THE BIBB COMPANY REPORTS RESULTS BEFORE AND
AFTER REORGANIZATION
ATLANTA, GA --March 26, 1997--The Bibb Company today announced
results for the three months ended December 28, 1996, and the
nine months ended September 28, 1996.
Bibb completed a prepackaged plan of reorganization on
September 27, 1996. The consummation of the Plan resulted in,
among other things, (i) the discharge of approximately $197
million in long-term debt, including accrued interest, and (ii)
the issuance of 9,500,000 shares of common stock to the holders
of senior subordinated notes and 500,000 shares to the holders of
old common stock. The Plan did not alter, adjust, or reduce the
Company's obligations to its other creditors. For accounting
purposes, the Company treated the consummation of the Plan as if
it occurred on September 28, 1996. The financial statements as of
and for the three months ended December 28, 1996, were prepared
under the principles of fresh-start reporting for companies
emerging from a plan of reorganization. As a result, the
financial statements after the consummation of the Plan are not
comparable to the financial statements of prior periods.
Results for the three months ended December 28, 1996, do not
include the terry towel division which was sold to WestPoint
Stevens in February 1997. Accordingly, the results of the terry
division for the fourth quarter were accounted for as a
discontinued operation. For comparative purposes, all fourth
quarter 1995 results exclude the terry division. Net sales were
$74.2 million for the quarter ended December 28, 1996, compared
with $78.8 million for the same period a year ago. Gross profit
improved to $7.5 million compared with $3.8 million for the prior
period. There was a net loss for the quarter of $2.6 million
compared with a net loss of $10.6 million for the same period in
1995. For the three months ended December 28, 1996, there was a
net loss per share of $0.25 on 10 million weighted average shares
outstanding.
Results for the nine months ended September 28, 1996, include
reorganization charges and an adjustment of accounts to fair
value. Net sales for the period were $262.4 million with gross
profit of $22.7 million. Net income for the nine months was $98.2
million, including an extraordinary gain of $111.7 million for
the discharge of debt in the reorganization. Excluding the
extraordinary gain, there was a net loss for the period of $19.9
million.
Bibb's President and Chief Executive Officer Michael L.
Fulbright, said, "As part of the reorganization of the
Company, we sold our terry towel business and restructured five
facilities. With these actions, we have significantly reduced our
outstanding debt levels and streamlined our manufacturing
facilities. Today, we are substantially a different company than
we were three months ago and have re-focused the remaining
operations of the Company on those businesses in which we have a
leadership position in the industry. We are pleased with our
accomplishments to date and are encouraged with the improving
trends of our operations and results."
Statements contained in this news release are forward-looking
statements as defined in the Private Securities Litigation Reform
Act of 1995. Forward-looking statements involve unknown
uncertainties and risks which may cause the Company's actual
results in the future to differ materially from expected results.
These risks and uncertainties include, among others, economic or
competitive conditions, the availability of financing at
satisfactory terms, the demand for the Company's products, the
ability of the Company to successfully implement its strategic
plans, and the risks and uncertainties identified in the
Company's filings with the Securities and Exchange Commission.
Bibb is a manufacturer and marketer of consumer products for
the home, principally sheets, bedding and bath accessories;
textile products for the hospitality and healthcare industries;
fabric for the apparel industry; and specially engineered textile
products used in making high-pressure hoses and other industrial
products. Bibb operates facilities in Georgia, North Carolina,
South Carolina and Virginia.
