TCR_Public/960520.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy News For - May 20, 1996



  1. Autotote announces second quarter results
  2. Enzon reports third quarter results




Autotote announces second quarter results



            NEW YORK -- May 20, 1996 -- Autotote Corp.
        (AMEX:TTE) today announced financial results for its second fiscal
        quarter and six months ended April 30, 1996.
        


            In the second quarter, revenues increased 23.2 percent, from
        $37.1 million in 1995 to $45.7 million in 1996.  
        


            EBITDA (earnings before interest, taxes, depreciation and
        amortization) increased 52.4 percent, from $5.1 million in 1995 to
        $7.7 million in 1996.
        


            Despite a 9 percent increase in depreciation and amortization,
        to $9.6 million, the operating loss for the quarter declined to $1.9
        million from $3.7 million in the year-earlier period.  The net loss
        fell to $5.9 million, or 19 cents per share on 31.5 million shares
        outstanding, from a loss of $9.0 million, or 31 cents per share on
        28.9 million shares outstanding, in the year-earlier period.
        


            Revenues for the six months ended April 30, 1996 increased 30.5
        percent, from $68.2 million in 1995 to $89.0 million in 1996.
        EBITDA (earnings before interest, taxes, depreciation and
        amortization) increased 49.4 percent from $10.2 million in 1995 to
        $15.3 million in 1996.  The operating loss for the six months was
        $3.7 million compared to $6.3 million in the year-earlier period.
        The net loss was $19.7 million, or 63 cents per share on 31.1
        million shares outstanding, compared to a loss of $14.9 million, or
        52 cents per share on 28.9 million shares outstanding, in the year-
        earlier period.
        


            A. Lorne Weil, chairman and chief executive officer, said, "The
        positive trends we identified in the preceding three quarters
        continued in the second quarter of this fiscal year.  EBITDA and
        consolidated revenues were once again up sharply over year-earlier
        levels and EBITDA as a percentage of sales increased to 16.8 percent
        from 13.6 percent in the year-earlier period.  Finally, total
        selling, general and administrative expenses, including R&D, fell
        both as an absolute number and as a percentage of sales in the
        second quarter, to $8.4 million and 18.3 percent, respectively.
        


            "We also made important progress in operations during the second
        quarter and first half," he added.  "Our strategic objective of
        extending the contractual relationship with key customers continued
        successfully, most notably with the decision by the Ontario Jockey
        Club to sign a new multi-year contract for its track and OTB
        network, one of the largest in North America, a full two years
        before the original contract expired.  New contracts announced
        during the second quarter included the Israeli lottery and four pari-
        mutuel contracts in the U.S.  Our Tele Control lottery unit
        continued to deliver equipment on schedule to key German state
        lotteries, and our Connecticut OTB unit also had a strong quarter,
        thanks in part to the Sports Haven entertainment and simulcasting
        facility, which opened a year ago."
        


            Weil added, "Going forward, Autotote is well positioned for
        growth as the pari-mutuel industry continues to increase its off-
        track sources of revenues.  As the premier supplier of wagering
        systems networks in North America, we are benefitting from that
        trend and the global interest in racing as a key gaming product."
        


            Thomas C. DeFazio, president and chief operating officer, said,
        "The impact of the restructuring that we began in the third quarter
        of fiscal 1995 continues to be felt.  We have implemented steps
        across the company to lower costs while continuing to improve
        customer service and quality assurance."
        


            AUTOTOTE Corp. designs and manufactures computerized wagering
        equipment and provides facilities management for use in off-track
        wagering, lotteries and legalized sports betting facilities.
        Autotote's systems are in use in the United States, Europe, Central
        and South America, Canada, Mexico, New Zealand and the Far East.



        
                         AUTOTOTE CORPORATION AND SUBSIDIARIES
                         Consolidated Statements of Operations
                                      (Unaudited)
                         (In Thousands, Except Per Share Amounts)

        
                                       Three Months Ended
                                      April 30,    April 30,
                                       1996          1995
                                     -------       --------
        Operating Revenues:                              
         Wagering systems              $  35,406     $  32,423
         Wagering equipment and
          other sales                     10,335         4,709
                                     --------       --------
                                      45,741        37,132
        
        Operating expenses (exclusive
         of depreciation and
          amortization):
        Wagering systems              22,224        19,224
        Wagering equipment and
         other sales                   7,442         2,948
                                     ---------     ----------
                                      29,666        22,172
        
        Total gross profit            16,075        14,960
        
        Selling, general and
         administrative expenses           8,378         9,909
        Depreciation and amortization      9,558         8,781
        
        Operating loss                (1,861)       (3,730)
        
        Other deductions (income):
        Interest expense               3,670         4,308
        Litigation settlement            --            --
        Other deductions (income)       (149)          253  
                                      --------      ----------
                                       3,521         4,561
        
