Alliance Withdraws Red Ant Sale Motion
NEW YORK, NY - Aug. 14, 1997 - Alliance Entertainment Corp.
(OTC: AETTQ) reported today that it had withdrawn its motion with
regard to the sale of its Red Ant Records subsidiary to an
affiliate of Wasserstein Perella.
The Company said that the decision to withdraw its motion was
made primarily as a result of the Official Committee of Unsecured
Creditors' objection that the consideration to be paid for Red
Ant was inadequate. The Company confirmed that an alternate
proposal was presented at its Court hearing on August 13, 1997,
by Bust-It Records, an independent record label, to purchase Red
Ant for $2.2 million in cash. The proposal was not considered at
the hearing due to Bust-It's inability to demonstrate the
financial wherewithal to complete such a transaction.
As a result of the withdrawal of the motion to sell Red Ant,
the Company will likely be required to file for protection under
the U.S Bankruptcy Code for Red Ant and its affiliates on an
expedited basis unless an acceptable offer for the purchase of
Red Ant is received by the Company prior to such filing.
Alliance Entertainment Corp. is a fully integrated,
independent distributor of prerecorded music and related products
and a developer and marketer of new artist catalog proprietary
content in several genres. The Company employs approximately
1,300 people in the United Sates, Canada and the United Kingdom
and maintains corporate headquarters in New York and operations
headquarters in Coral Springs, Fla. Red Ant employs approximately
65 in its offices in Los Angeles and New York.
On July 14, 1997, Alliance Entertainment Corp. and 14 of its
subsidiaries voluntarily filed petitions to reorganize under
Chapter 11. Excluded from the original filing were certain
businesses in the Company's Proprietary Products Group, including
Castle Communications, the Company's U.K.-based catalog and re-
issue label; St. Clair Entertainment Group, its Canadian
subsidiary; and Red Ant Records.
Forward-looking statements herein are made pursuant to the
safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements can
generally be identified as such because the context of the
statement will include words such as the Company
"believes," "expects,"
"anticipates," or words of similar import. Similarly,
statements that describe the Company's future plans, objectives,
estimates or goals are forward-looking statements . There are
certain important factors that could cause results to differ
materially from those anticipated by forward-looking statements
made herein. Investors are cautioned that all forward-looking
statements involve risks and uncertainty.
SOURCE Alliance Entertainment Corp. /CONTACT: Rivian Bell or
Brenda Adrian of Sitrick And Company, Inc., 310-788-2850/
Grant Geophysical Announces Six Month and
Second Quarter Results; Voting Commences on Reorganization Plan
HOUSTON, TX - Aug. 14, 1997 - Grant
Geophysical, Inc. (Nasdaq: GRNTQ)announced that revenues for
the six months ended June 30, 1997 totaled $67.2 million compared
with $54.8 million for the comparable period in the prior year.
Operating income and operating cash flow for the six months ended
June 30, 1997 were $5.6 million and $11.2 million, respectively,
compared with $2.0 million and $7.0 million for the first six
months of 1996.
For the second quarter ended June 30, 1997 revenues totaled
$36.9 million compared with $26.9 million for the 1996 second
quarter. Operating income and operating cash flow for the quarter
ended June 30, 1997 were $3.5 million and $6.5 million,
respectively, compared with $955,000 and $3.6 million for the
first quarter of 1996.
The net loss for the 1997 first half was $137,000 or $.01 per
share compared with a net loss of $1,193,000 or $.09 per share
for the comparable period of 1996. The current year includes
$1,780,000 of charges incurred in connection with Grant
Geophysical's bankruptcy reorganization process. If these costs
are excluded, net income would be $1,643,000, equivalent to $.08
per share. There were no comparable reorganization charges in the
first six months of 1996.
For the second quarter, Grant had net income of $139,000 or
$.01 per share compared with a loss of $621,000or $.05 per share
for the second quarter in 1996. The current quarter includes
$787,000 of charges incurred in connection with Grant
Geophysical's bankruptcy reorganization process. If these costs
are excluded, net income would be $926,000, equivalent to $.04
per share. There were no comparable reorganization charges in the
1996 second quarter.
Worldwide, the Company operated 13 land and transition zone
seismic crews throughout the second quarter. Projects were
conducted in the US, Colombia, Bangladesh, Brazil and Ecuador
with all geographical areas contributing to the Company's
improved earnings and cash flow. In particular, crews in the
Colombia, Ecuador and US transition zone markets turned in strong
performances in the period. However, as a result of the
completion of certain contract work during the second quarter,
the Company anticipates that its revenues for the coming quarter
will decline from the most recent three month period. Both
Colombian crews completed their assignments in June, and one of
the crews will start a new project in August while the second
crew is not expected to restart operations until late in the
third quarter. In the US, one of the Company's transition zone
crews completed its work in early July and was reassigned to a
new project in August. The Company's Ecuadorian operations are
also expected to complete their existing projects during the
third quarter and will experience a short period of transition to
new contracts. Offsetting the contract completions, the Company's
newly mobilized Bangladesh transition zone crew began recording
in early July and a recently awarded project in Central America
is expected to be underway by the end of the coming quarter.
Third quarter operating income and operating cash flow will be
impacted by the expected reduction in revenues; however this
effect will be substantially mitigated since expenses related to
completion of the finished contracts including the associated
demobilization costs of the crews were accounted for in the
second quarter. The Company's backlog of work commitments is
approximately $54 million including work extending into early
1998.
Grant also said that it has mailed solicitation packages to
all unsecured creditors and preferred shareholders eligible to
vote on the Company's Seconded Amended Plan of Reorganization.
