TCR_Public/960607.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy News For - June 7, 1996



  1. V Band reports second quarter 1996 financial results
  2. U.S. Industries agrees to purchase the ladder operations of Keller Industries for $37.3 million
  3. Chic By H.I.S. 1996 second quarter report





Return to the InterNet Bankruptcy Library Homepage



V Band reports second quarter 1996 financial results


        
            ELMSFORD, N.Y. -- June 7, 1996 -- V Band Corp.
        (Nasdaq/NML:VBAN) reported sales for the second quarter of fiscal
        1996, ended April 30, 1996, of $7,205,000 were slightly lower than
        the $7,293,000 reported in the second quarter of 1995.
        


            For the six months ended April 30, 1996, sales of $15,755,000
        were $2,162,000, or 16 percent higher than the $13,593,000 reported
        for the same period of 1995.  This increase in sales was
        attributable primarily to an increase in sales of the company's
        eXchange Phone, Power Deck and DXi products.
        


            Equipment sales of $5,835,000, in the second quarter of 1996,
        represent a $153,000 decrease, or 3 percent from the equipment sales
        of $5,988,000 in second quarter of 1995.  For the six months ended
        April 30, 1995, equipment sales of $13,147,000 were $2,256,000, or
        21 percent higher than the $10,891,000 reported for the same period
        of 1995.  Sales from the company's service business were $1,370,000
        for the second quarter of 1996, an increase of 5 percent, compared
        to $1,305,000 for the second quarter of 1995.  Service sales for the
        six months ended April 30, 1996, of $2,608,000 were $94,000, or 3
        percent, lower than the $2,702,000 reported in 1995.
        


            The net loss reported for the second quarter ended April 30,
        1996, was $344,000, or 6 cents per share as compared to a net loss
        of $1,272,000, or 24 cents per share, for the second quarter of
        1995.  The net loss reported for the six months ended April 30,
        1996, was $276,000, or 5 cents per share, as compared to a net loss
        of $3,622,000, or 68 cents per share, for the same period in 1995.
        


            The improvement in operating results for the three and six
        months ended April 30, 1996, as compared to the same periods for
        fiscal 1995 were primarily attributable to improved gross margins
        and reduced operating expenses as a result of the company-wide
        restructuring initiative undertaken in fiscal 1995, which included
        out-sourcing of the company's manufacturing process and the
        reorganization of the company's management.
        


            V Band is a leading supplier of instant access voice
        communication systems.  These systems include sophisticated
        communications workstations, switching equipment, peripheral
        products, project management, technical services and WAN solutions.
        V Band products and services are used worldwide by financial
        services organizations for the trading of stocks, bonds and other
        financial instruments.  Other industries served include the mission
        critical communication requirements of the electric power industry
        and emergency services providers.


        
                             V BAND CORP.
                           Financial Summary

                 (in thousands, except per share data)
        
                                        Three months ended April 30,
                                            1996            1995
Sales  
Equipment                                   $  5,835        $  5,988
Service                                         1,370           1,305
Total Sales                                  $  7,205        $  7,293
        
Net income (loss)                            $   (344)       $ (1,272)
        
Average shares outstanding                      5,328           5,323
        
Net income (loss) per share                  $   (.06)       $   (.24)    
        

                                         Six months ended April 30,
                                          1996            1995
Sales
Equipment                                 $ 13,147        $ 10,891
Service                                          2,608           2,702
Total Sales                                   $ 15,755        $ 13,593
        
Net income (loss)                             $   (276)       $ (3,622)
        
Average shares outstanding                       5,328           5,322
        
Net income (loss) per share                   $   (.05)       $   (.68)   


        CONTACT: V Band Corp., Elmsford
                  Edward Luboja, Marketing Communication Manager,
                  914/789-5050
                  Mark R. Hahn, CFO, 914/789-5017
        

U.S. Industries
agrees to purchase the ladder operations of Keller Industries for $37.3
million



            LONDON and ISELIN, N.J. -- June 6, 1996 -- U.S.
        Industries, Inc. (NYSE-USI) announced today that an affiliate of its
        Ames garden tool company has signed an agreement to purchase the
        ladder operations of Keller Industries, Inc. for $37.3 million in
        cash plus the assumption of certain liabilities.
        


