NEW YORK -- July 30, 1996 -- The following are the
"pro forma" results assuming the completion of the reorganization
as described in the company's initial public offering prospectus.
TCG (TCGI) reports second quarter revenue of $65.1 million, a
51% increase over $43.2 million for the same period in 1995.
Operating cash flow (earnings before interest, taxes, depreciation
and amortization or EBITDA) was $2.3 million for the second quarter
compared with $186 thousand for the same quarter in 1995. From the
$21.9 million in revenue growth in the second quarter, TCG increased
operating cashflow (EBITDA) by $2.16 million.
For the six months ending June 30, 1996 versus the same period
in 1995, revenues grew $40.3 million or 49% while EBITDA improved by
$4.8 million. "The second quarter demonstrates our ability to
maximize the operating leverage on our 5,770 route miles of fiber
while simultaneously growing the top line. Our top priority is to
grow revenues and cashflow concurrent with managing network and
product expansion," said Bob Annunziata, TCG's Chairman and CEO.
Revenue Growth:
The growth in the second quarter was internally generated with
service in 51 markets. With its 21 digital telephone switches, TCG
continues to transition the revenue mix to switched services, which
grew at 17% over 1Q 1996 and 82% over 2Q 1995 and now represents 40%
of total revenues. At midyear 1995, switched services represented
33% of total revenues.
TCG's focus continues to be a full service local provider with
year-to-date construction in Cleveland, Ohio; Portland, Oregon; and
Salt Lake City, Utah. In the second half of 1996, construction is
planned for Chattanooga, Knoxville, and Nashville, Tennessee and
Birmingham, Alabama. Completion of construction is expected by
first quarter 1997 and our service will reach 55 markets.
Network Expansion:
For the six months ending June 30, 1996, capital expenditures
totaled $127 million. Use of funds was primarily for expansion of
the network by an additional 342 route miles; 3 new markets and
locations in 339 additional on-net buildings. In April, 1996 TCG
successfully completed the installation of the South Florida switch,
which began generating Switch Revenues for the second quarter. For
the second half of 1996, we anticipate switch revenue from 2
additional cities currently under installation.
Operating Results:
Sales, General and Administrative (SG&A) expenses grew at a
slower rate in the second quarter than revenues. SG&A was 34% of
revenues in the second quarter versus 38% for the same period a year
ago. For six months year to date, SG&A was 35% compared to 40% a
year ago. Operating expenses as a percentage of revenues remain
steady in the 62% range.
The net loss for the second quarter 1996 was $24.9 million
compared with $13.9 million for the same period in 1995. The
expansion in net loss is due primarily to increased depreciation and
interest expense associated with network and product expansion.
Financing:
On June 27, TCG successfully completed the offering of the 27
million shares of public Class A Common stock on the NASDAQ National
Market. The equity offering raised $432 million from an initial
offering price of $16 per share. Concurrently, TCG issued $925
million of Senior Debt; $300 million in Senior Notes due July 1,
2006 at 9.875% and $625 million in Senior Discount Notes at 11.125%.
Total proceeds from the equity and debt financing totaled $1.3
billion.
Historical Results:
Historical results, which are presented in company's 10-Q, do
not reflect the completion of the reorganization. For the second
quarter 1996, revenues totaled $57.1 million, an $18.3 million or a
47% increase over the same period in 1995. For six months ended
June 30, 1996, revenues were $107.5 million or a 42% increase over
the same period in 1995. For the second quarter 1996 , EBITDA was
$8.1 million and net loss was $19.7 million. For year to date June
30, 1996, EBITDA was $15.8 million and net loss was $38.4 million.
This press release, other than historical financial information,
contains forward - looking statements that involve risks and
uncertainties detailed in the company's SEC reports and registration
statements. Actual results may vary materially.