THE BIBB COMPANY
statements of operations -
unaudited (In thousands,
except per share data)
Three Months Nine Months
Ended Ended
Year Ended Year
Ended
Dec. 28, Sept. 28,
Dec. 30, Dec. 31,
1996 1996
1995 1994
Net sales $ 74,174
$262,392 $389,998 $459,192
Cost of sales 66,709
239,724 366,040 432,235
Gross profit 7,465
22,668 23,958 26,957
Selling and administrative
expenses 8,342
26,002 36,130 41,765
Management fees to
affiliate 0
1,993 3,368 4,000
Operating loss (877)
(5,327) (15,540)
(18,808)
Other (expense) income:
Interest expense:
Senior and other debt (1,319)
(4,850) (5,627)
(4,095)
Subordinated bonds 0
(11,151) (22,299)
(22,284)
(1,319) (16,001)
(27,926)
(26,379)
Interest income from
T. B. Wood's Corporation 0
659 1,172 1,174
Loan fee amortization and
related expenses (235)
(1,928) (2,486)
(1,795)
Other, net (109)
2,660 (2,811)
(2,108)
(1,663) (14,610)
(32,051)
(29,108)
Loss before reorganization
items and extraordinary
item (2,540)
(19,937) (47,591)
(47,916)
Reorganization items:
Professional fees and
other expenses 0
(1,423) 0 0
Adjust accounts to fair
value 0
7,921 0 0
Extraordinary item, gain on
discharge of debt $ 0
$111,650 $ 0 $ 0
Net (Loss) income $(2,540) $
98,211 $ (47,591) $ (47,916) Net loss
per share of
common stock $ (0.25) $
- $ - $ -
Weighted Average
Shares Outstanding 10,000
- - -
THE BIBB COMPANY
balance sheets
(In thousands)
December 28,
December
30,
1996
1995
ASSETS
Current Assets:
Cash and cash equivalents $
3,206 $ 150 Restricted
cash 0
7,966 Accounts receivable, net
55,128 7,926
Inventories
72,282 80,185 Assets
held for sale 37,012
0 Prepaid expenses and
other
current assets
2,033 1,907
Total current assets 169,661
98,134 Property, Plant and
Equipment, Net 58,642
77,414 Investment in and Note Receivable
from T.B. Wood's Corporation
0 15,270
Other Assets
4,397 7,820
$ 232,700
$
198,638
LIABILITIES AND STOCKHOLDERS' EQUITY
(DEFICIT) Current Liabilities:
Current maturities of
long-term debt $
5,237 $ 208,971
Accounts payable
36,466 33,307 Accrued
payroll and other
compensation
14,607 13,999
Accrued interest
681 26,984 Other accrued
liabilities 5,768
6,204
Total current liabilities 62,759
289,265 Long-term Debt, less
current
maturities
84,093 0
Stockholders' Equity (Deficit):
Preferred stock, $.01 par
value, 5,000,000 shares
authorized; 0 shares issued
and outstanding
0 0
Common stock, $.01 par value;
12,000,000 shares authorized;
10,000,000 shares issued
and outstanding
100 0
Common stock, $.10 par value;
500,000 shares authorized;
9,600 shares issued and
outstanding
0 1
Additional paid-in capital
88,348 3,427 Retained
deficit (2,540)
(93,105) Minimum pension
liability
adjustment
(60) (950)
Total stockholders' equity
(deficit) 85,848
(90,627)
$ 232,700
$
198,638
CONTACT: The Bibb Company A. William Ott (770) 644-7067 or
(912) 752-6976
U.S. Bankruptcy Court approves sale of certain
INDIANAPOLIS, IN--March 26, 1997--
announced that the U.S. Bankruptcy Court in the District of
Delaware has approved the previously announced sale of certain
assets to Wabash National Corporation (NYSE:WNC). The purchase
price is valued at approximately $52 million and includes the
Company's Fort Madison, Iowa and Scott County, Tennessee
manufacturing facilities, the Sales and Distribution business
consisting of 31 retail outlets, the aftermarket parts
distribution business based in Grove City, Ohio, and all the
trademarks and patents including the Fruehauf name. The Company
expects to close the sale after receiving certain regulatory
approvals.
Fruehauf Trailer Corporation filed a voluntary petition under
chapter 11 of the U.S. Bankruptcy Code on October 7, 1996 and
currently operates its businesses 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 Corporation Gregory G. Fehr, Michael
D. Picchi, 317/630-3000
Hanover Direct announces year-end
results
WEEHAWKEN, N.J.--March 26, 1997-- $50 million rights offering
to be underwritten by Richemont Hanover Direct, Inc. (Amex:HNV)
today announced both its financial results for the fourth quarter
and twelve months ending December 28, 1996 as well as a
recapitalization of the Company, to be effected through a planned
$50 million rights offering. While the prior year's results
reflect the significant losses detailed below, Hanover also
announced improved performance by its specialty catalogs and that
its continuing catalogs achieved record sales in December.
Hanover said that the rights would be priced at $0.90 per
share of common stock and that Richemont, a Swiss public company
which is an affiliate of Hanover's majority shareholder, has
agreed to purchase all shares not subscribed by Hanover's
shareholders. Any offering will be made by means of prospectus.
Hanover also announced that Richemont had agreed to advance up to
$30 million to the company to facilitate improved vendor
shipments. The advance would be repayable out of the proceeds of
the planned rights offering. Two senior Richemont executives will
immediately join the Hanover Board and its Executive Committee.
