PINE BROOK, N.J., Oct. 19, 1995 -- A substantial increase
in net income for the fiscal year ended June 30, 1995 was reported
by Cistron Biotechnology, Inc.
Cistron's 1995 net income was $279,276 or 1 cent per share
versus a loss of $273,852 or a loss of 1 cent per share last year.
Sales for the 12-month period were $649,949, down from $874,627 in
fiscal 1994.
Licensing income increased $980,000 in fiscal 1995 due to the
company's license and supply agreement with R&D Systems, Inc., a
subsidiary of TECHNE Corporation (Nasdaq: TECH). R&D Systems also
agreed to provide the company with $1 million in research funding,
payable in quarterly installments over a 2-1/2 year period.
Sales dropped in fiscal 1995 because of lower cytokine assay kit
sales, increased worldwide competition that has depressed prices and
decreased bulk sales of assay components. Operating expenses
increased by $222,000 in fiscal 1995 primarily as a result of
ongoing litigation.
The company has yet to collect the almost $3 million awarded to
the company last October in its patent infringement case against
PeproTech, Inc. In July 1995,
PeproTech filed an amended appeal of
the federal court's decision and filed for Chapter 11 protection.
The appeal has been stayed as a result of the bankruptcy filing.
Cistron's suit against Immunex Corp. (Nasdaq: IMNX), in which
the company is seeking monetary damages for misappropriation of
Cistron trade secrets, is still in the discovery stage and is
scheduled for trial in April, 1996. Immunex Corp. is an indirect
subsidiary of American Home Products Corporation (NYSE: AHP).
Cistron's primary product area is immune response regulators
known as lymphokines. The company manufactures and sells
lymphokines and lymphokine assay kits to pharmaceutical companies,
the government and academic institutions in North America, Europe
and the Pacific Rim for cancer, arthritis and other autoimmune
disease research.
FINANCIAL SUMMARY
12 months ended June 30
1995 1994
Net Sales $ 649,949 $ 874,627
Net Income (Net Loss) $ 279,276 $(273,852)
Earnings (Loss) Per Share $ .01 $(.01)
Weighted Average Number
of Shares Outstanding 27,522,928 26,882,990
WARREN, Mich., Oct. 19, 1995 -- F & M
Distributors, Inc.
announced today the resignation of Dale D. Ward, its President and
Chief Executive Officer and a member of its Board of Directors,
effective immediately. As a result of the downsizing of the F & M
chain, the Company and Mr. Ward mutually agreed that it was in the
best interest of F & M to permit Mr. Ward to pursue other interests.
The Company currently is operating and managing its business as
a debtor in possession under chapter 11 of the United States
Bankruptcy Code. The chapter 11 case was commenced by the Company
on December 5, 1994, at which time 126 F & M super drug stores and
six PartiGiant stores were in operation. Today, the Company
directly operates fifty-seven F & M super drug stores located
primarily in the Detroit, Chicago and Baltimore/Washington market
areas.
/CONTACT: Laura Kendall, SVP & Chief Financial Officer of F & M,
810-758-1400, Ext. 251/
LOS ANGELES, Oct. 19, 1995 -- Teledyne, Inc.
(NYSE: TDY)
announced today that net income for the third quarter ended
September 30, 1995 increased 79 percent to $34.5 million, or $0.61
per common share, from $19.3 million, or $0.35 per common share, for
the same period of 1994. Sales from continuing operations for the
third quarter of 1995 increased 9 percent to $591.0 million from
$544.1 million for the same period of 1994.
"These results represent the fourth consecutive quarter of
substantial operating income gains over the prior year and confirm
again that implementation of our business plans continues to
generate earnings momentum. Income was up in all four segments.
The overall rise in sales and income was led by specialty metals,
which benefited from improved conditions in our worldwide markets,"
said William P. Rutledge, chairman and chief executive officer, and
Donald B. Rice, president and chief operating officer.
"The Company continues to explore whether a sale of the Company
or other major transaction will provide greater value than would be
realized through our operating performance and other elements of our
business plans. The goal remains: do what's best for our
shareholders," they added.
