SEATTLE, July 12, 1996 - Ernst Home Center, Inc. (Nasdaq:
ERNS) announced today a series of steps to restructure the 103-year
old retailer around a core group of stores that have been
historically profitable. Ernst and its wholly owned subsidiary,
EDC, Inc., each filed voluntary petitions for protection under
Chapter 11 of the Bankruptcy Code in the United States Bankruptcy
Court for the District of Delaware. The decision to file for
bankruptcy protection was prompted by recent operating losses and
Ernst's need to close unprofitable stores.
In connection with the filing, Ernst indicated that it will
close twenty-five of its eighty-six stores. A substantial portion
of the inventory in the stores will be transferred to Ernst's
ongoing locations and the remaining portion will be liquidated.
Employees in the affected stores will be reassigned to other stores
to the extent possible. Ernst also intends to take additional steps
to streamline its operations, reduce overhead, renegotiate or reject
unfavorable leases and improve operating efficiencies.
Ernst has obtained an $80 million debtor-in-possession financing
commitment from Congress Financial, Inc. (Northwest). Subject to
Bankruptcy Court approval, Ernst expects to use these funds to meet
immediate and future inventory needs and for general working capital
purposes.
Hal Smith, Ernst's president and chief executive officer said:
"The restructuring will allow us to concentrate on the core group of
stores that have historically been among our most profitable. This
step will enable Ernst to be a leaner, stronger company, fully
focused on serving our customers and better able to compete in the
current retail environment.
"This decision was a very difficult step for us to take. We
carefully considered what effect such a reorganization would have on
our employees, customers, suppliers, creditors, stockholders and the
communities in which we operate, and on balance this was the best
course available to us.
"From an operating perspective, we expect this process to have a
positive impact on our business because it will allow us to operate
our retail stores in a manner which will benefit everyone. The
debtor-in-possession loan facility will enable Ernst to replenish
its inventory and allow us to focus on serving our loyal customers.
Daily operations and transactions which occur in the ordinary course
of business will continue as usual."
Ernst is a major home improvement, hardware and garden retailer
currently operating eighty-six stores in nine states. Ernst serves
the "do-it-yourself" and convenience oriented customer, offering a
comprehensive selection of home improvement products, with
particular emphasis in the lawn, garden and nursery categories.
Ernst's first store was opened in 1893 in downtown Seattle,
Washington.
CONTACT: investors, Douglas Sherk or Chris Danne of Morgen-Walke
Associates, 415-296-7383, for Ernst Home Center; or media, Art
Merrick of the The Rockey Company, 206-448-7641, for Ernst Home Center
MIAMI SHORES, Fla., July 12, 1996 - Call Now, Inc. (OTC
Bulletin Board: CNOW) announced today that it has entered into an
agreement with certain of the senior secured creditors of Retama
Development Corporation to acquire approximately 93.9% of the senior
secured debt in the form of industrial revenue bonds of Retama
Development Corporation for $10,300,000 cash. Retama Development
Corporation owns Retama Park Racetrack situated on approximately 230
acres located in suburban San Antonio, Texas. Retama Development
Corporation is seeking reorganization under Chapter 9 of the
Bankruptcy Act. Retama Park Racetrack opened for its 95-day 1996
season in April 1996 and is currently operating a full card of
thoroughbred races. The track also offers simulcast betting on
races from other tracks on a year- round basis.
Call Now anticipates that it will become the major participant
in the reorganization plan of Retama Development Corporation and
will seek to acquire control of Retama Park Racetrack.
Under its agreement, Call Now has paid $3,000,000 cash toward
the purchase of the bonds and is required to pay an additional
$7,300,000 as final payment by September 20, 1996 in order to
complete the purchase of the bonds with an original principal value
of $52,274,000.
CONTACT: William M. Allen, President, 305-751-5115, or Joel
Bernsten, 305-751-3008, both of Call Now, Inc.
WILMINGTON, Del., July 12, 1996 - The Columbia Gas
System, Inc. (NYSE: CG) today announced that improved operating
results in each of its business segments resulted in adjusted second
quarter net income of $21.2 million, or 39 cents per share. This
compares to an adjusted net loss of $4.3 million, or 9 cents per
share, during the same period in 1995. The $25.5 million improvement
was due primarily to higher rates now in effect, colder weather and
higher wellhead prices for natural gas.
