Bankruptcy News For:  June 17, 1996

  1. Caldor reports first quarter 1996 results

Return To The InterNet Bankruptcy Library Homepage

Caldor reports first quarter 1996 results


NORWALK, Conn. -- June 17, 1996 -- The Caldor
(NYSE: CLD) today announced its financial results for
        the first quarter ended May 4, 1996.  For the first quarter of 1996,
        net sales were $569 million compared to $564 million for the first
        quarter of 1995.  Comparable store sales declined by 0.7% for the

            The Company's operating loss (results before interest, taxes,
        extraordinary and reorganization items) for the first quarter of
        1996 was $26.1 million versus an operating loss of $4.9 million for
        the first quarter of 1995.  

            The Company's net loss for the quarter was $43.3 million or
        $2.57 per share, compared to a net loss of $14.4 million or $0.86
        per share for the first quarter of 1995.  The results for the first
        quarter of 1996 included reorganization items of $8.8 million,
        principally for professional fees and other bankruptcy related

            Don Clarke, Chairman and Chief Executive Officer of Caldor,
        stated, "Our operating results were better than we had planned for
        the first quarter.  In addition, the Company continues to have
        significant credit availability aggregating approximately $239
        million under our debtor-in-possession bank facility.  We are
        pleased with the substantially improved level of credit support we
        have received from the vendor community since the Chapter 11 filing
        on September 18, 1995."  

            The Company continued to execute its urban/suburban strategy
        having opened four stores in April located in Queens, New York,
        Westbury, Long Island, District Heights, Maryland and Philadelphia,
        Pennsylvania, and a fifth store in May in Edgewater, New Jersey.
        Two additional stores are planned for the remainder of the year, in
        Silver Spring, Maryland and Atlantic Center in Brooklyn, New York.  

            The Caldor Corporation is the fourth largest discount department
        store chain in the U.S., with annual sales of approximately $2.8
        billion and approximately 23,000 Associates.  It currently operates
        171 stores in ten East Coast states, including 12 previously
        announced closed stores.  With a strong consumer franchise in high
        density urban/suburban markets, Caldor offers a diverse merchandise
        selection, including both softline and hardline products.

                      The Caldor Corporation and Subsidiaries
                       Consolidated Statements of Operations

                   (Dollars in thousands, except per share data)
                                    13 Weeks Ended
                                   May 4,    Apr. 29,
                                    1996       1995
        Net sales                     $568,560   $564,250
        Cost of merchandise
           sold                         426,160    407,703
        SG&A expenses, net of
           depreciation and
           amortization                156,532    149,841
        Depreciation and
           amortization                 11,992     11,647
        Operating loss                 (26,124)    (4,941)
        Interest expense, net            8,396     10,087
        Loss before
           reorganization items,
           income taxes and
           extraordinary items         (34,520)   (15,028)
        Reorganization items             8,761
        Loss before
           income taxes and
           extraordinary items         (43,281)   (15,028)
        Income tax benefit                           (5,786)
        Loss before
           extraordinary items         (43,281)    (9,242)
        Extraordinary loss                            (5,164)
        Net loss                      ($43,281)  ($14,406)
        Per Share Amounts:
        Loss before
           extraordinary items          ($2.57)    ($0.55)
        Extraordinary loss                           ($0.31)
        Net loss                        ($2.57)    ($0.86)
        Weighted average common and
           common equivalent shares
           outstanding                   16,857     16,751
        Notes to Consolidated Statements of Operations:
        (1) EBITDAR (Earnings before interest, taxes, depreciation,
        amortization and reorganization) for the 13 weeks ended May 4, 1996
        was a loss of $12.9 million, compared to a profit of $7.0 million
        for the 13 weeks ended April 29, 1995.  
        (2) The net loss for the first quarter of 1995 included an
        extraordinary charge for the early retirement of debt in the amount
        of $5,164 ($0.31 per share).  
                       The Caldor Corporation and Subsidiaries
                              Consolidated Balance Sheets

