SLM INTERNATIONAL ANNOUNCES 1995 SECOND QUARTER AND SIX MONTH RESULTS
NEW YORK, NY--Aug. 22, 1995--SLM International,
Inc. (Electronic Bulletin Board: "SLMI") announced operating results
for the second quarter and six months ended July 1, 1995. The
Company also announced it has filed its Form 10-Q for the quarter
ended July 1, 1995 with the Securities and Exchange Commission on
August 21, 1995.
Net sales from continuing operations for the second quarter
ended July 1, 1995 were $38.2 million, compared to $45.3 million for
the same period in 1994. The loss from continuing operations was
$12.3 million, or $0.65 per share, in 1995, compared to income of
$1.4 million, or $0.08 per share, in 1994. The loss from continuing
operations, which includes the Company's sporting goods business,
primarily reflected the unfavorable impact of $7.0 million for the
settlement of environmental litigation and $4.7 million of
professional fees and higher interest costs related to defaults with
its lenders. Excluding such items, the Company's second quarter
loss from continuing operations would be approximately $0.6 million.
The 1995 loss from continuing operations also reflects the negative
impact of inadequate cash availability resulting in inventory
shortfalls versus customer orders and the adverse impact of the
hockey and baseball strikes. The net loss for the second quarter of
1995 was $37.9 million, or $2.01 per share, compared to a net loss
of $3.4 million, or $0.18 per share, for the prior year. The net
loss for 1995 reflects the loss from continuing operations and a
loss from discontinued operations as a result of the completion of
the sale of the Company's discontinued Buddy L
toy and fitness businesses out of bankruptcy in early July 1995.
Net sales from continuing operations for the six months ended
June 30, 1995 were $69.0 million, compared to $70.2 million for the
same period in 1994. Loss from continuing operations was $19.6
million, or $1.03 per share, in 1995, compared to income of $0.9
million, or $0.05 per share, in 1994. The loss from continuing
operations reflected the unfavorable impact of $7 million for the
settlement of environmental litigation and $7.2 million of
professional fees and higher interest costs related to defaults with
its lenders. Excluding such items, the Company's first half 1995
loss from continuing operations, would be approximately $5.4
million. The 1995 loss from continuing operations also reflects the
negative impact of inadequate cash availability resulting in
inventory shortfalls versus customer orders and the adverse impact
of the hockey and baseball strikes. The net loss for the first six
months of 1995 was $45.2 million, or $2.39 per share, compared to
net loss of $4.8 million, or $0.25 per share, for the prior year's
six month period. The net loss for 1995 reflects the loss from
continuing operations and a loss from discontinued operations as a
result of the completion of the sale of the Company's discontinued
Buddy L toy and fitness businesses out of bankruptcy in early July
1995.
The Company's loss for the second quarter and six months ended
July 1, 1995 includes an expense of $7 million relating to the
settlement of an environmental lawsuit brought in Vermont Superior
Court by the owner of a property adjacent to the Company's
manufacturing facility in Bradford, Vermont. The Company has paid
$1 million in cash to the property owner and has agreed to deliver
its $6 million Term Note due June 28, 2000, bearing interest at 10%
per annum, with principal amortization on a 20 year schedule.
Howard Zunenshine, Chief Executive Officer of SLM International,
Inc., stated, "We believe our core sporting goods business is a
platform for growth, and our brand name is widely recognized in the
marketplace. Since the completion of Buddy L, we are now better
able to focus on our objectives, including profit augmentation
through product line expansion and enhancement. With the expansion
of the National Hockey League into warm weather climates and the
hockey and baseball strikes behind us, we look forward to improved
results. In addition, we believe that the previously announced
Standstill Agreements with our lenders and the retention of Bear
Stearns & Co. Inc. to assist us in exploring a wide variety of
possible financial transactions, including refinancing outstanding
debt and obtaining additional equity capital, are two other positive
developments."
SLM International, Inc. designs, develops, manufactures and
markets a broad range of sporting goods products on a worldwide
basis.
SLM INTERNATIONAL, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except share data)
Three Months Ended Six Months Ended
07/01/95 07/02/94 07/01/95 07/02/94
Restated Restated
Net sales $ 38,173 $ 45,272 $ 68,951 $ 70,157
Cost of goods sold 23,537 26,148 43,784 41,778
Gross profit 14,636 19,124 25,167 28,379
Selling, general and
administrative expenses 12,847 15,142 26,018 24,203
Operating (loss) income 1,789 3,982 (851) 4,176
Debt related fees 3,556 --- 5,277 ---
Litigation settlement 7,000 --- 7,000 ---
Other expense (income),
net 122 64 156 (18)
Interest expense 3,438 1,738 6,310 2,803
(Loss) income from
continuing operations
before income taxes (12,327) 2,180 (19,594) 1,391
Income taxes --- 751 --- 487
(Loss) income from
continuing operations (12,327) 1,429 (19,594) 904
(Loss) from discontinued
operations, net of
income tax benefit --- (4,819) --- (5,696)
(Loss) from disposition
of discontinued
operations, net of
income taxes of nil (25,569) --- (25,569) ---
Net (loss) $(37,896) $ (3,390) $(45,163) $ (4,792)
(Loss) income per
share from continuing
operations $ (0.65) $ 0.08 $ (1.03) $ 0.05
(Loss) per share from
discontinued operations --- (0.26) --- (0.30)
(Loss) per share from
disposition of
discontinued operations (1.36) --- (1.36) ---
Net (loss) per share $ (2.01) $ (0.18) $ (2.39) $ (0.25)
Average shares
outstanding 18,589,679 18,838,000 18,859,679 18,831,000
CONTACT: Howard Zunenshine
Chief Executive Officer
514/331-5150
John A. Sarto
Chief Financial Officer
212/675-0070
or
IR CONTACT:
June Filingeri/Melissa Garelick
Press: Lisa Bradlow
Morgen-Walke Associates
212/850-5600