DALLAS, September 13, 1996 -- href="chap11.foxmeyer.html">FoxMeyer Drug Company, a unit of
FoxMeyer Health Corporation (NYSE: FOX), said that, in an agreement
reached with the creditors' committee and postpetition lenders and
approved by the Court today, vendor protection under a previously
announced trade lien program has been strengthened to provide up to
$100 million in credit secured by a first priority lien on the
Company's inventory and an administrative claim priority.
As part of the same agreement, the Company has agreed to waive
potential preference claims in favor of each supplier that ships to
it on normal trade terms. The amount waived is tied to the amount
of trade credit extended by each supplier. This will quickly - and
without further litigation - resolve potential preference claims
that have seriously disrupted the Company's relations with its
vendors.
Robert A. Peiser, vice chairman and chief executive officer of
the Company, said that with the stronger trade credit lien program
in place, vendors have every reason to restore normal purchasing
terms on shipments of merchandise to FoxMeyer, one of the largest
wholesale drug distributors in the country.
"We took this action - which provides for one of the strongest
trade lien programs ever developed in favor of postpetition vendors
- in order to assure the flow of product on terms that both the
Company and its vendors can afford," Mr. Peiser said. "We are very
eager to do business with suppliers who will work with us on
customary terms, and we believe that with the stronger trade lien
now in place, vendors have every protection they need to do so."
He added that the agreement will provide for the "enhancement of
relations between the company and the vendor community and will
enable FoxMeyer to assure customers that the company will continue
operating at maximum capacity."
Under the Court's order, all suppliers who ship on mutually
agreeable terms will receive prompt payment for inventory shipped
after the August 27 filing date and a first priority lien on the
Company's inventory up to an aggregate amount of $100 million and an
administrative priority claim for all current shipments. This lien
is equal on a pro rata basis to that of GE Capital Services under
the previously announced $775 million debtor-in- possession (DIP)
financing facility and senior to other claims in the case.
Additionally, the Court's order provides that FoxMeyer will
agree to waive potential preference claims in favor of suppliers
under the program.
FoxMeyer Drug and certain affiliated companies filed to
reorganize under Chapter 11 of the Bankruptcy Code on August 27,
1996, in U.S. Bankruptcy Court in Wilmington, Delaware. FoxMeyer
Drug is the nation's fourth largest wholesaler of pharmaceutical
products, health and beauty aids. The Company, which is
headquartered in Dallas, employs 2,400 people in 21 states and the
District of Columbia.
NASHVILLE, Tenn. -- Sept. 13, 1996 -- Shoney's Inc.
today reported results for the third quarter of fiscal 1996 ending
Aug. 4, 1996.
Revenues for the 12-week period increased 1% to $257.0 million
from $253.9 million in the third quarter of fiscal 1995. Comparable
restaurant sales for the third quarter of 1996 were up 0.5%,
including a menu price increase of 2.1%. Comparable restaurant
sales for the company's Shoney's Restaurants were down 0.7%, while
the company's Captain D's restaurants had a comparable restaurant
sales increase of 5.3%. Income from continuing operations for the
third quarter was $6.6 million, or $.16 per share on a primary
basis, compared to $8.2 million, or $.20 per share, in the prior
year.
C. Stephen Lynn, chairman of the board and chief executive
officer, said, "We have made significant progress in our turnaround.
The trends in comparable restaurant sales and customer satisfaction
scores indicate we are improving operational execution at our
Shoney's Restaurants. The journey is by no means complete, but the
journey back has definitely begun. I am confident we have the right
team and the right programs in place to build long term shareholder
value."
Lynn said, "Our operational focus for the Shoney's Restaurants
over the last several months has been the middle Tennessee market.
I am pleased to report the middle Tennessee market has reported
positive comparable restaurant sales for 19 of the 21 weeks in the
period ending August 25, 1996, with an overall comparable restaurant
sales increase for that period of 3.5%. Further, those results
exceed the comparable restaurant sales reported for all other
company-owned Shoney's Restaurants for that same period by 5.2%.
Additional evidence of our operational improvement is our customer
satisfaction scores for company-owned Shoney's Restaurants which
have increased by 16% since the beginning of the fiscal year.
Lynn continued, "I am also pleased by the continuing excellent
performance of our Captain D's restaurants. The increase in
comparable restaurant sales of 5.3% is indicative of their
outstanding performance in satisfying customers."
Revenues for the first three quarters of fiscal 1996, a 40-week
period, were $814.9 million, down slightly from revenues of $817.5
million in the prior year. Comparable restaurant sales for the
first three quarters of fiscal 1996 were down 0.3%, which included a
menu price increase of 1.7%. Net income for the first three
quarters was $37.2 million, or $.87 per share on a fully diluted
basis. Results for the first three quarters include a gain of $22.1
million, net of taxes, on the sale of Mike Rose Foods Inc.
consummated in the first quarter. This sale completed the
divestitures announced in January 1995 as part of the company's
restructuring plan. Income from continuing operations in the first
three quarters of 1996 was $14.7 million, or $.35 per share on a
primary basis, compared to $22.4 million, or $.54 per share, in the
prior year.
In conclusion, Lynn noted, "Our acquisition of TPI Restaurants,
which was our largest franchisee, was completed on Sept. 9, 1996.
The addition of TPI's 176 Shoney's Restaurants and 67 Captain D's
brings the total company-owned restaurants to 967, representing 65%
of the 1,495 restaurants in our system. We are energized by the
opportunities this combination presents and are working to quickly
achieve the synergies available from the consolidation of corporate
and commissary support functions. We have already announced that
both commissaries operated by TPI will be closed by the end of the
fiscal year and the $100 million of distribution revenues will be
serviced by the existing Shoney's Inc. commissaries.
