Same store sales increased 1.0 percent in the 1997 first
quarter, following a 0.4 percent increase for the fourth quarter of
fiscal 1996.
EBITDA totaled $41.4 million, or 5.7 percent of sales, for the
1997 first quarter compared to $44.3 million, or 6.1 percent of
sales, for the 1996 first quarter. EBITDA for the 1997 first
quarter included $1.1 million of gains on sale of stores, compared
to $3.6 million for the 1996 first quarter.
Roger E. Stangeland, chairman of the board, said, "The first
quarter reflected the continued investment in the company's customer-
focused long-term strategic plan. The plan is designed to build
sales by reducing costs in areas the customer doesn't see and
reinvesting those savings in areas the customer sees every day.
Additionally, the plan calls for Grand Union to focus much of its
attention on developing the strengths it currently has in
merchandising perishable and convenience foods." Stangeland went on
to say, "We are extremely pleased with the agreement we entered into
last month with an affiliate of Shamrock Capital Advisors Inc., and
an affiliate of GE Investments to sell them $100 million of
convertible preferred stock. This very significant step will allow
us to accelerate our capital spending during the next three years,
another key element of our strategic plan."
Joseph J. McCaig, president and chief executive officer, said,
"We were encouraged by our second consecutive quarter of positive
same store sales and by our EBITDA results in view of the additional
investments we made during the first quarter. We continued the
implementation of our strategic plan in the first quarter by
investing additional gross margin dollars to extend our `More Lower
Prices' program to the balance of the company. Additionally, we
continued to invest labor hours and advertising dollars in the
exciting new marketing and customer service programs which emphasize
our perishables merchandising strengths." McCaig said, "Over the
last 12 months, we have made significant investments in areas that
our customers see every day, areas essential to the long-term
success of Grand Union. These investments, which have been made
possible by cost savings in areas such as distribution expense,
store average hourly pay and overhead expense, have already begun to
pay off in consistently positive same store sales and will lead to
improved EBITDA results in the near future."
McCaig went on to say, "During the first quarter, we opened a
new store in Berlin, Vt., and a replacement store in Malta, N.Y.
Our first two `M.A.S.T.E.R.S.' (Maximize All Space, Totally Expand
the Right Stuff) stores, West Nyack and Monroe, N.Y., continue to
demonstrate the total sales increases and favorable mix changes
which will make the M.A.S.T.E.R.S. renovations the cornerstone of
our capital expansion plans."
The company reported that total sales increased 0.9 percent in
the 1997 first quarter. Same store sales increased 1.0 percent as a
result of the positive impact of the "More Lower Prices" program
implemented beginning in May 1995, and completed in May 1996, and by
the marketing and customer service programs which continue to be
rolled out across the company.
EBITDA (earnings before LIFO provision, depreciation,
amortization, reorganization items, interest expense, income taxes
and extraordinary gain) for the 1997 first quarter totaled $41.4
million, including $1.1 million from gains on sale of stores.
EBITDA for the 1996 first quarter totaled $44.3 million, including
$3.6 million from gains on sale of stores. Exclusive of the gains
on sale of stores, the 1997 first quarter EBITDA decreased $0.3
million compared to the 1996 first quarter. The year to year
comparison of EBITDA was positively affected by (a) savings from
outsourcing warehouse distribution, (b) restoration of vendor
promotional allowances and other vendor support to normal levels
this year from bankruptcy impacted levels experienced in the fiscal
1996 first quarter, (c) savings in store average hourly pay
resulting from the store voluntary resignation incentive programs
completed last year and (d) savings from the reorganization of the
company's organizational structure. The EBITDA comparison was
negatively affected by (a) strategic investments in margins through
the "More Lower Prices" program, (b) higher levels of promotional
spending in certain areas to remain competitive with the
marketplace, (c) investments in front-end and perishable department
labor hours and (d) increased advertising in support of the
company's marketing and customer service programs.
The company reported a net loss of $43.8 million for the 1997
first quarter ($4.38 per share). The company's loss before
amortization of excess reorganization value was $12.2 million ($1.22
per share). Last year, the company reported a loss before
extraordinary credits of $38.9 million, an extraordinary credit on
debt discharge in connection with the bankruptcy of $854.8 million
and net income including the extraordinary credit of $815.9 million.
Capital spending, including capital leases other than real
estate leases, totaled approximately $17 million in the 1997 first
quarter and is expected to total between $65 and $70 million for the
full year as a result of the sale of the preferred stock. The
company expects to complete ten M.A.S.T.E.R.S. renovations this year
and open two more replacement stores.
With the exception of historical information, the matters
discussed herein are "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are subject to risks, uncertainties and
other factors which could cause actual results to differ materially
from future results expressed or implied by such forward-looking
statements. Potential risks and uncertainties include, but are not
limited to, the competitive environment in which the company
operates, the company's ability to complete its capital expenditure
program on a timely basis and the general economic conditions in the
geographic areas in which the company operates.
