NEW YORK -- Jan. 26, 1996 -- Dime Bancorp, Inc.
(NYSE), parent company of The Dime Savings Bank of New York, FSB,
today announced it would downsize its balance sheet by selling
approximately $1.1 billion of primarily mortgage-backed securities,
following the transfer of $3.6 billion of securities to its
"available for sale" securities portfolio.
The sales proceeds will be used to reduce borrowings. Dime also
announced a plan to buy-back up to 2% of its outstanding common
stock.
The $24.1 million pre-tax loss associated with the planned
securities sales, together with $9.8 million in restructuring and
merger-related expense, adversely affected net income for the 1995
fourth quarter and for the full year. As a result, Dime reported
net income of $2.3 million, or $0.02 per common share, for the
fourth quarter and $62.2 million, or $0.57 per common share, for the
year. If the charges related to the fourth quarter securities sales
and restructuring and merger-related expense were excluded, earnings
per share for the fourth quarter and full year would have been $0.20
and $0.74 per share, respectively.
Commenting on the 1995 results, James M. Large, Jr., Chairman
and Chief Executive Officer, said, "As the year progressed, a number
of the benefits of the Dime-Anchor merger became increasingly
evident. Core pre-tax income (pre-tax income less the impact of
restructuring and merger-related expense and non-recurring net gains
(losses) on sales) grew steadily in 1995 from $31.6 million in the
first quarter to $38.9 million in the fourth quarter. The fourth
quarter was also marked by a slight improvement in net interest
income, which, despite the continued relatively flat yield curve,
increased from the prior quarter's level for the first time this
year. In addition, we had 4% growth in fee income as compared to
the third quarter. Loan originations grew sharply over the course
of the year as we strengthened our existing operations and expanded
to new markets. Our loan portfolio grew $266 million during the
quarter to $9.8 billion at year-end 1995. Deposit levels, exclusive
of branch sales, grew during 1995 even as we consolidated the retail
branch system and moved to a new computer system. Importantly, we
have nearly completed the full integration of our operations and, in
1996, we fully expect to exceed the merger's annual cost savings
goal of $50 million. Finally, our asset quality continues to
improve as we reduce the level of non-performing assets while adding
high-quality loans to our portfolio."
Mr. Large added, "The year-end actions announced today are
consistent with Dime's plan to focus on its lending and consumer
banking franchises and reduce its reliance on wholesale funds and
investments. The strategic reduction in our balance sheet takes
advantage of a one-time accounting opportunity and allows us to
reward stockholders through a stock buy-back program. By selling a
sizeable block of relatively lower-yielding, adjustable-rate
mortgage-backed securities, we should--assuming a continuation of
the current interest rate environment--increase our interest rate
spread going forward and reduce future earnings volatility.
Overall, in the current rate environment, these actions will be
slightly accretive to earnings per share and will have a positive
effect on our returns on equity and assets. We also have greater
flexibility in managing our investments and adjusting to varying
rate environments. Finally, we are also positioned for further
downsizing, if that is deemed appropriate."
Stock Buy-Back
Dime said that it will begin to repurchase up to 2% of its
outstanding Common Stock, or approximately two million shares. No
time limit was set to complete the stock buy-back program. The
shares will be purchased at prevailing prices in the open market or
in privately-negotiated transactions, will be placed in the
corporate treasury and may be used in connection with the Company's
employee stock purchase and stock option plans.
Balance Sheet Restructuring
The restructuring of Dime's balance sheet involved increasing
the amount of securities classified as "available for sale" to $4.1
billion by redesignating $3.6 billion of securities previously
designated as "held to maturity," as permitted by recently issued
guidance from the Financial Accounting Standards Board regarding
Statement of Financial Accounting Standards No. 115. Dime said
that it would, in the near term, sell approximately $1.1 billion of
those reclassified securities, with the proceeds of the sales to be
used to reduce wholesale funding.
Operating Results
Net Interest Margin. For the 1995 fourth quarter, the net
interest margin averaged 2.02%, unchanged from the previous quarter,
as the relatively flat yield curve and prepayments on mortgage-
backed securities continued to cause downward pressure on the
margin. Dime noted that its exposure to accelerated premium
amortization will be reduced in the future as a result of the
planned securities sales but that its net interest margin could be
restrained for as long as the current interest rate environment
continues.
Mortgage Banking. Residential loan production for the 1995
fourth quarter was $747.9 million, as compared with $555.4 million
in the immediately preceding quarter and $270.2 million in the 1994
fourth quarter. Dime said that the 1995 fourth quarter originations
included approximately $240 million of loans generated by the two
mortgage banking operations acquired by Dime in the fourth quarter.
Dime noted that, in 1995, National Mortgage Investments, Inc. of
Griffin, GA ranked first in originations in the greater Atlanta
area, while James Madison Mortgage of Fairfax, VA ranked second in
the Washington, DC metropolitan area. The two had combined loan
originations of just over $1.1 billion for the year. Loan servicing
fees were $8.7 million for the three months ended December 31, 1995,
and the residential loan servicing portfolio was approximately $15
billion at year end, of which $9.4 billion was serviced for others.
Non-Interest Expense. For the fourth quarter of 1995, general
and administrative expenses totaled $67.9 million, up from $64.0
million in the immediately preceding quarter. Substantially all of
the increase in expense in the fourth quarter was due to the costs
from the two recently acquired mortgage banking operations. For the
1995 fourth quarter, the ratio of general and administrative expense
to total average assets was 1.31%, and the efficiency ratio was
56.38%. Dime said that the $9.8 million of restructuring and merger-
related expense incurred in the fourth quarter was primarily
attributable to additional real estate consolidation and severance
expenses and should represent the last of such costs, aside from
those associated with the conversion of the former Anchor branches
to Dime's new retail banking software system in the first quarter of
1996.
Asset Quality. The level of non-performing assets, which
consist of nonaccrual loans and other real estate owned, continued
to improve during the 1995 fourth quarter, dropping to $315.8
million, or 1.55% of total assets, at December 31, 1995, down $26.5
million from the end of the 1995 third quarter, and down $100.1
million, or 24.1%, from the $415.9 million reported at year-end
1994. At year-end 1995, the allowance for loan losses was $128.3
million, or 50.29% of nonaccrual loans. Owned real estate expense
was $2.5 million in the three months ended December 31, 1995, down
from $3.4 million in the 1995 third quarter.
Stockholders' Equity and Regulatory Capital. At December 31,
1995, stockholders' equity was $976.5 million. At that date, the
Bank's regulatory capital ratios met the levels required for "well-
capitalized" regulatory status. The Company cautioned that its
larger portfolio of available for sale securities could increase the
future volatility of stockholders' equity, but noted that such
changes should not affect regulatory capital levels. Dime also said
that it would be continuing discussions regarding the Federal
Deposit Insurance Corporation's warrant to purchase 8.4 million
shares of Dime Common Stock.
Dime, at December 31, 1995, had $20.3 billion in assets and
$12.6 billion of deposits. The Bank operates 86 retail banking
branches in the New York City/northern New Jersey metropolitan area
and originates loans throughout the Mid-Atlantic and Southeast
United States.
DIME BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS
OF FINANCIAL CONDITION
Dec. 31, Dec. 31,
(unaudited) 1995 1994
(In thousands)
ASSETS
Cash and due from banks $216,532 $178,984
Money market investments 18,824 28,173
Loans held for sale 139,370 16,621
Securities available for sale 4,070,865 530,714
Securities held to maturity 5,085,736 8,609,897
Federal Home Loan Bank of
New York stock 318,690 265,586
Loans receivable, net:
First mortgage loans 7,820,680 7,368,960
Cooperative apartment loans 1,217,030 1,176,252
Consumer and business loans 792,603 806,410
Allowance for loan losses (128,295) (170,383)
Total loans receivable, net 9,702,018 9,181,239
Other real estate owned, net 60,681 74,002
Accrued interest receivable 118,811 105,529
Premises and equipment, net 112,757 119,099
Capitalized excess servicing 32,604 40,976
Mortgage servicing rights 65,583 62,541
Deferred tax asset, net 223,463 271,736
Other assets 160,686 162,840
Total assets $20,326,620 $19,647,937
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits $12,572,203 $12,811,269
Federal Home Loan Bank of
New York advances 4,602,983 5,319,271
Securities sold under agreements
to repurchase 1,632,453 9,741
Senior notes 197,384 197,200
Other borrowed funds 181,732 232,522
Other liabilities 163,335 172,809
Total liabilities 19,350,090 18,742,812
Stockholders' equity:
Common stock 997 986
Additional paid-in capital 915,210 910,036
Common stock deferred incentive shares -- 2,994
Retained earnings 65,981 3,796
Net unrealized loss on
securities available for sale,
net of related income taxes (5,468) (12,612)
Unearned compensation (190) (75)
Total stockholders' equity 976,530 905,125
Total liabilities and
stockholders' equity $20,326,620 $19,647,937
Note: Prior year amounts reflect reclassifications of in-substance
foreclosed loans and related allowance for losses to loans
receivable
and the allowance for loan losses, respectively, from other real
estate owned, net, as a result of the adoption of Statement of
Financial Accounting Standards No. 114, "Accounting by Creditors for
Impairment of a Loan."
DIME BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS
OF INCOME
For the three months
(unaudited) ended Dec. 31,
(In thousands except per share data) 1995 1994
Interest income $342,657 $316,480
Interest expense 244,014 207,578
Net interest income 98,643 108,902
Provision for loan losses 9,900 22,668
Net interest income after
provision for loan losses 88,743 86,234
Non-interest income:
Loan servicing fees, net 8,727 8,082
Securities and insurance
brokerage fees 3,930 3,588
Net (losses) gains on
sales activities (22,921) 1,581
Banking service fees and other 8,688 8,243
Total non-interest income (1,576) 21,494
Non-interest expense:
General and administrative expense:
Compensation and
employee benefits 31,699 35,403
Occupancy and equipment, net 14,436 15,759
Federal deposit insurance premiums 2,700 8,088
Other 19,071 19,780
Total general and
administrative expense 67,906 79,030
Other real estate owned expense, net 2,475 903
Amortization of mortgage servicing rights 2,982 2,889
Restructuring and merger-related expense 9,775 55,928
Total non-interest expense 83,138 138,750
Minority interest-preferred stock
dividend of subsidiary -- 3,558
Income (loss) before income tax
provision (benefit) 4,029 (34,580)
Income tax provision (benefit) 1,696 (50,741)
Net income $2,333 $16,161
Primary and fully diluted earnings
per common share:
Net income $0.02 $0.15
Primary average common
shares outstanding 109,988 107,702
Fully diluted average common
shares outstanding 110,115 107,702
Note: Prior year amounts reflect the reclassification of the
provision for losses on in-substance foreclosed loans from other
real
estate owned expense, net, to the provision for loan losses as a
result of the adoption of Statement of Financial Accounting
Standards
No. 114, "Accounting by Creditors for Impairment of a Loan."
For the years
(unaudited) ended Dec. 31,
(In thousands except per share data) 1995 1994
Interest income $1,352,757 $1,136,862
Interest expense 947,505 707,785
Net interest income 405,252 429,077
Provision for loan losses 39,650 55,799
Net interest income after
provision for loan losses 365,602 373,278
Non-interest income:
Loan servicing fees, net 34,826 28,213
Securities and insurance
brokerage fees 15,532 16,885
Net (losses) gains on sales activities (12,415) 2,925
Banking service fees and other 32,598 31,244
Total non-interest income 70,541 79,267
Non-interest expense:
General and administrative expense:
Compensation and
employee benefits 131,721 136,786
Occupancy and equipment, net 58,285 56,447
Federal deposit insurance premiums 21,373 31,214
Other 74,522 70,027
Total general and
administrative expense 285,901 294,474
Other real estate owned expense, net 12,892 11,013
Amortization of mortgage servicing rights 12,107 9,664
Restructuring and merger-related expense 15,331 58,258
Total non-interest expense 326,231 373,409
Minority interest-preferred stock
dividend of subsidiary -- 11,433
Income before income tax provision
(benefit) and cumulative effect
of a change in accounting principle 109,912 67,703
Income tax provision (benefit) 47,727 (53,138)
Income before cumulative effect
of a change in accounting principle 62,185 120,841
Cumulative effect of a change in
accounting principle for goodwill -- (92,887)
Net income $62,185 $27,954
Primary and fully diluted earnings
per common share:
Income before cumulative effect
of a change in accounting principle $0.57 $1.12
Cumulative effect of a change
in accounting principle -- (0.86)
Net income $0.57 $0.26
Primary average common
shares outstanding 109,742 107,668
Fully diluted average common
shares outstanding 109,862 107,700
Note: Prior year amounts reflect the reclassification of the
provision for losses on in-substance foreclosed loans from other
real
estate owned expense, net, to the provision for loan losses as a
result of the adoption of Statement of Financial Accounting
Standards
No. 114, "Accounting by Creditors for Impairment of a Loan."