Reported net income in the current quarter was $8.2 million, or
15 cents per share, reflecting an after-tax charge of $18.6 million
for severance and benefits expenses generated by Project Phoenix, an
ongoing System-wide reengineering program, that was partially offset
by a $5.6 million after-tax reduction in the reserve for the loss on
the sale of Columbia's southwest oil and gas properties that was
recorded last year. Reported net income in the second quarter of
1995 was $30.9 million, or 61 cents per share, which included $7.8
million in bankruptcy-related charges and the beneficial result of
not recording $43 million of interest on prepetition debt during the
Chapter 11 proceedings.
Columbia System Chairman Oliver G. Richard III said the current
quarter's strong financial showing was the result of higher rates
that Columbia's transmission and distribution subsidiaries now have
in effect, increased throughput due to 13 percent colder
temperatures, and Appalachian natural gas prices that were 33
percent higher than last year.
He emphasized that each of Columbia's business segments "has
shown improved operating results in the two quarters since emerging
from Chapter 11 in late 1995. Adjusted net income of $172.5 million
for the first half of 1996 is up 90% over adjusted net income for
the same period last year. This pattern emphasizes Columbia's sound
financial position, the underlying strength of its operating
companies and their ability to meet the challenges of today's
competitive energy marketplace."
Richard said that the severance and benefit charges recorded in
the second quarter are the result of implementing Phase I
recommendations of Project Phoenix, which was launched in 1995 to
streamline operations and services and make them more efficient and
cost-competitive. The Phoenix studies, which thus far have reduced
staffing throughout the Columbia System by almost five percent, are
still underway. Phase II is expected to be completed and
substantially implemented by year end with some additional charges
to earnings likely.
Second Quarter Operating Results
Second quarter operating income for the transmission segment was
$38.8 million, an increase of $2.9 million over the same period in
1995. The increase resulted from higher rates, which Columbia Gas
Transmission Corp. began collecting subject to refund in February
1996, that permit recovery of operating costs that have increased
since the company's last rate case in 1991. Costs associated with
the segment's ongoing reengineering program reduced the positive
effect of the higher rates by $6.1 million.
The distribution segment had a second quarter operating loss of
$3 million compared to a $7.9 million operating loss in the same
quarter last year. The current period includes $15.1 million of
expense for reengineering initiatives being implemented by the five
distribution companies to make their operations more efficient and
customer-oriented. Absent this expense, the distribution units would
have had operating income of $12.1 million due largely to higher
rates in effect in four states and 13 percent colder temperatures
that increased throughput. In 1995, warm temperatures and higher
operating costs contributed to the segment's operating loss.
The oil and gas segment had operating income of $6.4 million in
the current quarter compared to a loss of $200,000 in 1995. The
improvement was principally due to Appalachian gas prices that were
33 percent higher than during the previous period. The loss in the
second quarter of 1995 included the results from southwest oil and
gas operations which were sold effective Dec. 31, 1995.
The other energy segment had an operating loss of $3.1 million
in the current quarter primarily due to $7.4 million in
reengineering- related costs. Absent these costs the segment had
operating income of $4.3 million, compared to $1.7 million last
year. The improvement reflects increased gas marketing activities
and higher propane margins and sales.
In addition to the strong operating results, Richard listed
several key developments involving Columbia subsidiaries that
occurred during the quarter:
Six Month Results
Colder temperatures and higher rates led to adjusted net income
of $172.5 million, or $3.28 per share, during the first half of
1996. This was a 90 percent increase over adjusted net income of
$90.9 million, or $1.80 per share, during the same period in 1995.
Reported net income for the current period was $159.5 million,
or $3.04 per share, as compared with $159.7 million, or $3.16 per
share, last year. The current period's results were reduced by the
net effect of the unusual items recorded in the second quarter.
Reported income for 1995 benefitted from not recording $83.4 million
in after-tax interest expense on prepetition debt obligations due to
the Chapter 11 proceedings.
The transmission segment's operating income during the current
period was $124.4 million. The increase of $11.9 million over 1995
was due primarily to higher rates. Partially offsetting the
positive effect of the higher rates were the costs incurred in the
second quarter to streamline operations and the effect of $5.3
million in revenues from exit fees that Columbia Gulf Transmission
recorded in the first quarter of 1995.
The distribution segment's operating income of $165 million for
the first half of 1996 represents an increase of $56.7 million over
last year. This reflects the effects of higher rates now in effect
and increased throughput due to colder temperatures. These
improvements were tempered by the reengineering costs recorded in
the second quarter.