Under the plan, Elliott Associates L.P. of New York will pay
$47.5 million in cash and assume certain liabilities in exchange
for substantially all of Grant's assets. Votes on the plan must
be received no later than September 8th in order to be counted. A
hearing to confirm the plan is scheduled for September 12 in the
United States Bankruptcy Court for the District of Delaware.
Details regarding recoveries to creditors and preferred
stockholders under the plan are contained in the plan document
and accompanying disclosure statement. Plan materials and
information can be obtained by calling Grant Geophysical, Inc. at
800-390-5530 or Logan & Company at 201-798-9114.
This release contains forward-looking statements relating to
such matters as anticipated financial performance, business
prospects, potential reorganization plans and similar matters.
The Private Securities Litigation Reform Act of 1995 provides a
safe harbor for forward-looking statements. In order to comply
with the terms of the safe harbor, the Company notes that a
variety of factors could cause the Company's actual results and
experience to differ materially from the anticipated results or
other expectations expressed in the Company's forward-looking
statements. The risks and uncertainties that may affect the
operations, performance, development and results of the Company's
business include weather conditions, outcome of negotiations and
approval of reorganization plans, demand for seismic services in
general and specifically for the Company's services and other
risk factors identified in the Company's Annual Report on Form
10K and its Quarterly Reports on Form 10Q.
Grant Geophysical, Inc. and its subsidiaries and affiliates
provide land and transition zone seismic services in the United
States, Latin America and the Far East. The Company employs
approximately 2,500 people in its worldwide operations.
Grant Geophysical,
Inc.
Condensed Statement of
Operations For the
Period Ended June 30,
1997
(in Thousands, except shares and
per share amounts)
Six Months
Ended
Three
Months Ended
June 30,
1997
June
30, 1997
Revenues $67,169
$54,759 $36,873
$26,951
Expenses:
Direct Operating Costs 51,820
43,036 28,264
20,924
Other Operating Expenses 4,158
4,722 2,098
2,456
Depreciation and Amortization 5,589
4,986 2,978
2,616
Total Costs and Expenses 61,567
52,744 33,340
25,996
Operating Income 5,602
2,015 3,533
955
Interest Expense (net) (2,503)
(2,498) (1,116)
(1,176)
Other 215
(10) (80)
(97)
Reorganization Costs (1,780)
--- (787)
---
Net Income (Loss) Before Tax 1,534
(493) 1,550
(318)
Income Taxes 1,671
700 1,411
303
Net Income (Loss) (137)
(1,193) 139
(621)
Net Income (Loss) Per
Common Share ($0.01)
($0.09) $0.01
($0.05)
Weighted Average Common
Shares Outstanding 21,634,143
12,884,808 22,035,860
13,056,760
SOURCE Grant Geophysical, Inc./CONTACT: Larry E. Lenig, Jr.,
President, 281-647-5201, or Michael P. Keirnan, Chief Financial
Officer, 281-647-5203, both of Grant Geophysical, Inc./
Image Entertainment, Inc. Reports First
Quarter Results
CHATSWORTH, Calif., Aug. 14, 1997 - Image Entertainment, Inc.,
(Nasdaq: DISK), the largest licensee and distributor of optical
laserdisc programming in North America, today reported financial
results for its first quarter ended June 30, 1997.
Net sales for the June 1997 quarter decreased 15.9% to $16.9
million from $20.1 million for the June 1996 quarter. The Company
recorded an operating loss of $34,000 for the June 1997 quarter
versus operating income of $850,000 for the June 1996 quarter.
The Company recorded a net loss for the June 1997 quarter of
$191,000, or $.01 per share, versus net income of $606,000, or
$.04 per share, for the June 1996 quarter.
The financial difficulties experienced by several of the
Company's largest customers and thespeculation, anticipation and
uncertainty preceding and following the March 1997 launch of DVD
software has negatively affected theCompany's laserdisc sales. In
July 1997, Alliance Entertainment Corp., one of the largest
Independent distributors of prerecorded music and the Company's
second largest customer in fiscal 1997, and
merchandiser and new customer of the Company (for DVD product),
filed for protection under Chapter 11 Bankruptcy. Responding to
the current trend, the Company Increased its provision for slow-
moving laserdisc inventory by approximately $500,000 during the
June 1997 quarter.
Martin W. Greenwald, Image's President and Chief Executive
Officer, said "Revenues continue to be affected by declining
laserdisc hardware sales and the impact of DVD on our laserdisc
business market. We are addressing this revenue decline in a
number of ways. For example, we are diligently working to
expedite the release of a number of our exclusively licensed DVD
programs. We have scheduled and hope to release in excess of 20
DVD programs by the end of September. This group of 20 new DVD
titles compares dramatically to the two DVD titles Image had in
release during the June 30 quarter, the first quarter since DVD's
March launch. In addition, the Company is continuing to
aggressively pursue additional laserdisc rights such as the
August 8, 1997 exclusive laserdisc distribution agreement with
Warner Home Video referenced in the Company's June 1997 Form
10-Q. The Warner agreement presents a significant new revenue
stream for the Company and will definitely increase our laserdisc
market share. The Warner agreement should help narrow the gap in
lost revenues on the laserdisc front. Furthermore, the Warner
laserdisc deal, coupled with our aggressive fall DVD schedule,
should positively affect revenues on a go-forward basis. The
Warner laserdisc agreement and our DVD rights agreements add core
strength as we continue to adapt to a rapidly changing market
environment.