DIME BANCORP, INC. AND SUBSIDIARIES
SELECTED FINANCIAL INFORMATION
(unaudited) For the three
months
(Dollars in thousands ended Dec. 31,
except per share data) 1995 1994
Performance Ratios: (1)
Interest rate spread 1.92% 2.19%
Net interest margin 2.02% 2.28%
General and administrative expense
as a percentage of average assets 1.31% 1.58%
Return on average assets 0.04% 0.32%
Return on average stockholders' equity 0.95% 7.21%
Average Balances:
Interest-earning assets $20,069,899 $19,339,012
Interest-bearing liabilities $19,647,652 $18,933,606
Total assets $20,785,866 $20,028,144
Stockholders' equity $983,318 $897,007
For the years
ended Dec. 31,
1995 1994
Performance Ratios: (1)
Interest rate spread 1.96% 2.26%
Net interest margin 2.05% 2.36%
General and administrative expense
as a percentage of average assets 1.39% 1.56%
Return on average assets 0.30% 0.15%
Return on average stockholders' equity 6.56% 3.25%
Average Balances:
Interest-earning assets $19,779,008 $18,209,849
Interest-bearing liabilities $19,398,380 $17,770,296
Total assets $20,500,594 $18,828,059
Stockholders' equity $948,113 $860,124
At At
Dec. 31, Dec. 31,
1995 1994
Regulatory Capital Ratios:
Tangible 5.16% 4.98%
Leverage 5.16% 5.00%
Risk-based 12.01% 11.41%
Tier 1 risk-based 10.76% 10.34%
Book value per common share (2) $9.03 $8.43
Asset Quality:
Total non-accrual loans and other
real estate owned, net $315,800 $415,866
Non-accrual loans and other
real estate owned, net, as a
percentage of total assets 1.55% 2.12%
Allowance for loan losses as a
percentage of non-accrual loans 50.29% 49.84%
Financial Condition and Other Data:
Interest-earning assets $19,463,798 $18,802,613
Interest-bearing liabilities $19,186,755 $18,570,003
Loans serviced for others $9,514,560 $8,713,047
(1) Ratios have been annualized.
(2) Assumes the warrants issued to the Federal Deposit Insurance
Corporation to acquire 8.4 million shares of Dime Bancorp, Inc.
common stock at $.01 per share were exercised.
Note: Prior year amounts reflect reclassifications of in-substance
foreclosed loans and related allowance for losses to loans
receivable
and the allowance for loan losses, respectively, from other real
estate owned, net, as a result of the adoption of Statement of
Financial Accounting Standards No. 114, "Accounting by Creditors for
Impairment of a Loan."
CLEVELAND, Jan. 26, 1996 -- The
LTV Corporation (NYSE:LTV) today announced net income for 1995 of
$184.8 million ($1.71 per share), an improvement of $57.7 million, or
45%, over the net income of $127.1 million ($1.29 per share) for 1994.
Sales totaled $4.28 billion for 1995, an increase of 1% from 1994,
reflecting higher average selling prices on shipment volumes that
approximated the previous year.
LTV had net income of $34.8 million ($0.32 per share) for the
fourth quarter of 1995. This compares with 1994 fourth quarter net
income of $40.2 million ($0.37 per share). Sales in the fourth
quarter of 1995 decreased to $1.04 billion, an 8% change from the
1994 quarter on shipments totaling 2.0 million tons, down by 96,000
tons from the fourth quarter of 1994.
LTV's Chairman and Chief Executive Officer, David H. Hoag, said,
"We are pleased with the significant improvement in our 1995 annual
results; however, the 1995 fourth quarter earnings were less than
the year-ago period due to lower prices in the spot market and
reduced shipments. The market softness during the second half of
1995 was influenced by decreased orders from service centers, as
they reduced inventories, and slightly slower economic growth as
manifested in reduced shipments to auto, appliance and other
consumer durable goods manufacturers. While our mix of products
sold in the fourth quarter of 1995 improved over the third quarter
of 1995, it was less favorable versus the year-ago period because of
increased shipments of hot rolled steel to export markets and
decreased shipments of value-added products to our durable goods
markets."
Mr. Hoag went on to say, "We have been experiencing strong rates
of incoming orders for first quarter 1996 delivery, and based on
current expectations, we believe steel demand for the year will
approximate that of 1995 with LTV facilities operating at high
levels of utilization. As a result, steel prices have recently
stabilized after decreasing in the second half of 1995. On January
3, 1996, we announced a spot market steel price increase of
approximately 3% effective for new orders placed for shipment
February 4, 1996 and after. Without further price improvements in
1996, prices will not return to 1995 levels, which will adversely
impact our results compared to 1995. The effect of the price
increase will provide little benefit to the first quarter but should
improve second quarter results as the price increases are realized
in spot market business. Other efforts to improve the Company's
profit margins will continue, with emphasis on achieving higher
levels of quality and productivity while continuing to pursue
aggressively all opportunities to reduce costs throughout the
Company."
Income before income taxes and discontinued operations for 1995
was $310.8 million, an increase of $108.1 million, or 53%, over
1994. The benefits of higher average selling prices and improved
interest income were partially offset by additional 1995 costs
related to the June 1994 labor agreement and higher purchased
material prices. During 1995, the Company fully utilized its
primary steelmaking capacity with raw steel production of 8.46
million tons increasing by 209,000 tons over 1994 levels.
Income before income taxes and discontinued operations totaled
$53.3 million for the 1995 fourth quarter, a decrease of $12.8
million, or 19%, below the same period in 1994. The reduction in
operating results in the 1995 fourth quarter versus the year-ago
period was caused by lower spot market steel prices and lower
shipments, partially offset by lower per-unit production costs. The
1995 fourth quarter was positively impacted by pretax gains of $4.2
million related to a liquidation of LIFO inventories and $3.8
million of net favorable cost adjustments, offset by a $4.5 million
charge for the reorganization of sales and marketing functions, and
costs of $3.7 million related to a blast furnace repair outage.
During the fourth quarter of 1995, the Company fully utilized
its primary steelmaking capacity with raw steel production of 2.12
million tons increasing by 38,000 tons compared with the same
quarter of 1994. During October 1995, the Company began a routine
scheduled repair outage of a blast furnace at the Cleveland Works,
which was completed in less than four weeks. Production in the 1994
fourth quarter was impacted by a scheduled blast furnace repair
outage at the Indiana Harbor Works that began in early September and
was completed in early November.
Financial Position and Liquidity
Cash totaled $265.9 million and marketable securities were
$457.2 million at December 31, 1995. Also, approximately $264
million was available for borrowings under the Company's credit
facilities at year-end. During 1995, cash provided by operating
activities totaled $756 million, or $95 per ton. Major uses of cash
during 1995 included contributions to the Company's pension plans,
capital expenditures, investments in the Trico Steel Company joint
venture and payments on long-term debt.
"During the fourth quarter, the Company continued its
significant reduction of pension liabilities by making contributions
totaling $280 million, which primarily represents prepayments of
funding amounts due in 1996. For all of 1995, the Company's
restored pension plan contributions totaled $473 million, and an
additional $37 million prepayment was made on January 2, 1996.
These contributions, along with $41 million of 1995 long-term debt
repayments, further enhance our capital structure. The Company's
pension plan assets were 71% of projected benefit obligations at
December 31, 1995," said Mr. Hoag.
Business Process Reengineering
The Company is continuing its comprehensive redesign of critical
business processes to strengthen customer service, increase
productivity and reduce costs. As part of such effort, during
October 1995, LTV announced and began a reorganization and
centralization of certain sales and marketing functions. A pretax
charge of $4.5 million in the 1995 fourth quarter represents the
costs associated with the sales and marketing reorganization. Also,
in September, LTV reached a long-term agreement with a large
technology service organization to manage LTV's information systems
and data processing functions. A pretax charge of $5 million for
one-time transitional and personnel costs related to this action was
made in the third quarter of 1995.
The LTV Corporation
CONSOLIDATED STATEMENT OF INCOME
(dollars in millions, except per share data)
Three Months Ended Year Ended
December 31, December 31,
1995 1994 1995 1994
Sales $1,044.9 $1,130.4 $4,283.2 $4,233.3
Costs and expenses:
Cost of products sold 898.8 981.8 3,620.9 3,668.6
Depreciation and
amortization 62.5 59.0 251.9 241.8
Selling, general and
administrative 39.7 31.7 142.2 133.2
Net interest and other
income (9.4) (8.2) (42.6) (13.0)
Total 991.6 1,064.3 3,972.4 4,030.6
Income before income taxes
and discontinued
operations 53.3 66.1 310.8 202.7
Income tax provision(A):
Taxes payable (refundable) 0.1 0.6 2.0 (1.5)
Taxes not payable in cash 18.4 24.9 115.3 74.7
Total 18.5 25.5 117.3 73.2
Income from continuing
operations 34.8 40.6 193.5 129.5
Discontinued operations(B) -- (0.4) (8.7) (2.4)
Net income $34.8 $40.2 $184.8 $127.1
Earnings per share
Primary:
Continuing operations $0.32 $0.37 $1.79 $1.31
Discontinued operations -- -- (0.08) (0.02)
Net income $0.32 $0.37 $1.71 $1.29
Fully diluted:
Continuing operations $0.32 $0.36 $1.76 $1.29
Discontinued operations -- -- (0.08) (0.02)
Net income $0.32 $0.36 $1.68 $1.27
Average number of common
shares used in per share
calculation (thousands):
Primary 108,303 109,213 108,298 98,706
Fully diluted 113,432 114,341 113,431 103,837
Raw steel production (millions
of tons) 2.124 2.086 8.462 8.253
Steel plant operating rate 102% 100% 102% 99%
Steel shipments (millions
of tons) 2.004 2.100 7.961 7.969
Active employees -- -- 14,400 15,300
(A) The Company is required to record income tax expense at
statutory rates. However, it is able to use its significant income
tax loss carryforwards to minimize its actual income tax payments.
(B) On August 1, 1995, LTV completed the sale of its energy
products segment, Continental Emsco Company, which is reflected as a
discontinued operation in LTV's financial statements for all periods
presented.
The LTV Corporation
CONDENSED CONSOLIDATED BALANCE SHEET
(in millions) December 31,
1995 1994
ASSETS
Current assets
Cash and cash equivalents $265.9 $335.4
Marketable securities 457.2 357.5
Total 723.1 692.9
Receivables 396.1 464.5
Inventories 742.5 751.6
Other 8.7 118.5
Total 1,870.4 2,027.5
Investments and other noncurrent assets 369.5 308.6
Property, plant and equipment 3,140.2 3,189.0
Total $5,380.1 $5,525.1
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $255.0 $267.2
Other current liabilities 591.7 569.9
Total 846.7 837.1
Noncurrent liabilities
Long-term debt 150.4 183.1
Postemployment health care and other
insurance benefits 1,598.4 1,633.4
Pension benefits 988.7 1,138.7
Other 420.7 450.0
Shareholders' equity 1,375.2 1,282.8
Total $5,380.1 $5,525.1
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(in millions) Year Ended
December 31,
1995 1994
Operating activities
Income from continuing operations $193.5 $129.5
Adjustments to reconcile income to net cash
provided by operating activities:
Proceeds from antitrust litigation -- 171.0
Depreciation and amortization 251.9 241.8
Income tax provision not payable in cash 115.3 74.7
Defined benefit pension expense 124.0 119.8
Postemployment benefit payments (more)
less than related expense (7.6) 18.5
Contribution to a VEBA Trust (19.1) --
Changes in assets and liabilities and other 98.2 (39.2)
Net cash provided by operating activities 756.2 716.1
Investing activities
Capital expenditures (204.8) (234.0)
Investment in Trico Steel Company (89.2) (0.9)
Net purchases of marketable securities (99.7) (357.5)
Proceeds from dispositions of discontinued
operations, businesses and properties 94.4 184.2
Other (9.5) (13.6)
Net cash used in investing activities (308.8) (421.8)
Financing activities
Issuance of common stock -- 257.2
Pension funding to restored plans (472.6) (642.2)
Payments on long-term debt (41.1) (2.5)
Other (3.2) 22.3
Net cash used in financing activities (516.9) (365.2)
Net decrease in cash and cash equivalents $(69.5) $(70.9)
Net increase in cash, cash
equivalents and marketable securities $30.2 $286.6
BLUE BELL, Pa., Jan. 26, 1996 -- Unisys Corporation (NYSE:
UIS) today reported a net loss for the fourth quarter ended December
31, 1995, of $676.8 million, or $4.12 per share. Included is a
restructuring charge of $581.9 million, or $3.39 per share, covering
the one-time cost of eliminating more than 7,900 positions, future
consolidation of office facilities and manufacturing capacity, and
the discontinuance of certain products and programs. Also included
is a charge of $88.6 million, or 51 cents per share, covering loss
provisions for certain services contracts. The restructuring
actions are now expected to generate annualized savings in excess of
$500 million by the end of 1996 and $600 million by the end of 1997.
In announcing its restructuring in October, the company said it
expected savings to be in excess of $400 million.
Revenue in the quarter grew five percent to $1.84 billion
compared to $1.75 billion a year ago. The company said its revenue
growth was led by strong, double-digit growth in the U.S. market.