Shoney's Inc. opened 31 restaurants in the first three quarters
of 1996, including 26 Shoney's Restaurants, two Captain D's, two
Pargo's and one BarbWire's. The company acquired 15 of the 26
Shoney's Restaurants and both Pargo's from franchisees. Franchisees
opened five restaurants in the first three quarters of 1996,
resulting in a net decrease of 55 franchised restaurants. At the
end of the quarter, the company had a total of 1,495 restaurants in
34 states, including 724 company-owned and 771 franchised
restaurants.
The company's common stock is traded on the New York Stock
Exchange under the symbol "SHN".
Consolidated Statement of Income
Twelve Weeks Ended August 4, 1996 and August 6, 1995
1996 1995
Amount % Amount %
Revenues
Net sales $251,150,233 97.7 $247,332,365 97.4
Franchise fees 5,404,985 2.1 5,718,265 2.3
Other income 488,130 0.2 846,417 0.3
------------ ----- ------------ -----
257,043,348 100.0 253,897,047 100.0
Costs and Expenses
Cost of sales
Food and supplies 104,449,140 40.6 102,153,222 40.2
Restaurant labor 63,250,547 24.6 61,502,074 24.2
Operating expenses 54,824,112 21.4 53,509,123 21.1
------------ ------ ----------- -----
222,523,799 86.6 217,164,419 85.5
General and
administrative 15,458,729 6.0 14,070,280 5.5
Interest expense 8,633,925 3.3 9,406,788 3.8
Restructuring
expenses 86,042 0.0
------------ ------ ----------- -----
246,616,453 95.9 240,727,529 94.8
Income from continuing
operations before
income taxes 10,426,895 4.1 13,169,518 5.2
Provision for
income taxes 3,806,000 1.5 5,004,000 2.0
------------ ------ ----------- -----
Income from
continuing
operations 6,620,895 2.6 8,165,518 3.2
Discontinued operations,
net of income tax 2,034,226 0.8
------------ ------ ------------ -----
Net income $ 6,620,895 2.6 $ 10,199,744 4.0
Earnings per
common share
Primary:
Income from
continuing
operations $0.16 $0.20
Discontinued
operations 0.05
----- -----
Net income $0.16 $0.25
Fully diluted:
Income from
continuing
operations $0.16 $0.20
Discontinued
operations 0.05
----- -----
Net income $0.16 $0.25
Weighted average shares
outstanding
Primary 41,808,671 41,613,498
Fully diluted 41,808,671 41,613,498
Consolidated Statement of Income
Forty Weeks Ended August 4, 1996 and August 6, 1995
1996 1995
Amount % Amount %
Revenues
Net sales $795,305,943 97.6 $797,154,102 97.5
Franchise fees 17,160,173 2.1 18,572,185 2.3
Other income 2,466,084 0.3 1,750,483 0.2
------------ ----- ------------ -----
814,932,200 100.0 817,476,770 100.0
Costs and Expenses
Cost of sales
Food and supplies 332,144,308 40.8 334,783,265 41.0
Restaurant labor 201,036,999 24.7 192,228,741 23.5
Operating
expenses 178,024,112 21.8 174,356,277 21.3
------------ ----- ------------ -----
711,205,419 87.3 701,368,283 85.8
General and
administrative 51,979,171 6.4 47,219,607 5.8
Interest expense 27,599,142 3.3 31,007,162 3.8
Restructuring
expenses 1,785,915 0.2
------------ ----- ------------ -----
790,783,732 97.0 781,380,967 95.6
Income from
continuing
operations before
income taxes 24,148,468 3.0 36,095,803 4.4
Provision for
income taxes 9,473,000 1.2 13,716,000 1.7
------------ ----- ------------ -----
Income from
continuing
operations 14,675,468 1.8 22,379,803 2.7
Discontinued
operations, net
of income tax 397,816 0.0 6,977,133 0.9
Gain on sale of
discontinued
operations, net
of income tax 22,080,375 2.7
------------ ----- ------------ -----
Net income $ 37,153,659 4.5 $ 29,356,936 3.6
Earnings per
common share
Primary:
Income from
continuing
operations $0.35 $0.54
Discontinued
operations 0.01 0.17
Gain on sale of
discontinued
operations 0.53
------ -----
Net income $0.89 $0.71
------ -----
Fully diluted:
Income from
continuing
operations $0.39 $0.54
Discontinued
operations 0.01 0.17
Gain on sale of
discontinued
operations 0.47
----- -----
Net income $0.87 $0.71
Weighted average shares
outstanding
Primary 41,709,280 41,495,234
Fully Diluted 46,926,890 41,495,234
Consolidated Statement of Cash Flow
Forty Weeks Ended
Aug. 4, Aug. 6,
1996 1995
Operating activities
Net income $ 37,153,659 $ 29,356,936
Adjustments to reconcile net
income to net cash provided by
operating activities:
Income from discontinued
operations, net of taxes (397,816) (6,977,133)
Gain on sale of discontinued
operations, net of taxes (22,080,375)
Depreciation and amortization 33,995,638 33,641,554
Amortization of deferred
charges and other non-cash
charges 9,259,600 6,460,368
Realized and unrealized loss
on marketable securities and
sale of other assets 1,392,202
Change in deferred income taxes 5,544,000 3,598,000
Changes in operating assets and
liabilities (17,424,262) 11,605,146
Net cash provided by continuing
operating activities 46,050,444 79,077,073
Net cash (used by) provided by
discontinued operating
activities (655,622) 9,364,007
Net cash provided by operating
activities 45,394,822 88,441,080
Investing activities
Cash required for property, plant
and equipment (60,416,682) (45,763,816)
Cash required for assets held
for sale (1,291,322)
Proceeds from disposal of
property, plant and equipment 8,492,792 3,500,850
Proceeds from disposal of
discontinued operations 51,279,601
Cash required for other assets (5,072,556) (796,965)
Net cash used by investing
activities (5,716,845) (44,351,253)
Financing activities
Payments on long-term debt
and capital lease obligations (75,534,716) (107,677,744)
Proceeds from long-term debt 47,175,000 78,000,000
Net proceeds from short-term
