LOS ANGELES, Feb. 28, 1996 - Jalate, Ltd. (AMEX: JLT)
today reported results for the year and fourth quarter ended
December 31, 1995.
For 1995, net sales rose 11 percent to a record $70.8 million
from $63.9 million a year ago. Jalate reported a net loss for the
year of $2.9 million, equal to $.85 per share, compared with net
earnings of $1.7 million, or $.53 per share, after a pro forma
income tax adjustment in 1994.
For the fourth quarter, Jalate reported net sales rose to $15.7
million from $12.9 million a year ago. The company reported a net
loss of $2.9 million, or $.85 per share, compared with a net loss of
$286,000, or $.08 per share, last year.
Vinton W. Bacon, who joined Jalate as chief executive officer in
December 1995, attributed the loss primarily to mark downs
associated with weak economic conditions throughout the company's
sector of the apparel industry, including an increase in the number
of garments sold below cost, and to higher operating expenses and
interest costs. He said the sales increase reflected the success of
greater marketing and promotional concentration on the company's
core product lines and, to a lesser extent, to increased volume from
discount chains and department stores.
"We have launched a corporate restructuring that is enabling
Jalate to more closely focus on those key product lines where we
have a history of success," said Bacon. "We will continue to build
upon Jalate's strengths, continuing to refine our focus on the
junior knit sportswear, dresses and private label businesses. These
are the areas in which Jalate has a proven track record.
"During the fourth quarter, we continued to make meaningful
reductions in operating expenses, while strengthening our management
team with the addition of experienced executives in such key
positions as manufacturing, management information systems and
distribution. We are confident these measures will provide tangible
results as 1996 unfolds," added Bacon.
Jalate, Ltd., designs, develops and markets junior knit
sportswear and dresses at moderate prices, for the fashion-conscious
young woman who desires to continually update her wardrobe. Jalate
develops basic styles that are fashionable and easy to produce,
enabling the company to respond more quickly to fashion trends,
reduce delivery time to the retailer and facilitate a consistently
high-quality product. The company's products are found in more than
10,000 stores across the nation, representing approximately 650
accounts, including JC Penney, Sears, Montgomery Ward, Miller's
Outpost, Wet Seal, The Federated Department Stores, The May
Companies and Mervyn's.
JALATE, LTD.
Statements of Operations
(Unaudited)
Year Ended Fourth Quarter Ended
December 31, December 31,
1995 1994 1995 1994
Gross sales $78,539,000 $68,753,000 $18,196,000
$14,222,000
Returns, allowances
and discounts 7,739,000 4,866,000 2,521,000 1,366,000
Net sales 70,800,000 63,887,000 15,675,000
12,856,000
Cost of
goods sold 56,211,000 46,872,000 14,518,000 9,640,000
Gross profit 14,589,000 17,015,000 1,157,000
3,216,000
Operating
expenses 16,977,000 14,071,000 4,191,000 3,588,000
Earnings (loss)
from operations (2,388,000) 2,944,000 (3,034,000) (372,000)
Other (income) expense:
Factoring interest 891,000 355,000 218,000 113,000
Equity in earnings
of joint venture (75,000) -- (70,000) --
Other interest 5,000 4,000 3,000 4,000
Total other expense 821,000 359,000 151,000
117,000
Earnings (loss) before
income taxes (3,209,000) 2,585,000 (3,185,000) (489,000)
Income tax expense
(benefit) (313,000) 720,000 (303,000) (203,000)
Net earning (loss)(2,896,000) 1,865,000 (2,882,000)
(286,000)
Pro forma income
tax adjustment -- 192,000 -- --
Net earnings (loss)
after pro forma income
tax adjustment $(2,896,000) $1,673,000 $(2,882,000) $ (286,000)
Net earnings (loss)
per share after
pro forma income
tax adjustment $(.85) $.53 $(0.85) $(0.08)
Weighted average number
of common and common
equivalent shares
outstanding during
the period 3,390,000 3,149,000 3,391,000 3,378,000
DENVER -- Feb. 28, 1996 -- VIP Global Capital Inc.
