TORONTO, March 12 /CNW-PRN/ - href="internat.canada.battery.html"> Battery One, Inc. (``Battery
One'' or the ``Company'') is pleased to announce its completion of
the purchase of all the property and assets of its former wholly-
owned Canadian operating subsidiary, Battery One-Stop International
Inc., effective March 8, 1996. The property and assets purchased by
Battery One include: inventory; store furnishings, fixtures and
equipment; and, all right, title and interest of Battery One-Stop
International Inc. in and to fifteen (15) leased retail premises in
malls in Canada (the ``Leased Premises''). Battery One's acquisition
also provides the Company with the right to seek the consent of
landlords to have the leases governing these Leased Premises
assigned to it for purposes of resuming retail operations.
The Company previously reported by News Release dated February
1, 1996, that Battery One-Stop International Inc. had made a
voluntary assignment in bankruptcy under the Canadian Bankruptcy and
Insolvency Act on December 14, 1995. Battery One, as Battery One-
Stop International Inc.'s parent company and largest creditor,
benefits from a secured position, and is entitled to share in any
net proceeds of the Bankrupt's Estate after expenses and super-
priority claims, expected to be wound up and distributed over the
course of the next 90 days.
Batteries Etc., Inc. U.S. Bankruptcy Proceedings
As previously reported, the Company's former wholly-owned U.S.
operating subsidiary, Batteries Etc., Inc., which filed a Chapter 11
Petition under the United States Bankruptcy Code, was converted to
Chapter 7 on January 25, 1996. Battery One, the largest creditor of
Batteries Etc., Inc., is entitled to share in any net proceeds of
the Bankrupt's Estate, expected to be wound up and distributed over
the course of the next 90 days.
Battery One has made an offer to purchase certain strategic
property and assets of the Estate of Batteries Etc., Inc. from the
Bankrupt's New York Trustee, including: the acquisition of Batteries
Etc., Inc.'s lease and lease rights for the leased retail premises
in the Pittsburgh, Pennsylvania Airport, together with the related
store furnishings, fixtures and equipment; plus, certain
furnishings, fixtures and equipment situate at Batteries Etc.,
Inc.'s former Rochester, New York offices.
Special Warrant Private Placement Financing
The Company previously reported upon the first closing of its
Special Warrant Private Placement Financing (the ``Offering'') by
News Release dated March 1, 1996, announcing the completion of 36
million Special Warrants representing Cdn. $3.6 million. This
closing and the availability of these funds has enabled the Company
to purchase all of the property and assets of Battery One-Stop
International Inc., and to offer to purchase certain property and
assets of Batteries Etc., Inc.
The Company further reported that given the response it had
received to the Offering, it obtained regulatory approval to
increase the maximum amount of the Offering to 45 million Special
Warrants from 40 million Special Warrants, representing a total of
Cdn. $4.5 million.
The Company is pleased to now report the subscription for an
additional 3.5 million Special Warrants, representing Cdn. $350,000.
The balance of the Offering, representing 5.5 million Special
Warrants and Cdn. $550,000 which remains unsubscribed, is
anticipated to be completed on or before March 29, 1996.
Battery One, Inc. publicly held, trades on The Alberta Stock
Exchange under the symbol ``BTB'' and on NASDAQ's OTC Bulletin Board
under the symbol ``BATT''.
The Alberta Stock Exchange neither approves nor disapproves of
the contents of this News Release.
CONTACT: Battery One, Investor Relations, at 1-800-387-4239 or
905-479-5683
DALLAS, TX -- March 12, 1996 -- BancTec(R) (NYSE-BTC)
reported today that, as expected, consolidated results for the
quarter and nine months ended December 31 were affected by
previously announced charges related to the merger and consolidation
of the operations of Recognition International Inc. (RII). For the
quarter, the Company said, its net loss was $61.8 million, or $3.02
per share, on revenues of $125 million, compared to net income of
$7.0 million, or 35 cents per share, on revenues of $142.7 million
for the comparable period in the previous year.
BancTec, which earlier announced that it would change its fiscal
year to begin January 1, 1996, said that, as expected for the
consolidated nine-month period in 1995, it had a net loss of $53.5
million, or $2.63 per share, on revenues of $384 million, compared
to a net loss of $12.9 million, or 63 cents per share, on revenues
of $389.7 million in the same nine-month period in the previous
year.
