SAN DIEGO, CA -- August 14, 1996 -- Genta Incorporated
(Nasdaq: GNTA) announced today its operating results for the second
quarter and six months ended June 30, 1996. As expected, the
company reported a significant reduction in its net loss for the
second quarter and six months ended June 30, 1996, relative to the
comparable periods in 1995, largely due to the company's
restructuring, related workforce reductions and other cost savings
measures implemented during 1995 and 1996.
The company's net loss totaled $2.9 million (before preferred
stock, dividends of $677,000) or 14 cents per common share for the
second quarter of 1996 compared to a net loss of $8.9 million
(before preferred stock dividends of $637,000) or 52 cents per
common share for the second quarter of 1995. For the six months
ended June 30, 1996, the company's net loss totaled $6.1 million
(before preferred stock dividends of $1,354,000) or 29 cents per
common share. This compares to a net loss of $16.3 million (before
preferred stock dividends of $1,275,000) or $1.09 per common share
for the six months ended June 30, 1995. The net loss for the second
quarter and six months ended June 30, 1995 included charges of $3.6
million and $4.8 million, respectively, for acquired in-process
research and development associated with the expansion of the
company's drug delivery joint venture, Genta Jago, to obtain the
rights to develop additional GEOMATRIX-based products.
The company's net loss for the second quarter and six months
ended June 30, 1996 was significantly lower than that reported for
the comparable periods of 1995 reflecting reductions in the
company's operating costs primarily attributable to Genta's
restructuring efforts, the aforementioned prior year charges
associated with the expansion of Genta Jago and lower net losses in
Genta Jago resulting largely from the fact that a greater portion of
the joint venture's development activities was funded by the Genta
Jago collaborative agreements. Genta Jago receives collaborative
funding from Apothecon Inc., the multisource subsidiary of Bristol-
Myers Squibb, and from Gensia Inc.
At June 30, 1996, the company reported cash and cash equivalents
of $2.3 million. The company is in discussions with potential
corporate partners and other sources regarding collaborative
agreements, restructurings and other financing arrangements and is
actively seeking additional equity financing. There can be no
assurance that such collaborative agreements, restructurings or
other sources of funding will be available on favorable terms, if at
all. If such funding is unavailable, the company will deplete its
cash in September 1996 and may license or sell certain of its assets
and technology, scale back or eliminate some or all of its
development programs and further reduce its workforce and spending.
If such measures are not successfully completed, the company will be
required to discontinue its operations.
As of June 30, 1996, the company did not meet the net tangible
asset criteria required for listing on the Nasdaq National Market,
therefore, the Nasdaq National Market may delist the company's
common stock. As noted above, the company is seeking additional
funding that may help it to meet this criteria. However, there can
be no assurance that the company will be able to obtain additional
funding on favorable terms, if at all. Such a delisting of the
common stock will provide the holders of Series A Preferred Stock
the option of requiring the company to repurchase all of each such
holder's Shares of Series A Preferred Stock at the redemption price,
an event that would result in the company being required to pay to
the holders of Series A Preferred Stock cash in the aggregate amount
of approximately $31 million. The holders of Series A Preferred
Stock would in effect become unsecured creditors of the company,
which would materially and adversely affect the company. Given the
company's current financial condition and market conditions, it is
unlikely that the company would be able to make such payment to the
holders of Series A Preferred Stock and it is therefore likely that
the company could be forced to discontinue its operations. Further,
a delisting could adversely affect the liquidity of the common
stock. The company is currently in discussions to renegotiate
certain terms of its agreement with holders of the Series A
Preferred Stock. However, there can be no assurance that holders of
the Series A Preferred Stock will agree to any such proposed
changes.
Except for the historical information contained herein, the
matters discussed in this press release are forward-looking
statements that involve risks and uncertainties, including the
ability of the company to obtain sufficient financing to maintain
the company's operations, the timely development and receipt of
necessary regulatory approvals for the company's potential products
and other risks detailed from time to time in Genta's Securities and
Exchange Commission (SEC) reports and filings, including the
company's annual report on Form 10-K for the year ended December 31,
1995. There can be no assurance that the company will successfully
secure collaborative funding or other sources of financing on
favorable terms, if at all. Actual results may differ materially
from those projected. These forward-looking statements represent
Genta's judgment as of the date of this release. The company
disclaims, however, any intent or obligation to update these forward-
looking statements.
Genta Incorporated is an integrated biopharmaceutical company
with a diversified product development pipeline. In the near term,
the company is developing through a joint venture with Jagotec AG,
oral controlled-release drugs utilizing the patented GEOMATRIX drug
delivery technology. Longer term, Genta is developing proprietary
Anticode products to treat cancer at its genetic source.
GENTA INCORPORATED
SELECTED CONSOLIDATED FINANCIAL DATA
(UNAUDITED)
(In thousands, except per share data)
Quarters ended Six months ended
June 30, June 30,
1996 1995 1996 1995
Consolidated Statements of
Operations Data:
Revenues:
Product sales $1,365 $1,033 $2,611 $1,742
Collaborative research
and development -- 375 -- 750
1,365 1,408 2,611 2,492
Costs and expenses:
Cost of products sold 709 466 1,264 883
Research and development 1,453 3,292 3,030 6,838
Charge for acquired
in-process research and
development -- 3,612 -- 4,762
Selling, general and
administrative 1,226 1,483 2,335 2,926
3,388 8,853 6,629 15,409
Loss from operations (2,023) (7,445) (4,018) (12,917)
Equity in net loss of
joint venture (942) (1,451) (2,150) (3,434)
Interest income (expenses),
net 50 21 32 28
Net loss $(2,915) $(8,875) $(6,136) $(16,323)
Dividends on preferred
stock (677) (637) (1,354) (1,275)
Net loss applicable to
common shares $(3,592) $(9,512) $(7,490) $(17,598)
Net loss per common share $(.14) $(.52) $(.29) $(1.09)
Shares used in computing
net loss per common share 26,542 18,347 25,669 16,099
June 30, December 31,
1996 1995
Consolidated Balance Sheets Data:
Cash, cash equivalents and short-term
investments $2,321 $272
Working capital (deficit) (3,596) (3,153)
Total assets 14,581 15,631
Notes payable and capital lease
obligations, less current portion 1,852 2,334
Total stockholders' equity 4,713 5,399
SEATTLE, WA -- Aug. 14, 1996 -- MIDCOM Communications
Inc. (NASDAQ: MCCI) Wednesday reported a net loss of $44.7 million
($2.89 per share) on revenue of $40.8 million for the quarter ended
June 30, 1996.
These results include a write-down of $18.8 million primarily
related to intangible assets, and a one-time charge of $8.8 million
for payments to be made in connection with the satisfaction of
certain obligations under an agreement with a major supplier.
MIDCOM's results compare to a net loss of $2.7 million ($0.26 per
share) on revenue of $51.8 million in the year ago quarter.
Excluding one-time charges, the company's second quarter loss
was $16.5 million ($1.07 per share) on revenue of $40.8 million.
Commenting on the company's results, MIDCOM Chief Financial Officer
Robert J. Chamberlain said, "As expected, revenue was down from the
year ago quarter and, as previously announced, we expect revenue to
continue to decline in the short term from attrition and other
factors until our revamped sales effort begins to bear fruit."
In a recent development, the company announced on Aug. 2, 1996
that it had executed a letter of intent with AT&T to negotiate a new
contract to replace existing agreements. The new contract is
expected to afford MIDCOM more favorable prices and other terms from
AT&T. The terms of this letter of intent are subject to negotiation
and execution of a mutually acceptable definitive agreement.
Founded in 1989, MIDCOM Communications Inc. provides a broad
range of telecommunications services to small- and medium-sized
businesses nationwide. The company has headquarters in Seattle and
has regional offices throughout the nation. MIDCOM currently
invoices approximately 125,000 customer locations per month.
MIDCOM Communications Inc.
Condensed Statements of Operations
(unaudited)
Three months ended Six months ended
(in thousands, except June 30, June 30,
per share data) 1996 1995 1996 1995
(restated) (restated)
Revenue $40,805 $51,808 $93,860 $97,380
Cost of revenue 29,589 35,475 67,536 65,282
Gross profit 11,216 16,333 26,324 32,098
Operating expenses:
Selling, general and
administrative 15,843 14,308 32,314 27,483
Depreciation 1,323 1,090 2,674 1,938
Amortization 7,858 1,500 16,536 2,960
Settlement of contract dispute 8,800 -- 8,800 --
Restructuring charge 600 -- 2,220 --
Loss on impairment of assets 18,765 -- 18,765 --
------ ------ ------ ------
53,189 16,898 81,309 32,381
Operating loss (41,973) (565) (54,985) (283)
Other expense:
Interest expense 2,544 1,799 3,910 3,346
Equity in loss of joint
venture -- 113 -- 166
Other expense, net 144 210 266 228
------ ------ ------ ------
2,688 2,122 4,176 3,740
Loss before income taxes (44,661) (2,687) (59,161) (4,023)
Income tax expense -- -- -- --
Net loss $(44,661) $(2,687) $(59,161) ($4,023)
Net loss per share $(2.89) $(0.26) $(3.86) $(0.39)
Weighted average common
shares outstanding 15,445 10,269 15,321 10,246
ROCKY HILL, Conn. -- Aug. 14, 1996 -- Ames
Department Stores Inc. (Nasdaq: AMES) today reported that its second-
quarter net income increased to $4.5 million, or $0.21 per share,
for the period ended July 27, 1996, compared with last year's second-
quarter net income of $3.2 million, or $0.15 per share.
Last year's second-quarter results included property gains of
$5.1 million, compared with $0.4 million this year. This year's
second-quarter income before other gains was $6.0 million, a $6.5
million improvement compared with last year's loss of $0.5 million.
The net loss for the 26 weeks ended July 27, 1996, was $2.5
million, or $0.12 per share, compared with a net loss of $8.0
million, or $0.40 per share, last year. The year-to-date loss
before other gains was $3.9 million, a $13.6 million improvement
compared with last year's loss before other gains of $17.5 million.
Net sales for the second quarter were $499.1 million, compared
with $500.2 million in the prior year's second quarter, a decrease
of 0.2 percent. Net sales for the year to date were $937.8 million,
compared with $938.5 million last year. Comparable-store sales for
the quarter decreased 1.2 percent while comparable-store sales for
the year to date decreased 1.4 percent.
Joseph R. Ettore, President and Chief Executive Officer, said,
"Our second-quarter net income was nearly twice the $2.3 million
projected in the business plan, an improvement primarily
attributable to a better-than-plan gross margin rate and continued
stringent expense control. In addition, despite below-plan sales,
merchandise inventories are well-controlled and at the end of the
quarter were $39 million below the same period last year.
"We expect that the second half of the fiscal year, especially
the holiday season, will be extremely competitive and have planned a
strong advertising and merchandising program to take advantage of
promotional opportunities. At the same time, our intention is to
minimize margin exposure to the fullest extent possible by ensuring
that inventories are maintained in line with anticipated sales
levels and by continuing to reduce expenses and improve operating
efficiencies," he said.
The company's business plan, filed on Form 8-K with the
Securities and Exchange Commission on June 11, 1996, anticipates a
third-quarter net loss of approximately $3.3 million and fourth-
quarter net income of approximately $26.7 million, Ettore noted.
"On August 1, we opened a new store in Sussex, N.J., and
reopened a store in Huntingdon, Pa., which had been closed by
flooding in January 1996, to enthusiastic customer response. Next
month we'll hold grand openings in Dover, N.J., and Trexlertown,
Pa., bringing the number of new stores in 1996 to 13, the most Ames
has opened in one year since 1989," Ettore said.
Ames, which operates 301 stores in 14 Northeastern states and
the District of Columbia, is the nation's fifth-largest discount
retailer with annual total sales of $2.1 billion.
AMES DEPARTMENT STORES INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
For the Thirteen For the Twenty-six
Weeks Ended Weeks Ended
July 27, July 29, July 27, July 29,
1996 1995 1996 1995
TOTAL SALES $525,217 $526,625 $980,894
$983,693
Less: Leased department
sales 26,110 26,437 43,120
45,193
NET SALES 499,107 500,188 937,774
938,500
COSTS, EXPENSES AND (INCOME):
Cost of merchandise sold 359,382 364,188 680,647
687,155
Selling, general and
administrative expenses 134,609 137,217 262,411
270,258
Leased department and other
operating income (7,221) (7,708) (12,995)
(13,962)
Depreciation and amortization
expense 2,649 2,143 5,269
4,084
Amortization of the excess of
revalued net assets over equity
under fresh-start reporting (1,539) (1,539) (3,077)
(3,077)
Interest and debt expense, net 5,206 6,415 9,445
11,536
INCOME (LOSS) BEFORE OTHER
(CHARGES) AND GAINS 6,021 (528) (3,926)
(17,494)
Gain on disposition of
properties 395 5,099 395
6,090
INCOME (LOSS) BEFORE INCOME
TAXES 6,416 4,571 (3,531)
(11,404)
Income tax benefit (provision) (1,902) (1,383) 1,047
3,451
NET INCOME (LOSS) $4,514 $3,188 ($2,484)
($7,953)
WEIGHTED AVERAGE NUMBER OF
COMMON AND COMMON EQUIVALENT
SHARES OUTSTANDING 21,680 21,531 20,465
20,127
NET INCOME (LOSS) PER SHARE $0.21 $0.15 ($0.12)
($0.40)
Results of Operations as a
Percent of Net Sales:
Net sales 100.0% 100.0% 100.0%
100.0%
Cost of merchandise sold 72.0 72.8 72.6
73.2
Gross margin 28.0 27.2 27.4
26.8
Selling, general and
administrative expenses 27.0 27.4 28.0
28.8
Leased department and other
operating income (1.4) (1.5) (1.4)
(1.5)
Depreciation and amortization
expense 0.5 0.4 0.5
0.4
Amortization of the excess of
revalued net assets over equity
under fresh-start reporting (0.3) (0.3) (0.3)
(0.3)
Interest and debt expense, net 1.0 1.3 1.0
1.2
Income (loss) before other
(charges) and gains 1.2 (0.1) (0.4)
(1.8)
Gain on disposition of
properties 0.1 1.0
-- 0.6
Income (loss) before income taxes 1.3 0.9 (0.4)
(1.2)
Income tax benefit (provision) (0.4) (0.3) 0.1
0.4
Net income (loss) 0.9% 0.6% (0.3)%
(0.8)%
(Please see the accompanying condensed notes to these consolidated
condensed financial statements.)
