Ugly Duckling Corp. to Purchase Secured Bank Debt of name="First">First Merchants Acceptance Corp.
PHOENIX, AZ --July 17, 1997-- Ugly Duckling Corp.
(Nasdaq/NM:UGLY) Thursday announced that it has entered into an
agreement in principle with the senior bank group of href="chap11.firstmerchants.html">First Merchants Acceptance
Corp. (Nasdaq/NM:FMACE) to purchase the secured debt held by
such group.
The debt totals approximately $103 million. FMACE filed for
reorganization under Chapter 11 of the federal Bankruptcy Code on
July 11. In connection with the bankruptcy proceedings, Ugly
Duckling, which owns approximately 2 1/2% of FMACE's common stock
with a cost basis of $1.5 million, agreed last week to provide up
to $10 million of "debtor in possession" financing to
FMACE.
The more significant terms of the proposed purchase of senior
debt provide, among other things, for (1) purchase of the debt at
a 10% discount of the outstanding principal amount; (2) six-month
financing by the bank group to Ugly Duckling for the purchase,
with interest accruing at LIBOR plus 2%, and an up-front payment
by Ugly Duckling to the bank group equal to 20% of the purchase
price; and (3) issuance of stock warrants to the bank group to
purchase up to 500,000 shares of Ugly Duckling's common stock at
an exercise price of $20 per share over a 30-month term and
subject to a call feature by the company at $27.
The purchase is subject to certain conditions, including, but
not limited to, Bankruptcy Court approval, unless waived by the
bank group, and execution of definitive documents.
With headquarters in Phoenix, Ugly Duckling operates the
largest publicly held chain of "buy here-pay here" used
car dealerships in the United States and underwrites, finances
and services retail installment contracts generated from the sale
of used cars by its dealerships and by third-party, used-car
dealerships located in selected markets throughout the country.
With headquarters in Deerfield, Ill., FMACE is a national
specialty finance company, primarily engaged in financing the
purchase of used automobiles by consumers who have limited access
to traditional sources of credit. -0-
This news release includes statements that may constitute
forward-looking statements, usually containing the words
"believe," "estimate," "project,"
"expect" or similar expressions. These statements are
made pursuant to the safe-harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements inherently involve risks and uncertainties that would
cause actual results to differ materially from the
forward-looking statements. By making these forward-looking
statements, the company undertakes no obligation to update these
statements for revisions or changes after the date of this
release. Factors that could cause or contribute to such
differences include, but are not limited to, factors detailed in
the section titled "Risk Factors" in the company's
prospectus, dated June 24, 1997, in the sections titled
"Factors That May Affect Future Stock Performance" and
elsewhere in the company's most recent reports on Form 10-K/A and
Form 10-Q, and in Ugly Duckling's other Securities and Exchange
Commission filings.
CONTACT: Ugly Duckling Corp. Steven T. Darak, 602/852-6600 or
Silverman Heller Associates Eugene Heller/Lori Parks,
310/208-2550
Maytag's Second Quarter Sales Up Nearly 8
Percent
NEWTON, Iowa, July 17, 1997 - Maytag's (NYSE: MYG) sales in
the second quarter of this year rose 7.9 percent over the second
quarter of 1996, while net income was off slightly from the year-
earlier period.
Consolidated sales in the quarter increased to $814.5 million
and included $26.3 million in sales from Maytag's China joint
venture formed last fall. Sales were $754.6 million in last
year's second period.
Operating income was $88.4 million in the quarter, up 8
percent from $81.8 million a year ago. Net income was $43.8
million (45 cents a share), compared to last year's second
quarter record of $44.3 million (43 cents a share).
Discussing the results, Maytag Chairman and Chief Executive
Officer Leonard A. Hadley said, "Sales of Hoover brand floor
care products and Dixie-Narco vending equipment continued to be
strong in the second quarter, and Maytag's commercial laundry
equipment business benefited from our new high-efficiency,
horizontal-axiswasher. Sales were up for Maytag International,
which handles export sales and licensing agreements, and our
China joint venture had another successful quarter.
