NEW YORK -- July 31, 1996 -- The Trustees of the
Aerospace Creditors Liquidating Trust (PSE:ARO.TT) announced today
that the United States District Court for the Southern District of
New York affirmed the Bankrupcy Court's ruling in favor of the LTV
Corp. ("LTV") in the action entitled LTV Aerospace and Defense Co.
v. Thomson-CSF S.A., Adv. Proc. No. 92-9531A (Bankr. S.D.N.Y.) (the
"Thomson Litigation").
The Trust is entitled to the first $10 million in proceeds, plus
a pro rata portion of any interest received by LTV under any
judgement or settlement, actually received pursuant to the claims of
LTV Aerospace and Defense Co. in the Thomson Litigation.
The Bankruptcy Court's ruling ordered Thomson to pay LTV, Vought
Industries Inc. and Vought International Inc. the sum of $20
million, with interest thereon at the rate of nine percent from Aug.
1, 1992. The decision by the District Court is subject to appeal by
Thomson.
CONTACT: Aerospace Creditors Liquidating Trust
212/808-0539
NORWALK, Conn. -- July 31, 1996 -- The Caldor
Corporation (NYSE: CLD) announced today that the U.S. Bankruptcy
Court for the Southern District of New York has granted the Company
an extension of the period under which it has the exclusive right to
file a plan of reorganization with the court.
The exclusivity period, which had been scheduled to expire on
July 31, 1996, has now been extended through February 28, 1997.
Likewise, the period in which the Company can solicit acceptances
for the reorganization plan has been extended through April 30,
1997. In addition, the Company has committed to provide a five-year
business plan by November 28, 1996 to its creditors, equity and bank
committees, each of which supported the extension of the Company's
exclusivity periods.
The Caldor Corporation is the fourth largest discount department
store chain in the U.S., with annual sales of approximately $2.8
billion. It operates 160 stores in ten East Coast states. With a
strong consumer franchise in high-density urban/suburban markets,
Caldor offers a diverse merchandise selection, including both
softline and hardline products.
CONTACT: Wendi Kopsick/Jim Fingeroth
Kekst and Company
(212) 593-2655
NEW YORK -- July 31, 1996 -- New World Coffee Inc. (NASDAQ:NWCI),
which operates 30 espresso bars in the Northeast, today announced
results for the second quarter and six months ended June 30, 1996
compared to the equivalent period last year, ended July 2, 1995.
The company successfully completed its initial public offering on
February 1, 1996.
Revenues for the quarter were $2,629,000 compared with
$2,417,000 for the equivalent 1995 quarter. Pro forma for an
acquisition and store closings, revenues were $2,691,000. The
number of stores open at the end of each period was 30 and 27,
respectively.
Store operating income for the quarter was $213,000, or 8.1% of
sales, as compared with $141,000, or 5.8% of sales, last year. Pro
forma store operating income was $339,000 or 12.6% of sales. The
improvement in store level margins reflects the company's progress
in increasing store level profitability through the implementation
of its new POS system as well as improved vendor pricing.
The loss from operations for the 1996 quarter was $828,000, or
$0.18 per share, as compared with a loss of $401,000, or $0.27 per
share, in the 1995 quarter. Pro forma loss from operations was
$703,000, or $0.16 per share. General and administrative costs
increased significantly due to management additions to support the
company's planned expansion, including the additions of a vice
president of real estate and development, directors of construction,
human resources, and training, and a new marketing program begun in
the second quarter. The company had a nonrecurring charge of
$1,800,000 which included a $1.5 million non-cash charge to provide
for the closing of five unprofitable, primarily commercial stores in
accordance with the company's strategy of concentrating its business
in residential areas. The quarter also included $300,000 in
restructuring charges related to the reorganization of senior
management. This resulted in a net loss of $2,597,000, or $0.57 per
share, compared to a loss of $458,000, or $0.31 per share, for the
equivalent period last year. Pro forma net loss for the period was
$984,000, or $0.22 per share.