AMES DEPARTMENT STORES INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)
(Unaudited)
July 27, Jan. 27, July 29,
1996 1996 1995
ASSETS
Current assets:
Cash and short-term investments $18,226 $14,185 $19,783
Receivables 25,544 14,478 23,388
Merchandise inventories 458,940 402,177 498,260
Prepaid expense and other current assets 16,051 12,793 13,249
Total current assets 518,761 443,633 554,680
Fixed assets 85,915 78,487 59,607
Less -- Accumulated depreciation and
amortization (25,233) (20,259)
(11,828)
Net fixed assets 60,682 58,228 47,779
Other assets and deferred charges 5,665 3,965 4,834
$585,108 $505,826 $607,293
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable:
Trade $137,595 $112,682 $126,210
Other 39,846 43,636 34,202
Total accounts payable 177,441 156,318 160,412
Note payable - revolver 100,720 4,284 114,051
Current portion of long-term debt
and capital lease obligations 16,241 17,347 19,485
Self-insurance reserves 36,081 39,003 43,850
Accrued expenses and other current
liabilities 49,969 54,943 54,994
Restructuring reserve 19,827 30,623 1,227
Total current liabilities 400,279 302,518 394,019
Long-term debt 13,267 23,159 25,919
Capital lease obligations 27,525 29,372 34,799
Other long-term liabilities 5,968 6,322 8,074
Unfavorable lease liability 17,847 18,672 21,961
Excess of revalued net assets over equity
under fresh-start reporting 39,404 42,480 45,557
Commitments and contingencies
Stockholders' equity:
Common stock 204 205 201
Additional paid-in capital 80,759 80,759 80,759
Retained earnings (accumulated deficit) (145) 2,339
(3,996)
Total stockholders' equity 80,818 83,303 76,964
$585,108 $505,826 $607,293
Basis of Presentation: In the opinion of management, the
accompanying consolidated condensed financial statements of Ames
Department Stores Inc., and subsidiaries (collectively the
"Company") contain all adjustments necessary for a fair presentation
of such financial statements for the periods presented. Certain
prior year items have been reclassified to conform to the current
year presentation. Due to the seasonality of the Company's
operations, the results of operations for the interim period ended
July 27, 1996 may not be indicative of total results for the full
year. Certain information normally included in financial statements
prepared in accordance with generally accepted accounting principles
has been condensed or omitted. The accompanying financial
statements should be read in conjunction with the financial
statements and notes thereto included in the Company's Form 10-K
filed in April 1996.
Earnings Per Common Share: Earnings per share was determined using
the weighted average number of common and common equivalent shares
outstanding. Common stock equivalents and fully diluted earnings
per share were excluded for the periods with net losses as their
inclusion would have reduced the reported loss per share. Fully
diluted earnings per share was equal to primary earnings per share
for the quarters ended July 27, 1996 and July 29, 1995.
Inventories: Inventories are valued at the lower of cost or market.
Cost is determined by the retail last-in, first-out (LIFO) cost
method for all inventories. No LIFO reserve was necessary at July
27, 1996, Jan. 27, 1996 and July 29, 1995.
Debt: The Company has an agreement with BankAmerica Business Credit
Inc., as agent, and a syndicate consisting of seven other banks and
financial institutions, for a secured revolving credit facility of
up to $300 million, with a sublimit of $100 million for letters of
credit (the "Credit Agreement"). The Credit Agreement is in effect
until June 22, 1997, is secured by substantially all of the assets
of the Company, and requires the Company to meet certain quarterly
financial covenants. The Company is in compliance with these
financial covenants through the quarter ended July 27, 1996.
Income Taxes: The Company's estimated annual effective income tax
rate for each year was applied to the loss incurred before income
taxes for the twenty-six weeks ended July 27, 1996 and July 29, 1995
to compute non-cash income tax benefits of $1.0 million and $3.5
million, respectively. The same method was used to compute income
tax provisions of $1.9 and $1.4 million for the second quarters of
1996 and 1995, respectively. The Company currently expects that, as
a result of the seasonality of the Company's business, this year's
income tax benefit will be offset by non-cash income tax expense in
the remaining interim periods. The income tax benefits are included
in other current assets in the balance sheets as of July 27, 1996
and July 29, 1995.
CONTACT: Ames Department Stores Inc., Rocky Hill;
Marge Wyrwas, 860/257-2659;
Bill Roberts, 860/257-2666;
Lynn Riemer, 860/257-2655
RENO, Nev. -- Aug. 14, 1996 -- Telechips Corp.
(NASDAQ: TCHP (common), TCHPW (warrants)), an innovative developer
of interactive Microsoft Windows(R)-compatible, personal
computer/telephony workstations, today reported sales revenue of
$52,627 for the second quarter, ended June 30, 1996, the company's
first substantial sales revenues.
The loss for the quarter was $1,110,260, or $(0.30) per commmon
and common equivalent share, versus a loss of $573,422, or $(0.30)
per share, for the 1995 quarter, which reported no revenues.
For the six months ended June 30, 1996, the loss was $2,097,906,
or $(0.57) per share, compared to a loss of $1,079,276, or $(0.56)
per share, for the first half of 1995. For the 1996 first half,
sales revenue was $52,627, compared to no revenues for the year-
earlier period.
C.A. Burns, chairman and chief executive officer, said that even
though the company incurred some additional expense and delay due to
reorganization issues at a former contract manufacturer, the rollout
of the Telechips Access(TM) line of products was progressing well.
The company will continue production at its current primary contract
manufacturer, Group Technologies Inc.
During the quarter, Massachusetts Mutual Life Insurance Co.
announced its TelePlan(SM) interactive service, based on Telechips
Access(TM) workstations, for its clients that are 401(k) sponsors.
Telechips also announced an exclusive arrangement with Tandem
Computer Inc. under which Telechips will provide Access workstations
for lottery applications that Tandem will sell to the lottery and
interactive gaming industries. The arrangement is embodied in a
Letter of Intent and Memorandum of Understanding that contemplates
execution of a five-year contract between the companies.
"We expect both MassMutual and Tandem to be substantial
customers," Burns said, "and our Access line of workstations is
being evaluated by several other substantial companies. In
particular, our workstations are currently undergoing extensive
public trials at a leading entertainment company in a hospitality
and entertainment application."
In other developments:
Note: Any of the above statements which are not historical fact are
forward looking, and actual results may differ materially.
TELECHIPS CORPORATION
FINANCIAL INFORMATION
(Unaudited)
Periods Ended 6/30/96 and 6/30/95
2nd Quarter 6 Months
1996 1995 1996 1995
Sales Revenues $52,627 $0 $52,627 $0
Cost of Sales 67,754 0 67,754 0
Operating Expenses 1,098,736 564,001 2,113,060 1,056,524
Loss from Operations 1,113,863 564,001 2,128,187 1,056,524
Other Income
(Expense) 3,603 (9,421) 30,281
(22,752)
Net Loss $1,110,260 $573,422 $2,097,906 $1,079,276
Net Loss Per Share $0.30 $0.30 $0.57 $0.56
Weighted Average
Number, Common
Shares Outstanding 3,669,930 1,940,624 3,669,930 1,940,624
CONTACT: Telechips Corp., Reno
Nelson B. Caldwell
Vice President, Finance
702/824-5555
or
Lobsenz-Stevens Inc.
Mark Perlgut
212/684-6300, ext. 309
HOUSTON, TX -- Aug. 14, 1996 -- Kelley Oil & Gas
Corporation (Nasdaq NM:KOGC) (the "Company") today reported (on a
consolidated basis) its second quarter and first six- months' 1996
results.
The Company's consolidated operations during the second quarter
resulted in total revenues of $13.1 million(a) and a net loss of
$4.8 million ($0.05 per share of common stock) compared to the 1995
second quarter total revenues of $10.1 million(a) and a net loss of
$13.8 million ($0.36 per share of common stock). Consolidated
operations for the first six months of 1996 resulted in total
revenues of $26.6 million(a) and a net loss of $10.3 million ($0.13
per share of common stock) compared to 1995 first six months' pro
forma total revenues of $22.0 million(a) and a net loss of $21.9
million ($0.60 per share of common stock). The Company's results
for its second quarter and first six months of 1996 include a
restructuring charge of $2 million. Consolidated cash flows from
operating activities (before net change in operating assets and
liabilities) were $3.8 million for the six months ended June 30,
1996 as compared to $0.6 million for the comparable 1995 period.
Operating Results
The Company's consolidated production for the second quarter of
1996 totaled 5.0 billion cubic feet ("Bcf") of gas and 55,000
barrels of oil and condensate, or a total of 5.4 Bcf on an
equivalent basis ("Bcfe"), compared to 5.3 Bcfe for the same period
in 1995. Production for the first six months of 1996 totaled 9.9
Bcf of gas and 120,000 barrels of oil and condensate, or a total of
10.6 Bcfe, compared to 11.4 Bcfe for the same period in 1995.
During the second quarter, the number of drilling rigs operating
on the Company's properties increased to six, up from one drilling
rig operating during the first quarter of 1996 and a single rig
operating during the respective comparable periods in 1995. For the
second quarter of 1996, this has resulted in a total of 8.7 net
wells being spudded in north Louisiana, and for the first six months
of 1996, a total of 10.4 net wells. During the comparable periods
in 1995, totals of 0.8 and 1.4, respectively, of net wells were
spudded in north Louisiana.
Comments
John Bookout, Chief Executive Officer, stated, "We are beginning
to see the results from our increased development drilling activity
on our north Louisiana properties and expect increased production
will be reported for the third and fourth quarters of this year."
He cautioned that, "Through the rest of this year, we will continue
to incur costs and expenses in implementing our restructuring and
cost containment program. The benefits of this program should be
apparent in the financial results for 1997 and thereafter."
The Company is an independent oil and gas company with its
properties located primarily in Louisiana. The Company's common and
preferred stock are traded on the Nasdaq National Market under the
symbols KOGC and KOGCP.
(a) Previously, gas marketing revenues and the related cost have
been separately stated.
Kelley Oil & Gas Corporation
Condensed Income Statements
($ in thousands, except per share amounts)
(Unaudited)
Three Months Ended June 30,
1996 1995
Income Statement Data:
Oil and gas revenues . . . . . . . . . . . . . . . $12,619
9,606
Gas marketing revenues, net(a) . . . . . . . . . . 314
201
Interest and other income. . . . . . . . . . . . . 215
251
Total revenues . . . . . . . . . . . . . . . . . 13,148
10,058
Production expenses. . . . . . . . . . . . . . . . 2,595
2,781
Exploration costs. . . . . . . . . . . . . . . . . 1,413
5,430
General and administrative expenses. . . . . . . . 2,193
1,618
Interest and other debt expenses . . . . . . . . . 5,911
5,712
Restructuring expense . . . . . . . . . . . . . . 2,000
---
Depreciation, depletion and amortization . . . . . 3,872
8,355
Net loss . . . . . . . . . . . . . . . . . . . . . (4,836)
(13,838)
Net loss per common share. . . . . . . . . . . . . (.05)
(.36)
Average primary shares outstanding . . . . . . . . 95,391
43,668
Six Months Ended June 30,
1996 1995 1995
Pro Forma
Income Statement Data:
Oil and gas revenues . . . . . . . . . .$25,323 21,031
18,523
Gas marketing revenues, net(a) . . . . . 708 432
430
Interest and other income. . . . . . . . 529 545
540
Total revenues . . . . . . . . . . . . 26,560 22,008
19,493
Production expenses. . . . . . . . . . . 5,167 5,461
4,835
Exploration costs. . . . . . . . . . . . 3,053 7,819
7,479
General and administrative expenses. . . 4,826 3,388
3,020
Interest and other debt expenses . . . . 12,309 9,899
9,092
Restructuring expense. . . . . . . . . . 2,000
--- ---
Depreciation, depletion and amortization 9,553 17,340
16,741
Net loss . . . . . . . . . . . . . . . .(10,348) (21,899)
(21,674)
Net loss per common share. . . . . . . . (.13) (.60)
(.65)
Average primary shares outstanding . . . 81,848 42,565
38,349
(a) Previously, gas marketing revenues and the related cost of
gas sold have been separately stated.
Kelley Oil & Gas Corporation
Summary Production Information
Three Months
Ended June 30, Six Months Ended June 30,
1996 1995 1996 1995 1995
Pro Forma
Average sales prices:
Gas ($/Mcf). . . . . . . . .$2.25 1.65 2.32 1.72
1.70
Oil and condensate ($/Bbl) .23.21 19.12 21.34 17.55
17.70
Mcfe ($/Mcfe). . . . . . . . 2.35 1.80 2.40 1.85
1.83
Average daily production:
Gas (Mmcf) . . . . . . . . . 55 52 54 56
50
Oil and condensate (Bbls). . 604 956 659 1,099
939
Mmcfe. . . . . . . . . . . . 59 58 58 63
56
Total production:
Gas (Mmcf) . . . . . . . . .5,036 4,767 9,904 10,158
9,080
Oil and condensate (Mbbls) . 55 87 120 199
170
Mmcfe. . . . . . . . . . . .5,369 5,289 10,626 11,352
10,100
Operating costs per Mcfe:
Lease operating expenses . .$ .39 .41 .39 .37
.37
Severance taxes. . . . . . . .10 .12 .09 .11
.11
General and administrative .
expenses. . . . . . . . . . .41 .31 .45 .30
.30
Depreciation, depletion and
amortization . . . . . . . .72 1.58 .90 1.53 1.66
Kelley Oil & Gas Corporation
Condensed Balance Sheets
(In thousands)
June 30, December 31,
1996 1995
(Unaudited)
Assets
Current assets . . . . . . . . . . . . . . . . .$26,485
22,697
Properties and equipment, net. . . . . . . . . .136,123
128,642
Other assets . . . . . . . . . . . . . . . . . . 1,186
3
Total assets. . . . . . . . . . . . . . . . . $163,794
151,342
Liabilities and Stockholders' Deficit
Current liabilities. . . . . . . . . . . . . . .$30,532
31,930
Long term debt . . . . . . . . . . . . . . . . .145,217
164,980
Stockholders' deficit. . . . . . . . . . . . . .(11,955)
(45,568)
Total liabilities and stockholders' deficit. .$163,794
151,342
Kelley Oil & Gas Corporation
Condensed Statements of Cash Flows
($ in thousands)
(Unaudited)
Six Months Ended June 30,
1996 1995
Operating Activities:
Net Loss . . . . . . . . . . . . . . . . . . . . $(10,348)
(21,674)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation, depletion and amortization . . . . 9,553
16,741
Debt interest accretion and amortization . . . . 2,684
1,393
Other. . . . . . . . . . . . . . . . . . . . . . 1,917
4,148
Cash flow from operations before change in
operating assets and liabilities . . . . . . . . 3,806
608
Net change in operating assets and liabilities . (8,947)
(10,058)
Net cash used in operating activities. . . . . . . (5,141)
(9,450)
Investing Activities:
Purchases of property and equipment. . . . . . . .(16,346)
(20,438)
Other. . . . . . . . . . . . . . . . . . . . . . . 293
1,828
Net cash used in investing activities. . . . . . .(16,053)
(18,610)
Financing Activities:
Net proceeds (payments) from borrowing activities.(22,000)
10,551
Net proceeds from equity activities. . . . . . . . 43,961
13,212
Net cash provided by financing activities. . . . . 21,961
23,763
Increase (decrease) in cash and cash equivalents . 767
(4,297)
Cash and cash equivalents, beginning of period . . 6,352
9,268
Cash and cash equivalents, end of period . . . . .$ 7,119
4,971
SPRINGFIELD, Mass. -- Aug. 14, 1996 -- All For A
Dollar Inc. (OTC Bulletin Board Service: AFAD) today announced sales
and earnings for the second quarter and six months ended June 29,
1996.