"After a run of 15 straight quarters of net earnings that
ended with the fourth quarter of fiscal 1997, we have now had two
quarters of losses. Yet, all things considered, not the least of
which is the long-running financial distress of the music
industry retailing sector - which includes some of the Company's
largest customers, I count Image as extremely fortunate to be
Weathering such an ugly economic storm so well. I believe we have
many significant opportunities ahead of us and that we are up for
the challenge. I will not be content until I can once again
report healthy revenue gains and a return to profitability."
Image Entertainment, Inc. is the largest licensee and
distributor of laserdiscs in North America, with the most
extensive library of titles in the Industry. Image has exclusive
laserdisc agreements with Disney's Buena Vista Home Video,
Twentieth Century Fox Home Entertainment, MGM Home Entertainment,
New Line Home Video, PolyGram Home Video. Orion Home Video, The
Voyager Company, Playboy Home Video, Hallmark Home Entertainment
and other suppliers. The Company also has exclusive DVD license
and distribution agreements with Playboy Home Video, Orion Home
Video and other suppliers.
To visit Image Entertainment on-line, please go to
http://www.image-entertainment.com.
This press release contains forward-looking statements
concerning a number of exclusive DVD programs the Company expects
to release by the end of September, a new exclusive laserdisc
distribution agreement narrowing the gap in lost laserdisc
revenues, new agreements positively affecting revenues on a go-
forward basis and the Company's desire to report revenue
increases and return to profitability. Actual results may differ
materially from the expectations contained herein. Additional
detailed information concerning a number of factors that could
cause the Company's actual results to differ materially from the
expectations contained herein is readily available, in the
Company's most recent Annual Report on Form 1O-K.
IMAGE
ENTERTAINMENT, INC.
CONSOLIDATED STATEMENTS
OF OPERATIONS
(unaudited)
For the Three Months Ended June
30, 1997 and 1996
l
9
9
7
1
9
9
6
NET SALES $16,902,000
100.0%$20,146,000
100.0%
OPERATING COSTS AND EXPENSES:
Cost of optical disc sales 14,049,000
83.1 15,981,000
79.3
Selling expenses 1,047,000
6.2 1,081,000
5.4
General and administrative
expenses 1,009,000
6.0 1,462,000
7.3
Amortization of production
costs 831,000
4.9 772,000
3.8
16,936,000
100.2
19,296,000
95.8
OPERATING INCOME (LOSS) (34,000)
(0.2) 850,000
4.2
OTHER EXPENSES (INCOME):
Interest expense 203,000
1.2 26,000
0.1
Interest Income (46,000)
(0.3) 95,000
(0.5)
157,000
0.9
(69,000)
(0.3)
INCOME (LOSS) BEFORE INCOME
TAXES (191,000)
(1.1) 919,000
4.6
INCOME TAXES ---
--- 313,000
1.6
NET INCOME (LOSS) $(191,000)
(1.1)% $6O6,000
3.0%
NET INCOME (LOSS) PER SHARE $(.01)
$.04
WEIGHTED AVERAGE SHARES OUTSTANDING:
Common shares 13,431,000
13,723,000 Common stock options
and warrants ---
2,310,000
13,431,000
16,033,000
The above consolidated statements of operations should be read
in conjunction with the Financial Statements and the Notes
thereto and Management's Discussion and Analysis of Financial
Condition and Results of Operations in the Company's June 30,
1997 Form 1O-Q.
SOURCE Image Entertainment, Inc. /CONTACT: Image contact:
Cheryl Lee, Esq., Chief Administrative Officer & General
Counsel, 818-407-9100, ext. 256, cleeimage- entertainment.com;
Investor Relations: Bryan Crane, Coffin Communications Group,
818- 789-0100/
Carson Pirie Scott & Co. Second
Quarter Operating Earnings Increase 35% to $0.23 Per Share
MILWAUKEE, WI - Aug. 14, 1997 - Carson Pirie Scott & Co.
(NYSE: CRP) today reported its second quarter and year to date
financial results. Stanton J. Bluestone, Chairman and Chief
Executive Officer of Carson Pirie Scott & Co., commented:
"I am pleased to report our ninth consecutive quarter of
improvement in operating earnings per share. A combination of
solid sales growth and diligent expense control generated the 35%
operating EPS gain in the quarter.
"Our top line grew 8.3% in the quarter by virtue of a
healthy 5.5% comparable store sales gain and the continued solid
performance from the new stores the Company added in 1996. Nearly
all merchandise categories contributed to our comparable store
sales growth. Feminine Apparel continued its brisk sales trend
with a 10% sales gain in the quarter and for the first half. In
addition, the Men's Better Sportswear area grew 32% in the
quarter with the largest sales increases in the American Designer
lines. Shoes and Home Textiles also posted above average sales
gains in the quarter.
"Our margin rate declined 40 basis points in the quarter.
The decline was in line with our expectations and is partially
due to a change in the mix of merchandise sold. Our expense rate
improved 1.4 percentage points moving from 31.8% in 1996 to 30.4%
in 1997 which more than offset the margin rate decline. The
expense rate improvement resulted from the spreading of fixed
expenses across a larger sales base and the absence of new store
preopening charges in the current quarter. These operating
improvements resulted in a 27% jump in EBITDA and a 35% operating
EPS increase.
"The second quarter results brought to a close a very
successful first half of 1997. Total sales increased 8.7% while
comparable store sales increased 4.7%. These strong sales results
combined with diligent management of expenses generated a 23%
increase in EBITDA and a 32% increase in operating EPS.
"I am cautiously optimistic about our prospects for the
remainder of the year. As we enter the second half, our inventory
is well positioned and the sales momentum in our core merchandise
categories is encouraging."
Carson Pirie Scott & Co., a major department store
retailer, operates 52 traditional department stores and 4
furniture stores:31 Carson Pirie Scott stores in greater Chicago,
Indiana and Minnesota; 13 Bergner's in central Illinois; and 12
Boston Stores in Wisconsin.
