TCR_Public/960905.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy and Troubled Company News


September 5, 1996



  1. Sizzler International reports first-quarter results
  2. DEP Corp. reports higher net sales and operating income
  3. Holly Products announces first quarter results
  4. FHP REPORTS FOURTH QUARTER AND FISCAL 1996 RESULTS





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Sizzler International reports first-quarter results
        


                     LOS ANGELES, CA  --  Sept. 5, 1996  --  Sizzler
        International Inc.
(NYSE:SZ) Thursday announced profitable results
        for the first quarter and said it is continuing progress on its
        strategic restructuring, with its June 2 Chapter 11 filing
        proceedings continuing on schedule.  
        


            For the 12 weeks ended July 21, 1996, the company reported
        revenues of $84,436,000 and a net income of $494,000, or 2 cents per
        share, compared with revenues of $105,501,000 and net income of
        $436,000, or 2 cents per share, for the first quarter of last year.
        The $21 million, or 20 percent decrease in revenues, primarily was
        due to the closure of 130 U.S. restaurants as part of the company's
        restructuring.  
        


            In announcing first-quarter results, Kevin Perkins, Sizzler
        International president and chief executive officer, said:  "We
        continue to proceed on track with our Chapter 11 filing and look
        forward to emerging from the Chapter 11 process by the end of this
        fiscal year."  
        


            Sizzler International operates or licenses 445 Sizzler
        restaurants worldwide.  In addition, the company operates 93
        Kentucky Fried Chicken (KFC) restaurants and one The Italian Oven
        restaurant in Queensland, Australia.  
        


        
                         SIZZLER INTERNATIONAL INC.
                 CONSOLIDATED CONDENSED STATEMENTS OF INCOME
                                (Unaudited)
                    (In thousands, except per-share data)
         
                            Twelve Weeks Ended       Fifty-two Weeks Ended
                            July 21,    July 23,     April 30,   April 30,
                             1996        1995          1996        1995
        Systemwide sales
         (all franchised and
         company-owned
         restaurants)         $ 181,266   $ 217,919     $ 875,704   $
        937,670
        Revenues              $  84,436   $ 105,501     $ 436,194   $
        462,151        
        Net income (loss)     $     494   $     436     $(138,458)  $
        6,695          
        Net income (loss)
         per common share     $    0.02   $    0.02     $   (4.99)  $
        0.24     
        Common and common
         equivalent shares       28,848      27,798        27,773
        28,272
        
        
                          SIZZLER INTERNATIONAL INC.
                    CONSOLIDATED CONDENSED BALANCE SHEETS
                               (In thousands)
                                                                                
                                     July 21,       April 30,     
                                       1996           1996
        
        Total current assets            $  40,544      $  23,455     
        Total assets                    $ 189,034      $ 178,547
        Total current liabilities       $  24,444      $  63,185
        Total long-term liabilities     $ 120,230      $  71,895
        Total stockholders' investment  $  44,360      $  43,467      
        Total liabilities and
         stockholders' investment       $  189,034     $ 178,547


        CONTACT:  Sizzler International Inc., Los Angeles
                  Christopher R. Thomas, 310/823-2600
                     or
                  Financial Relations Board, Los Angeles
                  310/442-0599
                  Timothy Kent/Fiona Ross (general information)
                  Steven Seiler (media contact)
                  Tom Ekman (analyst contact)



DEP Corp. reports higher net sales and operating income for fiscal 1996 unaudited results vs. Chapter 11 projections


        


            LOS ANGELES, CA  --  Sept. 5, 1996  --  DEP Corp. (NASDAQ
        SmallCap:DPCAQ and DPCBQ) reported that fiscal 1996 net sales of
        $119.1 million and operating income of $3.1 million were higher than
        projections contained in the company's amended Disclosure Statement
        filed with the Bankruptcy Court on May 8, 1996.
        


            That Disclosure Statement projected net sales of $115.9 million
        and operating income of $814,000 for fiscal 1996.
        


