Tom Brown reports third quarter results
MIDLAND, Texas--Nov. 11, 1996--Tom Brown Inc. (NASDAQ:TMBR) today reported net income of $122,000,
or $.01 per share, on revenues of $14,773,000 for the third quarter of 1996 compared to net income of
$1,500,000, or $.09 per share, on revenues of $12,082,000 for the third quarter of 1995.
Included in the third quarter of 1995 was a gain of approximately $4.3 million on the sale of the company's
Arkoma Basin properties. The company's cash flow was $5.2 million for the three months ended Sept. 30, 1996
as compared to $2.0 million for the comparable period in 1995.
The company's natural gas production was 3,837 million cubic feet ("MMcf") for the three months ended Sept.
30, 1996 as compared to 2,540 MMcf for the comparable period in 1995, which represents a 51 percent
increase. Oil production for the three months ended Sept. 30, 1996 increased 17 percent to 117 thousand barrels
("MBbls") as compared to 100 MBbls for the same period in 1995.
The company benefited from higher oil and gas prices in the third quarter, but experienced slightly lower gas
production due to compressor maintenance in its Muddy Ridge and Pavillion fields. Three recently completed
wells in the Val Verde Basin began production in September and October at combined rates in excess of 20
MMcfd (8 MMcfd net to the company). Three additional wells are currently drilling and three more are
scheduled for drilling prior to year-end. The company anticipates record production and revenues in the fourth
quarter of this year due primarily to the new production in the Val Verde Basin and higher fourth quarter gas
prices.
A 76 square mile 3-D seismic survey has commenced on the company's east Texas acreage in the Cotton Valley
Pinnacle Reef Trend. The drilling of the company's first well is anticipated in the summer of 1997. The company
plans to retain a 60 percent working interest.
The company's acreage position in the Wind River Basin reached 1,072,000 gross (631,000 net) acres with the
signing of the company's license agreement with the Eastern Shoshone and Northern Arapaho Tribes. On Oct. 28,
1996, the company and Louisiana Land and Exploration Co. announced the formation of a joint exploration
alliance in connection with this agreement.
On Nov. 4, 1996, the company and KN Energy Inc. closed on the acquisition of the Williams Field Services'
gathering and processing assets in western Colorado and eastern Utah. This acquisition gives Wildhorse a
significant upstream position in an area of the Rocky Mountains that has great potential for developing additional
natural gas reserves and deliverability.
A confirmation hearing on Presidio Oil Co.'s Chapter 11 bankruptcy proceeding is scheduled for Nov. 13, 1996.
This bankruptcy follows a definitive agreement signed Aug. 6, 1996 between the company and Presidio whereby
the company would acquire Presidio through a Chapter 11 bankruptcy proceeding. The company's obligation to
consummate the transaction is conditioned upon, among other things, the receipt of a final bankruptcy court
confirmation order approving the transaction by Nov. 15, 1996.
Tom Brown Inc. is an independent energy company engaged in the domestic exploration for, and the acquisition,
development, production and sale of, natural gas and crude oil. Its stock is traded in the over-the-counter market
and appears on the NASD National Market system under the symbol "TMBR".
