TARZANA, Calif. -- February 20, 1996 -- Unilab
Corporation (Nasdaq:ULAB) today announced results for the fourth
quarter and year ended December 31, 1995.
For the full year, net sales increased 25% to $189.0 million
from $151.8 million a year ago. The Company reported a net loss for
the year of $41.8 million, or $1.17 per common share, which included
previously announced charges totalling $42.6 million, or $1.19 per
share, as discussed below. This compares with 1994 net income
results of $4.5 million, or $0.12 per share which included an
acquisition related charge of $1.3 million, or $0.04 per share.
For the fourth quarter ended December 31, 1995, Unilab's
revenues rose 25% to $48.7 million from $38.9 million a year
earlier. The Company reported a net loss of $5.1 million, or $0.14
per common share, which included a previously announced $2.0
million, or $0.05 per share, charge related to the conclusion of the
Trylon arbitration. This compares with 1994 net income of $309,000,
or $0.01 per share.
As previously announced, the Company recorded $42.6 million in
charges during the year, primarily related to its efforts to focus
on and build its market presence in California. These charges
included a $36.5 million non-cash charge related to the sale of the
Company's equity investment in UGL, its European lab venture; a $1.2
million restructuring charge in the second quarter associated with
the integration of its MLN acquisition; a total of $3.2 million in
charges related to the Trylon arbitration proceedings; and a $1.7
million write-off of deferred financing fees.
Commenting on results, Andrew Baker, Chairman and Chief
Executive Officer of Unilab, said, "Although we continue to make
significant progress in building Unilab's base of business, we are
not satisfied with our operating performance. Our recent results
reflect both unusually weak seasonal volumes in the latter half of
the last quarter, as well as expense levels which have declined at a
slower pace than we had anticipated. Near term, our main objective
is to accelerate expense reduction efforts in order to become a
leader not only in market share, but more importantly, in
profitability. To this end, we are intensifying the cost reduction
initiatives begun over the past two quarters. More of our
administrative efforts are being centralized to facilitate tighter
spending control and eliminate corporate redundancy. We are also
capping our growing investment in marketing, though remain confident
that our existing sales and marketing team can continue to drive the
top line performance."
Baker continued, "During the past year, we have seen significant
improvement in Unilab's positioning within the California lab
industry, driven by our strategic initiatives to build our market
presence and reputation. We have invested in our sales and
marketing organization, which has played a key role in generating
approximately 15% growth in our core sales over the prior year.
This strong internal growth, coupled with the integration of the
recently acquired MLN operations, has widened our market share
leadership to roughly twice that of the next largest competitor in
California. We have continued to build on the significant steps
taken over the past two years to establish a strong operating
platform and to strengthen our marketing efforts. We believe that
these efforts will enable Unilab to benefit from the economies of
scale inherent in our business and will enhance the long-term value
of our unique franchise in the California lab industry in the years
to come."
Unilab Corporation is the largest provider of clinical testing
services in California through its full-service, central testing
laboratories in Los Angeles, San Jose and Sacramento and its
extensive network of patient service centers, STAT labs and couriers
throughout the state.
Unilab Corporation
Consolidated Statement of Operations
(Amounts in thousands, except per share data)
Three Months Ended Year Ended
12/31/95 12/31/94 12/31/95 12/31/94
Revenue $ 48,727 $ 38,888 $189,042
$151,820
Operating Expenses 49,658 36,899 180,103
141,401
Legal and Acquisition 2,000 --- 4,400
1,282
Related Charges
Operating Income (Loss) (2,931) 1,989 4,539
9,137
Other Income (Expenses):
Interest Expense, net (2,125) (1,482) (8,333)
(5,192)
Equity in Earnings of
Affiliate --- (198) 250
570
Loss on Sale of Equity
Investment --- --- (36,499)
---
Income (Loss) Before Income
Taxes and Extraordinary
Item (5,056) 309 (40,043)
4,515
Tax Provision
--- --- --- ---
Extraordinary Item - Writeoff
of Deferred Financing Fees --- --- 1,732
---
Net Income (Loss) (5,056) 309 (41,775)
4,515
Preferred Stock Dividends 36 36 144
144
Net Income (Loss) Available to
Common Shareholders ($5,092) $273 ($41,919)
$4,371
Net Income (Loss)
per Common Share (a) ($0.14) $0.01 ($1.17)
$0.12
Weighted Average Common
Shares Outstanding 36,124 35,412 35,918 35,069
(a) Excluding the legal and acquisition related charges, the
extraordinary item and the loss recorded from the sale of the
Company's equity investment, net income (loss) per common share
would
have been ($0.09), $0.01, $0.02 and $0.16 per share respectively.
Unilab Corporation
Consolidated Balance Sheet
(Amounts in thousands)
12/31/95 12/31/94
Accounts Receivable, net $ 40,334 $ 27,348
Amounts Due from UGL/UniHolding 15,000 ---
Other Current Assets 4,250 5,292
Total Current Assets 59,584 32,640
Fixed Assets, net 18,326 12,450
Goodwill and Other
Intangible Assets 113,019 82,736
Investment in Equity Affiliate --- 65,049
Other Assets 5,245 3,532
Total Assets $196,174 $196,407
Total Current Liabilities $49,273 $31,686
Long-term Debt,
net of current portion 87,207 67,660
Other Liabilities 3,364 1,727
Total Shareholder's Equity 56,330 95,334
Total Liabilities and
Shareholders' Equity $196,174 $196,407
CONTACT: Unilab Corporation
Richard A. Michaelson
Senior Vice President, Finance
(201) 525-1000
or
Morgen-Walke Associates
Betsy Brod/Alex Gleeson
(212) 850-5600
BOCA RATON, Fla., Feb. 20, 1996 - Model Imperial, Inc.
