ROSWELL, Ga., March 14, 1996 - Harry's Farmers Market,
Inc., (Nasdaq: HARY) reported that the Company's estimated net loss
for the fourth quarter of fiscal 1996 (ending January 31, 1996) will
be in the range of 10 to 12 cents per common share, compared to a
loss of 26 cents per common share for the same period last year.
This is considerably better than the results projected by analysts
for this period. Management said that the majority of this
improvement was due to strong gross profit growth which as a
percentage of net sales increased to 26.6% for the quarter from
24.4% for the comparable quarter in fiscal 1995 (gross profit for
third quarter '96 was 23.6%). This increase in gross profit for the
quarter was primarily the result of improvements in operational
efficiencies, in particular in manufacturing, distribution and
procurement.
Harry A. Blazer, Chairman, CEO and President of the Company,
said, "We are making substantial progress toward our goal of
returning the Company to profitability. We believe that the
improvements in gross margin that we are seeing for the fourth
quarter are sustainable. In addition, we believe that continued
improvements in operations at all levels will provide us with
opportunities for further expense reduction. A primary focus now is
in improving sales to match the improvements we have made elsewhere.
Recently, we have been experiencing a positive trend in comparable
store sales."
Sales for the fourth quarter were $33.4 million, compared to
sales of $36.0 million for the same period last year. (The fourth
quarter contained four days of sales from the Clayton store which
closed on November 5, 1995). On a comparable store basis, sales
declined by 8.1% for the fourth quarter. Part of this decline was
weather related. Commenting further on sales, Mr. Blazer said, "It
appears that we have bottomed out in terms of the negative sales
trend. We began to see an improvement in the last weeks of January.
During the first week of February, we were forced to close the store
on Saturday due to snow. Since the second week of February, we have
realized a comparative store sales decline of only 0.5% on average,
with some stores showing positive comparisons. We believe that
recent merchandising initiatives combined with better operational
performance at store-level, higher employee morale and a more
cohesive management team are responsible for these recent
improvements in sales trends."
The Company also reported the sale on March 13, 1996 of an
outparcel at its Gwinnett megastore location to HiFi Buys for above
book value. The net proceeds of $562,000 have been used to reduce
the Company's borrowings. Recent road improvements and commercial
development in the area have stimulated interest in the two
remaining outparcels at the Gwinnett location and an additional
contract on one of those is anticipated shortly. The Company also
reported that the proposed Nashville sale was on track and that the
Company expected to close this transaction by June 1, 1996. If the
sale occurs in accordance with the terms of the contract, the
Company should receive about $4.3 million net from the sale, which
will be used to further reduce the Company's borrowings. The sale
should provide net proceeds to the Company equal to the book value
of the tract.
The Company reported that it remained out of compliance with a
financial covenant with respect to the mortgage loan from Citicorp
Bank on its bakery facility and distribution center. As announced
in the third quarter, the Company obtained a waiver from its lenders
under the senior credit facility with NationsBank as agent bank of
the financial covenants and received a conditional agreement of such
lenders to forbear declaring a cross-default as a result of the
breach of the financial convenant under the mortgage loan. The
Company has been unable to obtain a waiver for the violation under
the mortgage loan. However, it continues to negotiate with the
mortgage lender for a waiver and believes that an agreement with
such lender will be reached.
The Company's estimated net loss for the 1996 fiscal year ending
January 31, 1996 is $1.63 to $1.65 per common share, compared to a
loss of $1.09 per common share for fiscal 1995. The loss for fiscal
1996 included a write-down of $4,430,000 or 72 cents per common
share in the third quarter due to the closing of the Clayton County
store.
Sales for fiscal year 1996 were $145.9 million, compared to
sales $143.8 million for fiscal year 1995, an increase of 1.5%
during the year. The increase in the fiscal 1996 year revenue is
attributable to the revenue generated by the Clayton store from the
time it opened in May 1995 until its closing on November 5, 1996.
The Company also reported that its emphasis on food safety had
been recognized. Among other things, the January 1996 reviews by
the Department of Commerce resulted in each of the three megastores
receiving Final Facility Ratings of Level 1 Compliance in seafood.
This is the highest rating achievable. The Company received a
perfect rating from the Georgia Department of Agriculture in
February as part of a routine inspection at the Apharetta store and
Harry's In a Hurry store on Peachtree. The most recent quarterly
inspection record for the Company's USDA inspected prepared food
plant was its highest yet, with a 99.64% compliance.
Harry's Farmers Market, Inc., owns and operates in metro Atlanta
three megastores and two Harry's In A Hurry Convenience stores
specializing in fresh food products, as well as specialty and
gourmet food products that complement the fresh food offering.
