Central and South West Corporation and El
Paso Electric Company File Settlement of Litigation Related
to Terminated Merger Agreement
DALLAS, TX - July 16, 1997 - Central and South West
Corporation (NYSE: CSR) said that it and
have filed a settlement agreement to resolve pending litigation
stemming from the June 1995 termination of the proposed merger
between the two companies.
Under terms of the settlement, the two companies have agreed
to dismiss all pending claims in the litigation and to give a
mutual release from any potential claims related to the
terminated merger agreement or the pending litigation.
In addition, Central and South West will pay $35 million to El
Paso Electric, various of its creditor groups under El Paso
Electric's Fourth Amended Plan of Reorganization and its
attorneys.
As reported earlier, Bankruptcy Judge Larry E. Kelly, chief
judge of the United States Bankruptcy Court for the Western
District of Texas, Austin Division, issued an interim order in
April 1997 finding that Central and South West owed El Paso
Electric a $25 million termination fee under the termination
provisions of the companies' merger agreement.
The judge also ruled that Central and South West might owe
"interest- carry" costs, which El Paso Electric alleged
to be approximately $18 million.
Judge Kelly's interim order will be vacated as a result of the
settlement.
In the first quarter of 1997, Central and South West recorded
a charge to earnings for the $25 million obligation to El Paso
Electric. The company said it would recognize the additional $10
million when it reports results for the second quarter of 1997.
Background and additional information about the litigation
with El Paso Electric can be found in Central and South West's
Annual Report on Form 10-K for the period ended December 31,
1996, and the corporation's Quarterly Report on Form 10-Q for the
period ended March 31, 1997.
Central and South West Corporation is a public utility holding
company based in Dallas. Central and South West owns four
electric operating subsidiaries in the United States, a regional
electricity company in the United Kingdom, and non-utility
subsidiaries involved in energy-related investments,
telecommunications, energy efficiency and financial transactions.
SOURCE Central and South West Corporation /CONTACT: News media
contact: Gerald R. Hunter, manager of external communications,
214-777-1165, or Financial community contact: Becky Hall,
director of investor relations, 214-777-1277, both of Central and
South West Corporation/
Galey & Lord Reports Results For Third
Quarter Of Fi sc 1997
GREENSBORO, N.C., July 16, 1997 - Galey & Lord, Inc.
(NYSE: GNL) today announced record net sales of $135.1 million
for the June quarter of 1997 (third quarter of fiscal 1997) as
compared to net sales of $115.4 million for the June quarter of
1996. Net income for the third quarter of fiscal 1997 was $4.2
million or $.35 per common share. The Company commented that net
income for the third quarter was adversely impacted by a $2.0
million pre-tax or $.10 per share after-tax bad debt reserve
taken as a result of a major home fabrics customer [Silas Creek,
et al.] filing for bankruptcy protection during the quarter.
Excluding this charge, net income for the third quarter would
have been a record $5.4 million or $.45 per common share as
compared to net income of $4.1 million or $.34 per common share
for the same period last year.
The Company reported that for the first nine months of fiscal
1997, net sales were $375.5 million as compared to $301.0 million
for the first nine months of fiscal 1996 or an increase of
25%.Net income for the first nine months of fiscal 1997 was $11.5
million or $.95 per common share as compared to $5.9 million
or$.49 per common share for the first nine months of fiscal 1996.
The current year included the $2.0 million pre-tax or $.10 per
common share after-tax bad debt reserve. The year-ago period
included a $1.6 million pre-tax or $.08 per share after-tax
charge for the write-off of fees related to the cancellation of a
proposed merger with Graniteville Company, a subsidiary of Triarc
Companies, Inc.
The Company announced that its order backlog on June 28, 1997
was $139 million, a 51% increase from the prior year backlog of
$92 million. Apparel fabrics backlog was up 71% and continues to
be at record seasonal levels. Home fabrics order backlog was down
32% from the prior year primarily due to the bankruptcy of the
customer mentioned above. The Company continues to sell to the
home fabrics customer who filed for bankruptcy protection and who
is now operating as a debtor-in-possession. However, Galey &
Lord now books orders for that customer only upon receipt of cash
deposits.