TELEPORT COMMUNICATIONS GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
( Pro Forma(a) - unaudited)
($ in millions)
Three Months Ended
June 30
1996 1995
Revenue $ 65.1 $ 43.2
Expenses:
Operating 40.6 26.6
Selling, Gen, & Admin. 22.1 16.4
Total Expenses 62.7 43.0
Depreciation/Amort. 22.6 13.2
Operating loss (20.2) (13.0)
Interest Income .6 1.4
Interest Expense ( 5.4) (2.7)
Minority Interest 1.0 .7
Equity of Unconsol. Affiliates ( .3) ( .3)
Loss Before Taxes (24.3) (13.9)
Income Tax Provision ( .6) -
Net Loss (24.9) (13.9)
EPS (for shares as of 6/30/96) $( .16) N.M.
Shares outstanding (6/30/96) 158.9 N.M.
(a) The proforma reflects the "managed" results assuming the
completion of the Reorganization.
TELEPORT COMMUNICATIONS GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
( Pro Forma(a) - unaudited)
($ in millions)
Six Months Ended
June 30
1996 1995
Revenues $123.2 82.9
Expenses:
Operating 77.1 51.3
Selling, Gen, & Admin. 42.8 33.1
Total Expenses 119.9 84.4
Depreciation/Amort 43.9 24.7
Operating loss ( 40.6) (26.2)
Interest Income 1.6 2.6
Interest Expense (10.9) ( 4.5)
Minority Interest 2.0 1.4
Equity of Unconsol. Affiliates ( .6) ( .8)
Loss Before Taxes (48.5) (27.5)
Income Tax Provision ( .8) ( .3)
Net Loss (49.3) (27.8)
EPS (for shares as of 6/30/96) (0.31) N.M.
Shares outstanding (6/30/96) 158.9 N.M.
TELEPORT COMMUNICATIONS GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
( Historical - unaudited)
($ in millions)
Three Months Ended
June 30
1996 1995
Revenues:
Telecom Service $ 45.2 32.0
Management Fees 11.9 6.8
Total Revenues: 57.1 38.8
Expenses:
Operating 33.4 21.9
Selling, Gen, & Admin. 15.6 11.5
Depreciation/Amort 14.1 2.8
Operating Loss ( 6.0) ( 2.8)
Interest Income 1.5 .9
Interest Expense ( 9.5) ( 5.5)
Minority Interest 0.7 0.2
Equity of Unconsol. Affiliates ( 5.9) ( 4.5)
Loss Before Taxes (19.2) (11.7)
Income Tax Provision ( .5) --
Net Loss ( 19.7) (11.7)
TELEPORT COMMUNICATIONS GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
( Historical - unaudited)
($ in millions)
Six Months Ended
June 30
1996 1995
Revenues:
Telecom Service $ 84.7 61.9
Management Fees 22.8 13.7
Total Revenues: 107.5 75.6
Expenses:
Operating 62.3 43.0
Selling, Gen, & Admin. 29.4 23.6
Depreciation/Amort 26.9 15.5
Operating Loss (11.2) ( 6.5)
Interest Income 2.7 2.0
Interest Expense (17.6) (10.1)
Minority Interest .8 .4
Equity of Unconsol. Affiliates (12.4) ( 8.7)
Loss Before Taxes (37.6) (22.9)
Income Tax Provision ( .8) ( .3)
Net Loss (38.4) (23.2)
CONTACT: Teleport Communications Group Inc.
Nancy Huson, Investor Relations
718/355-2154
Roger Cawley, Media
718/355-2122
WORCESTER, Mass., July 30, 1996 -- Cambridge Biotech
Corporation (OTC BULLETIN BOARD: CBCXQ) today announced that the
Bankruptcy Appellate Panel for the First Circuit issued on July 29,
1996, a temporary twenty-one day stay pending appeal of the United
States Bankruptcy Court's July 18, 1996 order confirming CBC's plan
of reorganization. The stay was requested by Institut Pasteur and
Pasteur Sanofi Diagnostics, who are appealing the Bankruptcy Court's
confirmation of CBC's reorganization plan over their objections to
CBC's assumption of various patent licenses owned by IP and PSD and
licensed to CBC. CBC has requested that IP and PSD be required to
post a $57.5 million cash bond, plus interest, for the pendency of
the appeal, and the Appellate Panel has given the parties seven days
to submit memoranda regarding CBC's request for a bond.
