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InterNet Bankruptcy Library - News for November 20, 1996






Bankruptcy News For November 20, 1996



  1. Anacomp Announces Improved Fourth Quarter and Year-End Financial Results

  2. All For A Dollar announces third quarter and nine months results

  3. Best Products Receives Bankruptcy Court Approval to Sell all of its Assets; Going Out Of Business Sale
    Starts Immediately

  4. Emerson Radio reports results for second quarter and six months

  5. CompuServe Reports Expected Q2 Loss And Other Charges




Anacomp Announces Improved Fourth Quarter and Year-End Financial Results


ATLANTA, GA - Nov. 20, 1996 - Anacomp, Inc. (Nasdaq: ANCO) today announced improved financial results
and stronger cash flows for the year and quarter ended September 30, 1996. In addition, the company said it has
reached agreement on the refinancing of its senior secured debt, which when completed will result in reduced
interest charges and improved liquidity.


Because of Anacomp's successful financial restructuring and emergence from Chapter 11 during Fiscal 1996, the
company reported its year-end results for the eight-month period ended May 31, 1996 (pre-Chapter 11
emergence) and the four-month period ended September 30, 1996 (post-Chapter 11 emergence.) To make
comparisons of the results meaningful to prior reporting periods, the discussion of the financial information
below is presented on the basis of conventional reporting periods.


For the year ended September 30, 1996 (Anacomp's Fiscal 1996), the company reported net income of $142.4
million on revenues of $486.1 million, compared to a loss of $240.5 million on revenues of $591.2 million in the
prior fiscal year. (Because Anacomp was recapitalized upon emergence from Chapter 11 with the issuance of
new common stock, earnings per share are not comparable.) Much of the year-to-year improvement was due to
the disposition of unprofitable and/or non-strategic products and services as well as substantial reductions in
expenses. In addition, the results in Fiscal 1996 include a gain of $145.3 million relating to the financial
restructuring and debt forgiveness, and the Fiscal 1995 results include $175.6 million of special, restructuring,
and refinancing charges. The decline in revenues was primarily due to downsizing as well as market shrinkage in
Anacomp's core micrographics and magnetics businesses. EBITDA (earnings before interest, taxes,
reorganization items, extraordinary credits, depreciation, and amortization) in Fiscal 1996 was $84.2 million, or
17% of revenues, compared to $77.9 million, or 13% of revenues, in the previous year.


"It was a solid year," noted P. Lang Lowrey, Anacomp's chairman, president, and chief executive officer. "We
successfully completed a financial restructuring that gave us a greatly improved capital structure, and despite the
disruptions of Chapter 11, we maintained strong relationships with our customers. And by discontinuing or
downsizing less profitable parts of our business, and aggressively cutting expenses to match our size, we
substantially improved operating results and built a strong foundation for moving the company forward."


"Plus, even though we were in Chapter 11 for much of Fiscal 1996, we were able to start making investments in
new offerings such as CD services," continued Lowrey. "Although still a small part of Anacomp's revenues, we
tripled the number of CD pages processed in 1996. We also sold or leased 118 of our advanced XFP 2000 COM
systems, indicating continued interest among many of our clients in making capital investments in micrographics."


As a result of Anacomp's financial restructuring and Fresh Start Reporting requirements adopted by the company,
Anacomp recorded a "reorganization value" asset totaling $267.3 million, which is being amortized over
three-and-a-half years. This non-cash charge likely will result in net losses during that period. Consequently,
Anacomp has begun reporting EBITDA post-Chapter 11 in order to provide a comparable measure of the
company's performance between periods. For the three months ended September 30, 1996 (Anacomp's fourth
quarter, all of which occurred post-Chapter 11), the company had EBITDA of $18.0 million on revenues of
$114.8 million, compared to EBITDA of $10.0 million on revenues of $139.0 million in the same quarter of the
previous year. Because of the $19.2 non-cash reorganization amortization for the period, the company reported a
net loss of $17.6 million in the fourth quarter. That compares to a loss of $92.7 million in the same quarter of the
prior year.


In another development, Anacomp announced that is has reached agreement with Lehman Brothers for the
refinancing of Anacomp's senior secured debt. Lehman has agreed to underwrite a new $115 million debt facility
to replace Anacomp's existing $97.9 million senior secured notes. The new debt facility will consist of $90
million in term loans and a revolver of up to $25 million. The refinancing requires the consent of Anacomp's
senior subordinated note holders, and consent solicitation materials will be mailed to note holders of record as of
Monday, November 25, 1996. Anacomp expects the refinancing to be completed in late January.


"The new debt facility will provide Anacomp with several advantages, along with covenants that give the
company the flexibility it needs," commented Donald L. Viles, Anacomp's chief financial officer. "We'll have a
significantly lower interest rate, which will save the company approximately $3 million in interest payments in
the first 12 months alone. In addition, the new revolving credit facility will provide us greater latitude in
managing our cash. Most important, the refinancing - along with our recently completed $25 million rights
offering - will give us the resources needed to execute our acquisition strategies."