Hanover also said its lender group waived compliance with the
covenants of its $75 million credit facility through December 28,
1996 and amended covenants prospectively to enhance the Company's
financial flexibility.
President and Chief Executive Officer, Rakesh K. Kaul stated,
"We have taken a number of key actions in recent months to
strengthen the Company's capital base and to set the stage for
improved results from operations. These actions consisted of cost
reductions, consolidation of fulfillment operations, the
negotiation of waivers and new covenants with our lender group
and the capital commitment from Richemont."
Mr. Kaul continued: "We are pleased with the improving
performance of our specialty catalogs. Continuing catalogs
reached record sales in December and were profitable at the EBIT
line for the month, excluding certain reserve charges, and
reflect continued trend-line improvement. Overall demand for
continuing catalogs for the month of December, 1996 increased 16%
over the same period a year ago, while 1996 year-end inventory
decreased by $12 million from the same period last year."
For the fourth quarter of 1996, Hanover Direct reported
revenues of $197.9 million, a decrease of $23.3 million from the
comparable period a year earlier. Revenues from continuing
catalogs increased slightly from $175.7 million in the fourth
quarter of 1995 to $177.7 million in the fourth quarter of 1996.
The net loss for the 1996 fourth quarter was ($53.5) million, or
($0.37) per common share, compared to a net loss of ($8.0)
million, or ($0.09) per common share, in the fourth quarter of
1995. Results for the 1996 fourth quarterreflect special charges
of $36.4 million before tax. These charges include a provision
for facility closings, the write off of certain goodwill as well
as the writedown of other long lived assets and severance
expenses incurred in connection with the organizational
restructuring of the business announced in December, 1996. These
special charges are primarily non-cash in nature. Excluding the
special fourth quarter charges, the remaining operating losses
are primarily attributable to valuation adjustments for working
capital items plus accruals for certain costs to be incurred in
facility closings.
For the full year 1996, Hanover Direct reported revenues of
$700.3 million, compared to revenues of $749.8 million for full
year 1995. Revenues from continuing catalogs increased $13.5
million to $597.5 million for the full year from $584.3 million
for the prior year. The net loss before an extraordinary item for
1996 was ($103.9) million, or ($0.93) per common share, compared
to a net loss before an extraordinary item of ($28.2) million, or
($0.30) per common share, for 1995. The extraordinary items were
charges of ($1.1) million, or ($0.01) per common share, in 1996,
and ($1.8) million, or ($0.02) per common share, in 1995, both
relating to early extinguishment of debt. After giving effect to
the extraordinary items for both periods, the net loss for 1996
was ($105.0) million, or ($0.94) per common share, compared to a
net loss of ($30.0) million, or ($0.32) per common share, for
1995. The results for the fourth quarter and full year 1996 are
based on 144,667,953 and 111,441,247 weighted average shares
outstanding, respectively, compared to 93,477,832 and 93,029,816
weighted average shares outstanding in the comparable periods in
1995.
Hanover announced that it has reached a definitive agreement
with Richemont, an affiliate of NAR, Hanover's majority
shareholder, under which Richemont would act as a standby
purchaser in connection with a $50 million rights offering to be
conducted by Hanover Direct. The Company intends to commence the
rights offering as soon as practicable following regulatory
clearance. This capital commitment follows a $30 million letter
of credit facility which was obtained from Richemont in December,
1996.
Hanover also announced that two senior Richemont executives,
Mr. Jan du Plessis, Group Finance Director, and Mr. Howard M.S.
Tanner, Executive Director, were named to Hanover's Board of
Directors. In addition, they will also join the Executive
Committee. Mr. du Plessis will also join the Audit Committee of
the Board. Hanover announced that it is intended that a third
Richemont representative will join the Board at the next annual
meeting. The new Board members will fill vacancies created by
recent resignations including that of Mr. Jeffrey R. Laikind, who
graciously agreed to resign to make way for the Richemont
executives.
Jan du Plessis, Richemont's Group Finance Director, expressed
his appreciation to Mr. Laikind for his contribution to Hanover
and stated that Richemont looked forward to taking an active role
in Hanover's affairs.