Cambridge Biotech Corporation, which filed for protection under
Chapter 11 of the United States Bankruptcy Code on July 7, 1994, is
a therapeutics and diagnostics company focusing on infectious
diseases and cancer. The company is developing and commercializing
therapeutic and prophylactic vaccines for infectious diseases and
immunotherapeutics for cancer. The company's therapeutics business
includes the Stimulon(TM) family of adjuvants, the most advanced of
which, QS-21, is in clinical development through corporate and
academic partners, and proprietary vaccines. The proprietary
vaccines include a feline leukemia vaccine currently on the market
and vaccines in development in the areas of tick-borne diseases,
streptococcal infections, bovine mastitis and canine Lyme disease.
Cambridge Biotech's remaining diagnostic business (to be sold to
bioMerieux Vitek under the Chapter 11 plan) is primarily focused on
retroviral and Lyme diseases.
Statements in this release which relate to plans and objectives
of management for future operations or which otherwise relate to
future performance are forward looking statements. Actual results
may differ from those projected as a result of the company's success
in emerging from bankruptcy, product demand, pricing, market
acceptance, the effect of economic conditions, intellectual
property, competitive products, risks in product and technology
development, and other risks identified in the Company's Securities
and Exchange Commission filings.
CONTACT: Alison Taunton-Rigby, President, Chief Executive Officer
of Cambridge Biotech Corporation, 508-797-5777 or Robert Gottlieb,
Senior Vice President of Feinstein Partners, Inc., 617-577-8110
NEWHALL, Calif., July 30 /PRNewswire/ - Huntway Partners, L.P.
(NYSE: HWY) today reported a net profit of $1,251,000, or $.11 per
unit, in the second quarter of 1996 versus a loss of $2,286,000, or
$.20 per unit, a year ago. Revenues increased 24% to $26,099,000
from $21,061,000 in 1995. For the first half of 1996, the
partnership's loss declined to $968,000, or $.08 per unit, on
revenues of $43,308,000 from a loss of $5,674,000, or $.49 per unit,
on revenues of $33,339,000 in 1995.
The Company attributed the improved operating performance for
the quarter and the first half of the year to better operating
margins on all products, particularly its light-end products.
Prices for Huntway's light-end products rose in the second quarter
commensurate with the dramatic rise in wholesale gasoline and diesel
prices in California. Margins for the Company's asphalt products
also improved during the first half of the year when compared to the
prior year. In 1995, asphalt margins were negatively impacted by
the unusual level of rainfall that forced us to sell significant
amounts of low-margin fuel oil.
Huntway President and Chief Executive Officer, Juan Forster,
said, "We enjoyed a strong second quarter as evidenced by earnings
before interest and depreciation improving to $3,099,000 from a
negative $381,000 last year. For the first half of the year
earnings before interest and depreciation improved to $2,684,000
from a negative $1,951,000. This improvement reflects improved
operating margins on all products, particularly light-end products.
Asphalt margins have also improved, although asphalt prices in
Southern California remain depressed."