(NASDAQ:VIPG) announced that one of its subsidiaries, href="chap11.print.html">PrintCrafters
Inc. ("PrintCrafters"), filed today for protection under
Chapter 11
of the United States Bankruptcy Code.
The Chapter 11 filing relates only to PrintCrafters and its two
operating divisions, Renaissance Publishing Inc. and Media
Communications Inc., and does not affect the company or any of its
other operating subsidiaries and divisions.
Tim Vasko, the company's chief executive officer, stated that
the purpose of the Chapter 11 filing for PrintCrafters was to
finalize debt restructuring which began with the company's
acquisition of PrintCrafters in June 1993.
The company is hopeful that PrintCrafters' Chapter 11 filing
will allow it to resolve its remaining debt issues and continue as
an operating subsidiary of the company.
CONTACT: VIP Global Capital Inc., Denver,
Michael J. Schuchard, 303/371-8400
BETHESDA, Md., Feb. 28, 1996 - Host Marriott Services
Corporation (NYSE: HMS) today reported 1995 pro forma Earnings
Before Interest Expense, Taxes, Depreciation, Amortization and other
non-cash items (EBITDA) of $105 million, a $600 thousand increase
over 1994. The pro forma amounts assume that the company operated
on a separate basis, independent of Host Marriott Corporation during
1995 and 1994, since Host Marriott Services was part of Host
Marriott Corporation prior to its spin-off in December 1995. EBITDA
for the fourth quarter on a pro forma basis was $26 million in 1995,
a 12 percent increase over 1994.
The company achieved its tenth consecutive year of revenue
growth in 1995, reporting pro forma revenues of $1.16 billion, an
increase of $40 million, or 4 percent over 1994. Revenues for the
fourth quarter increased 7 percent to $359 million in 1995 from pro
forma revenues of $334 million in 1994. Revenue growth in 1995
primarily reflects the company's unit growth in airport concessions,
both domestically and internationally, and traffic growth at its
airport and tollroad venues.
William W. McCarten, President and Chief Executive Officer,
noted, "1995 was a year of tremendous accomplishments for Host
Marriott Services - we established our capital structure by issuing
$400 million in public debt in May 1995 and we successfully
completed the spin-off of Host Marriott Services from Host Marriott
Corporation on December 29, 1995. We significantly expanded our
presence internationally with the addition of a new contract at
Amsterdam Airport Schiphol in The Netherlands. Domestically, we had
significant contract wins in Los Angeles and Atlanta and we were
successful in securing our first food court shopping mall contract
at the largest mall being built in 1996. We posted strong EBITDA of
$105 million in 1995 and we believe that we have laid the foundation
for significant improvement in earnings and cash flow in 1996."
On a pro forma basis, Host Marriott Services' operating profit
before corporate expenses and interest was $27 million in 1995
compared to $79 million in 1994. The company sustained an operating
loss before corporate expenses and interest for the fourth quarter
on a pro forma basis of $42 million in 1995 compared to an operating
profit of $20 million in 1994. Excluding the non-comparable effects
of unusual items in 1995 and 1994, operating profit before corporate
expenses and interest for the full year was $88 million in 1995
compared to $87 million in 1994, and for the fourth quarter was $19
million in 1995 compared to $20 million in 1994. Unusual items for
1995 included a $47 million write-down of long-lived assets
(reflecting the adoption of a new accounting standard) and $15
million of restructuring charges related to initiatives to improve
future operating results. The 1994 unusual items included a $12
million contract write-off, partially offset by a $4 million one-
time insurance reserve adjustment.
The 1995 pro forma results were also affected by the company's
establishment of a valuation allowance to reduce its net deferred
tax asset by $25 million. The provision for the valuation allowance
offset the tax benefit of the 1995 loss included in 1995 earnings.
