markdowns in the first quarter of 1996 were taken against the 1995
restructuring reserve for merchandise categories which have been
discontinued and deemphasized. In addition, we continued to
strengthen our management team. We remain confident that our
restructuring plan will serve as the foundation for the renewal of
our concept and better long-term positioning for Welcome Home."
Welcome Home, Inc. is a leading specialty retailer of gifts and
decorative home furnishings and accessories. The Company operates
215 stores in 41 states which are located primarily in outlet and
off-price malls. Welcome Home stores offer a broad selection of
distinctive, popular merchandise at low prices that are generally 20-
50% below regular department store prices.
WELCOME HOME, INC.
Consolidated Statements of Operations
For the Three Months Ended March 31, 1996 and 1995
(In thousands, except per share data)
(Unaudited)
1996 1995
Net sales $12,482 $12,137
Cost of sales 6,558 6,742
Gross margin 5,924 5,395
Selling, general and administrative expenses 8,514 7,376
Depreciation 471 449
Operating income (loss) (3,061) (2,430)
Interest expense:
Jordan Industries 89 231
Other 277 32
Other expense (income) (31) --
Pretax income (loss) (3,396) (2,693)
Provision (benefit) for income taxes (1,256) (1,122)
Net income (loss) $(2,140) $(1,571)
Net income (loss) per share $ (0.29) $ (0.19)
Weighted average shares outstanding (in thousands) 7,454 8,080
Consolidated Balance Sheets
As of March 31, 1996 and December 31, 1995
(in thousands of dollars)
(unaudited)
ASSETS 3/31/96 12/31/95
Current Assets
Cash and cash equivalents $ 122 $ 7
Inventories 18,819 16,798
Deferred income taxes 470 470
Other current assets 703 818
Total current assets 20,114 18,093
Property and equipment, net 8,528 8,826
Deferred income taxes 2,971 1,715
Other assets 704 542
Total Assets $ 32,317 $ 29,176
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Notes payable - line of credit $ 12,713 $ 5,213
Accounts payable 11,138 11,703
Accrued expenses 1,287 2,817
Current portion of capital
lease obligations 527 514
Total current liabilities 25,665 20,247
Capital lease obligations 1,037 1,174
Note payable to Jordan Industries 4,128 4,128
Shareholders' Equity
Common Stock 85 85
Additional paid-in capital 8,832 8,832
Cumulative translation adjustment (37) (37)
Retained earnings (deficit) (2,508) (368)
Subtotal 6,372 8,512
Less treasury stock 4,885 4,885
Total Shareholders' Equity 1,487 3,627
Total Liabilities and Shareholders'
Equity $ 32,317 $ 29,176
EL PASO, Texas, May 15, 1996 - href="chap11.elpaso.html">El Paso Electric Company
(AMEX: EE) ("EPE") reported net income applicable to common stock of
approximately $0.1 million for the 49-day period Feb. 12, 1996 to
March 31, 1996. The results reflect the effects of EPE's Plan of
Reorganization and its emergence from bankruptcy on Feb. 12, 1996.
For financial reporting purposes, the reorganization resulted in a
new company and a predecessor company. The reorganization and
application of "fresh-start" reporting caused significant changes to
EPE's financial information, which means the financial information
for the post reorganization period is not comparable to past
results.
EPE also announced that it intends to use a portion of cash flow
to reduce its fixed obligations through open market purchases of its
first mortgage bonds from time to time based on prevailing market
conditions. EPE is in the process of developing a strategy for the
implementation of an open market purchase program.
EPE also announced that on May 13, 1996 the Securities and
Exchange Commission declared effective under the Securities Act of
1933, as amended, a registration statement covering the resale of
13,842,797 shares of common stock, 160,000 shares of 11.40 percent
preferred stock and $107,634,509 principal amount of first mortgage
bonds. The securities covered by the registration statement are
currently owned by funds advised by Fidelity Management & Research
Company and by accounts managed by Fidelity Management Trust
Company. EPE has agreed to keep the registration statement
effective until the securities have been sold or restrictions on
transfers no longer apply.