Tom Brown Inc. and Subsidiaries
Consolidated Statements of Operations (Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
1996 1995 1996 1995
Revenues:
Gas and oil
sales $ 8,040,000 $ 4,920,000 $24,797,000 $15,041,000
Marketing,
gathering and
processing 6,340,000 2,792,000 16,629,000 10,772,000
Gain on sales
of properties 239,000 4,234,000 267,000 4,322,000
Interest income
and other 154,000 136,000 356,000 537,000
Total revenues 14,773,000 12,082,000 42,049,000 30,672,000
Costs and expenses:
Gas and oil
production 1,610,000 1,256,000 4,697,000 3,536,000
Taxes on gas and
oil production 670,000 467,000 1,844,000 1,515,000
Cost of gas sold 5,693,000 2,224,000 13,179,000 9,082,000
Exploration costs 827,000 1,062,000 1,753,000 3,010,000
Impairments of
leasehold costs 49,000 140,000 116,000 484,000
General and
administrative 1,409,000 968,000 4,166,000 2,994,000
Depreciation,
depletion and
amortization 3,672,000 2,669,000 11,369,000 7,375,000
Writedown of
properties - - - 8,368,000
Interest expense 1,000 951,000 18,000 978,000
Total costs and
expenses 13,931,000 9,737,000 37,142,000 37,342,000
Income (loss)
before income
taxes 842,000 2,345,000 4,907,000 (6,670,000)
Income tax provision:
Recognition of
deferred tax
asset - - - 13,967,000
Income tax
expense 282,000 845,000 1,668,000 994,000
Net income $ 560,000 $ 1,500,000 $ 3,239,000 $ 6,303,000
Preferred stock
dividend $ 438,000 $ - $ 1,235,000 $ -
Net income available
to common
shareholders $ 122,000 $ 1,500,000 $ 2,004,000 $ 6,303,000
Weighted average
number of
common shares
outstanding 21,133,494 16,153,277 21,123,007 16,131,345
Net income per
common share $ .01 $ .09 $ .09 $ .39
Natural gas
production (MMcf) 3,837 2,540 12,058 7,870
Crude oil
production (MBbls) 117 100 375 300
Average natural
gas sales price
($/Mcf) $ 1.45 $ 1.31 $ 1.45 $ 1.27
Average crude
oil sales
price ($/Bbl) $ 21.09 $ 16.05 $ 19.52 $ 16.80
CONTACT: Tom Brown Inc., Midland Donald L. Evans, 915/682-9715
IVAX Announces 1996 Third Quarter Results; Records $104 Million in Asset Write-Downs and $14 Million
Restructuring Charge
MIAMI, FL - Nov. 11, 1996 - IVAX Corporation (AMEX: IVX) today announced a net loss for the 1996 third
quarter of $178.7 million, or $1.47 per common share, compared to net income of $27.6 million, or $.23 per
common share, for the third quarter of 1995. These results include a $104.3 million pre-tax charge relating to the
write-down of goodwill and certain fixed assets of its U.S. generic drug distribution business and certain product
lines of its specialty chemicals business, and $14 million in pre-tax charges associated with a restructuring
program commenced and announced in commenced and the 1996 third quarter.
Financial Results
Net revenues for the 1996 third quarter were $222.7 million, compared to $310.2 million for the 1995 third
quarter. Gross profit for the third quarter of 1996 was $31.0 million, compared to $126.7 million for the third
quarter of 1995. Loss before income taxes, minority interest and extraordinary items in the 1996 third quarter was
$218.5 million, compared to income before income taxes, minority interest and extraordinary items of $29.9
million for the 1995 third quarter.
Primary net loss per share for the first nine months of 1996 was $1.31, compared to primary net earnings per
share of $.67 for the same period of 1995. Fully diluted net loss per share for the first nine months of 1996 was
$1.31, compared to fully diluted net earnings per share of $.66 for the first nine months of 1995. Net loss for the
first nine months of 1996 was $158.8 million, compared to net income of $79.0 million for the same period in
1995. Net revenues for the first nine months of 1996 were $830.6 million, compared to $898.0 million reported
for the first nine months of 1995. Gross profit for the first nine months was $258.3 million, compared to $376.3
million for the same period in 1995. Loss before income taxes, minority interest and extraordinary items was
$205.9 million in the first nine months of 1996, compared to income before taxes, minority interest and
extraordinary items of $100.2 million for the same period in 1995.