Grand Union is a regional retail food company which currently
operates 229 retail food stores in six Northeastern states. Its
common stock is traded under the GUCO symbol on the Nasdaq National
Market.
THE GRAND UNION CO.
CONSOLIDATED STATEMENT OF OPERATIONS
(unaudited)
(in thousands of dollars)
16 Weeks Ended
July 20, July 22,
1996 1995
Sales $726,823 $720,545
Gross profit 222,299 217,321
Operating and administrative expenses (180,878)
(173,036)
Earnings before LIFO provision, depreciation
and amortization, reorganization items,
interest expense, income tax, and
extraordinary gain on debt discharge (EBITDA) 41,421 44,285
LIFO provision (400)
(400)
Depreciation and amortization (25,413)
(24,170)
Amortization of excess reorganization value (31,572)
(10,110)
Reorganization items
-- (18,627)
Interest expense, net (32,287)
(29,337)
Loss before income tax benefit (provision)
and extraordinary gain on debt discharge (48,251)
(38,359)
Income tax benefit (provision) 4,439
(500)
Loss before extraordinary gain on
debt discharge (43,812)
(38,859)
Extraordinary gain on debt discharge -- 854,785
Net (loss) income $(43,812) $815,926
DALLAS, TX -- Aug. 23, 1996 -- From its headquarters
in Irving, Texas, Bollinger Industries, Inc. today announced results
of operations for the three months ended June 30, 1996.
The company reported that sales for its first quarter were $22.4
million, compared to $12.8 million for the same quarter in the
previous year--a 75 percent increase.
Bollinger reported improved operating results in the current
quarter. In the most recent quarter, the company recorded an
operating loss of $124,000 compared to an operating loss of $748,000
in the year earlier period. Net loss after interest, taxes and
losses from discontinued operations was $0.19 per share, compared to
a loss of $0.25 in the comparable quarter of the prior year.
Bollinger management indicated that many parts of its previously
announced Restructuring Plan are in progress. The company announced
that it will focus its product, marketing and sales efforts on the
strength of its Bollinger brand through mass market retail outlets,
and the increased profit opportunities presented by its Nautilus
brand, which will be sold primarily through sporting goods stores
and other more upscale retail channels.
Other elements of the plan include liquidation of inventory
related to discontinued brands, the elimination of some warehouse
facilities and reduction of other operating expenses such as
celebrity royalties.
The company has closed its refinancing, on more favorable terms,
with Foothill Capital Corporation, a Norwest Company. Bollinger
also has a signed letter of intent for the sale of a major portion
of the company's discontinued Healthcare Division.
Chairman and CEO Glenn Bollinger reported, "Early in this fiscal
year, we started on an aggressive plan to focus on the things which
will return the company to profitable growth. The increase in sales
and the improvement in operating results shows that we are moving in
the right direction. Our new financing offers us much better terms,
so that less of our resources will be occupied by debt service. We
are continuing to implement our plan, and applying the power of our
core brands in ways we are confident will produce tangible results."
Bollinger is a leading domestic supplier of consumer fitness
accessories. Bollinger Fitness products are sold by leading mass
market retailers and other retail outlets nationwide and overseas.
The company's common stock is traded over the counter under the
symbol "BOLL."
BOLLINGER INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
QUARTER ENDED JUNE 30,
in thousands except per share amounts
1996 1995
---- ----
NET SALES $ 22,434 $ 12,762
COST OF GOODS SOLD 17,654 9,698
-------- --------
GROSS PROFIT 4,780 3,064
SELLING, DISTRIBUTION, GENERAL
AND ADMINISTRATIVE EXPENSES 4,904 3,812
-------- --------
OPERATING LOSS (124) (748)
INTEREST AND OTHER EXPENSE 641 416
-------- --------
LOSS FROM CONTINUING OPERATIONS
BEFORE TAXES (765) (1,164)
INCOME TAX BENEFIT -- (461)
LOSS FROM CONTINUING OPERATIONS (765) (703)
LOSS FROM DISCONTINUED OPERATIONS
(NET OF INCOME TAX EFFECT) -- (292)
-------- --------
NET LOSS $ (765) $ (995)
-------- --------
PER SHARE DATA:
LOSS FROM CONTINUING OPERATIONS $ (0.19) $ (0.18)
-------- --------
NET LOSS $ (0.19) $ (0.25)
-------- --------
WEIGHTED AVERGE COMMON AND COMMON
EQUIVALENT SHARES OUTSTANDING 4,000 3,971
-------- --------
NEW YORK -- Aug. 23, 1996 -- Autotote Corp.
(AMEX:TTE) today announced financial results for its third fiscal
quarter and nine months ended July 31, 1996.
