LANSING, Mich., June 21, 1996 - Neogen Corporation
(Nasdaq: NEOG) announced today a restructuring program for certain
Company operations that resulted in charges of approximately
$695,000 for the fourth quarter. Final numbers for the current
fiscal year ended May 31 won't be available until mid-July, but the
restructuring charges will cause Neogen to report a loss for the
fourth quarter and year.
Neogen has decided to discontinue its electronic and predictive
instrument operations. Neogen will also reorganize sales and
marketing efforts for veterinary instruments. The restructuring
program is designed to better position the company over the long-
term to compete more efficiently and increase market share.
"The restructuring program will place Neogen in a better
position to improve our growth in fiscal 1997 and beyond," said
James Herbert, Neogen president and CEO. "We are establishing a
sales group for veterinary instruments following the same successful
pattern as our sales teams for diagnostic test kits," Herbert added.
The new sales group will be located in Lansing, Michigan for better
communications with marketing personnel and to take advantage of
certain economies of scale.
Lon Bohannon, Neogen's chief financial officer, stated that
"Discontinuing our electronics and predictive instruments operations
will enable Neogen to redirect manpower and financial resources to
our more profitable and faster growing diagnostics business. It
should also have a direct positive effect on future earnings since
the predictive instrument operations have been generating losses for
several years."
Neogen is a Lansing, Michigan based company that develops and
markets products to control residues and improve quality in the
food, agriculture, pharmacologics and environmental industries.
CONTACT: Lon Bohannon or Shada Biabani of Neogen, 517-372-9200
TUSTIN, Calif. -- June 21, 1996 -- Cerplex
(NASDAQ:CPLX), a leading provider of electronics parts repair and
logistics services, Friday announced the decision to close its
Richardson and Carrollton, Texas, operations, effective Aug. 21.
The operations had net sales in 1995 of $13.7 million, showing a
net loss of $5.2 million, including a $3.2 million write-off
associated with SpectraVision
activity.
First quarter 1996 net sales were $3.1 million, with losses of
approximately $500,000. Shut-down costs, including facilities,
leasehold improvements, inventories and other operating expenses are
currently being analyzed, the cost of which will be determined and
taken in the third quarter ending Sept. 30, 1996.
``The 130 employees will be given a 60-day notice,'' said James
T. Schraith, president and chief executive officer. ``Cerplex
acquired the manufacturing and repair arm of SpectraVision over two
years ago. Since that time, SpectraVision has been the largest
customer for these operations.
``Unfortunately, SpectraVision filed for protection under
Chapter 11 of the U.S. Bankruptcy Code and, despite large unpaid
receivables and unprofitable operations, we were obligated under the
law to continue performing under existing terms of the contract.''
``This move is consistent with our strategic plan,'' continued
Schraith, ``in that we are closing contract manufacturing and
focusing on three specific areas: product repair and
remanufacturing, parts service and logistics, and knowledge-based
support systems.''
Philip E. Pietrowski, senior vice president, North American
operations, noted: ``We have plans to move the existing multi-
vendor services from Carrollton, Texas, to our Lawrence, Mass., and
Livermore, Calif., operation. This consolidation is consistent with
the Cerplex philosophy of maximizing efficiency at our other major
sites and improving profitability.''
About Cerplex
The Cerplex Group is a leading independent provider of
electronics parts repair and logistics services. The company has
developed extensive capabilities in the repair, refurbishment,
upgrade and testing of a wide range of electronic equipment for
computers and peripherals, telecommunications and office automation
markets.
The company's key service offerings are depot repair, logistics
services and spare parts management and sales, as well as a variety
of ancillary services. The company's extensive network of domestic
and European facilities enables it to service diverse needs of
leading electronics equipment manufacturers.
The company's headquarters is in Tustin, with service facilities
throughout the United States and Europe. Visit Cerplex's home page
at www.cerplex.com.