Anacomp believes there is an opportunity for growth by acquiring businesses and technologies that build upon its
core competencies and client relationships. Acquisitions will be made in three areas: to support the company's
core businesses, primarily micrographics-related services; to introduce new services that complement its current
offerings and customer base; and to bring into Anacomp new products and services that provide for the
diversification and growth of the company's business within the dynamically changing information management
industry.


Serving customers throughout the world, Anacomp provides products and services that manage corporate
information throughout its life cycle.


                           CONSOLIDATED BALANCE SHEETS
                          Anacomp, Inc. and Subsidiaries
        

                                                            Reorganized
        Predecessor
        

                                                          Company       Company
        (Dollars in thousands, except
           per share amounts) Year ended September 30,      1996          1995
        

        ASSETS
        Current assets:
           Cash and cash equivalents                      $  38,198    $  19,415
           Restricted cash                                    9,597         ---
           Accounts and notes receivable, less
             allowances for doubtful accounts of
             $6,459 and $7,367, respectively                 58,806       90,091
           Current portion of long-term receivables           4,690        6,386
           Inventories                                       32,516       53,995
           Prepaid expenses and other                         4,383        5,306
        Total current assets                                148,190      175,193
        Property and equipment, at cost less
          accumulated depreciation and amortization          26,442       44,983
        Long-term receivables, net of current portion        10,632       12,322
        Excess of purchase price over net assets of
          businesses acquired and other intangibles, net      2,285      160,315
        Reorganization value in excess of identifiable
        

          assets                                            240,344        ----
        Other assets                                          7,528       28,216
                                                         $  435,421   $  421,029
        LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
        Current liabilities:
           Current portion of long-term debt              $  31,848   $  389,900
           Accounts payable                                  48,090       57,368
           Accrued compensation, benefits and withholdings   13,728       20,891
           Accrued income taxes                              11,930        9,365
           Accrued interest                                  10,586       40,746
           Other accrued liabilities                         40,898       60,587
        Total current liabilities                           157,080      578,857
        Long-term debt, net of current portion              217,044        ----
        Other noncurrent liabilities                          2,728        5,841
        Total noncurrent liabilities                        219,772        5,841
        

        Redeemable preferred stock, $.01 par value, issued
          and outstanding 500,000 shares
          (aggregate preference value of $25,000)              ---        24,574
        

        Stockholders' equity (deficit):
           Preferred stock, 1,000,000 shares authorized,
             none issued                                       ---           ---
           Common stock, $.01 par value; 20,000,000 and
             100,000,000 shares authorized respectively;
             10,099,050 and 46,187,625 issued, respectively     101          462
           Capital in excess of par value                    80,318      182,725
           Cumulative translation adjustment                    159        1,329
               Accumulated deficit                              (22,009)
        (372,759)
        

            Total stockholders' equity (deficit)                 58,569
        (188,243)
        

                                                         $  435,421   $  421,029
        

                   CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
                            Anacomp, Inc. and Subsidiaries
        

                                                            Reorganized
        Predecessor
        

                                                          Company       Company
                                                           Three Months
        Three Months
        

                                                           Ended        Ended
                                                          Sept. 30,    Sept. 30,
        (Dollars in thousands, except
           per share amounts)                                1996        1995
        REVENUES:
           Services provided                               $ 44,704   $ 53,919
           Equipment and supply sales                        70,052     85,036
                                                            114,756    138,955
        OPERATING COSTS AND EXPENSES:
           Costs of services provided                        24,101     35,630
           Costs of equipment and supplies sold              52,963     72,917
           Selling, general and administrative expenses      23,986     30,962
           Amortization of reorganization asset              19,247        ---
           Special charges                                     ---       6,889
           Restructuring charges                               ---      32,695
                                                            120,297    179,093
        Loss before interest, other income, reorganization
          items, income taxes, extraordinary credit and
          cumulative effect of accounting change             (5,541)   (40,138)
        

        Interest income                                         940        446
        Interest expense and fee amortization                (9,949)   (18,628)
        Financial restructuring costs                          ---      (1,541)
        Other income (expense)                                   13        (53)
                                                             (8,996)   (19,776)
        Loss before income taxes, extraordinary credit,
        and cumulative effect of accounting change          (14,537)   (59,914)
        Provision for income taxes                            3,100     32,200
        Net loss                                            (17,637)   (92,114)
        Preferred stock dividends and discount accretion       ---         539
        Net loss available to common stockholders          $(17,637)  $(92,653)
        

        LOSS PER COMMON AND COMMON  EQUIVALENT SHARE:
          Net loss available to common                      $ (1.76)       ---
        

                              CONSOLIDATED STATEMENTS OF OPERATIONS
                                   Anacomp, Inc. and Subsidiaries
        

