Edison Brothers Clarifies Plan Of Reorganization Describes Warrants Current Shareholders Would Receive
ST. LOUIS, MO - March 10, 1997 - As previously announced, Edison Brothers Stores Inc. (NYSE: EBS) set
the stage for emergence from Chapter 11 by filing its plan of reorganization with the U.S. Bankruptcy Court in
Wilmington, Del., on Feb. 27, 1997. The plan currently on file proposes that Edison would cancel all of its
existing common stock and issue 10 million shares of new common stock, all of which would be distributed to
the company's creditors. The plan also provides creditors with a combination of cash, new corporate debt and
other assets in settlement of the approximately $440 million in creditor claims.
The plan as filed proposes that Edison shareholders would receive two sets of warrants that would entitle them
to buy up to 9 percent of the new common stock on a fully diluted basis at pre- determined prices. The first set
of warrants, which would have a three-year term, would entitle shareholders to purchase 4 percent of the new
stock at a strike price of $13.85 per share. The second set of warrants, which would have a six-year term,
would entitle shareholders to purchase 5 percent of the new common stock at a strike price of $22.10 per
share. The warrants would be issued at the time of the company's emergence from Chapter 11.
Edison Brothers expects to file its proposed disclosure statement with the bankruptcy court by March 31, 1997.
Assuming the court approves the disclosure statement, the company's creditors and shareholders will be asked
to approve the plan.
The company then will move for confirmation of the plan by the bankruptcy court, which could occur by
mid-summer 1997. The proposed plan is subject to negotiation among Edison Brothers and its creditors' and
equity committees and, accordingly, the plan is subject to change throughout the process until confirmed by the
bankruptcy court.
Edison Brothers Stores Inc. operates JW/Jeans West, Coda, Oaktree, J. Riggings and REPP Ltd Big & Tall
menswear stores; REPP Ltd and Phoenix Big & Tall men's catalogs; 5-7-9 Shops junior apparel stores;
Bakers, Leeds, Pricis and Wild Pair footwear stores; and Shifty's and Terrasystems experimental concepts.
SOURCE Edison Brothers Stores, Inc. /CONTACT: David B. Cooper, Jr., CFO, 314-331-6531, or Amy
Calvin, Communications Director, 314-331-6588, of Edison Brothers Stores Inc./
Brothers Gourmet Coffees, Inc. Announces Fourth Quarter Earnings
BOCA RATON, Fla., March 10, 1997 - Brothers Gourmet Coffees, Inc. (Nasdaq: BEAN) today announced
fourth quarter earnings of $.345 million, or $.03 per share, from continuing operations (before extraordinary
items and losses from discontinued retail operations) as compared to $1.6 million, or $.14 per share, a year ago.
After giving effect to extraordinary items and the loss from discontinued retail operations, the net loss for the
quarter was $1.2 million, or $.11 per share, as compared to a net loss of $1.6 million, or $.14 per share, a year
ago.
Donald D. Breen, President and CEO, said, "The positive results in our core business this quarter were primarily
attributable to our focus on profitable branded business and cost savings from plant consolidations. Continued
reductions in operating expenses also contributed to our improved operating results."
Operating results improved by more than $6.5 million for the year ended December 27, 1996, as compared
with a year ago. Before extraordinary items, losses from discontinued retail operations and a $5.5 million
non-cash litigation settlement charge, the loss from continuing operations was $3.1 million, or $.28 per share, as
compared to a net loss of $9.7 million or $.87 per share, a year ago. Net loss for the year (including
extraordinary items and discontinued retail operations) was $10.2 million, or $.91 per share, as compared to a
net loss of $53.5 million, or $4.78 per share, a year ago.
Breen went on to say, "In 1996, we achieved many of our goals. We set a product strategy, solidified our
financial foundation, completed the execution of our 1995 Restructuring Plan, improved customer service levels
and rededicated our commitment to quality. In 1997, we intend to focus on improving profitability by continuing
to increase sales volume."
