LAS VEGAS -- Jan. 31, 1996 -- Jackpot Enterprises,
Inc. (NYSE:J) reported results for the second quarter and six
months ended December 31, 1995 and announced an $.08 per share
quarterly cash dividend.
Net income for the second quarter ended December 31, 1995
increased 13% to $1.9 million, from $1.7 million in the prior year
comparable quarter. Earnings per common share increased 11% to
$0.20 compared to $0.18 for the prior year comparable quarter. The
increase in earnings per share represents the fifth consecutive
positive quarterly earnings comparison and was achieved despite a
decline in revenues which reflects continued progress in managing
Jackpot's business and cost structure.
Revenues for the second quarter ended December 31, 1995
decreased 6% to $22.4 million from $23.8 million. The decrease of
$1.4 million in revenues was attributable to a decline in gaming
machine route operations revenues due primarily to the permanent
closing of all three Phar-Mor,
Inc. stores located in Nevada as
part of Phar-Mor's bankruptcy reorganization plan with creditors and
the closing or loss, based on our commitment to maintain pricing
discipline, of certain non-chain locations.
Net income for the six months ended December 31, 1995 increased
19% to $3.7 million, from $3.1 million in the prior year comparable
period. Earnings per common share increased 15% to $0.39, compared
to $0.34 for the prior year comparable period. Revenues for the six
months ended December 31, 1995 decreased 5.0% to $45.2 million from
$47.4 million. The decrease in revenues of $2.2 million was due
primarily to a decrease of approximately $1.9 million in gaming
machine route operations revenues for the same reasons described
above.
Despite the decrease in revenues for the second quarter and six
months ended December 31, 1995, income before income tax increased
13% and 17%, respectively, to $2.8 million and $5.4 million, from
$2.4 million and $4.6 million, principally due to decreases in
general and administrative expenses.
Earnings before interest expense, income taxes, depreciation,
amortization and other non-cash items ("EBITDA") remained relatively
constant for the second quarter and six months ended December 31,
1995 at $4.4 million and $8.8 million, respectively, compared to
$4.5 million and $8.7 million, respectively, for the prior year
comparable periods.
The company's financial condition remains strong. At December
31, 1995, the company had cash and cash equivalents of approximately
$36.4 million (50% of total assets), an increase of approximately
$3.5 million from June 30, 1995. The company's working capital and
current ratio also increased to approximately $35.1 million and 9.0-
to-1, respectively, at December 31, 1995, from $31.6 million and 6.6-
to-1, respectively, at June 30, 1995. These increases are after the
payments of quarterly cash dividends and debt of approximately $1.9
million for the six months ended December 31, 1995.
Don R. Kornstein, Jackpot's president and chief executive
officer stated, "I am very pleased with the second quarter earnings
improvement, in light of the competitive environment, which reflects
the impact of important strategic initiatives which I set in motion
during fiscal 1995. These actions were focused on attaining
improved operating efficiencies by reducing costs in many facets of
our business and avoiding customer relationships with unacceptable
returns. Looking to the future, we are also exploring opportunities
to enhance the performance of our business. Management is committed
to making the necessary investments to ensure the long-term vitality
of our business. I am confident that the contributions of all our
dedicated employees to the company's long-term strategy will
maintain Jackpot as a leader in the Nevada gaming machine route
business."
Mr. Kornstein concluded, "Management is dedicated to enhancing
Jackpot's market position and broadening the company's operations.
The company's strong financial position and access to capital
represent a competitive advantage which will enable management to
continue to explore potential strategic business investments and
acquisitions. With the ultimate objective of building shareholder
value, we are sensitive to the importance of pursuing investments
and acquisition candidates with a value orientation and/or
sustainable rates of growth. Consequently, we appreciate the
confidence of our stockholders in our judgment and discipline as we
diligently investigate numerous potential transactions."
The company also announced today that its board of directors
declared a quarterly cash dividend of $.08 per share to be
distributed on or about February 23, 1996 to stockholders of record
on February 9, 1996.
The company noted that Jackpot's outstanding warrants to
purchase common stock will expire pursuant to their terms on January
31, 1996. The elimination of the overhang of approximately 1.7
million potentially dilutive shares, or 19% of current shares
outstanding, will simplify Jackpot's capitalization and benefit the
company's holders of common stock.
Jackpot presently operates one of the largest gaming machine
route operations and four casinos, all in Nevada, aggregating
approximately 4,700 gaming machines at approximately 450 locations.
Gaming machine route operations include the operation of machines at
retail stores (supermarkets, drug stores, merchandise stores and
convenience stores), taverns and restaurants. Jackpot, through its
various subsidiary operating companies, has been continuously
involved in the expanding gaming industry in Nevada for over three
decades.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars and shares in thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
December 31, December 31,
1995 1994 1995 1994
Revenues:
Route operations $20,448 $21,846 $41,055
$42,922
Casino operations 1,936 1,933 4,130
4,480
Totals 22,384 23,779 45,185 47,402
Costs and expenses:
Route operations 15,569 16,420 31,345
32,280
Casino operations 1,729 1,660 3,492
4,065
Depreciation and
amortization 1,600 1,994 3,406 3,989
General and
administrative 1,043 1,420 2,232
2,753
Totals 19,941 21,494 40,475 43,087
Operating income 2,443 2,285 4,710
4,315
Non-operating, net 309 155 692
302
Income before income
tax 2,752 2,440 5,402
4,617
Federal income tax 881 784 1,729
1,524
Net income $ 1,871 $ 1,656 $ 3,673 $
3,093
Earnings per common
and common equivalent
share $ .20 $ .18 $ .39 $
.34
Cash dividends per share
of common stock $ .08 $ .08 $ .16 $
.16
Weighted average number
of common and common
equivalent shares 9,303 9,220 9,302
9,220
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Unaudited)
December 31, June 30,
1995 1995
Assets
Cash and cash equivalents $36,425 $32,916
Other current assets 3,014 4,340
Total current assets 39,439 37,256
Property and equipment, net 15,137 15,051
Other non-current assets 17,855 19,652
Totals $72,431 $71,959
Liabilities and Stockholders' Equity
Current liabilities $ 4,370 $ 5,616
Other liabilities 5,631 6,127
Total liabilities 10,001 11,743
Stockholders' equity 62,430 60,216
Totals $72,431 $71,959
MOUNTAIN VIEW, Calif. -- Jan. 31, 1996 -- Catalytica, Inc.
(NASDAQ:CTAL), today reported financial results for the fourth quarter
of 1995.
The company reported revenues of $4.9 million and a net loss of
$1.9 million ($0.10 per share), compared to revenues of $2.5 million
and a net loss of $2.6 million ($0.17 per share) in the fourth
quarter of 1994. For the year ended December 31, 1995, the company
reported revenues of $13.6 million and a net loss of $8.7 million
($0.55 per share), compared to revenues of $12.2 million and a net
loss of $9.1 million ($0.61 per share) last year.
Fourth quarter and fiscal 1995 revenues were higher than
revenues in the comparable 1994 periods primarily as a result of
sales of intermediates to pharmaceutical customers by the company's
fine chemicals business.
Increased expenses in fiscal 1995 reflect the cost of sales of
fine chemical products coupled with increased marketing and sales
expenses, partially offset by reduced research activities. Last
year's expenses also included a one-time charge of $0.5 million
related to a restructuring of the company s operations as it moves
from a research and development organization to a technology-based
commercial business.