Net income for the nine months ended September 30, 1995 was
$131.4 million, or $2.35 per common share, compared to a net loss of
$24.8 million, or $0.45 per common share, for the same period of
1994. Excluding an after-tax gain of $30.3 million on the sale of
Teledyne Electronic Systems, income for the nine months of 1995
doubled to $101.1 million, or $1.80 per common share, when compared
to nine month 1994 income of $50.2 million, or $0.90 per common
share, excluding after-tax charges of $75.0 million to resolve
certain U.S. government contracting issues. Sales from continuing
operations increased 19 percent to $1.92 billion for the nine months
of 1995 compared to $1.62 billion for the same period of 1994.
Results of Operations
Aviation and Electronics
Sales from continuing operations increased to $224.4 million for
the third quarter of 1995 from $218.0 million in the same period of
1994 and increased to $785.7 million for the nine months of 1995
from $644.3 million for the same period of 1994. During the third
quarter and nine months of 1995, sales increased due to commencement
of development work on the United States' new High Altitude
Endurance Unmanned Aerial Surveillance/Reconnaissance Vehicle, the
Tier II Plus program. Sales also improved during these periods for
electronic countermeasure equipment for the international market,
microwave devices and electromechanical relays for government and
commercial customers, and avionics for the commercial aviation
market. These increases were partially offset by a decline in
aerial target sales due to use of government furnished engines that
lowered costs per target. The completion of a contract to provide
ground power generators to the U.S. Air Force increased sales $80
million for the nine months of 1995 over the prior year period. In
addition, sales of fabricated products for the U.S. armed forces
and piston engines for the general aviation market resulted in
improved sales for the nine months of 1995 over the same period of
1994.
Operating profit from continuing operations increased to $22.9
million for the third quarter of 1995 from $20.5 million for the
same period of 1994. For the nine months of 1995, operating profit
increased to $78.2 million from $48.6 million for the same period of
1994, excluding charges of $88.8 million to resolve certain U.S.
government contracting matters in 1994. Operating profit for the
1995 third quarter and nine months increased primarily due to the
higher sales described above, improved earnings on unmanned air
vehicles, aerial targets and systems engineering services, and
reduced losses on wire and cable products. The reversal of
estimated losses of $10.7 million as a result of the completion of
the ground power generator contract discussed above also contributed
to operating profit for nine months of 1995. The improvements in
operating profit for the third quarter and nine months of 1995 were
partially offset by lower margins on piston engines for the general
aviation industry.
Specialty Metals
Sales from continuing operations increased to $212.1
million for
the third quarter of 1995 from $173.2 million for the same period of
1994 and increased to $642.4 million for the nine months of 1995
from $524.6 million for the same period of 1994. Sales increased
primarily due to the improvement in the worldwide markets served by
Teledyne's specialty metals businesses, particularly in the
automotive, commercial aerospace, power generation, cutting tool and
other industrial markets.
Operating profit from continuing operations increased to $19.7
million for the third quarter of 1995 from $7.5 million for the same
period of 1994 and increased to $66.9 million for the nine months of
1995 from $31.7 million for the same period of 1994. The
improvement in operating profit in the third quarter and nine months
of 1995 was primarily the result of increased sales, improved
margins in nickel and titanium-based alloys and specialty steels,
and the strong performance of thin rolled and tungsten-based
products, partially offset by lower margins on zirconium products.
Operating profit for the 1995 third quarter and nine months was
adversely affected by legal costs associated with the resolution of
export license cases, and decreased productivity in zirconium
products in the midst of protracted labor negotiations, which have
since been settled. Costs associated with installing a new high
capacity mill and opening a new international service center for
distribution of thin rolled products also negatively affected
operating profit for both periods.