            Keller, a privately-held company based in Fort Lauderdale,
        Florida, is the second largest manufacturer and marketer of ladders
        in the United States.  Keller's ladder revenues for its fiscal year
        ended July 31, 1995, totaled approximately $71 million with
        operating income of $7.5 million.  The Company anticipates that
        substantially all of the purchase price will be accounted for as
        goodwill.  The United States Bankruptcy Court for the District of
        Delaware, under whose supervision Keller Industries, Inc. has been
        operating in Chapter 11 since April 2, 1996, approved the
        transaction today.  Closing is subject to certain governmental
        approvals but is expected to occur within about thirty days.  
        


            David H. Clarke, Chairman and Chief Executive Officer of U.S.
        Industries, said, "We are delighted to see Ames make this purchase
        which is part of our overall strategy to grow our core businesses by
        strategic acquisitions.  As the acquisition will be completed late
        in our fiscal year, we expect it to only be marginally accretive
        this year but expect a more positive impact in 1997."  
        


            Rick E. Keup, President and Chief Executive Officer of Ames,
        stated, "We are excited at the prospect of owning the second largest
        ladder manufacturer in the U.S. Keller has high brand name
        recognition, a strong reputation for product excellence and channels
        of distribution similar to Ames.  We look forward to working with
        current management of Keller to strengthen their position in the
        home improvement marketplace."  
        


            Keller Industries, founded in 1951, designs, manufactures and
        assembles ladders at its facilities in Swainsboro, Georgia, Merced,
        California, and Milford, Virginia.  Its products include
        residential, commercial and specialty ladders.  
        


            Ames, a subsidiary of U.S. Industries, is the leading
        manufacturer in the United States of spring and winter tools,
        including shovels, long handled tools, wheelbarrows, spreaders and
        other hand tools.  
        


            U.S. Industries is a diversified industrial management
        corporation.  Its companies include such well known businesses as
        Jacuzzi, Ames garden tools, Ertl toys, Rexair vacuum cleaners,
        Lighting Corporation of America, EJ Footwear, Garden State Tanning
        and Tommy Armour Golf.  
        


        CONTACT: U.S. Industries, Iselin
                 Diana Burton, 908/767-2255



Chic By H.I.S. 1996 second quarter report



            NEW YORK -- June 7, 1996 -- Chic By H.I.S. Inc.
        (NYSE:JNS) today reported that net income for the second quarter
        ended May 4, 1996, was $675,000 or 7 cents per share.
        


            Net income for the second quarter last year was $2,375,000 or 24
        cents per share.
        


            As previously announced, the company took a non-cash
        restructuring charge of $15 million primarily attributable to the
        continuing downturn in the retail market.  This charge includes the
        closing of certain manufacturing facilities and an accompanying
        reduction in the work force.  The company believes that these
        actions will result in cost savings to the company in excess of $3.6
        million over the next 12 months.


        
                         CHIC BY H.I.S. INC.
                           Financial Table

        
                                       Quarter Ended May 4
                                      1996            1995

Net sales                         $84,344,000    $107,405,000
Gross profit                       18,530,000      21,107,000
Add:
Licensing income                    1,279,000       1,322,000
Less:
Sell., gen. & admin. expenses      16,379,000      17,059,000
Operating income                   3,430,000       5,370,000
Less:
Interest expense                    1,618,000       1,539,000
Pretax income                       1,812,000       3,831,000
Less:
Taxes                               1,137,000       1,456,000
Net income                            675,000       2,375,000
Outstanding shares                  9,753,868       9,753,868
E.P.S. - net income                     $0.07           $0.24
        
                                      26 Weeks Ended May 4
                                      1996            1995

Net sales                        $155,173,000    $183,711,000
Gross profit                       34,703,000      37,990,000
Add:
Licensing income                    2,898,000       2,524,000
Less:
Sell., gen. & admin. expenses      29,794,000      31,567,000
Restructure charge                 15,000,000              --
  Operating income (loss)          (7,193,000)      8,947,000
Less:
Interest expense                    3,481,000       2,587,000
Pretax income (loss)              (10,674,000)      6,360,000
Less:
Taxes                              2,423,000       2,561,000
Net income (loss)                 (13,097,000)      3,799,000
Outstanding shares                  9,753,868       9,753,868
E.P.S. - before restructuring
  charge                                $0.20           $0.39
E.P.S. - net income (loss)             ($1.34)          $0.39


        CONTACT: Chic By H.I.S. Inc., New York
                 Cindy Mui, 212/302-6400, ext. 211