Catalytica's Chief Executive Officer, Ricardo B. Levy, stated:
"We are very pleased with the progress Catalytica made in 1995,
particularly our performance in the last quarter which showed a
significant improvement over the same period in 1994. We continue
to show quarter over quarter performance improvement in our bottom
line while making progress in each of our businesses. The fine
chemicals business increased their sales in 1995 by 52% over 1994,
much of that being achieved in the fourth quarter.
"We sold over 130 tons of products to major pharmaceutical
companies during 1995, introduced four new processes into our
facility in the fourth quarter, and developed a number of new
processes for additional products for a number of additional
products, which we expect to manufacture sell in 1996."
In the fourth quarter, the company completed a public offering
of 4 million shares of its common stock. The net proceeds of
approximately $14.7 million are planned to be utilized by the
company to expand its fine chemicals business and to continue the
development of its XONON system for gas turbines.
Catalytica is developing catalytic processes and is
manufacturing products that are designed to provide economic and
environmental benefits by lowering manufacturing costs and reducing
hazardous by-products.
Catalytica, Inc.
Consolidated Statements of Operations
(in thousands, except per share amounts)
December 31,
Three Months Ended Calendar Year
1995 1994 1995 1994
Revenues
Product sales $3,943 $1,714 $ 8,858 $ 5,800
Research revenues 988 807 4,766 6,395
------ ------ ------- -------
$4,931 $2,521 $13,624 $12,195
Costs and expenses 6,904 5,265 22,649 22,114
Operating loss (1,973) (2,744) (9,025) (9,919)
Interest, net 122 164 338 774
Net loss (1,851) (2,580) (8,687) (9,145)
Shares used in
computing net
loss per share 17,826 15,038 15,785 15,070
Net loss per share $(0.10) $(0.17) $(0.55) $(0.61)
Catalytica, Inc.
Condensed Consolidated Balance Sheet
(in thousands)
December 31, 1995 December 31, 1994
Assets:
Current assets $25,756 $16,586
Property and equipment, net 5,383 5,449
Other long-term assets 100 151
------- -------
$31,239 $22,186
Liabilities and Stockholders' Equity:
Current liabilities $7,654 $4,713
Other long-term liabilities 1,556 1,694
Stockholders' equity 22,029 15,779
------- -------
$31,239 $22,186
YORKLYN, Del., Jan. 31, 1996 - NVF
Company ("NVF")
announced the filing of its Disclosure Statement to Accompany the
Joint Plan of Reorganization of NVF Company and the Official
Committee of Unsecured Creditors Under Chapter 11 of the Bankruptcy
Code with the Bankruptcy Court for the District of Delaware (the
"Bankruptcy Court").
Pursuant to the Plan, which is subject to Bankruptcy Court
approval, NVF's common stock will be extinguished and NVF will be
sold to First Security and Investment Corporation ("First
Security"). Upon confirmation, assuming that the sale to First
security closes, it is estimated that general unsecured creditors
will receive a cash distribution of approximately forty-seven cents
on the dollar. The Plan also provides for a recapitalization
alternative in the event that the sale to First Security is not
consummated. NVF's common stock will be extinguished pursuant to
the Plan and NVF stockholders will not receive any distribution.
Both the Disclosure Statement and Plan must be approved by the
Bankruptcy Court in a two step process. Once the Disclosure
Statement is approved by the Bankruptcy Court, it will be
disseminated among creditors who will have an opportunity to vote on
the Plan. A hearing on approval of the Disclosure Statement is
scheduled for March 4, 1996. There is no assurance that Bankruptcy
Court approval will be obtained.
CONTACT: John J. McNaboe, chief operating officer, NVF Company,
302-239-5281, or Ali M. M. Mojdehi, Baker & McKenzie, Counsel for
NVF Company, 619-235-7780
DALLAS, TX -- Jan. 31, 1996 -- Kimberly-Clark
Corporation, which merged with Scott Paper Company in December,
today reported higher sales and earnings for the combined company
for the fourth quarter and full year 1995, excluding a previously
announced fourth-quarter, one-time charge of $1.4 billion for
restructuring and other unusual items. The merger has been
accounted for as a pooling of interests and, accordingly, results
for 1994 and 1995 have been restated to include Scott.
For the full year, and before the effects of the 1995 one-time
pretax charge and other nonoperating items, sales were up 15.1
percent to $13.8 billion, operating profit rose 29.4 percent to $1.7
billion, income from operations climbed 50.7 percent to $1.1
billion, and earnings per share from operations increased 49.0
percent to $3.86 versus $2.59. Including unusual items, operating
profit was $213.0 million, and net income was $33.2 million or 12
cents per share.
Compared with the fourth quarter of 1994, and before the effects
of the 1995 one-time charge and other nonoperating items, quarterly
sales increased 9.0 percent to $3.4 billion, operating profit rose
2.7 percent to $352.1 million, income from operations was up 32.3
percent to $254.9 million, and earnings per share from operations
increased 31.9 percent to 91 cents per share versus 69 cents. The
company's 1995 fourth-quarter results, including unusual items, were
an operating loss of $1.1 billion and a net loss of $841.7 million
or $3.01 per share.
Commenting on full-year and quarterly results, Wayne R.
Sanders, chairman of the board and chief executive officer, said:
"As expected, results from operations were on target with analysts'
estimates for Kimberly-Clark on a stand-alone basis. Growth in
fourth-quarter sales and earnings for the combined company, however,
was limited by activities and operating costs related to the merger.
During December, shipments in the U.S. of Scott tissue products
declined as retailers sold existing stock to reduce inventories. In
addition, we took downtime at three former Scott mills at the end of
December to adjust inventory levels and to perform maintenance
originally planned for January of this year.
"These one-time integration costs are now behind us, and January
orders for these tissue products are returning to pre-December
levels," Mr. Sanders said. "We are on track with our integration
plans, and I am enthusiastic about the growth prospects for the
combined company."
Income from operations in both the 1995 and 1994 fourth quarters
included the following nonoperating items. Results for the most
recent quarter reflected an after-tax charge of $18.1 million or six
cents per share from the translation of U.S. dollar-denominated
liabilities into pesos at Kimberly-Clark de Mexico, S.A. de C.V.
and a charge of $7.6 million or three cents per share for fees and
expenses related to the spin-off of tobacco-related businesses in
the U.S. and France. In the 1994 fourth quarter, the company
recorded an after-tax charge of $39.2 million or 14 cents per share
related to the peso devaluation and gains from asset sales of $70.3
million or 25 cents per share.
Higher worldwide selling prices for tissue, pulp and newsprint,
together with improved product mix, were responsible for most of the
increase in net sales in the 1995 fourth quarter. Partially
offsetting declines in sales volumes for Scott U.S. tissue products
were increased sales volumes for tissue businesses outside the U.S.
and for personal care products in Europe and Asia.
The increase in operating profit was attributable to the higher
selling prices and improved product mix. Partially offsetting these
factors were substantially higher fiber costs and increased
marketing expenses in support of the national rollout of Viva Ultra
household towels and improved versions of Cottonelle bathroom tissue
in the U.S., the restaging of Scott Clean value towels in the U.S.
and the expansion of Huggies diapers in Europe.
Kimberly-Clark's share of net income from equity companies
improved $27.4 million quarter-to-quarter principally because of the
previously mentioned lower charge in the 1995 quarter from the
translation of U.S. dollar-denominated liabilities into pesos. The
remainder of the improvement was due to higher earnings at both
Scott's and Kimberly- Clark's Mexican affiliates.