On June 13th, the company acquired three Coopers Coffee Bars in
Manhattan. Pro forma results assume the Coopers stores had been
acquired and the five stores closed at the beginning of the periods.
For the six months, the company had revenues $4,907,000,
compared to $4,469,000 last year. Store operating income was
$316,000, or 6.4% of sales, versus a loss of $103,000, or -2.3% of
sales, for the first six months of 1995. Pro forma revenues were
$5,113,000 and operating income was $585,000, or 11.4% of sales.
The loss from operations for the first half of 1996 was
$1,511,000 compared to a loss of $1,425,000 last year. The net loss
for the period was $4,341,000 compared to a loss of $1,517,000 last
year. The six months results for 1996 includes one-time, non-cash
charges for pre-IPO bridge financing of $1,000,000, and a provision
for store closings of $1,500,000. Pro forma loss from operations
was $1,246,000 and net loss was $2,588,000.
Commenting on the results, R. Ramin Kamfar, president and chief
executive officer of New World Coffee, said, "We are pleased to
demonstrate concrete improvement in our results. Our profitability
programs are starting to show results. Store operating margins have
improved to 12.6% of sales from 5.8% for the same period last year
and should improve to 17% by year end. Our marketing programs are
working and same store sales have improved to -2.8% in the second
quarter from -12.8% for the first quarter, and turned positive in
the month of June. We have a new store prototype which is built at
approximately half the per square foot cost of our previous stores
and should raise our average store sales to $700,000 from $550,000
for our current residential stores. We have strengthened the
management team with additions from Starbucks, Boston Market and
Blockbuster. The major part of G&A growth is behind us, and we
should see these improvements flow through to the bottom line over
the next two quarters."
"Having completed a $3.75 million private placement equity
financing on July first, we are strongly positioned to aggressively
pursue further acquisitions and new store growth. The addition of
the Coopers stores, the opening of two new stores in Manhattan and
continued expansion of the chain, with six leases in hand and
approximately twenty under negotiation, testify to the ongoing
progress of the Company," Kamfar added.
New World Coffee Inc., the largest coffee bar retailer based in
the Northeastern United States, currently owns and operates 30
espresso bars in the New York City, New Jersey and Pennsylvania
areas and has six leases for upcoming locations.
NEW WORLD COFFEE, INC.
FINANCIAL HIGHLIGHTS
(In thousands, except per share data)
Quarter Ended Proforma
6/30/96 7/2/95 6/30/96
Revenues $ 2,629 $ 2,417 $ 2,691
Store Operating Income 213 141 339
Loss from Operations(a) (828) (401) (703)
Net Loss(b) (2,597) (458) (984)
Per Share Information:
Loss from Operations(a) (0.18) (0.27) (0.16)
Net loss(b) $ (0.57) $ (0.31) $ (0.22)
Weighted Average Number of
Common Shares Outstanding 4,522,716 1,460,642 4,522,716
Six Months Ended Proforma
6/30/96 7/2/95 6/30/96
Revenues $ 4,907 $ 4,469 $ 5,113
Store Operating Income 316 (103) 585
Loss from Operations(a) (1,511) (1,425) (1,246)
Net Loss(b) (4,341) (1,517) (2,588)
Per Share Information:
Loss from Operations(a) (0.37) (0.98) (0.30)
Net loss(b) $ (1.06) $ (1.04) $ (0.63)
Weighted Average Number of
Common Shares Outstanding 4,086,523 1,460,642 4,086,523
(a) Excludes store closing and other non-recurring charges.
(b) Includes one-time non-cash charges of $1,500,000 for store
closings in the second quarter, and $1,000,000 related to pre-IPO
bridge financing in the first quarter.
CONTACT: New World Coffee Inc.
R. Ramin Kamfar
212/343-0552 ext. 21
or
KCSA
Adam Friedman/Paul Holm
212/682-6300 ext. 215/201
SHERMAN OAKS, CA -- July 31, 1996 -- House of Fabrics,
Inc. said today that it has completed all legal and financial
conditions required in connection with its emergence from Chapter
11, and that the newly reorganized company's common stock will begin
post-bankruptcy trading tomorrow on the Nasdaq National Market under
the symbol "HFAB." At the same time, the company's warrants will
trade on the Nasdaq Small Cap Market under the symbol "HFABW."