Arthur C. Wiener, Chairman and CEO said, "I am pleased
with the record sales and earnings for the quarter, although I am
disappointed that the bad debt reserve partially offset the
earnings. The bad debt reserve was the largest such reserve taken
in the Company's history." Mr. Wiener further commented
that, "I am extremely pleased with the continued strong
apparel backlog and the progress made during the quarter of
increasing the G&L Service Company, N. A. customer
base."
Galey & Lord is a leading manufacturer of high-quality
woven cotton and cotton-blended apparel fabrics, sold principally
to manufacturers of sportswear and commercial uniforms. The
Company also manufactures fabrics used in home furnishings,
including comforters, bedspreads and curtains. In June 1996, the
Company began offering finished garments to its branded apparel
customers through G&L Service Company, North America, Inc.
This press release contains statements which constitute
forward- looking statements within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Those statements
include statements regarding the intent, belief or current
expectations of the Company and its management team. Prospective
investors are cautioned that any such forward-looking statements
are not guarantees of future performance and involve risks and
uncertainties, and that actual results may differ materially from
those projected in the forward-looking statements. Such risks and
uncertainties include, among other things, competitive and
economic factors in the textile, apparel and home furnishings
markets, raw materials and other costs, weather-related delays,
general economic conditions and other risks and uncertainties
that may be detailed, from time-to-time, in Galey & Lord's
reports filed with the Securities and Exchange Commission.
GALEY & LORD, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands except per share data)
Three Months Ended Nine
Months Ended
June 28, June 29, June
28, June 29,
1997 1996 1997
1996
Net sales $135,113 $115,437 $375,470
$300,965
Cost of sales 118,839 102,042 332,766
270,265
Gross profit 16,274 13,395 42,704
30,700
Selling, general and
administrative expenses 5,958 3,616 13,503
10,102
Amortization of goodwill 421 321 1,258
879
Operating income 9,895 9,458 27,943
19,719
Interest expense 3,112 2,819 9,225
8,509
Write-off of merger costs
-- -- -- 1,600
Income before income taxes 6,783 6,639 18,718
9,610
Income tax expense (benefit)
Current 2,765 1,616 7,003
2,233
Deferred (166) 972 209
1,467
Net income $4,184 $4,051 $11,506
$5,910
Net income per common share:
Primary:
Average common shares
outstanding 12,055 11,889 11,990
11,942
Net income per common share -
primary $ .35 $ .34 $ .96
$ .49
Fully Diluted:
Average common shares
outstanding 12,107 11,889 12,095
11,949
Net income per common share -
fully diluted $ .35 $ .34 $ .95
$ .49
SELECTED SEGMENT OPERATING RESULTS
(Dollar amounts in millions)
Three Months Ended Nine
Months Ended
06/28/97 06/29/96 06/28/97
06/29/96
Net Sales Per Segment
Apparel fabrics $ 124.7 $102.4 $348.3
$266.6
Home fabrics 10.4 13.0 27.2
34.4
Total $ 135.1 $115.4 $375.5
$301.0
Operating Income (Loss) Per Segment
Apparel fabrics $ 11.6 $ 10.5 $ 29.6
$ 20.4
% of Net Sales 9.3% 10.2% 8.5%
7.6%
Home fabrics $ (1.7) $ (1.0) $ (1.7)
$ (.7)
% of Net Sales (16.0)% (7.7)%
(6.3)% (1.9)%
Total $ 9.9 $ 9.5 $ 27.9
$ 19.7
% of Net Sales 7.3% 8.2% 7.4%
6.5%
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
JUNE 28, JUNE 29,
SEPTEMBER 28,
1997 1996
1996
(Unaudited) (Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 3,040 $ 602 $
3,799
Trade accounts receivable 86,416 87,388
74,180
Sundry notes and accounts
receivable 191 116
164
Inventories 82,782 78,729
76,934
Deferred income taxes 602 1,769