CARSON PIRIE SCOTT & CO. AND SUBSIDIARIES
Consolidated Statements of Operations
(dollars in thousands, except per share amounts)
Three Months Ended Six Months Ended Trailing
Twelve Months
Aug. 2, Aug. 3, Aug. 2, Aug. 3, Aug. 2,
Aug. 3,
1997 1996 1997 1996 1997
1996
Net sales $243,765 $224,986 $501,899 $461,755 $1,142,970
$1,075,460
Cost of
sales (154,268) (141,464) (322,023) (295,206) (726,897)
(685,434)
Selling,
general and
administrative
expenses (74,192) (71,470) (150,484) (142,710) (314,906)
(300,105)
EBITDA 15,305 12,052 29,392 23,839 101,167
89,921
Depreciation and
amortization
expense (5,003) (4,031) (10,050) (8,063) (17,508)
(13,285)
Other 91 (42) 151 (135) 473
35
Nonrecurring
items (3,645) 0 (4,162) 0 (4,162)
904
Income from
operations 6,748 7,979 15,331 15,641 79,970
77,575
Nonrecurring
items 0 0 0 12,065 (10,525)
5,230
Interest expense,
net (4,055) (3,391) (8,318) (7,135) (17,093)
(16,390)
Income before
income
taxes 2,693 4,588 7,013 20,571 52,352
66,415
Income tax
expense (1,066) (1,808) (2,777) (8,105) (20,772)
(26,445)
Net
income $1,627 $2,780 $4,236 $12,466 $31,580
$39,970
Shares
outstanding
(in 000's) 16,448 16,782 16,479 16,791 16,511
16,762
Net income
per share:
Operating $0.23 $0.17 $0.41 $0.31 $2.43
$2.12
Primary $0.10 $0.17 $0.26 $0.74 $1.91
$2.38
Fully
diluted $0.10 $0.17 $0.26 $0.74 $1.91
$2.38
Shares
outstanding
(in 000's) 16,509 16,736 16,509 16,736 16,667
17,218
Statistics:
Same-store
sales
increase 5.5% (0.4%) 4.7% 2.1% 3.3%
2.6%
Gross margin
rate 36.7% 37.1% 35.8% 36.1% 36.4%
36.3%
SG&A rate (30.4%) (31.8%) (30.0%) (30.9%) (27.6%)
(27.9%)
EBITDA rate 6.3% 5.4% 5.9% 5.2% 8.9%
8.4%
The Company provided the following highlights for the second
quarter results:
1997 Second Quarter 1996 Second
Quarter
Results Summary Results
Summary
($ in millions, except EPS)
Net Net Net
Net
Sales EBITDA Income EPS Sales EBITDA
Income EPS
Operating
results (a) $243.8 $15.3 $3.8 $0.23 $225.0 $12.1
$2.8 $0.17
Nonrecurring Item:
Year 2000
costs -- -- $2.2 ($0.13)
-- -- -- --
Total Company 243.8 15.3 1.626 0.1 225 12.1
2.8 0.17
(a) Excludes nonrecurring items.
Sales: Sales increased 8.3% to $243.8 million in the second
quarter of 1997 from the prior year's sales of $225.0 million.
Sales rose 5.5% on a comparable store basis.
EBITDA: Earnings before interest, taxes, depreciation,
amortization and other nonrecurring items ("EBITDA")
increased 27% to $15.3 million in 1997 from $12.1 million in
1996. The EBITDA rate for the second quarter increased
approximately 90 basis points from 5.4% in 1996 to 6.3% in 1997.
The EBITDA rate improvement resulted primarily from leveraging of
fixed expenses across a larger sales base.
Depreciation and amortization: The Company's depreciation and
amortization expense increased from $4.0 million in 1996 to $5.0
million in 1997. The $1.0 million increase resulted from the
higher fixed asset balances created through the Company's capital
expenditure program and new store openings being added to an
artificially low base due to fresh start accounting. The Company
is anticipating a similar dollar increase to depreciation and
amortization expense in each of the remaining quarters of 1997.
Interest Expense: Interest expense increased to $4.1 million
in 1997 from $3.4 million in 1996. The increase occurred because
the 1997 results do not include $0.5 million of interest income
recorded in 1996 on an investment in County Seat Holdings, Inc.
County Seat Holdings, Inc. filed for Chapter 11 bankruptcy
protection in the third quarter of 1996 and the Company sold its
investment in the first quarter of fiscal 1997.
Earnings per share ("EPS") results: Net income
excluding nonrecurring items increased $1.0 million in the
quarter versus the prior year second quarter. The improved EBITDA
performance was partially offset by higher depreciation and
interest charges. Operating EPS improved 35% from $0.17 to $0.23
per share. On a Total Company basis, EPS was $0.10 in 1997. The
$0.13 difference versus operating EPS of $0.23 related to Year
2000 computer system preparation costs which included a
previously disclosed $3.1 million write-down of the undepreciated
asset value of a mainframe computer in conjunction with its lease
termination.
The Company provided the following highlights for its year to
date financial results:
1997 First Half 1996 First
Half
Results Summary Results
Summary
($ in millions, except EPS)
Net Net Net
Net
Sales EBITDA Income EPS Sales EBITDA
Income EPS
Operating
results (a) $501.9 $29.4 $6.7 $0.41 $461.8 $23.8
$5.2 0.31
Nonrecurring Items:
Sale of marketable
securities
-- -- -- -- -- -- $9.0 0.53
Charitable
contribution
-- -- -- -- -- --($1.5)($0.09)
Write-off of loan fees
-- -- -- -- -- --($0.2)($0.01)
Year 2000 costs -- -- ($2.5)($0.15)
-- -- -- --
Total Company 501.9 29.4 4.2 0.26 461.8 23.8
12.5 0.74
(a) Excludes nonrecurring items.