James A. Unruh, Unisys chairman and chief executive officer,
said, "Sweeping changes and revamping of our resources involve much
more than a downsizing. On January 2, our three new business units
- Information Services, Computer Systems and Customer Services
- began operating in the marketplace after several months of careful
planning. Each unit now has its own salesforce and the
responsibility and accountability to drive its business. The
changes which involved very difficult decisions that affected our
employees, are the result of a tremendous worldwide effort by all
Unisys employees guided by 22 transition teams. Actions resulted
from a stringent review of programs and processes, and are designed
to drive revenue and profit growth as we unleash the potential of
each of these businesses, to grow new business, maintain the synergy
between units that the majority of our client base depends on, and
significantly reduce our cost base. Our plan is for a return to
profitability in 1996 despite potential disruptions from
restructuring actions, particularly in the first quarter."
The company said that on a pre-tax basis the restructuring
charge was $717.6 million including $436.6 million for employee
reductions, $218.6 million for consolidation of office facilities
and manufacturing capacity, and $62.4 million for product and
program discontinuances. Cash requirements for these charges are
expected to be about $400 million in 1996 and about $150 million in
1997. However, depending on the timing of implementation, cash
savings will partially offset the 1996 cash requirement and more
than offset the 1997 amount.
The pre-tax charge for certain services contracts was $129.0
million. It was primarily related to a few large multi-year, fixed
price, systems integration projects.
Unisys said cash flow from operations in the quarter exceeded
$300 million. Cash and marketable securities at year-end were
approximately $1.1 billion. Unisys announced that its bank
syndicate had waived the covenants in its revolving credit facility
impacted by the fourth quarter restructuring charge. The company
said that borrowings under the facility, which runs until May 1996,
are subject to approval by the bank group. The company has never
utilized the facility and does not expect to do so.
Unruh said, "Although we were disappointed in our financial
results in 1995, we were encouraged by continued strong revenue
growth in information services. Services grew 21 percent in the
quarter and 25 percent for the year and now provides 35 percent of
total revenue compared to 23 percent two years ago. But as our
results indicate, margins have been under pressure. This is being
aggressively addressed by a new information services management
team."
Unisys said that total orders in the quarter showed good growth.
Strong, double-digit growth was experienced in the U.S. market while
international orders were flat. Products and services registering
the strongest order gains in the quarter were information services,
software and personal computers.
For the twelve months ended December 31, 1995, the loss per
share was $4.35 compared to a loss per share of 11 cents a year
earlier. Revenue was $6.20 billion in 1995 compared to $5.98 billion
in 1994. The company said that it finalized the purchase price
adjustment process in connection with the sale of its defense
business to Loral Corporation in the fourth quarter and recorded a
net loss of $9.8 million, or 6 cents per share, on the transaction.
Unruh emphasized that the new simplified three businesses/one
company structure replaces a more complex, higher-cost matrixed
organization. The old organizational structure served the company
well as Unisys began to move beyond its traditional niche as a
supplier of mainframe technology, he said. Unisys built significant
new capabilities over the past several years in information services
and open systems that are critical in providing total information
management solutions for rapidly emerging networked computing
environments. "Since 1992, Unisys business segments growing revenue
at double-digit rates have moved from 15% to 42% of total revenue,"
Unruh said. "Going forward, we must accelerate a profitable
portfolio transition into higher growth business segments serving an
expanding market of traditional and new customers. This requires a
simpler, less costly, more flexible business structure.
"Each of our businesses are now better structured and equipped
to develop "best of class" new products and services in their core
areas. That will benefit our installed base where more than 80% of
our customers deal with two of the three Unisys businesses and more
than 50% deal with all three. And that capability will be the key
to a significant increase in new business, a Unisys priority.
"Overall, we will benefit from the increasingly crucial role
information technology plays with our clients in achieving
competitive advantage in support of their overall business
strategy." Unruh said, "There is growing willingness in the ranks of
management to recognize information for what it is - an asset, a
store of value to be tapped, turned over and realized for the
benefit of customers, clients, shareholders and, in the case of
government entities, taxpayers too. There are only a very few
companies with the services, technology and global support to help
clients with an integrated approach to change the way they use
information for competitive advantage and to better serve their
customers. Our new structure will put us in a very competitive
position in this market."
UNISYS CORPORATION
CONSOLIDATED STATEMENT OF INCOME
(Millions, except per share data)
Three Months Year
Ended December 31 Ended December 31
1995 1994 1995 1994
Revenue
Sales $ 766.7 $ 806.9 $2,646.3 $2,877.1
Services 716.4 594.3 2,198.1 1,759.4
Equipment maintenance 355.6 347.8 1,357.9 1,341.7
1,838.7 1,749.0 6,202.3 5,978.2
Costs and expenses
Cost of sales 537.3 458.6 1,611.0 1,568.7
Cost of services 848.0 477.1 2,030.4 1,374.0
Cost of equipment
maintenance 333.6 261.1 965.7 872.7
Selling, general and
administrative 772.6 485.6 1,883.8 1,544.8
Research and development 139.2 125.5 409.5 463.6
2,630.7 1,807.9 6,900.4 5,823.8
Operating income (loss) (792.0) (58.9) (698.1) 154.4
Interest expense 51.0 50.6 202.1 203.7
Other income, net 1.7 2.5 119.1 63.9
Income (loss) from
continuing operations
before income taxes (841.3) (107.0) (781.1) 14.6
Estimated income taxes
(benefit) (174.3) (31.0) (153.8) 2.5
Income (loss) from
continuing operations
before extraordinary item (667.0) (76.0) (627.3) 12.1
Income from discontinued
operations (9.8) 23.7 2.7 96.1
Extraordinary item --- --- --- (7.7)
Net income (loss) (676.8) (52.3) (624.6) 100.5
Dividends on preferred
shares 30.2 30.0 120.3 120.1
(Loss) on common shares $ (707.0) $(82.3) $(744.9) $(19.6)
(Loss) per common share
Primary
Continuing Operations $(4.06) $(.62) $(4.37) $(.63)
Discontinued Operations (.06) .14 .02 .56
Extraordinary Item --- --- --- (.04)
Total $(4.12) $(.48) $(4.35) $(.11)
Fully diluted
Continuing Operations $(4.06) $(.62) $(4.37) $(.63)
Discontinued Operations (.06) .14 .02 .56
Extraordinary Item --- --- --- (.04)
Total $(4.12) $(.48) $(4.35) $(.11)
Shares used in the per share
computations (thousands):
Primary 171,400 170,934 171,238 170,752
Fully diluted 171,400 170,934 171,238 170,752
WESTBORO, Mass. -- Jan. 26, 1996 -- Banyan Systems
Inc. (NASDAQ:BNYN) today reported its financial results for the
fourth quarter and full year ended December 31, 1995.
In conjunction with this announcement, the company also reported
that it will incur additional costs related to a previously
announced reorganization of its operations, which resulted in the
creation of two divisions: Enterprise Networking and Internet
Products. On November 8, 1995, the company announced a one-time pre-
tax restructuring charge to provide for facility consolidations,
severance costs related to a ten percent reduction of the company's
workforce and other associated costs related to the reorganization.
As a result of a consolidation of distribution activities and a
simplification in product configurations, packaging and related
asset write-offs, the company will record an additional pretax non-
recurring charge of approximately $8.0 million in the fourth quarter
ended December 31, 1995. This brings the company's total charges
for the fourth quarter of 1995 to $15.8 million.
Banyan's revenues for the fourth quarter ended December 31,
1995 were $28.0 million, compared with $41.1 million in the same
period of 1994. Banyan's net loss for the quarter was $17,308,000,
or $1.03 per share, compared with net income of $4,658,000, or $0.26
per share, for the fourth quarter of 1994. The company's net loss
for the fourth quarter of 1995 reflects total after-tax charges of
$11,061,000, or $0.66 per share.
For the year ended December 31, 1995, Banyan reported revenue
of $129.7 million, compared with $150.1 million in 1994. The net
loss for the year was $21,360,000, or $1.27 per share, compared with
net income of $4,987,000, or $0.27 per share in 1994. Results for
1995 reflect total after-tax charges of $11,061,000, or $0.66 per
share. Excluding these charges, Banyan's net loss would have been
$10,299,000, or $0.61 per share. Results for 1994 include the
impact of a one-time charge of $10,916,000 after taxes due to the
acquisition of Beyond Incorporated in the first quarter of 1994.
Banyan's software revenues in 1995 were $105.2 million,
compared with $118.9 million in 1994. These results reflect lower
software sales, primarily of the company's current VINES+ and ENS+
offerings, as well as delays in the release and localization of some
products. As a result of the decline in revenue, gross margins in
1995 were 77 percent, compared with 80 percent in 1994. Banyan's
international sales were $29.7 million, compared with $29.0 million
one year ago. Revenue in the Asia/Pacific region expanded to $8.9
million in 1995 from $5.2 million in 1994, aided by several key
partnerships, including joint ventures with NTT and Marubeni, both
of which purchased minority interests in Banyan's Japanese
subsidiary.
Commenting on Banyan's financial results, David C. Mahoney,
chairman and chief executive officer, said, "We are clearly
disappointed with our performance in 1995. During the past several
months, we have taken actions, including a significant corporate
restructuring, to address the issues which began affecting our
results in 1995. The realignment and consolidation of our
distribution activities will enable us to increase the efficiency of
our distribution and allow for the updating of our product
configurations. Banyan is in the process of simplifying and
consolidating software packaging to accelerate our customers'
transition to CD-ROM configurations and electronic-based product
delivery. We believe that these actions should contribute to the
improvement of our overall effectiveness and to the reduction of
costs while also allowing us to take advantage of the latest
production and delivery technologies."
"During the quarter, we made progress toward strengthening our
sales and marketing efforts as well as broadening our product
offerings," Mahoney continued. "With our transition to a district-
centric sales structure, we are fortifying our relationships with
our premier resellers and network integrators. In fact, Banyan's
channel partners reported increased customer `sell through' in the
fourth quarter and reduced levels of channel inventory compared with
the third quarter. In addition, during the quarter we expanded our
partnership with Attachmate+ Corporation to enhance our host and
Internet connectivity solutions to include EXTRA!+ Personal Client
for Windows, Windows 95 and Windows NT and RLN+ remote access
products. Capitalizing on the global demand for electronic mail
applications, we completed the roll out of our BeyondMail+ offerings
to our entire sales force, which should help expand our business
with both new and existing customers. Responding to our
international customers' needs, we delivered Enterprise Network
Services offerings for leading regional computing platforms as well
as shipped localized versions of BeyondMail in French, Spanish,
German, Japanese and Korean."
Mahoney concluded, "We believe that Banyan's new divisional
structure will better position the company to bring our REDWOOD
vision to the commercial marketplace. During the quarter, we took
strides toward this goal with the delivery of BeyondMail SMTP which
provides for access to the World Wide Web and Collabra Share+
version 2.0.In addition to developing new Internet-related products,
our 1996 product development initiatives also include enhancing
VINES, continued partnership programs with Universal StreetTalk, as
well as extending our directory and messaging offerings into the NT
environment. We will continue to invest in delivering our products
to allow customers to expand their enterprise networks to include
remote employees, business partners and suppliers."
The company noted that each of the above forward-looking
statements were subject to change based on various important
factors, including without limitation competitive actions in the
marketplace buying trends by business. Further information on
potential factors which could affect the company's financial results
are included in the company's Form 10-Q for its third fiscal quarter
ended September, 1995, filed with the SEC, and the company's Form 10-
K for the 1995 fiscal year, which is anticipated to be filed with
the SEC at the end of March, 1996.
The consolidated statements of operations and condensed balance
sheets follow.
About Banyan Systems Incorporated:
Banyan Systems (NASDAQ:BNYN) is a pioneer and leader in
enterprise network services. These products make it easy to find,
share and manage information and resources within enterprise
networks. Founded in 1983 and headquartered in Westboro, Mass.,
USA, the company markets products worldwide through authorized
network integrators, resellers and international distributors.
Banyan can be reached on the World Wide Web at href="http.banyan.com">http.banyan.com
StreetTalk+ is a product of Banyan Systems Incorporated and not
a product of McCarthy, Crisanti & Maffei, Inc.
Banyan Systems Incorporated
Consolidated Statements of Operations
(in thousands, except per share amounts)
Three months ended Years ended
December 31, December 31,
1995 1994 1995 1994
Revenues:
Software $22,149 $32,374 $105,160 $118,899
Hardware 540 3,298 3,464 10,770
Support and training 5,288 5,410 21,059 20,444
Total revenues 27,977 41,082 129,683 150,113
Cost of related
revenues 7,622 7,572 29,562 29,659
Gross margin 20,355 33,510 100,121 120,454
% 73% 82% 77% 80%
Operating expenses:
Sales and marketing 20,488 17,891 80,810 64,395
Product development 6,730 5,393 24,502 20,507
General and
administrative 3,560 3,567 13,208 12,405
Restructuring and
other charges 15,802(a) - 15,802* -
Purchased research
and development - - - 17,606(b)
Total operating
expenses 46,580 26,851 134,322 114,913
(Loss)/income from
operations (26,225) 6,659 (34,201) 5,541
Other income, net 2,377 302 3,686 1,521
(Loss)/income before
income taxes (23,848) 6,961 (30,515) 7,062
(Benefit)/provision
for income taxes (6,540)(a) 2,303 (9,155)(a) 2,075(b)
Net (loss)/income ($17,308) $4,658 ($21,360) $4,987
Net (loss)/income
per common share ($1.03) $0.26 ($1.27) $0.27
Weighted average number
of common and dilutive
common equivalent
shares outstanding 16,758 18,091 16,797 18,195
Condensed Consolidated Balance Sheets
( in thousands)
December 31, December 31,
1995 1994
ASSETS
Cash and marketable securities $31,263 $50,695
Accounts receivable, net 24,288 33,482
Income tax receivable 6,042 -
Other current assets 10,454 8,694
Property, equipment and other assets 21,896 22,801
Deferred tax asset 12,366 9,288(b)
Total assets $106,309 $124,960
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $36,378 $28,419
Deferred revenue 22,323 21,463
Other liabilities 3,266 1,199
Stockholders' equity 44,342 73,879
Total liabilities and
stockholders' equity $106,309 $124,960
(b) In the first quarter of 1994, the company took a one time charge
of $17,606 with an associated deferred tax benefit of $6,690
resulting in an after tax charge of $10,916 related to the
acquisition of Beyond.