Sales for the 1996 second quarter decreased 18.6 percent to $8.4
million from $10.3 million, and sales for the six month period
decreased 14.4 percent to $16.9 million from $19.7 million, compared
to the corresponding 1995 periods. The reduction in sales is the
result of a decrease in comparative sales.
Sales in stores which were open more than 24 months (comparative
store sales) decreased 24.2 percent for the 1996 second quarter from
the corresponding period in 1995. For the six months ended June 29,
1996, the comparative decrease was 18.0 percent.
Operating loss before interest and income taxes for the second
quarter was $1.8 million, compared to a loss of $758,000 in the
corresponding period in 1995. Net loss for the quarter was $2.7
million, or $.38 per share, primarily as a result of the sales
decline. Net income for the corresponding period in 1995 was $5.6
million, or $.81 per share, primarily as a result of recording a
$6.4 million extraordinary gain on forgiveness of debt relating to
the June 30, 1995 confirmation of the company's Plan of
Reorganization.
Operating loss before interest and income taxes for the first
six months of 1996 was $3.6 million, compared to a loss of $1.9
million in the corresponding period in 1995. Net loss for the six
months was $3.7 million, or $.53 per share, compared to a net income
of $4.5 million, or $.65 per share in the corresponding 1995 period.
The variance in net profit performance is related to the company's
bankruptcy proceedings.
All For A Dollar presently operates 121 retail close-out variety
stores in nine northeastern states, offering high quality and brand
name merchandise, predominantly at the single price point of $1.
CONTACT: All For A Dollar
Donald A. Molta, 413/733-1203
MILFORD, Conn. -- Aug. 14, 1996 -- EXECUTONE
Information Systems, Inc. (NASDAQ:XTON) today announced revenues for
the second quarter ended June 30, 1996, of $52.0 million (which
includes only two months of revenue from the direct offices) and net
income of $21.0 million, or $.40 per share, which includes the gain
on the sale of its Direct Sales, Service and Long Distance Reseller
businesses. Revenues for the second quarter of 1995 were $78.4
million (including three months of revenue from the direct offices)
with a net loss of $39.9 million, or $0.86 per share, which was
attributable to a provision for restructuring. With the sale of the
direct offices on May 31, 1996, the results for the second quarter
of 1996 do not include the revenue from the direct offices for the
month of June, typically the largest revenue month of the year.
Therefore, any comparisons to the second quarter of 1995 are not
meaningful.
Included in the results for the second quarter of 1996 is a net
gain of $42.6 million on the sale of businesses. This includes a
gain of $47.5 million on the Direct Sales, Service and Long-Distance
Reseller business which is partially offset by a reserve for loss
from the sale of the Videoconferencing Division of $3.9 million and
an actual loss on the sale of the Inmate Calling business of $1.0
million. The gain is net of reserves for issues relating to the
sale of the direct sales offices as well as the closing of the
Company's Videoconferencing Division. Results for the second
quarter of 1995 included a $44.0 million provision for restructuring
consisting primarily of a goodwill impairment based on the adoption
of FAS No. 121.
The Company reported an operating loss of $7.2 million primarily
attributable to having only two months of revenue from the direct
offices for two months in the second quarter of 1996 versus an
operating profit before the provision for restructuring of $1.8
million which includes three months of operations for the direct
offices for the prior year period. In fact, for the two months of
1995 the operating loss was approximately $7 million which is
comparable to the two month period in 1996 as the operating profit
from the direct offices was traditionally always attained in the
third month of the quarter.
Alan Kessman, President and CEO, stated, Second quarter
operating results were affected by two factors, which were expected.
First, as soon as the sale of the Direct Sales, Services and the
Long-Distance Reseller business was announced in April, we moved as
quickly as possible to close this transaction even though the June
month has historically been our strongest month of the quarter.
This action was taken to mitigate the adverse effects of uncertainty
during any prolonged period of transition. We believed that this
was in the best long-term interests of both companies and our
shareholders. As a result, the May 31, 1996 closing removed the
June Direct Sales and Services revenue, traditionally the Company's
strongest direct revenue and profit month from the quarterly
results, without an immediate reduction in related expenses of the
same magnitude. This, combined with the customary adjustments and
structural changes necessitated by the transaction, resulted in a
transition period that is not comparable to previous periods."
Kessman continued, "The Company has now restructured its
organization and is continuing to streamline its operations. The
Company has eliminated its bank debt, and is planning to fund
additional research and development in its core computer telephony
products. Revenue and new orders from our Health Care Division,
Call Center Management Division and National Accounts Division
increased in the second quarter compared to the first quarter of
1996."
Kessman concluded, "With the sale completed and the final stages
of the transition in process, we remain confident that we have
strengthened the Company in all respects. We continue to believe
that our previously discussed Q3 and Q4 goals are reasonable. We
have received a favorable Tribal Court ruling on Unistar and are
awaiting a decision from the Supreme Tribal Court. As we proceed in
our planning and development process for Unistar, we are
increasingly confident that our investment in Unistar will be able
to provide returns that will be significant to our long term
results."
Executone Information Systems, Inc. develops, markets and
supports voice and data systems and health care communications
systems. Products and services include telephone systems, voice
mail systems, in-bound and outbound call center systems, specialized
healthcare communications systems and application consulting
services. Products and services are sold under the EXECUTONE,
INFOSTAR, IDS, LIFESAVER, INFOSTAR/ILS and UNISTAR brand names.
Executone Information Systems Inc.
Consolidated Statements of Operations
(unaudited)
(In Thousands Except Per Share Amounts)
3 Months Ended
June 30,
1996(a) 1995
Revenues 51,982 78,417
Cost of revenues 32,973 46,396
Gross profit 19,009 32,021
Operating expenses:
Product development and
engineering 3,611 3,720
Selling, general and
administrative 22,575 26,454
Provision for restructuring -- 44,042
------ ------
26,186 74,216
Operating Loss (7,177) (42,195)
Interest expense (755) (1,043)
Gain on sale of businesses 42,618 --
Acquisition Costs -- (1,006)
Other income 315 19
Income (Loss) before taxes 35,001 (44,225)
Tax (Provision) benefit (14,009) 4,289
Net income (loss) $20,992 ($39,936)
Earnings (Loss) per share $0.40 ($0.86)
Weighted shares of common
stock & equivalents
outstanding 52,803 46,590
6 Months Ended
June 30,
1996(a) 1995
Revenues 118,948 149,225
Cost of revenues 73,459 88,855
Gross profit 45,489 60,370
Operating expenses:
Product development and
engineering 7,375 7,427
Selling, general and
administrative 48,849 50,258
Provision for restructuring -- 44,042
------ -------
56,224 101,727
Operating Loss (10,735) (41,357)
Interest expense (1,563) (1,958)
Gain on sale of businesses 42,618 --
Acquisition Costs -- (1,006)
Other income 531 295
Income (Loss) before taxes 30,851 (44,026)
Tax (Provision) benefit (12,349) 4,209
Net income (loss) $18,502 ($39,817)
Earnings (Loss) per share $0.35 ($0.86)
Weighted shares of common
stock & equivalents
outstanding 52,773 46,268
(a) Due to the sale of the direct sales offices on May 31, 1996, the
1996 income statement for both the three and six month periods does
not include the revenue and the related operating profit for the
direct offices for the month of June.
Executone Information Systems Inc.
Consolidated Balance Sheets
June 30, Dec. 31,
1996 1995
(Unaudited)
In Thousands
Assets
Current assets
Cash and cash equivalents $ 43,552 $ 8,092
Accounts receivable, net 26,228 48,531
Inventories 22,288 32,765
Prepaid expenses and other
current assets 3,298 6,584
Total current assets 95,366 95,972
Property & equipment, net 8,311 18,462
Intangible Assets, net 19,958 20,022
Deferred Taxes 21,367 29,616
Other Assets 9,615 3,772
Total assets $ 154,617 $ 167,844
Liabilities and stockholders' equity
Current Liabilities
Current portion of
long-term debt $ 993 932
Accounts payable 33,664 30,676
Accrued payroll and related costs 3,612 6,870
Accrued liabilities 17,023 11,851
Deferred revenue and
customer deposits 2,981 19,781
Total current liabilities 58,273 70,110
Long-term Debt 14,006 29,829
Long-term Deferred Revenue -- 2,805
Total Liabilities 72,279 102,744
Stockholders' equity
Common stock 517 517
Preferred stock 7,300 7,300
Additional paid-in capital 78,403 79,668
Retained earnings/(accumu-
lated deficit) (3,882) (22,385)
Total Stockholders' Equity 82,338 65,100
Total Liabilities and Equity $ 154,617 $ 167,844
BOTHELL, Wash. -- August 14, 1996 -- Omega
Environmental, Inc. (Nasdaq National Market: OMEG), the only
nationwide, one-stop source for equipment and services for the
petroleum marketing industry, today announced sales for the first
quarter of fiscal 1997 ended June 30, 1996 of $39.2 million compared
to $40.4 million for the first quarter of fiscal 1996. Revenues in
the prior year period included contributions from several operating
divisions that have since been discontinued or downsized in fiscal
1997 under the Company's ongoing restructuring program.
Operating cash flow (EBITDA) for the first quarter of fiscal
1997 was $1.0 million, approximately equal to the prior year period.
The gross margin was 20.0% in the first quarter of fiscal 1997
compared to 19.8% in the same period of fiscal 1996.
The Company reported a net loss of $783,000, or ($0.02) per
share, for the first quarter of fiscal 1997 versus a net loss of
$343,000, or ($0.01) per share, for the comparable quarter of fiscal
1996. The net loss for the period ended June 30, 1996 is primarily
due to increased interest expense related to additional borrowings
and higher interest rates.
Omega also announced today that Louis J. Tedesco, President and
CEO, has been appointed Chairman of the Board. Omega Founder, Leo
L. Azure, Jr., who has served as Chairman from the Company's
inception in 1990 until 1995 and again from April 1996 to the
present, was named Chairman Emeritus.
In announcing Tedesco's appointment as Chairman, Azure stated,
"Naming Lou as Chairman of the Board is an integral part of Omega's
ongoing program to consolidate management and facilitate the
Company's transition to profitability. Omega's reorganization and
restructuring plans are already beginning to bear fruit and this
decision reaffirms the Board's confidence in Lou and his vision for
the new Omega."
Commenting on first quarter results, Tedesco said, "Omega has
made great progress in reorganizing the Company from 16 virtually
independent companies classified by geographic regions to two
divisions, operating nationally along functional lines. We have
closed unprofitable operations, consolidated locations and reduced
corporate overhead. SG&A also declined during the quarter and is
expected to improve further as we move through the transition
process."
Tedesco added, "We are also moving aggressively to improve our
balance sheet. Various options and underlying warrants were
exercised in June and July which netted proceeds of over $2.7
million to the Company. Also, in August, the Company sold
Convertible Preferred Stock, under Regulation S, which netted
proceeds of $4.7 million to the Company. These funds were used
primarily to reduce debt levels which should significantly reduce
our interest expense and support progress toward our near term goal
of profitability."
Matters discussed in this news release contain forward-looking
statements that involve risks and uncertainties. The Company's
results may differ significantly from the results indicated by
forward-looking statements. Factors that might cause such
differences include, but are not limited to, (i) general economic
and regulatory changes; (ii) construction risks, including weather;
(iii) competition and (iv) the Company's ability to successfully
reorganize operations. These and other risks are detailed from time
to time in the Company's SEC reports, including Form 10-Q for the
quarter ended June 30, 1996.
Omega Environmental, Inc. is the first national provider of
products and services to the fueling facility industry. The Company
operates two divisions in six regions of the U.S. and in Mexico,
providing equipment, parts, service, underground and aboveground
storage tank service, construction, environmental assessment and
remediation and project management for all of the above.
Omega Environmental, Inc. and Subsidiaries
Consolidated Statements of Operations
(in thousands except per share data)
(unaudited)
Three months ended June 30,
1996 1995
Sales $ 39,213 $ 40,409
Cost of sales 31,376 32,428
Gross profit 7,837 7,981
Operating expenses:
Selling, general
and administrative 7,549 7,677
Amortization of goodwill 408 491
Total operating expenses 7,957 8,168
Operating loss (120) (187)
Other income (expense)
Interest income 30 132
Interest expense (773) (396)
Other, net 80 108
Total other income (expense) (663) (156)
Net loss (783) (343)
Net loss per common share $ (0.02) $ (0.01)
Weighted average number of
common shares outstanding 40,111 32,975
CONTACT: Omega Environmental
Louis J. Tedesco, 206/486-4800
or
MWW/STRATEGIC COMMUNICATIONS, INC.
Robert Swadosh (rswadosh@mww.com)
Carolyn Bancone (cbancone@mww.com)
Richard Tauberman (rtauberm@mww.com)
201/507-9500
SAN ANTONIO, TX -- Aug. 14, 1996 -- Argyle Television
Inc. (NASDAQ:ARGL) Wednesday announced second-quarter and six-month
operating results for the period ending June 30, 1996.
Total revenues for the three-month period ending June 30, 1996,
were $18.6 million, up 77.1 percent from total revenues of $10.5
million for the three-month period ended June 30, 1995; total
revenues for the six-month period ending June 30, 1996, were $34.1
million, up 79.5 percent from total revenues of $19.0 million for
the six-month period ending June 30, 1995.