Industrial
Sales from continuing operations decreased to $72.6
million for
the third quarter of 1995 from $77.7 million for the same period of
1994 and increased to $250.9 million for the nine months of 1995
from $225.4 million for the same period of 1994. For the 1995 third
quarter and nine months, sales improved in metal stamping dies and
plastic compression molds for the automotive and truck markets, and
in nitrogen cylinder systems for the metal stamping industry. Sales
of material handling equipment also improved during both periods
primarily as a result of the January 1995 acquisition of the
material handling business of Kooi Beheer B.V. Kooi is a
Netherlands company that is Europe's largest supplier of truck-
mountable, self-propelled material handlers. For the 1995 third
quarter, sales declines related to land combat vehicle development
and tank engines exceeded the sales improvements discussed above.
In addition, for the nine months of 1995 sales of crash fire
vehicles to the U.S. Air Force increased while land combat vehicle
development sales declined compared to the same period of 1994.
Operating profit from continuing operations increased to $3.0
million for the third quarter of 1995 from $2.7 million for the same
period of 1994 and increased to $14.0 million for the nine months of
1995 from $2.5 million for the same period of 1994. Operating
profit for the third quarter and nine months of 1995 was affected by
the changes in sales discussed above, a gain on sale in the 1995
third quarter of an industrial valve product line, and improved
profitability of pressure relief valves. In addition, operating
profit for both periods was adversely affected by costs associated
with the Kooi acquisition, plant rationalization expenses, and
decreased margins on certain machine tools as a result of a labor
dispute.
Consumer
Sales from continuing operations increased to $81.9
million for
the third quarter of 1995 from $75.2 million for the same period of
1994 and increased to $236.9 million for the nine months of 1995
from $224.9 million for the same period of 1994. Sales increased
for the third quarter and nine months in part due to three new
product introductions; the Sensonic(TM) Plaque Removal Instrument,
the Pour-Thru Water Filter(TM) device, and the MAXX-PURE(TM) ozone
sanitizing system for swimming pools. Also, sales increased for
commercial and residential heating systems, offset by decreased
sales of pool products as a result of poor weather conditions and a
slowdown in spending on consumer durables. This slowdown is causing
retailers generally to be cautious as they consider inventory
stocking levels. Housewares industry experts expect retailers to
postpone early Christmas orders in the wake of a poor third quarter
performance.
Operating profit from continuing operations increased to $5.6
million for the third quarter of 1995 from $4.0 million for the same
period of 1994 and decreased to $12.2 million for the nine months of
1995 from $14.4 million for the same period of 1994. The 1995
results were adversely affected by advertising and start-up costs
for the three new products discussed above and the decrease in sales
of pool products.
Corporate Expense
Corporate expense increased to $18.9 million for the third
quarter of 1995 from $15.1 million for the same period of 1994 and
increased to $62.3 million for the nine months of 1995 from $49.4
million for the same period of 1994. Corporate expense increased
for the 1995 third quarter primarily due to warranty expenses
related to closed businesses. For the 1995 nine months, corporate
expense increased primarily due to legal and advisory fees
associated with an unsolicited merger proposal and ensuing proxy
contest and increased warranty expenses for closed businesses.
Pension Income
Teledyne's non-cash pension income recorded the amount by
which
the amortization into income of pension surplus and estimated return
on plan assets exceeded the current year's cost of providing
benefits. Pension income before tax was $18.3 million for the third
quarter of 1995 compared to $18.9 million for the same period of
1994 and was $60.5 million for the nine months of 1995 compared to
$56.6 million for the same period of 1994. The change in pension
income was a result of a higher expected return on pension assets
and a change in discount rate used to calculate the pension benefit
obligation partially offset by a change in mortality assumptions.
Other Income
In July 1995, the New Piper
Aircraft Company emerged from
bankruptcy with Teledyne holding 25 percent ownership and an option
to purchase an additional 25 percent in resolution of its major
creditor position. As a result, Teledyne recognized a gain of $5.9
million, included in other income, to reflect Teledyne's ownership
interest in New Piper.
Income Taxes
The Company's effective tax rate decreased to 28 percent
for the
1995 third quarter from 37 percent for the same period of 1994 and
decreased to 35 percent for the 1995 nine months from 41 percent for
the same period of 1994. These decreases resulted from a reduction
in the Company's prior year's tax liabilities.