                                              Reorganized   Predecessor Company
                                                    Company
        Twelve
        

                                                  Four Months   Eight Months
        Months
        

                                                Ended         Ended        Ended
                                                  Sept. 30,      May 31,
        Sept. 30,
        

                                                    1996          1996
        1995   1994
        

        (Dollars in thousands, except
           per share amounts)
        REVENUES:
               Services provided                $ 59,055   $130,202
        $219,881 $223,511
        

               Equipment and supply sales         92,487    204,396
        371,308  369,088
        

                                                 151,542    334,598
        591,189  592,599
        

        OPERATING COSTS AND EXPENSES:
               Costs of services provided         31,858     72,641
        126,493  122,628
        

           Costs of equipment and
                 supplies sold                    70,097    156,526
        290,842  274,575
        

           Selling, general and
                 administrative expenses          29,688     63,826
        132,459  115,819
        

           Amortization of reorganization
                 asset                            25,663
        ----     ----      ----
        

               Special charges
        ----       ----    136,889    ----
        

               Restructuring charges
        ----       ----     32,695    ----
        

                                                 157,306    292,993
        719,378  513,022
        

        Income (loss) before interest,
          other income, reorganization items,
          income taxes, extraordinary credit
          and cumulative effect of accounting
              change                              (5,764)    41,605
        (128,189) 79,577
        

            Interest income                          997      1,576
        2,000   3,144
        

        Interest expense and fee
              amortization                       (12,869)   (26,760)
        (70,938)(67,174)
        

            Financial restructuring costs
        ----      ----      (5,987)    ----
        

            Other income (expense)                    27      6,968
        (212)   (192)
        

                                                 (11,845)   (18,216)
        (75,137)(64,222)
        

        Income (loss) before reorganization
          items, income taxes, extraordinary
          credit, and cumulative effect of
              accounting change                  (17,609)    23,389
        (203,326) 15,355
        

            Reorganization items                   ----      92,839
        ----      ----
        

        Income (loss) before income taxes,
          extraordinary credit and cumulative
              effect of accounting change        (17,609)   116,228
        (203,326) 15,355
        

            Provision for income taxes             4,400      3,700
        35,000   8,400
        

        Income (loss) before extraordinary
          credit and cumulative effect of
              accounting change                  (22,009)   112,528
        (238,326)  6,955
        

        Extraordinary credit - gain on
          discharge of indebtedness,
              net of taxes                         ----      52,442
        ----     ----
        

        Cumulative effect on prior years of
          a change in accounting for
              income taxes
        ----       ----      ----    8,000
        

            Net income (loss)                    (22,009)   164,970
        (238,326) 14,955
        

        Preferred stock dividends and
              discount accretion                   ----         540
        2,158   2,158
        

        Net income (loss) available to
              common stockholders               $(22,009)  $164,430
        $(240,484)$12,797
        

        EARNINGS (LOSS) PER COMMON AND COMMON
           EQUIVALENT SHARE:
           Net loss available to common       $(2.19)
        

                                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                                         Anacomp, Inc. and Subsidiaries
        

                                            Reorganized     Predecessor Company
                                              Company                     Twelve
                                            Four Months   Eight Months    Months
                                              Ended          Ended         Ended
                                                 Sept. 30,      May 31,
        Sept. 30,
        

                                              1996          1996    1995    1994
        

        (Dollars in thousands)
        CASH FLOWS FROM OPERATING ACTIVITIES:
               Net income (loss)              $ (22,009)  $ 164,970
        $(238,326) $14,955
        

           Adjustments to reconcile net
             income (loss) to net
        cash provided by operating activities:
               Extraordinary gain                  ----    (52,442)
        ----     ----
        

               Non cash reorganization items       ----   (107,352)
        ----     ----
        

               Depreciation and amortization     31,610     18,788
        43,375   40,649
        

           Cumulative effect of a change
                 in accounting for income taxes
        ----       ----       ----   (8,000)
        

           Provision (benefit) for losses on
                 accounts receivable                482        110
        2,742    (695)
        

               Provision for inventory valuation
        ----        ----     10,956    ----
        

               Non-cash charge in lieu of taxes   1,300
        ----      ----     ----
        

               Deferred taxes
        ----        ----     29,000   6,000
        

               Special charges
        ----        ----    136,889    ----
        

               Gain on sale of ICS Division       ----      (6,202)
        ----     ----
        

               Other                                175        997
        6,308     776
        

           Change in assets and liabilities net
             of effects from acquisitions:
           Decrease in accounts and long-term
                 receivables                      5,637    24,624
        30,948   3,040
        

           Decrease (increase) in inventories
                 and prepaid expenses            10,416    11,174
        (1,612) 15,254
        

           Decrease (increase) in other
                 assets                               1     1,094
        (8,207)(11,349)
        