CONTACT: George Goodwin of Harry's Farmers, Inc., 404-875-1444,
ext. 238
BOCA RATON, Fla., March 14, 1996 - Brothers Gourmet
Coffees, Inc. (Nasdaq: Bean), the largest wholesale branded U. S.
roaster of gourmet coffees, today reported fourth quarter earnings
of $1.6 million or $.15 per share from continuing operations as
compared with $1.3 million or $.12 per share for the comparable
quarter last year, an increase of 25%. Donald D. Breen, President
and CEO, said, "Our return to profitability in the core wholesale
business is tangible evidence that our strategy to cut costs and
improve margins is beginning to pay off."
The increased wholesale earnings were primarily attributable to
improved gross margins due to lower green coffee costs and lower
SG&A expenses resulting from the Company's restructuring during the
third quarter. Gross margins expanded to 50% during fourth quarter
1995, up dramatically from 35% in the same quarter a year ago and is
primarily attributable to lower green coffee costs, reduced
manufacturing overhead and a reduction in the Company's lifo
reserve. Operating expenses were also down significantly. Selling,
General and Administrative expenses were reduced by over $2 million
during the fourth quarter dropping to $9.7 million compared to $12.0
million last year.
As a result of revisions to previous estimates, the Company
increased its loss from discontinued operations by $3.2 million.
The increase in the reserve resulted in a $.14 loss per share for
the quarter and is attributable to higher costs associated with the
phase out period and the longer than anticipated disposition of the
Brothers' 28 street front coffee bars. Commenting on the retail
disposition Breen said, "We have closed on the sale of the Denver
and Houston bars with Diedrich's Coffee, and we are in discussions
with several parties on the sale of our Chicago, Washington D.C. and
New York stores. I'm optimistic we can wrap up the sales process
quickly and concentrate on our core wholesale business."
The loss for the year ended December 29, 1995, including the
loss from discontinued operations of $43.8 million or $3.91 per
share, was $53.5 million or $4.78 per share. The loss for Fiscal
1995 compared to net income of approximately $2.4 million or $.20
per share in Fiscal 1994. Net Sales in Fiscal 1995 were
approximately $95.0 compared to Net Sales for Fiscal 1994 of
approximately $114.1 million.
With the completion of the sale of Gloria Jeans and the Denver
and Houston coffee bars, the outstanding borrowing of the Company
has dropped dramatically from a high of approximately $50 million to
approximately $15 million. The Company has entertained several
refinancing proposals and is working on securing a commitment to
refinance its revolving credit facility which terminates March 31,
1996.
Breen went on to say, "1995 has been a year of challenges. I am
optimistic that the strategic and sweeping changes the Company made,
principally in the areas of the divestiture of its retail operations
and the consolidation of its roasting facilities, will reap many
future benefits and produce improved profitability."
Brothers Gourmet Coffees Inc., headquartered in Boca Raton,
Florida is the nation's largest branded roaster of gourmet coffee in
the wholesale distribution channel (grocery, military commissaries,
warehouse stores, mass merchandisers and specialty stores).
BROTHERS GOURMET COFFEES, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share amounts)
Three-Months Ended Twelve-Months Ended
Dec. 29 Dec.30 Dec. 29 Dec. 30
1995 1994 1995 1994
Net Sales $ 26,052 $ 40,595 $ 95,005 $ 114,165
Cost of goods sold 13,096 26,299
52,951
63,817
Gross profit 12,956 14,296 42,064 50,348
Operating Expenses
Selling,general and
administrative 9,669 11,996 44,858 42,309
Restructuring -- -- 945 --
Amortization of
intangibles 795 941 3,373 3,785
Total operating
expenses 10,464 12,937 49,176 46,094
Operating Income (loss)
from continuing
operations 2,492 1,359 (7,122) 4,254
Interest expense, net 831 630 2,523 1,625
Other expense 43 (560) 47 (538)
Income (loss) from
continuing
operations 1,618 1,289 (9,692) 3,167
Discontinued Operations:
Income (loss) from
discontinued
retail operations -- 1,161 (5,368) (810)
Estimated loss on
disposal of
discontinued retail
operations, including
provision of $6,108
for estimated
operating losses
during phase-out
period (3,200) -- (38,426) --
Net Income (loss) $ (1,582) $ 2,450 $ (53,486) $ 2,357
Earnings (loss) per
common share:
Earnings (loss) per
common share from
continuing
operations $ 0.15 0.12 $ ($0.87) $ 0.27
Earnings (loss) per
common share
from discontinued
operations (0.29) 0.10 ($3.91) (0.07)
Earnings (loss) per
common share $ (0.14) $ 0.22 $ (4.78) $ 0.20
Weighted average
common shares
outstanding 11,202 11,784 11,184 11,848
BOULDER, Colo., March 14, 1996 - Hauser (Nasdaq: HAUS)
announced today its third quarter results for fiscal year 1996 ended
January 31, 1996. The Company reported revenues of $6,504,492 and a
net loss of $1,706,411, or $(.16) per share compared to revenues of
$5,608,836 and net loss of $1,956,264 or $(.19) per share for the
third quarter of fiscal 1995. For the nine months ended January 31,
1996, Hauser's total revenues were $17,557,669 with a net loss of
$5,059,809 or $(.49) per share compared to $17,511,369 with a net
loss of $983,785 or $(.09) per share for the same period in fiscal
1995.