Additionally, the company said that its financing arrangement
with The CIT Group has been completed and funded. This agreement
provides the company with $60 million in new financing for an
initial period of three years.
"When House of Fabrics decided to complete its financial
reorganization by filing under Chapter 11, we told our customers,
employees, vendors and shareholders that we intended to complete
this process as quickly as possible. Despite some difficult
challenges, I believe that we have lived up to that promise," said
Gary L. Larkins, president and chief executive officer.
"After two years of revamping our organization and our financial
base, we have expectations that House of Fabrics can move forward as
a smaller, but financially stronger company that can achieve a level
of financial performance from which we can build for the future."
Earlier this week, House of Fabrics announced that three new
members have been appointed to its board of directors and that the
Board had elected R.N. Hankin chairman.
The company's plan of reorganization was confirmed by the
Bankruptcy Court July 10.
Since filing to reorganize, House of Fabrics has:
CONTACT: Sandra Sternberg, Sitrick and Company, 310-788-2850
IRVINE, Calif., July 31, 1996 - Platinum Software
Corporation (Nasdaq: PSQL) today reported its financial results for
the fourth quarter and full year fiscal 1996. Revenues for the
fourth quarter of fiscal 1996, ended June 30, 1996, were $9.4
million as compared to revenues of $14.9 million for the fourth
quarter of 1995. Revenues for the fiscal year ended June 30, 1996
were $40.6 million as compared to revenues of $56.2 million for the
fiscal year 1995.
A net loss of $3.0 million or $.18 per share was reported for
the fourth quarter of fiscal 1996, as compared to a loss of $1.0
million or $.08 per share for the same quarter a year ago. For the
full year, the company reported a loss of $32.9 million or $2.23 per
share for fiscal 1996, as compared to a loss of $5.7 million or $.44
per share for fiscal 1995.
The company's balance sheet as of June 30, 1996, shows cash has
increased to $15.5 million from $14.3 million the prior quarter.
The Company also reported accounts receivable of $7.9 million and
deferred revenue of $10.9 million at June 30, 1996.
During the fourth quarter of fiscal 1996, Platinum Software
announced the appointment of Ken Lally as senior vice president of
worldwide field operations. The company also announced that during
the quarter the redemption of the debenture issued in a settlement
of a class action securities litigation. The company issued
1,528,988 shares of common stock to retire the $15.0 million
debenture and approximately $2.0 million of accrued interest.
L. George Klaus, president and chief executive officer, said "I
am very pleased with the status of the Platinum turnaround as of
June 30, 1996. In February 1996, when I joined the company and
looked forward at the challenge ahead, I did not expect we would be
this far ahead of my original turnaround plan. Revenues in the
fourth quarter increased from the March 31, 1996 quarter, rising to
$9.4 million from the $8.4 million reported earlier. I anticipated
that the company's turnaround would start in late fiscal 1996 and
the quarter certainly had the finishing momentum that I expected. I
am especially pleased that our cash balance increased to $15.5
million from the March level of $14.3 million. We are positioned to
move Platinum forward."
More information about Platinum Software Corporation and its
products and services is available at the Platinum World Wide Web
site http://www.platsoft.com" target=_new>http://www.platsoft.com">http://www.platsoft.com
Platinum Software, the financial software company, develops and
markets leading client/server software products for corporations
worldwide. The company's products enable organizations to scale
their technology investments to meet the changing needs of their
businesses- Founded in 1984, Platinum Software is headquartered in
Irvine, California.
Platinum is a registered trademark of Platinum Software Corporation.