                                   (Dollars in thousands)
                                             May 4,     Apr. 29    Feb. 3,
                                              1996       1995       1996
        Current assets:
           Cash and cash equivalents  $42,738 $31,863 $25,577
           Accounts receivable          20,645   9,584 18,059
           Merchandise inventories      589,613  648,092 499,948
           Assets held for disposal, net  20,607 25,265
           Refundable income taxes                  3,144 5,380
           Prepaid expenses & other
          current assets                       17,978  15,474   17,047
            Total current assets             694,725    705,013    591,276
        Property and equipment, net 546,197 542,636 551,977
        Debt issuance costs                3,987     3,693 4,674
        Deferred income taxes                      16,626 16,626
        Other assets                          9,936     16,501 9,466
                                               $1,271,471 $1,267,843 $1,174,019
        Current liabilities:
           Accounts payable and
          accrued expenses                  $261,794   $364,208   $227,075
           Other accrued liabilities       54,558     74,193         52,836
           Borrowings under revolving
          credit agreement                   152,500    212,341     40,000
           Current maturities of long-term debt              40,618
            Total current liabilities        468,852    691,360    319,911
        Long-term debt                           269,596    228,040   260,785
        Deferred income taxes                                 7,131
        Other long-term liabilities       26,394  18,433  25,158
        Liabilities subject to compromise        512,913 530,957
        Total stockholders' equity (deficit)      
    (6,284)   322,879      37,208
                                                 $1,271,471 $1,267,843 $1,174,019
        Notes to Consolidated Balance Sheets:
        (1) Certain items previously reported in the accompanying balance
        sheets have been reclassified to conform with the current year's

CONTACT: Wendi Kopsick/Jim Fingeroth,
                 Kekst and Company:  (212) 593-2655
                 Fax report requests:  (800) 711-1288



VANCOUVER, BC, June 17, 1996 /CNW-PRN/ -

         Fiscal Year-End Results - January 31, 1996

             Revenues for the fiscal year ended January 31, 1996, were
        $42,570,941 versus revenues of $43,572,279 in the prior year, a
        decrease of 2%. The net loss for the year was $8,551,043, or 46
        cents per share, versus a loss of $956,150, or 5 cents for the prior
        year. Fourth quarter operating results included $5.4 million of year-
        end provisions for inventory obsolesence, bad debts, restructuring
        charges, and settlement of the Focal Point arbitration lawsuit.

             Revenues from the joystick and GamePad(TM) core products rose
        by 1% in the year ended January 31, 1995.  Ultrasound(TM) product
        revenue decreased by 14% from the previous year.  Delay in delivery
        to market of new Ultrasound products in the fall was in part
        responsible for the revenue decline.

             Gross margins overall decreased to 18.7% from 24.7% in the
        prior fiscal year, largely as a result of year-end inventory
        provisions and adjustments.  Prior to these year-end adjustments and
        provisions, gross margins were 26.3%.

             For the year ended January 31, 1996, total advertising expenses
        were $3,580,551, or 8.4% of revenue, versus $3,598,809, or 8.3% of
        revenues for the prior year. Marketing and sales expenses were
        $2,867,328, or 6.7% of revenues compared to $2,840,983, or 6.5% of
        revenues in the prior year.

             General and administrative expenses were $3,329,588, or 7.8% of
        revenues, versus $2,043,843, or 4.7% of revenues in the prior year.
        Increases were primarily due to legal costs, including Focal Point
        3D Audio defense costs, one-time severance and related costs,
        increased costs associated with improving process controls, the
        addition of senior management, and foreign exchange losses.

             Research and development costs were $1,514,354, or 3.5% of
        revenues, versus $1,361,072, or 3.1% of revenues for the prior year.
        The Company remains committed to invest in this area to support the
        development of new products and technologies.

         Fourth Quarter ending January 31, 1996

             Total revenues for the fourth quarter ending January 31, 1996,
        were $12,417,461, versus $16,408,388 for the same period in 1995, a
        decrease of 24%.  The net loss for the fourth quarter was
        $6,456,624, or 35 cents per share, versus $744,139, or 4 cent per
        share, loss in the fourth quarter of fiscal 1995.  The entire $5.4
        million of year-end provisions for inventory obsolesence, bad debts,
        and restructuring charges are included in the fourth quarter
        operating results.

             Gross profit margins in the fourth quarter were .9% as compared
        to 18.2% for the same period in the previous year, primarily due to
        year-end inventory provisions and adjustments.

             Selling and advertising expenses were $2,007,013 in the fourth
        quarter, or 16.2% of revenues.  In the prior year, selling and
        advertising expenses were $2,155,781, or 13.1% of revenues.

         Annual General Meeting

             The meeting date for the Advanced Gravis Annual General Meeting
        of shareholders has been changed from July 19, 1996, to July 29,
        1996. The location remains The Executive Inn, 4201 Lougheed Highway,
        Burnaby,  BC.

