NEW ERA REMOVED FROM PENNSYLVANIA'S SUIT IN EFFORT TO CONSERVE ASSETS
HARRISBURG, Pa., June 8, 1995 -- In a move
designed to conserve the assets of the bankrupt
Foundation for New Era Philanthropy, Attorney General Ernie Preate Jr. said he
today agreed
to remove the foundation from a lawsuit his office filed last month in
Commonwealth Court.
"We don't want to deplete funds that can be used for restitution to
charities that lost their investments with New Era," the Attorney
General said. "Forcing New Era into additional litigation certainly
would result in significant expenditures from New Era's bankrupt
estate.
"We will continue to actively participate in all proceedings before
the Bankruptcy Court in order to preserve and protect the charitable
assets, and to ensure the equitable distribution of those funds."
Under the consent agreement filed today in Commonwealth Court, New Era
is permanently barred from conducting charitable solicitations in
Pennsylvania.
Preate pointed out that the foundation's president, John G. Bennett
Jr., remains a defendant in the suit.
In filing the suit May 16, Preate's office alleged that Bennett and
New Era defrauded charities while promising to double charities'
deposits through matching grants from anonymous contributors. It
charged the defendants with violations of the state's Charities Act,
Consumer Protection Law and Nonprofit Corporation Law.
Preate's suit was filed in Commonwealth Court a day after New Era
filed for reorganization in U.S. Bankruptcy Court. On May 19, New Era
converted its bankruptcy filing to a Chapter 7 liquidation.
Preate noted that the Bankruptcy Court proceedings apply only to New
Era and not to Bennett personally.
The consent agreement removing New Era from the state's suit was filed
by Chief Deputy Attorney General Janice L. Anderson, who heads
Preate's Charitable Trusts and Organizations Section. She said the
agreement is subject to court approval.
The agreement was signed by John T. Carroll III, the bankruptcy
court-appointed interim trustee for New Era. Carroll's duties include,
among other things, identifying and safeguarding New Era's assets,
Anderson said.
Although the agreement bars New Era from conducting charitable
solicitations in Pennsylvania, it doesn't stop the trustee "from
collecting any monies or charitable solicitations voluntarily or
otherwise on behalf of the estate of New Era," according to the
agreement.
/CONTACT: Jack J. Lewis, assistant press secretary of the Office of
Attorney General, 717-787-5211, or at home, 717-657-9840/
(EMERSON-RADIO)(MSN) EMERSON RADIO CORP. ANNOUNCES FISCAL YEAR AND
FOURTH QUARTER RESULTS; Fourth Quarter Net Income $2.0 Million Vs.
Loss Of $24.2 Million Before One-Time Extraordinary Gain; Revenue
Increases 34% for the Year, Company Improves Results
PARSIPPANY, N.J.--JUNE 9, 1995--EMERSON
RADIO CORP. (AMEX Symbol: MSN) today announced results for the fiscal year
and fourth quarter ended March 31, 1995.
For the year, net sales rose 34% to $654,671,000, up from
$487,390,000 reported for the fiscal year ended March 31, 1994. Net
income for fiscal 1995 was $7,375,000, or $0.16 per share, compared
with a net loss of $73,654,000, or $1.93 per share, for fiscal 1994.
(Fiscal 1994 figures exclude an extraordinary gain of $129.2
million, or $3.38 per share, resulting from the extinguishment of
debt through the restructuring plan.)
For the three months ended March 31, 1995, the Company reported
that net sales increased 22% to $125,560,000, up from $103,115,000
reported in the quarter ended March 31, 1994. Emerson reported net
income of $2,022,000, or $0.04 per share, compared with a net loss
(before the extraordinary gain) of $24,232,000, or $0.63 per share,
recorded in the comparable quarter last year.
The Company noted that since its reorganization, the balance
sheet has significantly improved with working capital increasing 32%
to $42.6 million at March 31, 1995, up from $32.2 million in the
comparable prior year end period. Shareholders' equity increased
26% to $53.7 million at March 31, 1995 from $42.6 million at March
31, 1994.
Commenting on the announcement, Geoffrey P. Jurick, Chairman
and Chief Executive Officer, stated, "We are proud to announce
results for Fiscal 1995. The year was certainly Emerson's most
significant in history and began a day after the Company emerged
from bankruptcy. Since then, events that unfolded have shown that
our restructuring was indeed successful. We closed the year with a
vastly improved operating structure, achievements in diversifying
the product line, tremendous gains in sales volumes, markedly
improved financial results, and solid profitability. Earnings per
share totaled $0.16, and mark a dramatic improvement over last
year's comparable loss of $1.93 per share. In the most recently
completed quarter, a successful marketing and sales effort, coupled
with our commitment to controlling costs, has resulted in our
Company again exceeding goals set in the reorganization plan."
"We further diversified the product offering in January 1995
with the introduction of two new product lines at the Consumer
Electronics Show. The first comes under an agreement with a large,
diversified Hong Kong company that will sell watches and clocks
under the Emerson name. Emerson will receive royalties for the use
of its name and will receive distribution fees acting as the
exclusive sales agent for the products in North America. The second
new product line is ready-to-assemble (RTA) furniture, currently a
growing $1 billion industry. Emerson will sell TV and VCR stands,
microwave oven carts, entertainment centers, and CD and video
storage units. The new line will be sourced from the Far East and
sold through the traditional mass merchandiser distribution
channels."
Gene Davis, President, continued, "Looking ahead, we plan to
leverage off our strong financial position and remain committed to
the single goal of using our strengths to create an even more
profitable and diversified consumer products company. In doing so,
we will leverage our widely-recognized trademark, highly reliable
sourcing capabilities, extensive distribution infrastructure, and
goodwill among our customers. We will do this through strategic
relationships and alliances that will not require the type of
enormous capital investment that brought on previous financial
difficulties. We remain confident that Emerson is well-positioned
to take advantage of numerous opportunities in the global consumer
products market, and that we will achieve continued success in the
coming years."
EMERSON RADIO CORP., founded in 1948, is headquartered in
Parsippany, NJ. The Company designs and markets, throughout the
world, a full line of televisions, video, audio and microwave oven
products.
EMERSON RADIO CORP. AND SUBSIDIARIES
Consolidated Statements of Operations
($000, except per share amounts)
Three Months Ended March 31, Year Ended March 31,
1995 1994 1995 1994
(Unaudited)
Net sales $ 125,560 $ 103,115 $ 654,671 $487,390
Costs and Expenses:
Cost of sales 113,526 103,370 604,329 486,536
Other operating
costs & expenses 1,994 1,640 8,771 12,001
Selling, general &
administrative
expenses 7,189 6,732 31,047 34,552
122,709 111,742 644,147 533,089
Operating profit (loss) 2,851 (8,627) 10,524 (45,699)
Interest expense 758 49 2,882 10,243
Earnings (loss) before
reorganization
costs and income taxes 2,093 (8,676) 7,642 (55,942)
Reorganization costs -- 15,427 -- 17,385
Earnings (loss) before
income taxes and
extraordinary gain 2,093 (24,103) 7,642 (73,327)
Provision for income taxes 71 129 267 327
Earnings (loss) before
extraordinary gain 2,022 (24,232) 7,375 (73,654)
Extraordinary gain on
extinguishment of debt -- 129,155 -- 129,155
NET EARNINGS (LOSS) $ 2,022 $104,923 $ 7,375 $ 55,501
Net earnings (loss)
per common share:
Before extraordinary gain $ 0.04 $ (0.63) $ 0.16 $ (1.93)
Extraordinary gain -- 3.38
-- 3.38
$ 0.04 $ 2.75 $ 0.16 $ 1.45
Weighted average number
of common shares
outstanding 46,695 38,191 46,571 38,191
The information contained herein was obtained from the management of
Emerson Radio Corp. and other sources deemed to be reliable. This
document does not constitute the solicitation of the purchase or
sale of securities. Lippert/Heilshorn & Associates, Inc. is employed by
the Company as its investor relations firm.
CONTACT: Media Contact:
Andrew LaGuardia
Geltzer & Company
(212) 575-1976
or
Company Contact:
Eugene I. Davis
President
Emerson Radio Corp.
(201) 884-5800
or
Keith L. Lippert/Richard G. Foote
Lippert/Heilshorn & Associates, Inc.
(212) 838-3777
(TRENTON-INDUSTRIES-INC)(TII) TRENTON INDUSTRIES INC. - COMPANY
ANNOUNCEMENT
TRENTON, Ontario--JUNE 9, 1995--
TRENTON INDUSTRIES INC (TSE: TII) Trenton Industries Inc. (the "Company") announces
that at the June 7, 1995 meeting of its unsecured creditors and
those of its subsidiaries, Sailrail Enterprises Limited and Trenton
Machine Tool Inc. The creditors overwhelmingly accepted the
Companies' Proposals to them under the Bankruptcy and Insolvency Act
(Canada) ("BIA").
The Company wishes to express its appreciation of the
substantial contribution that the unsecured creditors have made to
the continued viability of the Companies and hence to their
employees and the other stakeholders of the Companies. Subject to
fulfillment of all of the other reorganization steps and the
completion of the other conditions of the Proposals, the approval of
the unsecured creditors of the Company will result in the removal of
approximately $3,900,000.00 of debt from the consolidated balance
sheets of the Companies.
The other conditions of the Proposal and of the successful
reorganization of the Companies include completion of concessions
negotiated with the secured creditors of the Companies, approvals by
the shareholders of the Company at its July 13, 1995 shareholders'
meeting of share issues involving the conversion of debt to equity,
and court approval under the BIA. While the failure of any of these
other elements of the reorganization would result in the failure of
the Proposal and hence the bankruptcies of the Companies, it is
hoped that the approval of the unsecured creditors of the Proposals
will result in the approval of the other stakeholders of the
Companies, including the shareholders at the July 13, 1995 meeting.
CONTACT: Mr. Brian D. Kinmond, Tel: (613) 394-4861
Fax: (613) 394-6095
or
Mr. R. Bryan McJanner, Tel: (905) 339-0214
Fax: (905) 339-0814