borrowings 8,336,000 4,918,000
Payments on litigation
settlement (17,515,535) (17,547,347)
Cash required for debt
issue costs (3,337,416) (2,033,827)
Proceeds from exercise of
employee stock options 518,250 1,675,335
Net cash used by financing
activities (40,358,417) (42,665,583)
Change in cash $ (680,440) $ 1,424,244
Shoney's, Inc. and Subsidiaries
Consolidated Balance Sheet
Aug. 4, Oct. 29
Assets 1996 % 1995 %
Current assets
Cash and cash
equivalents $ 6,833,148 1.2 $ 7,513,588 1.4
Notes and accounts
receivable 12,841,679 2.3 13,013,821 2.4
Inventories 39,011,026 7.1 33,483,964 6.3
Deferred taxes and
other current
assets 34,922,798 6.4 30,716,885 5.8
Net current assets
of discontinued
operations 0 14,495,812 2.7
Total current
assets 93,608,651 17.0 99,224,070 18.6
Property, plant and equipment
Land 122,551,110 22.2 117,104,203 21.9
Buildings 245,025,965 44.4 227,124,559 42.5
Restaurant and
other equipment 276,420,363 50.1 256,936,595 48.0
Leasehold
improvements 58,552,620 10.6 57,330,822 10.7
Rental properties 23,944,129 4.3 24,136,182 4.5
Buildings under
capital leases 19,413,584 3.5 18,122,394 3.4
Construction in
progress 3,636,012 0.7 9,789,522 1.8
----------- ---- ----------- -----
749,543,783 135.8 710,544,277 132.8
Less accumulated
depreciation and
amortization (312,006,039) (56.5) (291,057,795) (54.4)
Net property, plant
and equipment 437,537,744 79.3 419,486,482 78.4
Other assets
Deferred charges and
other intangible
assets 13,118,264 2.4 7,085,784 1.3
Other 7,747,713 1.3 9,219,658 1.7
Total other assets 20,865,977 3.7 16,305,442 3.0
----------- ----- ----------- ----
$552,012,372 100.0 $535,015,994 100.0
Liabilities and Shareholders'
Equity (Deficit)
Current liabilities
Accounts payable $ 31,323,079 5.7 $ 33,099,813 6.2
Federal and state
income taxes 6,844,864 1.2 7,486,210 1.4
Accrued expenses 78,419,594 14.2 74,312,652 13.9
Reserve for litigation
settlement 23,024,788 4.2 23,372,889 4.4
Debt and capital
lease obligations
due within
one year 44,705,335 8.1 34,448,154 6.4
Total current
liabilities 184,317,660 33.4 172,719,718 32.3
Long-term debt
and capital lease
obligations due
after one year 383,157,995 69.4 406,032,446 75.9
Reserve for litigation
settlement 21,560,000 3.9 38,727,434 7.2
Deferred income
taxes 24,767,797 4.5 19,223,797 3.6
Deferred income and
other liabilities 6,100,697 1.1 6,619,234 1.2
Shareholders' Equity (Deficit)
Common stock 41,664,367 7.5 41,510,659 7.8
Additional paid-in
capital 62,040,613 11.2 60,770,176 11.4
Retained earnings
(deficit) (173,433,811) (31.3) (210,587,470) (39.4)
Unrealized gain on
securities available
for sale 1,837,054 0.3 0
Total shareholders'
equity (deficit) (67,891,777) (12.3) (108,306,635) (20.2)
------------ ------ ------------- ------
$552,012,372 100.0 $535,015,994 100.0
CINCINNATI, OH -- Sept. 13, 1996 -- Eagle-Picher Industries
(OTC: EPIHQ.U) today announced that sales for the third quarter
ended August 31, 1996 were $216.4 million compared with $210.7
million for the third quarter of 1995. Operating income for the
quarter declined to $13.3 million from $14.0 million for the same
period last year. On August 28, 1996, the Disclosure Statement,
which accompanied the Third Amended Consolidated Plan of
Reorganization (the "Plan") filed with the U.S. Bankruptcy Court,
provided that the Company's estimated asbestos-related personal
injury liability was $2.0 billion. A statement issued on August 28,
1996 is described below. The Company's financial statements reflect
the change in the Company's estimated asbestos-related personal
injury liability from $2.5 billion to $2.0 billion as of August 31,
1996. This adjustment has absolutely no impact on cash flow. In the
third quarter of 1995 the Company realized a pretax gain of $11.7
million on the sale of securities which the Company received in the
reorganization of a supplier to which it had provided financing. At
the end of the third quarter of 1996, the Company's cash position
was $113.5 million. This compares with a cash position of $100.4
million for the third quarter of 1995 and a cash position of $93.3
million at the end of fiscal year 1995.
Reorganization Effort:
As indicated above, on August 28, the Company issued the
following statement concerning its reorganization effort: Eagle-
Picher Industries announced that a Third Amended Consolidated Plan
of Reorganization (the Plan) and the accompanying proposed
Disclosure Statement were filed today with the U.S. Bankruptcy Court
in Cincinnati. The Bankruptcy Court entered an order approving the
Disclosure Statement. Pursuant to such order, voting on the Plan by
the various classes of creditors must be completed by November 4,
1996. The order also set a hearing to consider confirmation of the
Plan for November 13, 1996. The Plan, which was filed jointly by
the Company, the Injury Claimants' Committee (ICC), and the
Representative for Future Claimants (RFC), is based on a settlement
of $2.0 billion for the Company's liability for present and future
asbestos-related personal injury claims. The Unsecured Creditors'
Committee (UCC) supports the Plan. If the Plan becomes effective,
the UCC's appeal before the Federal District Court of the Bankruptcy
Court's estimation of $2.5 billion for the Company's liability for
present and future asbestos-related personal injury claims will be
dismissed. One individual member of the UCC intends to pursue an
appeal.