Sales: Sales increased 8.7% to $501.9 million in the first
half of 1997 from the prior year's sales of $461.8 million. Sales
rose 4.7% on a comparable-store basis.
EBITDA: Earnings before interest, taxes, depreciation,
amortization and other nonrecurring items ("EBITDA")
increased 23% to $29.4 million in 1997 from $23.8 million in
1996. The EBITDA rate for the first half increased approximately
70 basis points from 5.2% in 1996 to 5.9% in 1997. The EBITDA
rate improvement resulted primarily from leveraging of fixed
expenses across a substantially larger sales base.
Depreciation and amortization: The Company's depreciation and
amortization expense increased from $8.1 million in 1996 to $10.1
million in 1997. The $2.0 million increase resulted from the
higher fixed asset balances created through the Company's capital
expenditure program and new store openings being added to an
artificially low base due to fresh start accounting.
Interest Expense: Interest expense increased to $8.3 million
in 1997 from $7.1 million in 1996. The increase occurred because
the 1997 results do not include $1.0 million of interest income
recorded in 1996 on an investment in County Seat Holdings, Inc.
County Seat Holdings, Inc. filed for Chapter 11 bankruptcy
protection in the third quarter of 1996 and the Company sold its
investment in the first quarter of fiscal 1997.
Earnings per share ("EPS") results: Net income
excluding nonrecurring items increased $1.5 million in the
current year first half versus the prior year. The improved
EBITDA performance was partially offset by higher depreciation
and interest charges. Operating EPS improved 32% from $0.31 to
$0.41 per share. On a Total Company basis, EPS was $0.26 in 1997.
The $0.15 difference versus operating EPS of $0.41 related to
Year 2000 computer system preparation costs which included a
previously disclosed $3.1 million write-down of the undepreciated
asset value of a mainframe computer in conjunction with its lease
termination.
Share Repurchase Program: During the second quarter, the
Company repurchased 94,300 shares of its common stock for $2.9
million under a January 1997 $20 million share repurchase
authorization. The Company repurchased 244,300 shares of its
common stock for $7.4 million in the first half of 1997.
CARSON PIRIE SCOTT & CO. AND SUBSIDIARIES
Consolidated Balance Sheets
(dollars in thousands)
August 2,
August 3,
Assets 1997
1996
Cash and cash equivalents $17,887
$25,946
Receivables, net 237,398
214,433
Inventories 198,502
186,587
Other current assets 19,630
19,701
Total current assets 473,417
446,667
Property and equipment, net 190,220
155,915
Net deferred tax assets 39,095
38,562
Other assets 10,785
22,840
$713,517
$663,984
Liabilities and Shareholders' Equity
Current maturities of long-term debt $2,765
$2,766
Accounts payable and accrued liabilities 163,064
150,898
Total current liabilities 165,829
153,664
Other liabilities 49,989
43,451
Accounts receivable securitization 93,300
99,000
Long-term debt, less current maturities 46,525
47,431
Total liabilities 355,643
343,546
Shareholders' equity:
Common stock and paid-in-capital 171,864
166,006
Retained earnings 186,010
154,432
Total shareholders' equity 357,874
320,438
$713,517
$663,984
Net Debt / Capitalization 25.8%
27.8%
Net Debt / Capitalization
(excluding A/R Securitization) 8.1%
7.0%
SOURCE Carson Pirie Scott & Co./CONTACT: Investors, James
L. Stoffel, V.P. - Treasurer, 414-278-5769, or Media, Edward P.
Carroll, Jr., Executive V.P. Marketing, 414-347-5340, both of
Carson Pirie Scott & Co./
Lax Bankruptcy Laws Mean Higher Costs for All American
WASHINGTON, DC - Aug. 14, 1997 - Flawed bankruptcy laws that
allow debtors to walk away from obligations they could repay are
costing American families about $300 a year in higher prices and
interest rates, says Mike McEneney, a bankruptcy expert at the
law firm of Morrison and Foerster.
"Responsible people who are struggling to work hard and
pay their bills are actually paying more because people filing
for bankruptcy are erasing more debt than necessary,"
McEneney said.
More than 1.2 million households, a record number, filed for
bankruptcy protection last year, leading to the elimination of
about $30 billion in debt.
But a recent study by the Credit Research Center at Purdue
University shows that many people who file for bankruptcy could
repay a substantial portion of their debts. And a June poll by
the National Consumers League showed that 76 percent of Americans
believe individuals should be required to repay what they can.
McEneney cautions that while bankruptcy may seem like an easy
escape from dunning telephone calls, it has lasting consequences.
Visa U.S.A. recently found that 80 percent of people who filed
for bankruptcy reported that credit was difficult to get
afterward. And the black mark of bankruptcy on a credit report
can make it difficult for an individual to rent an apartment or
even get a job.
"People should think long and hard before they file for
bankruptcy," McEneney said. "It should really be the
last resort."
If consumers are having financial trouble, McEneney advises,
they should contact a local non-profit credit counseling
organization, which usually can arrange a repayment plan. There
are thousands of such offices throughout the United States. But
too many Americans are not aware such help is available.
"Consumer credit counseling services can be very helpful,
and finding them is as easy as opening up the telephone
book," McEneney said.
If people ultimately decide to file for bankruptcy, it is
still important for them to get counseling, he said, noting that
in recent years, there has been an increase in the number of
repeat bankruptcy filings.