Industry Issues
IVAX' actual loss from operations for the third quarter significantly exceeded the loss for the quarter estimated by
IVAX' in its September 30, 1996 press release. Several factors relating to IVAX' U.S. generic drug business
adversely affected its 1996 third quarter results. These factors were generally comparable to factors experienced
in the 1996 second quarter. First, customer inventory levels continued to be high, so customer re-orders were
depressed. Second, in order to reduce customer inventory levels and their impact on IVAX results, IVAX cut
back on promotional activities, thereby further reducing sales. Third, prices continued to decline for generic drug
products. Fourth, price reductions at a time of elevated customer inventories increased shelf stock adjustments
credited to customers to levels well above more typical quarters. Fifth, reserves for returns and inventory
write-offs were well above typical quarters. The aggregate adverse effect of these factors ultimately was
significantly greater than IVAX anticipated when it offered its September 30 earnings estimate.
In addition, as announced on September 30, [FoxMeyer Corporation, et al.,] a wholesaler customer who owed
IVAX approximately $16 million filed a Chapter 11 bankruptcy petition during the 1996 third quarter.
Accordingly, in the third quarter, IVAX supplemented its existing second quarter reserve of approximately $6
million relating to this account with additional reserves of approximately $7 million.
Charges
IVAX' third quarter results include a $104.3 million pre-tax charge relating to the write-down of goodwill and
certain fixed assets of its U.S. generic drug distribution business and certain product lines of its specialty
chemicals business. Due to the recent financial performance of those businesses, it was determined that the value
of certain assets was not recoverable and, accordingly, IVAX wrote off these amounts in the 1996 third quarter.
Of the $104.3 million charge, $55.9 million relates to IVAX' U.S. generic drug distribution business (Goldline),
and $48.5 million relates to certain product lines of its specialty chemicals businesses (IVAX Industries and
subsidiaries). The write-downs will reduce depreciation and amortization expenses by approximately $1.1
million in the 1996 fourth quarter and by approximately $3.7 million annually, and will increase annual net
income by approximately $4.3 million.
As announced in IVAX' September 30, 1996 news release, IVAX incurred a pre-tax charge of $14.0 million in
the 1996 third quarter relating to a corporate restructuring initiated in the third quarter. The restructuring involves
facility shut downs, consolidations and other measures designed to ultimately reduce costs on an annualized basis
by approximately $20 million, and is proceeding as scheduled.
Amendment to Credit Facility IVAX is a party to a revolving credit facility with a syndicate of 19 participating
banks. As a result of IVAX' recent results, IVAX is presently out of compliance with the provisions of this
agreement. Accordingly, the $305.0 million outstanding under the facility as of September 30, 1996, ordinarily
classified as long term debt on IVAX' balance sheet, has been classified as short term debt. IVAX has been
working closely with the bank syndicate, and believes of procuring the requisite majority vote of syndicate
participants shortly. Notwithstanding this development, IVAX believes it maintains that an amendment to the
agreement will be executed shortly. Once amended, all amounts outstanding under the facility will be reclassified
as long-term debt.
No Declaration of Dividends
IVAX' Board of Directors omitted IVAX' semi-annual dividend for the second half of 1996. On June 3, 1996,
IVAX paid a semi-annual dividend of $.05 per share to shareholders of record on May 10, 1996.
Concurrent Announcements
In a separate news release this morning, IVAX announced that it had executed a definitive merger agreement with
Bergen Brunswig Corporation, one of the largest pharmaceutical and hospital products distributors in the nation,
forming the nation's only fully integrated manufacturer and distributor of products to the pharmaceutical and acute
care communities.
IVAX also announced this morning that it had signed a Memorandum of Understanding to amend and expand its
existing license agreement with Glaxo Wellcome for IVAX' patented breath activated inhaler known as
Easi-Breathe(TM). The license will be exclusive worldwide to Glaxo Wellcome, except as provided for in
existing agreements with other companies.
General
IVAX Corporation, headquartered in Miami, Florida, is a holding company with subsidiaries engaged primarily
in the research, development, manufacture and marketing of health care products, including generic and branded
pharmaceuticals, intravenous solutions and related products, and in vitro diagnostics.
