NEW YORK -- March 5, 1996 -- AUTOTOTE CORPORATION
[NASDAQ/NMS:TOTE] today announced financial results for its first
fiscal quarter ended January 31, 1996.
Revenues increased 39.2%, from $31.1 million in 1995 to $43.3
million in 1996. EBITDA (earnings before interest, taxes,
depreciation and amortization) increased 46.6%, from $5.2 million in
1995 to $7.6 million in 1996. The net loss for the quarter was $7.0
million, or $0.23 per share on 30.9 million shares outstanding, vs.
a loss of $5.9 million, or $0.21 per share on 28.8 million shares
outstanding, a year ago. The increase is primarily attributable to
higher interest expense and foreign income taxes. Despite a $1.7
million increase in depreciation and amortization, the operating
loss for the quarter improved to $1.8 million from $2.5 million a
year ago.
A. Lorne Weil, Chairman and Chief Executive Officer, said, We
made good progress in what is traditionally our seasonally weakest
quarter. Revenues from equipment sales showed a very sharp year-to-
year increase, suggesting that this volatile segment of our business
is rebounding strongly after a long period of uncertainty. Though
impacted by severe winter weather conditions that included snow
storms on the East Coast and rain and flooding on the West Coast and
in West Virginia, service revenues from our core North American
businesses also improved. Reflecting the delivery of systems by our
Tele Control lottery unit, equipment gross margins strengthened to
36.7% in the first quarter of 1996 from 30.1% in the comparable
period of 1995; service gross margins decreased to 36.3% from 41.6%
in the same periods. All in all, we are pleased with the results in
the first quarter and optimistic about the outlook for continued
improvement in revenues and EBITDA in fiscal 1996."
The strong gain in revenues in the first quarter reflected an
$11.6 million increase in equipment sales, to $13.7 million from
$2.1 million a year ago, including the delivery of Tele Control
systems to key German lottery customers.
Reflecting the change in Tele Control's revenue mix from
primarily service to primarily sales as a result of those
deliveries, service revenues for the Company as a whole rose only
2%, to $29.6 million. Service revenues for the core North American
pari-mutuel, simulcasting and Connecticut off-track betting (OTB)
businesses increased by 8.6%, to $22.8 million, despite the impact
of the severe winter weather.
The gain in service revenues in the core businesses came from
Connecticut OTB, which opened its Sports Haven simulcast/multi-
entertainment facility in April 1995, and simulcasting revenues, due
to system efficiencies available from digital compression of
simulcast signals and expanded capacity arising from the January
1995 acquisition of transponders from IDB. In North American pari-
mutuel, increased revenue from existing customers and new
installations was offset in large part by sales lost due to severe
winter weather conditions.
The restructuring and refocusing of Autotote in fiscal 1995
continues to have a beneficial impact in fiscal 1996. While SG&A
was up by 8.7% over the year-earlier period, largely because of
legal and other corporate expenses, it was down 15.1% from the third
quarter of fiscal 1995, when the restructuring program was
implemented. As a percentage of sales, SG&A declined to 18.9% from
24.2% a year ago. EBITDA as a percentage of sales increased to
17.5% from 16.6%.
Thomas C. DeFazio, President and Chief Operating Officer, said,
With the restructuring essentially behind us, we have the benefit of
strong market positions in our core businesses, a lower cost
structure and a positive operating environment in our industry
segment." He added, The recent restructuring of our credit facility
greatly reduces the amount of debt scheduled to be amortized in 1996
to $8 million from approximately $35 million under the original
agreement and gives us improved flexibility in providing capital to
meet the needs of our existing customers as well as for new
contracts."
AUTOTOTE CORPORATION designs and manufactures computerized
wagering equipment and provides facilities management for use in
racetracks, off-track wagering, lotteries and legalized sports
betting facilities. Autotote's systems are in use in the United
States, Europe, Central and South America, Canada, Mexico, New
Zealand and the Far East.