CONTACT: Banyan Systems Inc.,
Jeffrey D. Glidden
or
Richard M. Spaulding,
508/871-2271
ANAHEIM, Calif. -- Jan. 26, 1996 -- href="chap11.clothestime.html">The Clothestime Inc.Friday clarified
information relating to payments made to executive officers which was
reported in a local newspaper.
Contrary to the published report, The Clothestime Inc.
terminated two employee benefit plans in September of 1994 and
distributions under the plans occurred in September and October of
that year. These payments were made over fifteen months prior to
the company's filing for protection under Chapter 11 of the United
States Bankruptcy Code, in contrast to the report that executive
officers received payments up to the day prior to the filing.
Under the plans, which began in 1991, executives could elect to
defer up to a certain percentage of their compensation and the
company would make a supplemental contribution. All decisions to
make contributions were made by the company's Compensation
Committee, which was and is comprised of all independent directors
of the company.
The amounts which were deferred under the plan, as well as the
company's contributions, were disclosed in the annual proxy
statement filed with the U.S. Securities and Exchange Commission and
delivered to the company's stockholders in connection with the
annual meeting. One of the effects of a termination of the plans
was a decrease in cash compensation to be paid to the key employees
because of the automatic matching provision of the plan.
On Dec. 8, 1995, The Clothestime Inc. and certain of its
subsidiaries filed voluntary petitions for relief under Chapter 11
of the United States Bankruptcy Code. Prior to the filing, the
Anaheim-based retailer operated 528 stores and is now in the process
of closing 137 of them.
CONTACT: Clothestime,
Bob Mathews, 714/779-5881, ext. 2212
BRAINTREE, Mass., Jan. 26, 1996 --
Bradlees, Inc. (NYSE:BLE)
announced today the appointment of Judy Dunning to the position
of Vice President - Strategic Planning. In her new position, Ms.
Dunning will be responsible for merchandise plan development,
merchandise forecasting and, among her other duties, will
participate in the development of merchandise systems. She will
report to Mark A. Cohen, Chairman and Chief Executive Officer.
Previously, Ms. Dunning was Vice President - Merchandise
Planning for Rich's/Lazarus/Goldsmiths Department Stores, a division
of Federated Department Stores, Inc. She began her retail career as
a Buyer for Shillitos Department Stores in 1972 and went on to hold
the positions of Corporate Area Researcher and Merchandise Planner
for Federated Department Stores, Inc. from 1978 to 1984. In 1985,
Ms. Dunning joined the merchandise planning area of Woodward &
Lothrop Department Stores and in 1988, she assumed the position of
Vice President - Merchandise Planning for Lazarus Department Stores.
Ms. Dunning is a graduate of Ursuline College. She and her husband,
Tom, are the parents of two boys, Matt and Will.
Commenting on her appointment, Mark Cohen said, "Ms. Dunning has
broad based experience in merchandise plan development and
administration. She was a critical player in the successful
turnaround that took place at Lazarus Department Stores, and we are
delighted at the opportunity to have Judy join our team."
Mr. Cohen went on to say, "This appointment signals the
completion of a comprehensive year long overhaul of Bradlees
executive ranks. Though some positions remain to be established, we
have essentially reorganized virtually all senior management and
middle management in our company as a reflection of our need to
fundamentally re-engineer our business. This effort began well
before we were forced to file for Chapter 11, and has taken on even
greater importance since that time. We have assembled a team of
executives who understand the challenge of turnarounds and are
committed to Bradlees' revival."
Bradlees, Inc. operates 134 discount department stores in Maine,
New Hampshire, Massachusetts, Connecticut, New York, New Jersey,
Pennsylvania and Rhode Island. Bradlees' common stock is listed and
traded on the New York Stock Exchange under the symbol "BLE". For
additional Bradlees press releases, please call 1-800-758-5804,
extension 105750
CONTACT: Coleman Nee of Bradlees, 617-380-8354
SAN MATEO, Calif. -- January 26, 1996 --In an
effort to counter disappointing sales and profitability trends,
Software Professionals, Inc. (NASDAQ: SFTW) announced today the
implementation of a corporate restructuring involving a 12%
reduction in its work force (eight employees) and the write-down of
certain software technology for the Tandem computer marketplace.
The Company also announced that under mutual agreement, its Vice
President, Sales and Services will step down and leave the Company
following a transition period.
Based on decisions made in a business review completed late in
1995, Software Professionals will record a one-time charge of
approximately $1.0 - $1.2 million in the fourth quarter of 1995
relating to the technology write-down. The charge is primarily
related to Tandem technology acquired in previous years that has
been, or will be, replaced by newer technology or phased out of the
product line in The Company's unaudited pre-tax loss for 1995,
inclusive of the one-time charges, will be approximately $1.8
million to $2.0 million on revenues of approximately $6.6 million.
Under the restructuring the Company's work force was reduced by
12% or 8 persons. Staffs in marketing and finance/administration
were reduced by two people, and the Tandem product publications and
documentation staff of three was eliminated. Future publications
requirements will be outsourced. In addition, three Tandem products
R&D personnel were affected by the work force reduction due to the
streamlining in the Tandem product area.
Commenting on the restructuring, Peter J. McDonald, Chief
Executive Officer of Software Professionals, stated, "In our Tandem
business unit we have eliminated unprofitable products, outsourced
non-strategic product lines and functions and focused our resources
on our most promising technologies. We have also written down older
generation technology and reduced our corporate overhead, improving
our balance sheet and reducing future amortization expense. Leading
our cost reduction efforts by example, I have elected to reduce my
1996 compensation package by 31%. These decisive, proactive steps
are intended to improve our Company's prospects for near- and longer-
term success."
Software Professionals is in the process of reviewing candidates
to direct the Company's sales and marketing efforts for its UNIX and
Tandem product lines. The Company has retained the services of a
technology industry executive recruiting firm to assist in and
expedite the process.
Mr. McDonald commented on the outlook for the Company's systems
administration products for the UNIX marketplace, "We continue to
receive significant interest as well as notable endorsements of our
ENlighten product suite for the UNIX marketplace. These include
SunIntegration Services' (a unit of Sun Microsystems Ltd.) decision
to become an ENlighten systems integrator in Europe and SCO World
Magazine's recent cover story selecting ENlighten/ SYS ADMIN as a
"Hot Product" for 1996. Based on this interest and the
enthusiastic market reception to the additional features in release
2.0 of these products, expected to be shipped in the second quarter
of 1996, we continue to believe our product strategy is going to be
successful. ENlighten's attractive pricing and broad range of
functionality make it a very attractive product solution for
heterogeneous systems administration in the rapidly growing UNIX
marketplace. Under the guidance of a new head of sales and
marketing with experience in the UNIX marketplace, we are confident
that our UNIX products should be able to establish sales momentum."
Founded in 1986, Software Professionals, Inc. is a supplier of
automated systems software solutions for the UNIX-based open systems
market and Tandem computers. The Company's ENlighten product suite
provides systems administration solutions for heterogeneous UNIX
systems including Sun Microsystems, IBM, Hewlett-Packard and SCO.
In the Tandem market, Software Professionals has a leadership
position, providing a range of automated systems management products
to a client base of over 425 companies in 34 countries.
CONTACT: Software Professionals Inc.,
Michael A. Morgan, 415/578-0700 or info@sftw.com;
or,
Jaffoni & Collins Incorporated,
David C. Collins, Joseph N. Jaffoni,
212/505-3015 or jci@nyc.pipeline.com
HARRISBURG, Pa., Jan. 26, 1996 -- The Office of Attorney
General has filed formal objections to the first legal fee petitions
filed by two law firms involved in the bankruptcy of the href="chap11.newera.html">Foundation for New Era Philanthropy.
Pennsylvania Attorney General Tom Corbett said the objections
filed this week in U.S. Bankruptcy Court by Chief Deputy Attorney
General Janice L. Anderson ask the court to reduce the fee requests
filed by Buchanan Ingersoll and by Ciardi, Maschmeyer & Karalis.
Buchanan Ingersoll, which is serving as personal counsel to
permanent New Era trustee Arlin M. Adams, has asked for $222,455 in
legal fees and $38,372 in expenses.
Ciardi, Maschmeyer & Karalis represented John T. Carroll III,
the interim trustee who handled the New Era bankruptcy from its
filing last May 15 until July, when Adams was confirmed as the
permanent trustee. Ciardi, Maschmeyer & Karalis is seeking $207,064
in fees and $17,176 in expenses.
In its objections to the law firms' applications, the Attorney
General's office claims that the applications:
The objections do not cite specifics.
Corbett noted that the U.S. Trustee's Office also has filed
similar objections to the fee requests.
The Foundation for New Era Philanthropy, formerly based in
Radnor, filed for bankruptcy last May, owing millions of dollars to
individuals and nonprofit groups.
The Pennsylvania Attorney General's office is working with the
U.S. Attorney's Office for the Eastern District of Pennsylvania in a
criminal investigation of New Era and its president, John G. Bennett
Jr.
CONTACT: Jack Lewis, Press Secretary of the Office of Attorney
General, 717-787-5211
BURNABY, B.C., Jan. 26, 1996 -- Loewen Group today confirmed
that the company is negotiating with U.S. and Canadian financial
institutions to finance the $625 million bond required to appeal a
$500 million judgement against the company in Mississippi.
``We have three options, post the bond and appeal, reach a
reasonable out of court settlement or file for Chapter 11
protection,'' said Raymond Loewen, Chairman and Chief Executive
Officer, The Loewen Group. ``We believe strongly in the merits of
our case and we are confident of a successful appeal. We are also
optimistic that we will be able to meet the financing requirements
for the $625 million bond.''
``The magnitude of this injustice and the scope of the
financial and moral challenge has strengthened us as a company and
as individuals,'' commented Loewen. ``Shareholders, industry
friends and financial institutions who know the integrity of our
company, the dedication of our employees and the strength of our
operations are showing their support for us during this difficult
period and we are very grateful.''
``We believe that Loewen Group will continue to be seen as the
company of choice for independent funeral operators in the process
of quality succession planning and we will continue to lead the
industry in providing service with care and sensitivity.'' said
Loewen.
The Loewen Group is the second largest funeral service
corporation in North America. The Company employs approximately
10,000 people and owns and operates 814 funeral homes and 179
cemeteries in The United States and Canada. Approximately 90 per
cent of the company's total revenue is derived from locations in the
United States.
For further information: Peter Hyndman, VP Law, Corporate
Secretary, Loewen Group (604) 299-9321
SAN CARLOS, Calif., Jan. 26, 1996 -- href="chap11.escagenetics.html">ESCAgenetics
Corporation (ESNG), a San Carlos, CA based company, and its
wholly owned subsidiary TPS Products Co., a Delaware Corporation, and
its majority-owned subsidiary, PHYTOpharmaceuticals, Inc., a California
corporation, announced today that they filed voluntary Chapter 11
bankruptcy petitions on January 26, 1996.
ESCA, PPI and TPS have filed a joint plan of reorganization
which provides that the three corporations will be consolidated,
their assets will be liquidated and the proceeds will be
distributed to creditors in accordance with the priorities
established by the Bankruptcy Code.
ESCA, PPI and TPS anticipate that their bankruptcy cases will be
completed within three months.
CONTACT: William J. Koenig, President & CEO of ESCAgenetics
Corporation, 415-595-5335
HOUSTON, Jan. 26, 1996 -- First Banks America, Inc.,
announced today that during the fourth quarter of 1995 it completed
certain actions which strengthened the company's balance sheet and
are expected to contribute to future operating results. James F.
Dierberg, chairman and president of FBA observed, "We have been
working during the latter part of 1994 and throughout 1995 to
completely reengineer a company which has had financial difficulties
for many years. While we have had many successes in this process,
particularly in the reduction of noninterest expenses, more needs to
be done. In looking at the company's operations, it was clear that
its net interest income was below average for banks, and would
probably not increase significantly for an extended period in the
future, unless further adjustments were made. Consequently, we
decided to accelerate the remaining restructuring process by
substantially changing the securities portfolio, thereby triggering
the realization of related derivative losses. While this had an
immediate negative impact on current earnings, it strengthened the
company's capital position and it will eliminate a significant
limitation on future profitability."
FBA reported that during the fourth quarter of 1995 it
accelerated the repositioning of its investments portfolio through
sales of $48.9 million of securities, accompanied by the termination
of the futures contracts which had been used to hedge that
portfolio. This resulted in the recognition of a non recurring
after-tax loss of $2.1 million. Approximately $22.8 million of the
proceeds from this sale were reinvested in short-term U.S.
