DEP reports improved operating income and
increased sales in quarter following emergence from Chapter 11
bankruptcy
LOS ANGELES, CA --March 18, 1997--DEP
Corp. (NASDAQ SmallCap Market:DEPC) Tuesday reported a 5
percent increase in sales, due to the performance of its Dep and
L.A. Looks brands, and improved operating profit for the three
months following the conclusion of its Chapter 11 proceeding.
Net sales for the second quarter ended Jan. 31, 1997, were
$29.1 million, up from $27.8 million for the same period last
year. Income from operations for the three months rose to $1.5
million from $19,000 during the prior-year period. Net income for
the second quarter was $64,000, or 1 cent per share, compared
with a net loss of $1.8 million, or 29 cents per share, last
year.
"We are extremely pleased with our progress following the
conclusion of the Chapter 11 proceedings," said Robert
Berglass, president and chief executive officer of DEP. "We
improved operating income -- the best measure of our performance
-- by increased sales combined with the positive effects of our
cost reduction programs. Additionally, new advertising campaigns
along with improved promotional activity have been recently
introduced for the L.A. Looks and DEP brands."
For the six months ended Jan. 31, 1997, net sales were $57.1
million, up from $56.7 million for the first six months of the
previous year. Income from operations for the six months was $1.7
million, up 19 percent from $1.4 million for the same prior-year
period.
The company reported a net loss of $2 million, or 31 cents per
share, compared with a net loss of $2.2 million, or 35 cents per
share, for the same period last year. Earnings were affected by a
sales mix of lower margined products and higher interest expense.
Interest expense for the three- and six-month periods of this
year increased to $1.8 million and $3.7 million, respectively,
compared with $1.7 million and $3.6 million for the same periods
of last year. In addition, the company reported cash availability
of $12.2 million as of Jan. 31, 1997.
"Looking ahead at the balance of fiscal 1997 and beyond,
our goal is to strengthen and build sales and earnings by, among
other things, improving the support of our existing brands,
launching higher margined products and continuing to control
costs," Berglass said.
"While much more work remains to be completed, I am
convinced that through the dedication of our employees and the
continued support of our suppliers, we will achieve our goals and
enhance stockholder value."
DEP Corp. is a consumer products company that develops,
manufactures and markets a wide variety of personal care products
under 10 major brand names: Dep, L.A. Looks, Agree, Halsa, Lilt,
Natures Family, Porcelana, Cuticura, Topol and Lavoris.
DEP CORP. AND
SUBSIDIARIES
Consolidated Income
Statement Data
(In thousands, except
per-share data)
Three Months Ended
Six Months
Ended
Jan. 31,
Jan.
31,
(Unaudited)
(Unaudited)
1997 1996
1997
1996
Net sales $29,109
$27,813 $57,122 $56,741
Selling, general
and administrative
expenses 16,225
17,293 33,266 34,382
Income from
operations 1,518
19 1,702 1,433
Interest expense 1,758
1,694 3,717 3,560
Reorganization
items (302)
92 (3) 191
Net income
(loss) $64
($1,807) ($1,999)
($2,190)
Net income
(loss) per share 1 cent 29
cents 31 cents 35 cents
Weighted average
shares outstanding $6,804,245
6,251,140 6,527,693 6,251,140
NOTE: The six months ended Jan. 31, 1997, includes $640,000 of
expenses incurred due to the recall of skin care products in test
market.
CONTACT: DEP Corp., Rancho Dominguez, Calif. D. Lee Johnson,
310/604-0777 or Sitrick & Co. Ann Julsen, 310/788-2850
Fruehauf Trailer Corp. announces sale
of certain assets to Wabash National Corp.
INDIANAPOLIS, IN --March 18, 1997--
announced it has accepted the bid of Wabash National Corp.
(NYSE:WNC) to purchase substantially all the remaining operating
assets of Fruehauf other than the company's interest in its
Mexican subsidiary, Fruehauf de Mexico.
The bid, revised from the previously announced bid, includes
the company's Fort Madison, Iowa, trailer manufacturing plant and
is valued at approximately $52 million. The bid also includes the
Sales and Distribution business consisting of 31 retail outlets,
the aftermarket parts distribution business based in Grove City,
Ohio, the Scott County, Tenn., specialty trailer manufacturing
operation and the Fruehauf name. The proposal is subject to the
approval of the Bankruptcy Court in Wilmington, Del. A hearing to
consider approval is scheduled for Thursday, March 20, 1997.
Commenting on the sale to Wabash National, Derek L. Nagle,
president of Fruehauf, stated, "The combination of Wabash
National's leading fleet market share and Fruehauf's extensive
distribution capabilities is expected to positively impact our
combined businesses. The parts, service and used trailer revenues
generated through the retail distribution network have
historically been a large component of Fruehauf's consolidated
revenues. The used trailers generated by Wabash National's large
fleet business, together with the combination of the aftermarket
parts businesses, offer the opportunity to further leverage the
retail distribution network. In addition, the introduction of
Wabash National's refrigerated van trailers allows us to expand
the new product offerings through the sales and service
centers."
Fruehauf Trailer Corp. filed a voluntary petition under
chapter 11 of the U.S. Bankruptcy Code on Oct. 7, 1996, and
currently operates its business as a debtor in possession.
Fruehauf is a manufacturer of truck trailers, producing,
marketing and servicing the industry's widest range of dry
freight van, platform, dump and liquid and dry bulk tank
trailers. Among the largest suppliers of trailer parts in North
America, Fruehauf products are sold throughout the truck trailer
industry's largest company-owned dealer and authorized
independent dealer network in North America.
CONTACT: Fruehauf Trailer Corp., Indianapolis Gregory G.
Fehr/Michael D. Picchi, 317/630-3000