TUSTIN, Calif.--Nov. 10, 1995--The Cerplex
Group, Inc. (Nasdaq:CPLX) announced its financial results for the
third quarter ended September 30, 1995. As previously announced,
during the third quarter, the Company adopted a plan to discontinue
its end-of- life programs. The Company's continuing operations now
include depot repairs, contract services, spare parts management and
sales, and support services such as help desk services for hardware
and software support.
For the quarter ended September 30, 1995, Cerplex reported net
sales from continuing operations of $35.4 million, a 33.4% increase
compared to net sales from continuing operations of $26.5 million
for the same period last year. The net loss from continuing
operations for the third quarter was $9.4 million, or $0.66 per
share compared to net income from continuing operations of $0.1
million, or $0.01 per share for the same period last year. The net
loss from discontinued operations for the third quarter was $15.6
million or $1.08 per share, compared to net income from discontinued
operations of $1.0 million, or $0.07 per share for the same period
last year.
For the nine month period ended September 30, 1995, net sales
from continuing operations grew to $101.9 million, a 67.5% increase
over the $60.8 million reported for the nine month period last year.
The net loss from continuing operations for the nine month period
was $8.5 million, or $0.59 per share compared to net loss from
continuing operations before extraordinary item of $0.4 million, or
$0.03 per share for the same period last year. The net loss for
discontinued operations for the nine month period was $15.4 million,
or $1.07 per share, compared to net income from discontinued
operations of $5.6 million, or $0.43 per share for the same period
last year.
The net loss from continuing operations for the third quarter
was attributable to reserves and write-offs of approximately $10.7
million relating to receivables from href="chap11.spectra.html">SpectaVision, a customer
operating under the protection of Chapter 11 of the United States
Bankruptcy Code; assets associated with Novadyne, a customer of the
Company; and assets associated with programs which the Company is
renegotiating or winding down. The net loss from discontinued
operations of $15.6 million was primarily attributable to write-offs
relating to inventories, fixed assets, goodwill and other
intangibles, leasehold improvements and facility consolidations
associated with discontinued end-of-life programs.
The Cerplex Group is a leading independent provider of
electronic repair and parts logistics services. The Company has
developed extensive capabilities in the repair, refurbishment,
upgrade and testing of a wide range of electronic equipment
primarily for the computer and telecommunications industries, as
well as for the medical instrumentation and other industries
utilizing electronic equipment.
THE CERPLEX GROUP
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
1995 1994 1995 1994
Net sales $ 35,381 $ 26,530 $ 101,870 $ 60,810
Cost of sales 32,450 22,392 86,888 51,105
Gross profit 2,931 4,138 14,982 9,705
Selling, general and
administrative expenses 13,191 2,935 22,502 7,066
Operating income (loss) (10,260) 1,203 (7,520) 2,639
Equity in income from
joint venture 347 - 1,506 -
Interest expense, net 1,295 920 3,740 3,239
Income (loss) before taxes,
discontinued operations
and extraordinary item (11,208) 283 (9,754) (600)
Taxes on income before
discontinued operations
and extraordinary item (1,775) 156 (1,281) (222)
Income (loss) before
discontinued operations and
extraordinary item (9,433) 127 (8,473) (378)
Discontinued operations,
net of income taxes
Income (loss) from
operations (2,118) 1,028 (1,966) 5,632
Estimated loss from
liquidation of discontinued
operations (13,446) (13,446)
Income (loss) from
discontinued operations (15,564) 1,028 (15,412) 5,632
Income (loss) before
extraordinary item (24,997) 1,155 (23,885) 5,254
Extraordinary item, net of
taxes of $1,457 (2,011)
Net income (loss) $(24,997) $ 1,155 $ (23,885) $ 3,243
Net income (loss) per share
before discontinued
operations and extraordinary
item $ (0.66) $ 0.01 $ (0.59) $ (0.03)
Net income (loss) per share
from discontinued operations (1.08) 0.07 (1.07) 0.43
Net income (loss) per share
from extraordinary item (0.15)
Net income (loss) per share $ (1.74) $ 0.08 $ (1.66) $ 0.25
Weighted average common and
common equivalent shares
outstanding 14,397 14,476 14,405 13,180
THE CERPLEX GROUP
CONSOLIDATED BALANCE SHEETS
(in thousands)
September 30, December 31,
1995 1994
ASSETS
Current Assets:
Cash and cash equivalents $ 1,479 $ 9,442
Accounts receivable, net 30,910 30,433
Inventories 28,539 28,550
Income tax receivable 3,086
- -
Net assets of discontinued operations 4,900 - -
Prepaid expenses and other 5,932 6,845
Total current assets 74,846 75,270
Inventories - - 7,437
Property, plant and equipment, net 15,349 16,296
Investment in joint venture 7,000 5,191
Goodwill 6,571 3,620
Other long-term assets 4,033 12,893
Total assets $107,799 $120,707
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 11,143 $ 7,711
Accrued liabilities 12,554 11,252
Current portion of long-term debt 568 674
Income taxes payable 1,517 865
Total current liabilities 25,782 20,502
Long-term debt, less current portion 65,619 58,920
Long-term obligations,
less current portion 600 1,800
Stockholders' Equity:
Common stock 13 13
Additional paid-in capital 47,508 47,483
Notes receivable from stockholders (223) (299)
Unearned compensation (161) (214)
Accumulated deficit (31,517) (7,632)
Cumulative translation adjustment 178 134
Total stockholders' equity 15,798 39,485
Total liabilities and stockholders'
equity $107,799 $120,707
LONGMONT, Colo.--Nov. 10, 1995--href="chap11.rexon.html">REXON Inc.