Brothers Gourmet Coffees, Inc. is a leading wholesale supplier of branded gourmet coffees, offering 75 gourmet
coffee roasts, blends and flavors in a variety of packages that meet specific consumer brewing needs. Brothers
operates its own roasting facility in Houston, Texas and distributes its coffee products from local distribution
centers located throughout the United States.
BROTHERS GOURMET
COFFEES, INC.
Consolidated Statement
Of Operations
(In thousands, except per
share amounts)
Three-Months
Ended
Twelve-Months
Ended
December 27
December 29
December 27
December 29
1996
1995
1996 1995
Net Sales $21,333
$26,052 $72,577
$95,005
Cost of goods sold 10,803
13,096 38,585
52,951
Gross profit 10,530
12,956 33,992
42,054
Operating Expenses
Selling, general and
administrative 8,785
9,669 31,826
44,858
Restructuring 28
--- 291
945
Amortization of
intangibles 669
795 2,784
3,373
Total operating
expenses 9,482
10,464 34,901
49,176
Operating income (loss)
from continuing
operations 1,048
2,492 (909)
(7,122)
Litigation charge ---
--- 5,500
---
Interest expense, net 619
831 2,140
2,523
Other (income) expense 84
43 76
47
Income (loss) from
continuing operations 345
1,618 (8,625)
(9,692)
Discontinued Operations:
Loss from discontinued
retail operations 1,400
3,200 1,400
43,794
Loss prior to
extraordinary item (1,055)
(1,582) (10,025)
(53,486)
Extraordinary item - loss
from early extinguishment
of debt 156
--- 156
---
Net loss $(1,211)
$(1,582) $(10,181)
$(53,486)
Income (loss) per common share:
Income (loss) per common
share from continuing
operations $0.03
$0.14 $(0.77)
$(0.87)
Loss prior to
extraordinary item $(0.09)
$(0.14) $(0.89)
$(4.78)
Loss per common share $(0.11)
$(0.14) $(0.91)
$(4.78)
Weighted average common
shares outstanding 11,202
11,184 11,202
11,184
SOURCE Brothers Gourmet Coffees, Inc./CONTACT: Barry Bilmes, Brothers Gourmet Coffees,
561-995-2600/
Coleman reports fourth quarter and full year results for 1996; CEO Levin says new cost-cutting measures have
been implemented
GOLDEN, Colo.--March 10, 1997--The Coleman Company, Inc. (NYSE: CLN) today reported financial
results for the fourth quarter and full year 1996. Revenues were a record $1.2 billion, an increase of nearly 31%
over 1995. However, costs associated with acquisitions, restructuring and other charges had a pronounced
impact on profitability. "We at Coleman recognize that 1996 was a difficult and disappointing year. However,
the fundamentals of Coleman's business are solid, and its growth prospects are strong," said Jerry W. Levin,
Chairman and Chief Executive Officer.
In the fourth quarter, net sales reached $224.4 million, a 20% increase from $186.5 million in the same period
last year. Net loss before restructuring and other charges for the quarter was $27.9 million, or $(.52) per share.
Net loss after restructuring and other charges for the quarter was $35.9 million, or $(.67) per share compared
to a net loss of $9.8 million or $(.18) per share in the fourth quarter of 1995.
For the year, net sales rose nearly 31% to $1,220.2 million compared with $933.6 million for 1995. Income
before restructuring and other charges fell to $11.3 million, or $.21 per share from $49.9 million or $.94 per
share in 1995. Bad weather during camping season in North America and the weak economy in Japan
contributed to the results. Net loss after restructuring and other charges was $41.9 million for the year, or $(.79)
per share compared to a net profit of $39.3 million, or $.74 per share in 1995. Restructuring and other charges
included the costs of integrating the Camping Gaz acquisition into the Company and charges in connection with
the previously announced coil light patent litigation settlement.
The Company also announced that it has amended its bank credit facility. "The relationship with our banks
remains strong and they are fully supportive of the actions being taken by the Company. Our credit facility
provides sufficient capital to support our plans," said Levin.