Host Marriott Services' pro forma net loss for 1995 (reflecting
the unusual items discussed above) was $63 million ($2.01 per share)
compared to a pro forma net loss of $6 million ($0.20 per share) in
1994. Mr. McCarten stated, "Our pro forma net loss in 1995 was
driven entirely by a number of unusual items, however, the year
reflected positive growth in operating results and we expect those
trends to continue in 1996."
Host Marriott Services also reported 1995 pro forma results for
its wholly owned subsidiary Host International, Inc. (formerly Host
Marriott Travel Plazas, Inc.). Host International posted pro forma
1995 EBITDA of $99 million compared with pro forma EBITDA of $98
million in 1994. Revenues increased on a pro forma basis by $33
million in 1995, or 3 percent over 1994. Host International's
operating profit before corporate expenses and interest was $53
million in 1995 on a pro forma basis compared to $80 million in
1994. Excluding the non-comparable effects of unusual items in 1995
and 1994, operating profit before corporate expenses and interest
was $89 million in 1995 compared to $89 million in 1994. Results
for 1995 were impacted by a $22 million write-down of long-lived
assets (reflecting the adoption of a new accounting standard) and
$15 million of restructuring charges. The 1994 operating profit
reflects a $12 million contract write-off, partially offset by a $3
million one-time insurance reserve adjustment. Host International's
pro forma net loss for 1995 after the unusual items was $37 million
compared to $6 million in 1994.
The pro forma information discussed above and as set forth in
the following tables was derived from the company's historical
operating results which are not materially different from the pro
forma results.
Host Marriott Services Corporation is the nation's leading
provider of food, beverage and retail concessions with facilities at
over 70 domestic and international airports, on 13 tollroads and
highways and at sports and entertainment venues nationwide. The
company is traded on the NYSE under the symbol HMS. Host Marriott
Services serves millions of customers annually.
HOST MARRIOTT SERVICES CORPORATION
CONSOLIDATED OPERATING RESULTS
Pro Forma Basis
Fourth Quarter Fiscal Year
1995 1994 1995 1994
($ in millions, except per share and ratio data)
REVENUES
Airport concessions $256.2 $230.8 $796.3 $741.5
Tollroad concessions 86.6 85.9 309.9 304.0
Sports and entertainment
concessions 15.8 17.4 52.5 73.0
Total Revenues $358.6 $334.1 $1,158.7 $1,118.5
OPERATING PROFIT
Airport concessions $16.1 $17.3 $65.2 $63.1
Tollroad concessions 2.2 1.5 19.6 18.7
Sports and entertainment
concessions 0.5 0.8 3.3 5.0
Write-downs of long-lived
assets (46.8) -- (46.8) --
Restructuring and other
special charges (14.5) -- (14.5) (7.6)
OPERATING PROFIT, before
corporate expenses and interest (42.5) 19.6 26.8 79.2
Corporate expenses (14.5) (15.8) (48.0) (48.2)
Interest expense, net (12.2) 12.0 (38.4) (39.1)
LOSS BEFORE INCOME TAXES AND
EXTRAORDINARY ITEM (69.2) (8.2) (59.6) (8.1)
(Provision) benefit
for income taxes 1.4 2.5 (3.9) 1.7
LOSS BEFORE EXTRAORDINARY ITEM ($67.8) ($5.7) ($63.5) ($6.4)
LOSS PER COMMON SHARE:
Loss before extraordinary item ($2.13) ($0.18) ($2.01) ($0.20)
Weighted average shares
outstanding 31.9 30.7 31.7 30.3
EBITDA $26.5 $23.7 $105.4 $104.8
RATIO DATA
EBITDA to revenues 7.4% 7.1% 9.1% 9.4%
EBITDA to cash interest expense 2.2 2.0 2.7 2.7
Corporate expenses to revenues 4.0% 4.7% 4.1% 4.3%
HOST INTERNATIONAL, INC.