PLATINUM SOFTWARE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30, June 30,
ASSETS 1996
1995
Current assets:
Cash and cash equivalents $15,500 $26,276
Restricted cash 1,006 476
Accounts receivable, net 7,893 14,205
Notes receivable from divestitures, net 825 957
Inventories 460 672
Prepaid expenses and other 1,638 1,785
Total current assets 27,322 44,371
Property and equipment, net 8,896
11,961
Notes receivable from divestitures, net
- 3,534
Software development costs, net 2,250
3,000
Acquired intangible assets, net 1,088
2,403
Other assets 446
564
$40,002 $65,833
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $3,436 $3,920
Accrued expenses 7,522 5,964
Accrued restructuring costs 1,921 1,192
Deferred revenue 10,912 8,980
Total current liabilities 23,791 20,056
Long-term portion of class action settlement
- 15,812
Stockholders' equity:
Preferred stock 31,996 31,996
Common stock 18 13
Additional paid-in capital 111,194 80,391
Less: notes receivable from officers (11,563) -
Accumulated foreign currency
translation adjustments 249 304
Accumulated deficit (115,683) (82,739)
Total stockholders' equity 16,211 29,965
$40,002 $65,833
PLATINUM SOFTWARE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended Twelve Months Ended
June 30, June 30,
1996 1995 1996 1995
Revenues:
License fees $4,422 $9,993 $19,018 $35,723
Consulting and professional
services 1,695 2,499 9,949 11,520
Support services 3,168 2,250 10,969 8,384
Royalty income 114 132 619 526
9,399 14,874 40,555 56,153
Cost of revenues 4,522 4,874 20,179
19,846
Gross profit 4,877 10,000 20,376 36,307
Operating expenses:
Sales and Marketing 3,969 5,996 19,322 19,884
General and administrative 1,767 981 14,959 4,924
Software development 2,211 3,967 13,403 17,308
Charge for restructuring - - 5,568 -
7,947 10,944 53,252 42,116
Loss from operations (3,070) (944) (32,876) (5,809)
Other income (expense), net 78 (37) (68)
122
Loss before provision for
income taxes (2,992) (981) (32,944) (5,687)
Provision for income taxes
- - - 20
Net loss $(2,992) $(981) $(32,944) $(5,707)
Net loss per share $(0.18) $(0.08) $(2.23)
$(0.44)
Shares used in computing
net loss per share 16,803 13,058 14,766 12,835
BOCA RATON, Fla., July 31, 1996 - Brothers Gourmet
Coffees, Inc. (Nasdaq: Bean), today announced significantly improved
results from continuing operations. Second quarter net loss was
reduced to $1.9 million or $.17 per share as compared to $7.9
million or $.70 per share a year ago. Total loss for the second
quarter last year was $46.5 million or $4.14 per share after the
Company accrued a $38.6 million charge to discontinue its retail
operations.
Donald D. Breen, President and CEO, said, "This is a dramatic
improvement from the prior year. Wholesale operating results
improved by almost $6.0 million or 75% vs. last year. The reduced
loss from continuing operations was primarily attributable to
improved gross margins, due to lower green coffee costs and reduced
manufacturing costs resulting from the company's restructuring
efforts. Lower selling, general and administrative expenses have
also contributed to the improved operating results."
Mr. Breen went on to say, "With long term financing now in
place, we have improved our liquidity and strengthened our balance
sheet. Our cost cutting steps have continued to meet target and
will help us to achieve our objective - A Return To Profitability.
We are now concentrating our energies on increasing sales volume."
Brothers Gourmet Coffees, Inc. is the nation's leading branded
roaster of wholesale gourmet coffees, offering a variety of unique
gourmet coffees and packages to grocery, military, mass and
specialty merchandisers, food service and warehouse club classes of
trade.