Broadcast cash flow for the 1996 three- and six-month periods
was $8.0 million and $13.8 million, respectively (a 53.8 percent
increase and a 72.5 percent increase over the three- and six-month
periods in 1995, respectively), and earnings before interest, tax
depreciation and amortization (EBITDA) for the 1996 three- and six-
month periods were $7.1 million and $11.9 million, respectively (a
44.9 percent increase and a 67.6 percent increase over the three-
and six-month periods in 1995, respectively).
Adjusted pro forma broadcast cash flow for the three- and six-
month periods ended June 30, 1996, was $9.2 million and $15.8
million, respectively (a 9.5 percent increase and an 11.3 percent
increase over the three- and six-month periods in 1995,
respectively), and adjusted pro forma EBITDA for the three- and six-
month periods was $8.3 million and $13.9 million, respectively (a
2.5 percent increase and a 4.5 increase over the three- and six-
month periods in 1995, respectively).
Adjusted pro forma broadcast cash flow and EBITDA includes the
elimination of certain transitional expenses and the positive
effects of the Providence venture with Clear Channel Communications.
Bob Marbut, Argyle's chairman and chief executive officer,
commented on the company's performance and its future prospects. He
said, "We're very pleased with our progress in the second quarter,
despite sluggish industry revenues, particularly for non-NBC
affiliates.
"The more robust second-half revenue outlook, when combined with
operational efficiencies, the restructuring of our Arkansas stations
and the launch of the Providence venture with Clear Channel, should
make results over the next two quarters much stronger than in the
first six months.
"Longer term, we're bullish on the television station business.
However, the industry's rapid consolidation has made it
strategically important for Argyle to become part of a larger
station group, since it appears unlikely that the company could make
acquisitions fast enough on its own to become a top-tier
consolidator.
"As a result, as was announced on Aug. 12, we are exploring
strategic alternatives that would best serve Argyle and its
shareholders, including the possible sale of the company," Marbut
concluded.
Commenting on the progress of the continuing operational
turnaround of the stations acquired by Argyle since the company's
inception at the beginning of 1995, Blake Byrne, president and chief
operating officer, said, "Thanks to Argyle's rigorous station level
strategic planning and budgeting process, infusion of fresh
management talent at virtually every station, profitable investment
in quality syndicated and local programming, profitable investment
in exclusive local promotional events, selective investment in
critical areas of technology and enhancement of quality local news,
we have been able to:
Argyle's Series A common stock trades on the NASDAQ National
Market System under the symbol "ARGL."
DISCUSSION OF FINANCIAL RESULTS
Historical Results
Three and six months ended June 30, 1996, for the company (WZZM,
WNAC, WAPT, KITV and WGRZ for the three months and KHBS/KHOG for the
month of June only) compared with three and six months ended June
30, 1995, for the company (WZZM, WNAC and WAPT for the three months
and KITV from June 13).
Total revenues for the three months ended June 30, 1996, were
$18.6 million, up 77.1 percent from total revenues of $10.5 million
for the three months ended June 30, 1995. Total revenues for the
six months ended June 30, 1996, were $34.1 million, up 79.5 percent
from total revenues of $19.0 million for the six months ended June
30, 1995.
The increase in three- and six-month total revenues can be
primarily attributed to the acquisitions of KITV in June 1995, WGRZ
in December 1995 and KHBS/KHOG in June 1996, which together added
$7.9 million and $15.4 million, respectively, to total revenues for
the 1996 periods.
For the three months ended June 30, 1996, broadcast cash flow
was $8.0 million, a 53.8 percent increase over $5.2 million for the
three months ended June 30, 1995, and EBITDA was $7.1 million, a
44.9 percent increase over $4.9 million for the 1995 period.
For the six months ended June 30, 1996, broadcast cash flow was
$13.8 million, a 72.5 percent increase over $8.0 million for the six
months ended June 30, 1995, and EBITDA was $11.9 million, a 67.6
percent increase over $7.1 million for the 1995 period.
The improvement in the second quarter and year-to-date broadcast
cash flow and EBITDA can be primarily attributed to the addition of
KITV in June 1995, WGRZ in December 1995 and KHBS/KHOG in June 1996
and, to a lesser extent, the renegotiation of programming contracts
and to strict cost control measures.
Broadcast cash flow margins for the three- and six-month periods
ended June 30, 1996, were 43.0 percent and 40.4 percent,
respectively, vs. 50.1 percent and 42.0 percent for the same periods
during 1995. EBITDA margins for the three- and six-month periods
ended June 30, 1996, were 38.2 percent and 35.0 percent,
respectively, vs. 46.8 percent and 37.5 percent for the same periods
during 1995.
These decreases are due to the acquisition of a lower-margin
station and to certain timing differences in trade and barter
revenues and expenses, which caused a non-cash reduction in reported
broadcast cash flow and EBITDA.
Pro Forma Results
Three and six months ended June 30, 1996, for the company (WZZM,
WNAC, WAPT, KITV and WGRZ for the three and six months and KHBS/KHOG
for the month of June only) plus KHBS/KHOG for the remaining months
compared with the combined results for the three and six months
ended June 30, 1995, for the company (WZZM, WNAC, WAPT and KITV from
June 13) plus KITV, WGRZ and KHBS/KHOG as if all acquisitions had
occurred at the beginning of the respective periods.
On a pro forma basis, total revenues for the three months ended
June 30, 1996, were $20.1 million, up 1.5 percent from $19.8 million
for the three months ended June 30, 1995. On a pro forma basis,
total revenues for the six months ended June 30, 1996, were $37.5
million, up 1.4 percent from $37.0 million for the six months ended
June 30, 1995.
These increases can be attributed primarily to an increase in
national advertising sales and an increase in network compensation
resulting from renegotiation of network affiliation agreements at
four of the company's six stations to date. These revenue gains
were offset by an intentional reduction in the amount of paid
programming. Also, while political revenues increased, they were
lower than anticipated for the six-month period.
No pro forma effect is given to anticipated network compensation
increases earned due to improved performance at certain stations.
Such increases are expected to amount to approximately $0.3 million
on an annual basis.
For the three months ended June 30, 1996, adjusted pro forma
broadcast cash flow was $9.2 million, a 9.5 percent increase over
$8.4 million for the three months ended June 30, 1995. For the six
months ended June 30, 1996, adjusted pro forma broadcast cash flow
was $15.8 million, an 11.3 percent increase over $14.2 million for
the six months ended June 30, 1995.
This improvement is attributable to the increased revenues
described above and due to strict cost control and renegotiation of
programming contracts. For the three and six months ended June 30,
1996, adjusted pro forma EBITDA was $8.3 million, which is
comparable to $8.1 million for the 1995 period. For the six months
ended June 30, 1996, adjusted pro forma EBITDA was $13.9 million, a
4.5 percent increase over $13.3 million for the six months ended
June 30, 1995.
Adjusted pro forma broadcast cash flow and EBITDA includes the
elimination of certain transitional expenses in the area of news,
production and engineering associated with the expansion and
enhancement of news at WGRZ, and the positive effects of The Joint
Program and Marketing Agreement between WNAC and WPRI, owned by
Clear Channel Communications Inc.
Argyle Television Inc.
Consolidated Statement of Operations
(in thousands, except per-share data)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
1995/a 1996/b 1995/a 1996/b
Total revenues $10,464 $18,562 $18,951 $34,057
Station operating expenses 4,471 9,474 9,346 18,372
Amortization of program rights 854 1,282 1,766 2,571
Depreciation and amortization 2,656 5,738 4,528 10,724
Station operating income 2,483 2,068 3,311 2,390
Corporate general and
administrative expenses 349 884 855 1,867
Non-cash compensation expense 30 168 30 337
Operating income 2,104 1,016 2,426 186
Interest expense, net 2,184 3,804 4,093 7,304
(Loss) before extraordinary item (80) (2,788) (1,667)
(7,118)
Extraordinary item, loss on
early retirement of debt 2,704 -- 2,704 --
Net (loss) $(2,784) $(2,788) $(4,371)
$(7,118)
Less: preferred stock dividends -- $118 -- $118
Net (loss) attributable to
common stockholders -- $(2,906)
-- $(7,236)
(Loss) from continuing
operations per common share N/A (26 cents) N/A (65
cents)
Number of shares used
in calculation N/A 11,169 N/A 11,144
Supplemental Financial Data:
Broadcast cash flow/c $5,244 $7,976 $7,963 $13,776
Broadcast cash flow margin 50.1% 43.0% 42.0%
40.4%
EBITDA/d $4,895 $7,092 $7,108 $11,909
EBITDA margin 46.8% 38.2% 37.5%
35.0%
Program payments $749 $1,112 $1,642 $1,909
a/ includes results of WZZM, WNAC and WAPT for the entire period and
the results of KITV from June 13, 1995, through June 30, 1995.
b/ Includes results from WZZM, WNAC, WAPT, KITV and WGRZ for the
entire period and the results of the Arkansas stations from
June 1, 1996, through June 30, 1996.
c/ Broadcast cash flow is defined as station operating income, plus
depreciation and amortization, plus amortization of program
rights, minus program payments. Broadcast cash flow is presented
here not as a measure of operating results and does not purport
to
represent cash provided by operating activities. Broadcast cash
flow should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with generally
accepted accounting principles.
d/ EBITDA is defined as operating income, plus depreciation and
amortization, plus amortization of program rights, minus program
payments, plus non-cash compensation expense. EBITDA is
presented here not as a measure of operating results, but rather
as a measure of debt service ability. EBITDA does not purport to
represent cash provided by operating activities and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with generally accepted
accounting principles.
Argyle Television Inc.
Pro Forma Consolidated Statement of Operations
(in thousands, except per-share data)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
Pro Forma Pro Forma
1995/a 1996/b 1995/a 1996/b
Total revenues $19,809 $20,134 $36,958 $37,519
Station operating expenses 10,264 10,481 20,356 20,696
Amortization of program rights 1,142 1,266 2,424 2,607
Depreciation and amortization/c,d 5,711 6,246 11,422 11,738
Station operating income 2,692 2,141 2,756 2,478
Corporate general and
administrative expenses 349 884 855 1,867
Non-cash compensation expense 30 168 30 337
Operating income 2,313 1,089 1,871 274
Interest expense, net/e 4,418 4,000 8,683 7,662
(Loss) before extraordinary item (2,105) (2,911) (6,812)
(7,388)
Extraordinary item, (loss) on
early retirement of debt (2,704) -- (2,704) --
Net (loss) $(4,809) $(2,911) $(9,516)
$(7,388)
Less: preferred stock dividends/f $355 $355 $711 $711
Net (loss) attributable to
common shareholders $(5,164) $(3,266)$(10,227)
$(8,099)
(Loss) from continuing
operations per common share (46 cents)(29 cents)(90 cents)(71
cents)
Pro forma number of common
shares outstanding 11,347 11,347 11,347 11,347
Supplemental Financial Data:
Broadcast cash flow/g $8,441 $8,506 $14,192 $14,827
Adjusted broadcast cash flow/h N/A 9,199 N/A $15,814
Broadcast cash flow margin/i 42.6% 42.2% 38.4%
39.5%
EBITDA/j $8,092 $7,622 $13,337 $12,960
Adjusted EBITDA/k N/A $8,315 N/A $13,947
EBITDA margin/l 40.9% 37.9% 36.1%
34.5%
Program payments $1,104 $1,147 $2,410 $1,996
/a Amounts include the historical results of all six stations for
the
three- and six-month periods plus combining adjustments for
depreciation and amortization, corporate expenses and interest
expense, net.
/b Amounts include the historical results of all six stations for
the three- and six-month periods plus combining adjustments for
depreciation and amortization, corporate expenses and interest
expense, net. Also, reflects the elimination of certain expenses
at the Arkansas stations which would have been eliminated under
the company's management.
/c Reflects depreciation of equipment and buildings resulting from
the purchase accounting adjustments, net of depreciation already
recorded in historical financial statements. The estimated
useful
lives used for equipment range from 5 to 25 years and the
estimated
useful life used for buildings range from 25 to 39 years.
/d Reflects amortization of intangible assets resulting from
purchase accounting adjustments, net of amortization already
recorded in the historical financial statements. The estimated
useful lives used for these intangible assets were as follows:
FCC licenses -- 15 years; network affiliation agreements -- 15
years; other intangible assets -- 2 to 5 years.
/e Reflects a credit to interest expense recorded in conjunction
with FASB Statement No. 119 relating to interest rate protection
agreements, interest expense on the pro forma debt, and the
amortization of deferred financing costs over the period of the
related financings.
1995 1996
Senior Subordinated Notes at an interest
rate of 9.75% $ 7,313 $ 7,313
Fair value adjustments of interest rate
protection agreements -- non-cash -- (1,021)
Amortization of deferred financing costs 372 372
Bank Credit Agreement at an assumed interest
rate of 8.5%, net 998 998
$ 8,683 $ 7,662
/f Reflects preferred stock dividends relating to the preferred
stock issued in conjunction with the acquisition of the Arkansas
stations. The dividend calculation is shown here for purposes of
calculating loss attributable to common shareholders.
/g Broadcast cash flow is defined as station operating income, plus
depreciation and amortization, plus amortization of program
rights,
minus program payments. Broadcast cash flow is presented here
not
as a measure of operating results and does not purport to
represent
cash provided by operating activities. Broadcast cash flow
should
not be considered in isolation or as a substitute for measures of
performance prepared in accordance with generally accepted
accounting principles.
/h Represents broadcast cash flow plus additional revenues
anticipated due to the Marketing and Programming Agreement with
WPRI, minus certain expenses incurred as a result of significant
enhancements made in the news department at WGRZ.
/i Broadcast cash flow margin is broadcast cash flow divided by
total revenues, expressed as a percentage.
/j EBITDA is defined as operating income, plus depreciation and
amortization, plus amortization of program rights, minus program
payments, plus non-cash compensation expense. EBITDA is
presented
here not as a measure of operating results and does not purport
to
represent cash provided by operating activities. EBITDA should
not
be considered in isolation or as a substitute for measures of
performance prepared in accordance with generally accepted
accounting principles.
/k Represents EBITDA plus additional revenues anticipated due to the
Marketing and Programming Agreement with WPRI, minus certain
expenses incurred as a result of significant enhancements made in
the news department at WGRZ.
/l EBITDA cash flow margin is EBITDA divided by total revenues,
expressed as a percentage.
IRVINE, Calif. -- Aug. 14, 1996 -- Aurora
Electronics Inc. (ASE:AUR) Wednesday announced fiscal 1996 third-
quarter results.
Net revenues for the three months ended June 30, 1996, were
$20.8 million, as compared with fiscal 1995 third-quarter revenues
of $31.9 million.