For further information: K. Michael Cooper, President & Chief
        Executive Officer, (604) 431-5020



            NEW YORK, June 17, 1996  - Equitable Bag Co., Inc.
        announced today that the United States Bankruptcy Court for the
        District of Delaware confirmed on Friday, June 14 the joint plan of
        reorganization of Equitable Bag Co., Inc. and its subsidiary,
        clearing the way for its prompt emergence from Chapter 11.  Court
        confirmation of the plan follows overwhelming approval of the plan
        by the company's creditors. The company emerges from Chapter 11 debt
        free, apart from a $40-45 million revolving line of credit for
        working capital and is poised to expand the position it has held
        over its 77-year history as the market leader in the industry.  The
        plan provides that Equitable Bag's pre-petition trade and other
        creditors will receive $.50 on the dollar payable over five years,
        amounting to approximately $4 million.

            Equitable Bag Co. manufactures and distributes customized,
        private label plastic and paper bags and specialty packaging for
        large department store chains, specialty retail chains and mass
        merchandisers, as well as flexible packaging and bags designed for
        mail order and overnight courier companies.  The company has
        manufacturing plants in Florence, Kentucky, and Orange, Texas, and a
        paper mill in Orange, Texas.  As part of its restructuring, the
        company moved its Executive Headquarters from Long Island City, NY,
        to 645 Madison Avenue, New York, N.Y., and its General Offices to
        Florence, KY.  Equitable Bag Co., Inc. had gross sales of
        approximately $100 million last year.

            Upon closing, Jonathan S. Canno, currently President, Chief
        Executive Officer and Chairman of the Board, and a third-generation
        member of the family that founded the company, will continue as CEO
        under a long-term contract and remain Chairman of the Board.
        Jacques Belet, a turnaround specialist also under contract with the
        company, will serve as Chief Operating Officer and will be appointed
        President of the company.

            In a joint statement, Mr. Canno and Mr. Belet said, "Under the
        direction of a strong, new management team headed by a member of the
        family that founded the company and a dynamic turnaround specialist,
        Equitable Bag Co. is not just out of Chapter 11, but in a solid
        position to grow and dominate the market.  We are a leaner and more
        efficient company as a result of the reorganization, having trimmed
        layers of management and reduced headcount by more than 300 people,
        without sacrificing quality or productive capacity."

            Stephen Whitlow, the company's Chief Financial Officer, added,
        "The company has new financial strength as a result of the
        reorganization. The transition from bankruptcy has resulted in a
        stronger balance sheet and reduced debt service.  The company is now
        positioned for growth."

            The company filed for Chapter 11 in May 1995 and quickly reached
        agreement with its creditors on the terms of the approved plan which
        provides that the company's $50 million of 11% Senior Notes due in
        2004 will be exchanged for 1,000,000 shares of Preferred Stock with
        a liquidation preference of $25 per share and approximately 88% of
        the Common Stock of the reorganized company.

CONTACT:  Paul Jensen or Richard Chemela of Kratz & Company, Inc.
        212-979-2700; or Jonathan S. Canno of Equitable Bag Co., Inc.,



            PITMAN, N.J., June 17, 1996  - K-Tron International, Inc.
        (Nasdaq: KTII) today announced the successful refinancing of its
        U.S. bank debt with two new lenders, FINOVA Capital Corporation and
        The Bank of Gloucester County, New Jersey.  K-Tron and its U.S.
        manufacturing subsidiary, K-Tron America, Inc., had been in default
        under a loan agreement with three U.S. banks since early 1995, and
        the proceeds of the new loans were used to repay the outstanding
        debt owed to those banks.  The new loans were made directly to K-
        Tron America, Inc. and consist of a mortgage loan in the amount of
        $2.7 million and a two year secured revolving credit facility with
        maximum availability of $5.7 million.  The debt repaid under the old
        loan agreement was approximately $7.3 million and that loan facility
        has been terminated.

            Robert L. Weinberg, K-Tron's Senior Executive Vice President and
        Chief Financial Officer, said, "The refinancing of K-Tron's U.S.
        bank debt represents another step forward for the Company.  We have
        reported three consecutive quarters of increased profit-ability,
        cash flow remains healthy and our worldwide bank debt decreased by
        $36.9 million from a high of $68.2 million at April 1, 1995, to
        approximately $31.3 million at May 31, 1996."

            K-Tron International, Inc., through its subsidiaries, is a major
        producer of gravimetric and volumetric feeders and related equipment
        for the handling of bulk solids, with facilities and customers
        throughout the world.

CONTACT:  Robert L. Weinberg, Senior Executive Vice President and
        Chief Financial Officer of K-Tron, 609-589-0500