         Loss before income tax expense   (5,382)       (8,291)
        
        Income tax expense                   512           667
        Net loss                       $  (5,894)    $  (8,958)
        
        Net loss per common share      $   (0.19)    $   (0.31)
        
        Weighted average number
         of common shares outstanding
         (000)                            31,456        28,913
        

        
                         AUTOTOTE CORPORATION AND SUBSIDIARIES
                         Consolidated Statements of Operations
                                      (Unaudited)
                         (In Thousands, Except Per Share Amounts)

        
                                         Six Months Ended
                                      April 30,    April 30,
                                       1996          1995
                                         -------       -------- Operating
        Revenues:                              
        
         Wagering systems              $  64,974     $  61,399
         Wagering equipment and
          other sales                     24,073         6,850
                                     --------       --------
                                      89,047        68,249
        
        Operating expenses (exclusive
         of depreciation and
          amortization):
        Wagering systems              41,071        35,971
        Wagering equipment and
         other sales                  16,140         4,444
                                     ---------     ----------
                                      57,211        40,415
        
        Total gross profit            31,836        27,834
        
        Selling, general and
         administrative expenses          16,548        17,604 Depreciation
        and amortization     18,994        16,498
        
        Operating loss                (3,706)       (6,268)
        
         Other deductions (income):
        Interest expense               7,332         7,157
        Litigation settlement          6,800           --
        Other deductions (income)        143           145  
                                      --------      ----------
                                      14,275         7,302
        
          Loss before income tax
           expense                       (17,981)      (13,570)
        
        Income tax expense                 1,714         1,319 Net loss
        $ (19,695)    $ (14,889)
        
        Net loss per common share      $   (0.63)    $   (0.52)
        
        Weighted average number
         of common shares outstanding
         (000)                            31,139        28,862
        
    
        
        CONTACT: Gregory W. Miller   
                 The Miller Company
                 Tel: 914-834-1868   
                 Fax: 914-834-6782
                 E-mail:millerco1@aol.com
        




Enzon reports third quarter results


      
            PISCATAWAY, N.J. -- May 20, 1996 -- Enzon, Inc.
        (NASDAQ\NMS:ENZN) announced today a net loss of $1,994,000 or $0.08
        per share for the three months ended March 31, 1996 compared to a
        net loss of $664,000 or $0.03 per share for the comparable quarter
        in 1995.  
        


            The increase in the net loss was primarily due to a 43% decrease
        in revenues, related to a reduction in sales of clinical trial
        material and decreased contract revenue.  
        


            For the nine months ended March 31, 1996, the Company reported a
        net loss of $4,191,000 or $0.16 per share compared to a net loss of
        $5,799,000 or $0.24 per share for the same period last year.  The
        decrease in the loss for the nine months was due to the one-time
        reversal to other income of the Sanofi advance during the previous
        quarter, as well as a reduction in total ongoing expenses of 10%,
        with the largest reduction occurring in the area of Selling, General
        and Administrative expenses.  
        


            Total revenues, which include sales, royalties and contract
        revenues for the quarter ended March 31, 1996 decreased by 43% to
        $2,735,000 as compared to $4,814,000 reported last year.  Sales for
        the quarter decreased by 30% due to a reduction in clinical supply
        shipments of PEG-INTRON A.  During June 1995, the Company amended
        its agreement with Schering Corporation and agreed to transfer know-
        how and manufacturing rights for PEG-INTRON A to Schering.  
        


            Contract revenues for the quarter ended March 31, 1996 also
        decreased by $896,000, principally as a result of a licensing
        payment recorded during the previous year under the Company's
        exclusive marketing rights license agreement with Rhone-Poulenc
        Rorer Pharmaceuticals, Inc.  for ONCASPAR.  A comparable payment was
        not recorded in the current quarter.  
        


            Research and Development expenses for the quarter ended March
        31, 1996 increased by $372,000 or 18% to $2,470,000 as compared to
        $2,097,000 for the quarter ended March 31, 1995.  The increase was
        primarily due to an increase in facility costs, which was the result
        of a one-time rent credit received in the prior year.  Research and
        Development efforts continue to be focused on the Company's lead
        product candidate, PEG Hemoglobin, which is being developed as an
        enhancement to radiation treatment for patients diagnosed with
        cancerous hypoxic tumors.  
        


            The Company completed its Phase Ia clinical trial in healthy
        volunteers at the end of 1995, and received approval from the FDA to
        enter a multi-dose trial in cancer patients.  Enrollment of patients
        for this trial has been unexpectedly slow, and as a result, the
        Company has just opened a second site and plans to add additional
        sites.  The clinical supplies for the trial have been delivered to
        the open sites.  To expedite completion of this trial, a clinical
        research organization will be utilized to accelerate patient
        recruitment, monitor the study, and compile results.  
        