For the quarter, and excluding the 1995 one-time charge, the
company's effective income tax rate declined to 25.7 percent from
40.4 percent a year ago. The lower rate was primarily attributable
to tax credits and higher earnings in Spain where net operating loss
carryforwards were realized and tax law changes in the Netherlands
that caused certain deferred tax assets to be recognized. In
addition, a decline in the U.S. portion of the former Scott's
fourth-quarter taxable income caused a reduction in its U.S. income
tax liability. For the full year and excluding the charge, the
company's effective tax rate declined to 33.2 percent from 40.5
percent because of the European tax credits and tax law changes
discussed above. For 1996, the company forecasts an effective tax
rate of approximately 36 percent.
Kimberly-Clark, a Fortune 100 company, is a leading manufacturer
of personal care, consumer tissue and away-from-home products. The
company's well-known personal care brands include Huggies, Pull-Ups,
GoodNites, Kotex, New Freedom, Poise and Depend. Consumer tissue
products are marketed under the trademarks Kleenex, Scott,
Cottonelle, Viva and Job Squad.
For industrial, hotel and institutional uses, the company makes
away- from-home tissue and nonwoven products with such brand names
as Scott, Surpass, Kimwipes and Wypall. Kimberly-Clark also is a
major producer of professional health care products, newsprint and
premium business, correspondence and technical papers. Worldwide,
the company has operations in 33 countries and its products are sold
in 150 countries.
NOTE: 1995 quarter-by-quarter results for Kimberly-Clark and
Scott on a consolidated and a stand-alone basis are presented in the
accompanying table titled 1995 Earnings Summary. Results for the
consolidated company reflect accounting adjustments and
reclassifications to conform the accounting practices of Scott to
those of Kimberly-Clark. Accordingly, the results for the
consolidated company do not equal the sum of the separate companies'
results. Nonoperating items by quarter are shown in order to
compare results from continuing operations.
KIMBERLY-CLARK CORPORATION
FOURTH QUARTER ENDED DECEMBER 31
(Millions except per share amounts)
1995 1994 Change
--------- --------- -------
Net Sales $ 3,442.9 $ 3,158.6 + 9.0%
Cost of products sold 2,207.8 2,071.5 + 6.6%
--------- ---------
Gross Profit 1,235.1 1,087.1 + 13.6%
Advertising, promotion and selling
expenses 665.1 548.4 + 21.3%
Research expense 57.9 56.1 + 3.2%
General expense 160.0 139.9 + 14.4%
Restructuring and other unusual
charges 1,440.0 - N.M.
--------- ---------
Operating Profit (Loss) (1,087.9) 342.7 N.M.
Interest expense (58.7) (73.1) - 19.7%
Other income (expense), net (1.7) 121.0 N.M.
--------- ---------
Income (Loss) Before Income Taxes (1,148.3) 390.6 N.M.
Provision (Benefit) for income taxes (285.1) 157.8 N.M.
--------- ---------
Income (Loss) Before Equity Interests (863.2) 232.8 N.M.
Share of net income (loss) of
equity companies 25.2 (2.2) N.M.
Minority owners' share of
subsidiaries' net income (3.7) (6.9) - 46.4%
--------- ---------
Income (Loss) from Continuing Operations
Before Extraordinary Loss (841.7) 223.7 N.M.
Income from discontinued
operation, net of income taxes - 53.4 N.M.
--------- ---------
Income (Loss) Before Extraordinary
Loss (841.7) 277.1 N.M.
Extraordinary loss, net of
income taxes - (61.1) N.M.
--------- ---------
Net Income (Loss) $ (841.7) $ 216.0 N.M.
Per Share Data:
Income (Loss) from continuing operations
before extraordinary loss $ (3.01) $ .80 N.M.
Income from discontinued
operation - .19 N.M.
Extraordinary loss - (.22) N.M.
--------- ---------
Net Income (Loss) $ (3.01) $ .77 N.M.
See Notes to Financial Summaries
Unaudited
KIMBERLY-CLARK CORPORATION
TWELVE MONTHS ENDED DECEMBER 31
(Millions except per share amounts)
1995 1994 Change
--------- --------- -------
Net Sales $13,788.6 $11,979.2 + 15.1%
Cost of products sold 8,828.1 7,793.7 + 13.3%
--------- ---------
Gross Profit 4,960.5 4,185.5 + 18.5%
Advertising, promotion and selling
expenses 2,496.5 2,144.0 + 16.4%
Research expense 207.2 208.8 - 0.8%
General expense 603.8 555.6 + 8.7%
Restructuring and other unusual
charges 1,440.0 - N.M.
--------- ---------
Operating Profit 213.0 1,277.1 - 83.3%
Interest expense (245.5) (270.5) - 9.2%
Other income (expense), net 136.9 141.3 - 3.1%
--------- ---------
Income Before Income Taxes 104.4 1,147.9 - 90.9%
Provision for income taxes 153.5 464.9 - 67.0%
--------- ---------
Income (Loss) Before Equity Interests(49.1) 683.0 N.M.
Share of net income of equity
companies 113.3 110.5 + 2.5%
Minority owners' share of
subsidiaries' net income (31.0) (27.0) + 14.8%
--------- ---------
Income from Continuing Operations
Before Extraordinary Loss 33.2 766.5 - 95.7%
Income from discontinued
operation, net of income taxes - 48.4 N.M.
--------- ---------
Income Before Extraordinary Loss 33.2 814.9 - 95.9%
Extraordinary loss, net of
income taxes - (61.1) N.M.
--------- ---------
Net Income $ 33.2 $ 753.8 - 95.6%
Per Share Data:
Income from continuing operations
before extraordinary loss $ .12 $ 2.76 - 95.7%
Income from discontinued
operation - .17 N.M.
Extraordinary loss - (.22) N.M.
--------- ---------
Net Income $ .12 $ 2.71 - 95.6%
See Notes to Financial Summaries
Unaudited
KIMBERLY-CLARK CORPORATION
TWELVE MONTHS ENDED DECEMBER 31
(Millions except per share amounts)
1995 1994 Change
--------- --------- -------
TWELVE MONTHS ENDED DECEMBER 31
Cash Dividends Paid Per Share $ 1.24 $ 1.23 + .8%
Capital Spending 817.6 857.3 - 4.6%
TWELVE MONTHS ENDED DECEMBER 31
Net Income Return on Average
Stockholders' Equity 28.4% (a) 19.0%
Operating Profit Return on Average
Assets 14.2% (a) 10.4%
(a) Excluding restructuring and other unusual charges.
See Notes to Financial Summaries
Unaudited
KIMBERLY-CLARK CORPORATION
NOTES TO FINANCIAL SUMMARIES
(1) On December 12, 1995, Kimberly-Clark Corporation ("Kimberly-
Clark" or the "Corporation") entered into a merger with Scott Paper
Company ("Scott"), a worldwide producer of sanitary tissue products,
whereby the Corporation issued .78 of a share of its common stock
for each share of Scott common stock. The $9.4 billion transaction
qualified as a tax-free reorganization for income tax purposes and
has been accounted for as a pooling of interests for financial
reporting. A worldwide plan has been put in place to integrate the
operations of Scott into those of Kimberly-Clark.
(2) In conjunction with the worldwide integration plan, the
Corporation recorded a one-time pretax charge of $1,440.0 million to
cover the estimated costs of the merger with Scott, for
restructuring the combined operations, and for other unusual items.