Government agency obligations. The remainder is being held in
overnight investments to provide funds for anticipated loan growth
and/or the reduction of higher interest rate liabilities which will
be maturing during the first and second quarter of 1996.
As a result, FBA reported a net loss of $1.54 million, or $0.38
per share, for the fourth quarter of 1995, compared to a net loss of
$269,000, or $0.07 per share for the same period in 1994. The net
loss for the year ended Dec. 31, 1995, was $3.82 million, or $0.93
per share, compared to a loss of $905,000, or $0.22 per share, for
the same period in 1994. Dierberg observed "Although FBA incurred a
net loss for the fourth quarter of 1995, it actually experienced an
increase in stockholders' equity per share, from $9.05 per share at
Sept. 30, 1995 to $9.22 per share at Dec. 31, 1995. This reflects
the actions taken with respect to the investments portfolio during
the quarter, as well as the continued acquisition of the company's
stock under the Stock Repurchase Program announced previously."
The loss reported for the year ended Dec. 31, 1995 also reflects
a sharply higher provision for loan losses compared to the preceding
year. The provision for loan losses was $5.83 million for 1995,
compared to $1.26 million in 1994. This is largely the result of
the special provision taken during the third quarter of 1995. The
provision for the fourth quarter of 1995 was $301,000, compared with
$653,000 for the same period in 1994. The allowance for loan losses
was $5.23 million, or 2.71 percent of total loans, as of Dec. 31,
1995, compared to $2.76 million, or 1.36 percent of total loans, as
of Dec. 31, 1994. Loans which were either 90 days or more past due
and still accruing or on non- accrual status totaled $1.1 million at
Dec. 31, 1995, representing a relatively modest 0.55 percent of
total loans at that date. However, loans which were between 30 and
89 days past due were $6.65 million, or 3.45 percent of total loans
at Dec. 31, 1995. Loan charge-offs for the year ended Dec. 31, 1995
were $4.07 million, compared with $2.26 million for the same period
in 1994. Because of these losses, FBA conducted an extensive
internal review of the reasons for the losses and the quality of the
loan portfolio, which led to more aggressive loan collection
procedures and tightening of certain consumer loan underwriting
procedures. Dierberg stated that "Because of the strength of the
allowance for loan losses, FBA is well-positioned to deal
effectively with any loan problems which may surface without
adversely affecting the company's financial condition."
Net interest income was $11.2 million, or 3.89 percent of
average earning assets, for the year ended Dec. 31, 1995 compared to
$11.58 million, or 3.46 percent of average earning assets for the
same period in 1994. FBA reported net interest income of $2.55
million, or 3.80 percent of average earning assets for the fourth
quarter of 1995, compared to $3.13 million, or 4.15 percent for the
same period in 1994. Dierberg commented that "While net interest
income remained reasonably constant in a period in which noninterest
expense decreased substantially, the level of net interest income
remained below average. One significant reason for this was the
underperforming investments portfolio. In order to achieve the
earnings performance our stockholders should expect of FBA, we
needed to transfer funds out of lower-yielding assets, while
continuing to control the cost of those funds. This was the impetus
for our decision to restructure the investments portfolio."
Operating expenses have continued to continued to decrease
throughout 1995, the product of various steps which were taken
during the last half of 1994 and throughout 1995. Total noninterest
expenses decreased to $11.01 million for the year ended Dec. 31,
1995, compared to $16.17 million for the same period in 1994, a
decrease of 32 percent. For the three months ended Dec. 31, 1995
total noninterest expenses were $2.55 million, compared to $3.56
million for the same period in 1994. Expenses for 1994 include
several substantial nonrecurring expenses relating to reductions in
staff and termination of certain benefit programs. In comparison to
1995, these nonrecurring expenses were partially offset by
additional severance costs, expenses in connection with the data
processing conversion, the lease termination cost on the
headquarters space, legal expenses in connection with certain
ongoing litigation and various other nonrecurring expenses.
Consequently, the total noninterest expenses for 1995 are not
necessarily representative of the ongoing costs which will be
incurred in future years.
FBA had consolidated total assets at Dec. 31, 1995 of $297
million, a decrease of $35 million from total assets at Dec. 31,
1994 of $332 million. This decrease was principally related to
sales and maturities of securities which had been funded primarily
by non-deposit liabilities. FBA began the process in 1994 of
reducing assets, and the related liability incurred to fund them,
which produced little, if any, contribution to the company's net
income. This is the reason that the assets can be reduced in this
manner without significant reduction of net interest income.
Dierberg added that, "FBA has experienced substantial
fundamental change in the last 18 months which should bring rewards
to the company and its shareholders in the near future."
FIRST BANKS AMERICA, INC.
FINANCIAL SUMMARY
(In thousands, except net income/loss per share)
Three Months Ended Twelve Months Ended
Condensed Consolidated December 31, December 31,
Statements of Income 1995 1994 1995 1994
Net Interest Income $ 2,545 $ 3,129 $11,209 $11,576
Provision for loan losses 301 653 5,826 1,258
Net income (loss) (1,539) (269) 3,820 905
Net income (loss) per share (.38) (0.07) (.93) (0.22)
Weighted average common
shares and common share
equivalents outstanding 4,044 4,106 4,091 4,098
Issued and outstanding shares:
Common stock 1,338 1,369 1,370 1,338
Class B common stock 2,500 2,500 2,500 2,500
Condensed Consolidated Balance Sheet
Information 12-31-95 12-31-94
Assets $296,712 $331,790
Deposits 249,263 241,570
Loans 192,573 203,314
Allowance for loan losses 5,228 2,756
Stockholders' equity 35,258 39,714
Nonperforming assets 1,562 1,553
ATLANTA, Jan. 26, 1996 -- Ross Systems, Inc. (Nasdaq:
ROSS) today announced the results for its second quarter of fiscal
1996 ended December 31, 1995. Revenues for the quarter declined 10%
to $16.5 million from $18.4 million in the prior year. Operating
expenses for the quarter declined 16% to $16.3 million from $19.3
million in the prior year, resulting in operating earnings of
$173,000, compared to an operating loss of $840,000 in the prior
year. For the quarter, the Company reported a net loss of
$202,000, or $0.01 per share, compared to a net loss of $1.2
million, or $0.11 per share, in the prior year.
Revenues for the six-month period ended December 31, 1995
declined to $30.7 million from $36.4 million for the same period of
the prior year. Operating expenses decreased to $33.8 million from
$37.6 million for the same period of the prior year. For the six
month period, the Company reported a net loss of $3.8 million or
$0.26 per share, compared to a prior year net loss of $1.1 million,
or $0.11 per share. Results for the prior year included a gain of
$755,000 associated with the sale of certain assets and a credit of
$345,000 related to a prior restructuring charge. Excluding the
results of its PRO/FIT Division, which the Company sold in September
1994, total revenues for the six month period declined 12%.
"Achieving a minor operating profit in the quarter is a major
stride in the Company's turn around, particularly in light of the
fact that we incurred $300,000 of non-recurring charges in the
quarter associated with lowering expense levels, " said Dennis Vohs,
Chairman and CEO of Ross Systems. "We had expected to achieve a net
profit for the quarter, but concerns over the Company's balance
sheet caused some customers to defer signing software license
agreements. We did complete a previously announced equity financing
of $6.0 million on January 2, 1996, which we had originally expected
to finalize in November."
Sequentially, business operations improved despite the weak
balance sheet. During the quarter, revenues from software product
licenses increased 20%, consulting revenues increased 32%,
maintenance revenues increased 3%, and total revenues increased 16%,
while operating expenses declined 7%.
Following its first fiscal quarter, the Company announced, that
in addition to raising capital, it would create greater focus on
certain target markets and eliminate the pursuit of others. Having
initiated these strategies during the quarter, virtually all new
sales in the quarter were derived from these target markets. As a
result of these strategies, the Company has initiated programs that
will increase investment and staffing in these target markets while
further decreasing staffing and expenses overall.
Key sales in the quarter include manufacturers, Tembec, Canadian
Forest Products, American Chrome & Chemical and Dupont; and
pharmaceutical companies UCB Pharma and Astra Pharmaceuticals. In
the government sector, key agreements were concluded with the UK
Home Office, RSZ (the Belgian Ministry of Social Security) and the
County of Bernalillo, in New Mexico. Major sales in the health care
sector were completed with the UK Ministry of Defense Hospitals, the
Dallas County Mental Health and Mental Retardation Center and
Franklin Physicians Services.
Consulting revenues grew by 32% over the previous quarter. The
Company's largest customers for these services in the quarter were
Eli Lilly, the Ministry of Agriculture in the Netherlands (LNV),
AT&T Istel, Firmenich, Hoechst-Roussel, Alcoa, Rapid Forms, the City
of Albuquerque, Dell Computer, Bahamas Telecom and France Printemps.
"During the quarter, we began shipping a new version of our
Renaissance CS Product Series, Release 3.1," said Mr. Vohs.
"Besides providing major functional enhancements, we believe the 3.1
release significantly improves product reliability, performance and
quality. Early customer response to the new release has been very
positive." Functional enhancements include an improved user
interface, streamlined business processes, a new bid tracking
capability, full fund accounting, new EDI capabilities, a new
comprehensive allocation process, and full featured maintenance
management facilities.
The Company's DSO for the quarter was 109 days compared to 122
days in the same quarter last year. Operations were cash flow
positive in the quarter, with no cash received during the quarter
from the recently completed equity financing.
Ross Systems, Inc. develops and markets a broad range of
client/server business solutions, including financials,
manufacturing, maintenance, materials management, and human
resources applications, as well as comprehensive application
development products. Ross Systems products are available for the
following open systems environments: Hewlett-Packard's MPE/iX and HP-
UX; IBM's RS/6000; and Digital's Alpha architecture, OpenVMS and
Digital UNIX. More than 2,700 companies around the world use
business solutions from Ross Systems to run their operations.
Ross Systems employs 465 professionals in 16 offices worldwide
to serve its customers. Corporate headquarters are located at 555
Twin Dolphin Drive, Redwood City, Calif., 94065.
ROSS SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three months ended Six months ended
December 31, December 31,
1995 1994 1995 1994
Revenues:
Software product
licenses $ 5,109 $ 6,034 $ 9,369 $ 12,014
Consulting and other
services 5,276 6,069 9,277 11,519
Maintenance 6,111 6,321 12,066 12,826
Total 16,496 18,424 30,712 36,359
Operating expenses:
Costs of consulting,
maintenance and other
services 5,963 6,930 12,640 13,447
Software product license
sales and marketing 5,410 6,703 11,160 13,323
Product development 3,046 3,179 6,136 6,096
General and administrative 1,727 2,252 3,524 4,425
Provision for doubtful
accounts and returns 79 (48) 161 159
Amortization of other
sets 98 248 194 521
Restructuring charge --- --- --- (345)
Total 16,323 19,264 33,815 37,626
Operating earnings
(loss) 173 (840) (3,103) (1,267)
Other income (expense),
net (368) (285) (671) 235
Loss before income taxes (195) (1,125) (3,774) (1,032)
Income tax expense 7 38 19 73
Net loss $ (202) $ (1,163) $ (3,793) $ (1,105)
Net loss per common
share $ (0.01) $ (0.11) $ (0.26) $ (0.11)
Common shares used in
computing loss per
common share 14,336 10,453 14,322 10,379
ROSS SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31, June 30,
1995 1995
Assets
Current assets:
Cash and cash equivalents $ 1,757 $ 3,628
Accounts receivable, net 19,898 22,812
Notes receivable --- 220
Prepaids and other current assets 2,004 2,157
Income taxes recoverable 885 1,071
Total current assets 24,544 29,888
Property and equipment 4,517 5,073
Computer software costs 19,018 17,528
Other assets 3,190 2,572
Total $ 51,269 $ 55,061
Liabilities and Shareholders' Equity
Current liabilities:
Current installments of debt $ 9,752 $ 4,998
Accounts payable 8,613 7,452
Accrued expenses 10,969 16,694
Deferred revenues 14,106 15,841
Total current liabilities 43,440 44,985
Long-term debt, less current
installments 54 228
Total liabilities 43,494 45,213
Shareholders' equity:
Common stock 57,658 55,854
Accumulated deficit (49,313) (45,520)
Cumulative translation adjustment (570) (486)
Total shareholders' equity 7,775 9,848
Total $51,269 $ 55,061
PLYMOUTH, Minn., Jan. 26, 1996 - Kelly Russell Studios,
Inc. (Nasdaq: KRSI) today announced its preliminary financial
results for 1995 which are subject to final audit. The company
expects to report sales of approximately $2.8 million and a net loss
of $1.4 million which includes a charge to earnings in the fourth
quarter of approximately $750,000 for asset writedowns. The
significant asset writedowns relate to (i) obsolete and discontinued
inventories and other year-end adjustments to inventories, (ii)
adjustments to reserves for sales returns and allowances and bad
debt, and (iii) adjustments to prepaid license fees to net
realizable value reflecting the lower than expected sales
performance of the Company in 1995.
The Company initiated a major reorganization in the fourth
quarter of 1994 which resulted in significant changes in management,
production, product distribution and operations. George Vrabeck,
the Company's President, said, "While we are disappointed in the
Company's financial results in 1995, we continue to believe that
this reorganization will prove successful."