           Increase (decrease) in accounts payable
                 and accrued expenses           (13,199)   (5,077)
        11,465  (3,623)
        

           Increase (decrease) in other
                 noncurrent liabilities             587    (5,899)
        (3,626) (4,323)
        

           Net cash provided by operating
                 activities                      14,650    44,785
        19,912  52,684
        

        CASH FLOWS FROM INVESTING ACTIVITIES:
               Proceeds from sale of other assets
        ----     ----       18,777   7,805
        

           Proceeds from sale of ICS Division  ----    13,554
           Purchases of property, plant
                 and equipment                   (2,224)   (3,599)
        (14,372)(18,868)
        

           Payments to acquire companies and
                 customer rights                 (3,844)
        ----      (1,262)(14,565)
        

           Net cash provided by (used in)
                 investing activities            (6,068)    9,955
        3,143 (25,628)
        

        CASH FLOWS FROM FINANCING ACTIVITIES:
           Proceeds from issuance of common
                 stock and warrants                (139)
        ----         743   1,484
        

           Proceeds from revolving line of
                 credit and long-term borrowing     ----    2,656
        22,529  39,000
        

           Principal payments on long-term
                 debt                           (22,646)  (15,332)
        (45,859)(71,095)
        

               Preferred dividends paid
        ----    ----       (1,031) (2,062)
        

           Net cash used in financing
                 activities                     (22,785)  (12,676)
        (23,618)(32,673)
        

        EFFECT OF EXCHANGE RATE CHANGES
              ON CASH                              (172)      691
        107     566
        

        INCREASE (DECREASE) IN CASH AND
              CASH EQUIVALENTS                  (14,375)   42,755
        (456) (5,051)
        

        CASH AND CASH EQUIVALENTS AT
              BEGINNING OF YEAR                  62,170    19,415
        19,871  24,922
        

        CASH AND CASH EQUIVALENTS AT
              END OF YEAR                     $  47,795 $  62,170    $
        19,415 $19,871
        

                       SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
        

                                                     Reorganized
        Predecessor Company
        

                                                      Company
        Twelve
        

                                                     Four Months    Eights
        Months
        

                                                   Ended     Months Ended  Ended
                                                     Sept. 30,    May 31,
        Sept. 30,
        

                                                       1996       1996
        1995   1994
        

        (Dollars in thousands)
        Cash paid during the year for:
               Interest                               $5,581  $11,613
        $39,426 $57,781
        

               Income taxes                           $2,942    1,606
        4,128   2,007
        

        SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
            During 1996, 1995, and 1994 the Company acquired companies and
        rights to provide future services.  In conjunction with these
        acquisitions, the purchase price consisted of the following:
        

                                                  Reorganized
        Predecessor Company
        

                                                    Company
        Twelve
        

                                                  Four Months   Eight Months
        Months
        

                                                 Ended        Ended        Ended
                                                    Sept. 30,    May 31,
        Sept. 30,
        

                                                    1996        1996
        1995    1994
        

        (Dollars in thousands)
               Cash paid                          $ 3,844      $
        ----   $1,262 $14,565
        

               Credit memos issued
        ----        ----     ----   3,085
        

               Notes payable issued                   500
        ----     ----   4,290
        

               Stock issued
        ----        ----     ----  17,201
        

               Total fair value of acquisitions   $ 4,344      $
        ----   $1,262 $39,141
        

                       CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
                                      Anacomp, Inc. and Subsidiaries
        

                                      Common  Capital in  Cumulative
                                       Stock  excess of   transaction
                                                  par value  adjustment
        Deficit Total
        

        (Dollars in thousands)
        

        BALANCE AT SEPTEMBER 30, 1993 -
              Predecessor Company        $406    $163,209  $(4,744)
        $(145,072) $13,799
        

        Common stock issued for
          purchases under the
          Employee Stock Purchase
              Plan                          3         872
        ----      ----      875
        

            Exercise of stock options       3         606
        ----      ----      609
        

            Preferred stock dividends
        ----       ----     ----    (2,062)  (2,062)
        

        Accretion of redeemable
              preferred stock discount
        ----       ----     ----       (96)     (96)
        

        Translation adjustments
              for year                    ----       ----    4,475
        ----    4,475
        

            NBS stock issuance             20       7,380
        ----      ----    7,400
        

            Graham stock issuance          25       9,776
        ----      ----    9,801
        

            Net income for the year       ----       ----     ----    14,955
        14,955
        

        BALANCE AT SEPTEMBER 30, 1994
             -Predecessor Company         457     181,843     (269)
        (132,275)  49,756
        

        Common stock issued for
          purchases under the
          Employee Stock Purchase
          Plan                          3         689    ----      ----      692
        Exercise of stock options       1          50    ----      ----       51
            Preferred stock dividends     ----       ----    ----    (2,062)
        (2,062)
        