"One of the most troubling aspects about the current
bankruptcy system is that people learn nothing from it,"
said McEneney. "Individuals get their debts discharged but
they don't learn how to avoid financial difficulties in the
future."
Without changes in the bankruptcy system, McEneney said,
credit will become less available to people who need it.
"Banks already are tightening credit standards," he
said. "The people who will be hurt the most are moderate and
lower income individuals - the people who often are most in need
of credit. SOURCE Bankruptcy Issues Council
Dow Chemical Louisiana Breast Implant Trial:
Closing Arguments Begin On Thursday Morning, Reports Command
Trust Network
NEW ORLEANS, LA - Aug. 14, 1997 - As closing arguments begin
in the first class-action lawsuit against companies responsible
for breast implants, the evidence that has been presented clearly
shows that Dow Chemical is liable to the women of Louisiana for
injuries and illnesses caused by silicone breast implants
manufactured by its smaller subsidiary company, Dow Corning,
Command Trust Network announced today.
The trial, presided over by State District Court Judge Yada T.
Magee, began in March when Magee ruled that Dow Chemical be tried
for fraud, conspiracy, negligence, misrepresentation, and aiding
and abetting in the development of a harmful product. This trial
(Phase I) focuses only on Dow Chemical's conduct.
Originally slated to last 8 weeks, the trial has gone on for
over four months. Dow has repeatedly tried to deny the Louisiana
women their right to a trial in Louisiana, by requesting stays
and transfers which would have resulted in the trial being held
in Michigan (Dow Chemical's home state), rather than in
Louisiana.
The plaintiffs have presented internal confidential company
documents, test results, correspondence, and actual testimony of
former Dow Chemical employees. This evidence clearly establishes
Dow Chemical's responsibility for the injuries caused by silicone
breast implants.
The Evidence
- Dow Chemical controlled the quality of silicone breast
implants manufactured by Dow Corning.
-- It was Dow Chemical's responsibility to conduct critical
safety testing on the component parts used to produce implants.
When Dow Corning began selling implants in 1962, the company had
no toxicology
lab and relied on parent company Dow Chemical. Dr. V.K. Rowe,
chief Dow Chemical toxicologist, was put in charge of the safety
testing. This testing was never completed. The sparse testing
that was done revealed serious problems.
-- Dr. John Quast, a pathologist, admitted that Dow Chemical
conducted tests for Dow Corning on swollen human lymph nodes from
people with silicone medical devices, and that a Dow Chemical
scientist conducted
tests on examined human breast capsule tissue which showed
that silicone escaped from implants and traveled throughout the
body.
-- At the same time Dow Corning and Dow Chemical maintained
publicly that
silicone was inert thereby implying silicone breast implants
were safe, the two companies were developing products which
relied on the silicone's physiologically active properties. Dow
Corning Executive Meeting Minutes from 1967 quote a "joint
research agreement with the Dow Chemical Company pertaining to
certain silicone products ... and a
joint development agreement relating to the physiological
effects resulting from ingestion or injection ... of particular
physiologically active silicones."
The involvement of Dow Chemical in the development of Dow
Corning's silicone breast implants is apparent despite Dow
Chemical's repeated attempts to cover up serious safety concerns.
Should the jury find Dow Chemical responsible for injuries to
women with silicone breast implants, damages for individual
victims will be addressed in subsequent proceedings.
Thousands of suits have been filed against Dow Chemical. The
Dow companies initially agreed to settle the claims of the women
involved in this trial as part of a $4.2 billion national
settlement. Unlike other breast implant manufacturers, Dow
Corning and Dow Chemical pulled out of the settlement. Dow
Corning has since declared bankruptcy. The Louisiana case is the
third case to go to trial against the giant chemical company.
Juries in Nevada and Texas have found Dow Chemical guilty of
gross negligence and fraud.
Dow Chemical, in addition to being responsible for early
safety testing, owns 50% of Dow Corning and holds key positions
on the Dow Corning Board of Directors. Dow implants dominated the
market until FDA action resulted in their removal from the market
in 1992. Bristol-Myers Squibb, 3M, and Baxter Healthcare, three
other breast implant manufacturers, are scheduled to stand trial
in upcoming months as part of the Louisiana class-action.
SOURCE Command Trust Network /CONTACT: Linda Ricci,
202-822-5200, or pager, 888-769-2790, for the Command Trust
Network/
Edison Brothers Reschedules Confirmation
Hearing; Company Remains on Track to Emerge from Chapter 11
ST. LOUIS, MO - Aug. 14, 1997 - Edison
Brothers Stores Inc. announced today that its confirmation
hearing before the U.S. Bankruptcy Court has been rescheduled for
September 9, 1997, from August 14, 1997. The short postponement,
which should not affect Edison's plans to emerge from Chapter 11
early this fall, will allow the company additional time to
resolve outstanding claims by the Internal Revenue Service (IRS).
The IRS claims, which total approximately $40 million, involve
several different tax issues and are disputed by the company.
"While we would have preferred not to reschedule the
hearing, Edison has moved through the Chapter 11 process quickly,
and we feel confident that dedicating a few extra weeks to
negotiate this matter should facilitate the confirmation hearing
in September," said Alan Miller, Edison's chief executive
officer.
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, Precis and Wild Pair
footwear stores; and Shifty's alternative apparel, footwear and
accessories for teen boys and girls. With more than 1,600 stores
in the United States, Canada, Puerto Rico and the Virgin Islands,
Edison is one of the largest specialty retailers of apparel,
footwear and accessories in North America.