William Paukert, Hauser's Chief Financial Officer explained,
"Progress was made in several of our market areas during the
quarter. Revenues from Nutraceutical products increased 37% over the
previous quarter. We are pleased with the Technical Service group's
revenue growth of 174% over the same period last year which was
largely due to the acquisition of Shuster. Also our paclitaxel
program with American Home Products continued to progress and is
meeting our expectations. However, our third quarter results are
disappointing."
Mr. Paukert added, "Ironwood Evergreens, our subsidiary engaged
in the manufacture and sales of secondary forest products, did not
generate anticipated sales and profits. The Christmas season is
normally their strongest selling period. Ironwood experienced an
operating loss of $796,934 in the quarter, significantly impacting
overall corporate results. In light of this situation, management
has implemented numerous cost control measures designed to return
the Secondary Forest Products area to profitability, including some
restructuring of its collection network. We continue to be in a
good financial position with substantial cash reserves and a strong
balance sheet."
According to Dean Stull, Hauser's Chief Executive Officer, "Our
efforts to develop and market new natural ingredients is beginning
to bear fruit. Not only are our Nutraceutical products in the
market, our new patent pending NaturEnhance(TM) line was introduced
at the International Color Conference in January. It includes
ColorEnhance(TM), a line of natural colorants, and
StabilEnhance(TM), a product line for preservation of a variety of
food and non-food products containing fats and oils. Product launch
is expected in the next few months."
Hauser is a multi-product, multi-customer Company focused on the
development, manufacturing, and marketing of special products from
natural sources. The Company's market areas are Health Care
Products, Food Ingredients, Technical Services and Secondary Forest
Products.
CONTACT: Dean P. Stull, Chief Executive Officer, or William E.
Paukert, Chief Financial Officer, 303-443-4662, or email,
relationshauser.com, both of Hauser
CINCINNATI, March 14, 1996 - href="chap11.epi.html">Eagle-Picher Industries
(OTC: EPIHQ.U) today announced that for the first quarter ended
February 29, 1996, sales were $208.6 million compared with $197.6
million for the first quarter of 1995. Operating income was $13.4
million compared with $15.1 million for the same period last year.
Net income was $11.5 million or $1.04 per share for the first
quarter of 1996 compared with $13.0 million or $1.18 per share in
the first quarter of 1995. At the end of the first quarter of 1996,
the Company's cash position was $101.4 million. This compares with
a cash position of $93.3 million at the end of fiscal year 1995 and
$80.6 million at the end of the first quarter of 1995.
Thomas E. Petry, Eagle-Picher Chairman, said that, "sales and
operating income for the Automotive Group for the first quarter of
1996 were below the levels for the first quarter of 1995.
Reductions in production schedules, decreased availability of raw
materials due to weather particularly in December and January, and
continued delays in start-ups of new programs were the primary
reasons for the sharp decline in operating income for the Automotive
Group during the quarter. Eagle- Picher Industries GmbH, with
headquarters in Ohringen, Germany, and part of the Automotive Group,
however, enjoyed higher sales and income levels compared with the
first quarter of 1995. Operations in the Automotive Group
manufacture a wide range of products including molded rubber and
bonded metal-to-rubber parts, rubber coated materials, precision
engineered and machined parts, reenforced molded plastic parts, and
interior trim components.
"Results for the Industrial Group were mixed, although overall,
sales and operating income were higher than the first quarter of
1995. The Specialty Materials Division enjoyed excellent results for
the quarter. The Division manufactures germanium substrates used
for space satellite solar arrays; isotopically pure boron materials
used for a wide range of nuclear applications; unlabeled and labeled
stable and radioactive compounds for the pharmaceutical and
institutional research markets; and super clean containers used for
environmental testing. The Minerals Division, a producer of
diatomaceous earth and perlite filter aids which are primarily used
by the food and beverage industry, experienced increased sales and
operating income compared with 1995 results. Export sales of
diatomaceous earth products have become an increasingly growing
market.