BROTHERS GOURMET COFFEES, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended Six Months Ended
June 28, June 30, June 28, June 30,
1996 1995 1996 1995
Net Sales $15,413 $23,345 $34,523 $49,246
Cost of goods sold 8,711 14,469 18,719 29,534
Gross profit 6,702 8,876 15,804 19,712
Operating Expenses
Selling, general and
administrative 7,315 13,700 15,389 25,750
Restructuring 124 1,500 221 500
Amortization of
intangibles 672 885 1,446 1,783
Total operating
expenses 8,111 16,085 17,056 28,033
Operating income loss
continuing operations(1,409) (7,209) (1,252) (8,321)
Interest expense, net 540 664 1,119 1,084
Other (income) expense (13) (27) (23) (18)
Loss from continuing
operations (1,936) (7,900) (2,348) (9,387)
Discontinued Operations:
Loss from discontinued
retail operations --- (38,550) --- (40,594)
Net loss $(1,936) $(46,450) $(2,348) $(49,981)
EBITDA $ 1,726 $ (1,067) $ 5,491 $ 1,177
Loss per common share:
Loss per common share
from continuing
operations $ (0.17) $(0.70) $(0.21) $(0.84)
Loss per common share
from discontinued
operations --- (3.44) --- (3.62)
Loss per common
share $ (0.17) $(4.14) $(0.21) $(4.46)
Weighted average common
shares outstanding 11,202 11,212 11,184 11,205
CONTACT: Barry Bilmes, Brothers Gourmet Coffees, Inc., 407-995-2600DOW CORNING ANNOUNCES SECOND-QUARTER FINANCIAL RESULTS
MIDLAND, Mich., July 31, 1996 - Dow Corning Corp. today
reported global sales for the second-quarter of 1996 of $631.2
million, down 1.7 percent from $641.8 million reported for the same
period in 1995. For the first half of 1996, sales are $1.248
billion, down 0.4 percent from the $1.253 billion reported for the
first half of 1995.
Global Profit After Tax (PAT) is $52.0 million for the second
quarter, up 3.6 percent over an adjusted PAT of $50.2 million for
the same period in 1995. For the first six months of 1996, PAT is
$103.9 million, up 4.2 percent over an adjusted PAT of $99.7 million
for the first half of 1995. Adjusted PAT for prior periods excluded
the impact of a special charge and accounting adjustments related to
Dow Corning's Chapter 11 status.
"Profits are up in 1996 when compared with the same period last
year, despite a slight decline in sales revenue," said John
Churchfield, vice president for planning and finance and chief
financial officer. "Soft sales have continued in Europe and Japan.
Growth has accelerated recently in Mexico and Canada. Sales
performance remains solid in the U.S., but the recent strengthening
of the U.S. dollar relative to foreign currencies has had a negative
effect on our reported sales revenue."
Churchfield added that profit margins continue to reflect tight
control over operating expenses. Lower interest expenses due to
suspension of interest payments during the company's Chapter 11
case, coupled with higher interest income due to cash received from
insurance settlements, continue to favorably influence profit
growth.
Dow Corning Corporation
Consolidated Statements of Operations and Retained Earnings
(in millions of dollars except share data)
Six months Three months
ended June 30, ended June 30,
1996 1995 1996 1995
NET SALES $1,248.4 $1,253.6 $631.2 $641.8
OPERATING COSTS AND
EXPENSES:
Manufacturing cost
of sales 817.7 810.7 418.8 414.3
Marketing and
administrative expenses 217.6 216.5 111.5 116.1
Implant costs - 351.1 - 351.1
1,035.3 1,378.3 530.3 881.5
OPERATING INCOME (LOSS) 213.1 (124.7) 100.9 (239.7)
OTHER INCOME (EXPENSE):
Interest income 22.6 15.0 12.3 7.1
Interest expense (3.8) (36.4) (1.7) (15.5)
Other, net (12.0) (18.2) (5.6) (5.6)
INCOME (LOSS) BEFORE
REORGANIZATION COSTS
AND INCOME TAXES 219.9 (164.3) 105.9 (253.7)
Reorganization costs 19.9 0.5 9.9 0.5
INCOME (LOSS)
BEFORE INCOME TAXES 200.0 (164.8) 96.0 (254.2)
Income tax provision
(benefit) 87.7 (55.5) 40.9 (91.7)
Minority interests' share