CONSOLIDATED OPERATING RESULTS
Pro Forma Basis
Fiscal Year
1995 1994
($ in millions, except ratio data)
REVENUES
Airport concessions $796.3 $741.5
Tollroad concessions 165.9 168.1
Sports and entertainment
concessions 51.3 71.0
Management fees 14.3 14.5
Total Revenues $1,027.8 $995.1
OPERATING PROFIT
Airport concessions $65.2 $63.1
Tollroad concessions 7.7 8.7
Sports and entertainment
concessions 2.1 3.0
Management fees 14.3 14.5
Write-downs of long-lived
assets (22.0) --
Restructuring and other
special charges (14.5) (9.0)
OPERATING PROFIT, before
corporate expenses and interest 52.8 80.3
Corporate expenses (48.0) (48.2)
Interest expense, net (38.4) (39.1)
LOSS BEFORE INCOME TAXES AND
EXTRAORDINARY ITEM (33.6) (7.0)
(Provision) benefit for
income taxes (3.9) 1.3
LOSS BEFORE EXTRAORDINARY ITEM ($37.5) ($5.7)
EBITDA $99.0 $98.2
RATIO DATA
EBITDA to revenues 9.6% 9.9%
EBITDA to cash interest expense 2.5 2.6
Corporate expenses to revenues 4.7% 4.8%
LINWOOD, Pa. -- Feb. 28, 1996 -- Foamex International Inc.
(NASDAQ: FMXI) today announced results for the fourth quarter and
year-ended December 31, 1995.
The Company's results include one-time pre-tax charges totaling
approximately $62.7 million ($52.3 million after-tax, or $1.98 per
share for 1995) in the fourth quarter, primarily for the operational
plan announced in November 1995.
For the fourth quarter, net sales were $309.2 million, as
compared to $321.3 million in the fourth quarter of 1994, a 3.8%
decrease. The Company reported a net loss of $62.5 million,
including the one-time pre-tax charges, versus net income in the
fourth quarter of 1994 of $6.4 million. Excluding the one-time
charges, Foamex reported a net loss for the fourth quarter of $10.2
million.
The loss per share was $2.40 for the fourth quarter versus
earnings of $0.24 per share for the comparable 1994 period. The
loss per share for the quarter, excluding the one-time charges, was
$0.39.
In addition to the one-time charges, the Company cited several
reasons for the loss in the fourth quarter, including: raw material
cost pressures; continued delays in the introductions of new
automotive platforms; and weak demand for carpet cushion, resulting
from weak retail demand for carpet. Foamex added that the Company
faced a price increase for TDI, a principal raw material, effective
October 1, 1995.
The one-time pre-tax charges taken in the fourth quarter consist
of: (i) Restructuring and other related charges of $44.4 million
associated principally with the plan to improve the Company's core
foam operations, including the announced closure of 13 foam
production, fabrication and branch facilities. The cash portion of
the restructuring charge is approximately $15.0 million.
(ii) Other write-offs of approximately $18.3 million, primarily
related to refocusing the Company's core foam operations, including:
(a) customer credits and price rollbacks resulting from customer
deductions and pricing disputes related to the Company's attempt to
pass-through certain raw materials price increases; (b) inventory
write-downs; and (c) employee benefit accruals.
The operational plan and other actions are expected to result in
estimated annualized savings in excess of $50 million, with expected
savings in 1996 in excess of $30 million.
For the year ended December 31, 1995, net sales rose to $1.269
billion, as compared to $1.088 billion in 1994, a 16.6% increase,
primarily the result of the June 1994 acquisition of JPS Automotive.
The Company reported a net loss for the year of $53.1 million,
including the one-time pre-tax charges, versus net income in 1994 of
$26.1 million. Excluding the one-time charges, Foamex reported a
net loss for 1995 of $0.8 million.
The loss per share was $2.01 for 1995 versus earnings of $0.98
per share for 1994. Excluding the one-time charges, the loss per
share for the year was $0.03.
The Company added that pressure on margins during the year,
primarily from raw material costs, negatively affected operating
earnings for 1995 by approximately $25.0 million.