"Results for virtually every operation in the Machinery Group
were ahead of those for the same period of a year earlier. The
Construction Equipment Division, which manufactures earth moving
equipment and materials handling equipment, enjoyed improved
results, although future production schedules suggest a decline in
shipments as the year progresses. The Electronics Division, a major
force in the manufacture of special purpose batteries for aerospace
and defense applications, continued its efforts to offset reductions
in the defense business by increasing its market share in the
commercial aerospace market."
The Company filed a plan of reorganization (The Plan) on
February 28, 1995 with the Bankruptcy Court in Cincinnati, Ohio.
The Plan was proposed jointly with the Injury Claimants' Committee
(ICC) and the Legal Representative for Future Claimants (RFC). The
Unsecured Creditors' Committee (UCC), which represents bond holders
and trade creditors, and the Equity Security Holders' Committee, did
not support the Plan as proposed. Both committees disputed the
amount of the Company's liability for present and future asbestos-
related personal injury claims utilized in the Plan for allocating
the distributions to the various creditor and shareholder
constituencies under the Plan. Such amount was the $1.5 billion
agreed to for settlement purposes among the Company, the ICC, and
the RFC in the fourth quarter of 1993.
During 1995 and early 1996, there were several developments
concerning the reorganization effort under chapter 11 that should be
noted:
In order to resolve the controversy as to the Company's
liability for present and future asbestos-related personal injury
claims, the Company filed a motion with the Bankruptcy Court in the
third quarter of 1995 asking the Court to estimate such liability.
In December 1995, the Bankruptcy Court rendered its decision
(the Estimation Ruling) and ruled that the Company's estimated
liability for such claims is $2,502,511,000. The UCC, the Equity
Security Holders' Committee, and two members of the UCC,
independently, appealed the Estimation Ruling.
As a result of the Estimation Ruling which established the lack
of existing shareholder equity value, in December 1995, the Company
filed a motion with the Bankruptcy Court to disband the Equity
Security Holders' Committee. The Bankruptcy Court partially granted
the motion in January 1996 by limiting ongoing activities of the
Equity Security Holders' Committee to the prosecution of its appeal
of the Estimation Ruling.
As a result of the Bankruptcy Court's Estimation Ruling, the
aggregate amount of allowed pre-petition unsecured claims to be
addressed in a plan of reorganization currently is approximately
$2.663 billion. Claims by present and future asbestos personal
injury claimants represent 94 percent of such pre-petition
liabilities and other unsecured claims in the aggregate amount of
approximately $157 million represent the balance.
In view of the Estimation Ruling, it is intended that the
Company will file an Amended Plan of Reorganization. The Amended
Plan will be filed as soon as possible.
These above developments are described in detail in the
Company's 1995 Annual Report.
Petry also indicated that, "forecasts from certain Divisions,
particularly those serving capital equipment markets, suggest that
those areas of the economy reached the top of the cycle in 1995 as
backlogs for those divisions are declining. The outlook for the
Automotive Group is uncertain. Obtaining appropriate price
increases and equitable prices for new business from our customers
continues to be extremely difficult. This places pressure on profit
margins and any decline in automotive production could adversely
affect the results of operations serving this market, particularly
domestic operations. Prospects for operations serving general
industrial markets are promising and should partially offset the
effect of any potential decline in the Automotive Group in 1996.
The Company's financial condition is strong and healthy. If an
economic slowdown occurs in 1996, Eagle-Picher is well positioned to
cope, to adjust, and to have available the resources necessary to
take advantage of new business opportunities."
The figures follow:
(Data in thousands except per share)
Three Months Ended February 29 (28) 1996 1995
Net sales $208,582 $197,603
Operating income 13,371 15,113
Other non-operating items (160) (102)
Reorganization items 68 (425)
Income before taxes 13,279 14,586
Net income 11,508 13,032
Net income per share 1.04 1.18
Average shares 11,041 11,041
VAN NUYS, Calif. -- March 14, 1996 -- The board of
directors of Helionetics Inc. (OTC Bulletin Board:ZAPP) Thursday
implemented, effective immediately, a 1-for-10 reverse stock split
authorized by shareholders at the company's annual meeting Dec. 29,
1995, reducing the number of shares issued and outstanding from 50
million to 5 million, and increasing authorized shares from 5
million to 10 million.
Bernard B. Katz, Helionetics chairman, said he believes
availability of the additional shares will make it possible for
Helionetics to propose a plan, acceptable to both the bankruptcy
court and secured and unsecured creditors, to take href="chap11.trilite.html">Tri-Lite Inc.
(ASE:NRG), a Helionetics subsidiary based in Santa Ana, Calif., out
of Chapter 11 bankruptcy and preserve Tri-Lite shareholders.
He said a cash collateral hearing is being held today in U.S.
Bankruptcy Court, Santa Ana, which Helionetics will advise Star Bank
of Cincinnati, a Tri-Lite secured creditor, that it will propose a
plan to the court and creditors within the near future.