Vrabeck continued, "Due to the Company's 1995 results, the
Company may need to raise additional equity financing in 1996 to
improve its financial position. The Company does not anticipate a
sales turnaround in the first quarter of 1996. On the positive
side, we continue to get very good reception from key retail
accounts. There is a strong market for high quality sports and
entertainment collectibles, and Kelly Russell products fit this
niche. We also have agreements with well- known entertainment
personalities, and some developing international opportunities.
Expenses have been reduced dramatically. There is a great deal of
work to be done, but we remain optimistic about the future of Kelly
Russell."
Kelly Russell Studios, Inc. manufactures and markets
entertainment- related art for the collectible market. The Company
commissions original artwork and has license agreements with major
national sports franchises and their related player's associations
that allow it to produce limited edition lithographs of both teams
and individual players. The Company is currently expanding its
licensing agreements for the movie, music and television product
line. The Company distributes its products through mass
merchandisers, specialty retailers and department store chains in
the U.S. and Canada. The common stock of the company is traded in
the Nasdaq SmallCap Market under the Nasdaq symbol "KRSI."
CONTACT: George Vrabeck, President of Kelly Russell Studios,
612-553-9992
SALT LAKE CITY, Jan. 29, 1996 - Smith's Food & Drug
Centers, Inc. (NYSE: SFD) made the following announcements today:
MERGER OF SMITTY'S SUPERMARKETS, INC.
Smith's has entered into a definitive merger agreement with
Smitty's Supermarkets, Inc. Smitty's, which operates 28
supermarkets in the Phoenix and Tucson areas, is controlled by The
Yucaipa Companies, a private investment company. Smitty's sales
totaled approximately $590 million in 1995. Under the merger
agreement, Smith's will issue 3,038,888 shares of its Class B Common
Stock in exchange for all of Smitty's outstanding common stock and
it will assume or refinance approximately $148 million of Smitty's
debt.
REPURCHASE OF STOCK
Smith's also said it will commence a self tender offer to
purchase 50% of its Class A and Class B Common Stock for $36 per
share, excluding shares to be issued in connection with the Smitty's
merger. Consummation of the tender offer will be subject to the
tender of at least 50% of Smith's outstanding common stock, the
receipt of financing and various other conditions. Consummation of
the Smitty's merger will be conditioned on Smith's purchase of
shares pursuant to the self tender offer, receipt of financing,
regulatory approvals, approval by Smith's stockholders and various
other conditions. Smith's has received commitment letters and
highly confident letters from several financial institutions with
respect to all of the financing necessary to consummate the Smitty's
merger and the self tender offer.
The tender offer is expected to commence around April 1, 1996
and be consummated around May 1, 1996. The Smitty's merger is
expected to be consummated concurrently with the closing of the
tender offer.
Upon consummation of the Smitty's merger and the self tender
offer, the Smith family will continue to be Smith's largest
stockholder with approximately 24% of the outstanding common stock
and over 40% of the vote. The Yucaipa Companies and its affiliates
will own approximately 14% of Smith's outstanding common stock and
the other Smitty's stockholders will own approximately 6%. The
Yucaipa Companies will enter into a 10 year standstill agreement
with Smith's.
MANAGEMENT CHANGES
Upon consummation of the Smitty's merger and the self tender
offer, Smith's will enter into a five year management services
agreement with The Yucaipa Companies under which Yucaipa will
provide various management services to Smith's. As part of that
arrangement, Ronald W. Burkle, managing partner of The Yucaipa
Companies, will be appointed as Chief Executive Officer of Smith's
upon consummation of the Smitty's merger and the self tender offer.
In addition, at that time Smith's board of directors will be
reconstituted to consist of two representatives of Yucaipa, two
representatives of the Smith family, one senior member of
management, and two independent directors.
The Yucaipa Companies is a private investment company which in
addition to Smitty's also controls Ralphs Grocery Company, the
largest supermarket company in Southern California, operating stores
under the Ralphs and Food 4 Less names, which also operates stores
in Northern California under the Cala and Bell names and in the
midwest under the Falley's and Food 4 Less names; and Dominick's
Finer Foods, Inc., a leading Chicago area supermarket company,
operating stores under the Dominick's and Omni names.
In addition, Smith's announced that it has hired Allen R.
Rowland as President and Chief Operating Officer of Smith's. Mr.
Rowland spent 25 years at Albertson's Inc., holding various senior
executive positions at that company.
Jeffrey P. Smith, Chairman and CEO of Smith's, said: "I am very
excited about the transactions we are announcing today. The
Smitty's merger will significantly enhance the combined companies'
position in the Arizona market. The self tender offer will give all
of Smith's stockholders the opportunity to receive substantial cash
proceeds while permitting them at the same time to participate in
Smith's future growth. Additionally, our management arrangements
with Yucaipa will permit Smith's to benefit from Yucaipa's extensive
management experience in the supermarket industry. I am
particularly pleased about our good fortune in hiring Rowland. He
is one of the most accomplished senior executives in the supermarket
industry and I believe Smith's will benefit greatly from his
experience."
Ron Burkle said: "We look forward to consummating this exciting
merger. I have admired Jeff Smith and his company and we are
delighted at the prospect of the combination of Smitty's and
Smith's. I am committed to continuing the expansion of the combined
company to benefit its shareholders, employees and customers."
FISCAL 1995 RESULTS
Smith's sales for the year ended December 30, 1995 of $3.08
billion were up 3% over the $2.98 billion reported a year ago.
Income before restructuring charges was $43.5 million compared to
last year's $48.8 million, a decrease of 11%. Income per common
share before restructuring charges decreased from $1.73 to $1.72,
down 1% over last year. In January, the Company announced the sale
and closure of its Southern California Region. Consequently,
restructuring charges of $84 million ($3.34 per common share) after
tax were recorded which resulted in a net loss of $40.5 million for
1995 compared to net income of $48.8 million last year. The pretax
LIFO charge was $4.0 million for 1995 compared to $2.5 million last
year. Sales in comparable stores decreased 3.4% for the year.
FOURTH QUARTER RESULTS
Smith's sales for the fourth quarter ended December 30, 1995,
totaled $798 million compared to $754 million for the same quarter
last year, an increase of 6%. Income per common share before
restructuring charges totaled $.55 compared to $.53 earned last
year, an increase of 4%. Income before restructuring charges was
$13.9 million compared to $14.2 million reported last year, a
decrease of 2%. The pretax LIFO charge was $1.0 million for the
fourth quarter compared to a credit of $1.25 million last year.
Sales in comparable stores decreased 2.9% for the quarter.
The weakness in sales can be attributed to a significant number
of competitive store openings in most marketing areas, in addition
to aggressive price competition in the Company's Southern California
Region. Earnings were affected by the weakness in sales, putting
pressure on expense ratios.
CLOSURE OF CALIFORNIA
In January, the Company announced the sale and anticipated
closure of its Southern California Region. Smith's has entered into
agreements to sell or lease 18 stores to various supermarket
companies. The remaining 16 stores will be closed in the near
future and it is anticipated they will be sold or leased to other
retail companies. A large distribution center located in Riverside,
California was recently subleased to Ralphs Grocery Company. These
34 stores had sales of approximately $675 million for the year ended
December 30, 1995. Restructuring charges of $84 million after tax
were charged against earnings for the year ended December 30, 1995.
The continuing recession in Southern California and a very
difficult competitive environment made it impossible for Smith's to
earn an adequate return on its investment there. Jeff Smith,
Chairman and CEO, stated that "Company and shareholder interests
would be better served by redeploying assets to further develop
Smith's other profitable regions." Smith's has established
profitable operating areas in Utah, Arizona, Nevada, New Mexico,
Idaho, Wyoming and Texas.
EXPANSION PROGRAM
During the year, the Company opened 15 combination food and drug
centers in Phoenix, Gilbert, Glendale, Peoria, and two in Mesa,
Arizona; Vista and Yucca Valley, California; Albuquerque, Gallup and
Hobbs, New Mexico; Gardnerville, Elko and Las Vegas, Nevada; and
Kimball Junction, Utah. Two smaller superstores were closed in Las
Vegas.
The Company also opened four retail warehouse stores in Las
Vegas. These new "price-impact" stores operate under the PriceRite
Grocery Warehouse name.
Smith's is a leading regional supermarket chain operating 154
stores at the end of the year (including the 34 stores in
California) in eight western states. Of these stores, 138 are large
combination food and drug centers.
SMITH'S FOOD & DRUG CENTERS, INC.
Condensed Consolidated Statements of Income
(Unaudited)
(Amounts in thousands, except per share data)
13 Weeks Ended 52 Weeks Ended
Dec 30, Dec 31, Dec 30, Dec 31,
1995 1994 1995 1994
Net sales $798,324 $753,891 $3,083,737
$2,981,359
Cost of goods sold 617,657 581,621 2,392,723
2,318,127
180,667 172,270 691,014 663,232
Expenses:
Operating, selling and
administrative 117,604 111,781 461,401 440,844
Depreciation and
amortization 26,253 23,385 98,947 88,592
Interest 15,194 14,305 60,478 53,715
Restructuring charges 140,000 140,000
299,051 149,471 760,826 583,151
INCOME (LOSS) BEFORE
INCOME TAXES (118,384) 22,799 (69,812) 80,081
Income taxes (48,300) 8,600 (29,300)
31,300
NET INCOME (LOSS) $(70,084) $ 14,199 $ (40,512) $ 48,781
Per common share:
Income before
restructuring charges $ .55 $ .53 $ 1.72 $ 1.73
Net income (loss) (2.79) .53 (1.62) 1.73
Average common
shares outstanding 25,071 26,407 25,031 28,177
SMITH'S FOOD & DRUG CENTERS, INC.
Consolidated Balance Sheets
(Unaudited)
(Amounts in thousands)
Dec 30, Dec 31,
1995 1994
ASSETS
CURRENT ASSETS
Cash $ 16,079 $ 14,188
Receivables 23,802 25,596
Inventories 394,982 389,564
Assets held for sale 125,000
Other current assets 45,155 17,258
TOTAL CURRENT ASSETS 605,018 446,606
PROPERTY AND EQUIPMENT
Land 276,626 303,701
Buildings 610,049 619,056
Leasehold improvements 55,830 42,369
Fixtures and equipment 509,524 589,480
1,452,029 1,554,606
Less allowances 390,933 364,741
1,061,096 1,189,865
OTHER ASSETS 20,066 16,996
$1,686,180 $1,653,467
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Trade accounts payable $ 214,152 $ 235,843
Accrued taxes 50,749 44,379
Other accrued liabilities 97,455 84,083
Current maturities 21,940 20,028
Restructuring reserves 58,000
TOTAL CURRENT LIABILITIES 442,296 384,333
LONG-TERM DEBT 725,253 699,882
RESTRUCTURING RESERVES 40,000
DEFERRED INCOME TAXES 58,600 89,500
REDEEMABLE PREFERRED STOCK 3,311 4,410
COMMON STOCKHOLDERS' EQUITY 416,720 475,342
$1,686,180 $1,653,467
SMITH'S FOOD & DRUG CENTERS, INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
52 Weeks 52 Weeks
Ended Ended
Dec 30, Dec 31,
1995 1994
OPERATING ACTIVITIES:
Net income (loss) $(40,512) $ 48,781
Adjustments to reconcile net income (loss)
to net cash provided by operating
activities:
Depreciation and amortization 104,963 94,491
Deferred income taxes (53,400) 10,500
Restructuring charges 140,000
Other 568 635
151,619 154,407
Changes in operating assets and
liabilities:
Receivables 1,794 (4,758)
Inventories (5,418) (11,625)
Other current assets (5,397) (1,324)
Trade accounts payable (21,691) 50,618
Accrued taxes 6,370 5,616
Other accrued liabilities 13,372 10,616
CASH PROVIDED BY OPERATING ACTIVITIES 140,649
203,550
INVESTING ACTIVITIES:
Additions to property and equipment (149,035) (146,676)
Sale/leaseback arrangements and other
property sales 5,841 20,949
Other (3,070) (1,649)
CASH USED IN INVESTING ACTIVITIES (146,264)
(127,376)
FINANCING ACTIVITIES:
Additions to long-term debt 45,978 27,000
Payments on long-term debt (18,686) (33,594)
Redemptions of Redeemable
Preferred Stock (1,108) (1,042)
Purchases of Treasury Stock (9,039) (109,239)
Proceeds from sale of Treasury Stock 5,278 7,693
Payment of dividends (14,917) (14,725)
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 7,506
(123,907)
NET INCREASE (DECREASE) IN CASH 1,891
(47,733)
Cash balance at beginning of year 14,188
61,921
CASH BALANCE AT END OF YEAR $ 16,079 $
14,188
SOLANA BEACH, Calif. -- Jan. 29, 1996--Chart
House Enterprises Inc. (NYSE:CHT) announced a $1.51 million loss, or
a loss of 18 cents per share, for the fourth quarter ended Dec. 31,
1995, on revenues of $42.5 million.
Net income for the fourth quarter of 1994 was $501,000, or 6
cents per share, on revenues of $43.3 million.