The decrease in revenue was primarily due to the elimination of
the Premier Division during fiscal 1995, and a significant shortfall
in revenues in the Asset Recovery Services Division due to continued
industry-wide declines in semiconductor memory pricing. Net loss
after preferred dividends for the three months ended June 30, 1996,
was $4.2 million, or 68 cents per share.
This compared with a net loss of $16.5 million, or $1.90 per
share, for the same period last year.
Sales for the nine-month period ended June 30, 1996, were $78.9
million compared with $107.3 million. The decline in revenues for
the comparable nine-month period is due to the discontinuation of
the Premier Division, which accounted for $36.2 million in revenues
during the third quarter of fiscal 1995.
Net loss was $11.2 million, decreasing from $15.4 million loss
for the same comparable period. Loss per share was $1.50 in 1996,
as compared with $1.86 loss per share in the same period in 1995.
Jim C. Cowart, chairman and CEO of Aurora, commented on the
quarter: "Despite what has been a difficult quarter due to
depressed conditions in the market for recycled computer memory
chips, we continue to be confident in the fundamentals and strategy
of the company.
"Unit volumes in Asset Recovery have increased significantly and
there has been continued improvement in operating efficiency. We
believe we are gaining market share in the current environment and
it is our goal to continue this trend despite current market
conditions.
"We have broadened the range of services to include whole
systems recycling, and have been pleased by the response of our
customers. We believe this division will return to profitability in
the next two quarters with these increased service offerings and a
shift in IC recycling mix toward current-generation, 16 megabit
DRAMs.
"In the Parts Support Services Division (formerly the Century
Division), revenues were essentially flat with the same quarter last
year, with weaker results in Europe offset by slightly stronger
revenues in the United States and Canada.
"We continue to focus on broadening penetration of key accounts
in the computer maintenance market, strengthening our information
systems, streamlining operations and reducing costs. Despite
adverse operating conditions, net operating cash flows for the
company remained positive due to aggressive management of working
capital."
With headquarters in Irvine, Aurora Electronics provides
computer OEMs and service organizations with spare parts support and
electronics recycling necessary for the worldwide installed base.
The company has facilities located in the United States, Europe and
Canada.
This new release contains certain forward-looking statements
that involve risks and uncertainties including pricing for memory
chips and computer components described from time to time in the SEC
reports filed by the company.
Aurora Electronics Inc. and Subsidiaries
(In thousands, except per-share data)
(Unaudited)
Consolidated Statement of Operations
Three months ended Nine months ended
June 30, July 2, June 30, July 2,
1996 1995 1996 1995
Net revenues $20,767 $31,865 $78,938 $107,332
Cost of sales 16,141 25,341 59,010 81,616
Gross profit 4,626 6,524 19,928 25,716
Selling, general and
administrative expenses 7,047 7,785 20,491 21,573
Amortization of intangible
assets 366 7,857 1,097 8,712
Restructuring charges and
other -- 4,699 -- 4,699
Operating loss (2,787) (13,817) (1,660) (9,268)
Interest expense (738) (1,424) (5,474) (4,152)
Other income (expense), net (4) (728) (4) (817)
Loss before provision for
income taxes (3,529) (15,969) (7,138) (14,237)
Provision for income taxes (76) 529 3,373 1,135
Net loss (3,453) (16,498) (10,511) (15,372)
Dividends on preferred
stock (700) -- (700) --
Net loss applicable to
common stockholders $(4,153) $(16,498) $(11,211) $(15,372)
Net loss per share of
common stock $(0.68) $(1.90) $(1.50) $(1.86)
Weighted average number
of common and common
equivalent shares 6,087 8,686 7,461 8,280
Condensed Consolidated Balance Sheet
June 30, Sept. 30,
1996 1995
Assets
Cash $ 76 $ 81
Trade receivables, net 8,092 15,828
Inventories 4,494 4,021
Deferred income taxes 500 1,532
Other current assets 940 516
Total current assets $14,102 $21,978
Property, plant and equipment, net 5,971 5,752
Intangible and other assets 49,569 52,986
Total assets $69,642 $80,716
Liabilities and Stockholders' Equity
Total current liabilities $15,347 $21,782
Reserve for discontinued operations 2,310 2,504
Long-term debt 23,681 44,092
Redeemable convertible preferred stock 40,700 --
Common stockholders' equity (12,396) 12,338
Total liabilities and equity $69,642 $80,716
FREMONT, Calif. -- August 14, 1996 -- SyQuest
Technology, Inc. (NASDAQ:SYQT) today reported a net loss of $41.3
million, or $3.61 per share, on net revenues of $29.5 million for
the third quarter ended June 30, 1996. This compares with net
income of $1.7 million, or $0.15 per share, on net revenues of $68.8
million for the third quarter of 1995.
For the nine months ended June 30, 1996, SyQuest posted a net
loss of $126.2 million, or $11.09 per share, on revenues of $156.6
million. This compares with net income of $7.3 million, or $0.62
per share, on revenues of $211.2 million in the comparable 1995
period.
The company said the decline in third quarter earnings and
revenues was due to lower unit shipments and price reductions on its
core product line of removable cartridge hard drives. The lower
average selling prices necessitated a charge against revenues of
$5.1 million in the third quarter, for price protection of channel
inventories.
Due to a shift in revenues from profitable core products to
unprofitable EZ135 system products, the company revised its lower of
cost or market and excess inventory reserve requirements, providing
an additional reserve of approximately $5.5 million in the quarter.
A lower of cost or market reserve of $1.0 million was also created
for the SQ3270 drive and system products.
During the third quarter SyQuest installed a new management
team, including Edward L. Marinaro, Chairman of the Board; Edward L.
Harper, President and CEO; and John W. Luhtala, Chief Financial
Officer. The company also completed the restructuring plan
announced earlier in the year, with the closure of its Singapore
plant and transfer of production responsibilities to the
manufacturing facility in Penang, Malaysia.
"The rapid decline in unit shipments and in the selling prices
of our non- EZ products was not offset by revenues generated by our
EZ 135 system and cartridge products," said Luhtala. "Drive unit
shipments were lower by 79 percent and average selling prices by 12
percent in the third quarter, compared to a year ago.
"During the third quarter, we began shipments of the newest
generation of our EZ product family, a 3 1/2 inch, 230 megabyte
system, the EZ Flyer 230. A substantial portion of fourth quarter
revenue is expected to derive from the sale of EZ Flyer 230 system
and cartridge products," Luhtala said. He added that SyQuest is
currently taking orders for its 3 1/2 inch, 1.3 gigabyte SyJet
system products for future shipment.
"Although we are continuing to execute our turnaround plan,
adjusting operations to reduce losses and rebuild the business, we
will not return to profitability in the fourth quarter," Luhtala
said.
SyQuest Technology, Inc., founded in 1982, is headquartered in
Fremont, Calif. and maintains manufacturing plants in Fremont and
Penang, Malaysia, with additional facilities in Colorado, Europe,
Japan and Singapore. The company offers removable Winchester
technology systems for Windows 95, Windows, Windows NT, Apple
Macintosh, MS-DOS, UNIX, SGI, SunOS and Novell platforms. SyQuest
common stock is traded on the NASDAQ National Market System.
SyQuest's site on the World Wide Web is at http://www.syquest.com.
Except for the historical information contained herein, the
matters presented in this news release are forward-looking
statements that involve risks and uncertainties, including the
timely development and market acceptance of new products and
upgrades to existing products, the impact of competitive products
and pricing, and other risks detailed from time to time in the
company's filings with the Securities and Exchange Commission. In
particular, see Forms 10-Q and 10-K.
SYQUEST TECHNOLOGY, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(unaudited)
Three months ended Nine months ended
June 30, June 30,
1996 1995 1996 1995
Net revenues $29,459 $68,787 $155,571 $211,169
Cost of revenues 46,635 50,360 195,728 155,355
Provision for losses on
purchase commitments 6,523 -- 18,195 --
-------- -------- --------- --------
Gross Profit (loss) (23,699) 18,427 (58,352) 55,814
Operating Expenses:
Selling, general and
administrative 10,113 10,225 38,928 29,638
Research and development 5,932 6,214 20,452 17,484
Restructuring cost 1,860 -- 5,460 --
------- ------- --------- ------
Total operating expenses 17,905 16,439 64,840 47,122
------- ------- --------- -------
Income (loss) from
operations (41,604) 1,988 (123,192) 8,692
Net interest income (expense) (425) 263 (743) 939
Other income 712 -- 712 --
------- ------- --------- -------
Income (loss) before
income taxes (41,317) 2,251 (123,223) 9,631
Provision for income taxes -- 540 3,000 2,311
------- ------- ---------- -------
Net income (loss) $(41,317) $1,711 $(126,223) $7,320
Income (loss) per share:
Net income (loss) $(3.61) $0.15 $(11.09) $0.62
Common and common equivalent
shares used in computing
per share amounts 11,450 11,676 11,386 11,804
ATLANTA, GA -- Aug. 14, 1996 -- Metromedia
International Group Inc. (MIG) (ASE:MMG) Wednesday reported
financial results for the second quarter of 1996.
Revenues for the three months ended June 30, 1996, were $38.0
million, compared with revenues of $40.8 million for the same period
last year. The company reported an operating loss for the quarter
of $10.1 million, compared with an operating loss of $7.5 million
for the second quarter of 1995.
The net loss for the quarter was $18.9 million, or a loss of
$.44 per share, compared with a loss of $16.7 million, or $.80 per
share, for the same period last year.
Revenues for the six months ended June 30, 1996, were $68.8
million, compared with revenues of $78.4 million for the same period
last year. The company reported an operating loss for the first six
months of 1996 of $20.1 million, compared with an operating loss of
$18.2 million for the same period of 1995.
The net loss for the six months ended June 30, 1996, was $38.0
million, or a loss of $.89 per share, compared with a loss of $37.1
million, or a loss of $1.77 per share, for the first six months of
1995.
Commenting on the second quarter results, John D. Phillips,
president and chief executive officer, said: "The results for the
second quarter show continued growth in overall subscribers for our
Communications Group, both for our consolidated and unconsolidated
Joint Ventures.
"Wireless cable television subscribers grew to 53,706 in the
aggregate, a 101% increase over the past year. Paging subscribers
increased to 29,107 in the aggregate, a 354% increase over the past
year.
"The results of the Entertainment Group's activities demonstrate
that our distribution engine is moving forward with the recent
theatrical release of Goldwyn's `I Shot Andy Warhol' and Orion's
`Original Gangstas' along with LIVE Entertainment's `The Arrival'
and `The Substitute.' In addition, our Orion Pictures and Goldwyn
Entertainment subsidiaries have commenced preproduction on a number
of motion picture projects."
On July 2, 1996, the company successfully completed the
following transactions:
A public offering of 18.4 million shares of common stock
generating gross proceeds of $202.4 million. Proceeds will
be used to finance the build-out of MIG's Communications
Group's operations in Eastern Europe and other emerging
markets and were used, in part, to pay existing debt.
The acquisition of The Samuel Goldwyn Company and Motion
Picture Corp. of America. The acquisition of Goldwyn
expands the Entertainment Group by adding a valuable library
of more than 850 films and television titles including
numerous Hollywood classics and recently acclaimed films,
and what MIG believes is the leading specialized theater
circuit in the United States with 140 screens.
A $300.0 million secured credit facility: to refinance the
indebtedness of Orion Pictures Corp. and Goldwyn's
existing indebtedness, to finance the production,
acquisition and distribution of entertainment products and
for general corporate purposes.
Metromedia International Group is a global entertainment, media
and communications company whose primary operations are focused on
two business groups:
The Entertainment Group, through Orion Pictures Corp., which
is engaged primarily in the development, production, acquisition
and worldwide distribution of motion pictures, television
programming and prerecorded video cassettes, and
The Communications Group, operated through Metromedia
International Telecommunications, Inc., which owns interest
in, and participates along with local partners in the
management of joint ventures which operate wireless cable
television systems, paging systems, an international toll
call service, a Trunked Mobile Radio service and radio
stations in Eastern Europe and the former Soviet Republics.
METROMEDIA INTERNATIONAL GROUP INC.
Consolidated Condensed Statements of Operations
(in thousands, except per-share amounts)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1995
Revenues $ 37,988 $ 40,755 $ 68,796 $
78,433
Costs and expenses:
Costs of rentals and
operating expenses 29,745 35,144 54,834
72,012
Selling, general and
administrative 16,338 12,578 30,404
23,552
Depreciation and
amortization 1,967 493 3,690
1,021
Operating loss (10,062) ( 7,460) (20,132)
(18,152)
Interest expense, including
amortization of debt discount 7,676 8,234 15,955
17,170
Interest income 1,156 881 2,401
1,698
Interest expense, net 6,520 7,353 13,554 15,472
Chapter 11 reorganization items 83 168 137
935
Loss before provision for
income taxes and equity in
losses of joint ventures (16,665) (14,981) (33,823)
(34,559)
Provision for income taxes 200 100 400
300
Equity in losses of Joint
Ventures 1,985 1,633 3,768
2,221
Net loss $(18,850) $(16,714) $(37,991)
$(37,080)
Primary loss per common share $ (0.44) $ (0.80) $ (0.89) $
(1.77)
METROMEDIA INTERNATIONAL GROUP INC.
Business Segment Information
(in thousands)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
1996 1995 1996 1995
Entertainment Group:
Revenues $ 35,212 $ 38,550 $ 62,853 $ 75,117
Cost of rentals and
operating expenses (29,732) (35,144) (54,834) (72,012)
Selling, general &
administrative (4,576) (5,614) (9,488) (10,986)
Depreciation & amortization (329) (154) (596) (296)
Operating income (loss) 575 (2,362) (2,065) (8,177)
Communications Group:
Revenues 2,775 2,205 5,939 3,316
Cost of rentals and
operating expenses (13) -- -- --
Selling, general &
administrative (8,969) (6,964) (16,494) (12,566)
Depreciation & amortization (1,634) (339) (3,083) (725)
Operating loss (7,841) (5,098) (13,638) (9,975)
Corporate Headquarters:
Revenues 1 -- 4 --
Cost of rentals and
operating expenses -- -- -- --
Selling, general &
administrative (2,793) -- (4,422) --
Depreciation & amortization (4) -- (11) --
Operating loss (2,796) -- (4,429) --
Consolidated:
Revenues 37,988 40,755 68,796 78,433
Cost of rentals and
operating expenses (29,745) (35,144) (54,834) (72,012)
Selling, general &
administrative (16,338) (12,578) (30,404) (23,552)
Depreciation & amortization (1,967) (493) (3,690) (1,021)
Operating loss (10,062) (7,460) (20,132) (18,152)
Interest expense (7,676) (8,234) (15,955) (17,170)
Interest income 1,156 881 2,401 1,698
Chapter 11 losses (83) (168) (137) (935)
Provision for income taxes (200) (100) (400) (300)
Equity in losses of joint
ventures (1,985) (1,633) (3,768) (2,221)
Net loss $(18,850) $(16,714) $(37,991) $(37,080)
MIAMI, Fla. -- August 14, 1996 -- New Valley
Corporation (OTC: NVYL) today announced financial results for the
second quarter ended June 30, 1996.