The ICC represents approximately 150,000 persons alleging injury
due to exposure to asbestos-containing products manufactured by
Eagle-Picher from 1934 until 1971. Future personal injury claimants
are represented by the RFC.
Based on the settlement of $2.0 billion for the Company's
liability with respect to present and future asbestos-related
personal injury claims, the Company's estimate that all other
prepetition unsecured claims aggregate approximately $157 million,
and the expected value of the equity of the reorganized Company, the
Company anticipates that each holder of a prepetition general
unsecured claim, including environmental claims, will receive a
distribution equal to approximately 33% of its claim. Such
distribution will be paid 1/2 in cash and 1/2 in notes with a three-
year maturity.
Pursuant to the Plan, the trust to be established to resolve and
satisfy all asbestos and lead-related personal injury claims will
receive consideration consisting of cash, notes and all of the stock
of the reorganized Company. Based upon the above assumptions, the
Company estimates that the aggregate value of the consideration to
be distributed to the trust will be equal to approximately 33% of
the $2.0 billion settlement amount for the Company's liability for
present and future asbestos-related personal injury claims.
As was the case with previous reorganization plans filed by the
Company, the Company's equity security holders will receive no
distribution under the Plan and their shares will be canceled.
Operating Results:
Thomas E. Petry, Eagle-Picher Chairman, stated that "sales and
operating income for the Automotive Group for the third quarter of
1996 were approximately equal to those of the third quarter of 1995.
The Group's product mix continues to be oriented toward the truck,
van, and sport utility segment of the market which has been well
received by the consumer. Also, intense pressure from customers to
reduce pricing not only on current business, but also on new
business is a continuing source of concern. It is anticipated that
for the upcoming model year, automotive production will be slightly
lower than the past year. The Machinery Group also experienced
lower sales and operating income. Schedules for shipments of earth
moving machinery, although at lower levels than last year, are
expected to improve as the year progresses. The competitive
pressures in the marketplace for forklift trucks adversely impacted
profit margins. Those segments of the Technologies Division which
manufacture special purpose batteries for aerospace, defense, and
commercial markets experienced similar results. The Transicoil
Division which serves the aircraft, aerospace, and defense markets,
experienced improved results when compared with the third quarter of
1995. The Industrial Group experienced increased results from those
of the previous year. The portion of the Technologies Division in
the Industrial Group which manufactures products for solar displays,
and those manufacturing boron products for the nuclear market
performed well. The Minerals Division, which mines and processes
diatomaceous earth and perlite products, primarily for high purity
filtration, continued to enjoy excellent results.
"It is possible that the Company could emerge from
reorganization by the end of the fiscal year (November 30, 1996).
Business prospects are good and the Company has many new capital
projects which are expected to generate above average returns on
capital."
The figures follow:
(Data in thousands except per share)
Three Months Ended August 31 1996 1995
Net sales $216,400 $210,723
Operating income 13,364 14,022
Adjustment for asbestos litigation 502,197 --
Gain on sale of investment -- 11,505
Other non-operating items (57) 99
Reorganization items 439 (132)
Income before taxes 515,943 25,494
Net income 514,161 23,394
Net income per share 46.57 2.12
Average shares 11,041 11,041
Nine Months Ended August 31 1996 1995
Net sales $660,108 $633,704
Operating income 46,016 48,282
Adjustment for asbestos litigation 502,197 --
Gain on sale of investment -- 11,505
Other non-operating items (649) (482)
Reorganization items 529 (888)
Income before taxes 548,093 58,417
Net Income 542,425 53,202
Net income per share 49.13 4.82
Average shares 11,041 11,041
NORWALK, Conn. -- Sept. 13, 1996 -- The Caldor
Corporation (NYSE: CLD) today announced its financial results for
the thirteen and twenty-six week periods ended August 3, 1996.
For the second quarter of 1996, net sales were $622 million
compared to $671 million for the second quarter of 1995, a 7.2%
decline. Comparable store sales declined by 7.5% for the quarter.
Lower comparable sales in the second quarter primarily reflect a
change in strategy to reduce sales promotions that are not
profitable or compatible with the Company's long-term strategy.
Sales results for the quarter were also adversely affected by the
unseasonably cool summer weather as compared to last year, which
negatively impacted seasonal merchandise categories. For the twenty-
six weeks ended August 3, 1996, net sales were $1.19 billion
compared to $1.24 billion in the same period last year, a decrease
of 3.6%. Comparable store sales declined by 4.4% for the first half
of fiscal 1996.
The Company's operating loss (results before interest, taxes,
extraordinary and reorganization items) for the second quarter of
1996 was $8.6 million versus operating earnings of $15.5 million in
the period last year. For the six months ended August 3, 1996 the
Company's operating loss was $34.7 million compared to operating
earnings of $10.5 million in the corresponding period last year.
The Company's net loss for the second quarter was $28.4 million,
or $1.67 per share, compared to net earnings of $3.3 million, or
$0.20 per share, for the second quarter of 1995. The net loss for
the first half of 1996 was $71.7 million, or $4.23 per share, in
line with the Company's plan for the period. In the comparable
period in 1995 the net loss was $11.1 million, or $0.66 per share.
The results for the second quarter and the first half of 1996
included reorganization items of $10.8 million and $19.5 million,
respectively, principally for professional fees and other bankruptcy
related expenses.