The pretax cost of the 1995 one-time charge has been recorded in
operating profit. The income tax benefit of the 1995 one-time
charge is estimated at $360.0 million. The 1995 one-time charge,
net of applicable income taxes and minority interests, reduced 1995
net income by $1,070.9 million, or $3.83 per share.
(3) Other income (expense), net and net income (loss) for the
twelve months ended December 31, 1995, include a pretax gain of
$61.4 million ($40.0 million after-tax or $.14 per share) related to
the sale of 80 percent of Midwest Express Holdings, Inc.
(4) Other income (expense), net and net income (loss) for the
fourth quarter and twelve months ended December 31, 1994, include a
pretax gain of $99.2 million ($62.5 million after-tax or $.22 per
share) related to the sales of the Mobile, Ala. energy and recovery
complex assets and Scott Health Care.
(5) Share of net income (loss) of equity companies and net
income (loss) for the fourth quarter and twelve months ended
December 31, 1995, include nonoperating charges of $18.1 million, or
$.06 per share and $38.5 million, or $.14 per share, respectively.
For the fourth quarter and twelve months ended December 31, 1994,
the charge was $39.2 million, or $.14 per share. These effects are
related to the translation of U.S. dollar denominated liabilities
into pesos at the Company's Mexican affiliate which have been
incurred as a result of fluctuations in the value of the Mexican
peso.
(6) The average number of common shares outstanding for the
twelve months ended December 31, 1995 and 1994 was 279.5 million and
278.2 million, respectively.
Unaudited
1995 EARNINGS SUMMARY
(Millions except per share amounts)
First Quarter Second Quarter
---------------------------- -----------------------
Historical Results Historical Results
------------------ ------------------
Consoli- Consoli-
K-C Scott dated K-C Scott dated
-------- ------- -------- -------- -------- --------
1995 Results:
-------------
Net Sales $2,014.6 $1,003.3 $3,255.3 $2,152.0 $1,057.5 $3,483.6
Operating
Profit 223.3 159.1 368.9 257.5 217.9 435.7
Net Income 108.7 96.9 199.6 163.3 145.5 307.4
Net Income
Per Share $.68 $.64 $.71 $1.02 $.96 $1.10
Adjusted for
Nonoperating
Items:
-------------
Effect of
Mexican
peso .17 .10 (.05)
(.03)
Asset
disposals
and other .02 (.16)
(.08)
-------- ------- -------- -------- -------- --------
Income Per
Share From
Operations $.85 $.64 $.81 $.99 $.80
$.99
Third Quarter Fourth Quarter
---------------------------- ----------------------
Historical Results Historical Results
------------------ ------------------
Consoli- Consoli-
K-C Scott dated K-C Scott dated
-------- ------- -------- -------- -------- --------
1995 Results:
-------------
Net Sales $2,212.3 $1,093.4 $3,606.8 $2,115.7 $ 977.4 $3,442.9
Operating
Profit
(Loss) 280.4 224.5 496.3 (453.0) (656.6) (1,087.9)
Net Income
(Loss) 208.6 155.4 367.9 (381.7) (468.3) (841.7)
Net Income
(Loss) Per
Share $1.30 $1.02 $1.32 $(2.38) $(3.08) $(3.01)
Adjusted for
Nonoperating
items:
--------------
One-time
charge 3.29 3.57 3.83
-------- ------- -------- -------- -------- --------
Income before
one-time
charge 1.30 1.02 1.32 .91 .49 .82
-------- ------- -------- -------- -------- --------
Other unusual
items:
Effect of
Mexican
peso .01 .01 .11 .06
Midwest
Express
IPO (.25) (.14)
Asset
disposals
and other (.07) (.04) .05 .03
-------- ------- -------- -------- -------- --------
Income Per
Share From
Operations $1.06 $.95 $1.15 $1.07 $.49 $.91
Full Year
-----------------------------
Historical Results
------------------
Consoli-
K-C Scott dated
-------- -------- ---------
1995 Results:
-------------
Net Sales $8,494.6 $4,131.6 $13,788.6
Operating
Profit
(Loss) 308.2 (55.1) 213.0
Net Income
(Loss) 98.9 (70.5) 33.2
Net Income
(Loss) Per
Share $.62 $(.46) $.12
Adjusted for
Nonoperating
Items:
-------------
One-time
charge 3.29 3.57 3.83
-------- -------- ---------
Income before
one-time
charge 3.91 3.11 3.95
-------- -------- ---------
Other Unusual
items:
Effect of
Mexican
peso .24 .14
Midwest
Express
IPO (.25) (.14)
Asset
disposals
and
other .07 (.23) (.09)
-------- -------- ---------
Income Per
Share From
Operations $3.97 $2.88 $3.86
Historical Results
Presents the separate Net Sales, Operating Profit, Net Income
and Net Income Per Share of both Kimberly-Clark and Scott. Data for
the first three quarters were derived from the Form 10-Qs filed by
each company. The fourth quarter and full year separate company
financial data have been prepared on a "stand-alone" basis for both
Kimberly-Clark and Scott in a manner consistent with the first three
quarters.
Consolidated
Presents the consolidated Net Sales, Operating Profit, Net
Income and Net Income Per Share of the merged companies based on
pooling of interests accounting and includes appropriate
reclassification entries and accounting adjustments to conform the
accounting practices of Scott to those of Kimberly-Clark.
Accordingly, the sum of the separate companies' results does not
equal the Consolidated column.
Nonoperating Items
Presents the after-tax effects of major unusual income statement
items on a per share basis utilizing the average shares of the
respective companies that were outstanding during the period. The
Consolidated column presents this data on a per share basis
utilizing the average shares of the merged company that were
outstanding during the period.
Income Per Share From Operations
Presents the after-tax income from normal operations of the
separate companies and the consolidated entity on a per share basis
utilizing the average shares of the respective companies that were
outstanding during the period. The Consolidated column presents
this data on a per share basis utilizing the average shares of the
merged company that were outstanding during the period.
Unaudited
CONTACT: Tina S. Barry, Kimberly-Clark Corporation, 214/281-1484
NORTHBROOK, Ill. -- Jan. 31, 1996 -- href="chap11.dauphin.html">Dauphin Technology Inc. today announced that
the United States Bankruptcy court has entered two orders approving a
series of business agreements.
These agreements conclude Dauphin's relationship with Cormark
and former Dauphin directors Kevin E. Koy, John Prinz, and John
Russell Felker. Previously, the board of directors had removed Koy
and Felker from their positions as chief executive officer and
president, respectively, and elected Andrew Kandalepas to assume
leadership of the company as chief executive officer, president, and
chairman of the board. Additionally, on Jan. 18, the company filed
an amended Plan of Reorganization. Currently, Dauphin is preparing
its disclosure statement for filing with the United States
Bankruptcy Court.
Immediately after the court's acceptance of the agreements,
Dauphin's board of directors convened to approve and implement the
company's new strategic plan as set forth by CEO Kandalepas.
Kandalepas expressed confidence in Dauphin's ability to conclude
bankruptcy proceedings in the near future and become a viable force
in current technological development via product diversification and
strategic partnerships.
Dauphin is publicly traded through the National Quotation Bureau
Pink Sheets under the symbol DNTKQ.
CONTACT: Dauphin Technology Inc., Northbrook;
Nina L. O'Connor, 847/559-8443 ext. 206
AUSTIN, Texas -- Jan. 31, 1996 -- href="chap11.healthcare.html">Healthcare
America, Inc. today announced that John P. Harcourt, Jr. has been
elected president and chief executive officer and Michael C.