Second quarter 1996 revenues were $34.5 million, compared to
revenues of $10.0 million in the second quarter of 1995. The
Company recorded a loss from continuing operations of $4.8 million
in the 1996 second quarter versus income of $2.3 million in 1995.
Net loss applicable to common shares in the 1996 quarter was $20.4
million, or $2.13 per share, compared to a gain of $12.6 million, or
$1.31 per share, in the second quarter of 1995.
For the six months ended June 30, 1996, revenues were $71.2
million, compared to $17.7 million for the first six months of 1995.
The Company recorded a loss from continuing operations of $9.6
million for the 1996 six-month period, compared to income of $8.9
million for the 1995 period. Net loss applicable to common shares
in the first six months of 1996 was $36.5 million, or $3.81 per
share, compared to a gain of $7.6 million, or $0.79 per share, for
the first six months of 1995.
"New Valley's revenues continued to grow in the second quarter
of 1996 due largely to the operation of the Ladenburg, Thalmann
investment banking firm, New Valley's commercial real estate, and
the recently acquired Thinking Machines Corporation," said Bennett
S. LeBow, chairman and chief executive of New Valley Corporation.
"However, operating income for the first and second quarters of 1996
was lower than last year's primarily due to expenses related to the
Company's investment in RJR Nabisco. In the second half of 1996 and
beyond, we will work to increase the profitability of our operating
businesses -- as well as looking to identify new acquisition
opportunities -- in order to maximize value for New Valley
shareholders."
New Valley is principally engaged, through Ladenburg, Thalmann &
Co. Inc., in the investment banking and brokerage business, through
its New Valley Realty division, in the ownership and management of
commercial real estate, and in the acquisition of operating
companies.
NEW VALLEY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in Thousands, Except Per Share Amounts)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1995
Revenues:
Principal transactions,
net $6,172 $2,601 $14,910
$2,601
Commissions 4,820 1,738 8,683
1,738
Real estate leasing 5,958 11,664
Computer sales and service 4,098 8,797
Interest and dividends 4,642 3,938 9,826
10,569
Other income 8,857 1,755 17,351
2,793
Total revenues 34,547 10,032 71,231 17,701
Cost and expenses:
Operating, general and
administrative 34,170 7,455 71,314
9,797
Interest 4,739 9,263
Reversal of restructuring
accruals
(2,044)
Total costs and expenses 38,909 7,455 80,577
7,753
Income (loss) from continuing
operations before
income taxes (4,362) 2,577 (9,346)
9,948
Provision for income taxes 400 293 300
1,033
Income (loss) from
continuing operations (4,762) 2,284 (9,646)
8,915
Discontinued operations:
Income from discontinued operations,
net of income taxes 2,682
4,080
Net income (loss) (4,762) 4,966 (9,646)
12,995
Dividends on preferred
shares - undeclared (15,646) (18,647) (31,108)
(39,059)
Excess of carrying value of
redeemable preferred
shares over cost of
shares purchased 26,266 4,279
33,624
Net income (loss) applicable
to Common Shares $(20,408) $12,585 $(36,475)
$7,560
Income (loss) per common and equivalent share:
From continuing
operations $(2.13) $1.03 $(3.81)
$0.36
Discontinued operations 0.28
0.43
Net income (loss) per
Common Share $(2.13) $1.31 $(3.81)
$0.79
Number of shares used
in computation 9,578 9,572 9,578
9,526
LISLE, Ill., -- Aug. 14, 1996 -- Rykoff-Sexton, Inc. (NYSE:
RYK) said today it has filed a Form 10Q with the Securities and
Exchange Commission for the nine week period ended June 29, 1996,
representing the transition period between the close of its 1996
fiscal year and the beginning of its newly adopted fiscal year.
Rykoff-Sexton changed its fiscal year from the Saturday closest
to April 30 to the Saturday closest to June 30 to conform its
quarterly reporting schedule with other companies in the foodservice
industry.
As reported in its 10Q for the nine week transition period ended
June 29, 1996, the company's sales amounted to $519.9 million with a
net loss of $60.2 million, equal to $2.51 per share. The net loss
included $57.6 million (pre- tax) of restructuring reserves along
with significant levels of other one-time transition costs. Results
for the prior year period are not comparable, since they do not
include the operations of US Foodservice and because of the
recording of the restructuring reserves and other one-time costs in
the transition period. The operating results for the transition
period should not be indicative of the company's operating
performance in fiscal 1997. The company's first full fiscal quarter
in the new fiscal year will end September 28, 1996.
The company had previously announced its intention to record
restructuring cost reserves and other one-time charges in connection
with closures of duplicate facilities, product consolidation,
realignment of inventory, severance and other integration costs
related to its merger with US Foodservice completed on May 17, 1996.
Rykoff-Sexton, with annualized sales of approximately $3.5
billion, provides food and related non-food items to restaurants and
other dining establishments, health care and educational facilities
and wherever food is prepared away from home. Distribution centers,
manufacturing operations and contract and design facilities are
located throughout the United States.
CONTACT: Richard J. Martin of Rykoff-Sexton, Inc., 630-971-6598; or
Roger S. Pondel of Pondel Parsons & Wilkinson, 310-207-9300
ROCKY HILL, Conn. -- Aug. 14, 1996 -- Ames Department
Stores, Inc. (Nasdaq: AMES) today reported that its second-quarter
net income increased to $4.5 million, or $0.21 per share, for the
period ended July 27, 1996, compared with last year's second-quarter
net income of $3.2 million, or $0.15 per share.
Last year's second-quarter results included property gains of
$5.1 million, compared with $0.4 million this year. This year's
second- quarter income before other gains was $6.0 million, a $6.5
million improvement compared with last year's loss of $0.5 million.
The net loss for the 26 weeks ended July 27, 1996, was $2.5
million, or $0.12 per share, compared with a net loss of $8.0
million, or $0.40 per share, last year. The year-to-date loss
before other gains was $3.9 million, a $13.6 million improvement
compared with last year's loss before other gains of $17.5 million.
Net sales for the second quarter were $499.1 million, compared
with $500.2 million in the prior year's second quarter, a decrease
of 0.2 percent. Net sales for the year to date were $937.8 million,
compared with $938.5 million last year. Comparable-store sales for
the quarter decreased 1.2 percent while comparable-store sales for
the year to date decreased 1.4 percent.
Joseph R. Ettore, President and Chief Executive Officer, said,
"Our second-quarter net income was nearly twice the $2.3 million
projected in the business plan, an improvement primarily
attributable to a better-than-plan gross margin rate and continued
stringent expense control. In addition, despite below-plan sales,
merchandise inventories are well-controlled and at the end of the
quarter were $39 million below the same period last year.
"We expect that the second half of the fiscal year, especially
the holiday season, will be extremely competitive and have planned a
strong advertising and merchandising program to take advantage of
promotional opportunities. At the same time, our intention is to
minimize margin exposure to the fullest extent possible by ensuring
that inventories are maintained in line with anticipated sales
levels and by continuing to reduce expenses and improve operating
efficiencies," he said.
The company's business plan, filed on Form 8-K with the
Securities and Exchange Commission on June 11, 1996, anticipates a
third-quarter net loss of approximately $3.3 million and fourth-
quarter net income of approximately $26.7 million, Ettore noted.
"On August 1, we opened a new store in Sussex, N.J., and
reopened a store in Huntingdon, Pa., which had been closed by
flooding in January 1996, to enthusiastic customer response. Next
month we'll hold grand openings in Dover, N.J., and Trexlertown,
Pa., bringing the number of new stores in 1996 to 13, the most Ames
has opened in one year since 1989," Ettore said.
Ames, which operates 301 stores in 14 Northeastern states and
the District of Columbia, is the nation's fifth-largest discount
retailer with annual total sales of $2.1 billion.
For more information on Ames visit the corporate Web site at " target=_new>http://www.AmesStores.com">http://www.AmesStores.com.
AMES DEPARTMENT STORES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
(Unaudited)
For the Thirteen For the
Twenty-six
Weeks Ended Weeks Ended
July 27, July 29, July
27, July 29
1996 1995 1996
1995
TOTAL SALES $525,217 $526,625 $980,894 $983,693
Less: Leased department sales 26,110 26,437 43,120 45,193
NET SALES 499,107 500,188 937,774 938,500
COSTS, EXPENSES AND (INCOME):
Cost of merchandise sold 359,382 364,188 680,647 687,155
Selling, general and
administrative expenses 134,609 137,217 262,411 270,258
Leased department and other
operating income (7,221) (7,708) (12,995) (13,962)
Depreciation and amortization
expense 2,649 2,143 5,269 4,084
Amortization of the excess of
revalued net assets over
equity under fresh-start
reporting (1,539) (1,539) (3,077) (3,077)
Interest and debt expense, net 5,206 6,415 9,445 11,536
INCOME (LOSS) BEFORE OTHER
(CHARGES) AND GAINS 6,021 (528) (3,926) (17,494)
Gain on disposition of
properties 395 5,099 395 6,090
INCOME (LOSS) BEFORE INCOME
TAXES 6,416 4,571 (3,531) (11,404)
Income tax benefit (provision) (1,902) (1,383) 1,047 3,451
NET INCOME (LOSS) $4,514 $3,188 ($2,484) ($7,953)
WEIGHTED AVERAGE NUMBER OF
COMMON AND COMMON EQUIVALENT
SHARES OUTSTANDING 21,680 21,531 20,465 20,127
NET INCOME (LOSS) PER SHARE $0.21 $0.15 ($0.12) ($0.40)
Results of Operations as a Percent of Net Sales:
Net sales 100.0% 100.0% 100.0% 100.0%
Cost of merchandise sold 72.0 72.8 72.6 73.2
Gross margin 28.0 27.2 27.4 26.8
Selling, general and
administrative expenses 27.0 27.4 28.0 28.8
Leased department and other
operating income (1.4) (1.5) (1.4) (1.5)
Depreciation and amortization
expense 0.5 0.4 0.5 0.4
Amortization of the excess of
revalued net assets over
equity under fresh-start
reporting (0.3) (0.3) (0.3) (0.3)
Interest and debt expense, net 1.0 1.3 1.0 1.2
Income (loss) before other
(charges) and gains 1.2 (0.1) (0.4) (1.8)
Gain on disposition of
properties 0.1 1.0 --- 0.6
Income (loss) before income
taxes 1.3 0.9 (0.4) (1.2)
Income tax benefit (provision) (0.4) (0.3) 0.1 0.4
Net income (loss) 0.9% 0.6% (0.3)% (0.8)%
(Please see the accompanying condensed notes to these
consolidated condensed financial statements)
AMES DEPARTMENT STORES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(in Thousands)
(Unaudited)
July 27, Jan. 27,
July 29,
1996 1996 1995
ASSETS
Current Assets:
Cash and short-term investments $l8,226 $14,185 $19,783
Receivables 25,544 14,478 23,388
Merchandise inventories 458,940 402,177 498,260
Prepaid expenses and other current
assets 16,051 12,793 13,249
Total current assets 518,761 443,633 554,680
Fixed Assets 85,915 78,487 59,607
Less -- Accumulated depreciation
and amortization (25,233) (20,259) (11,828)
Net fixed assets 60,682 58,228 47,779
Other assets and deferred charges 5,665 3,965 4,834
$585,108 $505,826 $607,293
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable
Trade $137,595 $112,682 $126,210
Other 39,846 43,636 34,202
Total accounts payable 177,441 156,318 160,412
Note Payable -- revolver 100,720 4,284 114,051
Current portion of long-term debt and
capital lease obligations 16,241 17,347 19,485
Self-insurance reserves 36,081 39,003 43,850
Accrued expenses and
other current liabilities 49,969 54,943 54,994
Restructuring reserve 19,827 30,623 1,227
Total current liabilities 400,279 302,518 394,019
Long-term debt 13,267 23,159 25,919
Capital lease obligations 27,525 29,372 34,799
Other long-term liabilities 5,968 6,322 8,074
Unfavorable lease liability 17,847 18,672 21,961
Excess of revalued net assets over
equity under fresh-start reporting 39,404 42,480 45,557
Commitments and contingencies --- --- ---
Stockholders' Equity:
Common stock 204 205 201
Additional paid-in capital 80,759 80,759 80,759
Retained earnings (accumulated deficit) (145) 2,339 (3,996)
Total stockholders' equity 80,108 83,303 76,964
$585,108 $505,826 $607,293
Condensed Notes to News Release Financial Statements
Basis of Presentation: In the opinion of management, the
accompanying consolidated condensed financial statements of Ames
Department Stores, Inc., and subsidiaries (collectively the
"Company") contain all adjustments necessary for a fair presentation
of such financial statements for the periods presented. Certain
prior year items have been reclassified to conform to the current
year presentation. Due to the seasonality of the Company's
operations, the results of operations for the interim period ended
July 27, 1996 may not be indicative of total results for the full
year. Certain information normally included in financial statements
prepared in accordance with generally accepted accounting principles
has been condensed or omitted. The accompanying financial statements
should be read in conjunction with the financial statements and
notes thereto included in the Company's Form 10-K filed in April,
1996.
Earnings Per Common Share: Earnings per share was determined
using the weighted average number of common and common equivalent
shares outstanding. Common stock equivalents and fully diluted
earnings per share were excluded for the periods with net losses as
their inclusion would have reduced the reported loss per share.
Fully diluted earnings per share was equal to primary earnings per
share for the quarters ended July 27, 1996 and July 29, 1995.
Inventories: Inventories are valued at the lower of cost or
market. Cost is determined by the retail last-in, first-out (LIFO)
cost method for all inventories. No LIFO reserve was necessary at
July 27, 1996, January 27, 1996 and July 29, 1995.
Debt: The Company has an agreement with BankAmerica Business
Credit, Inc., as agent, and a syndicate consisting of seven other
banks and financial institutions, for a secured revolving credit
facility of up to $300 million, with a sublimit of $100 million for
letters of credit (the "Credit Agreement"). The Credit Agreement is
in effect until June 22, 1997, is secured by substantially all of
the assets of the Company, and requires the Company to meet certain
quarterly financial covenants. The Company is in compliance with
these financial covenants through the quarter ended July 27, 1996.