EPE is an electric utility serving approximately 274,000
customers in El Paso, Texas and an area of the Rio Grande Valley in
West Texas and Southern New Mexico, and to wholesale customers in
Southern California, New Mexico, Texas and Mexico. EPE's common
stock trades on the American Stock Exchange under symbol "EE".
El Paso Electric Company's results of operations for the period
Feb. 12 to March 31, 1996 are as follows (in thousands except share
data):
Period From
February 12
to March 31,
1996
Operating revenues $ 69,907
Operating expenses (55,159)
Interest charges (13,522)
Net income 1,689
Preferred stock dividend requirements 1,552
Net income applicable to common stock $ 137
Net income per weighted average share
of common stock $ 0.00
Weighted average number of common
shares outstanding 59,999,981
ROSWELL, Ga., May 15, 1996 - Harry's Farmers Market, Inc.
(Nasdaq: HARY) the Atlanta-based purveyor of fresh, specialty and
prepared food products, today announced results for first quarter
fiscal 1997. According to Harry A. Blazer, Chairman, CEO and
President, the anticipated results signal "continued progress toward
a return of the Company to profitability."
Preliminary results indicate a loss in the range of $.05 to $.07
per common share compared to a loss of $.14 per common share for the
same period last year and $.11 for the fourth quarter fiscal 1996.
Mr. Blazer attributed much of the continued improvement in
profitability to strong gross profit growth as a percentage of net
sales. Gross margin increased to approximately 27.1% for the
quarter compared to 24.8% for the comparable year-ago quarter and
26.4% for the fourth quarter of fiscal 1996.
"We are very pleased with our expected first quarter results and
feel that profitability is well within our grasp," said Mr. Blazer.
"The fourth quarter gross margin improvements have been sustained
during the first quarter of fiscal 1997, a strong indication that
our on-going improvements in operations at all levels are producing
tangible results for our shareholders. Our primary focus now is to
continue to improve sales and to position the Company for future
growth."
Sales for the first quarter were $33.5 million, compared to
sales of $34.9 million for the same period last year. On a
comparable store basis, sales were off only 3.9%, as compared to an
8.1% decline for the fourth quarter.
"It appears that we have bottomed out in terms of the negative
sales trend," said Mr. Blazer. "We began to see an improvement in
the last weeks of January. Since the second week of February, we
have realized comparable store sales down only one-half of one
percent on average, with all stores showing positive comparisons at
various times since January."
"We believe," Mr. Blazer continued, "that recent merchandising
initiatives combined with better operational performance at store-
level, higher employee morale and a more cohesive management team
are responsible for the improvements in sales trends and growth in
gross profits."
The Company also reported that a contract on an outparcel at its
Gwinnett megastore location will produce net proceeds of
approximately $375,000 which will be used to reduce the Company's
borrowings. The transaction is expected to close in the second
quarter.
As previously reported, the Company said it expects to net
approximately $4.3 million from the proposed sale of a 17 acre tract
in Nashville, Tennessee which is scheduled to close on June 3, 1996.
According to Mr. Blazer, anticipated proceeds from the sale at
approximately book value will be used to further reduce the
Company's borrowings and debt service.
As a result of improved performance, among other things,
NationsBank, the Company's primary lender, has waived past
violations of loan covenants and has restructured the covenants more
favorably through the end of the loan term in October 1998. "We
believe the new covenants give us renewed operational flexibility
and allow us to begin planning for growth again," noted Mr. Blazer.
The Company continues to negotiate with Citicorp, the mortgage
lender on its bakery facility and distribution center, to
restructure the $3.2 million mortgage to more favorable terms and is
exploring alternative financing options. The Company is confident
that an acceptable agreement will be concluded within forty-five
days.
Harry's Farmers Market, Inc. owns and operates three megastores
and two Harry's in a Hurry convenience stores in metro Atlanta
specializing in fresh food products, as well as specialty and
prepared foods.
CONTACT: Anthony J. Tortorici of Tortorici & Company,
404-365-9393