Teledyne is a technology-based manufacturing company serving
worldwide customers with commercial and government-related aviation
and electronics products; specialty metals for consumer, industrial,
and aerospace applications; and industrial and consumer products.
Teledyne, Inc. and Subsidiaries
(In millions)
Quarter Ended Nine Months Ended
September 30, September 30,
1995 1994 1995 1994
Sales:
Aviation and electronics:
Continuing $224.4 $218.0 $ 785.7 $ 644.3
Discontinued - 29.5 - 107.2
224.4 247.5 785.7 751.5
Specialty metals:
Continuing 212.1 173.2 642.4 524.6
Discontinued 0.3 0.4 1.2 1.3
212.4 173.6 643.6 525.9
Industrial:
Continuing 72.6 77.7 250.9 225.4
Discontinued 1.7 4.1 8.1 19.1
74.3 81.8 259.0 244.5
Consumer:
Continuing 81.9 75.2 236.9 224.9
Discontinued - - - -
81.9 75.2 236.9 224.9
Total:
Continuing 591.0 544.1 1,915.9 1,619.2
Discontinued 2.0 34.0 9.3 127.6
$593.0 $578.1 $1,925.2 $1,746.8
Teledyne, Inc. and Subsidiaries
(In millions except per share amounts)
Quarter Ended Nine Months Ended
September 30, September 30,
1995 1994 1995 1994
Operating Profit (Loss):
Aviation and electronics:
Continuing $ 22.9 $ 20.5 $ 78.2 $(40.2)
Discontinued - 1.4 - (38.9)
Pension income 4.6 3.1 13.6 9.6
27.5 25.0 91.8 (69.5)
Specialty metals:
Continuing 19.7 7.5 66.9 31.7
Discontinued - - - 5.3
Pension income 2.0 2.3 6.2 6.5
21.7 9.8 73.1 43.5
Industrial:
Continuing 3.0 2.7 14.0 2.5
Discontinued 0.2 0.2 0.4 2.2
Pension income 6.5 6.5 19.4 19.4
9.7 9.4 33.8 24.1
Consumer:
Continuing 5.6 4.0 12.2 14.4
Discontinued - - - (3.1)
Pension income - - 0.1 -
5.6 4.0 12.3 11.3
Total Continuing 51.2 34.7 171.3 8.4
Discontinued 0.2 1.6 0.4 (34.5)
51.4 36.3 171.7 (26.1)
Corporate expense:
Salaries and benefits (4.8) (4.8) (16.1) (14.2)
Closed businesses' expenses (5.4) (2.1) (9.9) (6.2)
Other (8.7) (8.2) (36.3) (29.0)
Interest expense (10.5) (11.3) (31.5) (32.3)
Pension income 18.3 18.9 60.5 56.6
Other income 7.5 2.0 64.4 9.4
Income (Loss) Before Taxes 47.8 30.8 202.8 (41.8)
Provision (Credit) for Taxes 13.3 11.5 71.4 (17.0)
Net Income (Loss) 34.5 19.3 131.4 (24.8)
Preferred Stock Dividends 0.4 - 0.9 -
Net Income (Loss) Applicable
to Common Shareholders $ 34.1 $ 19.3 $130.5 $(24.8)
Net Income (Loss)
Per Common Share $ 0.61 $ 0.35 $ 2.35 $(0.45)
Note - In January 1995, the Company sold substantially all
business and assets of Teledyne Electronic Systems at a pretax gain
of $50.7 million, included in other income. Sales and operating
results for Teledyne Electronic Systems for 1994, including charges
of $35.0 million for the nine months of 1994 to resolve certain U.S.
government contracting issues, have been reclassified and presented
in discontinued results. In addition, sales and operating results
for prior periods have been reclassified for realignment of certain
business units and to conform with the September 1995 presentation.