CONTACT: The Cerplex Group Inc., Tustin
James T. Schraith, 714/258-5681
e-mail: jschrait@cerplex.com
or
Phil Pietrowski Sr., 714/258-5144
e-mail: ppietrow@cerplex.com
or
Bruce Nye Sr., 714/258-5603
e-mail: bnye@cerplex.com
or
Ray Robidoux Sr., 714/258-5644
e-mail: rrobidou@cerplex.com
DALLAS, TX -- June 21, 1996 -- href="chap11.search.html">Search Capital Group,
Inc. today issued its financial statements for the period ended
March 31, 1996. Recently, following the completion of the
reorganization of its subsidiaries, Search adopted a new fiscal year
ending March 31. Search's previous fiscal year ended September 30;
therefore, the financial results herein reported are for the six
month transition period from September 30, 1995 to March 31, 1996
including proforma balance sheet information for some subsequent
events that occurred on April 2, 1996.
"After eighteen difficult months we have achieved success in
restructuring Search and its subsidiaries. Our strong balance sheet
position at March 31, 1996, reflects this success with $33 million
in equity and $21.6 million in unrestricted cash balances and
presents a solid foundation from which we can now pursue internal
growth, acquisitions and earnings," stated George C. Evans,
Chairman, President and CEO of Search, "After losses of $48 million
over the last two and one-half years, preliminary results for April
and May 1996 are promising, showing a modest profit before
dividends, but we still need to increase the loan portfolio to
provide an adequate earnings base for Search."
At March 31, 1996, total assets were $37.3 million before a pro
forma adjustment of $3.8 million which increased total assets to
$41.1 million, compared to total assets of $49.9 million at
September 30, 1995. Assets at March 31, 1996, include unrestricted
cash balances of $17.8 million, which increase to $21.6 million
after pro forma adjustments, net contracts receivable of $30.7
million before an allowance for credit losses of $13.3 million,
43.3% of the net contracts receivable. At September 30, 1995, there
was only $442,000 in unrestricted cash balances, $8.1 million in
restricted cash balances and net contracts receivable of $53.6
million before an allowance for credit losses of $18.6 million,
34.8% of net contracts receivable.
At March 31, 1996, total liabilities were only $10.3 million
before pro forma adjustments which reduced total liabilities to $8.0
million, a significant decrease from total liabilities of $75.6
million at September 30, 1995. Total liabilities at March 31, 1996,
included $7.4 million for accounts payable (primarily amounts due as
part of the reorganization) and $688,000 for accrued settlements.
At September 30, 1995, liabilities included $69.3 million due
noteholders of the reorganized subsidiaries, $1.1 million due under
a line of credit, accrued settlement and restructuring expenses of
$3.1 million and accounts payable of $2.1 million.
For the six months ended March 31, 1996, Search reported a
consolidated net loss of $3.0 million, $0.29 per share, compared to
a consolidated net loss of $20.1 million, $2.25 per share, for the
year-ended September 30, 1995. The loss for the six months ended
March 31, 1996, was comprised of a loss of $11.4 million, $1.12 per
share, before an extraordinary gain from discharge of debt of $8.7
million, $0.83 per share, from the reorganization of its
subsidiaries and less dividends of $327,000. For the year ended
September 30, 1995, the consolidated net loss of $20.1 million was
comprised of a loss of $19.9 million and dividends of $240,000.
Results for the six month period ended March 31, 1996, include
net interest income of $2.2 million compared to net interest income
of $2.3 million for the year ended September 30, 1995. The
provision for credit losses was $5.0 million for the six months
ended March 31, 1996 versus $3.1 million for the year ended
September 30, 1995. Operating expenses totaled $8.6 million for
the six months ended March 31, 1996, including $535,000 for
settlement expenses. For the year ended September 30, 1995,
operating expenses totaled $19.0 million including $3.2 for
reorganization and settlement expenses.