in income 8.4 8.2 3.1 4.5
NET INCOME (LOSS) 103.9 (117.5) 52.0 (167.0)
Retained earnings at
beginning of period 566.9 597.5 618.8 647.0
Retained earnings at
end of period $670.8 $480.0 $670.8 $480.0
Dow Corning Corporation
Condensed Consolidated Balance Sheets
(in millions of dollars)
ASSETS June 30, 1996 December 31, 1995
CURRENT ASSETS:
Cash and cash equivalents $335.0 $387.3
Receivables, net 488.7 474.4
Anticipated implant insurance
receivable 56.8 265.0
Implant deposit 275.0 275.0
Inventories 320.2 329.0
Other current assets 148.0 105.0
Total current assets 1,623.7 1,835.7
Property, plant and equipment,
net 1,207.1 1,207.6
Anticipated implant insurance
receivable 1,026.0 1,126.0
Restricted insurance proceeds 418.6 108.3
Other assets 748.4 680.8
$5,023.8 $4,958.4
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term borrowings $24.1 $23.4
Accounts payable 145.7 148.5
Other current liabilities 357.0 287.6
Total current liabilities 526.8 459.5
Long-term debt 63.1 110.8
Other liabilities 116.7 110.3
LIABILITIES SUBJECT TO COMPROMISE:
Accounts payable 66.4 46.6
Implant reserves 2,433.1 2,471.5
Notes payable and long-term debt 646.3 648.4
Other 317.3 337.6
Total liabilities subject
to compromise 3,463.1 3,504.1
Minority interest in
consolidated subsidiaries 124.3 126.8
Stockholders' equity 729.8 646.9
$5,023.8 $4,958.4
CONTACT: Barbara J. Muessig of Dow Corning, 517-496-8841MUSICLAND REPORTS SECOND QUARTER RESULTS
MINNEAPOLIS, July 31, 1996 - Musicland Stores Corporation
(NYSE: MLG) today reported that revenues for the second quarter
ended June 30, 1996, rose 12.3 percent to $372.4 million from $331.7
million for the same period a year ago. Second-quarter sales
reflected the closing of eight Media Play superstores and a weaker
1996 video release schedule than in 1995, which included the video
introduction of "Forrest Gump." Gross margin was restrained by
promotional pressures at Suncoast Motion Picture Company and a book
sale at Media Play. As previously indicated, the net loss for the
quarter exceeded last year, totaling $18.6 million, or $.56 per
share, compared to a loss of $7.5 million, or $.22 per share, in the
same period a year ago. A lower tax rate versus last year increased
the net loss but will benefit earnings in the fourth quarter.
Jack Eugster, chairman and chief executive officer, said, "Our
mall-based businesses exceeded expectations for the quarter.
However, at Media Play, successful sales building efforts were
offset by lower gross margins."
The corporation's superstore divisions (Media Play and On Cue)
led second-quarter sales growth with a 4.7 increase in comparable-
store sales. Superstore sales for the quarter totaled $133.3
million, up 43.3 percent from $93.1 million a year earlier. The
mall divisions (Sam Goody/Musicland and Suncoast Motion Picture
Company) recorded a 0.6 percent rise in comparable-store sales from
the 1995 period. Company- wide comparable-store sales for the
second quarter were up 1.8 percent from a year ago.
For the six months ended June 30, 1996, sales rose to $756.0
million, an 11.5 percent increase from the $678.1 million reported a
year earlier. Comparable-store sales for the superstore divisions
were 0.1 percent behind the 1995 level while the mall divisions
declined 0.9 percent. Company-wide comparable-store sales for the
six months declined 0.6 percent. The net loss in the first half was
$59.1 million, or $1.77 per share, compared to a net loss of $13.8
million, or $.40 per share, last year. The year-to-date net loss
included a $35 million restructuring charge taken in the first
quarter for the closure of underperforming stores.
Square footage for Musicland Stores Corporation totaled 9.5
million at June 30, 1996, a 15.3 percent increase from the 8.2
million in the same period a year earlier.