Katz said that under the plan being constructed by Helionetics,
Tri-Lite would emerge from bankruptcy a profitable company with
revenues of about $15 million and liquid net assets sufficient to
sustain its growth and profitability.
He also said that as part of the plan Helionetics is considering
merging into Tri-Lite its AIM Energy Inc. subsidiary, which has
developed and is now marketing a proprietary technology-based system
that mitigates harmonics, a pollutant of electrical systems that may
result in fires and damage to or destruction of transformers.
With the inclusion of AIM, Katz said, Tri-Lite would emerge as a
high technology company ensuring the safety of electrical systems
and an energy conservation company through the sale of Tri-Lite's
energy-efficient lighting fixtures.
CONTACT: Paul Keil, 909/625-4707
DALLAS, March 14, 1996 - Search
Capital Group, Inc.,
which recently received confirmation of the Joint Plan of
Reorganization of its eight subsidiaries from the U.S. Bankruptcy
Court, today announced Susan A. Brown and Frederick S. Hammer will
join the company's existing board of directors.
The eight Search subsidiaries have been operating under Chapter
11 bankruptcy protection since August 1995. Search itself is not in
bankruptcy, but is a co-proponent of the subsidiaries' joint plan.
The addition of Brown and Hammer, who were nominated by the
bankruptcy subsidiaries' creditors' committee and approved by
Search's current board members, increases the number of board
members from six to eight.
Brown, who served as chief executive officer of the reorganized
First RepublicBank Corp. from 1991-94, is a principal of the Dallas-
based InterSolve Group and chairman of ICH Corp. A certified Public
Accountant, she is a graduate of Southern Methodist University and
earned an M.B.A. from the University of Texas at Austin.
Hammer is a partner of Inter-Atlantic Securities Corp., a New
York- based boutique investment banking firm which serves primarily
financial institutions. He previously served as chairman,
president, and chief executive officer of Mutual of America Capital
Management. He is also the former president of SEI's Asset
Management Group; chairman and chief executive officer of Meritor
Financial Group; and executive vice president of Chase Manhattan
Bank where he was responsible for the bank's global consumer
operations.
Hammer, who has taught finance and banking at The Wharton
School, the University of Indiana, and New York University's
Graduate School of Business Administration, is a graduate of Colgate
University and earned and M.S. and Ph.D. in economics from Carnegie-
Mellon University.
Dallas-based Search Capital Group, Inc. is a specialized
financial services company engaging in the purchase and management
of used motor vehicle receivables. Search shares are currently
being traded on the OTC Bulletin Board (SRCG.OB).
CONTACT: Chris Anderson of Stern, Nathan & Perryman, 214-373-1601,
or George C. Evans, chairman and CEO of Search Capital Group, Inc.,
214-965-6000
SEATTLE, WA -- March 14, 1996 -- Jay
Jacobs Inc.
(NASDAQ:JAYJ) today reported results for its fourth quarter and
fiscal year ended Jan. 27, 1996.
For the fourth quarter, the company reported a profit of
$261,000, or 4 cents per share, on sales of $18,625,000. This
compares to a loss of $753,000, or 13 cents per share, on sales of
$22,861,000 for the fourth quarter of the previous year. Same store
sales were equal to the same quarter last year.
For the 12 month fiscal year ended Jan. 27, 1996, the company
incurred a loss of $2,811,000, or 47 cents per share, on sales of
$72,886,000. This compares to a loss after reorganization cost for
the previous 11 month fiscal year of $13,973,000, on sales of
$90,490,000, or $2.37 per share. Comparable store sales during the
year decreased by 2%.
"We are pleased with our fourth quarter performance," said Rex
Steffey, president and CEO. "Our fourth quarter profit represents
the first quarterly profit in over three years! We look forward to
the future and a challenging 1996!"
Jay Jacobs is a Seattle-based specialty apparel retailer selling
to men and women, operating at year-end 136 stores located in 20
states. During the fourth quarter, the company opened four stores
and closed 13 stores.