AUTOTOTE CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations
FOR THE QUARTERS ENDED JANUARY 31,
(Unaudited)
(In Thousands, Except Per Share Amounts)
1996 1995
------- --------
Operating Revenues:
Wagering systems $ 29,568 $ 28,976
Wagering equipment and
other sales 13,738 2,141
-------- --------
43,306 31,117
Operating expenses (exclusive
of depreciation and
amortization shown below):
Wagering systems 18,847 16,925
Wagering equipment and
other sales 8,698 1,496
--------- ----------
27,545 18,421
Total gross profit 15,761 12,696
Selling, general and
administrative expenses 8,170 7,517
Depreciation and amortization 9,436 7,717
Operating loss (1,845) (2,538)
Other (income) expense:
Interest expense 3,662 2,849
Other (income) expense 292 (108)
-------- ----------
3,954 2,741
Loss before income taxes (5,799) (5,279)
Income taxes 1,202 652
Net loss $ (7,001) $ (5,931)
Loss per common share $ (0.23) $ (0.21)
Weighted average number
of common shares outstanding 30,905 28,810
CONTACT: Gregory W. Miller
The Miller Company
Tel: 914-834-1868
Fax: 914-834-6782
E-mail:millerco1@aol.com
LOS ANGELES -- March 5, 1996 -- Sizzler
International Inc. (NYSE:SZ) Tuesday announced that it anticipates a
loss approximating $4 million or 16 cents per share for the quarter
ended Feb. 4, 1996.
The unusually severe winter weather in the United States,
combined with slow systemwide sales and substantial costs related to
the expanded test of the Sizzler American Grill repositioning, were
primarily responsible for the loss.
Quarterly financial information is expected to be released on
March 18, 1996.
Kevin Perkins, president and CEO of Sizzler International,
stated: "Newly appointed Senior Executive Vice President and
Director Timothy Ryan, who is also president of Sizzler U.S.A., will
focus all his energies and knowledge of turnaround situations on the
repositioning and performance improvement of our Sizzler restaurants
in the U.S."
Ryan said: "We continue to be encouraged by positive responses
to the Sizzler American Grill repositioning. For the first time,
the company announced that the test modifications in Phoenix
generated sales increases in excess of 15 percent through its first
19 weeks. An additional test market, San Diego, opened last month
and is generating positive results.
"The company is also realizing benefits from its recent
reorganization, including a major reduction in administrative staff
and the implementation of other cost-containment procedures."
Perkins further stated: "The anticipated loss for the quarter
will put Sizzler's financial results below specific covenants with
its banks and, technically, would put the company in default of its
loan agreement. The company is current with all loan payments and
all other financial obligations. The company is working with its
banks to address the situation."
Sizzler International operates or licenses 586 Sizzler
restaurants worldwide. In addition, the company operates 92
Kentucky Fried Chicken (KFC) restaurants and one The Italian Oven
restaurant in Queensland, Australia, as well as six Buffalo Ranch
restaurants in the United States.
CONTACT: Sizzler International Inc., Los Angeles;
Christopher R. Thomas, 310/827-2300
LIVERPOOL, N.Y., March 5, 1996 - Fay's Incorporated
(NYSE: FAY) today announced financial results for the fourth quarter
and fiscal year ended January 27, 1996.
Revenues for the fourth quarter of fiscal 1996 increased 4.5% to
$264.4 million from $253 million a year earlier. Revenues from
comparable stores (stores open one year or more as of January 27,
1996) increased 2.5% for the fourth quarter.
Earnings from continuing operations for the fourth quarter,
excluding charges for restructuring, were $3.6 million or $.17 per
share, compared to $6.1 million or $.30 per share in the fourth
quarter of last year.
Revenues for the year increased 5.7% to $973.8 million from
$921.3 million in fiscal 1995. On a comparable store basis,
revenues for fiscal 1996 increased 1.8%.
For the year, earnings from continuing operations, excluding
restructuring charges, were $7.0 million or $.34 per share, compared
to $12.9 million or $.63 per share last year.
During the fourth quarter, the Company recorded an after-tax
charge of $12.5 million ($20.1 million pre-tax) associated with its
previously announced plan to reposition 50 undersized and
underperforming drug stores. This charge resulted in a loss from
continuing operations for the fourth quarter of $8.9 million or $.43
per share.
The loss from continuing operations for the year, including
restructuring charges, was $5.6 million or $.27 per share.
As previously announced, the Company also recorded, in the
fourth quarter, an after-tax charge of $3.6 million associated with
the disposition of the company's non-drug store businesses, Wheels
Discount Auto Supply and The Paper Cutter. Including this
provision, the Company reported a net loss for the quarter of $12.6
million or $.61 per share, compared to net income of $5.9 million
or $.29 per share in the fourth quarter last year.