Don Clarke, Chairman and Chief Executive Officer of Caldor,
stated, "The Company, as planned, continues to have significant
credit availability, currently aggregating approximately $242
million under our debtor-in-possession bank facility.
"We are continuing to make progress in developing a
comprehensive, long-term business plan, which is expected to be
completed in November. In addition, we made several changes during
the quarter designed to improve the Company's future performance,
including changing our marketing strategy. We also commenced
operations at our new Westfield, Massachusetts distribution center,
effectively regionalizing our distribution of merchandise, which is
expected to significantly reduce distribution and freight expenses
in 1997. The Company will continue to implement additional cost
savings programs to achieve further reductions in SG&A expenses."
Mr. Clarke also noted that the Company recently announced the
appointment of Susan Sprunk as Senior Vice President, Marketing. A
seasoned retail marketing executive with 30 years of experience, Ms.
Sprunk will play a key role in helping to shape Caldor's future
marketing and promotional strategies.
The Company opened its sixth new store for 1996 in Silver
Spring, Maryland in July, and plans to open a seventh store, located
at Atlantic Center in Brooklyn, New York, later in the year.
The Caldor Corporation is the fourth largest discount department
store chain in the U.S., with annual sales of approximately $2.7
billion and approximately 23,000 Associates. It currently operates
160 stores in ten East Coast states. With a strong consumer
franchise in high density urban/suburban markets, Caldor offers a
diverse merchandise selection, including both softline and hardline
products.
The Caldor Corporation and Subsidiaries
Consolidated Statements of Operations
(Dollars in thousands, except per share data)
(Unaudited)
13 Weeks Ended 26 Weeks Ended
Aug. 3, July 29, Aug. 3, July 29,
1996 1995 1996 1995
Net sales $622,212 $670,830 $1,190,772
$1,235,080
Cost of goods sold 455,016 487,495 881,176
895,198
SG&A expenses, net of
depreciation and
amortization 162,116 154,766 318,648
304,607
Depreciation and
amortization 13,676 13,108 25,668
24,755
Operating earnings (loss) (8,596) 15,461 (34,720)
10,520
Interest expense, net 9,045 9,963 17,441
20,050
Earnings (loss) before
reorganization items,
income taxes and
extraordinary item (17,641) 5,498 (52,161)
(9,530)
Reorganization items 10,779 19,540
Earnings (loss) before
income taxes and
extraordinary item (28,420) 5,498 (71,701)
(9,530)
Income tax provision (benefit) 2,155
(3,631)
Earnings (loss) before
extraordinary item (28,420) 3,343 (71,701)
(5,899)
Extraordinary loss
(5,164)
Net earnings (loss) ($28,420) $3,343 ($71,701)
($11,063)
Per Share Amounts:
Earnings (loss) before
extraordinary item ($1.67) $0.20 ($4.23)
($0.35)
Extraordinary loss
($0.31)
Net earnings (loss) ($1.67) $0.20 ($4.23)
($0.66)
Weighted average common and
common equivalent shares
outstanding 17,012 16,933 16,935
16,889
The Caldor Corporation and Subsidiaries
Consolidated Balance Sheets
(Dollars in thousands)
(Unaudited)
Aug. 3, July 29, Feb. 3,
1996 1995 1996
ASSETS
Current assets:
Cash and cash equivalents $32,016 $25,485
$25,577
Restricted cash 1,516
Accounts receivable 19,879 9,962
18,059
Merchandise inventories 551,699 610,428
499,948
Assets held for disposal, net
25,265
Refundable income taxes 3,290
5,380
Prepaid expenses & other
current assets 21,619 21,412 17,047
Total current assets 630,019 667,287 591,276
Property and equipment, net 540,624 538,604
551,977
Debt issuance costs 3,963 3,889
4,674
Deferred income taxes 16,626
16,626
Other assets 9,512 16,241
9,466
$1,200,744 $1,226,021 $1,174,019
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable and
accrued expenses $238,610 $337,893 $227,075
Other accrued liabilities 55,492 46,134
52,836
Federal and state income taxes payable 24,235
Current deferred income taxes 4,539
Borrowings under revolving
credit agreement 155,000 193,295 40,000
Current maturities of long-term debt 45,618
Total current liabilities 449,102 651,714 319,911
Long-term debt 247,798 221,735
260,785
Deferred income taxes 7,131
Other long-term liabilities 27,643 18,838
25,158
Liabilities subject to compromise 510,650
530,957
Total stockholders' equity (deficit) (34,449) 326,603
37,208
$1,200,744 $1,226,021 $1,174,019
(1) EBITDAR (Earnings before interest, taxes, depreciation,
amortization and reorganization) for the thirteen weeks
ended August 3, 1996 was a profit of $6.3 million
compared to a profit of $28.9 million in 1995. For the
twenty-six weeks ended August 3, 1996, EBITDAR was a
loss of $6.6 million compared to a profit of $35.9 million
for the prior year.
(2) Certain items previously reported in the accompanying
financial statements have been reclassified to conform
with the current year's classifications.
CONTACT: Information Contacts:
Wendi Kopsick/Jim Fingeroth, Kekst and Company:
(212) 593-2655
ATLANTA, GA -- Sept. 13, 1996 -- Modem leader Hayes
Microcomputer Products, Inc. today announced a strategic
restructuring of its manufacturing operations to improve its
competitive position in the rapidly growing data communications
marketplace. The company is consolidating its domestic production
facilities at its Norcross, Georgia headquarters. It will be
discontinuing its Thousand Oaks, California manufacturing operations
in phases between today and March, 1997.
The company has notified employees of the impending closing, in
compliance with state and federal regulations. Approximately 350 to
375 manufacturing- related positions will be affected by the
shutdown of operations. An engineering group and the Company's
multi-media products business unit will continue at the Hayes
Thousand Oaks location.
