TCR_Public/960717.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy News For:  July 17, 1996



  1. Sizzler reports fiscal year results
  2. American White Cross, Inc. to reorganize under Chapter 11
  3. APPLE ANNOUNCES THIRD QUARTER RESULTS





Return To The InterNet Bankruptcy Library Homepage


Sizzler reports fiscal year results


        

         
            LOS ANGELES -- July 17, 1996 -- Sizzler
        International
Wednesday reported a consolidated loss of $138,458,000
        for the company's fiscal year ended April 30, 1996, due primarily to
        losses from underperforming U.S.  restaurants and the cost of
        closing 116 restaurants and restructuring the company.  
        


            Also, the company reported its remaining 87 domestic restaurants
        were profitable on an operating basis for the year ended April 30,
        1996.  The international operations continued to provide operating
        profits systemwide.  
        


         Annual Operating Comparison
         


            Revenues for the year decreased 6% to $436,194,000 from
        $462,151,000 last year.  The net loss of $138,458,000 represents a
        loss of $4.99 per share versus net income of $6,695,000, or $0.24
        per share, in the previous fiscal year.  
        


            Revenues for the fourth quarter decreased 5% to $100,045,000
        from $105,291,000 in the same period a year ago.  The company
        reported a loss for the quarter of $134,493,000, or $4.84 per share,
        versus quarterly earnings of $1,386,000, or $0.05 per share, in last
        year's fourth quarter.  
        


            On June 2, 1996, Sizzler filed for protection under Chapter 11,
        the part of the bankruptcy code that permits court supervised
        reorganization of companies.  Pursuant to this, in the fourth
        quarter, the company recorded a pre-tax restructuring charge of
        $109.0 million.  
        


            The restructuring costs include non-cash write offs of assets
        and related disposition costs associated with the closure of 116
        restaurants in the United States.  The company also reported an
        initial non- cash charge of $12.8 million, or $0.46 share, to adopt
        SFAS 121.  
        


         Post-filing Temporary Slowdown
         


            Following the filing and as expected, the company reported that
        numerous restaurants experienced downturns in their daily sales
        which will have an impact on first quarter results.  
        


            President and Chief Executive Officer Kevin Perkins said the
        company's goal is "a return to operating profitability during the
        fourth quarter this year.  With the downsizing and -- assuming a
        successful Chapter 11 -- we have a stronger domestic core and a
        profitable international operation."  
        


         Financial Strength
         


            The company finished the fiscal year with cash of $9,216,000 and
        total assets of $178,547,000 and shareholders' equity of
        $43,467,000.
        


            Christopher Thomas, executive vice president and chief financial
        officer, said: "We are particularly well positioned to take
        advantage of Chapter 11 because we now will have stronger ongoing
        operations and a favorable balance sheet.  
        


            "Regarding the restructuring charge, it involved primarily non-
        cash write offs and reflects our efforts to redeploy capital to
        those core markets that are expected to yield the strongest returns
        as well as eliminate the need for further investment in non-
        performing assets such as closed restaurant leases."  
        


         New Company Shape
         


            Company-operated Sizzler restaurants in the U.S. have decreased
        from 199 at April 30, 1996, to 87 at June 3, 1996.  Also, domestic
        franchises decreased from 235 to 230.  Company- operated Sizzler
        restaurants outside the U.S.  remained at 44 from April 30, 1996, to
        June 3, 1996.  
        


            International Sizzler franchises remained at 87 and company-
        operated international KFC restaurants increased from 92 to 93.  The
        company also operates one international Italian Oven restaurant.  
        


            Except for historical information contained herein, the matters
        set forth in this news release are forward looking statements that
        are subject to certain risks and uncertainties that could cause
        actual results to differ materially from those set forth herein in
        the forward looking statements, including such factors, among
        others, as significant fluctuations in operating results, uncertain
        profitability, uncertain market acceptance of the company's product
        offering, intense competition, the impact of the company's
        bankruptcy filing, the company's ability to successfully reorganize
        operations and reposition its domestic business.  
        


        
                          SIZZLER INTERNATIONAL INC.
                            FINANCIAL HIGHLIGHTS
     
                         (unaudited) (000 omitted)
        
                              For the 12 Weeks       For the 52 Weeks
                                   Ended                  Ended
                            4/30/96    4/30/95     4/30/96     4/30/95
         
        Systemwide sales
          (all franchised and
          company-owned
          restaurants)         $201,776   $214,190    $875,704    $937,670
        Revenues               $100,045   $105,291    $436,194    $462,151
        Net income             (134,493)     1,386    (138,458)      6,695
        Net income per
          common share           ($4.84)     $0.05      ($4.99)       $0.24
        Common and common
          equivalent shares      27,768     27,783      27,773       28,272
        Common shares,
          assuming full
          dilution               27,768     27,783      27,773       28,273
        