Interest and debt issuance expense for the year was $81.5
million, compared to $61.6 million for 1994. The increase results
primarily from financing costs associated with JPS Automotive.
Foamex also said today that the plan announced in November 1995
and other actions to improve its core operations, which are expected
to result in estimated annualized savings in excess of $50 million,
with expected savings in 1996 in excess of $30 million, are
proceeding on schedule.
Marshall S. Cogan, Foamex's Chairman and Chief Executive
Officer, said, "We are well into implementing the initiatives
announced last quarter to improve the profitability of our foam
operations, improve manufacturing processes and reduce expenses."
He noted that, under the direction of Sam Bonanno, Executive
Vice President of Manufacturing, Foamex has closed four foam,
fabrication and branch locations and initiated the closure of nine
others, realigned the management structure of the foam operations
and created an Office of Quality and Productivity to oversee the
implementation of a continuous improvement program and related
employee training.
Mr. Cogan added that the Company has also completed the closure
of two of its Perfect Fit Industries facilities in Rock Hill, South
Carolina and Sparks, Nevada.
Mr. Cogan said, "We expect these steps to lower our cost
structure and believe that their impact, coupled with stronger
consumer demand for home-related products and continued interest in
Foamex's technical products, will favorably effect 1996
performance." He noted that, based on the current pace of business
and the Company's outlook for sales and profitability for the first
quarter 1996, Foamex expects earnings per share for the quarter will
be in the mid-twenty cent range.
The Company added, however, that certain events could have a
negative impact on first quarter 1996 earnings, including further
raw materials price increases or a sharp decline in automotive
production.
Mr. Cogan also reiterated that the Company is continuing to
pursue the sale of its JPS Automotive businesses and Perfect Fit
Industries in order to achieve its goal to reduce debt to
approximately $400 million by the end of 1996. He said that the
Company is no longer considering a sale to the public of a minority
interest in its technical foams business.
Separately, Foamex announced today the election of two new
Directors: Salvatore J. (Sam) Bonanno, Foamex's Executive Vice
President of Manufacturing and President of Foamex, L.P.; and Mr.
Andrea Farace, President of Trace International Holdings, Inc.
The Company also said that it had repurchased 981,700 shares of
its common stock under the terms of two 1995 share repurchase
programs authorizing repurchase of up to two million shares. It
added that its Board had approved a third program to repurchase up
to an additional one million shares. The Company may repurchase
common stock from time to time, depending on market conditions.
Together, the approximately 2.0 million remaining shares authorized
to be repurchased under the three programs represents up to
approximately eight percent of Foamex's total outstanding shares of
25,786,260 as of December 31, 1995.
Foamex is the largest manufacturer and marketer of flexible
polyurethane foam and foam products in North America. Foamex's
quality foams are utilized primarily in four end-markets: carpet
cushion and other carpet products; cushioning foams for furniture,
bedding, packaging and health care; automotive trim and accessories;
and industrial and consumer technical foams, including those for
filtration. The Company also supplies the most complete line of
automotive textile products through its JPS Automotive L.P.
subsidiary, and through its Perfect Fit Industries subsidiary is a
leading domestic manufacturer and marketer of home comfort and
furnishings products such as mattress pads, bed pillows, decorative
bedding and draperies.
Foamex International Inc. and Subsidiaries
Consolidated Statement of Operations
($ Thousands, except per share data)
4th Quarter Comparative Fiscal Year Comparative
1995 1994(a) 1995 1994(a)
Net Sales $309,155 $ 321,273 $1,268,560
$1,087,834
Cost of Goods
Sold 290,557 264,154 1,098,401
894,962
Gross Profit 18,598 57,119 170,159
192,872
Selling, General
& Administrative
Expenses 34,114 25,810 108,338
88,696
Restructuring and
Other Charges 44,393 -- 44,393 --
Income (Loss) from
Operations (59,909) 31,309 17,428
104,176
Interest and Debt
Issuance Expense 20,259 19,618 81,453
61,594
Other Income, Net (564) 342 348
1,020
Income (Loss)
Before Provision
(Benefit) for
Income Taxes (80,732) 12,033 (63,677)
43,602
Provision (Benefit)
for Income Taxes (18,203) 5,598 (10,557)
17,472
Net Income (Loss) (62,529) 6,435 (53,120)
26,130
Earnings (Loss)
Per Share $(2.40) $0.24 $(2.01)
$0.98
________________________________________________________________________
EBDAIT (b) 11,899 40,252 117,939
134,861
(a) Includes the post-acquisition results of JPS Automotive, which
was acquired in June 1994.