Richemont is a Swiss-based group with interests in subsidiary
companies primarily in the fields of luxury goods and tobacco. In
its latest financial year ending March 31, 1996, Richemont
reported a consolidated operating profit of $1.246 billion on
consolidated sales of $6.7 billion. Richemont has a current
market capitalization of $7.7 billion, making it the tenth
largest company quoted on the Swiss Stock Exchange.
Richemont's tobacco interests are held through Rothmans
International. Richemont's interests in the luxury goods industry
are held through the Vendome Luxury Group, which owns a portfolio
of well-known international brands including Cartier, Alfred
Dunhill, Montblanc, Piaget and Baume & Mercier.
Hanover announced that the Company has begun to successfully
implement its previously announced operating plan, which is
intended to cut operating costs by at least $50 million. The
Company plans to adopt additional measures with the objective of
further reducing costs beyond the $50 million target. The
additional reductions identified to date consist primarily of
consolidation of certain operations into its Home Fashion Center
in Roanoke, VA, which is now operating at its targeted levels of
throughput and productivity. "When these efforts are
completed, I believe Hanover Direct will be operating profitably
at the EBIT level and will generate positive cash flow from
operations," Mr. Kaul stated.
Hanover Direct, Inc. is a leading direct specialty retailer
that markets, via a portfolio of branded specialty catalogs, home
fashions, general merchandise, men's and women's apparel and
gifts. The Home Fashions - Mid Market strategic business unit
includes Domestications, a leading specialty home textiles
catalog. The Home Fashions - Upscale group includes The Company
Store, a direct marketer of down comforters and other down and
related products for the home, and Kitchen & Home, an upscale
kitchen and home products catalog. The general merchandise group
includes Improvements, a do- it-yourself home improvements
catalog, The Safety Zone, a direct marketer of safety, prevention
and protection products, and Colonial Garden Kitchens, featuring
work saving and lifestyle enhancing items for the kitchen and
home. The Women's Apparel group includes Silhouettes, featuring
everyday, workout, special occasion and career fashions for
larger sized women and Tweeds, the European- inspired women's
fashion catalog.
The Men's Apparel group includes International Male, offering
unique men's fashions with an international flair, Austad's, a
direct marketer of golf equipment, apparel, and accessories, and
Undergear, a leader in activewear, workout wear and fashion
underwear for men. The Gifts group includes Gump's By Mail, a
leading upscale catalog of luxury gifts, and Gump's a leading
retail store based in San Francisco. - table to follow -
Hanover Direct Inc.
Consolidated Operating
Summary
(in thousands except per share data and
number of shares)
13 Weeks Ended
52 Weeks
Ended
Dec. 28, Dec.
30, Dec. 28,
Dec. 30,
1996 1995
1996
1995
Revenues $197,860
$221,227 $700,314 $749,767
Operating costs and expenses
Cost of sales and
operating expenses 134,854
142,508 479,155 483,493
Write-down of inventory
of discontinued catalogs --
4,270 1,100 8,580
Special Charges 36,424
1,033 36,724 1,563 Selling
expenses 52,773 61,406
195,032 205,618 General and
administrative
expenses 22,201
15,437 70,608 64,112
Depreciation and
amortization 2,855
3,016 12,192 9,020
Income (loss) from
operations (51,247)
(6,443) (94,497)
(22,619)
Interest expense, net (2,092)
(1,370) (8,858) (5,050) Interest
income 122 101
460 519
Income (loss) before
income taxes (53,217)
(7,712) (102,895)
(27,150)
Income tax provision (250)
(300) (1,000) (1,003)
Net income (loss) before
extraordinary item (53,467)
(8,012) (103,895)
(28,153)
Extraordinary loss - debt
refinancing costs --
-- (1,134)
(1,837)
Net income (loss) (53,467)
(8,012) (105,029) (29,990)
Preferred stock dividends (48)
(69) (225) (240)
Net income (loss) applicable
to common shareholders ($53,515)
($8,081) ($105,254)
($30,230)
Net income (loss) per share:
Net income (loss) before
extraordinary item ($0.37)
($0.09) ($0.93)
($0.30)
Extraordinary item - debt
refinancing costs --
-- (0.01)
(0.02)
Net income (loss) per share ($0.37)
($0.09) ($0.94) ($0.32)
Weighted average shares
outstanding 144,667,953
93,477,832 111,441,247
93,029,816
CONTACT: Hanover Direct, Inc. Larry J. Svoboda Sr. VP - Chief
Financial Officer (201) 319-3466 or Richemont Jan du Plessis
Group Finance Director 011 (41) (41) 710-3322