"Major appliances, our largest product category, posted a
slight sales increase for the quarter in an intensely competitive
business environment. Sales of the new Maytag and Jenn-Air brand
refrigerators were exceptionally strong. Maytag laundry equipment
and dishwashers, plus Magic Chef cooking appliances, also
experienced quarterly gains in unit sales. We noted some weakness
in other branded product categories and in private label sales.
"As expected, operating income for major home appliances
was somewhat depressed by costs associated with the initial
production of our new products, aggressive merchandising programs
and added costs involving our recently established regional
product distribution centers.
"Net income was impacted by higher interest expense in
this year's second quarter, compared to the second quarter of
1996.
"Looking ahead, we continue to believe 1997 will be
another good year for Maytag. Our new products and models should
help generate increased sales in the second half of this year,
and some costs associated with the new product initiatives will
decrease."
Maytag's North American home appliance segment (major
appliances and floor care products) reported record second
quarter sales of $724.6 million and operating income of $84.6
million. A year ago, second quarter sales were $709.5 million and
operating income was $85.2 million.
Dixie-Narco's vending equipment sales rose to $63.7 million,
versus $45.1 million a year ago. Operating income was $7.7
million, compared to $3 million in the second quarter of 1997
when the company experienced production-related problems.
Maytag's China joint venture with Hefei Rongshida reported
second quarter sales of $26.3 million and operating income of
$2.6 million.
First Half 1997
Maytag's consolidated sales in the first six months of this
year were $1.607 billion, up 8.2 percent from $1.486 billion in
last year's first half. Operating income was $164.9 million,
versus $118.5 million last year after a $40 million restructuring
charge.
Net income in the first half of 1997 was $82.3 million (84
cents a share), compared to $60.5 million (58 cents a share).
Excluding the restructuring charge, last year's first half net
income was $84.9 million (82 cents a share).
Maytag's North American home appliance segment reported first
half sales of $1.426 billion and operating income of $158.1
million. A year ago, first half sales were $1.392 billion and
operating income was $123.9 million, after the $40 million
restructuring charge.
Dixie-Narco's first half sales rose to $119.6 million, versus
$93.7 million a year ago. Operating income was $14.3 million,
compared to $8.9 million in the first half of last year.
Maytag's China joint venture had sales of $61.7 million in the
first half of this year and operating income of $6.1 million.
Discussing a current situation, Hadley noted that the
corporation faces unresolved issues involving a major customer, href="chap11.montgomeryward.html">Montgomery Ward, which
filed for Chapter 11 bankruptcy protection on July 7. At the time
of the filing, after adjustments which should be available in
bankruptcy, Maytag had accounts receivables due from Montgomery
Ward of approximately $39 million.
Hadley said, "It is too early to determine when and to
what extent the amount due from Montgomery Ward will be
recovered. Based on information currently available, we have a
reserve for the portion of this account we consider to be at
risk. We continue to evaluate this situation and are having
discussions with Montgomery Ward regarding our relationship as
they restructure their business, operating under the auspices of
bankruptcy court."
Maytag Corporation is a leading producer of major home
appliances, floor care products and vending equipment. Its
wellknown brands include Maytag, Jenn-Air, Hoover, Magic Chef and
Admiral. Dixie-Narco is the corporation's vending equipment
manufacturer. Maytag's joint venture in China is with Hefei
Rongshida, one of the country's leading washing machine
companies.