Income Taxes: The Company's estimated annual effective income
tax rate for each year was applied to the loss incurred before
income taxes for the twenty- six weeks ended July 27, 1996 and July
29, 1995 to compute non-cash income tax benefits of $1.0 million and
$3.5 million. respectively. The same method was used to compute
income tax provisions of $1.9 and $1.4 million for the second
quarters of 1996 and 1995, respectively. The Company currently
expects that, as a result of the seasonality of the Company's
business, this year's income tax benefit will be offset by non-cash
income tax expense in the remaining interim periods. The income tax
benefits are included in other current assets in the balance sheets
as of July 27, 1996 and July 29, 1995.
CONTACT: Marge Wyrwas, 860-257-2659, or Bill Roberts, 860-257-2666, or
Lynn Riemer, 860-257-2655, all of Ames
NEW YORK, NY -- Aug. 14, 1996 -- Alliance Entertainment Corp.
(NYSE: CDS) today reported sales of $163.2 million for the second
quarter ended June 30, 1996, a 2.8% increase over the $158.8 million
posted for the same period last year. The Company reported a net
loss for the period of $21.9 million or ($0.59) per share, versus
net income of $2.6 million or $0.07 per share reported for the
comparable period last year. The loss includes non-recurring charges
of $17.5 million related to the consolidation and restructuring of
the Company's distribution operations as well as charges related to
the current industry climate.
For the six months ended June 30, 1996, sales grew approximately
9.8% to $339.4 million versus $309.0 million for the same six months
last year. The net loss was approximately $26.5 million or ($0.72)
per share compared to net income of $4.3 million or $0.12 per share
in 1995's first six months. In addition to the $17.5 million of non-
recurring charges recorded in the second quarter, the loss includes
one-time charges of $2.5 million related to the termination of the
Company's merger agreement with Metromedia and $400,000 in relation
to the Company's previously announced consolidation plan. During
the period the Company experienced lower than anticipated sales and
higher than anticipated returns in a weak retail music environment,
particularly affecting the independent label side of the business,
which is more sensitive to the lack of hit product releases.
Joseph J. Bianco, Chairman and CEO of Alliance, said, "While the
overall results are not what we had hoped for, they are in line with
previous estimates and market expectations. Additionally, we feel
that the strength and continued growth of our content-based
operations, combined with the restructuring and market share gains
of our distribution operations, bode well for the future, especially
in light of the weak, but we believe temporary condition, of the
music industry as a whole."
Alliance Entertainment Corp. is engaged in the distribution of
music and music related products and the acquisition and
exploitation of entertainment properties through acquisition,
license, management agreement or otherwise.
ALLIANCE ENTERTAINMENT CORP.
OPERATING RESULTS FOR THE SECOND QUARTER
AND SIX MONTHS ENDED JUNE 30, 1996
(In millions except per share data)
Second Quarter Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1995
Net Sales $163.2 $158.8 $339.4
$309.0
Depreciation
and amortization $4.7 $3.7 $9.5 $7.3
EBITDA (before
non-recurring charges).. $3.6 $12.2 $9.6 $22.2
EBITDA.. $(13.9) $12.2 $(10.8)
$22.2
Pre-tax income (loss) $(28.1) $4.5 $(37.9)
$7.5
Net income (loss) $(21.9) $2.6 $(26.5)
$4.3
Earnings (loss) per share $(0.59) $0.07 $(0.72)
$0.12
Weighted avg. shares
outstanding and
equivalents 36,996,375 37,199,379 36,797,213 36,070,404
CONTACT: Timothy Dahltorp, CFO of Alliance Entertainment Corp.,
212-935-6662; or Jeffrey Goldberger of Stern & Company, 212-777-
7722
CINCINNATI, OH -- Aug. 14, 1996 -- Zonic Corporation (OTC: ZNIC)
reported a loss and decline in sales for its fiscal first quarter.
For the three months ended June 30, 1996, Zonic reported an
operating loss of $107,164 on sales of $745,102 compared to an
operating loss of $86,368 on sales of $1,252,462 in the comparable
year-ago period. Net loss for the period was $192,224 or 6 cents
per share compared to a net profit for the prior year period of
$1,542,156 or 50 cents per share. The prior year period included
gains on the sale of an asset and debt restructuring amounting to
$1,814,302 or 59 cents per share.
Jim Webb, president and chief executive officer, attributed the
sales decline to new product delays in manufacturing. "In the first
quarter, we began production of Medallion, our new 8 channel PC
Windows based FFT analyzer and had some unanticipated vendor
problems with the production start up. While those problems are now
behind us, both Medallion and other product shipments that we had
planned for the first quarter were delayed into the second quarter."
Webb noted that cost of products and services sold as a
percentage of sales decreased to 46.5 compared to 53.6 in the prior
year period. He said selling and administrative expenses decreased
by $130,000.
"I'm disappointed that we didn't maintain a positive curve on
revenues in the first quarter, but am very encouraged by the
dedication of our staff to increasing the top line while also
increasing gross profit and holding down our operating expenses."
Webb said.
Webb commented that total current liabilities increased
substantially in the first quarter because certain bank loans which
had previously been classified as long term debt are now classified
as short term since they mature in the next 12 months. He said the
company continued to experience serious cash flow problems and it
was unable to improve materially on the aging of its accounts
payable and certain other accrued liabilities.
Zonic Corporation develops, manufactures and markets proprietary
software and computerized test and measurement instrumentation.
Zonic systems have broad application in product engineering and
design, testing, and machine monitoring. Company headquarters are
in the Greater Cincinnati metropolitan area.
Zonic Corporation
Statement of Operations
(Unaudited)
Three Months Ended June 30
1996 1995
Product and service revenues $ 745,012 $ 1,252,462
Operating profit (loss) (107,164) (86,368)
Income (loss) before taxes
and extraordinary item (192,224) 1,144,881
Net income(loss) (192,224) 1,542,156
Income(loss) per share $ (0.06) $ 0.50
Weighted average
shares outstanding 3,044,136 3,094,136
Backlog of orders $ 1,315,000 $ 1,168,000
Balance Sheet
(Unaudited)
June 30, March 31,
1996 1996
Assets:
Total current assets $ 1,455,895 $ 1,775,581
Property and equipment-net 1,362,087 1,467,185
Total assets $ 2,817,982 $ 3,242,766
Liabilities:
Total current liabilities $ 7,594,903 $ 3,742,055
Long-term obligations -- 4,070,000
Deferred rent 277,277 292,685
Shareholders' deficit (5,054,198) (4,861,974)
Total liabilities &
shareholders' equity $ 2,817,982 $ 3,242,766
NEW YORK, NY -- Aug. 14, 1996 -- The following Schuylkill Energy
Resources, Inc. (SER) 'BBB-' rated securities are placed on
FitchAlert with negative implication: $83.7 million Schuylkill
County Industrial Development Authority (PA) Resource Recovery
Revenue Refunding Bonds (SER Project) Series 1993 (Tax-Exempt) and
$23.4 million Senior Notes (Taxable). FitchAlert Negative indicates
the rating may be lowered depending upon the outcome of events. SER
is the owner and operator of an 80 megawatt (net) circulating
fluidized bed cogeneration facility selling energy to Pennsylvania
Power & Light Co. (PPL) pursuant to a long-term contract.
The rating action follows Fitch discussion with both PPL and a
meeting at the project site with SER management. FitchAlert
negative relates to two developing legal circumstances concerning
PPL's interpretation of the power sales contract and PPL's vigor in
cutting costs in order to maintain its competitiveness. While Fitch
notes that PPL is not seeking to abrogate its contractual
obligations, Fitch is concerned SER's cash flow and coverage of debt
service would be substantially weakened by adverse rulings. The
existence of the legal problems has already led SER to give notice
to creditors of three non-payment events of default.
The most significant legal problem stems from PPL's
dissatisfaction with SER's ability, or willingness, to document that
SER's affiliate, Reading Anthracite Company, is complying with PURPA
qualifying cogeneration facility (QF) requirements. PPL has
petitioned the FERC to decertify SER as an Anthracite Culm-Fired
Cogeneration Facility. A FERC ruling for PPL's petition would
recast SER as an Anthracite Culm-Fired Small Power Production
Facility and, pursuant to the sales contract, the energy price would
reset to 5 cents/kwh from 6.6 cents. Based on SER's expected energy
production, the 25% price reduction would cut annual revenue by
about $10 million and, should SER fail to recover its QF status,
then debt service coverage would be marginal.
Secondly, SER is challenging PPL's interpretation of a minimum
generation emergency. Such an emergency gives PPL under the sales
contract the right to curtail taking energy from SER during the
emergency period. Over time, SER has experienced more frequent
curtailment - over 80 times in 1995 - which reduces revenue,
requires additional fuel expense for boiler restart and could cause
boiler degradation. SER initiated an anti-trust claim against PPL,
which was rejected by a U.S Judge and has filed its notice of appeal
in the Third Circuit Court of Appeals.
Operationally SER is performing well and in line with SER's long
term business plan. Through June 1996, the year-to-date capacity
factor has been exceptional at 94.4%, well over 1996's budget of
87%. In November a major overhaul of the turbine is planned and
this scheduled outage causes the 87% projected annual capacity
factor. For 1995, despite PPL's curtailments, SER's actual capacity
factor was 88.4%.
SER's financial performance has improved since 1993 due to
strong energy production levels and rigorous cost control. Through
June 1996 year-to-date debt service coverage of 2.04 times (x)
exceeds budget of 1.80x. In fiscal 1995, SER's operations generated
$25.6 million, available to cover $13.2 million senior debt
requirement and resulted in coverage of 1.93x.
CONTACT: John Watt of Fitch, 212-908-0523
MILWAUKEE, WI -- Aug. 14, 1996 -- Allis-Chalmers Corporation
today reported a net loss of $378,000, or $.38 per common share, in
the second quarter of 1996 compared with a net loss of $360,000, or
$.35 per common share, in the same quarter of 1995.
The 1996 second quarter loss included a non-cash expense of
$339,000 for pension expense on the unfunded liability of
approximately $11.9 million associated with the Company's
Consolidated Pension Plan (Consolidated Plan). This expense was
$267,000 in the second quarter of 1995.
Sales in the second quarter of 1996 were $1,156,000 compared
with $853,000 in the 1995 period. The increase in sales from the
prior year is primarily the result of a stronger market for
machinery repair and services along with expanded sales effort.
Second quarter gross margin, as a percentage of sales, was 29.6% in
1996 and 30.6% in 1995.
For the first six months of 1996, Allis-Chalmers had a net loss
of $717,000, or $.71 per common share, versus a net loss of
$792,000, or $.78 per common share, in the first half of 1995.
First half sales were $2,141,000 in 1996 and $1,622,000 in 1995.
Regarding the underfunding of the Consolidated Plan, the Company
made a $205,000 cash contribution to the plan in the first quarter
of 1996. Additional cash contributions required to eliminate this
underfunding are estimated to be $2.3 million in 1996, $3.6 million
in 1997 and $12.2 million between 1998 and 2002. The cash
contributions due on April 15, 1996 and July 15, 1996, each in the
amount of $637,000, were not made. Because the unpaid contributions
now exceed $1,000,000, a lien has been filed by the Pension Benefit
Guaranty Corporation (PBGC) against the Company in favor of the
Consolidated Plan. The unpaid contributions result in additional
interest liability and may result in IRS excise tax penalties if
they remain unpaid. Given the inability of the Company to fund the
entire underfunding obligations with its current financial
resources, a termination of the Consolidated Plan will likely occur,
with the consequence of a liability to the PBGC in excess of the
current net worth of the Company. However, the Company intends to
continue discussions with the PBGC concerning its obligations under
the Consolidated Plan, Although it is not possible to predict the
outcome of such discussions, if the Company is unable to negotiate a
settlement with the PBGC on terms that are acceptable to the
Company, Allis-Chalmers will be required to evaluate its options
which include attempting to raise additional capital to eliminate
the underfunding or seeking protection from its creditors by
commencing voluntary bankruptcy proceedings under the federal
bankruptcy laws. The Company does not believe it will be able to
raise additional capital to meet its obligations under the
Consolidated Plan.
Financial results for the three and six month periods ended June
30, 1996 and 1995 follow:
Three Months Six Months
1996 1995 1996 1995
(thousands, except per share)
Sales $ 1,156 $ 853 $ 2,141 $ 1,622
Net Loss (378) (360) (717) (792)
Average common shares outstanding 1,003 1,003 1,003 1,003
Loss per common share $ (.38) $ (.35) $ (.71) $ (.78)
LOUISVILLE, Ky. -- Aug. 14, 1996 -- Humana Inc. (NYSE: HUM)
today reported operating earnings of $.22 per share for the second
quarter ended June 30, 1996, compared to $.28 per share for the
second quarter of 1995. As reported by Humana on June 7, 1996, the
lower second quarter earnings are due to increased utilization in
its commercial and Medicare risk products, and are in line with its
revised estimate of $.18 to $.22 per share.
The company also announced it was taking special charges of $.80
per share ($200 million pretax) which will result in a net loss of
$.58 per share in the second quarter. The pretax charge includes
$105 million for expected losses on insurance contracts in
Washington, D.C. and certain new service areas. The remaining $95
million primarily represents the costs of restructuring the
Washington, D.C. health plan, closing 13 service areas, and
discontinuing unprofitable products in three markets. The
beneficial effect of the special charges in the second quarter's
operating earnings approximated $9 million pretax or $.04 per share.
Second quarter premium revenues grew 51 percent to a record $1.6
billion from $1.0 billion for the second quarter of 1995. The
increase is primarily due to Humana's acquisition of EMPHESYS
Financial Group, Inc. (EFG) in October 1995.
Medicare risk membership increased 10,600 members during the
second quarter, or 3.3 percent since March 31, 1996. Commercial
membership, which had declined during the first quarter, remained at
2.9 million members at June 30, 1996. Total medical membership at
June 30, 1996, including administrative services members, was 3.7
million, unchanged since March 31. On July 1, Humana began
providing managed health care services to approximately one million
eligible military beneficiaries, under the Civilian Health and
Medical Program of the United States (CHAMPUS).