(NASDAQ:REXNQ) Friday announced that the Bankruptcy Court has
approved a $4 million loan facility.
The loan facility is being provided by Legacy Storage Systems
International Inc. and a REXON senior management group, each of
which is providing $2 million.
Robert C. Genesi, chairman and CEO, stated: "We are extremely
pleased with the Bankruptcy Court's approval of the Legacy and REXON
management loan facility. This will allow REXON to resume a normal
level of operations rather than the severely restricted level of
manufacturing and shipments at which we have been operating for the
past few months.
"We are greatly appreciative of the continued commitment and
support of REXON's customers throughout this difficult period and
are pleased to be in a position to resume normal service to our
customers."
The company announced the appointment of Ernest H. (Ernie)
Wassmann as president and chief operating officer of REXON/Tecmar.
Wassmann joined REXON in October as vice president worldwide
marketing and sales.
From 1993 until October 1995, Wassmann was vice president
worldwide marketing/distribution for Exabyte Corp. He joined
Exabyte in 1993 when it acquired Tallgrass Technology, where he
served as president and chief executive officer.
The company has closed its St. Petersburg office. The Longmont
facility is the location for the company headquarters.
REXON is dedicated to data storage and systems for the computer
industry. It offers Wangtek quarter-inch cartridge (QIC) and
Digital Audio Tape (DAT) drive product. Tecmar brand solutions
include QICVault, DATaVault, ProLine and ProLine CX.
CONTACT: J. Embry, 310/355-0761
SECAUCUS, N.J.--Nov. 10, 1995--The
Harvey Group
Inc. (the "Company") is pleased to announce that it has received
$1.5 million from an investor group.
This cash infusion represents additional debtor-in-possession
credit support to fund the reorganization plan and the company's
emergence from Chapter 11.
Art Shulman, president stated, "We have used the $1.5 million,
coupled with significant support from our specialty audio/video
vendors and our bank to build more than adequate inventory levels
for the upcoming holiday season. In addition, we will have
sufficient working capital available to support operations."
Shulman continued, "We are now well on our way with our plan of
reorganization and are looking forward to a successful fourth
quarter selling season."
Based in Secaucus, Harvey Electronics is a specialty retailer of
high-quality audio/video consumer electronics and home theater
products with six stores in the Metropolitan New York area.
CONTACT: The Harvey Group Inc.,
Arthur Shulman or Joseph J. Calabrese
201/865-3418 or Fax: 201/865-0342
DALLAS, Nov. 10, 1995 -- Dave & Busters, Inc.
(Nasdaq:
DANB) responded today to the recent news articles regarding the
effects of the bankruptcy filing by href="chap11.edison.html">Edison Brothers Stores, Inc.
(Edison Brothers) on Dave & Buster's (the Company). The Company's
decision to publicly respond to these news articles was due to the
concerns expressed by its shareholders as a result of the
publication of the news articles and to certain inaccuracies
contained in those articles.
As noted in the New York Times article, Edison Brothers does not
view the spin-off as a fraudulent conveyance. Regardless of this
issue, Dave & Buster's and its legal advisors do not believe that
any shareholder who bought common stock of the Company after the
spin-off was completed or during the Company's recently completed
public offering would be affected by any fraudulent conveyance claim
that might be initiated. Additionally, the implication in the New
York Times article that the creditors of Edison could proceed
against assets owned by Dave & Buster's is not legally correct.
Dave & Buster's operates five large, high volume
restaurant/entertainment complexes under the Dave & Buster's name in
the following locations: two in Dallas and one each in Houston,
suburban Atlanta and near downtown Philadelphia. The Company's
newest location in suburban Chicago opens next week on Nov. 16.
/CONTACT: Michael Parver, Michael Parver Associates, Inc.,
404-355-5580/
LONGMONT, Colo.--Nov. 10, 1995--href="chap11.rexon.html">REXON Inc.
(NASDAQ:REXNQ) Friday announced preliminary revenues and earnings
(loss) for its fourth fiscal quarter.
The company stated that it expects to report complete financial
information by the end of November. The company petitioned for
Chapter 11 bankruptcy protection on Sept. 13, 1995.
For the three-month period ended Oct. 1, 1995, revenues are
expected to be approximately $6 million. Losses are expected to be
approximately ($24 million), which includes additional reserves
against inventory and fixed-asset write-down of approximately $5
million.
REXON is dedicated to data storage and systems for the computer
industry. It offers Wangtek 1/4-inch cartridge (QIC) and Digital
Audio Tape (DAT) drive product. Tecmar brand solutions include
QICVault, DATaVault, Proline and Proline CX.
CONTACT: J. Embry, 310/355-0761