The corporation opened two Media Play stores during the second
quarter. It also opened two On Cue stores, one Suncoast Motion
Picture Company stores and one Sam Goody store in the United
Kingdom. The corporation freed up additional working capital by
closing 21 stores in the second quarter, including 11 music stores,
eight Media Play stores, one On Cue store and the Readwell's
bookstore. This brought the year- to-date store closings to 34. At
the end of the quarter, the corporation operated a total of 1,479
stores (84 Media Play stores, 159 On Cue stores, 414 Suncoast
stores, and 800 Sam Goody stores and 22 United Kingdom stores) in 49
states, the United Kingdom, Puerto Rico and the Virgin Islands.
Based in Minneapolis, Musicland Stores Corporation is the
leading specialty retailer of (more)Musicland Stores Corporation /
Page 3home- entertainment products, including prerecorded music and
videos, books and computer software. It is traded on the New York
Stock Exchange under the symbol MLG.
MUSICLAND STORES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
(In thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1995
Sales $ 372,410 $ 331,720 $ 755,980 $ 678,080
Cost of sales 245,828 208,348 499,565 432,464
Selling, general and
administrative expenses 135,814 119,475 275,303 238,420
Operating income (loss)
before depreciation,
amortization and
restructuring charge (9,232) 3,897 (18,888) 7,196
Depreciation and
amortization 11,175 11,396 22,734 22,162
Restructuring charge - 35,000
Operating income (loss) (20,407) (7,499) (76,622) (14,966)
Interest expense 8,362 7,124 15,034 11,917
Earnings (loss) before
income taxes (28,769) (14,623) (91,656) (26,883)
Income taxes (10,150) (7,092) (32,550) (13,038)
Net earnings (loss) $(18,619) $(7,531) $(59,106)$(13,845)
Earnings (loss) per
common share $(0.56) $(0.22) $(1.77) $(0.40)
Weighted average number
of shares outstanding 33,402 34,264 33,387 34,258
MUSICLAND STORES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands)
ASSETS
June 30,
1996 1995
Current assets:
Cash and cash equivalents $5,485 $1,246
Inventories 529,699 487,128
Deferred income taxes 30,900 14,470
Other current assets 33,705 19,945
Total current assets 599,789 522,789
Property, net 287,625 304,676
Goodwill 96,755 238,457
Deferred income taxes - 630
Other assets 6,353 6,187
Total Assets $990,522 $1,072,739
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term notes payable $-- $
Other current liabilities 78,847 52,279
Total current liabilities 682,374 590,280
Long-term debt 110,000 110,000
Other liabilities 55,582 45,903
Deferred income taxes 5,800 --
Stockholders' equity:
Common stock 343 343
Additional paid-in capital 254,411 254,192
Retained earnings
(accumulated deficit) (104,017) 76,994
Deferred compensation (8,998) --
Common stock subscriptions (4,973) (4,973)
Total stockholders' equity 136,766 326,556
Total Liabilities and
Stockholders' Equity $990,522 $1,072,739
MUSICLAND STORES CORPORATION AND SUBSIDIARIES
SALES AND STORE DATA (UNAUDITED)
(Dollars and Square Footage in Millions)
Three Months Ended June 30,
Percent of Total
1996 1995 %Change 1996 1995
Sales:
Superstores $133.3 $93.1 43.3% 35.8% 28.1%
Mall stores 235.6 235.0 0.2 63.3 70.8
Total (1) 372.4 331.7 12.3 100.0 100.0
Comparable store
sales % change (2):
Superstores 4.7% 19.1% N/A N/A N/A
Mall stores 0.6 (3.4) N/A N/A N/A
Total (1) 1.8 (0.5) N/A N/A N/A
Six Months Ended June 30,
Percent of Total
1996 1995 %Change 1996 1995
Sales:
Superstores $267.2 $184.4 44.9% 35.3% 27.2%
Mall stores 481.9 486.7 (1.0) 63.7 71.8
Total (1) 756.0 678.1 11.5 100.0 100.0
Comparable store
sales % change (2):
Superstores (0.1)% 22.5% N/A N/A N/A
Mall stores (0.9) (1.4) N/A N/A N/A
Total (1) (0.6) 1.5 N/A N/A N/A
Ending store count
CONTACT: Marcia Appel, Media, 612-931-8742 or Jim Nermyr,
Investors, 612-931-8007