        CONTACT:  Sizzler International Inc., Los Angeles
                  Christopher R. Thomas, 800/883-9675
                           or
                  The Financial Relations Board, Los Angeles
                  Timothy Kent (general information)
                  Steven Seiler (media contact)
                  Tom Ekman (analyst contact)
                  310/442-0599



American White Cross, Inc. to reorganize under Chapter 11; Company obtains DIP financing


        


            DAYVILLE, Conn. -- July 17, 1996 -- American White
        Cross, Inc.
(Nasdaq:AWCI) today announced it has filed a petition
        for voluntary reorganization under Chapter 11 of the Federal
        Bankruptcy Code to allow the company time to implement a financial
        restructuring program.  
        


            Simultaneous with the filing, the company announced that
        Congress Financial Corp., the company's longtime lender, has agreed
        to continue working with the company by providing debtor-in-
        possession (DIP) financing.  Upon court approval, the funds may be
        used for ongoing working capital needs.  Management anticipates no
        interruptions in deliveries to customers or payments to post-
        petition suppliers.  
        


            The Chapter 11 filing will allow the company to continue its
        daily operations as usual while it goes through a financial
        restructuring.  
        


            American White Cross has an 84-year history of manufacturing,
        marketing and distributing disposable medical products.  In recent
        months, a combination of factors has contributed to an ongoing
        negative financial position.  These include the unprecedented
        increases in the cost of raw materials and the costs associated with
        relocating into a new, state-of-the-art manufacturing facility in
        Houston, Texas.  
        


            "The company has instituted a number of aggressive operational
        initiatives to return the company to profitability,"  said Howard
        Koenig, Chairman and Chief Executive Officer.  "They include
        introducing new products, relocating from a 100-year-old plant to
        modern, cost-saving facilities, negotiating raw material cost
        reductions and cutting overhead spending."  
        


            Mr. Koenig continued, "These actions are moving the company in
        the right direction.  However, to allow sufficient time to maximize
        benefits, and return American White Cross to profitability, we have
        made the difficult but necessary decision to seek the protection of
        Chapter 11."  
        


            American White Cross, Inc. manufacturers and markets a wide
        variety of health and personal care products, including adhesive
        bandages, first aid kits and cosmetic cotton products.  
        



        CONTACT: American White Cross, Inc.
                 Scott Vertrees
                 Vice Chairman
                 Thomas Rallo
                 Senior Vice President
                 (860) 779-4114
                    or
                 IR CONTACT: Melissa Garelick/Ross Felix
                 PRESS:      Leslie Feldman/Suzanne Miller
                 Morgen-Walke Associates
                 (212) 850-5600



APPLE ANNOUNCES THIRD QUARTER RESULTS


        


            CUPERTINO, Calif., July 17, 1996 - Apple Computer, Inc.
        (Nasdaq: AAPL) today announced financial results for the quarter
        ending June 28, 1996. The Company recorded a quarterly net loss of
        $39 million, or a loss of $.26 per share, compared to net earnings
        of $103 million, or $.84 per share, in the prior year quarter.  The
        quarterly loss represents a $708 million sequential improvement from
        the $740 million net loss incurred during the Company's second
        fiscal quarter ending March 29, 1996.
        


            Included in the quarterly results was a one-time after-tax gain
        of approximately $39 million on the sale of the Company's investment
        in America Online.
        


            Revenues for the quarter were $2.179 billion, a 15 percent
        decrease from the year ago quarter but approximately equal to the
        $2.185 billion reported in the March 1996 quarter.  Gross margins
        were 18.5 percent, a sequential improvement from the -19.3 percent
        (or 9 percent before inventory valuation and related adjustments)
        gross margin reported in the March 1996 quarter.
        


            The Company continues to execute its 12-month restructuring
        plan, first announced in the second fiscal quarter.  During the
        third quarter, headcount decreased from 15,544 to 13,729, primarily
        in the areas of manufacturing and administration.  Approximately
        1,000 of the headcount reduction was related to the sale of the
        Company's Fountain, Colo. manufacturing site which was completed
        during the quarter.  The Company also announced the closure of its
        printed circuit board assembly facility in Sacramento, Calif.
        Operating expenses for the quarter were reduced by $35 million to
        $519 million, or 23.8 percent of revenue, compared to $554 million
        (excluding restructuring charges) or 25.4 percent of revenue in the
        March 1996 quarter.
        


            Cash and short term investments at the end of the quarter were
        $1.359 billion, a sequential increase of $767 million from the March
        quarter.  The Company's cash position was strengthened by a number
        of factors, including the successful completion of long-term
        financing, sales of fixed assets and investments, and improved asset
        management.
        