MAYTAG CORPORATION
SECOND QUARTER SALES AND EARNINGS RECONCILIATION
NET SALES (in thousands)
1997 1996 %Change
Home appliances
North America $ 724,569 $ 709,511 + 2.1
Asia 26,255 --
Vending equipment 63,717 45,108 + 41.3
Consolidated $ 814,541 $ 754,619 + 7.9
OPERATING INCOME (in thousands)
1997 1996 %Change
Home appliances
North America $ 84,596 $ 85,172 - 0.7
Asia 2,625 --
Vending equipment 7,739 3,017 +156.5
General corporate (6,574) (6,370)
Consolidated $ 88,386 $ 81,819 + 8.0
NET INCOME (in thousands)
1997 1996 %Change
Reported $ 43,783 $ 44,343 - 1.3
EARNINGS PER SHARE
1997 1996 %Change
Reported $ 0.45 $ 0.43 + 4.7
Weighted average shares
outstanding (thousands) 97,785 102,604 - 4.7
FIRST HALF SALES AND EARNINGS RECONCILIATION
NET SALES (in thousands)
1997 1996 %Change
Home appliances
North America $1,425,729 $1,392,161 + 2.4
Asia 61,708 --
Vending equipment 119,573 93,704 +27.6
Consolidated $1,607,010 $1,485,865 + 8.2
OPERATING INCOME (in thousands)
1997 1996 %Change
Home appliances
North America $ 158,103 $ 163,901 - 3.5
Restructuring charge -- (40,000)
Asia 6,149 --
Vending equipment 14,300 8,940 +60.0
General corporate (13,666) (14,321)
Consolidated $ 164,886 $ 118,520 +39.1
NET INCOME (in thousands)
1997 1996 %Change
Comparative $ 82,283 $ 84,861 - 3.0
Restructuring charge
(after-tax) -- (24,400)
Reported $ 82,283 $ 60,461 +36.1
EARNINGS PER SHARE
1997 1996 %Change
Comparative $ O.84 $ 0.82 + 2.4
Restructuring charge -- (0.24)
Reported $ 0.84 $ 0.58 +44.8
Weighted average shares
outstanding (thousands) 97,700 103,667 - 5.8
MAYTAG CORPORATION -
CONDENSED STATEMENTS OF CONSOLIDATED INCOME (UNAUDITED)
(In thousands, except per share data)
Second Quarter Ended Six
Months Ended
June 30 June
30
1997 1996 1997
1996
Net sales $ 814,541 $ 754,619 $1,607,010
$1,485,865
Cost of sales 590,096 547,404 1,173,083
1,076,223
Gross profit 224,445 207,215 433,927
409,642
Selling, general and
administrative expenses 136,059 125,396 269,041
251,122
Restructuring charge
-- -- -- 40,000
Operating income 88,386 81,819 164,886
118,520
Interest expense (14,431) (10,458) (29,142)
(21,360)
Other - net ( 1,601) 891 478
1,955
Income before
income taxes and
minority interest 72,354 72,252 136,222
99,115
Income taxes 27,728 27,909 51,872
38,654
Income before
minority interest 44,626 44,343 84,350
60,461
Minority interest (843) -- (2,067)
--
Net income $ 43,783 $ 44,343 $ 82,283
$ 60,461
Earnings per common share:
Net income $ 0.45 $ 0.43 $ 0.84
$ 0.58
Weighted average shares
outstanding 97,785 102,604 97,700
103,667
MAYTAG CORPORATION -
CONDENSED STATEMENTS OF CONSOLIDATED FINANCIAL CONDITION
(In thousands)
June 30
Dec. 31
1997
1996
(unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 33,770
$ 27,543
Accounts receivable - net 511,328
462,882
Inventories 366,400
327,136
Deferred income taxes 30,266
30,266
Other current assets 45,908
57,132
Total current assets 987,672
904,959
Noncurrent assets 555,635
573,096
Property, plant and equipment 894,125
851,885
Total assets $2,437,432
$2,329,940
LIABILITIES AND SHAREOWNERS' EQUITY
Current liabilities
Accounts payable and accrued expenses $ 448,736
$ 455,435
Notes payable and
current maturities of long-term debt 162,417
114,576
Total current liabilities 611,153
570,011
Deferred income taxes 27,115
27,012
Long-term debt 479,100
488,537
Postretirement benefits other than pensions 451,536
447,415
Other noncurrent liabilities 157,694
152,998
Minority interest 72,044
69,977
Shareowners' equity 638,790
573,990
Total liabilities and shareowners' equity $2,437,432
$2,329,940
SOURCE Maytag Corporation/CONTACT: James G. Powell, Maytag
Communications, 515-791-8392, http://www.maytagcorp.com/
Barneys Has Use of Full $110 Million
Post-Petition Financing
NEW YORK, NY - July 17, 1997 - Barney's,
Inc. said today that it has received final Bankruptcy Court
approval for full use of $110 million in debtor-in-possession
facility that is being provided by a syndicate led by BankBoston
NA as administrative agent. The Company has begun operating under
the facility. The financing expires on August 3, 1998, the end of
the Company's fiscal 1998 year.