Piercey, M.D., executive vice president and medical director of the
company.
Harcourt replaces Kevin P. Sheehan, who resigned the post last
week (January 22).
Harcourt also announced that Healthcare America filed a Chapter
11 bankruptcy petition that includes a pre-arranged reorganization
plan supported by all of the company' senior lenders. The voluntary
petition was filed today in U.S. Bankruptcy Court in Austin, Texas.
According to the bankruptcy plan, no creditors other than the
company's senior lenders will be impaired.
"The bankruptcy will involve only the parent corporation, so no
impact should be felt by patients, referring agencies, employees,
medical staff, or vendors at our individual facilities," said
Harcourt.
"Moreover, this action will give the company a firm financial
footing by eliminating much of our debt. We will then be in a
position to go forward and grow, thus protecting the quality of our
care, our relationships with referral sources, the integrity of our
medical and clinical services, the jobs of our staff, and the
interests of our vendors," Harcourt said.
Austin-based Healthcare America operates 10 psychiatric
healthcare systems, two rehabilitation hospitals, and two acute care
hospitals. The company is active in seven states.
Harcourt said the reorganization plan is included in a
definitive agreement which anticipates that a portion of the
proceeds from the future sale of any facility would be allocated to
Healthcare America's approximately 1,300 shareholders, whose
interests otherwise will be extinguished in the bankruptcy
reorganization. Under the agreement, shareholders as a group could
receive up to $2.5 million in the aggregate.
Harcourt and Piercey are experienced managers of psychiatric
medical facilities. They operate Rock Creek Center, an Illinois
psychiatric healthcare system, and they previously served together
as senior officers of another multi-hospital company that included
the nation's first psychiatric managed care operation.
Healthcare America was created at the end of 1993 through the
combination of Healthcare International, Inc., a hospital management
company, and HealthVest, a real estate investment trust.
Healthcare America is a healthcare management company that owns
and operates acute care, long-term rehabilitation, psychiatric
hospitals, community living programs, and a full array of partial
hospital and outpatient services in Texas, California, Colorado,
Florida, Oklahoma, Tennessee and Virginia. Healthcare America is
traded over-the-counter through the National Daily Quotation System
"Pink Sheets" published by the National Quotation Bureau, Inc.
CONTACT: Healthcare America, Inc., Austin
John P. Harcourt, Jr., 512/464-0200, x6208
HOUSTON, Jan. 31, 1996 - Pennzoil Co. (NYSE: PZL)
reported a net loss of $305 million ($6.60 per share) for 1995,
reflecting $297 million in one-time, after-tax charges for adoption
of a new accounting standard and other nonrecurring items.
This compares with a net loss of $289 million ($6.27 per share)
for 1994, after $317 million of after-tax nonrecurring charges,
including charges associated with the resolution of Pennzoil's tax
dispute with the IRS.
Excluding nonrecurring charges, Pennzoil's 1995 adjusted loss
was $8 million (17 cents per share), compared to 1994 adjusted
earnings of $28 million (61 cents per share).
For the fourth quarter of 1995, Pennzoil reported a net loss of
$28 million (60 cents per share), primarily resulting from severance
charges associated with a previously announced cost-reduction
program and a refinery fire.
Excluding $37 million in after-tax, nonrecurring charges, fourth
quarter 1995 adjusted earnings were $9 million (18 cents per share).
This compares to an adjusted loss of $7 million (15 cents per
share) for the 1994 fourth quarter.
Pennzoil's annual revenues amounted to $2.5 billion for 1995,
versus $2.6 billion in 1994. Fourth quarter revenues were $608
million in 1995, versus $657 in 1994.
James L. Pate, chairman and chief executive officer, said that
Pennzoil's 1995 results were severely impacted by the collapse of
natural gas prices and the nonrecurring charges relating primarily
to a mandatory accounting change.
"Although natural gas prices spiked at the end of 1995," Pate
said, "prices reached a seven-year low last summer. Consequently,
Pennzoil's average realized price for gas in 1995 was $1.46, or 33
cents below 1994. The gas price decline cost the company
approximately $78 million in pretax operating income, or more than
$1 per share of net income."
Early adoption in the third quarter of the provisions of a
mandated accounting rule governing long-lived asset realization
resulted in a $400 million pretax ($265 million after tax) charge.
Pate noted that as a result of this charge, Pennzoil's annual
depreciation, depletion and amortization (DD&A) expenses will be
reduced by about $42 million for the next several years.
Other pretax nonrecurring charges in 1995 included: employee
severance charges primarily related to the general and
administrative cost-reduction program, $20 million; fire loss at the
Rouseville, Pa. refinery, $20 million; and other net nonrecurring
charges of $9 million.
The cost-reduction program was initiated by Pennzoil in October
to reduce general and administrative expenses by a targeted $75
million annually. According to Pate, that effort continues and will
be completed on schedule.
1995 Operational Results
Oil and gas segment earnings declined in 1995 primarily due to
depressed natural gas prices. While gas prices were lower, liquids
prices improved 57 cents a barrel over the prior year average.
Pennzoil estimates it replaced approximately 126 percent of its
production in 1995. Production costs were down from $5.32 to $5.09
per barrel of oil equivalent, and finding and development costs were
reduced to approximately $4 per barrel of oil equivalent - a
significant improvement over 1994.
The oil and gas segment is implementing additional operating
cost improvements in 1996, anticipating lowering expenses to $4.25
per barrel equivalent by year's end.
Oil and gas 1995 operating income, adjusted to exclude
nonrecurring items, totaled $91 million, versus $126 million in
1994.
Motor oil and refined products operating income was down sharply
for the year primarily due to nonrecurring charges, lower fuel and
other products margins and higher manufacturing expenses.
Included in the nonrecurring charges for the year were losses
associated with the shutdown of the company's Eureka crude pipeline
in West Virginia, refinery fire loss in Pennsylvania and
restructuring costs for international marketing operations. These
were partially offset by higher domestic motor oil margins.
Pennzoil motor oil remained the nation's best selling brand for
the tenth consecutive year, with 21 percent share of the market,
seven points above its nearest competitor.
The motor oil and refined products segment 1995 operating
income, excluding nonrecurring charges, totaled $69 million, versus
$87 million for 1994.
Franchise operations reported strong earnings performance, with
increases in Jiffy Lube sales volumes, car counts and ticket prices,
while overhead costs remained essentially flat.
Franchise operations had 1995 operating income, excluding
nonrecurring items, of $19 million, versus $11 million in 1994.
The following are the unaudited results of operations for
the quarter and twelve months ended December 31, 1995
compared with the same periods in 1994.
