GRAND PRAIRIE, Texas--Oct. 16, 1995--Oakhurst
Company Inc. ("Oakhurst") (Nasdaq:OAKC), (formerly Oakhurst Capital
Inc.), a major distributor in the automotive aftermarket, today
announced results of operations for its second quarter ended August
31, 1995.
The company had a net loss of $449,000 ($0.14 per share) for the
quarter, bringing the first half net loss to $664,000 ($0.21 per
share).
Second quarter results were impacted by a provision for doubtful
accounts of $150,000 following the announcement by href="chap11.jamesway.html">Jamesway Corp.
that it may file for Chapter 11 bankruptcy protection. Jamesway,
which has been one of the largest customers of the Steel City
Products business, accounted for sales of $4 million between March
and September 1995. Shipments have been suspended pending a further
announcement by Jamesway.
Maarten Hemsley, Oakhurst's CEO, said that Steel City's sales
trend improved in the second quarter compared with the first,
although gross margins were slightly lower. Management is
optimistic that its marketing efforts, which led to the addition of
two new customers during the second quarter (Ames Department stores
and NHD), will enable Steel City to replace the Jamesway business
although this cannot be expected to occur immediately.
During the second quarter the company's radiator distributor,
Dowling's, succeeded in regaining market share following the first
quarter attack on one of its principal markets by an aggressive
competitor. In August, sales exceeded prior year levels for the
first time this year, and Dowling's posted a small operating profit
in the second quarter compared with a loss in the first. During the
third quarter, the improved sales trend has continued, and gross
margins have also increased. Hemsley confirmed that Dowling's will
open its seventh location, in Philadelphia, in the near future.
During the quarter, Puma Products, Oakhurst's truck accessories
distributor, opened a satellite facility in Elkhart, Indiana (center
of the vehicle conversion industry), enlarged its product line and
developed its first catalog. Hemsley said that these changes
positioned Puma well for the future, but the impact was not seen in
second quarter results.
Oakhurst Company Inc. & Subsidiaries
Condensed Consolidated Results of Operations
(dollar amounts in thousands, except per share data)
(Unaudited)
Three Months Thirteen Weeks Six Months Twenty-six
Ended Ended Ended weeks ended
Aug. 31, 1995 Aug. 27, 1994 Aug. 31, 1995 Aug. 27, 1994
Revenues $13,668 $10,108 $26,739 $19,988
Net Income (loss) before income taxes (479) 604
(655) 1,094
Income taxes (benefit) (30) 201 9
397
Net income (loss) from continuing operations (449)
403 (664) 697
Discontinued operations (net) - 66
- 66
Net income (loss) $(449) $469 $(664)
$763
Per common share amounts:
Income (loss) from
continuing
operations $(0.14) $ 0.13 $(0.21)
$0.24
Income from
discontinued
operations - 0.02
- 0.02
Net income
(loss) $ (0.14) $ 0.15 $(0.21)
$0.26
Weighted average number of shares outstanding used in computing per
share amounts 3,195,235 2,866,277 3,192,832
2,949,777
TAMPA, Fla., Oct. 16, 1995 -- href="chap11.walter.html">Walter Industries (Nasdaq:
WLTR) today reported results for its fiscal first quarter ended
August 31, 1995, its first full operating period since emerging from
Chapter 11 reorganization as a newly public company in March.
Net sales and revenues totaled $380.1 million, a 12 percent
increase over revenues of $340.6 million a year earlier.
Earnings before interest, taxes, depreciation, and amortization
of goodwill (EBITDA) increased 20 percent to $89.6 million versus
$74.8 million in the prior year period.
EBITDA was higher in each of the company's four operating
groups, and revenues were higher in all but Homebuilding and Related
Financing.
Commenting on the company's first quarter performance, Chairman
and Chief Executive Officer G. Robert Durham said, "These results
underscore our expectations that fiscal 1996 will produce very
favorable year-to- year improvement across our major business
lines."
The company's Homebuilding and Related Financing Group generated
five percent higher EBITDA despite a two percent decrease in
revenues. The income improvement stemmed mainly from improved
margins resulting from higher average home sales prices and lower
lumber costs. The revenue decline resulted from decreased unit
sales during the quarter.
A 13 percent increase in revenues and 11 percent higher EBITDA
in the Water and Waste Water Transmission Products Group reflected
gains in both volume and selling prices for the company's ductile
iron pressure pipe, fittings, valves and hydrants, despite higher
raw material costs.