Affected employees will be provided with outplacement services
and severance payments, under the company's reduction-in-force
policy.
Hayes, since emerging from Chapter 11 with new investors and a
strengthened management team, is taking this efficiency measure in
its U.S. manufacturing operations at a time of solidly improving
business performance. The restructured Hayes has achieved gains in
both total revenues and operating profits.
To accelerate this positive momentum, the company's new Chief
Executive Officer, Joe Formichelli, working with Chairman Dennis
Hayes, simplified manufacturing operations so that total output will
be increased with far fewer employees. Formichelli, formerly the
top manufacturing executive at IBM PC Company, took steps to reduce
total parts and overhead redundancies in the manufacture of Hayes
product line.
"The computer industry is undergoing a period of intensifying
global competition, where speed to market and low cost of production
are more important than ever," said Chairman Dennis Hayes. "No
where is this new reality more acutely felt than in the analog modem
business."
"For Hayes to continue to improve its position in this industry,
it must continue to focus on improving efficiency in all areas ...
especially manufacturing," added CEO Josephe Formichelli. "We truly
regret the pain this decision causes many of our loyal employees.
However, we are making a significant effort to ease them through
this difficult transition."
The closing of the Thousand Oaks manufacturing facility will
require the company to incur a one-time restructuring charge in the
fourth quarter of 1996 of $6.5 million. Hayes expects to save five
to six million dollars annually in manufacturing overhead costs.
Based in Norcross, Georgia, Hayes markets its ACCURA, OPTINIA,
Practical Peripherals and CENTURY brands of personal computer modems
and remote connectivity system products worldwide. With
distributors in more than 45 countries, it is one of the largest
manufacturers of modems in the world.
NOTE: Hayes, the Hayes logo, ACCURA, OPTIMA, and CENTURY are
trademarks of Hayes Microcomputer Products, Inc. Other trademarks
are trademarks of their respective companies.
CONTACT: Angela Hooper, Hayes Microcomputer Products, Inc.,
770-840-9200 ext. 6030, Internet Address: ahooper@hayes.com, or Hayes World Wide Web Site: " target=_new>http://www.hayes.com">http://www.hayes.com;
CHICAGO, IL -- Sept. 13, 1996 -- WMS Industries Inc.
(NYSE:WMS) announced today its fiscal 1996 year end profits and the
filing by Midway Games Inc., its coin-operated video game and home
video game subsidiary, of Midway's initial public offering with the
Securities and Exchange Commission.
The Company previously announced in June 1996, that its Board of
Directors had approved restructuring initiatives intended to, among
other matters, reduce regulatory burdens and risks, enhance
shareholder value by enabling investors to value three distinct
areas of the Company's operation and reduce expenses of the
Company's pinball operations. The Board approved: a spin-off of
100% of WMS' Puerto Rico-based hotel, casino and management business
to the Company's stockholders; an initial public offering of
approximately 15% of the Company's coin-operated video game and home
video game business and the downsizing of the Company's pinball
machine business.
WMS' revenues and results from continuing operations for the
year ended June 30, 1996 reflect three business segments: the Midway
Games Inc. subsidiary which is the coin-operated and home video
games segment; pinball and novelty games segment; and video lottery
terminals and gaming devices segment. Discontinued operations
reflect the results from the hotel/casino business scheduled to be
spun off to the Company's stockholders. Revenues for fiscal 1996
increased to $338,625,000 from $314,494,000 in the prior year.
Income from continuing operations, which includes restructuring and
related costs of downsizing the pinball business, was $7,477,000,
$0.31 per share, compared with $23,012,000, $0.96 per share, in the
prior fiscal year. Discontinued operations for fiscal 1996 resulted
in a loss of $2,938,000, $0.12 per share, compared with a loss of
$3,805,000, $0.16 per share, in the prior year. The fiscal 1996
loss from discontinued operations includes costs to be incurred in
connection with the spin-off of the hotel/casino business of
$5,891,000 net of related taxes. Net income which includes both
continuing and discontinued operations was $4,539,000, $0.19 per
share, for the fiscal year ended June 30,1996 compared with
$19,207,000, $0.80 per share, in the prior year.
Revenues of the Company's video game subsidiary, Midway Games
Inc., increased 36% in fiscal 1996 to $245,423,000 from $180,479,000
in the prior year. Midway's fiscal 1996 operating profit was
$40,494,000 compared with $47,136,000 in the prior year
notwithstanding a reduction in operating profit from licensing
activities of $16,104,000 in fiscal 1996 compared to fiscal 1995 and
an increase of approximately $17,800,000 in fiscal 1996 research and
development expense due primarily to an increased number of video
games under development.
Pinball and novelty segment revenues for fiscal 1996 decreased
50% to $55,679,000 from $111,843,000 in the prior year due to an
industry wide decline in demand for pinball games. This business
segment produced an operating loss of $17,093,000 in fiscal 1996
compared with an operating loss of $2,590,000 in the prior year.
The fiscal 1996 operating loss reflects restructuring and related
costs of $3,422,000 incurred to downsize these operations, which is
expected to result in approximately $10,000,000 of reductions in
annual operating expense for this business segment.
Fiscal 1996 video lottery terminal and gaming devices segment
revenues increased approximately 69% to $37,523,000 from $22,172,000
in the prior year primarily as a result of the Company having
commenced sales of its slot machine product line to various
jurisdictions during the second half of the 1996 fiscal year. The
Gaming segment reported an operating loss of $9,508,000 in fiscal
1996 compared with an operating loss of $8,036,000 in the prior
year. The Company began initial shipments of the Williams FX slot
machines to customers in Nevada, the largest gaming market in the
country, in July 1996, and expects to introduce its Williams GX
dotmation slot machines and Williams Quantum XL multigame video
gaming devices into Nevada and other markets during the first six
months of fiscal 1997.