        Accretion of redeemable
              preferred stock discount    ----       ----    ----       (96)
        (96)
        

        Translation adjustments
          for year                    ----       ----    1,598     ----    1,598
        Graham stock issuance           1        143     ----      ----      144
        Net loss for the year         ----       ---
                  --    ----  (238,326)(238,326)
        BALANCE AT SEPTEMBER 30, 1995
             - Predecessor Company        462    182,725     1,329
        (372,759)(188,243)
        

        Preferred stock conversion     11      7,893     ----    ----      7,904
            Preferred stock dividends     ----      ----     ----      (516)
        (516)
        

        Accretion of redeemable
              preferred stock discount    ----      ----     ----       (24)
        (24)
        

        Translation adjustment for
              the period                  ----      ----    (1,560)
        ----   (1,560)
        

        NBS stock issuance             11        (11)    ----      ----     ----
        Reorganization               (484)  (190,607)      231  208,329   17,469
        New stock issuance            100     79,666     ----      ----   79,766
        Net loss for the year        ----      ----      ----   164,970  164,970
        BALANCE AT  MAY 31, 1996
         - Reorganized Company        100    79,666      ----     ----    79,766
        Common stock issued for
          restricted stock award        1       791      ----     ----       792
        Fees associated with
          rights offering             ----    (139)      ----     ----     (139)
        Translation adjustment for
          the period                  ----    ----       159      ----      159
        Net loss for the  period      ----    ----       ----   (22,009)(22,009)
        BALANCE AT SEPTEMBER 30, 1996
        - Reorganized Company        $101  $80,318      $159   $(22,009)$58,569
        

SOURCE Anacomp, Inc./CONTACT: Jeff Withem, 404-876-3361 or jwithemanacomp.com, or Nancy
Vandeventer, 800-350-3044 or nvandeventeranacomp.com, both of Anacomp/




All For A Dollar announces third quarter and nine months results


SPRINGFIELD, Mass.--Nov. 20, 1996--All For A Dollar Inc. (OTC Bulletin Board Service:AFAD), today
announced sales and earnings for the third quarter and nine months ended Sept. 28, 1996.


Sales for the third quarter decreased 41.9 percent to $6.2 million from $10.6 million in the corresponding period
in 1995, primarily as a result of merchandising constraints created as a result of an inadequate credit facility in
the second and third quarters. Same store sales declined 48.0 percent for the quarter. The loss before
reorganization items and income taxes for the third quarter was $3.1 million, compared to a loss of $600,000 in
the corresponding period in 1995. The net loss for the quarter was $17.2 million, or $2.48 per share, primarily as
a result of $11.5 million in reorganization costs, compared to a net loss of $602,000 or $.09 per share, in the
corresponding period in 1995.


Sales for the nine month period decreased 24.0 percent to $23.1 million from $30.4 million in 1995. Same store
sales declined 28.4 percent for the nine months. The loss before reorganization items and income taxes for the
nine months was $6.8 million, compared to a loss of $2.5 million in 1995. The net loss for the nine months was
$20.9 million, or $3.01 per share, compared to a net income of $3.9 million, or $.56 per share for 1995.


As previously reported, on Oct. 25, 1996 the company filed a Voluntary Petition with the United States
Bankruptcy Court for the Eastern District of New York, at Brooklyn, N.Y. seeking relief pursuant to Chapter 11
of the United States Bankruptcy Code. At that time, the company was operating 111 retail close-out variety stores
throughout New England, New York, New Jersey and Pennsylvania.


On Nov. 6, 1996, the Bankruptcy Court approved an agreement with a liquidator which contemplates closing
stores and disposing of merchandise inventories in the stores through a "going-out-of- business" sale which
commenced on Nov. 7, 1996.


CONTACT: All For A Dollar Donald A. Molta, 413/733-1203




Best Products Receives Bankruptcy Court Approval to Sell all of its Assets; Going Out Of Business Sale Starts
Immediately


LOS ANGELES, CA - Nov. 20, 1996 - Best Products, the national catalogue retailer, received Bankruptcy Court
approval yesterday to sell all of its remaining assets to an investor group comprised of the
Schottenstein-Bernstein Capital Group, Alco Capital and the Nassi Group. Going Out Of Business sales in Best's
99 remaining stores, with $500 million in retail inventory, will begin immediately.


Discounts will be given on all jewelry, consumer electronics, small appliances, toys, home office products,
personal care items, sporting goods, giftware, indoor and outdoor furniture, housewares and all other
merchandise in Best's inventory. These Going Out Of Business sales will continue until all merchandise is sold.


"This Going Out Of Business sale represents a tremendous opportunity for shoppers throughout the United States
to save money on each and every quality item in these stores," said Albert Nassi, speaking for the investor group.
"There is no better time or place to find such fantastic bargains as we head into the Christmas season."


The 17 states in which the sales will occur include NJ, DE, PA, MD, VA, NC, WV, OH, MI, TX, NM, CO, AZ,
UT, MT, ID, and CA.