(Nasdaq: MODL) today announced that its bank lenders had informed
the Company, following meetings to address the Company's continuing
financing requirements, that, given the present circumstances, they
would not advance additional funds to the Company under existing
loan and security agreements. In addition, the banks have advised
the Company to immediately explore other alternatives, including
replacement financing, a sale or merger of the Company or protection
under Chapter 11 of the Bankruptcy Code. The Company had previously
announced an anticipated loss of between $7.5 and $8.5 million for
the year ended December 31, 1995, and that it was not in technical
compliance with a number of loan covenants contained in its loan
agreements with such bank lenders. The Company has commenced
discussions with additional lenders in an effort to secure
replacement financing in the near future, if available at all. As
of the date hereof, the Company owes approximately $50 million to
its bank lenders under its existing loan agreements.
Model Imperial, Inc. is one of the largest wholesale
distributors of brand-name fragrances in the United States. The
Company primarily distributes prestige fragrances, but also offers
mass market fragrances and certain cosmetic and beauty care
products, for men and women. The Company is also one of the largest
operators of licensed retail departments in the country with over
650 retail locations throughout the U.S. The Company's principal
customers include many of the nation's leading mass merchants,
discount retailers and drug store and supermarket chains, as well as
numerous independent pharmacies and other specialty retailers.
Model Imperial's fragrance and cosmetic distribution product line
comprises approximately 4,000 individual brand-name items.
CONTACT: Stephen J. Kesh, Chief Financial Officer of Model
Imperial, 407-241-8244; or IR Contact: Lynn Morgen or Howard Zar,
or Press: Leslie Feldman of Morgen-Walke Associates, 212-850-5600
CHARLOTTE, N.C., Feb. 20, 1996 - Lance, Inc. (Nasdaq-NNM:
LNCE) today announced fourth-quarter and year-end results that
included lower sales and a net loss.
The company's restructuring plan, announced in December, is
progressing on schedule, including the closing of one manufacturing
plant and a reduction of operations at a second facility.
Pretax write-downs and expense provisions related to the
restructuring totaled $43.0 million in the fourth quarter, which
ended Dec. 30, 1995, resulting in a net loss for the quarter of
$21.9 million. Lance earned a net income of $7.3 million in the
fourth quarter of 1994. The net loss for the quarter was 72 cents
per share versus a net income per share of 24 cents in the same
quarter last year. Fourth-quarter 1995 net sales and other
operating revenues were $143.3 million compared with $154.7 million
in the final quarter of 1994.
For the year, net sales and other operating revenues were $477.5
million compared with $488.0 million in 1994. The net loss for the
year was $6.9 million, or 23 cents per share, compared with net
income of $27.0 million, or 88 cents per share, last year.
"Sales were reduced in the fourth quarter mainly as a result of
the elimination of certain territories and product lines that were
unprofitable," said Paul A. Stroup III, president and chief
executive officer. "There were also fewer year-end sales promotions
than in 1994. In addition, the fourth quarter and fiscal year were
shorter by one week versus the comparable periods of 1994,
accounting for approximately $5 million in lower sales.
"These results are in line with our expectations, given the
restructuring that is underway and the extremely challenging sales
environment in the snack-food industry during 1995," said Stroup.
As a first step in the company's restructuring plan, Lance has
closed its manufacturing plant in Columbia, S.C., and eliminated
manufacturing operations at its facility in Greenville, Texas. The
closures are part of a downsizing that is expected to generate
annualized pretax savings of approximately $10 million.
"We have done what we said we would do and we are progressing
with our plan for the company's future," said Stroup. "We expect
sales to decline further in 1996 as we continue to focus on
strengthening our core snack-food franchise and returning the
company to profitability. We expect to begin to reap the benefits of
the restructuring by the fourth quarter of this year and into 1997."
Stroup said that Lance will become more customer-focused in
1996, investing more resources into database research, sales and
marketing. It is also reviewing its sales and distribution channels.
Lance, Inc., is engaged in the manufacturing and sale of snack
foods throughout most of the United States.
LANCE, INC.
CONSOLIDATED INCOME STATEMENT
For the Quarter Ended
December 30, December 31, Percent of
1995 1994 Change
Net Sales & Operating Revenue $143,328,500 $154,664,488 -7%
Income (Loss) Before Income
Taxes (34,731,586) 12,342,730
Net Income (Loss) (21,908,588) 7,314,109 -400
Earnings (Loss) Per Share (0.72) 0.24
Average Number of Common
Shares Outstanding 30,342,979 30,534,077
For the Year Ended
December 30, December 31, Percent of
1995 1994 Change
Net Sales & Operating Revenue $477,467,968 $487,981,812 -2%
Income (Loss) Before Income
Taxes (10,100,059) 44,327,988
Net Income (Loss) (6,939,221) 26,983,619 -126
Earnings (Loss) Per Share (0.23) 0.88
Average Number of Common
Shares Outstanding 30,399,534 30,774,472