GRAND PRAIRIE, Texas -- June 13, 1996 -- Oakhurst
Company (NASDAQ: OAKC) today announced results of operations for the
fourth quarter and fiscal year ended February 29, 1996.
There was a fourth quarter loss from continuing operations of
$958,000 on revenues of $9.2 million, compared with a loss from
continuing operations of $257,000 on revenues of $12.1 million in
the prior fourth quarter.
For the year, there was a loss from continuing operations of
$4.0 million on revenues of $47.3 million, compared with a profit of
$819,000 on revenues of $43.1 million in fiscal 1995. Of the
current year loss, a net income tax charge of $2.0 million reflects
management's re-evaluation of tax loss carryforwards, and $439,000
is attributable to goodwill amortization related to acquisitions
made in 1994.
Although revenues increased by $4.2 million, this was due to the
effect of including Dowling's Fleet Service and Puma Products for
all of the current year; these companies were acquired in 1994 and
their results were included for only part of the prior fiscal year.
However, on a comparative basis, both of these companies suffered
lower sales in fiscal 1996 than in their prior year. The Company's
existing businesses also reported lower revenues. Steel City
Products lost its two largest customers in the second half of the
fiscal year, contributing to a sales decrease of $2.7 million and
Harry Survis AutoCenters reported a 15% revenue decline.
Commenting on the results, Mark Auerbach, Oakhurst's Chairman
and CEO, noted that significant strides had been accomplished in
addressing the Company's operating problems.
Auerbach said: "Although the loss of its two largest customers
caused a $1.2 million decrease in its operating profits in fiscal
1996, in the fourth quarter Steel City achieved a significant
decrease in expenses (including personnel reductions and salary
cuts) so that, before bad debt expense of about $150,000, its
operating loss for the quarter was lower than in the fourth quarter
last year.
"In the first quarter of fiscal 1997 Steel City continued to
suffer from the loss of these two customers, but achieved an
increase of about 20% in sales to other customers, mainly by adding
three large customers since last year. Also in the first quarter,
Steel City established its pet products division; first shipments
are not expected to take place until the second quarter, but initial
customer reaction has been favorable."
Auerbach continued: "Following a very difficult fiscal 1996,
when it reported an operating loss compared with a profit in the
prior year, Dowling's sales have shown strong improvement in the
first quarter of fiscal 1997. Its Bridgeport, CT facility reported
a 145% sales increase reflecting the successful defense of this
market against aggressive competition last year; the new competitor
has since exited the market. Other facilities reported a 25% sales
increase due to stronger demand and a larger market share, and a new
Philadelphia warehouse was opened in March. The Company also
settled, on favorable terms, an arbitration proceeding related to
the acquisition of Dowling's in fiscal 1996.
"Puma also incurred an operating loss in fiscal 1996 compared
with a profit in the prior year. In the first quarter of fiscal
1997 it added van wood kits to the existing light truck line, and
has seen some improvement in the demand from converters. Sales of
non-wood accessories continued to increase."
Auerbach said that, based on preliminary data, management
expects a much smaller consolidated net loss in the first quarter
than in the fourth quarter of last year, but because last year's
first quarter included sales of more than $3 million to the two
Steel City customers since lost, the first quarter loss is expected
to be somewhat larger than last year.
To support its restructuring efforts and ensure sufficient
working capital for future growth, the Company closed on a new
revolving credit facility and a new term loan facility in March,
1996, providing for a substantial increase in working capital
availability, and the terms of certain other debt were extended.
OAKHURST COMPANY, INC. & SUBSIDIARIES
CONDENSED CONSOLIDATED RESULTS OF OPERATIONS
(dollar amounts in thousands, except per share data)
Three months Thirteen weeks
Ended Ended Fiscal year ended
Feb. 29, Feb. 28, Feb. 29, Feb. 28,
1996 1995 1996 1995
Sales $ 9,216 $ 12,053 $ 47,339 $ 43,142
Income (loss) from
continuing operations
before income taxes (1,037) (273) (2,158) 1,442
Income taxes:
Current tax
benefit (expense) 79 (91) 115 (155)
Deferred tax benefit
(expense) 107 (2,000) (468)
Income (loss) from
continuing operations (958) (257) (4,043) 819
Discontinued operations,
net 65 18 65 90
Net (loss) income $ (893) $ (239) $ (3,978) $ 909
Per common share amounts:
Income (loss) from
continuing operations $(0.30) $(0.08) $ (1.27) $ 0.27
Income from discontinued
operations 0.02 0.02 0.03
Net (loss) income $ (0.28) $ (0.08) $ (1.25) $ 0.30
Weighted average number
of shares outstanding used
in computing per share
amounts 3,195,235 3,182,734 3,194,021 3,076,801
SALT LAKE CITY, June 13, 1996 - Bonneville Pacific
Corporation, through its Chapter 11 Bankruptcy Trustee (Roger G.
Segal), announces today that a settlement has been reached with
Raymond L. Hixson, who at various times, was Bonneville Pacific
Corporation's Chief Executive Officer, Director and Chairman of the
Board.
The settlement provides for payment by Mr. Hixson to Bonneville
Pacific Corporation of the total sum of One Million and no/100
dollars ($1,000,000.00) plus other considerations. Mr. Hixson has
also agreed to meet with the Trustee and his counsel in order to
disclose his knowledge about all matters related to Bonneville
Pacific Corporation.
The settlement is conditioned upon approval by the United States
Bankruptcy Court (the Honorable John H. Allen).
CONTACT: Roger G. Segal, Trustee, of Cohne, Rappaport & Segal,
801-532-2666
NEW YORK, June 13, 1996 - Keene Corporation (OTC Bulletin
Board: KEENQ) announced that its plan of reorganization has been
confirmed. The confirmation order was signed on June 12, 1996, by
United States Bankruptcy Judge Stuart M. Bernstein and United States
District Court Judge Michael B. Mukasey of the Southern District of
New York.
Under the terms of the plan of reorganization, Reinhold
Industries, Inc., Keene's composites manufacturing subsidiary, will
be merged into Keene to form New Reinhold. New Reinhold will emerge
from Chapter 11 as the reorganized entity. In addition, a
Creditors' Trust will be formed as the vehicle exclusively
responsible for the resolution of all present and future asbestos-
related personal injury and property damage claims asserted against
Keene. Fifty-one percent (51%) of the equity of New Reinhold and
substantially all of Keene's remaining assets will be distributed to
the Creditor's Trust. Forty-nine percent (49%) of the equity of New
Reinhold will be distributed to Keene's shareholders of record as of
the close of business on June 30, 1996. New Reinhold will have the
benefit of a permanent channeling injunction to protect it from all
of Keene's asbestos-related personal injury and property damage
claims.
Keene's plan of reorganization is expected to go effective
within 60 days. The resolution of Keene's asbestos-related Chapter
11 case was accomplished in the shortest amount of time and with the
largest recovery to existing equity of any asbestos-related
bankruptcy case to date. In addition, Keene's case is the first
Chapter 11 case in the country to meet the requirements of the 1994
amendment to the Bankruptcy Code so as to gain the benefits of the
protection of a permanent channeling injunction with respect to
present and future asbestos-related liabilities.
CONTACT: Janice B. Grubin, Esq., or Edward S. Weisfelner, Esq., of
Berlack, Israels & Liberman LLP, 212-704-0100