IVAX Corporation
Results of Operations
Period Ended September 30
(in thousands, except per share data)
Three Months Nine Months
1996 1995 1996
1995
Net revenues $222,720 $310,212 $830,648
$897,976
Cost of sales 191,713 183,469 572,361
521,680
Gross Profit 31,007 126,743 258,287
376,296
Selling, general and
administrative 102,807 75,577 269,163
212,887
Research and development 18,894 15,836 53,501
47,500
Amortization 2,774 2,394 8,134
7,336
Restructuring cost and
asset write-downs 118,315 -- 118,315
--
Merger expense -- -- 184
--
Total operating expenses 242,790 93,807 449,297
267,723
Income (loss) from operations(211,783) 32,936 (191,010)
108,573
Total other expense, net (6,694) (3,025) (14,933)
(8,390)
Income (loss) before income
taxes, minority interest and
extraordinary items (218,477) 29,911 (205,943)
100,183
Provision (benefit) for
income taxes (40,553) 1,291 (53,886)
17,944
Income (loss) before minority
interest and extraordinary
items (177,924) 28,620 (152,057)
82,239
Minority interest (745) (1,038) (4,647)
(3,229)
Income (loss) before
extraordinary items (178,669) 27,582 (156,704)
79,010
Extraordinary items - Gains
(losses) on extinguishment
of debt, net of tax -- -- (2,073)
34
NET INCOME (LOSS) $(178,669) $27,582 $(158,777)
$79,044
EARNINGS (LOSS) PER SHARE:
Primary:
Earnings (loss) before
extraordinary items $(1.47) $0.23 $(1.29)
$0.67
Extraordinary items -- -- (0.02)
--
Net earnings (loss) $(1.47) $0.23 $(1.31)
$0.67
Fully Diluted:
Earnings (loss) before
extraordinary items $(1.47) $0.23 $(1.29)
$0.66
Extraordinary items -- -- (0.02)
--
Net earnings (loss) $(1.47) $0.23 $(1.31)
$0.66
AVERAGE SHARES OUTSTANDING:
Primary 121,467 119,312 120,774
118,842
Fully Diluted 121,467 120,692 120,774
120,578
Condensed Balance Sheets
(In thousands)
September 30,
December 31,
1996 1995
Assets
Current assets $708,199
$676,818
Property, plant and equipment, net 406,740
385,419
Other assets 242,228
273,073
Total assets $1,357,167
$1,335,310
Liabilities and Shareholders' Equity
Current portion of long-term debt $307,139
$3,521
Other current liabilities 232,172
202,392
Long-term debt 110,904
298,857
Other long-term liabilities 20,921
26,314
Minority interest 14,089
15,054
Shareholders' equity 671,942
789,172
Total liabilities and shareholders' equity $1,357,167
$1,335,310
Business Segment Financial Highlights
Period Ended September 30,
(In thousands)
Three Months Nine Months
1996 1995 1996
1995
NET REVENUES:
Pharmaceuticals $98,351 $191,547 $458,478
$532,043
Intravenous products 81,554 82,713 249,597
253,552
Other operations 43,376 36,382 124,039
113,253
Intersegment
eliminations (561) (430) (1,466)
(872)
Total $222,720 $310,212 $830,648
$897,976
GROSS PROFIT:
Pharmaceuticals $(18,186) $79,934 $114,803
$227,180
Intravenous products 28,414 30,581 84,811
99,570
Other operations 20,779 16,228 58,673
49,546
Total $31,007 $126,743 $258,287
$376,296
INCOME (LOSS) FROM OPERATIONS:
Pharmaceuticals $(164,174) $29,909 $(143,195)
$90,760
Intravenous products 4,495 5,250 12,553
24,723
Other operations (46,486) 852 (43,878)
3,151
Corporate expenses
and other (5,618) (3,075) (16,490)
(10,061)
Total $(211,783) $32,936 $(191,010)
$108,573
Statements made in this press release, including those relating to the amendment of the credit agreement and the
annualized savings expected from the restructuring, are forward looking and are made pursuant to the safe harbor
provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties which
may cause results to differ materially from those set forth in these statements. Among other things, the credit
agreement is subject to the discretion of the bank syndicate and the annualized cost savings are subject to the
successful and timely implementation of the restructuring. In addition to the factors set forth elsewhere in this
release, the economic, competitive, governmental, technological and other factors identified in IVAX' filings with
the Securities and Exchange Commission, could affect the forward looking statements contained in this press
release.