(b) EBDAIT consists of earnings before depreciation, amortization,
interest, income taxes, minority interest and other non-cash or
non-recurring expenses. EBDAIT is not intended to represent cash
flow for the period. EBDAIT for the quarter and fiscal year 1995
includes $44.4 million of restructuring and other related charges
and $18.3 million of other write-offs.
Foamex International Inc. and Subsidiaries
Selective Comparative Financial Data
($ Thousands)
4th Quarter Comparative Fiscal Year Comparative
Actual Actual Actual Actual Pro Forma(a)
1995 1994 1995 1994 1994
Net Sales $309,155 $321,273 $1,268,560 $1,087,834
$1,264,090
Income (Loss)
from Operations(59,909) 31,309 17,428 104,176
117,808
% of Sales --- 9.7% 1.4% 9.6%
9.3%
EBDAIT (b) 11,899 40,252 117,939 134,861
155,046
% of Sales 3.8% 12.5% 9.3% 12.4%
12.3%
(a) Pro forma financial data has been prepared to reflect the JPS
Automotive acquisition and other 1994 transactions as if they had
occurred at the beginning of the 1994 fiscal year. The pro forma
financial information above is not necessarily indicative of the
Company's results of operations that would have occurred had the
acquisition been completed at the beginning of the periods
indicated, nor is it necessarily indicative of future results of
operations. EBDAIT consists of earnings before depreciation,
amortization, interest, income taxes, minority interest and other
non-cash or non-recurring expenses.
(b) EBDAIT is not intended to represent cash flow for the period.
EBDAIT for the quarter and fiscal year 1995 includes $44.4 million
of restructuring and other related charges and $18.3 million of
other write-offs.
Foamex Intenational Inc. and Subsidiaries
Net Sales by Product Category
($ Million)
4th Quarter Comparative Fiscal Year Comparative
Actual Actual Actual Actual Pro Forma(a)
1995 1994 1995 1994 1994
Carpet Cushion Foams $ 63.5 $ 72.1 $ 271.0 $ 292.5 $
292.5
Cushioning Foams 74.1 70.5 305.7 286.5
287.1
Automotive Foams 57.2 58.0 219.2 198.1
198.6
Automotive Carpet,
Trim and Textiles 74.9 80.8 312.1 161.2
336.4
Technical Foams 14.1 13.4 62.0 54.1
54.1
Home Comfort Products 25.4 26.5 98.5 95.4
95.4
Total $309.2 $321.3 $1,268.5 $1,087.8
$1,264.1
(a) Pro forma financial data has been prepared to reflect the JPS
Automotive acquisition and other 1994 transactions as if they had
occurred at the beginning of the 1994 fiscal year. The pro forma
financial information above is not necessarily indicative of the
Company's results of operations that would have occurred had the
acquisition been completed at the beginning of the periods indicated,
nor is it necessarily indicative of future results of operations.
Foamex L.P.