Results In Line With January Estimates
"These results are right in line with the estimates we outlined
to investors in January," said Grahame N. Clark, Jr., chairman and
chief executive officer. In the quarter, revenues were down some 12
percent, due primarily to lower sales by former RII operations,
which were anticipated. BancTec booked, as previously announced,
pretax charges of $85 million related to the merger and
restructuring of the Company as it consolidates the RII operations
acquired in October of 1995. "Excluding these charges, we were at
approximately break even in pretax income for the quarter," Clark
said. "On a period-over-period basis, our gross profits excluding
these charges were down by $13.2 million, primarily because of the
factors we cited in January: lower revenues from former RII
operations, some cost overruns on certain large systems development
contracts which produced important new software product technology
and startup costs related to several new large network service
contracts."
In the nine-month period, BancTec said, the loss resulted from
the charges and an after tax item of $1.2 million for depreciation
changes to conform RII depreciation policies with those of BancTec.
"Those charges were partially offset by $9.5 million of net earnings
we had in the first two quarters," Clark said.
Merger and Restructuring Charges Detailed
The $61.8 million loss in the quarter, the Company said, was
made up primarily of the $85 million (pretax) charge composed of: 1)
Severance of employees, excess inventory and inventory related to
discontinued products, certain fixed assets, relocation and other
accrued expenses of $41 million reflected in Cost of Sales; 2) Write-
off of capitalized software and severance of employees of $7 million
reflected in Product development; 3) Costs incurred to complete the
merger, severance of employees and write-off of certain trade
accounts receivable of $24 million reflected in SG&A; and 4) Write-
off of goodwill and certain intangible assets of $13 million
reflected in Amortization.
The net loss for the nine-months of $53.5 million consisted of
the $85 million charges and the depreciation change provision,
offset by the first two quarters' net income of $9.5 million. On a
consolidated basis there was also a restructuring charge of $20
million taken in 1994 by RII. To make financial statements
consistent on a period-to-period basis, this charge was reflected in
the reported figures as $16 million for Cost of Sales, and $4
million in SG&A.
Clark Outlines Achievements Since Acquisition
"We are well underway with the consolidation," Clark said.
"Our management organization is in place, order bookings continue at
or above plan and over the past five months we have streamlined our
sales, administration, and marketing and service organizations and
strengthened our product families. We have renegotiated our bank
line of credit, thereby reducing interest costs and increasing our
revolving credit facility to $50 million. We are now in the final
phase of improving our information systems, and moving all
manufacturing and assembly operations to our Irving, Texas,
facility."
Focusing on Areas of Expertise
Clark noted that the Company is focusing on those areas where it
has particular business and technical expertise. He said those
areas include financial document processing, image-based archival
and retrieval applications, document imaging and workflow, community
banking, local area network management and PC maintenance services.
"During the past year, the Company introduced several new
product and service programs," Clark said. "An increase in market
demand for high- speed image-based archival and retrieval systems
coincided with the introduction and delivery of the ImageFIRST
OpenArchive(R) products. We were able to sell major systems to GTE,
The Federal Reserve Bank of Boston, the Norwegian BBS and other U.S.
and European companies.
"We introduced the Model 9500 workstation for lower volume
applications, and our new S-Series high-speed scanners for page
imaging -- our newest products and the industry's most complete
array of hardware, software and systems solutions for document
processing and imaging," he noted.
Continuing Growth in Network Management, PC Services
The Company is also experiencing continuing growth in its
network management and PC Services businesses. "Major companies are
turning to BancTec for their outsourcing solution, and we continue
to win awards for our PC maintenance services to such companies as
Dell, AST, PictureTel and Power Computing," Clark said.
He pointed to the Company's Plexus(R) imaging and workflow
software division as another area of potential growth. "During the
past few months we have taken strong steps to re-establish Plexus as
a premier supplier of such products. We have recruited an
experienced executive as general manger, established the division's
headquarters in Sunnyvale, Calif., made strategic product
announcements, and developed new advertising programs. And we have
significantly strengthened relationships with our business
partners," he added.
Customers, shareholders and employees have responded very well
to the Company's current business direction, Clark said. "We are
now much larger and more diverse, putting us in an ideal position to
capitalize on our strengths and make the most of future growth
opportunities. We are determined to further strengthen our position
as an acknowledged leader in each of the industries we serve," he
concluded.
BancTec is a leading provider of integrated financial
transaction processing systems, workflow and imaging products,
application software, and professional services. The Company
specializes in developing solutions for the banking, financial
services, insurance, health care, government, utility,
telecommunications, grocery and retail industries. The Company also
designs and manufactures document processing equipment for OEM
customers and provides network support services for local area
networks and personal computers.