Jay Jacobs Inc. and Subsidiaries
Consolidated Balance Sheet
(Dollar Amount in thousands)
(Unaudited)
Assets Jan. 27, Jan. 28,
1996 1995
Current assets:
Cash and cash equivalents $ 705 $ 8,898
Accounts receivable 442 261
Inventories 7,323 8,581
Prepaid expenses 219 158
Total current assets 8,689 17,898
Property and equipment, net 5,558 6,244
$14,247 $24,142
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 1,402 $ 2,407
Accrued payroll 529 697
Accrued reorganization liability 3,188 267
Other accrued expenses 550 741
Total current liabilities 5,669 4,112
Deferred Rental Credits 995 1,318
Accrued reorganization liability 4,362 12,718
Shareholders' equity:
Preferred stock 0 0
Common stock 12,807 12,769
Retained earnings (9,586) (6,775)
3,221 5,994
$14,247 $24,142
Jay Jacobs Inc. and Subsidiaries
Consolidated Statement of Operations
(In thousands, except per share amounts)
(Unaudited)
Three months ended 12 months ended
January January
1996 1995 1996 1995
Net sales $18,625 $22,861 $72,886
$90,490
Net operating expenses $18,364 $23,614 $75,697
$96,866
Income (loss) before
reorganization items and
income taxes 261 (753) (2,811)
(6,376)
Reorganization items 7,597
Net income (loss) $ 261 $ (753) $(2,811)
$(13,973)
Earnings (loss) per share 4 cents (13 cents) (46 cents)
($2.37)
Weighted average number of
shares outstanding 6,054 5,907 6,054 5,907
Please note:
Fiscal 1996 is for a 12 month period vs. an 11 month period for
fiscal 1995.
Fourth quarter 1996 figures are for 3 months vs. the 3 month
comparable fourth quarter figures for 1995.
SYOSSET, N.Y. -- March 14, 1996 -- Porta Systems
Corp. (ASE-PSI) announces that on March 13, 1996 it completed the
transaction with Augat Inc. (NYSE-AUG) to sell the assets
representing its fiber optic management and component business for
approximately $8,000,000 and assumption of certain liabilities.
Porta Systems' fiber optic business was conducted through Porta
Systems and a number of its subsidiaries, primarily Aster
Corporation and Aster (Ireland) Limited. During 1995, fiber optic
sales amounted to approximately $6,500,000. Porta Systems utilized
the proceeds of the sale to reduce its outstanding senior debt and
to provide working capital for the remainder of its operations.
Additionally, the Company announces the amendment and extension
of its Loan and Security agreement with Foothill Capital
Corporation, its senior lender. The term of the agreement has been
extended from November 30, 1996 to November 30, 1998. This new
agreement, among other things, provides for waivers of events of
default through the date of the agreement and provides for
additional letter of credit facilities.
As previously reported, the Company does not presently satisfy
all of the American Stock Exchange's financial guidelines for the
continued listing of its common stock. In the event that this
situation is not remedied, there can be no assurance that the
listing of its common stock will continue.
Porta Systems Corp. designs, manufactures, markets and supports
communications equipment used in telecommunications, voice, video
and data networks worldwide.
CONTACT: Mr. Edward B. Kornfeld,
Vice President - Chief Financial Officer:
Porta Systems Corp.,
(516) 364-9300
SOUTH PLAINFIELD, N.J., March 14, 1996 - href="chap11.rickel.html">Rickel Home
Centers, Inc. announced today that, as part of its plan to
improve
performance and position itself for the future, it plans to close up
to 13 additional stores under its leasehold disposition program,
which was originally announced in the Fall of 1995. Eight of the
stores will close within the next 90 days and two are expected to be
closed by July, 1996, with the balance to be announced in the near
future.
"We have been analyzing our operations with the intention of
identifying and closing underperforming, non-prototype stores," said
Jules Borshadel, Chief Executive Officer of Rickel. "The closing of
these stores will eliminate a drag of unprofitable locations on our
financial performance. Moreover, the sale of our valuable
leaseholds on several of these stores will help us fund investments
in inventories and store improvements, including the rollout of
improved store formats and departments now in prototype at certain
of our locations. Some of these closings should also drive
additional sales at nearby Rickel stores.
"While the action we announced today is a difficult one, the net
result should be a more profitable Rickel focused on a solid group
of successful and competitive stores, with the means to maintain our
position as a significant force in the Northeast do-it-yourself home
improvement marketplace," continued Mr. Borshadel.
The eight stores to be closed in the next 90 days include the
Cheltenham Avenue store in Philadelphia, PA and the Reading, PA
location, the company's three stores in Manhattan, NY, locations in
Middletown, NY and Totowa, NJ, as well as its one Maryland store
located in Hagerstown. Rickel expects to close its Menlo Park and
Elmwood Park, NJ stores during the second quarter.
The closings are subject to approval of the Delaware Bankruptcy Court.
Including the stores to be closed, Rickel currently operates 79
stores. Since late 1995, Rickel has closed 13 stores under its
leasehold disposition program.
Rickel is a full-service home improvement retailer serving the
do-it-yourself marketplace in New Jersey, Pennsylvania, New York
and Delaware.
CONTACT: Dawn Dover or Andrea Bergofin of Kekst and Company,
212-593-2655
SAN JOSE, Calif. -- March 14, 1996 -- Compression
Labs Inc. (CLI) (NASDAQ:CLIX) today announced a major restructuring
of the company aimed at maximizing stockholder value by focusing on
achieving consistent profitability and growth in the
videoconferencing market.