Selective Comparative Financial Data
($ Thousands)
4th Quarter Comparative Fiscal Year Comparative
Actual Actual Actual Actual
1995 1994 1995 1994
Net Sales $231,540 $238,297 $946,243 $921,498
Income (Loss)
from Operations (62,311) 22,676 (4,869) 89,513
% of Sales 9.5% 9.7%
EBDAIT (a) 4,400 28,343 80,797 113,660
% of Sales 1.9% 11.9% 8.5% 12.3%
(a) EBDAIT consists of earnings before depreciation, amortization,
interest, income taxes, minority interest and other non-cash
or non-recurring expenses. EBDAIT is not intended to represent
cash flow for the period. EBDAIT for the quarter and fiscal
year 1995 includes $42.0 million of restructuring and other
related charges and $18.3 million of other write-offs.
JPS Automotive L.P.
Selective Comparative Financial Data
($ Thousands)
4th Quarter Comparative Fiscal Year Comparative
Actual Actual Actual Pro Forma(a)
1995 1994 1995 1994
Net Sales $74,864 $80,782 $312,096 $336,398
Income from
Operations 5,342 9,774 31,068 33,714
% of Sales 7.1% 12.1% 10.0% 10.0%
EBDAIT (b) 8,408 12,467 43,804 45,866
% of Sales 11.2% 15.4% 14.0% 13.6%
(i) Pro forma financial information has been prepared to reflect
the acquisition of JPS Automotive as if it had occurred at the
beginning of the 1994 fiscal year. The pro forma financial
information is not necessarily indicative of JPS Automotive's results
of operations that would have occurred had the acquisition been
completed at the beginning of the period indicated, nor is it
necessarily indicative of future results of operations.
(ii) EBDAIT consists of earnings before depreciation, amortization,
interest, income taxes, minority interest and other non-cash
or non-recurring expenses. EBDAIT is not intended to represent
cash flow for the period.
CONTACT: Kenneth R. Fuette Trina Hardiman
David E. Bright McDonough & Associates
Foamex InternationaL 212/334-0033
212/230-0488
TUSTIN, Calif. -- Feb. 28, 1996 -- The Cerplex
Group, Inc. (Nasdaq:CPLX) today announced its financial results for
the fourth quarter and year ended December 31, 1995.
Net sales from continuing operations for the fourth quarter and
year ended December 31, 1995 were $42.5 million and $144.3 million,
respectively, compared to $33.2 million and $94.0 million in the
comparable periods of the prior year.
For the quarter ended December 31, 1995, Cerplex reported a net
loss from continuing operations of $13.6 million, or $1.03 per
share, compared to net income of $1.6 million, or $.11 per share, in
the quarter ended December 31, 1994. The net loss from discontinued
operations for the fourth quarter ended December 31, 1995 was $1.9
million, or $.15 per share, compared to a net loss from discontinued
operations of $4.1 million, or $.29 per share, in the quarter ended
December 31, 1994.
The net loss from continuing operations for the fourth quarter
included $4.2 million in pre-tax reserves and write-off's related to
three customers of the Company, including href="chap11.spectra.html">SpectraVision which is
operating under protection of Chapter 11 of the Bankruptcy Code. In
addition, the fourth quarter operating results included losses
related to certain of the Company's domestic operations where
declining sales volumes and inventory adjustments have adversely
affected operating results.
For the year ended December 31, 1995, Cerplex reported a net
loss from continuing operations of $22.0 million, or $1.68 per
share, compared to net income of $1.2 million, or $.09 per share,
for the year ended December 31, 1994. The net loss from
discontinued operations for the year ended December 31, 1995 was
$17.3 million, or $1.33 per share, compared to net income from
discontinued operations of $1.5 million, or $.11 per share, for the
year ended December 31, 1994. During the year ended December 31,
1994, Cerplex also reported an extraordinary loss of $2.0 million,
or $.15 per share related to early extinguishment of debt.
The net loss for the year ended December 31, 1995, including
discontinued operations and extraordinary items, was $39.4 million,
or $3.01 per share, compared to net income of $.7 million, or $.05
per share in the prior year. The financial results during 1995
included the Company's third quarter decision to discontinue its end-
of-life programs, a segment of the Company's business. The net loss
during 1995 related to end-of-life programs was $17.3 million, which
included an additional $1.9 million during the fourth quarter from
revision of its estimated loss during the phase-out period. Net
losses during 1995 also included $10.4 million in pre-tax reserves
and write-off's related to three customers of the Company, including
SpectraVision which is operating under protection of Chapter 11 of
the Bankruptcy Code.