Segment operating profit for the three months ended June 30,
1995 was $8,821,000 as compared to a segment operating loss of
($10,924,000) in the quarter ended June 30, 1996. This change
results primarily from the loss of profit from the significant
decline in pinball game sales and a restructuring provision of
$3,422,000 to downsize the pinball business segment; an additional
provision of $2,200,000 for obsolete inventory in the gaming segment
and an increase in reasearch and development expense of $7,985,000
in the 1996 quarter compared to the 1995 quarter primarily in the
video game segment, from the inclusion of Atari Games in operations
subsequent to its purchase by the Company on March 29, 1996. The
1996 quarter also reflects a decrease of $2,000,000 in licensing
operating profit in the video game segment compared to the 1995
quarter.
The Company's video game subsidiary Midway Games Inc. filed
today with the Securities and Exchange Commission its Form S-1
Registration Statement in preparation for Midway's initial public
offering of 5,100,000 shares of common stock (5,865,000 shares if
the underwriters' over-allotment option is exercised in full) at an
anticipated initial offering price of between $20 and $22 per share.
Midway will have outstanding 38,500,000 shares upon completion of
the offering (39,265,000 share if the underwriters' over-allotment
option is exercised in full) of which WMS will own 33,400,000
shares.
The managing underwriters of the offering, which is expected to
commence in late October, are Oppenheimer & Co., Inc., Hambrecht &
Quist LLC, UBS Securities LLC and Wasserstein Perella Securities,
Inc. Midway intends to use the proceeds of the offering for working
capital and general corporate purposes, to pay a $50 million
dividend note owed to the Company and to repay seasonal working
capital borrowings from the Company.
The registration statement filed with the Securities and
Exchange Commission has not yet become effective, and the shares may
not be sold nor may offers to buy be accepted prior to the time the
registration statement becomes effective. This press release does
not constitute an offer to sell, or the solicitation of an offer to
buy, nor shall there be any sale of the securities in any state in
which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of such
state. A copy of the prospectus may be obtained from Oppenheimer &
Co., Inc., 200 Liberty Street, New York, NY 10281.
WMS Industries Inc. is engaged in the design, manufacture and
sale of coin-operated and home video games, pinball and novelty
games and video lottery terminals and gaming devices.
WMS INDUSTRIES INC.
(Thousands, except per share amounts)
Three months ended June 30, Year ended June 30,
1996 1995 1996 1995
Segment revenues:
Video games $45,248 $48,838 $245,423 $180,479
Pinball and novelty 13,703 29,722 55,679 111,843
Gaming 14,718 2,566 37,523 22,172
Total revenues $73,669 $81,126 $338,625 $314,494
Segment operating
profit (loss):
Video games $(54) $12,448 $40,494 $47,136
Pinball and novelty (7,074) 1,534 (17,093) (2,590)
Gaming (3,353) (4,265) (9,508) (8,036)
Unallocated corporate (443) (896) (3,106) (3,260)
Total operating
profit (loss) $(10,924) $8,821 $10,787 $33,250
Income (loss) from
continuing operations $(6,566) $6,799 $7,477 $23,012
Income (loss) - discontinued
operations (5,177) (648) (2,938) (3,805)
Net income (loss) $(11,743) $6,151 $4,539 $19,207
Per share of common stock:
Continuing operations $(0.27) $0.29 $0.31 $0.96
Discontinued operations (0.22) (0.03) (0.12) (0.16)
Net income (loss) $(0.49) $0.26 0.19 0.80
Shares used in
calculating per share
amounts 24,130 24,108 24,122 24,102
CONTACT: Harold H. Bach, Jr.
Chief Financial Officer
WMS INDUSTRIES INC.
312/961-1111
or
Joseph N. Jaffoni
Jaffoni & Collins Incorporated
212/505-3015
RANCHO CUCAMONGA, Calif. -- Sept. 13, 1996 -- Cadiz
Land Co. Inc. (NASDAQ:CLCI) announced that its acquisition of Sun
World International Inc. has been formally completed.
The acquisition of all of the stock of Sun World represented the
final step required of Cadiz before it assumed management of Sun
World operations.
Following the U.S. Bankruptcy Court's July 12 approval of the
acquisition plan, Cadiz successfully satisfied all plan
requirements, including the completion of documentation and
execution of approximately $175 million in funding, to finalize
Friday's ownership transfer.
Sun World, one of California's leading agricultural concerns,
with approximately $150 million in annual revenues, filed for
Chapter 11 bankruptcy protection in October 1994 after debt-
restructuring negotiations with its existing creditors had failed.
CONTACT: Stoorza, Ziegaus & Metzger, Los Angeles
Christine Lee or Fiona Hutton, 213/891-2822
DENVER, CO -- Sept. 13, 1996 -- Ascent Entertainment Group,
Inc., (Nasdaq: GOAL) announced today that the United States
Bankruptcy Court for the district of Delaware has confirmed the
bankruptcy reorganization plan of Spectravision, Inc. Pursuant to
the plan, Ascent would combine its subsidiary, On Command Video
Corporation, with the assets and certain liabilities of
Spectravision into a new corporation - On Command Corporation. On
Command Corporation will be publicly traded and has made an
application to trade on the Nasdaq stock market. Ascent will
continue to be the majority shareholder of On Command Corporation.
The court held a September 11 confirmation hearing on the plan
and approved it, subject to certain modifications. Those
modifications were incorporated into the confirmation order, which
was entered by the court September 13.
Ascent Entertainment Group's principal business is providing pay-
per-view entertainment and information services. In addition, it is
involved in other entertainment-related businesses including
ownership and operation of the NBA Denver Nuggets and NHL Colorado
Avalanche, and Beacon Communications, a motion picture and
television production company.