As part of the restructuring, the company is pursuing a number
of strategic alternatives for its Broadcast Division. Accordingly,
CLI reported a net loss from discontinued operations of $37.9
million for the fourth quarter of 1995.
Revenue from continuing operations for the fourth quarter was
$26.8 million, resulting in a net loss from continuing operations of
$17.5 million for the quarter. Results from continuing operations
compare to fourth quarter 1994 revenue and net loss of $29.3 million
and $1.0 million for continuing operations, respectively.
The company reported revenue of $113.0 million and a net loss of
$21.0 million from continuing operations for 1995, compared to 1994
revenue and net loss from continuing operations of $115.0 million
and $4.9 million, respectively.
Gary Trimm, CLI's recently appointed president and chief
executive officer, said, "We have achieved numerous technical
successes in our Broadcast Division. We have concluded that we
cannot ultimately compete as we are presently positioned in the
digital broadcast market against larger companies with greater
financial resources, end-to-end product lines, and extensive
worldwide sales reach.
"We are in discussions with a number of companies which have
expressed an interest in our Broadcast business, and we intend to
pursue a strategy that achieves the best value for our stockholders.
I want to be clear that although discussions are proceeding, no
definitive agreement with respect to any offer has been reached, and
there can be no assurance that a definitive agreement will be
entered into, or if it were, that any transaction would be
consummated."
Trimm added, "As a part of the company restructuring, we also
decided to restructure our videoconferencing division. As a result
of this decision, CLI recorded certain adjustments as of Dec. 31,
1995 to the assets that were directly impacted. These items
consisted primarily of inventories, capitalized software and
accounts receivable. This resulted in approximately $15.1 million
of incremental expenses in the fourth quarter.
"As a result of our actions, we believe CLI will be better
positioned to focus on the videoconferencing business. To
effectively capitalize on significant videoconferencing market
opportunities, we will address each aspect of our operations to
improve our efficiency and responsiveness to customer needs and
reduce our costs.
"This restructuring will result in an immediate and significant
reduction in the company's operating expense levels. Nonetheless,
we will continue to invest in research and development to enhance
our product offerings and introduce next generation technology."
Trimm summarized, "We believe that this fundamental
restructuring of CLI's business is essential to our long-term
success. Our priorities will be to establish consistent
profitability in our videoconferencing business, and to reestablish
a growth rate for CLI consistent with the growth rate of the
videoconferencing industry.
"We expect certain expenses to be recorded in the first quarter
of 1996 relating to these actions that will contribute to an overall
net loss for the company. However, we expect that these cost
reductions will have a favorable impact on net results beginning in
the second quarter of 1996."
As a result of the decision regarding the Broadcast Division,
CLI's 1995 Statement of Operations presents the results of the
Broadcast Division as discontinued operations. Prior year
statements have been reclassified to be consistent with the 1995
presentation.
Net results in previous years have not been impacted by the
revised presentation. Videoconferencing results are shown as
results from continuing operations.
Statements in this press release which are not historical facts
may be considered "forward-looking statements" regarding CLI's
business. CLI's operating results are subject to a variety of
risks. For a discussion of such risks, as well as further
information about CLI's operating results, please see "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" in CLI's most recent 10-Q.
CLI is a leading designer and manufacturer of solutions for
digital video communications. Using its core technology, compressed
digital video, the company provides a range of video communications
products for business, government, educational and healthcare
organizations.
COMPRESSION LABS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Dec. 31,
1995 1994
Revenues $ 26,755 $ 29,324
Cost of Revenues 27,372 17,936
Gross Margin (617) 11,388
Operating Expenses:
Selling, general and
administration 13,562 9,644
Research and development 3,040 2,528
------ ------
16,602 12,172
Loss from operations: (17,219) (784)
Interest income 12 18
Interest expense (278) (225)
Net Loss from continuing
operations (17,485) (991)
Discontinued operations of
Broadcast Products Division:
Income (Loss) from
discontinued operations (3,315) 1,492
Loss on disposal of
discontinued operations (34,601) ---
Net Loss from discontinued
operations (37,916) 1,492
Net Income (Loss) $ (55,401) $ 501
Net Income (Loss) Per Share:
Net Loss from continuing
operations ($1.13) ($0.07)
Net Income (Loss) from
discontinued operations ($2.45) $0.10
Net Income (Loss) Per Share ($3.58) $0.03
Weighted average common shares
and common share equivalents
outstanding 15,463 15,000
Year ended Dec. 31,
1995 1994
Revenues $ 112,979 $ 114,958
Cost of Revenues 79,359 70,904
Gross Margin 33,620 44,054
Operating Expenses:
Selling, general and
administration 43,658 38,153
Research and development 9,974 10,158
------ ------
53,632 48,311
Loss from operations (20,012) (4,257)
Interest income 114 177
Interest expense (1,142) (798)
Net Loss from continuing
operations (21,040) (4,878)
Discontinued operations of
Broadcast Products Division:
Income (Loss) from
discontinued operations (1,941) 4,985
Loss on disposal of
discontinued operations (34,601) ---
Net Income (Loss) from
discontinued operations
(36,542) 4,985
Net Income (Loss) $ (57,582) $ 107
Net Income (Loss) Per Share:
Net Loss from continuing
operations ($1.37) ($0.32)
Net Income (Loss) from
discontinued operations ($2.39) $0.33
Net Income (Loss) Per Share ($3.76) $0.01
Weighted average common shares
and common share equivalents
outstanding 15,304 15,160
COMPRESSION LABS, INC.