/CONTACT: Rosanne O'Brien of Teledyne, Inc., 310-551-4265; or Fred
Spar or Adam Weiner of Kekst and Company, 212-593-2655/
BIRMINGHAM, Ala., Oct. 19, 1995 -- Torchmark
Corporation
(NYSE: TMK) reported today that net operating income per share,
which excludes realized gains and losses and the related adjustment
to deferred policy acquisition costs, was $2.94 for the nine months
ended September 30, 1995, compared to $2.87 in the year-ago period.
Net income was $200 million, or $2.79 per share, versus $205
million, or $2.83 per share, in the first nine months of 1994.
In the third quarter, net operating income per share was $1.00
compared to $.92 In the year-ago period. Net income was $61
million, or $.85 per share, versus $65 million, or $.90 per share,
in the third quarter of 1994.
In the third quarter, Torchmark wrote off its investment in
Southwestern Life Corporation [now
known as I.C.H. Corporation], which has filed for
Chapter 11
bankruptcy protection. The write-off reduced net income for the
nine months and the third quarter by $15 million or $.21 per share.
The write-off reduced shareholders' equity by $3 million for the
quarter because the investment had been carried at market value at
June 30, 1995.
R.K. Richey, Chairman and CEO, said that pre-tax operating
income increased 15% to $340.3 million:
Millions of Dollars
Excluding
American Income
9 Mos. % 9 Mos. % 9 Mos. %
1995 Prem. 1994 Prem. Prem.
Underwriting Income
before Administrative
Expenses
Life $155.6 27.1% $119.9 27.6% $121.5 26.4%
Health 114.3 20.3% 111.0 19.1% 103.2 19.1%
Annuity 8.9 6.4 8.9
Total 278.8 237.3 233.6
Other Income 2.3 2.7 2.3
Administrative Expenses 79.7 6.9% 67.1 6.5% 73.8 7.3%
Net Investment Income 279.8 244.9 250.0
Required Investment
Income:
Reserves (207.6) (176.6) (187.8)
Interest Income
on DAC 66.7 54.2 56.8
Required Investment
Income:
Net Liabilities (141.0) (122.5) (131.0)
Pre-tax Operating
Income...... 340.3 295.3 281.1
Excluding American Income, which was acquired in late 1994,
underwriting income before administrative expenses declined 2% or
$3.7 million as a result of (1) higher life insurance policy
obligations (42.6% vs. 41.7% of premium), and (2) lower premium
income from health insurance operations ($540.7 vs. $581.4 million).
Higher administrative expenses, partly due to litigation at Liberty
National, and lower investment income also contributed to lower pre-
tax operating income.
American Income's net income for the nine months was $13
million, or $.18 per share.
Life Insurance sales increased 54% to $161.9 million, and sales
by distribution system were as follows:
Millions of Dollars
9 Mo. 95 9 Mo. 94 Change
Direct Response $48.5 $35.0 38%
American Income Agency 36.5 --- ---
United American Agencies 19.0 7.8 144%
Liberty National Home Service 36.4 38.5 (6)%
United Investors Agency 7.7 6.2 23%
Other 13.8 17.5 (21)%
Total 161.9 105.0 54%
The company's emphasis on the growth of life insurance premiums
is illustrated by its annualized premium in force of $854.3 million,
which is an increase of $213.7 million, or 33% from a year ago.
(American Income accounted for $163.5 million of the increase.)
Health insurance annualized premium in force declined 3% to $767.1
million.
Litigation continues to be a drag on Liberty National's
operations, Almost all of the punitive damage litigation facing
Liberty is filed in the state courts of Alabama, a jurisdiction
known for large punitive awards. At year-end 1994, Liberty had
approximately 129 cases pending in Alabama which sought an award of
punitive damages. There are currently 161 such active Alabama
cases. Through the third quarter of 1995, Liberty has been served
with 96 Alabama punitive damage cases, as compared to approximately
106 cases through a similar period last year. In addition, Liberty
faces 77 stayed cases which seek punitive damages arising out of the
exchange of cancer policies. If the Robertson class action
settlement is ultimately affirmed on appeal, these stayed cases will
be concluded. Liberty is awaiting a ruling by the Alabama Supreme
Court in Robertson. There have been no new developments in that
case. However, the longer than expected time to obtain this ruling
has lengthened the duration of the temporary rate-freeze imposed by
the Robertson settlement on a significant portion of Liberty's
cancer policies. This delay has and will continue to have an
adverse effect on the underwriting margin in Liberty's cancer
business. Liberty continues to vigorously defend itself against an
array of cases in the state courts of Alabama, wherein plaintiffs
frequently seek to predicate substantial punitive damage liability
upon nominal actual damages.