SOURCE The Nassi Group  /CONTACT: Albert Nassi of The Nassi Group, 818-591-7100, or Alan Cohen of
Alco Capital, 212-751-9150, or David Bernstein of Schottenstein- Bernstein Capital Group, 516 829-2400/




Emerson Radio reports results for second quarter and six months


PARSIPPANY, N.J.--Nov. 20, 1996--Emerson Radio Corp. (AMEX: MSN) today announced results for the
second quarter and six months ended Sept. 30, 1996.


In announcing the results, Gene Davis, president of Emerson said, "Results for the second quarter of fiscal 1997
continue to be impacted by a soft retail market for consumer electronics. While the company has been successful
in improving its pricing with its suppliers, the impact from increased price competition, combined with lower
sales volume has negatively affected the company's overall margins and operating results. We are continuing our
successful cost containment and reduction programs which have allowed the company to weather this very
difficult retail market. Additionally, we are continuing to see positive results from our efforts to modify our
product mix to emphasize sales of higher margin products, such as car audio and home theatre. Although we
endured another difficult quarter, we believe the company's performance can be favorably compared to the
overall results of the consumer electronics industry. Emerson and its major competitors are in the midst of an
industry-wide restructuring that is forcing plant closings and the sale of major competitors. We believe the
changes that are occurring in the industry will eventually be positive for the company and we hope will reduce
the destructive practice of competing for market share at any cost."


Davis continued, "Our current and continuing efforts are dedicated towards further streamlining the company and
growth through diversification and strategic alliances that we hope will soon return the Company to profitability.
We are currently in the process of arranging additional distribution with established industry partners in Europe
and Latin America and we are negotiating additional licensing transactions. We have also licensed proprietary
technology for a new line of home theatre systems to be introduced early next year. These systems, which have
received excellent reviews from customers, offer the retailer attractive price points in this newly-developed
high-growth market and attractive margin opportunities for Emerson."


In the third quarter of the current fiscal year, the company reported that it made proposals to Sport Supply Group
Inc. ("SSG"), a New York Stock Exchange company, in which the company seeks to acquire a significant interest
in SSG, though not a majority interest in SSG common stock, and control of SSG's board of directors. Under the
terms of the company's most recent proposal, the company would increase its investment in SSG (over and above
the 9.9% stake the company currently owns) by approximately $12 million for additional common stock of SSG
plus warrants. If the company proposal is accepted, the company would beneficially own approximately 28% of
the outstanding common stock of SSG, and assuming exercise of all of the warrants, the company would
beneficially own approximately 35% of SSG common stock. The company is currently negotiating with SSG on
the price and terms of such a transaction. SSG is of the largest direct mail distributor of sporting goods equipment
and supplies in the United States. SSG sells its products at margins significantly higher than Emerson's core
business and to an institutional market that does not require the significant after-market servicing costs typical of
Emerson's core business.


For the second quarter and six months ended Sept. 30, 1996, the company reported net revenues of $60,509,000
and $101,656,000, as compared to net revenues of $87,348,000 and $144,406,000 for the same periods fiscal
year. Net revenues for both periods excludes sales of video products and consumer electronic accessories under
the "Emerson(R)" trademark that the company has licensed to other parties.


The lower net revenues reported for the current fiscal year reflect a decline in the company's unit sales volume in
the U.S. in certain video and audio product categories due to increased price competition, weak consumer
demand, and a soft retail environment. Likewise, sales declined in Canada as a result of the company's decision
to close its local Canadian office and distribution operation in favor of an independent distributor. Net revenues
benefited in the current fiscal year from increased sales of microwave ovens attributable to a broader product
line, larger size units and increased SKU selections by customers, and by sales of home theater and car audio
products which were not introduced until the second and third quarters of last fiscal year.


The company reported a loss before non-operating charges for the first quarter and six months ended Sept. 30,
1996, totaling $3,309,000 and $8,032,000 compared to earnings of $126,000 and a loss of $1,274,000 in the
same periods last year. Non-operating charges aggregating $2,734,000 were recorded in the second quarter
ended Sept. 30, 1996 to recognize the costs to restructure the company's Canadian operation and to write-off the
costs related to the proposed but unsuccessful acquisition of International Jensen Incorporated. The company is
currently in litigation attempting to recover such costs.


Gross profit margins in the current fiscal year were lower on a comparative basis due to lower sales prices
(primarily video products), a higher proportion of close-out sales, the allocation of reduced fixed costs over a
lower revenue base, a change in product mix and the recognition of income relating to reduced reserve
requirements for sales returns in prior year. However, profit margins were favorably impacted by the
introduction of higher margin products--home theater and car audio products, and by a reduction in costs
associated with product returns.