BALANCE SHEETS
(Audited)
Dec. 31, Dec. 31,
1995 1994
(In thousands)
ASSETS
Current Assets
Cash and cash equivalents $ 12,638 $ 11,319
Accounts receivable, less
allowance for doubtful
accounts of $10,028 in
1995, and $1,992 in 1994 46,798 54,470
Inventories 22,821 29,511
Prepaid expenses and other
current assets 1,096 2,715
Total Current Assets 83,353 98,015
Property and Equipment 37,443 40,133
Less: Accumulated depreciation
and amortization (20,171) (19,251)
Net Property and Equipment 17,272 20,882
Capitalized Software, net 3,828 11,868
Other Assets 300 886
Total Assets $104,753 $131,651
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Short-term debt $ 12,795 $ 9,803
Current portion of long-
term debt and capital
lease obligations 876 750
Accounts payable 26,169 20,040
Accrued liabilities 21,976 6,362
Deferred income 6,278 7,240
Total Current Liabilities 68,094 44,195
Long-Term Debt and Capital
Lease Obligations 985 494
Stockholders' Equity
Preferred Stock
Undesignated Preferred
Stock, $.001 par value;
4,000,000 shares authorized;
none issued and outstanding -- --
Common Stock
$.001 par value; 25,153,658
shares authorized, shares
issued and outstanding;
15,491,475 in 1995, and
14,655,745 in 1994 15 15
Additional paid-in capital 120,696 114,402
Accumulated deficit (85,037) (27,455)
Total Stockholders' Equity 35,674 86,962
Total Liabilities and
Stockholders' Equity $ 104,753 $ 131,651
CONTACT: CLI
William A. Berry, 408/922-4653
or
William Dunk Partners Inc.
William Dunk, 214/960-9611
MOORESTOWN, N.J., March 14, 1996 - href="chap11.todays.html">Today's Man, Inc.
(Nasdaq-NNM: TMANQ), operating under the protection of Chapter 11 of
the U.S. Bankruptcy Code as a Debtor-In-Possession, announced today
that it will close three underperforming locations - Staten Island,
New York, Springfield, Virginia and 81st and Broadway in Manhattan.
The three closings, which will occur on or around March 31, 1996,
are in addition to the seven Chicago locations the Company closed
shortly after filing for Chapter 11 protection.
"After reviewing the Company's performance on a store-by-store
basis, we believe that we have a core of strong locations in all
three markets. Closing these three underperforming stores, in
addition to those already closed in Chicago, allows us to focus our
turnaround efforts on our best performing stores in our three key
markets," said David Feld, President and Chief Executive Officer.
"While we continue to monitor and evaluate the performance of every
Today's Man location, we believe that the remaining 25 stores
represent a strong base for the future. We are committed to
maintaining a significant presence in the greater New York,
Philadelphia and Washington, D.C. areas."
In order to reduce the impact of the store closings on Today's
Man associates, where possible, the Company will attempt to transfer
certain employees to other area locations. The Company expects the
close proximity of additional superstores to provide its customer
base with the opportunity to continue shopping at Today's Man with
minimal inconvenience.
"Closing stores is never an easy decision, and we recognize the
difficulty that these store closings may create for our associates
and our customers," added Feld. "After careful consideration, we
determined that our strong presence in both the New York and
Washington, D.C. markets and the proximity of our other locations
will allow us to take these actions in an effort to improve the
Company's performance with the least impact on our employees and
customers."
Today's Man is a men's apparel superstore retailer offering a
wide selection of tailored clothing, furnishings, accessories and
sportswear at every day low prices. After these closings, the
Company will operate 25 locations and employ approximately 1,250
people in the greater New York , Philadelphia and Washington, D.C.
markets.
CONTACT: Michael W. Kempner or Carreen Winters of MWW/Strategic
Communications, Inc. Public Relations, 201-507-9500