SOURCE IVAX Corporation/CONTACTS: Michael W. Fipps, Senior Vice President-Finance and Chief
Financial Officer, 305-575-6123, or Joseph C. Jones, Vice President-Investor Relations, 305-575-6042/
Physicians Clinical Laboratory Reaches Arrangement with Secured Creditors for Restructuring of Debt; Receives
Commitment for $9.8 Million in Financing
SACRAMENTO, Calif., Nov. 11, 1996 - The board of Directors of Physicians Clinical Laboratory, Inc. ("PCL")
(Nasdaq: PCLI) announced today that it has filed a chapter 11 case in Los Angeles to facilitate a restructuring on
its debt and the acquisition of the Company by an investor group. The investor group intends to make an
immediate $9,800,000 cash infusion to provide adequate working capital and to assure continuity of operations
and quality of service.
An additional $5,000,000 of capital will be injected into the Company upon completion of the restructuring,
which is anticipated to take five to six months.
Jack Burgis, Chairman of the Board, said: "This restructuring is an extremely positive development for the
Company. It will provide the Company with adequate liquidity and ensure the long-term viability of PCL. This
restructuring will enable us to satisfy our customers and satisfy our creditors in a forward-going basis."
Under the proposed terms of the restructuring, the interests of the Company's existing stockholders and the
interests of the holders of the Company's debentures would be significantly and substantially diluted and possibly
eliminated.
Physicians Clinical Laboratory is a full service clinical laboratory and operates in the Sacramento, San
Francisco Bay Area, Central Valley, and Los Angeles markets. Based in Sacramento, the Company maintains one
full service laboratory, two day laboratories, seventeen Stat facilities, and 225 patient service centers, and
employs approximately 1,200 people throughout California.
SOURCE Physicians Clinical Laboratory, Inc./CONTACT: J. Marvin Feigenbaum or Richard Brooks of
Physicians Clinical Laboratory, Inc., 916-648-3500/
Converse announces third quarter and nine month results
NORTH READING, Mass.--Nov. 11, 1996--Converse Inc. (NYSE:CVE) today announced financial results for
the third quarter and nine month period ended September 28, 1996.
Revenues for the third quarter were $113.3 million compared to $110.1 million in the third quarter of 1995.
Income from operations was $3.1 million versus a loss from operations of $2.2 million for the same period last
year. The net loss in the third quarter narrowed to $3.0 million, or $0.18 per share, compared to a net loss of $6.6
million, or $0.39 per share, for the third quarter of 1995.
U.S. sales in the third quarter increased 9.8% and international sales decreased 4.5%, in each case compared to
the third quarter 1995. The Company posted substantial increases in its children's and basketball categories of
28.4% and 14.3%, respectively, which were partially offset by declines in athleisure and cross-training sales.
For the nine month period, revenues were $279.8 million versus $330.6 million for the same period last year.
Income from operations was $5.6 million, including a restructuring credit of $2.2 million in the second quarter of
1996, compared to income from operations of $5.5 million for the nine months ended September 30, 1995. The
net loss for the nine month period improved to $10.0 million, or $0.60 per share, versus a net loss of $30.4
million, or $1.82 per share, for the same period last year.
For the nine month period, selling, general and administrative expenses were $88.6 million, a net reduction of
$22.0 million from the $110.6 million for the same period in 1995. Royalty income for the nine months rose
43.4% to $17.5 million from $12.2 million last year.