            Robert Berglass, president and chief executive officer of DEP,
        said, "I am particularly pleased that the company was able to exceed
        the projected sales by more than $3 million and operating income by
        more than $2 million, particularly in light of the numerous
        challenges the company had to conquer over the past several months.
        The company continues to have positive cash flow and entered fiscal
        1997 with more than $11 million of cash on hand."
        


            In comparing fiscal 1996 results with fiscal 1995, operating
        income for the fiscal year ended July 31, 1996, was $3.1 million, up
        from $1.5 million.  Sales for fiscal 1996 were $119.1 million,
        compared with $127.7 million for the prior year.  The company stated
        that more than 50 percent of the sales decline was due to lower
        domestic and international sales of Agree and Halsa, which fell $4.5
        million.
        


            The net loss for fiscal 1996 was $8 million, or $1.27 per share,
        compared with a net loss of $27 million, or $4.32 per share, for the
        prior year.  Fiscal 1996 was substantially impacted by a charge of
        $3.9 million, or 62 cents per share, related to reorganization
        expenses.  Reorganization expenses were higher than projected due to
        the professional fees incurred by the lender group and a write-off
        of debt issuance cost arising from DEP's prior loan.
        


            Fiscal 1996 results were also impacted by a 15 percent increase
        in interest expense over the prior year.  Fiscal 1995 included an
        after-tax charge of $24.1 million, or $3.85 per share, resulting
        from a write-down in the asset value of Agree and Halsa.  
        


            Berglass said that he expects next fiscal year results to
        improve due to a number of factors including an effective lower
        interest rate under the proposed consensual plan and the full-year
        effects of the cost reduction programs.
        


            "Our goal is to strengthen fiscal 1997 sales by increasing our
        advertising spending in order to stabilize and reinvigorate certain
        brands and to continue to actively pursue new contract packaging
        customers in an effort to increase volume and lower our per-unit
        costs.  Additionally, we have launched a new "department store-type"
        skin care line.  Shipments have started to certain mass
        merchandisers and drug stores who are participating in the test
        market."
        


            As previously reported, DEP has reached an agreement with its
        lender group for a consensual plan of reorganization which the
        company believes will enable it to restructure its long-term debt
        consistent with its cash flow.
        


            On Sept. 9, 1996, the Bankruptcy Court is to consider approval
        of the proposed amended disclosure statement filed with the
        Bankruptcy Court on Aug. 23, 1996, which incorporates the
        modifications of the consensual plan.  If approved, the stockholders
        and lenders will be solicited and asked to vote in favor of the plan
        of reorganization.  
        


            The company filed to restructure under Chapter 11 of the
        Bankruptcy Code on April 1, 1996.  Fiscal 1996 results, which have
        been reported to the United States Trustee in accordance with the
        company's Chapter 11 proceedings, are unaudited and are subject to
        possible year-end audit adjustments.
        


            DEP Corp. is a consumer products company that develops,
        manufactures, and markets a wide variety of hair, oral and skin care
        products under 10 major brand names:  Dep, L.A. Looks, Agree, Halsa,
        Lilt, Topol, Lavoris, Natures Family, Porcelana and Cuticura.


        
                          DEP CORP. AND SUBSIDIARIES
                   CONSOLIDATED CONDENSED STATEMENTS OF INCOME
        
                                           12 Months Ended
                                               July 31,
                            (Unaudited)(b)                        (Audited)
                               Actual          Projected(c)         Actual
                                1996              1996               1995
        
        Net sales (a)            $119,088,000     $115,897,000
        $127,689,000
        
        Gross profit               74,066,000       73,672,000
        80,194,000
        
        Selling, general and
         administrative expense    70,986,000       72,858,000
        78,728,000
        
        Income from operations
         before writedown and
         reorganization items       3,080,000          814,000
        1,466,000
        
        Writedown in value of
         Agree/Halsa assets
        --               --           25,166,000
        
        Interest expense            7,120,000        7,070,000
        6,177,000
        Reorganization items        3,895,000        1,270,000           --
        Loss before income taxes   (7,958,000)      (7,408,000)
        (29,823,000)
        