Revenues for the third quarter increased 8.0%, from $38.7
million in 1995 to $41.8 million in 1996. EBITDA (earnings before
interest, taxes, depreciation and amortization) increased 76.0%, to
$7.3 million in 1996 from $4.1 million in the third quarter of 1995,
when the company implemented a strategic restructuring. The
operating loss declined to $3.8 million in the third quarter from
$4.8 million in the year-earlier period despite a $2.2 million, or
24.6%, increase in depreciation and amortization, to $11.1 million.
For the nine months ended July 31, 1996, revenues increased 22.3%,
from $107.0 million in 1995 to $130.9 million in 1996. EBITDA
increased by 57.1%, to $22.6 million in 1996 from $14.4 million in
1995. The operating loss declined to $7.5 million from $11.0
million in the year-earlier period despite a $4.7 million, or 18.5%,
increase in depreciation and amortization to $30.1 million. (EBITDA
and operating loss comparisons do not include $18.2 million of
restructuring charges and writeoffs in fiscal 1995 and $649,000 of
restructuring credit recorded in fiscal 1996.)
A. Lorne Weil, chairman and chief executive officer, said, "Our
business strategy remains on track. We are focused on our core
racing-oriented businesses in North America, where we are well
positioned to benefit from the continued strong growth in off-track
wagering. We are also actively involved in the international
market, both for racing and lottery applications.
"Looking at the third quarter, revenues and EBITDA increased
over the same period in the prior year for the fourth consecutive
quarter. We had strong EBITDA gains at North American satellite
communications and Connecticut OTB businesses, reflecting lower
costs and higher revenues. Strong EBITDA and revenue gains were
also seen in our international equipment sales business," he said.
"At the same time, total SG&A was down both as an absolute number
and as a percentage of sales to $8.6 million and 20.7%,
respectively. We expect to see those trends continue in the current
fourth quarter."
Largely because of a shift in revenues at the company's European
lottery unit from service to sales, overall service revenues were
essentially flat for the third quarter, at $34.5 million, as
compared to the same quarter of 1995. Revenue from equipment sales
increased by $3.4 million, or 84.3%, over the prior year's quarter,
primarily reflecting this shift in revenues as well as international
equipment sales.
Also reflected in the third quarter results are two unusual
charges: $647,000 for costs incurred in connection with a proposed
debt offering that was not completed and $569,000 for contractual
payments related to the departure of the president of the company
earlier this month. Partially offsetting these costs is the
reversal of $649,000 in 1995 restructuring cost accruals because of
the company's current plan to continue limited manufacturing of
wagering terminals at its Ireland plant.
The net loss for the quarter declined to $7.8 million from a
loss of $29.2 million in the year-earlier period. The net loss for
the nine months declined to $27.5 million from a loss of $44.1
million in the 1995 period.
AUTOTOTE Corp. designs and manufactures computerized wagering
equipment and provides facilities management for use in off-track
wagering, lotteries and legalized sports betting facilities.
Autotote's systems are in use in the United States, Europe, Central
and South America, Canada, Mexico, New Zealand and the Far East.
AUTOTOTE CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations
(Unaudited)
(In Thousands, Except Per Share Amounts)
Three Months Ended Nine Months Ended
July 31, July 31, July 31, July 31,
1996 1995 1996 1995
Operating Revenues:
Wagering systems $ 34,470 34,730 99,444 96,129
Wagering equipment
and other sales 7,358 3,992 31,431 10,842
41,828 38,722 130,875 106,971
Operating expenses
(exclusive
of depreciation and
amortization):
Wagering systems 21,020 20,206 62,091 56,177
Wagering
equipment and
other sales 4,867 4,746 21,007 9,190
25,887 24,952 83,098 65,367
Total gross profit 15,941 13,770 47,777 41,604
Selling, general and
administrative
expenses 8,638 9,622 25,186 27,228
Restructuring (649) 11,601 (649) 11,601
Write-off of investments
and other -- 6,640 -- 6,640
Depreciation and
amortization 11,124 8,925 30,118 25,423
Operating loss (3,172) (23,018) (6,878) (29,286)
Other deductions
(income):
Interest expense 3,667 5,549 10,999 12,708
Litigation settlement -- -- 6,800 --
Other deductions
(income) 629 (4) 772 141
4,296 5,545 18,571 12,847
Loss before income
tax expense (7,468) (28,563) (25,449) (42,133)
Income tax expense 336 683 2,050 2,002
Net loss $ (7,804) (29,246) (27,499) (44,135)
Net loss per
common share $ (0.25) (1.01) (0.88) (1.53)
Weighted average
number of common
shares outstanding
(000) 31,459 28,928 31,246 28,884
CONTACT: The Miller Company
Gregory W. Miller
Tel: 914-834-1868
Fax: 914-834-6782
E-mail:millerco1@aol.com