404
Prepaid expenses and other current
assets 4,048 733
1,853
Total current assets 177,079 169,337
157,334
Property, plant and equipment,
at cost 184,362 158,950
162,199
Less accumulated depreciation
and amortization (64,436) (52,642)
(55,178)
119,926 106,308
107,021
Deferred charges 895 1,173
1,055
Intangibles 38,372 39,558
39,466
$336,272 $316,376
$304,876
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of
long-term debt $ 13,318 $ 13,620 $
13,506
Trade accounts payable 22,252 20,837
20,957
Accrued salaries and
employee benefits 8,382 8,820
10,766
Accrued liabilities 3,211 4,289
3,311
Income taxes payable 2,398 2,121
1,115
Total current liabilities 49,561 49,687
49,655
Commitments
Long-term debt 167,866 164,009
149,265
Other long-term liabilities 84 162
143
Deferred income taxes 16,575 15,467
16,168
Stockholders' equity:
Common stock 120 120
120
Contributed capital in
excess of par value 35,722 34,429
34,687
Retained earnings 68,395 53,321
56,889
Treasury stock, at cost (2,051) (819)
(2,051)
Total stockholders' equity 102,186 87,051
89,645
$ 336,272 $ 316,376 $
304,876
CONSOLIDATED STATEMENT OF CASH FLOWS
(Amounts in thousands)
Nine Months
Ended
June 28,
June 29,
1997 1996
Cash flows from operating activities:
Net income $ 11,506 $
5,910
Adjustments to reconcile net income to
net cash provided by (used in) operating activities:
Depreciation of property, plant and
equipment 10,028
7,557
Amortization of intangible assets 1,258
879
Amortization of deferred charges 224
146
Deferred income taxes 209
1,467
Non-cash compensation 522
--
(Gain)/loss on disposals of property,
plant and equipment 122
(2)
Changes in assets and liabilities
(net of acquisition):
(Increase)/decrease in accounts
receivable - net (12,236)
(305)
(Increase)/decrease in
sundry notes & accounts receivable (27)
53
(Increase)/decrease in inventories (5,848)
7,503
(Increase)/decrease in prepaid
expenses and other current assets (2,195)
(70)
(Decrease)/increase in accounts
payable - trade 1,295
2,272
(Decrease)/increase in accrued
liabilities (3,205)
(2,634)
(Decrease)/increase in income
taxes payable 1,283
3,596
Net cash provided by (used in)
operating activities 2,936
26,372
Cash flows from investing activities:
Acquisition of business - net
of cash acquired
-- (22,371)
Property, plant and equipment expenditures (23,537)
(9,484)
Proceeds from sale of property, plant
and equipment 1,202
1,088
Other (163)
(57)
Net cash provided by (used in) investing
activities (22,498)
(30,824)
Cash flow from financing activities:
Increase in revolving line of credit 30,800
12,800
Principal payments on long-term debt (12,387)
(10,930)
Net proceeds from issuance of common
stock 513
14
Purchase of treasury stock
- (752)
Payment of bank fees and loan costs (64)
(465)
Other (59)
(50)
Net cash provided by (used in) financing
activities 18,803
617
Net increase/(decrease) in cash and cash
equivalents (759)
(3,835)
Cash and cash equivalents at beginning
of period 3,799
4,437
Cash and cash equivalents at end of
period 3,040
602
SOURCE Galey & Lord, Inc./CONTACT: Arthur C. Wiener,
212-465-3000, or Michael R. Harmon, 10-665-3037, both of Galey
& Lord, Inc./
Hollywood Park Subsidiary Files
Reorganization Plan
INGLEWOOD, Calif., July 16, 1997 - Hollywood Park Inc.
(Nasdaq: HPRK) announced today that its subsidiary,
plan of reorganization in bankruptcy court yesterday.
Sunflower, which owns and operates the Woodlands Race Track in
Kansas City, Kan., filed for reorganization under Chapter 11 of
the Bankruptcy Code in May 1996.
The reorganization plan contemplates the sale of Sunflower's
property to the Wyandotte Indians of Oklahoma. Upon the
completion of the sale, the Wyandottes would place the land in
trust and plan to build a casino on the site.