The fourth quarter loss reflected $4.85 million in pre-tax
restructuring charges related to management's plan to dispose of
five restaurant properties and to reduce overhead costs. Partially
offsetting the restructuring charges were a $1.86 million pre-tax
gain on the sale of the company's Paradise Bakery subsidiary and a
$1.0 million credit to reduce the provision for income taxes
resulting from larger than anticipated tax benefits from FICA tip
tax credits.
Net income for the year ended Dec. 31, 1995, was $2.66 million,
or 32 cents per share, on revenues of $179.2 million, compared with
1994 net income of $4.29 million, or 52 cents per share, on revenues
of $174.9 million.
During the fourth quarter, the company opened three Islands
restaurants, in Woodland Hills and Montclair, Calif., and Mesa,
Ariz, closed one Chart House restaurant in Idyllwild, Calif. and
completed the sale of Paradise Bakery.
"Cutting through the fog of the non-recurring restructuring
charges and gain on sale of Paradise Bakery, our earnings
performance for 1995 was about the same as the prior year," said
John Creed, chairman and CEO. "We have set a new strategic course
and believe that management's focus on revitalizing our Chart House
restaurants will provide improved returns to our shareholders."
Chart House Enterprises operates 82 restaurants, including 64
Chart Houses, 17 Islands and one Peohe's. In addition, the company
has exclusive rights to develop and operate Islands restaurants
under a license granted by the owner of the Islands concept and
manages 15 Islands restaurants owned by the licensor.
CHART HOUSE ENTERPRISES INC.
SUMMARY RESULTS OF OPERATIONS
(In thousands, except per-share data)
Fourth Quarter Ended
Dec. 31,
1995 1994
Revenues $42,488 $43,284
Restaurant expenses 38,065 37,050
Restructuring charges 4,853 ---
Income (loss) from restaurant operations $ (430) $ 6,234
Selling, general and administrative expenses 3,861 4,212
Interest expense 1,193 1,248
Other income -- gain on sale of subsidiary (1,855) ---
Income (loss) before income taxes $(3,629) $ 774
Provision (benefit) for income taxes (2,120) 273
Net income (loss) $(1,509) $ 501
Net (loss) income per common share (18 cents) 6 cents
Weighted average shares outstanding 8,273 8,295
Year Ended
Dec. 31,
1995 1994
Revenues $179,155 $174,940
Restaurant operating expenses 153,638 147,743
Restructuring charges 4,853 ---
Income from restaurant operations $ 20,664 $ 27,197
Selling, general and administrative expenses 15,286 16,072
Interest expense 4,811 4,527
Other income -- gain on sale of subsidiary (1,855) ---
Income before income taxes $ 2,422 $ 6,598
Provision (benefit) for income taxes (241) 2,312
Net income $ 2,663 $ 4,286
Net income per common share 32 cents 52 cents
Weighted average shares outstanding 8,277 8,292
CONTACT: Chart House Enterprises Inc., Solana Beach
Harold E. Gaubert Jr., 619/755-8281
or
Booke and Co., New York
Stephen B. Booke, 212/490-9095
BURNABY, B.C., Jan. 29, 1996 - The Loewen Group announced
that over the weekend it reached a structured settlement in the
O'Keefe, Gulf National et al. vs. The Loewen Group Inc. case in
Mississippi.
Last week The Loewen Group announced that the Mississippi
Supreme Court had ordered the interim stay lifted on January 31,
effectively requiring the Company to reach a settlement, post a $625
million appeal bond by January 31, 1996, or place the Company under
bankruptcy protection.
``We continue to believe strongly in the merits of our case and
in the injustice of the disproportionate award. We were confident of
a successful appeal, but it would have meant several years of
continued uncertainty at significant financial cost to the Company
and we had to consider what would be in the best interests of our
shareholders and employees,'' said Ray Loewen, chairman and CEO, The
Loewen Group. ``After analyzing the financial and other impacts of
the various alternatives we determined that, at this time, a
settlement is in the best interests of the Company and its
shareholders.''
The structured settlement, which the Company estimates has a
net present value on an after-tax basis of $85 million, includes the
payment of $50 million on January 31, 1996, the issuance of 1.5
million shares of Loewen's Common stock by February 15, 1996,
subject to customary Canadian stock exchange approvals, and a
promissory note providing for annual payments of $4 million per year
for each of the next 20 years without interest. The shares will be
subject to a two-year voting agreement and a right of first refusal
in favor of the Company. If the market price of Loewen's Common
stock is not at least $30 approximately one year after the issuance
of the shares, the Company has agreed to make certain additional
payments to the plaintiffs in cash or stock at the Company's
election. The settlement costs to the Company will be recorded as a
prior period adjustment.
``We want to thank our many shareholders, industry friends and
the financial community who, knowing the integrity of our Company,
the dedication of our employees and the strength of our operations,
supported us during this very difficult period,'' Loewen said.
``We believe that The Loewen Group will continue to be seen as
the company of choice for independent funeral home operators in the
process of quality succession planning and we will continue to lead
the industry in providing service with care and sensitivity,''
Loewen said.
The Loewen Group Inc. is the second largest funeral service
corporation in North America with close to 10,000 employees, 814
funeral homes and 179 cemeteries across the United States and
Canada. Approximately 90% of the Company's total revenue is derived
from United States locations.
For further information: Peter Hyndman, Vice-President, Law and
Corporate Secretary, The Loewen Group Inc., (604) 299-9321/
PHOENIX, Jan. 29, 1996 - America
West Airlines, Inc.,
today reported 1995 operating income of $165.2 million and pre-tax
income of $118.9 million, excluding a $10.5 million pre-tax
nonrecurring restructuring charge. Both the operating and pre-tax
earnings are Company records, even after accounting for the
restructuring charge.
The Company reported net income for the year, excluding the
nonrecurring charge, of $60.3 million, or $1.29 per common share
fully diluted. Because of the recapitalization of the airline upon
emergence from Chapter 11 protection on August 25, 1994, full year
1995 and 1994 per share data cannot be meaningfully compared.
Net income for the quarter ended December 31, 1995, excluding
the nonrecurring restructuring charge, was $12.5 million, or $0.26
per common share fully diluted, up from $6.6 million, or $0.16 per
common share fully diluted, in the same period last year.
Earnings for the fourth quarter and for the year include a one-
time pre-tax restructuring charge of $10.5 million related to the
outsourcing of the Company's heavy maintenance operations which is
expected to result in savings of $35 million over the next five
years. Including this nonrecurring charge, full year net income was
$53.8 million, or $1.15 per common share fully diluted, and fourth
quarter net income was $6.0 million, or $0.12 per common share fully
diluted.
These record operating and pre-tax profits reflect the
continuing success of our business plan," said W. A. Franke,
chairman and chief executive officer. "This quarter was the
Company's 12th consecutive quarter of profitability. Furthermore,
our annual operating margin of 10.0 percent was the highest among
major full-service U.S. airlines, even after accounting for the
$10.5 million restructuring charge."
Fourth quarter revenues rose 15.7 percent to $396.3 million.
Passenger revenue per available seat mile (RASM) increased 8.7
percent to 7.51 cents in 1995 from 6.91 cents in 1994. Load factor
increased 4.4 points to 66.6 percent this quarter from 62.2 percent
in 1994 while revenue per revenue passenger mile (yield) also
improved, up 1.4 percent to 11.27 cents in the 1995 quarter from
11.11 cents in 1994.
Operating cost per available seat mile (CASM) increased 12.6
percent from 6.75 cents per ASM in the fourth quarter 1994 to 7.60
cents per ASM in the 1995 quarter. Excluding the restructuring
charge, CASM was 7.38 cents, or 9.3 percent higher than the same
quarter in 1994. The increase in unit cost was driven by a 4.3 cent
per gallon fuel tax effective October 1, 1995, an $8 million
provision for the Company's profit-sharing plan (AWArd Pay)
initiated in 1995 and the decrease in ASMs caused by the Company's
decision to install First Class cabins on all aircraft. Excluding
these factors and the restructuring charge, CASM for the fourth
quarter 1995 would have been 7.10 cents.
For the full year 1995, operating revenues increased 10.1
percent to $1.6 billion. RASM increased 2.3 percent to 7.48 cents
in 1995 from 7.31 cents in 1994. Load factor increased 0.8 points
to a record 68.5 percent this year from 67.7 percent in 1994 while
yield also improved, up 1.1 percent to 10.91 cents in 1995 from
10.79 cents in 1994.
Unit operating cost increased 2.9 percent to 7.19 cents per ASM
in 1995 from 6.99 cents per ASM in 1994. Excluding the
restructuring charge, CASM was 7.13 cents, or 2.0 percent higher
than 1994. Further adjusting for the fuel tax, provision for AWArd
Pay and the First Class implementation, CASM for the year would have
been 7.01 cents.
Cash and cash equivalents increased to $224.4 million at
December 31, 1995, up 22.9 percent from $182.6 million on December
31, 1994. In addition, long term debt less current maturities was
reduced 19.7 percent over the same period from $465.6 million to
$373.9 million.
"Our healthy performance in 1995 and strengthened balance sheet
provide an excellent platform for our growth plan which commenced
earlier this month," said Franke. "1996 should be an exciting year
for America West as we work to create additional value for our
shareholders through profitable expansion of the airline."
America West previously announced that it will expand
substantially over the next two years, pursuing significant growth
opportunities at its Phoenix and Las Vegas hubs. The expansion
plan, when fully implemented, will increase available seat miles by
29 percent as well as add at least eight new cities to the carrier's
route network, including Detroit, Cleveland, Miami and San Antonio.
Separately, America West announced today that certain of its
shareholders intend to offer 6,100,000 shares of the Company's Class
B Common Stock in an underwritten public offering.
The following tables outline the full year and fourth quarter
1995 and 1994 financial and statistical results for the reorganized
and predecessor companies.
Condensed Balance Sheets
(in thousands of dollars)
Dec. 31, 1995 Dec. 31, 1994
(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $224,367 $182,581
Other current assets, net 141,052 110,937
Total current assets 365,419 293,518
PROPERTY AND EQUIPMENT, NET 602,063 554,538
OTHER ASSETS
Restricted cash 31,694 28,578
Reorganization value in excess of
amounts allocable to identifiable
assets, net 573,745 645,703
Other assets, net 25,799 22,755
TOTAL ASSETS $1,598,709 $1,545,092
LIABILITIES AND STOCKHOLDERS'
EQUITY CURRENT LIABILITIES
Current maturities of long-term
debt and capital leases $54,157 $65,198
Other liabilities 391,678 276,247
Total current liabilities 445,835 341,445
LONG-TERM DEBT, LESS
CURRENT MATURITIES 373,964 465,598
DEFERRED CREDITS AND OTHER
NONCURRENT LIABILITIES 129,438 142,603
STOCKHOLDERS' EQUITY 649,472 595,446
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $1,598,709 $1,545,092
Condensed Statements of Operations
(Dollars in thousands except per share amounts)
3 Months 3 Months
Ended Dec. 31, Ended Dec. 31, Percent
1995 1994 Change
(Unaudited)
Operating revenues:
Passenger $369,403 $319,183 15.7
Cargo 11,812 12,390 (4.7)
Other 15,094 10,878 38.8
Total operating revenues 396,309 342,451 15.7
Operating expenses:
Salaries and related costs 98,162 84,515 16.1
Rentals and landing fees 71,631 64,999 10.2
Aircraft fuel 47,531 42,471 11.9
Agency commissions 30,998 26,757 15.9
Aircraft maintenance
materials and repairs 21,190 12,466 70.0
Depreciation and amortization 20,393 20,340 0.3
Restructuring charge 10,500 --- ---
Other 73,184 60,368 21.2
Total operating expenses 373,589 311,916 19.8
Operating income 22,720 30,535 (25.6)
Nonoperating income
(expenses):
Interest income 3,932 2,751 42.9
Interest expense (13,137) (16,278) (19.3)
Loss on disposition
of property and equipment (220) (345) (36.2)
Other, net (195) 30 (750.0)
Total nonoperating
expenses, net 9,620 13,842 (30.5)
Income before income taxes 13,100 16,693 (21.5)
Income taxes 7,112 10,065 (29.3)
Net Income $5,988 6,628 (9.7)
Earnings per share:
Primary: $0.13 $0.15 (13.3)
Fully diluted: 0.12.. 0.16 (18.8)
Shares used for computation:
Primary 48,722,000 45,127,000 7.9
Fully diluted 48,722,000 45,127,000 7.9 ..
.. $0.26 per share excluding one-time restructuring charge.