Including the effect of restructuring charges and results from
discontinued operations, the net loss for fiscal 1996 was $9.6
million or $.47 per share, compared to net income of $12.6 million
or $.62 per share in fiscal 1995.
Henry A. Panasci, Jr., Chairman of the Board of Fay's, stated
"Earnings from continuing operations were impacted by declining
gross margins on prescriptions sold through third party plans and
weak Christmas sales. We have taken a number of steps to improve
profitability going forward, including the sale of our Wheels
Discount Auto Supply Division and the pending sale of The Paper
Cutter Division. We have also eliminated 90 administrative positions
resulting in a $3.3 million reduction in payroll costs and adopted a
plan to reposition 50 underperforming drug stores. In taking the
aforementioned steps, we are affirming our commitment to our core
drug store and pharmacy related businesses and are positioning
ourselves for future growth. Our strategy in fiscal 1997 is to
build on the strengths of our drug store and pharmacy businesses in
generating top-line growth, while making continued reductions in
operating costs."
The $12.5 million fourth quarter after-tax restructuring charge
relates to Fay's plan to reposition 50 drug stores it has identified
as undersized or underperforming. The process of relocating these
stores is targeted to be completed within an eighteen month time
frame. The charge includes all costs associated with the store
repositioning process, including a reserve for lease obligations and
the write-down of certain fixed assets. The majority of the
targeted stores are former independent pharmacies acquired by Fay's,
many of which operate under the Cornerdrug tradename. The Company
plans to relocate these stores, wherever possible, to prototype
freestanding locations featuring drive through pharmacy windows and
expanded convenience food departments. This repositioning process is
already underway, Fay's having relocated five drug stores during
fiscal 1996. Sales gains from these relocated stores have exceeded
expectations. The Company believes that the repositioning process
will have a positive impact on profits going forward.
The loss from discontinued operations relates to the Company's
disposition of its Wheels Discount Auto Supply Division in November
1995 and its plans to sell the assets comprising its Paper Cutter
Division. Fay's is presently in negotiations with a party interested
in acquiring Paper Cutter. The loss from discontinued operations
includes fiscal 1997 operating losses for Paper Cutter through the
anticipated date of sale.
On January 26, 1996, Fay's Board of Directors declared a regular
quarterly cash dividend of $.05 per share on the Company's common
stock, payable April 5, 1996 to shareholders of record on March 22,
1996.
Fay's operates the 12th largest chain of drug stores in the
United States, with 273 drug stores located in New York,
Pennsylvania, Vermont and New Hampshire.
FAY'S INCORPORATED
(In thousands of dollars except per share data)
Thirteen Thirteen
Weeks Weeks
Ended Ended
January 27 January 28
1996 1995
Revenues $264,372 $253,016
Income from Continuing Operations
Before Restructuring Charge 5,379 10,751
Restructuring Charge (20,087) --
Income (Loss) from Continuing
Operations Before Taxes (14,708) 10,751
Income (Loss) from Continuing
operations (8,938) 6,121
Loss from Discontinued Operations (3,642) (245)
Net Income (Loss) ($12,580) $ 5,876
Earnings (Loss) Per Share:
Income (Loss) from Continuing Operations ($.43) $ .30
Loss from Discontinued Operations ($.18) ($.01)
Net Income (Loss) ($.61) $.29
Average Shares outstanding 20,618 20,343
Stores in Operation at End of Period 274 277
Fifty-Two Fifty-Two
Weeks Weeks
Ended Ended
January 27, January 28,
1996 1995
Revenues $973,809 $921,307
Income from Continuing Operations
Before Restructuring Charge 11,174 22,558
Restructuring Charge (20,087) --
Income (Loss) from Continuing
Operations Before Taxes (8,913) 22,558
Income (Loss) from Continuing (5,550) 12,924
Operations
Loss from Discontinued operations (4,067) (287)
Net Income (Loss) ($9,617) $12,637
Earnings (Loss) Per Share:
Income (Loss) from Continuing Operations ($.27) $ .63
Loss from Discontinued Operations (.20) (.01)
Net Income (Loss) ($.47) $ .62
Average Shares Outstanding 20,585 20,357
Stores in operation at End of Period 274 277
CRANFORD, N.J. -- March 5, 1996 -- Linda's Flame
Roasted Chicken (NASDAQ:LINCU, LINCA) today reported that its net
restaurant sales for the year ended Dec. 31, 1995, rose 27% to
$2,366,000 from $1,856,000 in 1994.