SOURCE Edison Brothers Stores Inc./CONTACT: David B. Cooper,
CFO, 314-331-6531, or Amy Calvin, Communications Director,
314-331-6588, both of Edison Brothers Stores/
Shop At Home Announces Bid to Acquire TV Stations from
KNOXVILLE, Tenn.--Aug. 14, 1997--Shop At Home Inc. (NASDAQ:
SATH) a diversified media company in the electronic interactive
home shopping and internet business, announced that it has
submitted a bid to acquire substantially all of the assets of
Global Broadcasting Systems Inc., which is currently in
bankruptcy proceedings in New York.
Global is the owner of full power television stations in San
Francisco and Raleigh-Durham and also has contractual rights to
acquire a number of other television stations.
Shop At Home also announced that it has engaged Friedman,
Billings, Ramsey & Co. Inc. as the company's investment
bankers.
Kent E. Lillie, president and CEO of Shop At Home, said,
"Our efforts to acquire Global's stations are consistent
with our announced plans to expand carriage of our programming by
seeking opportunities to acquire full power television stations
in major markets and also develop carriage agreements with cable
MSOs."
Shop At Home currently owns a full powered television station
in both Boston and Houston, the nation's sixth and eleventh
largest television markets respectively.
Shop At Home is the country's second oldest shopping network
having operated continuously since 1986, and for the last two
years has been the country's fastest growing in revenues,
reporting 70% revenue growth during the first three quarters of
its 1997 fiscal year. Fourth quarter and year end results are
expected to be released no later than Aug. 20, 1997.
The company's programming is now seen in over 30 million cable
households for a portion of each day.
CONTACT: Shop At Home Inc., Knoxville Kent E. Lillie,
404/848-7724 or 423/688-0300
Jayhawk Acceptance Corporation Reports
Second Quarter Results
DALLAS, TX - Aug. 14, 1997 - Jayhawk Acceptance Corporation
(Nasdaq: JACCQ) today reported a net loss of $17,183,000, or
$0.72 per share, for the three months ended June 30, 1997,
compared to net income of $2,862,000 or $0.12 per share for the
same quarter in 1996. Revenues for the second quarter of 1997
were $10,752,000, versus $12,505,000 for the same quarter of
1996. Net losses for the six months ended June 30, 1997 were
$23,002,000 or $0.96 per share compared to net income of
$4,906,000, or $0.22 per share for the same period in 1996.
Revenues for the six-month period were $24,803,000, compared to
$22,644,000 for the same period in 1996. The Company stated that
the second quarter net loss reflects an $18,100,000 provision for
credit losses and a $3,960,000 reduction in the carrying value of
certain assets used in the solicitation of dealers and the
origination of automotive contracts. The second quarter provision
for credit losses was primarily attributable to the increased
number of non-accrual automotive contracts in the Company's
portfolio and the Company's policy of providing for possible
losses in uncollected finance charges previously reported in
earnings upon a contract reaching non-accrual status.
Results of operations for the second quarter include
$1,700,000 of revenue and $3,000,000 of expenses related to the
elective healthcare financing program offered by the Company's
subsidiary, Jayhawk Medical Acceptance Corporation. Jayhawk
Medical was formed in August 1996 and as of June 30, 1997, had
booked $20,500,000 principal amount of loans.
Separately, the Company stated that discussions with its
secured lender and the unsecured creditors' committee regarding
theterms of an amended plan of reorganization that could be
supported jointly are continuing. Such amended plan of
reorganization would continue to provide for full payment of the
Company's indebtedness and contractual obligations. The Company
believes it has reached substantial agreement with the unsecured
creditors' committee for such a plan and anticipates it will be
able to reach a similar agreement with other necessary parties.
However, there can be no assurance that agreement can be reached
for a jointly supported plan or that, if agreement for such a
plan is reached, such plan will be confirmed.
Except for the historical information contained herein, the
matters discussed in this press release, including the matters
relating to an amended plan of reorganization and any beliefs
with respect thereto, are forward looking statements that are
dependent upon a number of risks and uncertainties that could
cause actual results to differ materially from those in the
forward looking statements. These risks and uncertainties include
the recoverability of amounts paid for contracts included in the
Company's portfolio, the delinquency and default rates with
respect to the contracts included in the Company's portfolio, the
impact of competitive services and products, changes in market
conditions, Jayhawk Medical's limited operating history, the
impact of changes in regulation or litigation, the management of
growth and the other risk factors identified in the Company's SEC
filings. The Company does not intend to provide updated
information about the matters referred to in these forward
looking statements, other than in the context of management's
discussion and analysis in the Company's quarterly and annual
reports on Form 10-Q and 10-K.
Jayhawk Acceptance Corporation is a specialized financial
services company headquartered in Dallas, Texas.
