NORWALK, Conn. -- June 17, 1996 -- The Caldor
Corporation (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,
Net sales $568,560 $564,250
Cost of merchandise
sold 426,160 407,703
SG&A expenses, net of
amortization 156,532 149,841
amortization 11,992 11,647
Operating loss (26,124) (4,941)
Interest expense, net 8,396 10,087
income taxes and
extraordinary items (34,520) (15,028)
Reorganization items 8,761
income taxes and
extraordinary items (43,281) (15,028)
Income tax benefit (5,786)
extraordinary items (43,281) (9,242)
Extraordinary loss (5,164)
Net loss ($43,281) ($14,406)
Per Share Amounts:
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
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
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
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
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
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,
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