The company reported a net loss of $2,070,000 ($1.28 per share),
including a $114,000 restructuring charge resulting from the closing
of an underperforming company store, compared with a net loss of
$1,203,000 ($1.07 per share) in 1994. Net losses for the fourth
quarter of $523,000 ($.32 per share) decreased from $590,000 ($.37
per share) from the same quarter in 1994.
Same store annual sales increased 3% in 1995 over 1994, while
same store sales in the fourth quarter decreased 11% reflective of a
generally weak retailing environment.
Commenting in the declining sales trend, Peter Weissbrod,
president and chief executive officer, said, "We have implemented
aggressive discounting campaigns to increase traffic and sales, and
introduced a new expanded menu featuring gourmet sandwiches and
salads which have been well received. We are hopeful that these
efforts will lead to improved sales in the coming months."
During 1995, the company developed and implemented a franchising
program that resulted in the sale of three franchises in 1995 and
one in January 1996. Additionally, the company's first prototype,
freestanding restaurant will open in Westwood, N.J., later this
month. Future plans call for multi-unit franchises nationwide.
Linda's Flame Roasted Chicken currently operates four quick
service restaurants, with a fifth store in Westwood approaching its
grand opening, and has franchise agreements for sites to open later
this year in South Orange and Oakland, N.J.
Linda's Flame Roasted Chicken Inc.
and Subsidiaries
Consolidated Operating Summary
Year Ended Three Months Ended
Dec. 31, Dec. 31,
1995 1994 1995 1994
Restaurant Sales, Net $2,366,015 $1,856,401 $469,771
$505,268
Net Loss (2,069,694) (1,203,179) (523,535)
(590,250)
Net Loss Per Share (1.28) (1.07) (0.32)
(0.37)
Average Number of Shares
Outstanding 1,615,000 1,124,000 1,615,000
1,615,000
CONTACT: Linda's Flame Roasted Chicken
Peter Weissbrod, 908/276-2080 ext. 19
-or-
Rubenstein Investor Relations
Dina Silva, 212/843-8057
HUDSON, N.H., March 5, 1996 - Howtek, Inc. (Nasdaq-NNM:
HOWT) today announced a loss of $5,255,047 or ($0.66) per share on
sales of $20,603,654 for the year ending December 31, 1995, as
compared to a profit of $880,420 or $0.11 per share, on sales of
$24,370,329 in 1994. Sales of $5,091,980 in the fourth quarter of
1995 declined 28% over sales in the fourth quarter of 1994 while
sales for the year, as a whole, declined 15% over sales in 1994.
The loss incurred in 1995 includes a restructuring charge of
$2,662,632 taken in the second quarter of the year and a $500,000
inventory and accounts receivable reserve adjustment in the fourth
quarter. The fourth quarter adjustment to inventory reflected a
change in estimates providing additional reserves for out-of-
production products.
Mr. Bothwell, Howtek's President/CEO, attributed the company's
poor performance to market weaknesses that have affected all
companies supplying the graphic arts market. In addition, the
company experienced significant start-up costs associated with its
entry into the Medical Digitizing Market. On the positive side, Mr.
Bothwell noted that clearance to market the new DX digitizer was
received in January of 1996, that the company had received ISO9001
certification, and that sales of its core product, the
Scanmaster(TM) 4500, remained strong.
He noted that the company had struck strategic alliances with
Color Byte, Inc. to market its "Trident(TM)" software and also with
Color Solutions, Inc. to include modules of its ColorBlind(TM)
software in the company's proprietary Aurora(TM) and Polaris(TM)
scanning packages. "With the improvement in our software offerings
and the availability of the DX and Scanmaster 2500 for sale, we look
for a strong reversal of the sales trend experienced in 1995 and
return to profitability in 1996," according to Mr. Bothwell.
Howtek was founded in 1984 by Robert Howard. Howtek designs,
engineers and manufactures, for sale throughout the world, flatbed
and drum scanners for the graphic arts and desktop publishing
markets, densitometers for the life sciences market, and film
digitizers for the medical imaging market.