JAYHAWK ACCEPTANCE CORPORATION AND SUBSIDIARIES
(Debtor-in Possession)
(In thousands, except per share data)
(Unaudited)
CONSOLIDATED INCOME STATEMENTS
Three Months Ended Six
Months Ended
June 30,
June 30,
1997 1996 1997
1996
REVENUE:
Finance charges $6,510 $10,077 $15,713
$18,238
Dealer and provider fees 3,002 1,822 6,301
3,537
Service contracts 1,240 606 2,789
869
Total revenue 10,752 12,505 24,803
22,644
COSTS AND EXPENSES:
Sales and marketing 2,777 1,946 6,549
3,724
Operating 5,263 3,813 11,588
6,804
Provision for credit
losses 12,647 998 18,070
1,812
Provision for service
contract claims 371 235 1,013
432
Loss on Impairment of
fixed assets 3,960 --- 3,960
---
Interest 2,055 1,200 4,763
2,417
Total costs and expenses 27,073 8,192 45,943
15,189
Income (loss) before
reorganization expense (16,321) 4,313 (21,140)
7,455
Reorganization expenses 862 --- 1,862
---
Income (loss) before Income
taxes (17,183) 4,313 (23,002)
7,455
Income taxes --- 1,451
--- 2,549
Not income (loss) $(17,183) $2,862 $(23,002)
$4,906
Net income (loss) per share $(0.72) $0.12 $(0.96)
$0.22
Weighted average common
and common equivalent
shares outstanding 23,930 23,765 23,927
22,298
CONSOLIDATED BALANCE SHEETS
June 30, June
30,
1997 1996
ASSETS
Cash and cash equivalents $4,052 $341
Restricted cash 8,684 4,120
Installment contracts receivable 271,097 283,566
Allowance for credit losses (87,582)
(4,784)
Installment contracts receivable, net 183,515 278,782
Furniture, fixtures, and equipment, net 6,983 7,109
Income taxes receivable --- 563
Other assets 3,493 2,749
Total assets $206,727 $293,664
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Accounts payable and accrued
liabilities $6,795 $6,420
Deferred dealer and provider fees, net 2,348 2,478
Dealer and provider holdbacks, net 88,107 133,383
Unearned service contract fees 1,310 1,736
Notes payable 85,975 55,245
Total liabilities 184,535 199,262
Preferred stock of subsidiary 5,000 ---
Commitments and contingencies
Shareholders' Equity:
Common stock 240 239
Additional paid-in capital 88,779 88,343
Retained earnings (accumulated
deficit) (71,827) 5,820
Total shareholders' equity 17,192 94,402
Total liabilities and
shareholders' equity $206,727 $293,664
SOURCE Jayhawk Acceptance Corporation/CONTACT: Virginia L.
Cleveland of Jayhawk Acceptance Corporation, 214-754-1016/
Bankruptcy Court Confirms Personal Reorganization Plan of
PHILADELPHIA, PA - Aug. 14, 1997 - David Feld, Chairman and
CEO of Today's Man (Nasdaq:
TMANQ) announced today that the United States Bankruptcy Court
for the District of New Jersey has confirmed the plan of
reorganization in his personal Chapter 11 reorganization case.
The plan, which received overwhelming support from Mr. Feld's
creditors, restructures Mr. Feld's financial obligations and
resolves all creditors' claims.
In addition, successful confirmation and emergence from
Chapter 11 protection preserves Mr. Feld's majority interest in
Today's Man, the company he founded and built from one store to
25 menswear superstores in the Philadelphia, New York and
Washington D.C. markets.
The Company's Chapter 11 reorganization remains in its final
stages, with an amended plan of reorganization filed with the
United States Bankruptcy Court in Delaware and a disclosure
hearing scheduled for August 21, 1997.
SOURCE Today's Man, Inc. -0- 08/14/97 /CONTACT: Jeffrey
Kurtzman, Esq. of Klehr, Harrison, Harvey, Branzburg, &
Ellers, 215-568-6060, for Today's Man; or Public Relations -
Michael Kempner, 201-507-9500 or mkempnermww.com, or Carreen
Winters, 201-507-9500 or cwintersmww.com, both of MWW/Strategic
Communications/ (TMANQ)
CO: Today's Man, Inc. ST: Pennsylvania IN: REA SU: BCY RCN
West Cote Blanche Bay Production Increases 59%
OKLAHOMA CITY, Aug. 14, 1997 - DLB Oil & Gas, Inc.
(Nasdaq: DLBI) today announced production at West Cote Blanche
Bay Field has increased approximately 59% since DLB assumed
operations. Current field-wide production is approximately 1,300
barrels of oil per day (BOPD) as compared to approximately 800
BOPD on May 11, 1997 when DLB became field operator. Average
production for the month of July was 1,190 BOPD.
as field operator. DLB presently owns approximately 48% of the
outstanding common stock of WRT.
Production increases to date have resulted primarily from a
workover program and from a new well, SL 340 .846, which is in
the process of being dually completed. SL 340 .846 encountered
approximately 100 feet of potentially productive pay in five
reservoirs. This well is currently producing over 300 BOPD from
one of these reservoirs, DLB anticipates a second zone will be
completed in the near future. The Company's engineers estimate
total proved reserves attributable to SL 340 .846, inclusive of
one offset location, are approximately 1.3 million barrels of oil
(approximately .6 million barrels of oil to DLB's interest). A
majority of these reserves will be additions to WRT's existing
reserve base.
The operational plan for West Cote Blanche Bay contemplates an
accelerated pace of both workovers and new wells, which are
expected to significantly increase production. Results to date
are ahead of plan.
As previously announced, WIRT emerged from bankruptcy on July
11, 1997. Mr. Charles Davidson, Chairman of the Board of DLB,
also serves as Chairman of the Board of WRT. Additional DLB
management, including Mr. Mike Liddell, CEO, and Mr. Mark
Liddell, President, serve on the five-member WRT Board of
Directors, DLB and certain investment entities controlled by
Wexford Management LLC, also affiliated with Mr. Davidson,
currently own approximately 59% of the outstanding stock of WRT.
Therefore, future financial and reserve information for DLB will
be presented on a consolidated basis.
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. DLB's wholly-owned subsidiary, Bonray Drilling
Corporation, engages in the land contract drilling of oil and gas
wells, utilizing a fleet of 15 rigs having depth capabilities
ranging from 7,000 to 25,000 feet. The Company's common stock
trades under the symbol DLBI.
SOURCE DLB Oil & Gas, Inc. /CONTACT: Fred Standefer, Vice
President Corporate Development of DLB Oil & Gas,
405-848-8808/ (DLBI)