Three Months Ended
December 31
------------------
1995 1994
---- ----
(Expressed in thousands except per share amounts)
REVENUES
Oil and Gas $ 174,637 $ 237,884
Motor Oil & Refined Products 379,549 358,761
Franchise Operations 72,432 65,345
Sulphur - 23,056
Other 16,324 15,929
Intersegment sales -34,921 -43,571
------------- -------------
Total revenues $ 608,021 $ 657,404
OPERATING INCOME (LOSS)
Oil and Gas (1) $ 27,036 $ 6,244
Motor Oil & Refined Products -27,506 15,402
Franchise Operations 2,874 3,371
Sulphur - 1,249
Other 15,635 16,220
------------- -------------
Total operating income 18,039 42,486
Corporate administrative expenses 25,302 13,468
Interest charges, net (2) 49,780 52,862
------------- -------------
Loss before income tax -57,043 -23,844
Income tax benefit (3) -29,234 -12,359
------------- -------------
LOSS BEFORE CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING PRINCIPLE -27,809 -11,485
Cumulative effect of change in
accounting principle - -
------------- -------------
NET LOSS $ -27,809 $ -11,485
LOSS PER SHARE
Loss before cumulative effect of
change in accounting principle $ -.60 $ -.25
Cumulative effect of change in
accounting principle - -
------------- -------------
TOTAL $ -.60 $ -.25
AVERAGE SHARES OUTSTANDING 46,332 46,094
NUMBER OF SHARES OUTSTANDING 46,370 46,127
Twelve Months Ended
December 31
-------------------
1995 1994
---- ----
(Expressed in thousands except per share amounts)
REVENUES
Oil and Gas $ 732,356 $ 833,938
Motor Oil & Refined Products 1,539,351 1,509,694
Franchise Operations 289,222 258,102
Sulphur - 71,902
Other 87,133 59,673
Intersegment sales -158,076 -170,366
------------- -------------
Total revenues $ 2,489,986 $ 2,562,943
OPERATING INCOME (LOSS)
Oil and Gas (1) $ 91,967 $ -4,901
Motor Oil & Refined Products 12,044 41,767
Franchise Operations 13,188 2,814
Sulphur - -57,407
Impairment of Long-Lived Assets -399,830 -
Other 74,024 55,598
------------- -------------
Total operating income (loss) -208,607 37,871
Corporate administrative expenses 74,720 66,324
Interest charges, net (2) 194,348 476,641
------------- -------------
Loss before income tax -477,675 -505,094
Income tax benefit (3) -172,533 -221,355
------------- -------------
LOSS BEFORE CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING PRINCIPLE -305,142 -283,739
Cumulative effect of change in
accounting principle - -4,948
------------- -------------
NET LOSS $ -305,142 $ -288,687
LOSS PER SHARE
Loss before cumulative effect of
change in accounting principle $ -6.60 $ -6.16
Cumulative effect of change in
accounting principle - -0.11
------------- -------------
TOTAL $ -6.60 $ -6.27
AVERAGE SHARES OUTSTANDING 46,245 46,014
NUMBER OF SHARES OUTSTANDING 46,370 46,127
(1) 1994 twelve month totals include $93,875 in charges
associated with the IRS settlement.
(2) 1994 twelve month totals include $294,312 in charges
associated with the IRS settlement.
(3) 1994 twelve month totals include $177,762 in
tax benefits associated with the IRS settlement.
OPERATING HIGHLIGHTS
(Unaudited)
Three Months Ended
December 31
------------------
1995 1994
---- ----
OPERATING DATA
--------------
OIL AND GAS
Net production
Crude oil, condensate and natural
gas liquids (barrels per day) 61,220 73,156
Natural gas produced for sale
(Mcf per day) 586,486 753,872
Weighted average prices
Crude oil, condensate and natural
gas liquids (per barrel) $ 13.81 $ 13.99
Natural gas (per Mcf) $ 1.68 $ 1.45
MOTOR OIL & REFINED PRODUCTS
Sales (barrels per day)
Gasoline and naphtha 21,954 20,816
Distillates and gas oils 24,314 28,402
Lubricating oil and other specialty
products 21,576 22,328
Residual fuel oils 2,571 3,330
------------- -------------
Total sales (barrels per day) 70,415 74,876
Raw materials processed
(barrels per day) 31,572 57,739
Refining capacity
(barrels per day) 62,700 62,700
FRANCHISE OPERATIONS
Domestic systemwide
sales (in thousands) $ 164,755 $ 158,563
Same center sales (in thousands) $ 156,436 $ 156,633
Centers open (U.S.) 1,198 1,132
OPERATING HIGHLIGHTS
(Unaudited)
Twelve Months Ended
December 31
-------------------
1995 1994
---- ----
OPERATING DATA
--------------
OIL AND GAS
Net production
Crude oil, condensate and natural
gas liquids (barrels per day) 67,143 68,709
Natural gas produced for sale
(Mcf per day) 662,311 716,962
Weighted average prices
Crude oil, condensate and natural
gas liquids (per barrel) $ 14.31 $ 13.74
Natural gas (per Mcf) $ 1.46 $ 1.79
MOTOR OIL & REFINED PRODUCTS
Sales (barrels per day)
Gasoline and naphtha 20,618 24,168
Distillates and gas oils 26,434 29,978
Lubricating oil and other specialty
products 22,966 23,079
Residual fuel oils 3,381 3,361
------------- -------------
Total sales (barrels per day) 73,399 80,586
Raw materials processed
(barrels per day) 47,966 58,703
Refining capacity
(barrels per day) 62,700 62,700
FRANCHISE OPERATIONS
Domestic systemwide
sales (in thousands) $ 656,594 $ 607,467
Same center sales (in thousands) $ 622,961 $ 599,426
Centers open (U.S.) 1,198 1,132
BOSTON, Jan. 31, 1996 - Two Framingham, Massachusetts
men, a father and son, pleaded guilty today to illegal gambling.
The father also pleaded guilty to money laundering and extortion.
In a separate case, the father also pleaded guilty to making false
statements to banks in order to obtain credit cards, and to
concealing assets in his bankruptcy to defraud his creditors.
United States Attorney Donald K. Stern stated that JOHN J.
SNELL, SR., age 52, of 80 Hartford Street, Framingham,
Massachusetts, pleaded to conducting an illegal gambling business,
two counts of extortion and four counts of money laundering. In
addition, JOHN J. SNELL, JR., age 27, of 3 Nipmuc Terrace,
Framingham, Massachusetts pleaded guilty to conducting an illegal
gambling business.
At a hearing today before U.S. District Judge Nancy Gertner, a
federal prosecutor stated that SNELL, SR., ran an illegal gambling
business, extended and collected an extortionate loan
(loansharking), and laundered the proceeds of those illegal
activities. According to the prosecutor, SNELL, JR. also ran an
illegal gambling business.
The defendants face a maximum sentence of twenty years on each
of the money laundering and extortion counts and five years on the
illegal gambling counts. In addition, each faces a maximum fine of
$250,000 on each count.
The investigation was conducted by the Federal Bureau of
Investigation, with the assistance and cooperation of the Internal
Revenue Service, the Massachusetts State Police, and the Framingham
Police Department. The illegal gambling and money laundering case
is being prosecuted by Assistant U.S. Attorney Jeffrey Auerhahn of
Stern's Strike Force Unit.
In a separate case, JOHN J. SNELL, SR. pleaded guilty to three
counts of obtaining credit cards by providing false information as
to his employment, his income, and his social security number. A
government attorney informed the Court that, at the time he filed
for bankruptcy in October, 1991, SNELL, SR. owed banks about $20,000
on those cards. SNELL, SR. also pleaded guilty to two counts of
bankruptcy fraud for concealing from his creditors that he owned
about $36,000 worth of jewelry, and had $16,000 in a bank account in
someone else's name, and for using a false social security number.
In the fraud case, SNELL, SR. faces a maximum penalty of twenty
years' imprisonment and a $1 million fine on two of the false
statement counts, two years' imprisonment and a $250,000 fine on the
third false statement count, and five years' imprisonment and a
$250,000 fine on each of the two bankruptcy fraud counts.