            Apple completed the redesign of its organizational structure
        during the quarter and established six new product divisions with
        full profit and loss responsibility.  The Company also filled the
        remaining positions in its executive management team, naming Marco
        Landi Executive Vice President and Chief Operating Officer; and
        Ellen Hancock Executive Vice President, Research and Development and
        Chief Technology Officer.
        


            "We made great strides in the quarter in shoring up the
        Company's balance sheet and improving liquidity," said Apple
        Executive Vice President and Chief Financial Officer Fred Anderson.
        "We also made progress toward our goals of operating expense
        reduction and gross margin improvement.
        


            "We believe that the Company achieved stabilization of revenues
        during the quarter," said Anderson. "We also achieved a positive
        shift in product mix toward higher end, higher margin desktop
        products and servers. Revenues would have increased noticeably
        relative to Q2 were it not for quality holds on our PowerBook
        backlog.  We are implementing programs to resolve those problems and
        to enhance the quality and reliability on all products going
        forward."
        


            "Over the next few months we plan to introduce a number of new
        products for our target customers," said Apple Chairman and Chief
        Executive Officer Dr. Gilbert F. Amelio.  "Apple will continue to
        focus on the industry's more significant growth areas: the Internet
        and multimedia. With our strategy set and management team and
        organization in place, we're on schedule for the continued execution
        of Apple's transformation."
        


            Except for the historical information contained herein, the
        statements regarding stabilization of revenues, implementation of
        programs to address quality issues, new product introductions,
        continuing focus on certain industry growth areas, and the timing of
        execution of the Company's business plans are forward-looking
        statements that involve risks and uncertainties. Potential risks and
        uncertainties include, without limitation, continued competitive
        pressures in the marketplace; the effect competitive factors and the
        Company's reaction to them may have on consumer and business buying
        decisions with respect to the Company's products; the consequences
        competitive factors and buying decisions may have on current
        inventory valuations; the effect of any continued losses on the
        Company's needs for liquidity; the effect of the announced business
        restructuring on the future performance of the Company, especially
        the performance of the Company's employees; and the need for any
        future restructuring, and the effect that they might have on the
        performance of the Company.  More information on potential factors
        that could affect the Company's financial results are included in
        the Company's Form 10-Q for the third fiscal quarter, to be filed
        with the SEC.
        


            Apple Computer, Inc., a recognized innovator in the information
        industry and leader in multimedia technologies, creates powerful
        solutions based on easy-to-use personal computers, servers,
        peripherals, software, personal digital assistants and Internet
        content. Headquartered in Cupertino, California, Apple develops,
        manufactures, licenses and markets solutions, products, technologies
        and services for business, education, consumer, entertainment,
        scientific and engineering and government customers in more than 140
        countries.
        


Apple's home page on the World Wide Web: http://www.apple.com/" target=_new>http://www.apple.com/">http://www.apple.com/


            NOTE:  Apple, the Apple logo, and Macintosh are registered
        trademarks of Apple Computer, Inc. registered in the USA and other
        countries. All other brand names mentioned are registered trademarks
        of their respective holders, and are hereby acknowledged.
       



                              APPLE COMPUTER, INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS

                                   (Unaudited)
                 (Dollars in millions, except per share amounts)
        
                                      THREE MONTHS ENDED  NINE MONTHS ENDED
                                      June 28,  June 30,  June 28,  June 30,
                                       1996      1995      1996      1995
        
        Net sales                      $2,179   $2,575   $7,512    $8,059
        Costs and expenses:
          Cost of sales                 1,776    1,847    7,055     5,822
          Research and development        155      168      458       443
          Selling, general and
           administrative                 364      404    1,209     1,205
         Restructuring costs                0       (6)     207       (23)
                                        2,295    2,413   (8,929)    7,447
        Operating income (loss)          (116)     162   (1,417)      612
        Interest and other income
           (expense), net                  65        2       82       (33)
        Income (loss) before provision
            (benefit)  for income taxes   (51)     164   (1,335)      579
        Provision (benefit) for
         income taxes                     (19)      61     (494)      215
        Net income (loss)                $(32)    $103    $(841)     $364
        Earnings (loss) per common
        and common equivalent share    $(0.26)  $ 0.84   $(6.81)   $ 2.97
        Cash dividends paid per common share
                                       $   --   $  .12   $   --    $ 0.36
        Common and common equivalent shares
         used in the calculations of earnings
         per share(in thousands)      123,735  123,203  123,463   122,482
        
                              APPLE COMPUTER, INC.
                           CONSOLIDATED BALANCE SHEETS
                                     ASSETS

                                  (In millions)
        
                                                June 28,      September 29,
                                                  1996            1995
                                               (Unaudited)
        
        Current assets:
        Cash and cash equivalents                $1,359          $ 756
        Short-term investments                       --            196
        Accounts receivable, net of a