BANCTEC, INC
STATEMENT OF OPERATIONS
(In Thousands, except per share data)
3 Months Ended 9 Months Ended
-------------- --------------
12/31/95 12/31/94 12/31/95 12/31/94
-------- -------- -------- --------
Revenue $125,003 $142,733 $383,984 $389,743
Cost of Sales 137,186 99,488 322,503 289,727
-------- -------- -------- --------
Gross Profit (12,183) 43,245 61,481 100,016
-------- -------- -------- --------
Operating Expenses
Product development 12,201 5,126 21,455 20,899
S, G & A 43,200 23,485 85,908 71,837
Amortization 14,598 2,819 18,089 7,274
-------- -------- -------- --------
69,999 31,430 125,452 100,010
-------- -------- -------- --------
Income (Loss) From
Operations (82,182) 11,815 (63,971) 6
-------- -------- -------- --------
Other Income (expense)
Interest income
(expense) - net (2,012) (2,038) (5,470) (5,235)
Sundry - net (759) (227) (1,274) 1,116
-------- -------- -------- --------
(2,771) (2,265) (6,744) (4,119)
-------- -------- -------- --------
Income (Loss) Before
Provision for Income
Taxes (84,953) 9,550 (70,715) (4,113)
Income Tax Provision (23,136) 3,267 (17,234) 9,984
Minority Interest 0 766 0 1,210
-------- -------- -------- --------
Net Income $(61,817) $ 7,049 $(53,481) $(12,887)
Earnings Per Share:
Net income $ (3.02) $ 0.35 $ (2.63) $ (0.63)
Fully Diluted Shares 20,451 20,247 20,315 20,341
BALANCE SHEET
(In thousands)
12/31/95 3/26/95
-------- -------
Cash and temporary investments $ 26,874 $ 52,837
Receivables - net 106,189 131,767
Inventory - net 76,930 76,831
Other current assets 25,873 20,327
-------- --------
Total Current Assets 235,866 281,762
Goodwill - net 91,503 101,497
Other non-current assets 112,979 118,499
-------- --------
Total Assets $440,348 $501,758
Current liabilities $193,530 $191,622
Non-current liabilities 90,617 103,393
Stockholders' equity 156,201 206,743
-------- --------
Total Liabilities and Equity $440,348 $501,758
DAYTON, Ohio -- March 12, 1996 -- Moto Photo Inc.
(NASDAQ:MOTO), a Dayton, Ohio based franchisor and operator of 440
one hour photofinishing labs in the U.S., Canada, and Norway, today
reported results for the fourth quarter and year-ended Dec. 31,
1995.
All results for 1995 are after the previously announced fourth
quarter charge to earnings of $5.8 million to write-down the book
value of 32 company stores the company intends to sell as
franchises.
Fourth quarter 1995 had a net loss of $5,519,583 or 72 cents per
share compared to a net income of $511,494, or 4 cents per share in
the fourth quarter of 1994. Fourth quarter revenues increased to
$11,818,147 from $11,425,819 for the same period of 1994. For the
year the company recorded a net loss of $5,673,647, or 69 cents per
share compared to an income of $725,230, or a loss of 7 cents per
share in 1994. Revenues for 1995 were $42,217,722, up from 1994's
revenues of $40,144,886. Earnings per share amounts are after
dividends recorded on the company's preferred shares.
Michael F. Adler, chairman and CEO of Moto Photo, said, "1995
was a weak year due to the interruption of our color paper supply
caused by changes in U.S. import practices and the losses generated
by the expansion of our nationwide telemarketing service. We had a
profit of $126,353 before the restructuring charge and could have
had a record year but for these factors."
Adler continued, "Our concept of offering imaging services
through franchisees is working and even in 1995's soft retail
environment, our franchises are generating same store sales growth
of almost 9 percent. However, company store comparable sales were
down 1 percent. This long standing trend makes it clear that
franchising is a better way for us to go than through company
stores, and as a result, we have designed a plan to allow both the
company and franchises to improve their profits and to improve our
company balance sheet while playing to our major strength as
America's largest franchisor of one hour photofinishing labs and
portrait studios. This led to our decision to take a write-down on
selected company stores in order to facilitate the franchising of
these 32 stores."
"The color paper situation will be corrected in the next several
months, telemarketing results are improving, and we anticipate 1996
as a year we get back on the track of ever increasing profits,"
Adler concluded.
MOTO PHOTO INC.