The Natural Resources Group posted 30 percent higher revenues,
and EBITDA increased 157 percent to $17.2 million from $6.7 million
in the prior year period. During the current quarter, the Group
benefited from higher coal and methane gas shipments, lower
production costs, and greater outside coal, gas and timber royalty
income.
Results of the Industrial and Other Products Group, with
increases of 12 percent in revenues and 10 percent in EBITDA,
principally reflected improved performances from the company's
aluminum and coke operations.
Capital expenditures were $14.0 million in the current quarter
compared with $14.7 million in the 1994 period.
Net income for the quarter was $241,000, or less than one cent
per share, versus $1.4 million in the prior year. The $13.4 million
increase in earnings before interest and taxes was more than offset
by $18.1 million of additional interest expense in the current
quarter resulting from the company's post-reorganization capital
structure. Net income was also after $10.2 million and $10.6
million of goodwill amortization in the current and prior year
quarters, respectively, relating to the company's 1987 leveraged
buyout.
WALTER INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
Quarter Ended August 31,
($ in thousands, except
per share amount) 1995 1994
Net sales and revenues (a) $380,148 $339,222
Cost of sales 249,833 224,119
Depreciation 18,517 16,757
Selling, general
and administrative 34,042 33,647
Postretirement
health benefits 6,679 6,647
Amortization of goodwill 10,225 10,568
Earnings before
interest and taxes 60,852 47,484
Chapter 11 costs, net (a) --- 2,731
Interest 54,581 36,463
Pretax income 6,271 8,290
Income tax expense (6,030) (6,857)
Net income $241 $1,433
Net income per share $--- NM(b)
Common shares outstanding 50,494,313 NM(b)
(a) -- Interest income from Chapter 11 proceedings ($1,418 in
1994) is excluded from sales and revenues and included in net
Chapter 11 costs for purposes of determining earnings before
interest and taxes.
(b) - Not meaningful due to change in capital structure which
occurred as a result of the company's reorganization.
WALTER INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
($ in thousands) August 31,
1995 1994
Cash and short-
term investments $ 83,048 $ 209,557
Short-term investments,
restricted 140,829 98,665
Installment notes receivable 4,227,775 4,187,486
Less - Provision for
possible losses (26,389) (26,316)
Unearned time charges (2,851,641) (2,804,523)
Trade and other receivables 178,628 144,923
Federal income tax receivable 99,875 ---
Inventories 184,605 159,779
Prepaid expenses 9,641 9,109
Property, plant and
equipment, net 656,850 652,386
Excess of purchase price
over net assets
acquired (goodwill) 362,671 402,355
Deferred income taxes 11,275 ---
Other assets 82,185 74,238
$3,159,352 $3,107,659
Bank overdrafts,
accounts payable
and accrued expenses $226,342 $188,571
Income taxes payable 53,638 28,367
Deferred income taxes --- 67,114
Long-term senior debt 2,181,627 841,254
Accrued interest 51,446 270,657
Accumulated postretirement
health benefits obligation 233,679 216,161
Other long-term liabilities 51,605 48,566
Liabilities subject to
Chapter 11 proceedings --- 1,727,889
Stockholders' equity (deficit) 361,015 (280,920)
$3,159,352 $3,107,659
WALTER INDUSTRIES, INC. AND SUBSIDIARIES
RESULTS BY OPERATING GROUP
($ in thousands)
SALES & REVENUES: Quarter Ended August 31,
1995 1994
Homebuilding and
Related Financing $100,764 $103,082
Water and Waste Water
Transmission Products 119,448 105,334
Natural Resources 89,515 68,612
Industrial and Other Products 69,559 61,951
Corporate 862 1,661
$380,148 $340,640
EBITDA: (a)
Homebuilding and
Related Financing (b) $54,473 $51,845
Water and Waste
Water Transmission Products 15,764 14,163
Natural Resources 17,165 6,667
Industrial and Other Products 5,497 4,996
Corporate (3,305) (2,862)
$89,594 $74,809
(a) -- Reflects addback of depreciation and amortization of
goodwill, as follows:
1995 1994
Homebuilding and
Related Financing $8,936 $9,306
Water and Waste Water
Transmission Products 6,947 6,802
Natural Resources 10,041 8,791
Industrial and
Other Products 3,630 3,259
Corporate (812) (833)
Total $28,742 $27,325
(b) -- Before deducting interest expense of $31,653 in 1995 and
$31,120 in 1994.