        Income taxes (credit)
        --               --           (2,865,000)
        
        Net loss                  ($7,958,000)     ($7,408,000)
        ($26,958,000)
        
        Per share data:
         Loss before writedown
         in Agree/Halsa assets
         and reorganization items      ($0.65)          ($0.99)
        ($0.47)
        Writedown in Agree/Halsa
         assets
        --                --              ($3.85)
        Reorganization items           ($0.62)          ($0.20)           --
        
        Net loss per share             ($1.27)          ($1.19)
        ($4.32)
        
        Weighted average shares
         outstanding                6,250,368        6,251,000
        6,244,106
        

        (a) Agree and Halsa declined by $4.5 million which represented 52
        percent of the total sales decline in fiscal 1996 from fiscal 1995.
        


        (b) Subject to year-end audit adjustments (c) As per the company's
        amended disclosure statement dated as of May 8, 1996 -0-
        


        CONTACT:  DEP Corp., Rancho Dominguez, Calif.
                  D. Lee Johnson, 310/604-0777  -  
                       or  -  
                  Sitrick & Co.,
                  Ann Julsen, 310/788-2850
        



Holly Products announces first quarter results


        


            BALA CYNWYD, Penn.  --  Sept. 5, 1996  --  Holly
        Products Inc., (NASDAQ: HOPR, HOPRW, HOPRP; BSE: HOP, HOPP) today
        announced results of its first quarter ended June 30, 1996.
        


            As previously stated in our March 1996 10-KSB, the company
        experienced a substantial loss for the year attributable primarily
        to its woodworking business, HollyWood Manufacturing Inc. and cost
        of ceasing operations thereof.  Additionally, the company
        experienced one time costs and a loss due to the reorganization and
        move of its wholly owned subsidiary, Navtech Industries Inc. to
        substantially larger quarters on the Navajo Reservation in Shiprock,
        NM.
        


            Results for the first quarter ended June 30, 1996, show a
        substantial turnaround for the company, less the one time
        administrative expenses associated with supporting Country World
        Casinos Inc.'s
Chapter 11 proceedings.
        


            William H. Patrowicz, president of Holly Products Inc., said,
        "The Company has reorganized and moved Navtech to substantially
        larger quarters, equipped Navtech with modern equipment and expanded
        its customer base such that Navtech is beginning to realize its true
        potential.  Accordingly, first quarter results are showing a
        significant turnaround.  Country World, after much difficulty during
        1995, will hopefully emerge from Chapter 11 and allow the Company
        and its shareholders to realize its true potential."
        


            Holly Products Inc., headquartered in Bala Cynwyd, has a wholly
        owned subsidiary, Navtech Industries Inc. of Shiprock and a majority
        owned subsidiary, Country World Casinos Inc., of Denver, CO.
        Navtech is a manufacturer and tester of electronic components for
        casino equipment, hotel equipment and signage.  Country World
        Casinos Inc. is a development corporation, whose plan is to
        construct a casino in Black Hawk, CO, as well as a hotel complex.
        


        
                                           Three Months Ended June 30
                                           1996               1995
        Net Sales                           $1,794,197         $ 997,776
        Gross Profit (Loss)                    477,427          (146,401)
        Operating Expenses:
         General, Selling and Administrative 1,238,927           835,794
         Operating (Loss)                     (761,500)         (982,195)
        Loss Per Common Share:              $      .04         $     .23
       

        
        CONTACT: William Patrowicz,610/617-0400  or  Elliot Jacobson, 312/943-1100
        

FHP REPORTS FOURTH QUARTER AND FISCAL 1996 RESULTS


        


            FOUNTAIN VALLEY, Calif.  --  Sept. 5, 1996  --  FHP
        International Corporation (NASDAQ:FHPC) today reported financial
        results for the fourth quarter and fiscal year ended June 30, 1996.
        