A Company spokesperson said, "The enhanced availability
and larger facility under the current DIP will provide comfort to
our vendors and enables us to operate our business consistent
with our fiscal 1998 business plan."
Barney's, Inc. and certain of its subsidiaries voluntarily
filed a petition of reorganization under Chapter 11 on January
10, 1996. Barneys employs approximately 1,750 in nine stores in
New York City and Manhasset, New York; Beverly Hills and Costa
Mesa, California; Chicago, Illinois; Chestnut Hills,
Massachusetts; Westport, Connecticut and Seattle, Washington; ten
outlet stores, corporate offices in New York and a distribution
center in Lyndhurst, New Jersey.
SOURCE Barney's, Inc./CONTACT: Sandra Sternberg or Ann Julsen,
both of Sitrick And Company, 310-788-2850/
El Paso Electric Company and Central and
South West Corporation Reach Settlement
EL PASO, Texas, July 17, 1997 -
El Paso Electric (AMEX: EE) ("EPE") announced today
the settlement of litigation with Central and South West
Corporation (NYSE: CSR) ("CSW") stemming from the 1993
failed merger between the two companies. Pursuant to the
settlement agreement, CSW will pay $35 million. Under the terms
of EPE's Fourth Amended Plan of Reorganization approved by the
Bankruptcy Court, the first $20 million from the CSW settlement
were assigned to EPE's former common and preferred shareholders
of record as of Feb. 12, 1996. The amount to be distributed to
former common equity holders is approximately 28 cents per share,
and the distribution to former preferred equity holders will be
pro rata based upon redemption prices. Distributions to former
common and preferred shareholders will be made under the
supervision of the CSW Litigation Settlement Advisor as appointed
by the Bankruptcy Court under EPE's Fourth Amended Plan of
Reorganization.
El Paso Electric, which emerged from Chapter 11 bankruptcy
protection in February, 1996, is an electric utility serving
approximately 281,000 retail customers in El Paso, Texas and
areas of the Rio Grande valley in west Texas and southern New
Mexico, as well as wholesale customers in southern California,
New Mexico, Texas and the Republic of Mexico.
SOURCE El Paso Electric Company/CONTACT: Media: Teresa Souza,
915-543-5823; Analysts: Leslie Beal, 915-543-2213, both of El
Paso Electric Company/
First Merchants Obtains Interim
Financing; Settlement with Bank Group Announced
DEERFIELD, Ill.--July 17, 1997--href="chap11.firstmerchants.html">First Merchants Acceptance
Corp. (NASDAQ: FMACE) announced that a debtor- in-possession
financing facility from Ugly Duckling Corp. ("UDC") was
approved today by the Delaware Federal Court where its Chapter 11
case is pending. The interim approval allows the Company to use a
$5 million line of credit. A final hearing on the full $10
million line of credit from UDC will be scheduled for August,
1997. The Company filed for protection under Chapter 11 of the
United States Bankruptcy Code on July 11, 1997.
At the hearing, there was also an announcement that UDC, the
Company and the Company's Bank Group had reached an agreement in
principle which, among other things, provides that UDC will buy
the Bank Group's position and that the Company will file a motion
to approve releases of the Bank Group and UDC which is
anticipated to be set for an August, 1997 hearing.