Pre-tax noninsurance operating income was up 1% to $71 million.
Waddell & Reed's pre-tax operating income increased 7% to $67
million due to improving sales and increased management fee income.
For the third quarter, Waddell & Reed's pre-tax operating income was
$24.4 million, up 25% from a year ago and up 13% from the second
quarter of 1995. Waddell & Reed's increase in year-to-date earnings
was offset by a decline in Torch Energy's earnings due to last
year's recognition of a nonrecurring $5 million product marketing
gain.
The Black Warrior energy project lost $3 million, or $.04 per
share, on an after-tax basis, compared to $5 million, or $.07 per
share, in the first nine months last year. In the third quarter,
the loss was $600 thousand, or $.01 per share, versus a $2.1 million
loss, or $.03 per share, in the year-ago quarter. Tax-equivalent
net investment income for this nine months, excluding energy
investments, was $287 million, up 6% from $271 million in the year-
ago period.
Total revenue was $1.6 billion, compared to $1.4 billion in the
first nine months of 1994. Life premium grew 32% to $574 million
and health premium declined 2% to $568 million. Financial services
revenue increased 5% to $111 million.
Investment product collections decreased 11% to $828 million for
the nine months. Collections for the quarter were $297 million, up
7% from the second quarter, up 17% from the first quarter, and up
13% from 1994's third quarter. Mutual fund and institutional assets
under management increased 21% from a year ago to $17.8 billion.
Return on common equity excluding SFAS 115 was 18.3%. Total
assets at the end of September were $9.3 billion, and shareholders'
equity was $1.6 billion. Book value per common share was $22.25
($21.42 excluding the effect of SFAS 115).
/CONTACT: Lee Bartlett for Torchmark Corporation, 205-325-4204/
DENVER, Colorado--Oct. 19, 1995--Global
Casinos Inc.
(NASDAQ:GBCS) announced today that it has caused one of its wholly
owned subsidiaries, Casinos U.S.A.
Inc., to file a voluntary
petition under Chapter 11 of the United States Bankruptcy Code.
Casinos U.S.A. owns and operates the Bull Durham Saloon and
Casino in Black Hawk, Colo.
The petition for reorganization came in the wake of unsuccessful
efforts of the company to reach agreements with its secured
creditors to restructure the approximate $4.7 million in mortgages
against the Bull Durham. Certain mortgage holders had already
commenced foreclosure proceedings.
The company will continue to operate the Bull Durham as debtor-
in-possession and hopes to develop a restructuring of its secured
debt with the cooperation of its creditors under a plan of
reorganization. The filing is not expected to have a material
impact upon the overall consolidated operations of Global Casinos,
the parent company.
CONTACT: Global Casinos,
Stephen G. Calandrella, 719/590-4900
DALLAS, Texas--Oct. 19, 1995--George C.
Evans,
Chairman and CEO of Search Capital
Group, Inc. ("Search"), today
reported that Search had reached a preliminary agreement of
understanding with the Official Creditors' Committee that represents
the Noteholders of Search's non-recourse securitization subsidiaries
("Funds") that are under Chapter 11 bankruptcy protection. The
preliminary agreement of understanding's terms are subject to
documentation and will be incorporated in a plan of reorganization.
Such plan and its related disclosure statement is subject to court
and Noteholder approval. The plan provides for the sale of the
Noteholders' notes of approximately $68 million to Search in
exchange for its preferred and common stock.