Coleman has a powerful competitive position in a growing market, with leading market shares, high quality
products and the most prominent brand names in the industry. Looking ahead in 1997, Levin identified several
areas he expects to address immediately: "We are going to concentrate the Company's resources on reinforcing
its fundamental strengths and core businesses. We are vigorously scrutinizing every one of the Company's
businesses. We have already put in place more rigorous cost and working capital controls throughout the
Company and intend to continue this process. Going forward," Levin added, "Coleman will work to increase its
market shares by increasing brand support, introducing new technologically advanced products and by
continuing efforts to globalize its core brands such as Coleman, Camping Gaz, Powermate and Eastpak."
Coleman is traded as CLN on the New York Stock Exchange. It manufactures and distributes widely
diversified product lines for camping, leisure time, hardware and home safety and security markets in the United
States, Canada and more than 100 other countries.
Information in this Press Release includes forward looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. All such forward looking statements involve
risks and uncertainties. In addition to factors that are described in the Company's SEC filings, the following
factors could cause actual results to differ materially from those expressed in the forward looking statements: (i)
difficulties or delays in developing and introducing new products or failure of consumers to accept new product
offerings; (ii) difficulties or delays in the Company's continued expansion outside the United States and into new
markets; and (iii) actions by competitors including business combinations, technological breakthroughs, new
product offerings and marketing and promotional successes.
THE COLEMAN COMPANY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
1996 1995 1996 1995
Net revenues $ 224,395 $ 186,452 $ 1,220,216 $
933,574
Cost of sales 191,074 136,308 928,497
649,427
Gross profit 33,321 50,144 291,719
284,147
Selling, general and
administrative expenses 76,715 46,532 291,669
174,688
Interest expense, net 9,932 6,276 38,727
24,545
Asset impairment charges - 12,289
- 12,289
Amortization of goodwill
and deferred charges 2,508 2,030 10,473
7,745
Other (income) expense, net (84) 270 1,151
334
(Loss) earnings before income
taxes, minority interest (55,750) (17,253) (50,301)
64,546
and extraordinary item
Income tax (benefit) expense (19,879) (7,423) (10,927)
24,479
Minority interest 2 - 1,872
-
(Loss) earnings before
extraordinary item (35,873) (9,830) (41,246)
40,067
Extraordinary item - - (647)
(787)
Net (loss) earnings $ (35,873) $ (9,830) $ (41,893) $
39,280
(Loss) earnings per share
before extraordinary item $ (0.67) $ (0.18) $ (0.78) $ 0.75
Extraordinary item - - (0.01) (0.01)
Net (loss) earnings* $ (0.67) (0.18) $ (0.79) $ 0.74
Weighted average common shares
outstanding 53,219 53,156 53,197 53,226
*Before restructuring and other charges and extraordinary
item in 1996 and asset impairment and extraordinary
item charges in 1995 $ (0.52) 0.00 $ 0.21 $ 0.94
THE COLEMAN COMPANY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
December 31,
1996 1995
ASSETS
Cash $ 17,299 $ 12,065
Accounts receivable 209,942 165,309
Inventories 287,502 216,236
Deferred tax assets and other 76,894 45,189
Total Current Assets 591,637 438,799
Property, plant and equipment - net 199,182 162,691
Intangibles and other assets 369,267 242,997
Total Assets $ 1,160,086 $ 844,487
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts and notes payable 132,841 90,679
Other current liabilities 113,653 59,188
Total Current Liabilities 246,494 149,867
Long-term debt 582,866 354,206
Other liabilities 76,173 48,072
Minority interest 1,608 -
Stockholders' equity 252,945 292,342
Total Liabilities
and Stockholders' Equity $1,160,086 $ 844,487
CONTACT: The Coleman Co. Inc. James T. Conroy, 212/572-5980 (press contact) Marc R. Shiffman,
303/202-2547 (IR contact)