As previously announced, on April 15, 1996, the Company outlined
the terms of its restructuring agreement reached with the holders of
86% of its senior debt and with its junior noteholder. Under the
terms of the agreement, in exchange for 13.8 million units, debt
will be reduced to $25.6 million from $95.5 million effective
January 1, 1996. It also reported at that time that one lender,
representing 14% of senior debt, has refused to approve the
agreement and, as a result, the Company may be forced to file a
"prepackaged" reorganization plan under the U.S. Bankruptcy Code to
implement the restructuring. The Company has continued to be unable
to reach an agreement with this senior debt holder on a consensual
plan of reorganization. Therefore, on July 24, 1996, in order to
effectuate the "prepackaged" reorganization plan, Huntway filed with
the Securities and Exchange Commission a Consent Solicitation
Disclosure Statement and related consent materials. The consent
solicitation materials seek the approval by common unitholders of
the prepackaged reorganization plan and certain other matters. The
partnership anticipates that it will distribute definitive consent
solicitation materials to common unitholders promptly following the
applicable SEC review period. Any such prepackaged plan will
provide for the continuing and timely payment in full of all of the
partnership's obligations to suppliers, other trade creditors and
employees under normal trade terms.
Had the debt restructuring described above been in place at the
beginning of the first quarter of this year, interest expense for
the second quarter and first half of 1996 would have been reduced
$470,000 and $924,000, respectively, improving operating results by
$.04 and $.08 per unit, respectively.
Commenting on the restructuring, Mr. Forster added that, "The
Company has expended considerable time and resources in order to
complete the restructuring reached with the holder of 86% of its
senior debt. Additional expenses will be incurred in future months
in completing the Securities and Exchange Commission filing,
soliciting unitholder votes and filing and completing the
prepackaged reorganization plan with the U.S. Bankruptcy Court."
Huntway Partners, L.P. owns and operates two refineries at
Wilmington and Benicia, California, which primarily process
California crude oil to produce liquid asphalt for use in road
construction and repair, as well as smaller amounts of gas oil,
naphtha, kerosene distillate and bunker fuels. The company's third
refinery, at Coolidge, Arizona, is shut down although it may be
reopened as a terminal in 1997 or beyond.
The company's preference units are traded on the New York Stock
Exchange under the symbol HWY.
HUNTWAY PARTNERS, L.P.
SELECTED FINANCIAL DATA
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 1996
(In Thousands Except per Unit Data)
Three Months Ended Six Months Ended
June 30 June 30 June 30 June 30
1996 1995 1996 1995
Revenues $26,099 $21,061 $43,308 $33,339
Crude Oil & Processing 22,076 20,527 38,834 33,366
Selling & Administration 924 915 1,790 1,924
Interest Expense 1,316 1,300 2,605 2,555
Depreciation and
Amortization 532 605 1,047 1,168
Net Gain/(Loss) $1,251 $(2,286) $(968) $(5,674)
Gain/(Loss) per unit $.11 $(.20) $ (.08) $(.49)
Equivalent Units
Outstanding 11,673 11,673 11,673 11,673
Barrels Sold 1,157 1,137 2,044 1,887
CONSOLIDATED STATEMENT OF CASH FLOW
(Dollars in Thousands)
For the Six Month Period Ended
June 30 June 30
1996 1995
Net Loss $(968) $(5,674)
Add: Depreciation
& PIK Notes 1,047 2,860
Changes in Working Capital 417 (63)
Cash Provided/(Used)
by Operating Activities 496 (2,877)
Cash Used by Investing
Activities (1,965) (297)
Cash Used by Financing
Activities (100) (242)
Net Decrease in Cash (1,569) (3,416)
Cash at Beginning of Year 4,304 5,984
Cash at End of Period $2,735 $2,568
CONSOLIDATED BALANCE SHEET
(Dollars In Thousands)
June 30 December 31
1996 1995
(Unaudited) (Audited)
Cash $2,735 $4,304
Accounts Receivable 6,079 4,820
Inventory 6,150 3,320
Prepaid Expenses 929 676
Current Assets 15,893 13,120
Non-Current Assets 62,144 61,273
Total Assets $78,037 $74,393
Current Portion --
Long-Term Debt 94,345 $94,445
Accounts Payable 8,815 6,582
Accrued Liabilities 6,009 3,530
Current Liabilities 109,169 104,557
Long-Term Obligations 350 350
Partners Capital (31,482) (30,514)
Total Liabilities and
Partners Capital $78,037 $74,393