HOWTEK, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
Three Months Ended Twelve Months Ended
December 31, December 31,
1995 1994 1995 1994
Sales $5,091,980 $7,136,679 $20,603,654 $24,370,329
Cost of sales 4,040,529 4,094,525 13,983,819 15,133,214
Gross profit 1,051,451 3,042,154 6,619,835 9,237,115
Operating costs 2,342,534 2,138,375 8,779,205 8,020,468
Restructuring
charge --- --- 2,662,632 ---
Interest expense 134,051 67,461 433,045 259,227
Income (loss)
before income tax
provision (1,425,134) 836,318 (5,255,047) 957,420
Provision for
income tax --- 68,000 --- 77,000
Net income (loss)
after income tax
provision (1,425,134) 768,318 (5,255,047) 880,420
Net income (loss)
per share ($0.18) $0.10 ($0.66) $0.11
Weighted shares
outstanding 7,949,516 7,884,656 7,934,654 7,884,763
TAMPA, Fla., March 5, 1996 - Kash n' Karry Food Stores,
Inc. (Nasdaq-NNM: KASH) today announced that sales for its second
quarter ended January 28, 1996 increased to $281.4 million from
$272.9 million for the same period last year, representing a total
sales increase of 3.1% and a 2.2% incease in same store sales. The
Company said that operating cash flow (adjusted EBITDA) improved by
7.1% to $15.4 million in the second quarter versus $14.3 million for
the same period last year. The Company also reported that operating
cash flow for the twenty- six week period ended January 28, 1996
increased to $25.8 million on sales of $531.7 million, compared to
$22.2 million on sales of $513.0 million in the comparable prior
year period.
Kash n' Karry reported net income of $1.2 million, or $0.25 per
share for the second quarter, and a net loss of $0.7 million, or
$0.14 per share, for the twenty-six week period. Net income and
income per share amounts for the prior year are not meaningful for
comparative purposes due to restructuring adjustments.
The Company said that gross profit, as a percentage of sales,
decreased from 20.1% in the second quarter last year to 19.6% in the
second quarter this year, and from 20.1% for the twenty-six week
period ended January 29, 1995 to 19.8% for the comparable period
ended January 28, 1996. The Company said that greater promotional
activity in the current year resulted in the decrease in margins.
Selling, general and administrative expenses decreased to 14.1%
of sales for the second quarter of 1996 compared to 14.9% for the
second quarter of 1995, and were 15.0% for the 1996 twenty-six week
period, down from 15.8% for the comparable period in the prior year.
The Company said that the improvements reflect reductions in group
insurance, workers' compensation/general liability insurance,
utilities and maintenance expenses.
"The increased cash flow and lower expenses we reported in the
second quarter are part of a positive trend at Kash n' Karry," said
Ron Johnson, Chairman and CEO of Kash n' Karry. "The increased in
sales is evidence of the success of both our new marketing
initiatives and our ongoing investment in the remodel and upgrade of
existing store facilities. We look foward to continued improvement
in our operating performance as the impact of these new programs is
felt across our store base."
As previously reported, on March 4, 1996, the Comnpany's common
stock began trading on the Nasdaq National Market under the trading
symbol KASH.
Kash n' Karry operates 100 food stores and 34 liquor stores in
West Central Florida. With over 10,000 associates, it is one of
Tampa Bay's largest employers.
KASH N' KARRY FOOD STORES
SELECTED FINANCIAL INFORMATION
(UNAUDITED)
(DOLLAR AMOUNTS IN THOUSANDS, % OF SALES)
13 weeks
1996 1995
$ % $ %
Sales 281,354 100.00 272,889 100.00
Gross profit 55,005 19.55 54,879 20.11
SG&A 39,647 14.09 40,545 14.86
Depreciation 6,161 2.19 6,140 2.25
Interest 6,567 2.33 5,561 2.04
Income before
taxes and
extradinary items 2,630 0.94 2,633 0.96
Same store sales 2.2%
Food stores open at
end of period 100 99
Average selling sq. ft.
during period
(in thousands) 2,920 2,903
Current portion of
long-term debt --- ---
Total Long-term debt --- ---
Capital expenditures 10,647 598
Operating cash flow
(adjusted EBITDA) 15,358 14,334
26 WEEKS
1996 1995
$ % $ %
Sales 531,722 100.00 513,035 100.00
Gross Profit 105,423 19.83 103,293 20.13
S G & A 79,669 14.98 81,045 15.80
Depreciation 12,328 2.32 12,213 2.38
Interest 12,989 2.44 16,121 3.14
Income before Taxes
and extraordinary
items 437 0.09 (6,086) (1.19)
Same store sales 3.2%
Food stores open at end
of period 100 99
Average selling sq. ft.