The oil and gas segment had operating income of $17.2 million in
the current period because wellhead prices for Appalachian natural
gas prices were 35 percent higher than last year. This compared to
an operating loss of $300,000 last year. The 1995 loss included
results from Columbia's southwest oil and gas subsidiary, which has
been sold. The average price for Appalachian natural gas production
for the first half of 1996 was $2.98 per thousand cubic feet, an
increase of 78 cents over 1995.
Colder weather also benefited the other energy segment,
resulting in increased natural gas marketing activities and higher
propane margins and sales. These improvements were tempered by the
reengineering expenses recorded in the second quarter. The net
result was operating income of $13.6 million, which was $4 million
higher than during the same period in 1995.
The Columbia Gas System, Inc., is one of the nation's largest
natural gas systems. The publicly traded debt issues of Columbia
carry investment grade ratings. Its operating companies are engaged
in all phases of the natural gas business, provide marketing and
fuel management services and generate electric power, directly or
indirectly, serving more than seven million gas users in 15 states
and the District of Columbia. Information about Columbia and its
operating units is available on the World Wide Web at
" target=_new>http://www.columbiaenergy.com">http://www.columbiaenergy.com
THE COLUMBIA GAS SYSTEM, INC.
Summary of Financial Operating Data
Three Months Six Months
Ended June 30, Ended June 30,
1996 1995 1996 1995
Income Statement Data
($ millions)
Total Operating Revenue 582.4 454.6 1,785.4 1,485.3
Net Income 8.2 30.9 159.5 159.7
Operating Income (Loss)
By Segment:
Transmission 38.8 35.9 124.4 112.5
Distribution (3.0) (7.9) 165.0 108.3
Oil and Gas 6.4 (0.2) 17.2 (0.3)
Other Energy (3.1) 1.7 13.6 9.6
Corporation (3.1) (2.6) (6.0) (3.3)
Total 36.0 26.9 314.2 226.8
Per Share Data:
Earnings on Common Stock $0.15 $0.61 $3.04 $3.16
Average Common Shares
Outstanding (millions) 55.0 50.6 52.5 50.6
Capitalization
($ millions)
June 30, December 31,
1996 1995
Common Stock Equity:
Common stock, par value $10 per
share - outstanding 55,065,869 and
49,204,025 shares, respectively 550.7 506.2
Additional paid in capital 736.8 595.8
Retained earnings 213.7 69.8
Unearned employee compensation (1.5) ---
Less: Cost of treasury stock
(1,416,155 shares outstanding
as of December 31, 1995) --- (57.8)
Total Common Stock Equity 1,499.7 1,114.0
Preferred Stock --- 399.9
Long-Term Debt 2,004.1 2,004.5
Total Capitalization 3,503.8 3,518.4
Summary of Financial Operating Data
Three Months Six Months
Ended June 30, Ended June 30,
1996 1995 1996 1995
Operating Data:
Oil and Gas Volumes:
Gas Production (billion cubic feet)
Appalachian 8.1 8.1 16.6 17.2
Southwest --- 8.1 --- 16.7
Total 8.1 16.2 16.6 33.9
Oil Production (000 barrels)
Appalachian 83 80 153 158
Southwest --- 616 --- 1,280
Total 83 696 153 1,438
Transmission (billion cubic feet):
Transportation:
Columbia Transmission:
Market Area 197.6 194.7 627.1 595.9
Columbia Gulf:
Main-line 159.1 151.8 329.3 306.7
Short-haul 64.0 53.7 133.3 104.4
Intrasegment Eliminations (158.1) (150.7) (324.6) (302.0)
Total Throughput 262.6 249.5 765.1 705.0
Distribution (billion cubic feet):
Gas Sales 44.2 37.5 197.1 170.6
Transportation 60.0 58.7 131.7 135.5
Total Throughput 104.2 96.2 328.8 306.1
Degree Days-Distribution Service Territory:
Actual 705 624 3,807 3,382
Normal 580 580 3,559 3,527
% Colder (warmer)
than normal 22 8 7 (4)
% Colder (warmer)
than prior period 13 2 13 (10)
Bankruptcy-related and Unusual Items
After-tax effect on Net Income
Reported Net Income 8.2 30.9 159.5 159.7
Less:
Bankruptcy related items:
Estimated interest costs
not recorded on prepetition
debt prior to emergence --- 43.0 --- 83.4
Professional fees and
related expenses --- (7.8) --- (14.6)
Restructure costs (18.6) --- (18.6) ---
Adjustment to Southwest
oil and gas operations 5.6 --- 5.6 ---
Total adjustments (13.0) 35.2 (13.0) 68.8
Net Income after adjusting
for bankruptcy and
unusual items 21.2 (4.3) 172.5 90.9
CONTACT: Media, Bill Chaddock, 302-429-5261, or Bill McLaughlin,
302-429-5443, or Analysts, Tom Hughes, 302-429-5363, or Ken Murphy,
302-429-5471, all of Columbia Gas
Advanced Promotion Technologies Inc. reports second quarter results
POMPANO BEACH, Fla. -- July 12, 1996--Advanced
Promotion Technologies Inc., (OTC BB:APTZ), developer and marketer
for the Vision Value Network(tm), and electronic marketing and
financial services network for supermarkets, Friday announced
financial results for the second quarter ended May 25, 1996.