The company's selling, general and administrative expenses decreased by $1,410,000 and $1,290,000 in the
second quarter and six months ended Sept. 30, 1996, as compared to the same periods last year. The decrease
was attributable to the company's continuing cost reductions programs in both its U.S. and foreign offices and
lower selling expenses, partially offset by reduced foreign currency gains. Other operating costs and expenses
declined by $240,000 and $921,000 in the second quarter and six months ended Sept. 30, 1996 as compared to
the same periods last year, primarily a result of a decrease in after-sale service costs relating to the company's
licensing of its "Emerson(R)" trademark for sale of video products to its largest customer.


This press release contains forward looking statements with respect to the results of operations and business of
the company that involve risks and uncertainties. Actual results may differ materially from those stated depending
upon a number of factors, including but not limited to product supply and demand, retail consumer electronics
market, price competition, the company's ability to develop new products and competition from companies with
greater resources. Please read Part II, Item 5 - Other Information in the company's most recent quarterly report on
Form 10-Q on file with the Securities and Exchange Commission.


Emerson Radio Corp., founded in 1948, is headquartered in Parsippany, N.J. The company designs and markets,
throughout the world, full lines of televisions and other video products, microwave ovens, audio, car audio and
home theater products.


                      Emerson Radio Corp. and Subsidiaries
                      Consolidated Statements of Operations
                                  (Unaudited)
                     (In thousands, except per share amounts)
        

                                 Six Months Ended     Three Months Ended    
                                     Sept. 30,             Sept. 30,
                                 1996       1995       1996       1995
        

        Net revenues               $101,656   $144,406   $60,509    $87,348
        Costs and expenses:
           Cost of sales             96,536    130,692    57,752     79,807
           Other operating costs
         and expenses             1,624      2,545       689        929
        Selling, general and
           administrative expenses    9,705     10,995     4,342      5,752
        

        Restructuring and other
           nonrecurring charges       2,734       --       2,734        --
                                110,599    144,232    65,517     86,488
        

        Operating profits (loss)     (8,943)       174    (5,008)       860
        Interest expense              1,657      1,294       845        671
        Earnings (loss) before
           income taxes             (10,600)    (1,120)   (5,853)       189
        Provision for income taxes      166        154       190         63
        Net earnings (loss)        $(10,766)   $(1,274)  $(6,043)       126
        Net earnings (loss) per
           common share               $(.28)     $(.04)    $(.15)        --
        Weighted average number of   
           common shares outstanding 40,274     40,253    40,295     40,253
        

CONTACT: Emerson Radio, Parsippany Eugene I. Davis/Eddie Rishty 201/884-5800




CompuServe Reports Expected Q2 Loss And Other Charges


COLUMBUS, Ohio, Nov. 20, 1996 - CompuServe Corporation (Nasdaq: CSRV) today confirmed its previously
forecast second- quarter loss, announced an accelerated amortization of previously capitalized subscriber
acquisition costs and disclosed a shift in its marketing strategy to reduce costs and to focus on business and
professional subscribers.


Consistent with the company's previous announcement, delays in the shipment of its new CompuServe 3.0
interface coupled with a continued decline in domestic CompuServe Interactive (CSi) membership resulted in a
second-quarter loss of $24.5 million, or 26 cents per share before special charges. The accelerated amortization
of previously capitalized subscriber acquisition costs produced an after-tax charge of $28.6 million, or 31 cents
per share. As part of the shift in strategy, CompuServe will withdraw its family-oriented WOW! online service
from the marketplace effective January 31, 1997, resulting in a one-time after-tax charge of $4.9 million, or 6
cents per share, for the second quarter. The total loss for the quarter, including the special charges, was $58
million, or 63 cents per share.


"Back-to-Basics" Global Strategy CompuServe also announced a "back-to-basics" global strategy aimed at
building on its leadership in the business and professional market while focusing on profitable segments in the
consumer market. The company said it will continue pursuing growth in higher-margin European and other
international consumer markets. In the U.S. consumer market, it will continue to provide a distinctive experience
in the CSi online and Internet service, while focusing its retention and growth efforts on CSi's traditional and
loyal base of users.


The company will launch "CompuServe for Business," an enhanced service built on its CSi service with content
specifically designed for business people and professionals. CompuServe for Business will be launched early
next year. In the same time frame, CompuServe plans to introduce enhanced offerings for the business and
professional sector in Europe as well.


"Going forward, we will emphasize our inherent strengths," said Bob Massey, CompuServe president and chief
executive officer. "We're going to refocus on our existing leadership among business, professional and technical
users, as well as our traditional base of consumer subscribers. These are segments with more stable subscriber
bases. This is where we built our name and reputation, and where we continue to be the undisputed leader.


"We will stop undifferentiated marketing to mass consumers," said Massey. "Like others in our industry, we were
bringing new users in the front door and seeing many go out the back. Our revised strategy will enable us to
reduce costs by eliminating mass consumer marketing.