Condensed Statements of Operations
(Dollars in thousands except per share amounts)
Reorganized Predecessor
Company Company
12 Months Period from Aug. 26 Period from Jan. 1
Ended Dec. 31, to Dec. 31, to Aug. 25,
1995 1994 1994
(Unaudited)
Operating revenues:
Passenger $1,452,261 $437,775 $882,140
Cargo 44,425 16,648 27,645
Other 53,956 15,343 29,243
Total operating
revenues 1,550,642 469,766 939,028
Operating expenses:
Salaries and
related costs 382,031 117,562 213,722
Rentals and landing
fees 281,834 90,822 173,710
Aircraft fuel 174,195 58,165 100,646
Agency commissions 124,145 37,265 78,988
Aircraft
maintenance materials
and repairs 65,925 17,590 28,109
Depreciation and
amortization 81,041 26,684 56,694
Restructuring
charges 10,500 --- ---
Other 276,239 82,807 179,653
Total operating
expenses 1,395,910 430,895 831,522
Operating income 154,732 38,871 107,506
Nonoperating income (expenses):
Interest income 15,046 3,834 470
Interest expense (58,598) (22,636) (33,998)
Loss on disposition
of property and
equipment (2,735) (398) (1,659)
Reorganization
expense, net --- --- (273,659)
Other, net (67) 65 131
Total nonoperating
expenses, net 46,354 19,135 308,715
Income (loss) before
income taxes and
extraordinary
items 108,378 19,736 (201,209)
Income taxes 53,608 11,890 2,059
Income (loss)
before
extraordinary
items 54,770 7,846 (203,268)
Extraordinary items (984) --- 257,660
Net Income $53,786 $7,846 $54,392
Condensed Statements of Operations
(Dollars in thousands except per share amounts)
Reorganized Predecessor
Company Company
12 Months Period from Aug. 26 Period from Jan. 1
Ended Dec. 31, to Dec. 31, to Aug. 25,
1995 1994 1994
(Unaudited)
Earnings (loss) per share:
Primary:
Income before
extraordinary items $1.18 0.17 N.M.
Extraordinary items (0.02) --- N.M.
Net income $1.16 0.17 N.M.
Fully diluted:
Income before
extraordinary items $1.17 0.17 N.M.
Extraordinary items (0.02) --- N.M.
Net income $1.15.. 0.17 N.M.
Shares used for computation:
Primary 47,675,000 45,127,000 28,549,929
Fully diluted 48,372,000 45,127,000 40,452,383
N.M. Historical per share data for the predecessor company is
not meaningful since the carrier has been recapitalized and has
adopted fresh start reporting
.. $1.29 per share excluding one-time restructuring charge.
3 Months 3 Months
Ended Dec. 31, Ended Dec. 31, Percent
1995 1994 Change
Operating Statistics:
Number of Aircraft at
End of Period 93 87 6.9
Passenger Enplanements 4,195,454 3,742,283 12.1
Available Seat
Miles (000) 4,918,765 4,621,310 6.4
Revenue Passenger
Miles (000) 3,277,245 2,872,280 14.1
Load Factor (%) 66.6 62.2 7.1
Average Passenger
Revenue Per Passenger
Mile (Cents) 11.27 11.11 1.4
Passenger Revenue Per
Available Seat Mile (Cents) 7.51 6.91 8.7
Total Operating Revenue Per
Available Seat Mile (Cents) 8.06 7.41 8.8
Operating Cost Per Available
Seat Mile (Cents) 7.60 6.75 12.6
Average Fuel Cost per
Gallon (Cents) 59.38 57.10 4.0
Full-Time Equivalent
Employees at End of Period 8,712 10,715 (18.7)
12 Months 12 Months
Ended Dec. 31, Ended Dec. 31, Percent
1995 1994 Change
Operating Statistics:
Number of Aircraft at
End of Period 93 87 6.9
Passenger Enplanements 16,848,329 15,668,793 7.5
Available Seat Miles
(000) 19,421,451 18,060,431 7.5
Revenue Passenger Miles
(000) 13,312,742 12,232,916 8.8
Load Factor (%) 68.5 67.7 0.8
Average Passenger
Revenue Per Passenger
Mile (Cents) 10.91 10.79 1.1
Passenger Revenue Per
Available Seat Mile (Cents) 7.48 7.31 2.3
Total Operating Revenue Per
Available Seat Mile (Cents) 7.98 7.80 2.3
Operating Cost Per
Available Seat Mile (Cents) 7.19 6.99 2.9
Average Fuel Cost per
Gallon (Cents) 55.82 54.89 1.7
Full-Time Equivalent
Employees at End of Period 8,712 10,715 (18.7)
PHOENIX, Jan. 29, 1996 -- America
West Airlines, Inc.,
(NYSE: AWA) announced today that certain stockholders who hold
shares of Class B Common Stock covered by the Company's shelf
registration statement intend to offer 6,100,000 of such shares
pursuant to an underwritten public offering. The selling
stockholders are affiliates of Texas Pacific Group and Mesa Air
Group, Continental Airlines, Inc., and Lehman Brothers Holdings Inc.
The shares offered were purchased by the selling stockholders in
connection with America West's emergence from Chapter 11 protection
in August 1994.
Affiliates of Texas Pacific Group, an investment firm and fund
manager, which collectively are the largest holders of shares of the
Company's Common Stock, intend to offer 2.5 million of the shares of
Class B Common Stock to be included in the offering. Upon
completion of the offering, those affiliates of Texas Pacific Group
would hold approximately 5.2 million of the Company's shares and
warrants. The other selling stockholders will also retain positions
in the Company's equity. The managing underwriters for the offering
are Merrill Lynch & Co., Donaldson, Lufkin & Jenrette Securities
Corporation and Lehman Brothers.
Continental and Mesa are expected to offer the underwriters an
option to purchase up to an additional 610,000 shares to cover over-
allotments, if any. America West will not receive any proceeds from
the offering.
"Having just completed a year in which the Company posted record
operating and pre-tax earnings, America West welcomes the
opportunity to broaden its base of institutional investors and
increase liquidity in its common stock," said W.A. Franke, chairman
and chief executive officer. "We also appreciate the confidence in
the future performance of the airline demonstrated by the selling
shareholders' decision to retain significant positions in the
Company."
Copies of the prospectus may be obtained by contacting Merrill
Lynch & Co., New York.
/CONTACT: C.A. Howlett of America West Airlines, 602-693-5519;
Owen Blicksilver of Principal Communications, 212-303-7603/
NORWALK, Conn. -- January 29, 1996 -- href="chap11.caldor.html">The Caldor
Corporation (NYSE: CLD) announced today that it has appointed
John
G. Reen as Executive Vice President, Chief Financial Officer, and a
member of the board of directors. Mr. Reen, age 46, is a former
executive vice president, chief financial officer, and member of the
board of directors of Hills Stores Company.
Don R. Clarke, Chairman and Chief Executive Officer of Caldor,
said, "By adding Jack Reen to our management team, we gain a highly
skilled, experienced executive who has a successful track record of
accomplishing the very tasks that lie ahead for Caldor. While at
Hills Stores, Mr. Reen played a key role in that company's
successful emergence from bankruptcy in 1993. He helped to
formulate its bankruptcy reorganization plan and led its financial
reorganization. We are happy to welcome him to Caldor. He will be
a major contributor to Caldor's reorganization and its future
success."
Mr. Reen joined Hills Stores Company in 1976. Prior to that
time, he held positions at Coopers & Lybrand and Bank of Boston. He
earned a bachelor's degree from Northeastern University, and an MBA
in Finance from Suffolk University. He is married and has three
children.
Mr. Reen will succeed Robert S. Schauman, who currently serves
as Senior Vice President and Chief Financial Officer. Mr. Schauman
plans to return to the St. Louis-area, where he had previously lived
and worked before joining Caldor in [1989]. Mr. Clarke said, "I
want to thank Bob for the many contributions he has made to Caldor
over the years. We wish him and his family all the best for their
return to St. Louis."
Caldor also announced today the promotion of three Senior Vice
Presidents to the positions of Executive Vice President: Dennis M.
Lee, now Executive Vice President - Human Resources and Merchandise
Distribution and Replenishment; Elliott J. Kerbis, Executive Vice
President - General Merchandise Manager - Hardlines; and Kevin
Freeman, Executive Vice President - Stores. Caldor recently
announced that the U.S. Bankruptcy Court has extended its
exclusivity period through the end of July.
The Caldor Corporation is the fourth largest discount department
store chain in the U.S., with annual sales of approximately $2.8
billion. It operates 166 stores in ten East Coast states. With a
strong consumer franchise in high density/suburban markets, Caldor
offers a diverse merchandise selection, including both softline and
hardline products.
CONTACT: Media:
Wendi Kopsick/Jim Fingeroth
Kekst and Company
(212) 593-2655
or
Investor Relations:
Dave Peterson, (203) 849-2334
MOUNTAIN VIEW, Calif. -- Jan. 29, 1996--
IntelliCorp Inc. (NASDAQ:INAI), a leading provider of "live" object-
oriented modeling software for enterprise applications, today
reported revenues of $2,505,000 for the second fiscal quarter ended
Dec. 31, 1995.
This compares to revenues of $4,243,000 for the comparable
quarter a year ago. The second quarter net loss was $721,000 or
$0.06 per share, compared to a net loss of $697,000 or $0.06 per
share, for the same period a year earlier.
Cash balances as of Dec. 31, 1995, were approximately $4,036,000.
Ken Haas, IntelliCorp's president, stated: "Total revenues for
the second fiscal quarter of 1996 were 41% lower than the comparable
quarter a year ago. This decline is largely a consequence of the
GTE development agreement termination last September, which in turn
resulted in loss of both the anticipated GTE revenue stream and the
related sales momentum. The business restructuring and reduction-in-
force that ensued further impacted our ability to retain overall
revenues at historical levels.
"Nevertheless, we have been able to manage operations and
expense levels so as to minimize the effect of the revenue shortfall
during the first half of the fiscal year. For the six months ended
Dec. 31, 1995, total revenues, at $6,764,000 were down 8% from the
comparable period of fiscal 1995, while operating expenses, at
$7,988,000 (including the first quarter restructuring charge of
$414,000), were 17% lower.
"Last October, we outlined a new corporate strategy for
IntelliCorp directed at providing `live' business modeling tools
for: best-of-breed packaged applications systems such as SAP's R/3;
popular object-oriented and/or distributed deployment platforms such
as TCSI's OSP and the C++ language; and knowledge-based or complex
logic applications. I am pleased that we are making several
additional announcements today that begin to validate and show the
initial results of this strategy.
"First, we are announcing the ModelWorks family of products,
which includes evolutions of existing products as well as new
offerings. LiveModel 2.0 (formerly OMW) and PowerModel 3.2
(formerly Kappa) are now in beta test release, with general
availability scheduled for late March. LiveModel 2.0 offers
significant new multideveloper support features, enhanced business
rules and new diagramming capabilities, while PowerModel 3.2 offers
enhanced performance and other features that will enable us to
target the high-tech manufacturing/engineering sector.
"Second, a series of new ModelBridge solutions are now available
to facilitate the delivery of LiveModel-designed applications across
a variety of deployment platforms, such as PowerModel, OSP and C++.
Other ModelBridges enable connections to databases and to legacy
systems, and can re-target applications for deployment in Windows.
"Third, we are announcing LiveModel for R/3, a new modeling
solution for users of SAP's R/3 that accelerates R/3 system
implementation by allowing implementation teams to understand their
designs more completely and thereby make business engineering
decisions more effectively.
"In addition, we are delighted to announce that Colin I. Bodell,
who brings with him more than 12 years of software industry
experience, has joined IntelliCorp as Vice President, Product
Development. Colin most recently served as Vice President for
Enterprise Client/Server Solutions at Micro Focus Inc., where he
managed a team of more than 100 developers, support engineers and
consultants. I am extremely pleased that IntelliCorp continues to
attract individuals of Colin's quality, background and expertise and
look forward to working with him to extend our new product family
and build our future.
"Finally, we are actively engaged in a search for a new senior
sales executive to replace Paul Sutton, who has stepped down as Vice
President, Worldwide Sales. In the interim, I and other company
executives are working more directly with our talented group of
regional sales directors, account managers and technical support
engineers to build our pipeline and revenue base around a promising
mix of enhanced products and new offerings."
IntelliCorp develops, markets and supports the ModelWorks
product family. LiveModel enables business analysts, developers and
end users to design information processing systems based on live
models of their operations to enhance their organization's
performance. PowerModel is widely used to build complex
applications by providing facilities for creating models and
reasoning about these models.
IntelliCorp delivers solutions to help its customers through a
combination of products, expert consulting services and a support
program. Headquartered in Mountain View, IntelliCorp has offices
across the United States and in Europe, and distributors in Asia.
IntelliCorp's World Wide Web page is " target=_new>http://www.intellicorp.com">
http://www.intellicorp.com.
IntelliCorp Inc.
Consolidated Condensed Statements of Operations
(In thousands, except per share amounts)
(unaudited)
Quarter Ended
Dec. 31,
1995 1994
Revenues $2,505 $4,243
Cost of revenues 1,073 1,601
Research and development 826 1,009
Marketing, general and
administrative 1,355 2,285
Loss from operations (749) (652)
Interest income 28 29
Loss before taxes (721) (623)
Provision for taxes -- (74)
Net loss $(721) $(697)
Net loss per common share $(0.06) $(0.06)
Shares used in per share
computations 12,195 12,028
IntelliCorp Inc.
Consolidated Condensed Balance Sheets
(Dollars in thousands)
Dec. 31, June 30,
1995 1995
ASSETS
Cash, cash equivalents and
short-term investments $4,036 $2,493
Receivables 1,261 4,414
Other current assets 179 153
Property and equipment (net) 384 519
Capitalized software (net) -- 50
Other assets 339 471
TOTAL $6,199 $8,100
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $784 $1,010
Deferred revenues 732 1,332
Other current liabilities 2,468 2,446
Common stock 42,019 41,923
Accumulated deficit (39,804) (38,611)
TOTAL $6,199 $8,100