Fueled by the success of the All Star 2000, incoming orders for the third quarter increased by 32.0% over last
year. As a result, Converse's backlog as of September 28, 1996 increased to $173 million, a 16% increase versus
a year ago. The increase in the backlog is attributable to futures orders for the first quarter of 1997. The backlog
for fourth quarter shipments is down slightly as compared to September 30, 1995.
Commenting on the results, Glenn Rupp, Chairman and Chief Executive Officer, stated, "Although we posted only
a modest operating profit in the third quarter, our results mark the second consecutive quarter of operating
earnings improvement versus the year-ago period. We are continuing to realize the benefits of our restructuring
plan, which led to further reduction in SG&A for the period, resulting in higher operating earnings on a slight
increase in sales."
"We have seen improvement in our operating earnings for the second and third quarters of 1996 and we expect
continued improvement in our operating earnings for the fourth quarter of 1996 as compared to the fourth quarter
1995."
Mr. Rupp continued, "The overwhelming response to our All Star 2000 product has reinvigorated the Company
and has proven that the underlying strength of the Converse brand, combined with the right product and the right
marketing program, can be successful. Over the past few months, we have seen increasing strength in our order
activity and the reception to our Spring '97 lines has been very enthusiastic. In particular, four of our new
basketball shoes -- The Dr. J. 2000, The Springfield, The Tourney, and the Canvas All Star 2000 -- have
generated an excellent response from our retail customers."
"Looking ahead, we are very excited about the recent addition of Jim Solomon to head our worldwide marketing
effort. We believe that Converse is regaining a solid market position and Jim's expertise will play an integral
role in our ability to generate additional momentum for our brand. With the successful implementation of the
restructuring plan and the recent order momentum, the Company is well-positioned to have a strong year in
1997," Mr. Rupp concluded.
Converse Inc., the largest U.S. manufacturer of athletic shoes, is a leading designer, manufacturer and marketer of
high quality athletic and leisure footwear and is a licensor of sports apparel and accessories that are distributed
worldwide through over 9,000 athletic specialty, sporting goods, department and shoe stores.
Any statements set forth above which are not historical facts are forward looking statements that involve certain
risks and uncertainties that could cause actual results to differ materially from those in the forward looking
statements. Potential risks and uncertainties include such factors as the financial strength and competitive pricing
environment of the athletic footwear and apparel industries, product demand, market acceptance of this
Company's products and, the success of planned advertising, marketing and promotional campaigns.
CONVERSE INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
Sept. 28, Sept. 30, Sept. 28, Sept. 30,
1996 1995 1996 1995
Net Sales $113,318 $110,121 $279,776
$330,641
Cost of sales 83,388 80,783 205,342
225,820
Gross profit 29,930 29,338 74,434
104,821
Selling, general and
administrative expenses 33,153 36,026 88,588
110,586
Royalty income 6,301 4,489 17,546
12,240
Restructuring expense (credit) 0 0 (2,209)
1,000
Earnings (loss) from
operations 3,078 (2,199) 5,601
5,475
Loss on investment in
unconsolidated subsidiary 0 0 515
41,599
Interest expense 4,827 3,525 12,921
9,518
Other (income) expense, net 229 962 1,726
(555)
Earnings (loss) before
income tax (1,978) (6,686) (9,561)
(45,087)
Income tax expense (benefit) 1,033 (103) 452
(14,660)
Net earnings (loss) $ (3,011) $ (6,583) $(10,013) $
(30,427)
Net earnings (loss)
per share $ (0.18) $ (0.39) $ (0.60) $
(1.82)
Weighted average number
of common shares 16,707 16,692 16,697
16,692
-0-
CONVERSE INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share amounts)
(Unaudited)
Sept. 28, Dec. 30,
1996 1995
Assets
Current assets:
Cash and cash equivalents $ 4,051 $