The fraud case was investigated by agents of the Federal Bureau
of Investigation, referred by the U.S. Trustee's Office in Boston,
and is being prosecuted by Assistant U.S. Attorney Mark J.
Balthazard of Stern's Economic Crimes Unit.
Judge Gertner set the sentencing of JOHN J. SNELL, SR. for April
9, 1996 and for JOHN J. SNELL, JR. for March 14, 1996.
/CONTACT: Joy Fallon and Anne-Marie Kent of the US Attorney's
Office, 617-223-9445/
GLENDALE, Calif., Feb. 1, 1996 - Fidelity Federal Bank,
FSB ("Fidelity" or the "Bank") today announced its financial results
for the fourth quarter of 1995, during which it successfully
completed its previously announced recapitalization, raising a net
aggregate total of approximately $134 million in new equity. In the
fourth quarter the Bank recorded a $45 million loan portfolio charge
in connection with the adoption of its previously announced
accelerated asset resolution plan. Fidelity will continue to explore
various alternatives for resolving those multifamily loans and
assets which are identified for inclusion in the resolution plan
pool.
Richard M. Greenwood, President and Chief Executive Officer,
said: "As a result of the capital infusion Fidelity is now a `well-
capitalized' institution. With the recapitalization behind us we
are now well positioned to continue to resolve our problem assets
and to improve our financial efficiency.
"Loan delinquencies fell again this quarter and are at their
lowest levels since 1991, and nonperforming loan levels also
declined. We have continued to reduce our operating expense base
and we expect to achieve further cost-reduction in future quarters."
Fourth-Quarter 1995 Operating Results
The Bank recorded a net loss for the quarter ended December 31,
1995, of $50.4 million ($1.08 per common share based on weighted
average shares outstanding of 46.8 million), primarily reflecting
the $45 million charge for the accelerated asset resolution plan.
For the comparable period in 1994 a net loss of $14.8 million ($0.57
per common share based on weighted average shares outstanding of
26.0 million) was recorded.
For the full year, the Bank reported a net loss of $69.0 million
($2.21 per common share based on weighted average shares outstanding
of 31.2 million), compared to a net loss of $128.4 million ($9.77
per common share based on weighted average shares outstanding of
13.1 million) for full-year 1994.
Fourth-quarter 1995 net interest income of $18.7 million
increased $0.6 million, or 3.6%, from the third quarter and
decreased $0.8 million, or 4.1%, from the 1994 fourth quarter.
Fidelity's net yield on interest-earning assets for the quarter was
2.27%, compared to 2.17% in the third quarter and 2.15% for the 1994
fourth quarter.
The 1995 fourth-quarter provision for estimated loan losses of
$45.8 million increased $37.0 million from the 1995 third quarter
and $23.9 million from the same period in 1994 principally as a
result of the adoption of the accelerated asset resolution plan in
the fourth quarter, as contemplated in the Bank's recapitalization
plan.
At year-end, total delinquent loans decreased to $71.9 million,
or 2.4% of total loans, from $80.7 million, or 2.7% of total loans,
at September 30, 1995, and $106.8 million, or 3.3% of total loans,
at December 31, 1994, with delinquencies falling in all categories.
Of the total, delinquencies in the 90-days-and-over category were
$51.9 million at December 31, 1995, compared to $55.1 million at
September 30, 1995.
During the 1995 fourth quarter, nonperforming assets fell to
$71.4 million, or 2.2% of total assets, from $92.7 million, or 2.7%
of total assets, at September 30, 1995 and $85.7 million, or 2.3% of
total assets, at December 31, 1994, primarily as a result of sales
of real estate owned acquired by the Bank through foreclosure.
Included in nonperforming assets at December 31, 1995 were
nonaccruing delinquent loans of $51.9 million and real estate owned
of $19.5 million, compared to $55.1 million and $37.6 million at
September 30, 1995, respectively.
Operating expenses, net of a $4.3 million charge relating to the
reserving of previously capitalized costs (associated with the
modification and implementation of certain purchased software),
decreased $1.5 million, or 7.3%, from third-quarter levels.
Operating efficiency (operating expenses divided by net interest
income and noninterest income, excluding non recurring items) was
85.7% in the fourth quarter, compared to 92.3% in the third quarter.
At the end of the fourth quarter, staffing levels were approximately
7% below September 1995 levels and 25% below December 1994 levels.
Capital Position
As of December 31, 1995, the Bank's tangible, core and risk-
based capital ratios were 6.91%, 6.92% and 12.43%, respectively,
exceeding the minimum regulatory capital requirements for a "well-
capitalized" institution. These ratios do not take into account the
proposed one- time assessment for SAIF insured institutions
currently under consideration by Congress. While the outcome of the
pending congressional legislation cannot be predicted with
certainty, it is likely that Fidelity would continue to maintain
capital ratio levels necessary to be considered a "well-capitalized"
institution after such an assessment, if implemented in its
currently proposed form.
Stockholders equity totaled $229 million at December 31, 1995
with a book value per common share outstanding at year-end of $2.43.
Reverse Stock Split
Fidelity also announced that it has proposed a 1 for 4 reverse
stock split of its shares of Class A Common Stock and is seeking
shareholder approval for the split at a special meeting to be held
in early February. The Bank anticipates applying for listing on the
Nasdaq National Market. Fidelity's common stock shares are
currently quoted on the Nasdaq OTC Bulletin Board under the symbol
FDFBA.
Fidelity Federal Bank, FSB offers a broad range of consumer
financial services, including demand and term deposits and mortgage
loans. In addition, through Gateway Investment Services, Inc., a
NASD- registered broker/dealer, Fidelity provides customers of the
Bank with investment products, including mutual finds, annuities and
unit investment trusts. Fidelity operates through 33 branches, all
of which are located in Southern California, principally in Los
Angeles and Orange counties.