            Fully diluted earnings per share were $0.43 in the fourth
        quarter and $1.41 for the year, before reflecting the impact of
        extraordinary charges for restructuring and increased OPM reserves
        that were recorded in prior quarters of the fiscal year.  While
        there were no such charges in the fourth quarter, the effective tax
        rate for the quarter was impacted by the full year effect of the
        extraordinary charges.
        


            Results for the fourth quarter and full twelve months of fiscal
        1996 compared with the same periods of the previous fiscal year are
        as follows:


        
                          Three months ended        Twelve months ended
                                June 30                   June 30
                         (millions of dollars, except per share amount)
        
                           1996        1995          1996        1995
        
        Revenues             $1,098      $1,000        $4,179      $3,909
        
        Operating income before
         restructuring and
         reserve charges       41.7        22.3         137.8       149.2
        
        Restructuring charge      0        75.1           9.7        75.1
        
        OPM reserve charge        0           0          45.0           0
        
        Operating income (loss)
         after restructuring and
         reserve charges       41.7       (52.8)         83.1        74.1
        
        Net income (loss) attributable
         to common stock
         Before charges    18.5         6.8          56.1        58.5
         Including charges 14.8       (39.8)         17.7        12.0
        
        Primary earnings (loss)
         per share
         Before charges    0.44        0.17          1.35        1.43
         After charges     0.35       (0.97)         0.43        0.29
        
        Fully-diluted earnings
         (loss) per share
         Before charges    0.43        0.23          1.41        1.45
         After charges     0.36       (0.57)         0.75        0.64
        

Restructuring Progress


            During the quarter, the Company completed the sale of its
        hospital and surrounding campus in Salt Lake City to Paracelsus
        Healthcare Corporation for $70 million.  Proceeds from the sale have
        been used to pay down debt.
      

  
            As a part of restructuring, Talbert Medical Management
        Corporation (Talbert) was formed on January 1, 1996 as a physician
        practice management company.  Talbert manages professional and
        licensed corporations (PCs) providing care through 54 ambulatory
        medical and dental centers in California, Arizona, Utah, New Mexico
        and Nevada.  Effective July 1, 1996, management of Talbert's
        operations in Guam has been transferred to FHP's HMO.  Talbert
        continues to provide medical care to FHP's members and also offers
        its services to other payors.
        


            Pro-forma financial results for what is now Talbert and the PCs
        are as follows:


        
                          Three months ended        Twelve months ended
                                June 30                   June 30
                                     (millions of dollars)
                            1996          1995      1996         1995
        
        Revenues                $200          $206      $779         $812
        
        Pre-tax (Loss)            (5)          (21)      (45)         (92)
        

These revenues and pre-tax losses assume Talbert received 84 percent
        of FHP's revenue for each FHP member who elected to receive health
        care through Talbert's health care delivery system.  The above pro-
        forma results include the losses from FHP's owned and operated
        hospital operations.  Effective July 1, 1996, Talbert no longer
        manages hospital services for FHP and as a result began receiving a
        lower capitation payment from FHP on that same date.

        
        Membership


            Total membership grew from 1,779,000 at June 30, 1995 to
        1,913,000 at June 30, 1996, an increase of 7.5 percent.  Senior Plan
        (sm) enrollment reached 397,000, an increase of 5.9 percent over
        last year, while commercial enrollment was 1,516,000, up 8.0 percent
        over the prior year.
      

  
        Health Care Costs


            Health care costs increased from 83.7 percent of revenue for the
        fourth quarter of fiscal 1995 to 84.6 percent of revenue for the
        same quarter this year.  Decreased premiums paid by employer groups
        have been the primary contributor to higher health care costs as a
        percent of revenue.  The Company also experienced higher hospital
        and pharmacy costs compared to the same quarter last year.
      

  
            Health care costs were 84.5 percent of revenue for the 1996
        fiscal year, compared with 82.8 percent in the prior year.
        


        Selling, General and Administrative (SG&A) Expenses


            The Company continued to reduce administrative expenses as a
        percent of revenue.  SG&A expenses for the fourth quarter ending
        June 30, 1996 were 11.7 percent of revenue compared to 14.0 percent
        for the same quarter last year.
      