2,738
Restricted cash 903
443
Receivables, less allowances of
$2,237 and $1,720 respectively 81,274
61,688
Inventories 82,899
81,903
Refundable income taxes
-- 11,377
Prepaid expenses and other current assets 25,245
21,059
Total current assets 194,372
179,208
Asset held for sale
-- 3,066
Net property, plant and equipment 17,095
15,521
Other assets 23,634
26,712
$235,101 $224,507
Liabilities and Stockholders'
Equity (Deficiency)
Current liabilities:
Short-term debt 20,173
13,906
Current maturities of long-term debt 6,392
6,324
Accounts payable 42,674
34,208
Accrued expenses 28,328
33,295
Income taxes payable 2,771
1,795
Total current liabilities 100,338
89,528
Long-term debt, less current maturities 123,708
112,824
Current assets in excess of
reorganization value 32,896
34,454
Deferred postretirement benefits
other than pensions 10,269
10,386
Stockholders' equity (deficiency):
Common stock, $1.00 stated value,
50,000,000 shares authorized,
16,772,156 shares issued and
outstanding 16,772 16,692
Preferred stock, no par value,
authorized 10,000,000 shares,
none issued and outstanding
-- --
Additional paid in capital 3,755
3,528
Retained earnings (deficit) (51,843)
(41,830)
Foreign currency translation adjustment (790)
(1,075)
Total stockholders' equity (deficiency) (32,107) (22,685)
$235,101 $224,507
CONTACT: Converse Inc., North Reading
Investor Contact: Donald J. Camacho
Chief Financial Officer 508/664-1100
Media Contact: Ellen Pulda 508/664-1100 or Morgen-Walke Associates, New York
Investor Contact: Christine DiSanto/Caroline Babbitt 212/850-5600
Media Contact: Stacy Berns/Michael McMullan 212/850-5600
Gibraltar Packaging Group Announces Results for First Quarter of Fiscal 1997 and Completion of Bank
Refinancing
WESTPORT, Conn., Nov. 11, 1996 - Gibraltar Packaging Group, Inc. (Nasdaq: PACK), today announced results
for its first fiscal quarter ending September 30, 1996.
Gibraltar reported a net loss for the Company's first quarter of fiscal 1997 of $173,000 or $0.03 loss per share
after providing for an extraordinary after-tax loss of $107,000 or $0.02 per share. The extraordinary loss reflects
the write-off of the unamortized cost of a previous financing. Before this extraordinary item, the loss was $66,000
or $0.01 loss per share. This compares with net income in the prior year's first quarter of $471,000 or $0.09 per
share.
"As the Company expected and as announced in the previous press release, reduced demand continued into the
first quarter of fiscal 1997. However, we believe that the marketing and sales initiatives taken earlier in 1996 are
starting to produce results. In this industry, it takes some months to turn prospects into shipments and with the
usual seasonal downturn, we do not expect sales to increase significantly until the second half of the fiscal year,"
said Walter Rose, President and Chief Executive Officer.
The Company completed its refinancing in late September 1996. The new facility consists of a seven year $25
million term loan and a five year $10 million revolving credit facility. The terms include initial interest rates that
are more than 3 percent lower than the Company had been recently paying. Mr. Rose added, "We are very
pleased to have Harris Trust and Savings Bank as our new lender. In addition to providing lower interest rates,
they are providing us with the flexibility that will allow the Company to grow to its full potential."
This press release includes forward looking statements. Actual results might differ materially from those
projected in the forward looking statements. Reference is made to the Company's filings with the Securities and
Exchange Commission, including the Company's annual report for fiscal 1996 on Form 10-K, for a description of
factors that could cause actual results to differ materially from those in the forward looking statements.
Gibraltar Packaging Group, Inc. headquartered in Westport, Connecticut is a paperboard packing manufacturer
specializing in folding cartons, specialty laminated containers, tubular spiral-wound paper packaging, flexible
polyethylene film packaging, contract packaging and filling and pressure- sensitive labels.