Revenues for the six months ended May 25, 1996, were $1,894,000
as compared to $2,297,000 in the six months ended May 27, 1995.
Promotion revenues increased in 1996 by approximately $286,000 due
to greater participation in The Vision Value Club by consumers,
offset by a decrease in revenue from manufacturers of $486,000, and
a decrease in installation revenues of $203,000.
Net loss for the six months ended May 25, 1996, was $7,134,000,
or $0.39 per share, as compared to $18,544,000, or $1.35 per share,
in the six months ended May 27, 1995. The 62% reduction in net
losses is attributed to approximately $3.8 million extinguishment of
the Consumer Redemption Liability, as a result of the de-
installation of 79 stores, due the termination of the Kroger and
other retailer contracts, and the assumption of that liability by
certain of those and other retailers. Total costs and expenses for
the six months ended May 25, 1996, were $11,412,000, down 30% from
$16,369,000 for the six months ended May 27, 1995. The decrease is
due to lowered direct operating and selling, general and
administrative expenses, as a result of the effort to restructure
the company and operate on a smaller scale. Also the six months
ended May 27, 1995, included a one-time debt conversion expense of
$3.5 million.
Advanced Promotion Technologies markets the Vision Value
Network(tm), an electronic marketing and financial services network
for supermarkets. Installed in each checkout lane, Vision Value
terminals combine print, video and voice media to communicate
targeted product promotions, advertising and financial services to
consumers.
ADVANCED PROMOTION TECHNOLOGIES INC.
BALANCE SHEETS
UNAUDITED
(In thousands, except share data)
November 25, May 25,
1995 1996
ASSETS
CASH $ 5,600 $ 387
OTHER 1,988 1,293
PROPERTY AND EQUIPMENT 24,625 20,762
$32,213 $22,442
LIABILITIES AND STOCKHOLDERS'
DEFICIENCY
CURRENT LIABILITIES $17,471 $14,746
6% SUBORDINATED DEBENTURES,
LONG-TERM DEBT AND CAPITAL
LEASE OBLIGATIONS 14,846 14,809
STOCKHOLDERS' DEFICIENCY (104) (7,113)
$32,213 $22,442
STATEMENT OF OPERATIONS
UNAUDITED
(In thousands, except share data)
Three Months Ended Six Months Ended
May 27, May 25, May 27, May 25,
1995 1996 1995 1996
REVENUES $ 1,422 $ 986 $ 2,297 $ 1,894
TOTAL COSTS AND
EXPENSES 8,258 5,409 16,369 11,412
LOSS FROM OPERATIONS (6,836) (4,423) (14,072) (9,518)
INTEREST EXPENSE (NET) 352 324 849 590
DEBT CONVERSION
EXPENSE 3,500 -- 3,500 --
EXTINGUISHMENT OF
CONSUMER REDEMPTION
LIABILITY -- (1,062) -- (3,763)
NET LOSS ($10,688) ($3,685) ($18,421) ($6,345)
PREFERRED STOCK
DIVIDEND
REQUIREMENTS (61) (395) (123) (789)
NET LOSS ATTRIBUTABLE
TO COMMON
STOCKHOLDERS ($10,749) ($4,080) ($18,544) ($7,134)
NET LOSS PER COMMON
SHARE ($0.73) ($0.22) ($1.35) ($0.39)
WEIGHTED AVERAGE
SHARES 14,641,091 18,441,095 13,775,396 18,441,095