CONTACT: Paul E. Jacobson of Ascent Entertainment, 303-626-7060
SAN ANTONIO, TX -- Sept. 13, 1996 -- San Antonio-based
50-OFF Stores, Inc. announced today preliminary results for the 26-
week period ended Aug. 2, 1996. Net sales were $64.1 million, down
26.3 percent from the comparable prior year period's $87.0 million,
and the company's loss before income taxes rose to $7.7 million
(excluding any as yet undetermined charge for future store
liquidations or closings and overhead reductions) from $1.9 million.
The company operated a weighted average of 100.4 stores in the most
recent period as compared to 106.6 in the comparable prior year
period.
50-OFF Stores' operating results in recent years have been
disappointing, reflecting weaknesses in retailing generally and in
apparel retailing specifically: the casualization of apparel has
hurt many apparel retailers; and regional, off-price retailers have
faced increased competition for the "value-conscious" consumers'
purchases. In addition, 50-OFF was especially hard hit by the last
devaluation and continued deterioration of the Mexican peso and the
continuing economic turmoil along the Texas-Mexico border where it
operates 13 50-OFF stores, historically its best performing
locations.
Faced with such deteriorating results and the apparent consumer
rejection of the 50-OFF retailing concept in almost all its markets,
the Board of Directors has supported a change of leadership, the
continued conversion of existing 50-OFF stores to LOT$OFF stores, a
geographic consolidation of the chain and the liquidation or closing
of underperforming stores of stores located outside of a reduced
market area, and appropriate reductions in field and corporate
overhead and staffing. In addition, management has been pursuing an
infusion of capital and an external affiliation with a supplier of
product and credit and additional concessions from lenders and
landlords to secure the resources necessary to implement its
business plan and to effect the changes believed necessary by
management to achieve profitability. Although management believes
it has developed an appropriate plan for the company in its current
environment, no assurance can be given that the company will be
successful in its efforts to secure such necessary concessions and
resources or to improve operations and reverse operating trends. If
such efforts are not successful, management will consider, among
other alternatives, strategic or financial alliances with other
third parties, the merger or sale of all or a part of the company
and the filing of a petition under Chapter 11 of the Bankruptcy
Code.
As previously reported, 50-OFF Stores is in the process of
redirecting its retail activities from off-price retailing to a
closeout retailing concept. Coincident and consistent with this
change is a change in the mix of products, historically a majority
in family apparel, to a majority in non-apparel merchandise,
principally through the addition of new product categories to the
company's historical non-apparel offerings which include domestics,
housewares and giftware, home furnishings, shelf-stable food
products, toys, luggage, footwear, stationery and health and beauty
aids. New categories include sporting goods, automotive, greeting
cards, fine jewelry, books, party goods, seasonal, pet supplies and
hardware, among others. The company will continue to maintain a
healthy showing of basic family apparel products in the new LOT$OFF
stores. The actual merchandise mix will fluctuate by category, by
season and by store based on customer needs and buying trends,
demographics and the availability of products at closeout prices.
This merchandising concept is designed to appeal to value-conscious
shoppers and other "bargain hunters," and management is hopeful its
implementation will lead to higher initial mark- ups, less
promotional pricing, fewer mark-downs, less inventory shrink,
increased store traffic and improved operating results.
The company currently plans to open six LOT$OFF stores in San
Antonio on Sept. 27 at 50-OFF's six existing San Antonio locations.
A seventh San Antonio store, currently operating as The Clothing
Liquidator, will reopen as a 50-OFF store, carrying LOT$OFF
clearance merchandise at 50 percent of the LOT$OFF price. These six
new LOT$OFF stores will bring to 19 the number of LOT$OFF stores
operated by the company, 13 of such stores having opened in Oklahoma
(5) and the Dallas Metroplex (8) July 26 and Aug. 1, 1996,
respectively. Early operating results for the 13 existing LOT$OFF
stores have been encouraging, far surpassing the results of the 85
remaining 50-OFF stores.
CONTACT: 50-OFF Stores, Inc.,
Charles Fuhrmann, 210/804-4904
NEW YORK -- Sept. 13, 1996 -- CHIC by H.I.S. Inc.
(NYSE: JNS) today reported that net income for the third quarter
ended Aug. 3, 1996 was $2,281,000 or $0.23 per share.
Net income for the third quarter last year was $2,038,000 or
$0.21 per share.
Financial table quarter ended Aug. 3:
1996 1995
Net sales 90,185,000 117,023,000
Gross profit 17,544,000 20,586,000
Add:
Licensing income 1,495,000 1,746,000
Less:
Sell, gen. & admin. expenses 13,770,000 17,331,000
Operating income 5,269,000 5,001,000
Less:
Interest expense 1,692,000 1,712,000
Pretax income 3,577,000 3,289,000
Less:
Taxes 1,296,000 1,251,000
Net income 2,281,000 2,038,000
Outstanding Shares 9,753,868 9,753,868
E.P.S. - Net income $0.23 $0.21
Financial table for the 39 weeks ended Aug. 3:
1996 1995
Net sales 245,358,000 300,735,000
Gross profit 52,247,000 58,577,000
Add:
Licensing income 4,393,000 4,270,000
Less:
Sell, gen. & admin. expenses 43,564,000 48,900,000
Restructuring Charge 15,000,000 0
Operating income(Loss) (1,924,000) 13,947,000
Less:
Interest expense 5,173,000 4,299,000
Pretax income(Loss) (7,097,000) 9,648,000
Less:
Taxes 3,719,000 3,811,000
Net income(Loss) (10,816,000) 5,837,000
Outstanding Shares 9,753,868 9,753,868
E.P.S. - Before restructuring charge $0.43 $0.60
E.P.S. - Net income(Loss) ($1.11) $0.60