FINANCIAL HIGHLIGHTS
QUARTER ENDED YEAR-ENDED
DEC. 31 DEC. 31
12/31/95 12/31/94 12/31/95 12/31/94
________ ________ ________ ________
Revenue $11,818,147 $11,425,491 $42,217,722
$40,144,886
Pre-tax income
(loss) (5,417,583) 822,494 (5,673,647)
1,150,230
Income tax
(expense) benefit (102,000) (311,000)
--- (425,000)
Net income (loss)
after tax (5,519,583) 511,494 (5,673,647)
725,230
One-time adjustment
to common share
earnings --- --- 673,219 ---
Less preferred
dividends (73,004) (283,449) (307,354)
(1,120,725)
Net income (loss)
applicable to
common shares (5,592,587) 228,045 (5,307,782)
(395,495)
Net income (loss)
per common share $(0.72) $0.04 $(0.69)
$(0.07)
Average shares
outstanding 7,785,973 5,694,103 7,687,249
5,664,446
GREENVILLE, S.C., March 12, 1996 - href="chap11.macgregor.html">MacGregor Sports &
Fitness, Inc. ("MacGregor") (Nasdaq: MACG) responded today to a
press release issued by Riddell Sports, Inc. on March 8, 1996,
concerning a "Letter of Intent to Settle Litigation in MacGregor
Bankruptcy." This press release is to clarify that the Riddell
Sports press release related to the bankruptcy of MacGregor Sporting
Goods, Inc., now known as "M Holdings," a New Jersey-based company
which filed bankruptcy in 1988. It does not in any way relate to or
impact upon MacGregor and its business. Mike Casazza, President of
MacGregor, specifically noted that "neither the long-ago bankruptcy
of an unrelated party or the settlement of litigation among the
parties in the bankruptcy proceeding has any impact upon the
upcoming merger between MacGregor and Technical Publishing
Solutions, Inc. ("TPSI"), as announced on January 15, 1996, which is
progressing as planned." MacGregor and TPSI currently anticipate
that the proposed merger will be consummated before the end of the
second quarter of 1996.
CONTACT: Michael S. Casazza, President of MacGregor Sports &
Fitness, 864-294-5230
CHICAGO, March 12, 1996 - Duff & Phelps Credit Rating Co.
(DCR) has rated the senior subordinated debt of PennCorp Financial
Group, Inc. (PennCorp) at 'BBB' (Triple-B). The rating reflects the
improved capital structure from the recent issuance of common
equity, moderate interest and preferred dividend coverage and very
good asset quality. Weighed against these positives are
uncertainties associated with the company's acquisition strategy.
PennCorp is a publicly traded holding company based in New York
City with total assets of $3.2 billion and shareholders' equity of
$436 million (excluding FAS 115) at December 31, 1995. In March
1996, the company issued $143 million of common equity in a public
offering. This issuance lowered PennCorp's debt-to-total capital
ratio from 40 percent at December 31, 1995, to 25 percent on a pro
forma basis. The company maintains a large preferred equity
component of the capital structure, 17 percent pro forma at yearend
1995. Interest coverage ratio and interest and preferred coverage
ratio on a pro forma basis were 6.3 times and 3.4 times,
respectively, in 1995. PennCorp's target debt-to- total capital
ratio is 25 percent, however the company is willing to allow this
ratio to increase if an attractive acquisition becomes available.
In 1995, PennCorp formed an acquisition partnership with bank
investors called Knightsbridge Capital Fund I, L.P. (Knightsbridge).
In December 1995, PennCorp (67 percent) and Knightsbridge (33
percent) purchased Southwestern Financial Corp. (SWF) for $260
million. SWF was formed by PennCorp and Knightsbridge for the
acquisition of Southwestern Life Insurance Company, Union Bankers
Life Insurance Company and other units from href="chap11.ich.html">I.C.H. Corporation, a
bankrupt holding company.
The majority of PennCorp's growth since its establishment in
1989 has come through acquisitions. The company's strategy has been
to acquire life insurance companies and consolidate their operations
with the operations of other PennCorp subsidiaries. The company's
goal is to expand distribution channels, product portfolio and
geographic diversification and reduce expenses. Through its
operating subsidiaries, PennCorp provides life insurance, accident
and sickness insurance and annuity products to individuals. Key
individual markets include low and moderate income households, non-
English speaking households, military enlistees and rural/suburban
locations. To reach these markets, PennCorp uses a career sales
force, an independent general agent sales force and a payroll
deduction sales force. In 1995, pro forma operating return on
assets was 2.67 percent and return of equity was 15 percent.
PennCorp has very good asset quality with low exposure to below
investment grade bonds and mortgage loans. Total invested assets at
December 31, 1995, consisted of bonds at 67 percent, cash at 19
percent, policy loans at 5 percent, trading securities at 4 percent
and mortgage loans at 2 percent.
CONTACT: Julie A. Burke, CPA, CFA, 312-368-3158, or Douglas M.
Pawlowski, 312-368-2054, both of Duff & Phelps Credit Rating Co.