FIDELITY FEDERAL BANK, A FEDERAL SAVINGS BANK AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands, except per share amounts)
December 31 December 31
1995 1994
Assets: (Unaudited)
Cash and due from banks $94,444 $74,065
Investment securities
available for sale, at fair
value 94,655 24,158
Investment securities held to
maturity, at amortized cost 125,233
Mortgage-backed securities
available for sale, at fair
value 31,733 46,028
Loans held for sale, at lower
of cost or market --- 48,315
Loans receivable, net of
allowances 2,935,116 3,239,988
Interest receivable 20,162 20,256
Investment in FHLB stock 49,425 47,017
Real estate owned, net 19,521 14,115
Premises and equipment, net 34,333 50,039
Other assets 20,055 20,624
Total Assets $3,299,444 $3,709,838
Liabilities and Stockholders' Equity:
Liabilities:
Deposits $2,600,869 $2,697,272
FHLB Advances 292,700 332,700
Commercial paper 50,000 400,000
Mortgage-backed notes 100,000 100,000
Other liabilities 26,832 23,319
Total Liabilities 3,070,401 3,553,291
Stockholders' Equity:
Serial preferred stock, no par value;
2,070,000 shares outstanding at December
31, 1995; liquidation preference $25.00
per share 51,750 ---
Common Stock:
Class A common stock, par
value $.01 per share; 71,062,717 and
19,860,474 shares outstanding at 711 199
at December 31, 1995 and
December 31, 1994, respectively
Class B common stock, par
value $.01 per share; no shares
authorized or outstanding at
December 31, 1995 and 4,202,243
shares outstanding at December 31, 1994 --- 42
Class C common stock, par
value $.01 per share;
1,907,143 shares outstanding at 19 19
December 31, 1995 and 1994
Paid-in capital 261,603 179,431
Unrealized gains (losses) on securities 788 (3,482)
Minimum pension liability
adjustment --- (2,813)
Retained deficit (85,828) (16,849)
Total Stockholders' Equity 229,043 156,547
Total Liabilities Stockholders'
Equity $3,299,444 $3,709,838
Quarter Ended Year ended
December 31, December 31,
1995 1994 1995 1994
(Unaudited)
Interest Income:
Loans $57,192 $55,476 $227,710 $226,949
Mortgage-backed securities 489 553 3,535 2,868
Investment securities and
other 4,005 3,352 15,232 11,648
Total interest income 61,686 59,381 246,477 241,465
Interest Expense:
Deposits 33,446 26,790 128,242 108,310
FHLB Advances 4,126 5,099 17,411 17,663
Other borrowings 5,380 7,954 29,183 25,526
Subordinated notes - - - 4,329
Total interest expense 42,952 39,843 174,836 155,828
Net Interest Income 18,734 19,538 71,641 85,637
Provision for estimated
loan losses 45,800 21,947 69,724 65,559
Net Interest Income after
Provision for Estimated
Loan Losses (27,066) (2,409) 1,917 20,078
Noninterest Income (Expense):
Loan fee income 396 1,390 3,606 4,518
Gains (losses) on loan
sales, net (139) (197) 522 (3,963)
Fee income from sale of
uninsured investment
products 875 868 4,117 3,419
Fee income on deposits
and other 816 1,318 3,260 4,522
Gains (losses) on securities
activities, net - 2,063 4,098 1,130
Gain on sale of servicing 106 - 4,604 -
2,054 5,442 20,207 9,626
Provision for estimated real
estate losses (593) (942) (3,366) (8,768)
Direct costs of real estate
operations, net (1,515) (460) (5,779) (8,651)
(2,108) (1,402) (9,145) (17,419)
Total noninterest
income (expense) (54) 4,040 11,062 (7,793)
Operating Expense:
Personnel and benefits 8,163 8,842 34,859 44,368
Occupancy 3,005 3,051 12,337 13,707
FDIC insurance 2,043 2,079 8,205 9,340
Professional services 2,610 2,118 10,601 10,208
Office-related expenses 1,221 1,586 4,611 6,647
Marketing 60 459 1,562 2,281
General insurance 486 466 1,914 1,697
Bank clearing 462 372 1,660 2,033
Other 5,252 682 6,205 1,578
23,302 19,655 81,954 91,859
Restructuring and
Recapitalization charges,
net - (2,722) - 65,394
Total operating expense 23,302 16,933 81,954 157,253
Loss Before Income Taxes (50,422) (15,302) (68,975) (144,968)
Income tax expense (benefit) - (467) 4 (16,524)
Net Loss ($50,422) ($14,835) ($68,979) ($128,444)
Net Loss Per Common Share ($1.08) ($0.57) ($2.21) ($9.77)
Weighted Average Common
Shares Outstanding 46,834,115 25,969,860 31,228,806 13,147,839
At or for the At or for the
quarter ended year ended
December 31, December 31,
1995 1994 1995 1994
(Unaudited)
Financial Data for the Period:
Real estate loans funded $1,897 $35,042 $19,396 $521,580
(Decrease) increase in
deposits ($64,722) $43,858 ($96,403) ($671,392)
Operating expenses to
average assets (1) 2.21% 2.07% 2.28% 2.27%
Operating efficiency
ratio (1) (2) 85.73% 85.77% 89.81% 97.58%
Financial Data at end of the Period:
Total assets $3,299,444 $3,709,838
Total loans and mortgage-
backed securities $2,966,849 $3,334,331
GVA to NPAs 71.71% 58.89%
Deposits $2,600,869 $2,697,272
Borrowings $442,700 $832,700
Stockholders' equity $229,043 $156,547
Stockholders' equity per common share $2.43 $6.03
Common shares outstanding 72,969,860 25,969,860
Full-time equivalent
employees 554 724 544 724
Headcount 654 835 636 805
Regulatory Capital Ratios:
Core capital to adjusted total assets 6.92% 4.29%
Core capital to risk-weighted assets 11.16% 7.01%
Total capital to risk-weighted assets 12.43% 8.28%
Weighted Average Yield for the Period:
Loans 7.46% 6.51% 7.12% 6.36%
Mortgage-backed securities 6.18% 5.32% 6.37% 5.37%
Investments 6.17% 5.40% 6.10% 5.09%
Combined interest-earning
assets 7.35% 6.43% 7.04% 6.27%
Weighted Average Cost for the Period:
Deposits 5.04% 4.00% 4.79% 3.64%
Borrowings 6.54% 5.70% 6.51% 5.35%
Combined interest-bearing
liabilities 5.31% 4.43% 5.15% 4.03%
Interest Rate Spread for
the Period 2.04% 2.00% 1.89% 2.24%
Net Yield on Interest-earning
Assets for the Period 2.27% 2.15% 2.05% 2.22%
Dec. 31 Sept. 30 Dec. 31
1995 1995 1994
Nonperforming Assets ("NPAs"):
Nonaccruing loans $51,910 $55,114 $71,614
Foreclosed real estate $19,520 $37,550 $14,115
Total NPAs $71,430 $92,664 $85,729
NPAs to total assets 2.16% 2.74% 2.31%
NPAs and Troubled Debt
Restructurings ("TDRs"):
NPAs $71,430 $92,664 $85,729
TDRs 25,790 47,340 52,144
Total NPAs and TDRs $97,220 $140,004 $137,873
NPAs and TDRs to total assets 2.95% 4.14% 3.72%
Classified Assets:
NPAs $71,430 $92,664 $85,729
Performing classified loans 147,647 88,337 55,807
Total classified assets $219,077 $181,001 $141,536
Classified assets to total assets 6.64% 5.35% 3.82%
Loan Delinquencies by Property Type:
Single Family:
30 to 59 days $4,283 $4,451 $4,413
60 to 89 days 924 1,720 1,016
90 days and over 7,226 8,966 7,775
$12,433 $15,137 $13,204
Multifamily (2 to 4 units):
30 to 59 days $1,748 $2,873 $4,281
60 to 89 days 282 2,609 904
90 days and over 6,671 5,414 6,590
$8,701 $10,896 $11,775
Multifamily (5 to 36 units):
30 to 59 days $5,434 $7,444 $15,438
60 to 89 days 5,801 3,746 5,247
90 days and over 14,312 15,228 23,112
$25,547 $26,418 $43,797
Multifamily (37 units and over):
30 to 59 days $304 $1,533 -
60 to 89 days - 304 2,272
90 days and over 3,190 - 7,088
$3,494 $1,837 $9,360
Commercial & Industrial:
30 to 59 days $958 $1,662 $264
60 to 89 days 213 - 1,385
90 days and over (3) 20,511 24,705 27,049
$21,682 $26,367 $28,698
Total Loan Delinquencies, net $71,857 $80,655 $106,834
As a % of Total Net Loan Portfolio 2.41% 2.66% 3.25%
(1) Excludes the impact of net Restructuring and
Recapitalization charges in 1994.
(2) The efficiency ratio is computed by dividing total
operating expense by net interest income and noninterest income,
excluding nonrecurring items, provisions for estimated loan and real
estate losses, direct costs of real estate operations and
gains/losses on sale of securities.
(3) Includes one hotel loan with a balance of $15.9 million for
all reported periods.