In August 1995, eight of Search's subsidiaries, but not Search
itself, filed for bankruptcy reorganization. Search was a proponent
of the subsidiaries joint plan of reorganization (Joint Plan). The
Joint Plan was confirmed by the Bankruptcy Court on March 4, 1996,
and became effective March 15, 1996. Certain transactions related
to that reorganization were not completed until April 2, 1996, but
are included in the proforma balance sheet of Search as if the
transactions were effective March 31, 1996. Under the Joint Plan,
assets of the bankrupt subsidiaries were transferred to Search and
the amounts due noteholders of the subsidiaries were canceled. The
noteholders receive either cash payment or Search stock in exchange
for the cancellation of their notes.
Search Capital Group, Inc. is a consumer finance company
engaging in the purchase, financing and servicing of non-prime
automobile installment loans. Search is also initiating non-auto
consumer finance operations. Search common shares and its 9%/7%
convertible preferred shares trade publicly and are reported on the
Over-the-Counter bulletin board under the symbols "SRCG" and
"SPGHP", respectively.
SEARCH CAPITAL GROUP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
($000's)
March 31, 1996 September 30,
1995
ASSETS Historical Pro forma
Gross contracts
receivable $ 37,086 $ 37,086 $ 66,677
Unearned interest (6,435) (6,435) (13,106)
Net contracts receivable 30,651 30,651 53,571
Allowance for credit
losses (13,353) (13,353) (18,623)
Loan origination costs 3,984 3,984 3,754
Amortization of loan
origination costs (3,578) (3,578) (2,937)
Net contract receivables -
after allowance for credit
losses & other costs 17,704 17,704 35,765
Cash and cash equivalents 17,817 21,582 442
Restricted cash - - 8,105
Vehicles held for resale 566 566 601
Deferred note offering
cost, net - - 3,062
Property and equipment, net 1,062 1,062 1,306
Other assets, net 197 197 641
Total assets $ 37,346 $ 41,111 $ 49,922
LIABILITIES AND STOCKHOLDERS' EQUITY (CAPITAL DEFICIT)
Lines of credit $ 2,283 - $ 1,058
Accrued settlements 688 688 2,912
Accrued restructuring - - 214
Accounts payable and
other liabilities 7,356 7,356 2,051
Accrued interest 15 - 2
Liabilities 10,342 8,044 6,237
Prepetition notes payable
and accrued interest -
subject to compromise - - 69,320
Stockholders' Equity (Capital Deficit)
Preferred stock 154 174 4
Common stock 259 300 117
Additional paid-in capital 81,784 87,786 26,766
Accumulated deficit (54,043) (54,043) (51,372)
Treasury stock (1,150) (1,150) (1,150)
Total stockholders'
equity (capital deficit) 27,004 33,067 (25,635)
Total liabilities and
stockholders' equity
(capital deficit) $ 37,346 $ 41,111 $ 49,922
SEARCH CAPITAL GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
($000's except per share amounts)
Six Months Ended Year Ended
March 31, 1996 September 30, 1995
Interest revenue $3,541
$13,472
Interest expense 1,306
11,205
Net interest income (loss) 2,235
2,267
Provision for credit losses 4,982
3,128
Net interest income (loss) after
provision for credit losses (2,747)
(861)
General and administrative expense 8,098
15,881
Settlement expense 535
2,837
Reorganization expense
- 315
Operating and other expense 8,633
19,033
Loss before extraordinary item (11,380)
(19,894)
Extraordinary gain on discharge
of debt 8,709
-
Net loss (2,671)
(19,894)
Preferred stock dividends (327)
(240)
Net loss attributable to common
stockholders $(2,998)
$(20,134)
Loss per common share before
extraordinary items $(1.12)
$(2.25)
Gain on extraordinary items 0.83
-
Loss per common share $(0.29)
$(2.25)
Weighted average number of common
shares outstanding 10,447,000
8,967,000
CONTACT: Bill Robertson
Stern, Nathan & Perryman
214/373-1601
or
George C. Evans
Chairman, President & CEO
Search Capital Group, Inc.
214/965-6000