"We are pleased that we have reached this preliminary agreement
with the Creditors' Committee after weeks of tough negotiations. We
are now in agreement on an structure that will allow us to proceed
with the rebuilding of Search as a premier contender in the sub-
prime auto finance arena." stated Mr. Evans.
On August 14, 1995, the eight Funds filed voluntary petitions
for reorganization under Chapter 11 of the Bankruptcy Code.
Although the bankruptcy filings were made with Search as a co-
proponent of the Funds' joint plan of reorganization, Search,
itself, did not file for bankruptcy protection. The U.S. Trustee's
Office appointed a committee to represent the Noteholders of the
Funds during the bankruptcy proceeding. Since that time Search has
been negotiating the terms of the Joint Plan of Reorganization with
the Committee. To date, the Court has allowed the Funds to continue
operating in an ordinary course of business.
Search Capital Group, Inc. is a specialized financial services
company engaging in the purchase, management and securitization of
used motor vehicle receivables. Search shares (SRCG.OB) are
currently being traded on the OTC Bulletin Board.
CONTACT: George C. Evans,
Chairman, President &
Chief Executive Officer,
Search Capital Group, Inc.
(214) 965-6000
COLUMBIA, Missouri--Oct. 19, 1995--Toastmaster
Inc.,
manufacturer of electrical consumer appliances and time pieces,
today reported decreased sales for the quarter ended September 30,
1995. Sales for the quarter ended September 30, decreased 2.6% to
$56.4 million in 1995 from $57.9 million in 1994. Net income for
the three months ended September 30, 1995 was $1.0 million or $.13
per share, compared to net income of $2.3 million or $.30 per share
for the three months ended September 30, 1994. Sales for the nine
months ended September 30, 1995 decreased 4.6% from $129.6 million
in 1994 to $123.7 million in 1995. The net loss for the nine months
ended September 30, 1995 was $0.7 million or $.10 per share,
compared to net income of $1.6 million or $.21 per share for the
nine months ended September 30, 1994.
"Sales continued to be quite strong in Bread Box(TM) breadmakers
for this quarter," said Robert H. Deming, chairman of the board of
directors. "Nevertheless, our results were negatively impacted by
the continued general slowdown of retail sales and the previously
disclosed bankruptcy of Caldor
Corporation, a major retailer.
Toastmaster negotiated the transfer of its bankruptcy claim for a
cash payment from a third party. The net loss, after the cash
payment, attributable to the Caldor situation was $.08 per share. We
believe we have the right product with excellent retail placement,
and we are hopeful that the fourth quarter of 1995 will show
improved retail performance. A sharp reduction in environmental
products revenues offset a 2% increase in kitchen appliance revenues
and a 6% increase in time products revenues over the third quarter
of 1994.
Gross margins for the third quarter were negatively impacted by
heavy returns from retailers, higher sales of lower margin products
and higher raw material and purchased parts costs than the previous
year. Production rates were slowed during the later part of the
quarter to minimize the inventory in relation to the sales slowdown.
This also negatively impacted gross margins by reducing our
manufacturing efficiencies."
Daniel J. Stubler, president and chief operating officer, said,
"Inventories increased during the third quarter of 1995, to $49.5
million at September 30, 1995 from $45.8 million at September 30,
1994. The increase was primarily due to the slow down in retail
purchasing. We hope to make progress on inventory reductions during
the last quarter of 1995."
TOASTMASTER INC.
Financial Summary and Comparisons
(dollars in thousands, except per share)
Three Month Results
For the Quarter ended September 30,
1995 1994
Net sales $56,356 $57,865
Net income $962 $2,271
Net income per share $.13 $.30
Weighted average common
and common
equivalent shares
outstanding (in thousands) 7,553 7,589
Nine Month Results
For the Period ended September 30,
1995 1994
Net sales $123,711 $129,572
Net income (loss) $(738) $1,561
Net income (loss) per share $(.10) $.21
Weighted average common
and common equivalent shares
outstanding (in thousands) 7,564 7,589
/CONTACT: John E. Thompson of Toastmaster Inc., 314-445-8666/