during period
(in thousands) 2,920 2,913
Current portion of
Long-term debt 4,808 12,764
Total Long-term debt 224,407 240,286
Capital Expenditures 17,606 827
Operating cash flow 25,754 22,248
Total Long-term debt/
LTM operating cash flow (1) 3.9X 5.2X
CONTACT: Richard D. Coleman, Kash n' Karry, 813-621-0273
MINNEAPOLIS, March 5, 1996 - Shuffle Master, Inc. (Nasdaq-
NNM: SHFL) today announced the Company will revise its first quarter
1996 earnings which were previously reported on February 26, 1996,
as a result of a decision to set up reserves aggregating $3.4
million to cover future potential losses associated with loans made
to All Creative Technology, Inc. d/b/a ACT/ACCESS. Shuffle Master
previously announced earnings of $1.3 million or $.12 per share,
subject to contingencies related to the loan to ACT/ACCESS.
Earnings have been revised to reflect these reserves which resulted
in an after tax loss of $1.1 million or $.10 per share for the
quarter ended January 31, 1996.
Joseph J. Lahti, president of Shuffle Master, commented, "This
unfortunate situation could not have been anticipated at the time
the loans were made in 1995. In spite of the reserves, our business
continues to be strong and should not be affected by this write-down
in value of the loans. These reserves should cover any and all
losses associated with these loans. Shuffle Master's balance sheet
has over $23 million in cash and investments as of January 3,1
1996."
As disclosed in the February 26, 1996 earnings release, Shuffle
Master made loans aggregating $3.3 million to All Creative
Technology, Inc. d/b/a ACT/ACCESS. ACT/ACCESS advanced a
substantial portion of the funds to Advanced CART Technology (CART),
a sister company of ACT/ACCESS which sells equipment to the gaming
industry. Shuffle Master learned that certain improprieties had
occurred at ACT/ACCESS and CART prior to January 31, 1996, which
resulted in CART's bank lender declaring a default and commencing
litigation in February 1996. A major portion of the Shuffle Master
loans were collateralized by 685 of the stock of CART.
Since learning of these improprieties, Shuffle Master has been
evaluating its alternatives to deal with this situation including
exploring whether to exercise its right against the collateral.
Both ACT/ACCESS and CART need significant additional financing to
continue their operations. Shuffle Master management examined a
reorganization of CART whereby Shuffle Master would have been a 685
shareholder and would have managed the operations of CART in an
effort to recover the amount loaned. It is management's opinion
that the continued operation of CART would require significant
additional financing from Shuffle Master and that the prospects for
repayment of the new advances and original loans were questionable.
These additional advances and operation of the business would also
require management time and close attention. Additionally,
uncertainties related to any unknown liabilities, along with the
previous concerns, were all major factors in the decision not to
provide additional funding to CART.
"In the final analysis, it is our opinion that Shuffle Master
and its shareholders would be best served by devoting these same
financial and management resources to expanding the existing
business lines," Lahti continued. "Moving forward, we prefer to
focus resources on expanding Let It Ride(R) The Tournament(TM) to
new jurisdictions and launching Video Let It Ride(R), both of which
we believe have excellent sales and profit potential."
Shuffle Master, Inc. d/b/a Shuffle Master Gaming, is a rapidly-
growing Minneapolis-based business serving the gaming industry with
innovative products and services.
SHUFFLE MASTER, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
` Three Months Ended
January 31, (In
thousands, except per share amounts) 1996 1995
(Unaudited)
Revenue:
Let It Ride(R) The Tournament(TM) $6,009
Lease 2,190 $1,019
Sales 792 315
Other 119 132
9,110 1,466
Costs and expenses:
Let It Ride(R) The Tournament(TM) 4,748 --
Cost of leases, sales and other 1,190 589
Selling, general, and administrative 1,408 701
Research and development 236 114
Total operating expenses 7,582 1,404
Income from operations 1,528 62
Other (expense) income:
Loss on notes receivable (3,370) --
Interest income 370 91
(Loss) Income before income taxes (1,472) 153
Provision for income taxes 375 (2)
(Loss) Income from
continuing operations $(1,097) $127
Weighted average common and common
equivalent shares outstanding 11,296 9,124
Net(loss) income per share $(.10) $.01
CONTACT: John G. Breeding, Chairman and CEO or Steven A. Kahn,
Vice President, CFO of Shuffle Master, 612-943-1951
KPMG NAMES ROBERT STARZYK AS MANAGING DIRECTOR, CORPORATE
RECOVERY SERVICES
ATLANTA, March 5, 1996 - Robert Starzyk has joined KPMG
Peat Marwick LLP as a Managing Director in the Corporate Recovery
Services practice. In his role, Starzyk will be responsible for the
firm's turnaround and bankruptcy services in the Southeast.