WILMINGTON, Del., Oct. 16, 1995 -- href="chap11.columbia.html">The Columbia Gas
System, Inc., (NYSE: CG) reported that U.S. District Court Judge
Joseph Farnan Jr. today ruled that a $36.5 million settlement
resolving class action lawsuits alleging securities laws violations
is fair and reasonable. He will issue an order dismissing the
litigation.
The lawsuits were filed against the Corporation, its independent
public accountants, the underwriters for the Corporation's 1990
common stock offering, and certain officers and directors of the
Corporation and Columbia Gas Transmission Corporation by various
security holders on behalf of a purported class of all such security
holders.
Judge Farnan also approved plaintiff counsel fees and expenses
totaling $12.26 million, which will be deducted from the $36.5
million settlement amount.
Columbia's portion of the $36.5 million settlement is
approximately $16.5 million with the remainder shared among the
insurance carrier for the directors and officer defendants and the
other defendants to the litigation. The Corporation's contribution
to the settlement fund is subject to the approval of U.S. Bankruptcy
Court for the District of Delaware as part of the Corporation's
reorganization plan. Payments to security holders will be made
after Columbia emerges from Chapter 11.
The Columbia Gas System, Inc., and Columbia Gas Transmission
have been operating as debtors-in-possession under Chapter 11 of the
Bankruptcy Code since July 31, 1991. Confirmation hearings on
filed plans of reorganization are scheduled for November, and the
companies anticipate emergence from Chapter 11 protection prior to
the end of this year.
/CONTACT: W.R. McLaughlin, 302-429-5443, or H.W. Chaddock,
302-429-5261, or financial, K.P. Murphy, 302-429-5471, all of
Columbia
Gas/
ST. LOUIS, Missouri--October 16, 1995--href="chap11.twa.html">Trans World
Airlines, Inc. (AMEX:TWA) announced today that it received
approximately $55 million gross proceeds from a fully subscribed
equity rights offering.
TWA said the difference between the average of the closing
prices of the common stock for the Subscription Period and the
exercise price of the equity rights was greater than $2. The
company said it would therefore not issue Series A Warrants to
holders of record of claims represented by TWA's old 8% Senior
Secured Notes and old 10% Senior Secured Notes. Series A Warrants
were to be issued to such claimants if the value of the equity
rights was less than $2. The exercise price of the equity rights
was $4.1875.
TWA said the approximately 13,150,000 equity rights were issued
as part of the company's prepackaged Plan of Reorganization under
Chapter 11 of the U.S. Bankruptcy Code. The Plan was confirmed on
Aug. 4, 1995 by the U.S. Bankruptcy Court for the Eastern District
of Missouri and became effective on Aug. 23, 1995.
CONTACT: Trans World Airlines, Inc.,
Media: Robert Mead, 212/484-6701;
Investor: Krista Grossman, 800/811-0075
TROY, Mich., Oct. 16, 1995 -- Kmart Corporation
(NYSE: KM)
today called published speculation about a Chapter 11 filing
inaccurate and misleading. The company's Chairman, President and
CEO, Floyd Hall, today affirmed that the retailer's financial
position is solid and that plans to improve the company's core
discount business are progressing. In respect to the company's
financial position, Hall said that:
Substantial additional debt capacity is currently available
under existing agreements.
"As we move forward, we are focusing on improving sales
productivity in our discount stores and further strengthening our
financial position," said Hall. "We are making progress on
improving our core business, but much remains to be done.
"In recent months, we have taken aggressive actions to clear out
unproductive merchandise, increase our in-stock position, improve
advertising productivity and instill stronger operational discipline
in our 2,100 stores," Hall said.
"We continue to be encouraged that our comparable store sales
have increased to 6.5 percent year to date and that our sales per
square foot ratios continue to improve," Hall said.
"The priority for our stores is to fix and eliminate problems
that concern our customers," Hall said. "We are raising our
standards to ensure our stores are well-kept, well-stocked and that
all of our associates are squarely focused on serving the needs of
the millions of customers who shop Kmart each day."
Kmart will hold meetings with the investment community in late
October and early November so that Hall and the company's management
can further discuss the company's progress and plans.
Kmart Corporation serves America with 2,163 Kmart and 171
Builders Square retail outlets. In addition to serving all 50
states, Puerto Rico and U.S. Virgin Islands, Kmart operations extend
to Canada, the Czech Republic and Slovakia, and through joint
ventures, to Mexico and Singapore.
/CONTACT: Robert M. Burton, Director, Investor Relations, or Shawn
M. Kahle, Vice President, Corporate Affairs, of Kmart, 810-637-4201/