  
            For the fiscal year, SG&A expenses were 12.2 percent of revenue
        compared with 13.3 percent in the prior fiscal year.
        


        PacifiCare Transaction


            On August 4, 1996, the Company entered into a definitive
        agreement to be acquired by PacifiCare Health Systems, Inc.  The
        combined company will have nearly 4 million commercial and Medicare
        members in 15 states and Guam and total revenue of more than $8.6
        billion.  The transaction had no effect on the Company's fiscal 1996
        results.
      

  
            FHP International Corporation is a diversified health care
        services company which, through its HMO subsidiaries, serves members
        in 11 states and Guam.
        



                         FHP INTERNATIONAL CORPORATION
                       CONSOLIDATED STATEMENTS OF INCOME
                                 (Unaudited)
        
        (Amounts in thousands, except per share data
         and membership data)
        
                       Three month
                       period ended      Percent    Year ended      Percent
                         June 30,        Change      June 30,       Change
                     1996        1995             1996       1995
        
        Revenue       $1,097,510  $  999,571  10%   $4,179,284  $3,909,380
        7%
        
        Expenses:
          Primary        
           healthcare    895,384     807,434  11     3,405,588   3,121,529
        9
          Other        
           healthcare     32,561      29,573  10       125,340     116,960
        7
          General, administrative
           and
           marketing     127,863     140,231  (9)      510,613     521,702
        (2)
          OPM reserve
           charge          -           -       -        45,000
        -      -    
          Restructuring
           charges         -          75,110   -         9,659      75,110
        (87)
        
        Total
         expenses      1,055,808   1,052,348   -     4,096,200   3,835,301
        7
        
        Operating income
         (loss)           41,702     (52,777)  179      83,084      74,079
        12
        Interest income,
         net               4,787       2,485    93      15,033       6,107
        146
        
        Income (loss) before
         income taxes     46,489     (50,292)  192      98,177      80,186
        22
        Provision (credit) for
         income taxes     25,052     (17,126)  246      53,964      42,894
        26
        
        Net income
         (loss)           21,437     (33,166)  165      44,153      37,292
        18
        Preferred stock
         dividend          6,635       6,606    -       26,425      25,337
        4
        
        Net income (loss)
         attributable to
         common stock    $14,802    $(39,772)  137     $17,728     $11,955
        48
        
        Primary earnings (loss)
         per share attributable
         to common stock   $0.35     ($0.97)            $0.43       $0.29
        
        Weighted average number
         of common shares and
         common share
         equivalents      41,802      40,954            41,524      41,057
        
        Fully diluted earnings
         (loss) per
         share             $0.36     ($0.57)            $0.75       $0.64
        
        Fully diluted weighted
         average number of
         common shares and
         common shares
         equivalent       58,770      57,916            58,492      58,018
        
        Primary earnings per share
         attributable to common
         stock before
         charges           $0.44      $0.17             $1.35       $1.43
        
        Fully diluted earnings
         per share before
         charges           $0.43      $0.23             $1.41       $1.45
        
        Medical membership:
          Commercial       1,516,000   1,404,000
          Senior             397,000     375,000
                       1,913,000   1,779,000
        

                       FHP INTERNATIONAL CORPORATION
                    CONSOLIDATED BALANCE SHEET INFORMATION
                                 (Unaudited)
        
                                              June 30,      June 30,
        (Amounts in thousands)                      1996          1995
        
        Cash and short-term investments         $  354,792    $  456,364
        Current assets                             545,837       674,279
        Total assets                             1,988,386     2,315,816
        Medical claims payable                     371,949       341,222
        Current liabilities                        633,901       752,658
        Long-term obligations                      104,184       337,817
        Total liabilities                          824,757     1,175,675
        Stockholders' equity                     1,163,629     1,140,141


        CONTACT:  FHP International Corp., Fountain Valley;
                  Charlie Eldredge, 714/825-6905 (Investors);
                  Ria Marie Carlson, 714/378-5750 (Media)