Hollywood Park and a partner company, North America Sports
Management Inc. ("NORAM") of Florida, would then manage
the casino in return for 30 percent of the profit. Hollywood Park
and NORAM have signed a partnership agreement subject to approval
of the Sunflower reorganization plan.
Implementation of the Sunflower plan of reorganization is
subject to a variety of conditions, including approval by the
bankruptcy court, execution of a compact between the Wyandotte
Indians and the State of Kansas authorizing gaming at the
Woodlands (similar compacts have been entered into with other
Native Americans tribes in Kansas) and other regulatory approval.
Hollywood Park wrote off its investment in Sunflower in March
1996, taking a one-time, non-cash loss for the investment, and
has not included the results of Sunflower's operations in its
consolidated financial statements since then.
Hollywood Park Inc., headquartered in Inglewood, Calif., is a
gaming and entertainment holding company. It owns and operates
Hollywood Park Race Track, one of America's premier thoroughbred
racing facilities and site of the 1997 Breeders Cup(R); Turf
Paradise Inc., a premier thoroughbred race track in Phoenix,
Ariz.; Hollywood Park - Casino; and Boomtown casinos in Reno,
Nev., in Biloxi, Miss., and in New Orleans. The company owns and
leases the Radisson Crystal Park Hotel and Casino in Crystal
City, Calif. Hollywood Park Race Track and Hollywood Park -
Casino are situated on 378 acres near Los Angeles International
Airport.
For more information on Hollywood Park Inc. by facsimile at no
cost, call 1-800-PRO-INFO and enter company code HPRK.
The Private Securities Litigation Reform Act of 1995 provides
a "safe harbor "for forward-looking statements. This
news release includes statements that are forward-looking, such
as references to plans for the reorganization of Sunflower Racing
Inc. Forward- looking statements involve important risks
and uncertainties that could significantly affect anticipated
results in the future and, accordingly, such results may differ
from those expressed in forward-looking statements made by or on
behalf of Hollywood Park Inc. Among the uncertain factors in this
instance would he the approval of the reorganization plan. For
more information on other potential factors that could affect the
Hollywood Park Inc.'s financial results, please review the
company's filings with the Securities and Exchange Commission,
including the company's annual report on Form 1O-K and the
company's other filings with the SEC, including the company's
Joint Proxy/Prospectus dated Sept. 20, 1996.
SOURCE Hollywood Park Inc. /CONTACT: R.D. Hubbard, Chairman
and CEO or G. Michael Finnigan, President, Sports and
Entertainment and CFO of Hollywood Park Inc., 310-419-1539; or
David Lawton, General Information or Steven Seiler, Media,
310-442-0599, or Kathy Brunson, Investor contact, 312-266-7800,
or Sue Dooley, Investor contact, 415-986-1591, all of Financial
Relations Board/
WRT Emerges From Bankruptcy DLB/Wexford Own
Majority Interest
OKLAHOMA CITY, July 16, 1997 - DLB Oil & Gas, Inc.
(Nasdaq: DLBI) today announced consummation of the plan of
reorganization for WRT Energy
Corporation, of which WRT, DLB and Wexford Management LLC on
behalf of its affiliated investment funds were co-proponents.
WRT Energy Corporation (WRT) is now a Delaware corporation and
will have a total of 2O.O4 million shares(CUSIP.92931K-40-3)
issued and outstanding, DLB Oil and Gas, Inc. currently owns
10.35 million shares. Wexford Management LLC presently owns 1.84
million shares. An additional 1.41 million shares, currently in
escrow, will be distributed upon resolution of certain post
closing matters.
WRT owns interests in 19 fields in south Louisiana and
controls operations on essentially 100% of its production. As of
December 31, 1996, WRT proved reserves, as estimated by
Netherland, Sewell and Associates, Inc., totaled approximately 28
million barrels of oil equivalent.
DLB Oil & Gas, Inc. is an Oklahoma City-based independent
energy company engaged primarily in oil and gas exploration,
development and production, and in the acquisition of producing
properties. The Company's common stock trades under the symbol
DLBI.
SOURCE DLB Oil & Gas, Inc. /CONTACT: Fred Standefer, Vice
President Corporate Development, 405-848-8808/