"When we launched our WOW! service earlier this year, we felt it was the right product for the time," he said.
"Since that time, much has changed in terms of market entrants, pricing and the high cost to compete in the mass
consumer market. We intend to focus our resources in those sectors where we can profitably expand our
business."


Network Services The CompuServe Network Services division continued impressive growth in the second
quarter. It added 52 corporate customers, bringing the total to 1,061 corporations, with wide area intranet
connectivity as well as applications and system management. Revenues from Network Services grew 33 percent
over last year's quarter to $63.6 million and represented nearly 30 percent of total company revenues.


"CompuServe Network Services continues to outpace the strong overall growth in the corporate data
communications market," Massey said. "Over the past few years, revenues have increased well over 30 percent
annually, while attracting a growing base of Fortune 1000 customers under long-term contracts for outsourced
data communications, intranet solutions and applications hosting."


Interactive Services As of October 31, 1996, CompuServe had 3,312,000 direct subscribers worldwide, flat with
the 3,313,000 reported as of July 31, 1996. International subscribers grew by 56,000 to 1,120,000 while North
American users declined by 57,000 to 2,192,000. CompuServe's Japanese licensee, NIFTY-Serve, had
2,029,000 subscribers, up from 1,864,000 at the end of the prior quarter.


Subscribers to WOW!, introduced 7 months ago, increased to 102,000 from 92,000 while subscribers to
SPRYNET, CompuServe's Internet-only access service, grew to 218,000 from 163,000 a quarter earlier.


CompuServe's new online interface, CompuServe 3.0, was launched in late September, with distribution of the
product to current and recently canceled subscribers commencing in the month of October. Overall unsolicited
feedback has been positive. Because of the timing of the release of the new software, it had little effect on second
quarter revenues.


Revenues Up For the quarter ended October 31, 1996, CompuServe reported revenues of $214.3 million, 14
percent higher than the year-earlier period and 3 percent higher than the preceding quarter. Interactive Services
revenues rose 8 percent versus year-ago levels, driven largely by the continued growth of the company's
international business. Versus the previous quarter, Interactive Services revenues grew 2 percent despite a slight
decline in overall membership as higher service usage drove an increase in per-member revenues. These
increases, coupled with the continued growth in Network Services, were not enough to overcome the continuing
high cost of the network infrastructure, the operation of the WOW! service and the distribution of the new
CompuServe 3.0 interface. The majority of the expected savings attributable to the restructuring and profit
improvement initiatives announced in late August will be realized in the third and fourth quarters.


Accelerated Amortization of Subscriber Acquisition Costs The accelerated amortization of previously
capitalized subscriber acquisition costs reflects a combination of a decline in overall subscriber retention rates, a
more prolonged decline in per- member revenues and the generally unfavorable economics of the company's
flat-priced WOW! service and SPRYNET Internet access service.


The most recent data suggested that the rate of capitalized cost amortization be accelerated to correlate with the
recent rates of customer retention and lower member revenue streams. Accordingly, the results for the second
quarter reflect an accelerated writedown of previously deferred costs totaling $45.3 million ($28.6 million after
tax). This assumes that the capitalized costs of CSi subscriber acquisition are expensed at the rate of 50 percent
in the first three months, 30 percent over the next nine months and 20 percent in the subsequent year. Under the
previous policy, such costs were expensed at the rate of 60 percent in the first 12 months and 40 percent in the
subsequent year. The amount also includes the total writedown of previously capitalized subscriber acquisition
costs for WOW! and SPRYNET reflecting the high costs to support these high usage, flat-priced customer groups.
At quarter-end, the remaining unamortized subscriber costs totaled $50.2 million.


Founded in 1969, CompuServe provides the world's most comprehensive online/Internet access through its three
brands - CompuServe, WOW! and SPRYNET. Through CompuServe, its Japanese Licensee NIFTY-Serve and
its affiliates around the world, more than 5 million home and business users in more than 185 countries are
connected online and to the Internet. CompuServe Network Services manages complex global data
communication environments for more than 1,000 corporate customers. With world headquarters in Columbus,
Ohio, CompuServe's offices include European centers in London, Munich, Amsterdam, Zurich and Paris.


Except for historical information contained herein, the matters set forth in this press release are forward-looking
statements that are subject to risks and uncertainty which could cause actual results to differ materially.
CompuServe cannot assure for example, that its interface software will be widely accepted by its membership,
that its strategy and related marketing programs will produce the anticipated results or that churn and subscriber
growth will be materially impacted by these interfaces and marketing efforts.


SOURCE CompuServe Corporation /CONTACT: Steve Conway, Media, 614-538-3829, or Herb Kahn,
Analysts, 614-538-3556, both of CompuServe; or Karl Plath, General Information, 312-640-6738, or Julie
Creed, Analysts, 312-640-6742, or Beth Gallanis, Media, 312-640-6737, all of the Financial Relations Board/