F & M DISTRIBUTORS, INC. ANNOUNCES FIRST QUARTER RESULTS
WARREN, Mich.--May 22, 1995--F & M Distributors,
Inc. (Nasdaq: FMDDQ) announced today operating results for the first quarter
ended April 29, 1995.
Sales for the first quarter were $119,243,000 at 88 store locations as
compared to $176,674,000 at 126 store locations in the first quarter
of the prior year. Comparable store sales were down 17% in the first
quarter ended April 29, 1995.
The net loss for the first quarter ended April 29, 1995, was
$16,036,000, or $1.67 per share, as compared to a loss of $3,691,000,
or $.38 per share, in the comparable period of the prior year. Current
year losses are not tax effected due to the Company's net operating
loss carry forward position. Operating losses, before interest,
reorganization items and income taxes, were $12,269,000 as compared to
losses of $1,986,000 in the first quarter of the prior year.
In commenting on the first quarter operating results, Dale Ward,
President and Chief Executive Officer, noted, "Our first quarter
performance was significantly impacted by difficulties in obtaining
merchandise from our suppliers. The Bankruptcy Court approval in April
of a super priority lien in favor of our merchandise suppliers has
reopened business relationships and we are now able to adequately
replenish our stores with merchandise. In addition, F & M has made
significant progress in redesigning the store layout and merchandise
assortment in its stores during the first quarter with 24% of our
store locations completed. We anticipate completing this project in
the third quarter of this fiscal year. Short term, the redesign
project has affected our sales volumes and expense levels as each
store proceeds through this project. However, we believe our new
merchandise assortment, store layout and improved customer service
will benefit F & M's long term operating performance."
The Company currently operates 88 F & M super drugstores located
primarily in Chicago, Detroit and Baltimore/Washington D.C. Its retail
stores offer a wide selection of branded health and beauty aids,
cosmetics and household consumables and supplies at every day low
prices.
F & M currently is operating and managing its business as a debtor in
possession under chapter 11 of the United States Bankruptcy Code. The
chapter 11 reorganization case was commenced by the Company on
December 5, 1994.
F & M DISTRIBUTORS, INC.
CONDENSED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
First quarter ended
April 29, 1995 April 30, 1994
Financial data: $ % $ %
Net sales $119,243 100.0% $176,674 100.0%
Cost of sales 96,008 80.5% 136,728 77.4%
Occupancy expense 7,117 6.0% 9,799 5.5%
Gross profit 16,118 13.5% 30,147 17.1%
Operating and administrative
expenses 28,387 23.8% 32,133 18.2%
Operating loss (12,269) -10.3% (1,986) -1.1%
Interest expense, net 1,703 1.4% 3,967 2.2%
Loss before reorganization
items and income
taxes (13,972) -11.7% (5,953) -3.4%
Reorganization items 2,064 1.7% --- 0.0%
Loss before income taxes (16,036) -13.4% (5,953) -3.4%
Credit for income taxes --- 0.0% (2,262) -1.3%
Net loss $(16,036) -13.4% $(3,691) -2.1%
Net loss per common share $(1.67) $(0.38)
Weighted average common
shares outstanding 9,612 9,612
Selected Data:
Beginning store count: 115 126
Store openings --- ---
Store closings (27) ---
88 126
Total selling square
footage 1,785 2,618
Capital expenditures, net $434 $2,762
Depreciation and amortization $1,873 $2,212
/CONTACT: (company) Laura Kendall, Chief Financial Officer of F & M
Distributors, 810-758-1400, Ext. 251; or Naomi Rosenfeld, or (media)
Stacy Berns, 212-850-5600, both of Morgen-Walke Associates/
JOHN T. CARROLL, III, NAMED TRUSTEE OF NEW ERA PHILANTHROPY BANKRUPTCY ESTATE;
BEGINS REVIEWING RECORDS TODAY
PHILADELPHIA, Pennsyvania--May 20, 1995-- John T. Carroll, III, Esq., of
the law firm Swartz, Campbell & Detweiler of Philadelphia on Friday, May 19, 1995
was appointed the Chapter 7 Trustee on behalf of the bankruptcy estate of the
Foundation for New Era Philanthropy of Radnor, Pa.
Mr. Carroll has retained as his attorneys the Philadelphia law firm of Ciardi,
Maschmeyer & Karalis, P.C. and Miller, Tate & Company of Philadelphia as his
forensic accountants.
Mr. Carroll has already made arrangements to coordinate his efforts with the
Federal and State agencies, including the Office of the United States Trustee,
the Securities and Exchange Commission, the Pennsylvania Attorney General's
Office, and the United States Attorney's Office.
Through the efforts of the Federal and State agencies, the assets of the
Foundation for New Era Philanthropy have been frozen and Mr. Carroll has begun
the process of determining the location and value of the assets of the
bankruptcy estate.
As of 11:00 a.m. on Saturday, May 20, 1995 Mr. Carroll secured the corporate
headquarters of the Foundation for New Era Philanthropy by having the locks
changed and employing the services of a 24-hour security firm. Additionally
Mr. Carroll, through the assistance of the Pennsylvania Attorney General's
Office, has videotaped the corporate offices and secured the books and records
of the bankruptcy estate.
The Trustee, along with his professional team, will be reviewing the books
and records of the bankruptcy estate throughout the weekend, and will provide
additional information as it becomes available.
/CONTACT: Susan Gurevitz of Susan Gurevitz Communications, office,
610-668-4335, or home, 610-664-3626/