As a result of the losses incurred during the fourth quarter of
1995, Cerplex announced that it was in violation of certain
financial covenants under its senior credit agreement and
subordinated note agreement, which constitutes an event of default
under such agreements. Cerplex is currently negotiating amendments
to these agreements.
The Cerplex Group is a leading independent provider of
electronic parts repair and logistics services worldwide. The
Company has developed extensive capabilities in the repair,
refurbishment, upgrade, testing, training and support of a wide
range of electronic equipment for computer and peripheral,
telecommunications and office automation markets. Cerplex key
service offerings are depot repair, logistic services, technical
help desk, training, remanufacturing and remarketing, and spare
parts services.
THE CERPLEX GROUP, INC.
and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended Years Ended
December 31 December 31
1995 1994 1995 1994
Net sales $ 42,458 $ 33,196 $ 144,328 $ 94,006
Cost of sales 40,766 25,862 127,817 76,967
Gross profit 1,692 7,334 16,511 17,039
Selling, general and
administrative expenses 11,480 4,784 33,819 11,850
Operating income
(loss) (9,788) 2,550 (17,308) 5,189
Equity in earnings from
joint venture 919 666 2,425 666
Interest expense 1,335 879 5,075 4,118
Income (loss) from
continuing operations
before taxes (10,204) 2,337 (19,958) 1,737
Income taxes 3,370 764 2,089 542
Income (loss) from
continuing operations before
extraordinary item (13,574) 1,574 (22,047) 1,195
Discontinued operations,
net of income taxes:
Income (loss) from
operations (4,133) (1,966) 1,500
Estimated loss from
liquidation of
discontinued operations (1,935) (15,381)
Income (loss) from
discontinued operations (1,935) (4,133) (17,347) 1,500
Income (loss) before
extraordinary item (15,509) (2,559) (39,394) 2,695
Extraordinary item, net of
taxes of $1,457 (2,011)
Net income (loss) $(15,509) $ (2,559) $(39,394) $684
Net income (loss) per share:
Continuing operations $ (1.03) $ 0.11 $ (1.68) $ 0.09
Discontinued operations (0.15) (0.29) (1.33) 0.11
Extraordinary item (0.15)
Net income (loss)
per share $ (1.18) $ (0.18) $ (3.01) $ 0.05
Weighted average common and
common equivalent shares
outstanding 13,121 14,446 13,091 13,446
CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31 December 31
1995 1994
ASSETS
Current Assets:
Cash and cash equivalents $ 3,807 $ 9,442
Accounts receivable, net 30,102 30,433
Inventories 27,789 28,550
Net assets of discontinued operations 2,597
Prepaid expenses and other 2,267 6,845
Total current assets 66,562 75,270
Inventories 7,437
Property, plant and equipment, net 17,988 16,296
Investment in joint venture 7,723 5,191
Goodwill 6,647 3,620
Other long-term assets 2,973 12,893
Total assets $101,893 $120,707
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 17,024 $ 7,711
Accrued liabilities 13,622 11,252
Current portion of long-term debt 536 674
Income taxes payable 2,161 865
Total current liabilities 33,343 20,502
Long-term debt, less current portion 68,382 58,920
Long-term obligations, less current portion 1,800
Stockholders' Equity:
Common stock 13 13
Additional paid-in capital 47,528 47,483
Notes receivable from stockholders (226) (299)
Unearned compensation (143) (214)
Accumulated deficit (47,026) (7,632)
Cumulative translation adjustment 22 134
Total stockholders' equity 168 39,485
Total liabilities and stockholders'
equity $101,893 $120,707
CONTACT: The Cerplex Group Inc.
Bruce D. Nye
Vice President and Chief Financial Officer
(714) 258-5600