Starzyk has over 14 years of experience in working with
businesses experiencing operating and financial difficulties in most
major industries. He has successfully assisted businesses in
manufacturing, high-tech, specialty retailing, distribution, and
transportation and has served as interim president and executive
vice president of operations. Over the past several years, the
majority of his clients have been businesses experiencing the
challenges of extremely rapid growth.
"We are extremely pleased to have Bob join our team," said Dale
Metz, partner-in-charge of KPMG's national Corporate Recovery
Services practice. "Bob brings tremendous depth to our practice and
continues our efforts to strengthen this business segment by
retaining the most experienced people in the corporate recovery
field."
KPMG Peat Marwick LLP is the U.S. member firm of KPMG, The
Global Leader among professional services firms. Worldwide, KPMG
has more than 6,000 partners as well as 72,000 professionals
servicing clients through 1,100 offices in 829 cities in 136
countries. In the U.S., KPMG partners and professionals deliver a
wide range of value-added consulting, assurance and tax services in
five markets: financial services; manufacturing, retailing and
distribution; health care and life sciences; information,
communications and entertainment; and public services.
CONTACT: Karen Handel, KPMG Peat Marwick, 404-222-3464
ANDOVER TOGS ANNOUNCES LOSS FOR FISCAL 1995
NEW YORK, March 5, 1996 - ANDOVER TOGS, INC. (Nasdaq-NNM:
ATOG) announced today the results of its operations for its fourth
quarter and year ended November 30, 1995. The Company reported net
sales in the fourth quarter of $22,169,000 as compared to net sales
in the fourth quarter of fiscal 1994 of $27,828,000. The Company's
net sales for the fiscal year ended November 30, 1995, however,
increased to $80,552,000 as compared to net sales of $73,767,000 for
the fiscal year ended 1994. The increase in net sales for fiscal
1995 was primarily attributable to the Dobie acquisition.
The Company sustained a net loss of $3,195,000 or $ .72 per
share in the fourth quarter of fiscal 1995 as compared to net income
in fiscal 1994 of $1,275,000 or $.29 per share. The Company
sustained a net loss for fiscal 1995 of $4,279,000 or $.96 per share
as compared to net income for fiscal 1994 of $125,000 or $.03 per
share. The net loss sustained by the Company in the fourth quarter
and for the year is attributable to continued pricing pressures, the
booking of business at reduced margins, excess manufacturing
capacities and a depressed retail environment. The Company
manufactured and sold inventory at prices that were at break even or
below cost. In addition, the Company had difficulties integrating
the Dobie business with the Company's business. Sales allowances and
additional markdowns were taken in the fourth quarter attributable
to the Dobie business. Of the loss in the fourth quarter of 1995,
approximately $832,000 was attributable to a write-off of the cost
in excess of net assets acquired.
As a result of the losses sustained by the Company for 1995, the
Company ceases to be in compliance with many of the financial
covenants in its various credit agreements thereby causing defaults
under those agreements and jeopardizing the continued support of the
Company's lenders. The Company and its principal stockholders have
been negotiating with the Company's lenders for their continued
support. To date, such negotiations have not been successful and
the continued support of the lenders may not be forthcoming.
Accordingly, the Company is considering all of its available
options, including a filing for protection under the Federal
bankruptcy laws.
ANDOVER TOGS, INC. AND SUBSIDIARIES
SUMMARY OF OPERATIONS
(In the $000s except per share)
Three Months Ended Year Ended
November 30 November 30
1995 1994 1995 1994
Net Sales $22,169 $27,828 $80,552 $73,767
Write-off of cost in
excess of net assets
acquired 832 -- 832 --
(Loss) Earnings before
(benefit) provision for
income taxes (4,297) 1,862 (5,916) 142
Net (Loss) Earnings (3,195) 1,275 (4,279) 125
Net (Loss) Earnings per
common share $(.72) $.29 $(.96) $.03
Weighted Average 4,463,300 4,358,300 4,435,400 4,358,300
common shares
CONTACT: William L. Cohen, Chief Executive Officer, of Andover
Togs, Inc., 212-244-0700