Excluding the special charges, net income for the second quarter
of 1996 was $35 million compared to $45 million in the second
quarter of 1995. The decline in net income was due to an increase
in the medical loss ratio, partially offset by the profitability
added by EFG and Medicare risk membership increases. The company's
medical loss ratio increased to 82.9 percent compared to 82.1
percent reported in the second quarter of 1995, the result of
medical services utilization increases, partially reduced by the
inclusion of EFG's lower medical loss ratio. The administrative
cost ratio was 15.2 percent compared to 13.4 percent last year, due
to the inclusion of EFG's higher administrative cost ratio.
Excluding the special charges, net income for the six month
period was $88 million or $.54 per share compared to $98 million or
$.60 per share for the same period last year. Including the
charges, the net loss for the six months ended June 30, 1996 was $42
million or $.26 per share. Premium revenues increased to $3.1
billion from $2.1 billion for the same period last year.
"We are not satisfied with these results in any manner, shape or
form," commented Humana's Chairman and Chief Executive Officer David
A. Jones. "We are taking action to restore our historically strong
performance, starting with the appointment of Gregory H. Wolf as our
chief operating officer on July 10."
Wolf, who previously served as president and chief operating
officer of EFG, reorganized Humana's management on July 29 to reduce
bureaucracy and streamline decision-making. The reorganization
redirects resources to strengthen Humana's medical management,
customer service, sales and marketing.
"Humana has demonstrated an ability to reinvent its approach to
health care at critical junctures in its 35-year history. The
challenge we now face is to create sustainable, long-term advantage
in an industry which is increasingly competitive," said Mr. Wolf.
"We must differentiate ourselves and our products. In order to
accomplish that, we must advance our thinking and performance
regarding the way we serve members, distribute and price products,
deliver care, and measure results."
Based in Louisville, Kentucky, Humana provides managed health
care services to 3.7 million medical members. As one of the
nation's largest managed care companies, Humana offers a full array
of managed care products including health maintenance organizations
and preferred provider organizations to employer groups, government-
sponsored plans and individuals.
This press release contains forward-looking information. The
forward- looking statements are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements may be significantly impacted by certain
risks and uncertainties described in the company's Annual Report on
Form 10-K filed with the Securities and Exchange Commission for the
year ended December 31, 1995.
Summary of operating results for the three months ended June 30:
1996 1995
Premium revenues $1,578,000,000 $
1,048,000,000
Income before income taxes and
special charges $ 54,000,000 $
68,000,000
Net income before special
charges $ 35,000,000 $
45,000,000
Earnings per share before special
charges $ .22 $
.28
Net income (loss) after special
charges $ (95,000,000)(a) $
45,000,000
Earnings (loss) per share after
special charges $ (.58)(a) $
.28
Shares used in earnings per share
computation 162,455,000
162,255,000
Summary of operating results for the six months ended June 30:
1996 1995
Premium revenues $ 3,138,000,000 $
2,073,000,000
Income before income taxes and
special charges $ 135,000,000 $
148,000,000
Net income before special charges $ 88,000,000 $
98,000,000
Earnings per share before special
charges $ .54 $
.60
Net income (loss) after special
charges $ (42,000,000)(a) $
98,000,000
Earnings (loss) per share after
special charges $ (.26)(a) $
.60
Shares used in earnings per share
computation 162,417,000
162,148,000
CONTACT: Laurie Scarborough, Investor Relations, Humana Inc.,
502-580-1037
WILMINGTON, N.C. -- Aug. 14, 1996 -- Welcome Home, Inc.
(Nasdaq: WELC) today announced financial results for the quarter and
six month period ended June 30, 1996.
Net sales for the second quarter of 1996 increased 4.l% to $18.7
million versus $18.0 million for the second quarter of 1995 due to
an extra selling week in the second quarter of 1996. Without the
extra week, sales in the second quarter of 1996 would have declined
3.4%. Comparable store sales decreased 13.1% in the second quarter.
Net loss for the second quarter of 1996 was $2.3 million, or $0.31
per share, as compared to $0.8 million, or $0.11 per share, for the
same period last year. The 1996 net loss includes $0.9 million in
income tax expense to establish a valuation allowance against
deferred tax assets in accordance with SFAS 109.
Net sales for the six month period ended June 30, 1996 increased
3.6% to $31.2 million, versus $30.1 million for the six month period
ended June 30, 1995 due to an extra selling week in the six month
period ended June 30, 1996. Without the extra week, sales in the six
month period ended June 30, 1996 would have declined 0.1%.
Comparable store sales decreased 12.7% in the six month period ended
June 30, 1996. Net loss for the six month period ended June 30,
1996 was $4.5 million, or $0.60 per share, as compared to $2.4
million, or $0.31 per share, for the same period last year. The
1996 net loss includes $0.9 million in income tax expense to
establish a valuation allowance against deferred tax assets in
accordance with SFAS 109.
The Company currently has approximately $5 million in total
availability on its lines of credit with its independent lender,
Fleet Capital, and its majority shareholder, Jordan Industries.
Thomas H. Hicks, Chief Operating Officer, noted, "While second
quarter results were disappointing, we remain confident that the
restructuring initiatives begun in late 1995 will ultimately return
the Company to profitability.
"Many of these actions will not have a significant impact until
late 1996 or 1997. For example, we successfully converted to a new
information system effective August 4. This will allow to track
inventory levels, turnover, sales and profitability at the item
level in a system which is fully integrated among the point of sale,
merchandising and financial areas for the first time in Company
history. Accordingly, it will provide the ability to make more
informed stock replenishment decisions. The system will also allow
us to better develop our customer database, which should increase
the effectiveness of direct marketing and other advertising efforts.
"We continued to strengthen our management team. Mark Dudeck
joined us as our Chief Financial Officer on July 29. Mark, a CPA,
came from Camelot Music, Inc. where he was Director - Financial
Planning and Analysis. Mark previously served as Director
- Investor Relations at Mercantile Stores Co. and Vice President
- Finance at Maison Blanche, Inc. In addition, Susan J. McKenna was
added as Senior Buyer on August 6. Susan was previously Product
Manager - Table Linens, Bath and Decorative Housewares and Import
Housewares Product Manager for Frederick Atkins, Inc. Also, John
Robison was appointed to Manager - Distribution and Traffic on June
12. John was formerly District Manager at Volume Shoe Corporation
and also served in various operations capacities for Service
Merchandise, Pine Factory and Shoe Carnival.
"We have developed an exciting new merchandise assortment for
the fall season, focusing on textiles, home furnishings, gifts and
decorative accessories. In addition, we engaged Steedman
Communications to develop a coordinated advertising and in-store
graphics program which will begin in late October and reach 18
million households. We engaged FRCH Design Worldwide to lead
development of a revised store prototype to improve category
presentation and customer shopability. We will test this prototype
in late fall 1996 and, if successful, expect to implement the
concept at other stores.
"We have also accelerated our store closing program. To date,
the Company has closed 11 stores and projects closing approximately
37 more by the end of the year. All of these stores are
underperformers. We engaged the firm of Felenstein Koniver and
Associates to function as our outsourced real estate department."
Welcome Home, Inc. is a leading specialty retailer of gifts and
decorative home furnishings and accessories. The Company operates
210 stores in 41 states which are located primarily in outlet and
off-price malls. Welcome Home stores offer a broad selection of
distinctive, popular merchandise at low prices that are generally 20-
50% below regular department store prices.
WELCOME HOME, INC.
Consolidated Balance Sheets
As of June 30, 1996 and December 31, 1995
(in thousands of dollars)
(unaudited)
6/30/96
12/31/95 ASSETS
Current Assets
Cash and cash equivalents $ 2
$ 7 Inventories 21,486
16,798 Deferred income taxes 470
470 Other current assets 912
818
Total current assets 22,870
18,093
Property and equipment, net 10,777
8,826 Deferred income taxes 2,971
1,715 Other assets 555
542
Total Assets $37,173
$29,176
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Current Liabilities:
Notes payable - line of credit $15,818
$ 5,213 Accounts payable 12,215
11,703 Accrued expenses 2,280
2,817 Current portion of capital lease obligations 541
514
Total current liabilities 30,854
20,247 Capital lease obligations 897
1,174 Note payable to Jordan Industries 6,280
4,128
Shareholders' Equity (Deficit)
Common stock 85
85 Additional paid-in capital 8,832
8,832 Cumulative translation adjustment (37)
(37) Retained earnings (deficit) (4,853)
(368)
Subtotal 4,027
8,512 Less treasury stock 4,885
4,885
Total Shareholders' Equity (Deficit) (858)
3,627
Total Liabilities and Shareholders' Equity (Deficit)
$37,173 $29,176
Consolidated Statements of Operations
For the Three and Six Month Periods Ended
June 30, 1996 and 1995
(In thousands, except per share data)
(Unaudited)
Three Months Six Months
Ended June 30 Ended June 30
1996 1995 1996 1995
(14 weeks) (13 weeks) (27 weeks)
(26 weeks)
Net sales $18,737 $17,997 $31,219
$30,134
Cost of sales 10,656 10,140 17,214
16,882
Gross margin 8,081 7,857 14,005
13,252
Selling, general and administrative expense 9,431
8,321 17,945 15,742
Depreciation 483 513 954
963
Operating income (loss) (1,833) (977) (4,894)
(3,453)
Interest expense: Jordan Industries 102
242 191 473 Other 360
130 637 162
Other expense (income) 51 28 19
(19)
Pretax income(loss) (2,346) (1,377) (5,741)
(4,069)
Provision (benefit) for income taxes
- (505) (1,256) (1,626)
Net income (loss) $(2,346) $(872) $(4,485)
$(2,443)
Net income (loss) per share $(0.31) $(0.11) $(0.60)
$(0.31)
Weighted average shares outstanding (000's) 7,454
7,897 7,454 7,988
LAKE SUCCESS, N.Y. -- Aug. 14, 1996 -- The Care Group, Inc.
(Nasdaq: CARE) announced today that it has closed on the first stage
of a private placement of units of Common Stock and Warrants. The
Company sold 42 units at a price of $50,000 per unit. Each unit
consists of 40,000 shares of Common Stock and a Stock Purchase
Warrant to purchase up to 40,000 additional shares of common stock.
The net proceeds to the Company, after expenses, were approximately
$1,970,000. The Company will use the proceeds from the Private
Placement to repay existing indebtedness and for general corporate
purposes. The Company expects to place an additional 58 units, of
gross proceeds of $2,600,000, upon receiving shareholder approval.
In connection with the Private Placement John Pappajohn and
Derace Lan Schaffer, M.D. have been appointed as members of the
Company's Board of Directors. Ann Mittasch, Chairperson, said, "We
are extremely pleased that Mr. Pappajohn and Dr. Schaffer are
joining our board as they bring a wealth of experience and a highly
successful track record to The Care Group." Mr. Pappajohn is a
leading health care investor and serves as a director of many public
companies. Dr. Schaffer is a practicing radiologist and serves as
Chairperson and President of the Ide Radiology Group. Ms. Mittasch
also said that, "A new management team is currently being formed to
better capitalize on the outstanding reputation The Care Group has
earned as a health care provider." She added, "The members of this
new management team are expected to be announced shortly."
The Company also announced today that it has evaluated certain
of its goodwill and other assets and, as a result will reduce such
assets by a non- recurring charge to operations in the June quarter
of approximately $3,500,000. In addition, as part of its previously
announced restructuring plan, the Company has reevaluated its
accounts receivable and has identified certain accounts that will be
given to collection agencies for follow-up and they expect that the
majority of such accounts will be written-off. The Company recorded
a non-cash charge of approximately $5,300,000 in June, of which
approximately $4,500,000 was recorded as an allowance for doubtful
accounts and approximately $800,000 represented direct write-offs.
The Company reported a net loss of $5,815,000 or $.70 per share
on net revenues of $9,545,000 for the quarter ended June 30, 1996 as
compared to net income of $328,000 or $.04 per share on net revenues
of $11,899,000 for the same quarter last year.
For the six months ended June 30, 1996, the Company reported a
net loss of $5,754,000 or $.68 per share on net revenues of
$19,188,000 versus net income of $469,000 or $.06 per share on net
revenues of $24,486,000 for the six months ended June 30, 1995.
The revenue reduction related to the increasing effect of
managed care as well as the decrease in patient population in our
New York and Dallas offices. The net loss was primarily due to the
write-offs mentioned above.
The Care Group is a leading full service provider of alternate
site health care that includes mail order pharmaceuticals and
medical supplies, home medical equipment patient services, nursing,
paraprofessionals and infusion therapy. The Care Group's branch
offices are located in New York City and Nassau County, NY; Houston,
Dallas and Austin, TX; Los Angeles, CA; and Roswell and Marietta,
GA.
SELECTED FINANCIAL DATA
000's Omitted
Except For Per Share Data
Three Months Ended Six
Months Ended
June 30 June 30
1996 1995 1996
1995
Net Revenues $ 9,545 $11,899 $19,188
$24,486
Net Income $(5,815) $ 328 $(5,754)
$ 469
Net Income Per
Share $ (.70) $.04 $ (.68)
$.06
Weighted Average
Common and Common Equivalent
Shares Outstanding 8,311 8,414 8,463
8,402
CONTACT: Pat Celli, Chief Financial Officer of The Care Group,
616-869-8338
WILMINGTON, DE -- Aug. 14, 1996 -- href="chap11.canisco.html">Canisco Resources, Inc.
(Nasdaq: CANR) announced today that Donald Lyons was unanimously
elected the new Chairman of the Board of Directors of the Company.
This action took place following the first Annual Meeting of
Shareholders of Canisco held yesterday at which outgoing Chairman
Joe C. Quick announced he would be stepping down as Chairman and
nominating Mr. Lyons for the position. Mr. Quick will continue to
serve as a director.
Mr. Lyons is the former President and CEO of the Power Systems
Group of Combustion Engineering and serves as a director of Gilbert
Associates, Inc. He has been a director of the Company since 1993.
Incoming Chairman Donald Lyons stated, "Following a complete
restructuring, our Company is now positioned to concentrate on
improving earnings while we remain highly focused on the markets we
serve."
The Company reported net earnings of $.05 per share for its
first quarter which ended June 30, 1996, which is equivalent to that
reported the same period a year ago. Revenue for the period was
$12,263,000 compared to $22,843,000 last year. The reduction in
revenue is a result of the divestiture of the NSS Numanco subsidiary
which was part of the Company's plan of reorganization.
Ralph A. Trallo, President, stated, "As expected, the continued
expense of bankruptcy impacted first quarter profits. Going forward
without this distraction, we anticipate being able to enhance
earnings."
Canisco Resources, Inc. provides versatile services supporting
operations and facility maintenance for the power generation, pulp &
paper and petrochemical markets as well as general industry.
CONTACT: Lauralee Snyder, Investor Relations of Canisco Resources,
302-777-5050