First Merchants is a national specialty financing company,
primarily engaged in financing the purchase of used automobiles
by consumers who have limited access to traditional sources of
credit. The Company acquires dealer-originated retail installment
contracts from franchised and independent automobile dealers and
financial institutions in 37 states.
CONTACT: First Merchants Acceptance Corp. Norman Smagley,
847/948-9300 or Amen & Associates Larry Parnell, 212/448-4257
Second Quarter Revenue Up Thirty Two Percent
for Reinhold Industries
SANTA FE SPRINGS, Calif., July 17, 1997 - Reinhold Industries,
Inc. of Santa Fe Springs, California, today announced results for
the second quarter and first six months of 1997.
The company reported revenues of $4.1 million, up 32% from
$3.1 million for the second quarter 1996. Net income for the
second quarter 1997 was $391 thousand (9.4% of sales), or $0.19
per share, compared to a net loss of $1.0 million for href="chap11.keene.html">Keene Corporation for the second
quarter of 1996.
For the first six months, revenues were $7.4 million, up 31%
from $5.6 million for the first six months of 1996. Net income
for the first six months of 1997 was $465 thousand (6.2% of
sales), or $0.23 per share, compared to a net loss of $2.3
million for Keene Corporation for the same l996 period. In
addition to higher revenues, backlog was up $2.2 million to $7.5
million from the end of 1996.
Reinhold Industries, Inc. is a manufacturer of custom advanced
composite components for the commercial aircraft seatback
industry, the defense industry, and other commercial industries.
Reinhold is the successor company to the Keene Corporation
which emerged from bankruptcy on July 31, 1996, the effective
date of the plan of reorganization.
SOURCE Reinhold Industries, Inc. /CONTACT: Judy Sanson of
Reinhold Industries, Inc., 562-944-3281/
Court Approves Sale of KIWI International
Air Lines' Assets To Kiwi International Holdings
NEWARK, N.J. July 17, 1997 - The sale of the assets of href="chap11.kiwi.html">KIWI International Air Lines, Inc. to
Kiwi International Holdings, Inc. was approved today in U.S.
Bankruptcy Court in Newark, NJ. The sale, valued at approximately
$16.5 million was approved after two days of hearings. The
acquisition of the assets include the KIWI name, goodwill,
employees, equipment, tickets and certain contractual
obligations. The new company will be a separate entity which will
not be subject to the bankruptcy proceedings of KIWI
International Air Lines, Inc.
"I know there was a collective sigh of relief from our
650 employees, who can now move ahead and help grow the
airline," said Jerry Murphy, president and CEO of KIWI.
"Throughout this whole process, Judge Gambardella and the
creditors showed a great desire to preserve jobs and ensure that
KIWI remains as the buffer against high fares in the markets we
serve. Our employees, vendors and the consumer wins in this
decision.
"The Chairman of Kiwi International Holdings, Dr. Edwards
has stated the public and employees will notice no immediate
changes in the airline's operations. It will be a seamless
transition with new financing and the ability to slowly expand.
On behalf of all KIWI employees and our customers, I want to
thank Dr. Edwards and Judge Gambardella for putting their faith
in KIWI. KIWI has operated for almost five years, and we are all
excited to move forward in the years ahead."
Kiwi International Holdings, Inc. was formed by Dr. Charles
Edwards, who through Edwards-Wasatch Enterprises provided the
debtor-in-possession financing for KIWI. Dr. Edwards is Chairman
of Kiwi International Holdings, and owns in excess of 75% of the
company.
KIWI serves Newark, Chicago, Las Vegas, Atlanta, Orlando, West
Palm Beach and San Juan. Its perfect flying record is supported
by pilots who average 23 years flying experience and mechanics
with 18 years experience. It is a member of the Air Transport
Association of America.
SOURCE KIWI International Air Lines, Inc. /CONTACT: Rob Kulat
of KIWI International Air Lines, Inc., 201- 645-8445/
CO: KIWI International Air Lines, Inc.; Kiwi International
Holdings ST: New Jersey IN: AIR SU: