BRENDLE'S REPORTS RESULTS FOR FIRST QUARTER FYE 1996
ELKIN, N.C.--June 13, 1995--Brendle's
Incorporated (Nasdaq: BRDL) today reported results for the quarter ended April
29, 1995, the first quarter of its fiscal year ending January 27,
1996 ("Fiscal 1996"). The Company's revenues for the quarter were
$24,153,000 compared with revenues of $25,977,000 for the same
period last year, a decrease of approximately seven percent (7%).
The company incurred a net loss of $3,845,000 or ($.30) per share,
compared with a net income of $24,833,000 or $2.96 per share in the
same period last year.
David R. Renegar, the Company's Chief Financial Officer,
explained that comparing revenues and net income (loss) for the
first quarters of Fiscal 1995 and Fiscal 1996 is somewhat
complicated. "Just prior to the end of the first quarter of Fiscal
1995, we achieved substantial consummation of our Plan of
Reorganization. We were very close to emerging from bankruptcy
proceedings and, as a result, experienced a number of unusual
financial occurrences. For instance, the Net Income for the first
quarter of Fiscal 1995 included reorganization costs of $246,000 and
debt forgiveness of $28,673,000. The first quarter of Fiscal 1996,
on the other hand, reflects a more normalized operating picture,"
explained Mr. Renegar.
Mr. Renegar further explained that looking at a comparison of
the Company's earnings (loss) before interest, taxes, depreciation,
amortization and reorganization items (EBITDA) better reflects the
Company's actual operating results. EBITDA for the first quarter of
Fiscal 1996 was a loss of $2,305,000 compared to a loss of
$2,363,000 for the first quarter of Fiscal 1995. The improvement
was primarily the result of improved gross margin percentages and a
reduction in operating expenses. The Company's business is seasonal
with a substantial portion of its revenues being realized during the
Christmas season.
Commenting on the Company's performance, Joe McLeish, Jr., the
Company's recently installed President and Chief Executive Officer,
stated that, "the sales decrease was a direct result of our
eliminating two sales promotions in the first quarter and moving a
third promotion into the second quarter to better correspond with
Mother's Day. Our planned adjustments to our promotions, however,
resulted in a cost savings to the Company and a higher gross margin
percentage for the quarter. We were glad to see that we were able
to improve our results at the EBITDA level and will continue to
implement new strategies to improve our profitability."
BRENDLE'S INCORPORATED FINANCIAL HIGHLIGHTS
Three Months Ended
000s April 29, 1995 April 30, 1994
Total Revenues $ 24,153 $ 25,977
Loss before interest,
taxes, depreciation,
amortization,
restructuring and
extraordinary items ( 2,305) ( 2,363)
Interest ( 676) ( 352)
Depreciation and
Amortization ( 864) ( 879)
Restructuring -- ( 246)
Extraordinary Income
(Debt Forgiveness) -- 28,673
Net Income (Loss) ( 3,845) 24,833
Earnings (Loss) per
share ( 0.30) 2.96
Average Shares
Outstanding 12,759 8,398
/CONTACT: David R. Renegar, Vice President and CFO, Brendle's
Incorporated, 910-526-6511/