            Selling, General and Administrative expenses for the quarter
        ended March 31, 1996 remained relatively flat at $1,536,000 compared
        to $1,537,000 for the quarter ended March 31, 1995.  
        


            The Company had cash on hand as of March 31, 1996 of $12,761,000
        as compared to $4,725,000 in the prior year.  The Company believes
        its current cash levels are sufficient to meet anticipated cash
        requirements, based on current spending levels, for approximately
        two years.  The previous statement is forward-looking in nature.
        Actual results could differ materially based on various factors,
        including, but not limited to, the Company's ability to maintain
        current sales levels of its products and current levels of expenses,
        or the occurrence of any of a number of unforeseeable contingencies
        beyond the Company's control.  
        


            "The recent appointment of Randy H.  Thurman to the position of
        non-executive chairman of the board has significantly strengthened
        our management team,"  said Peter G.  Tombros, president and chief
        executive officer.  "This combined with our recent private
        placements further enhances our ability to secure a favorable
        partnership for our PEG Hemoglobin product, as well as expand the
        Company's strategic alliances."  
        


            Enzon is a biopharmaceutical company developing advanced
        therapeutics for life-threatening diseases through the application
        of its proprietary technologies.  The Company's research and product
        development activities focus on blood substitutes, genetic diseases
        and cancer therapy.  The Company also pursues commercialization of
        its technologies through strategic alliances, including arrangements
        with Rhone-Poulenc Rorer Pharmaceuticals Inc., Schering Corporation,
        Eli Lilly, Bristol-Myers Squibb, Inc.  and Baxter Health Care.
        Enzon is headquartered in Piscataway, NJ.


        
                            ENZON, INC. AND SUBSIDIARIES
                   CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

        
                          Three Months Ended March 31, 1996 and 1995
           
                                              (unaudited)
                                          Three Months Ended
                               March 31, 1996       March 31,1995
                              __________________     __________________
         
        Revenues
          Sales                         $ 2,729,647         $  3,912,273
          Contract revenue                    5,710              902,005
                                    ___________           ___________
          Total revenues                  2,735,357            4,814,278  
                                     ___________           ___________
         
        Costs and expenses
          Cost of sales                     903,985              824,936
          Research and development
           expenses                       2,469,605            2,097,350
          Selling, general and
           administrative expenses        1,536,058            1,537,041
          Restructuring expense                -               1,192,971
                                      __________            ___________
        Total costs and expenses          4,909,648            5,652,298
                                      __________           ___________
         
        Operating loss                   (2,174,291)            (838,020)
         
        Other income (expense)
          Interest and dividend income      116,259               78,069
          Interest expense                   (1,801)                (205)
          Other                              65,369               96,129
                                     __________           ____________
                                        179,827              173,993
                                     __________           ____________
         
        Net loss                        ($1,994,464)           ($664,027)
                                     __________          ____________
        Net loss per
          common share                       ($0.08)              ($0.03)
                                     __________          ____________
        Weighted average number
          of common shares
          outstanding
          during the period              26,929,341           25,381,385
                                             
        
         
         
                             ENZON, INC. AND SUBSIDIARIES
                     CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                     Nine Months Ended March 31, 1996 and 1995

                                   
         
                                              (unaudited)
                                          Nine Months Ended
                               March 31, 1996       March 31, 1995
                              __________________     __________________
         
        Revenues
          Sales                        $ 8,080,671           $ 8,071,597
          Contract revenue                 910,446             2,802,005
                                    ___________          ___________
          Total revenues                 8,991,117            10,873,602  
                                   ___________           ___________
         
        Costs and expenses
          Cost of sales                  3,092,562             2,212,162
          Research and development
           expenses                      7,551,075             8,855,700
          Selling, general and
           administrative expenses       4,212,378             5,356,758
          Restructuring expense               -                1,192,971
                                     __________            ___________
        Total costs and expenses        14,856,015            17,617,591
                                      __________           ___________
         
        Operating loss                  (5,864,898)           (6,743,989)
         
        Other income (expense)
          Interest and dividend income     300,338               166,814
          Interest expense                 (12,753)               (3,793)
          Other                          1,386,691               781,713
                                    __________            ____________
                                     1,674,276               944,734
                                    __________            ____________
         
        Net loss                       ($4,190,622)           ($5,799,255)
                                    __________          ____________
        Net loss per
          common share                      ($0.16)               ($0.24)
                                    __________          ____________
        Weighted average number
          of common shares
          outstanding
          during the period              26,529,030           25,083,135
                                            
     


         CONTACT: Enzon, Inc., Piscataway
                  Kenneth J. Zuerblis, (908) 980-4717