DALLAS, TX -- April 15, 1996 -- Eljer Industries, Inc.
(NYSE:ELJ) today reported that the Bankruptcy Judge hearing the
Chapter 11 bankruptcy of United States
Brass Corporation, its
indirect, wholly-owned subsidiary, has approved the amended
Disclosure Statement and Plan of Reorganization filed on August 22,
1995 by U.S. Brass, Eljer Industries and Eljer Manufacturing, Inc.
(EMI).
The judge also approved the Plan of Reorganization and
Disclosure Statement filed April of 1995 by the Official
Polybutylene Claimants Committee. The judge's decision, if
implemented, would allow the competing plans to be sent to creditors
for a vote.
Eljer noted that the approved Plans are outdated, as both Plans
were filed before the tentative settlement was reached in November
1995 in connection with the $950 million settlement of the Cox and
Spencer class actions involving Shell Oil Company and Hoechst
Celanese, both suppliers of resin used in polybutylene plumbing
systems. Pursuant to the tentative settlement, Eljer Industries,
Eljer Manufacturing and U.S. Brass would make certain contributions
in exchange for which each would obtain relief from further
polybutylene liability and U.S. Brass would remain an indirect,
wholly-owned subsidiary of Eljer Industries.
Scott Arbuckle, President and CEO of Eljer Industries said: "We
are reviewing the Judge's order and will be deciding in the next few
days how to respond. While we are very pleased that he has ruled
that a plan which can provide injunctive relief for Eljer Industries
and Eljer Manufacturing may be voted on by creditors, much of the
information in both our plan and the plan submitted by the PB
Committee is outdated. Further, these plans do not reflect the
tentative settlement reached in connection with the Cox and Spencer
class actions. Since the tentative settlement was announced in
November we have been engaged in negotiations to finalize the
tentative settlement prior to filing another amended Plan of
Reorganization and Disclosure Statement that would reflect the terms
of that tentative settlement. We do not anticipate that significant
changes will be necessary to incorporate the tentative settlement
that includes the commitment by Shell and Hoechst Celanese to
contribute up to $950 million to repair Polybutylene plumbing
systems."
Eljer Industries, Inc. is a leading manufacturer and marketer of
high quality building products, including plumbing, heating and
ventilation products, for the residential and commercial
construction, remodeling and repair, and do-it-yourself markets.
CONTACT: ELJER INDUSTRIES, INC.
George W. Hanthorn
Vice President-General Counsel
(214)407-2600
or
Morgen-Walke Associates
Lynn Morgen/June Filingeri
Media contact: Stan Froelich
(212) 850-5600
Ken Pieper
(214) 663-9390
BALL GROUND, Ga., April 15, 1996 - As announced on March
29, 1996, L.A. T Sportswear, Inc. (Nasdaq: LATS) reported a net loss
for fiscal 1995 of $3.6 million or ($.86) per share, compared to pro
forma net income of $2.9 million or $.71 per share for fiscal 1994.
The Company today announced its full operating results for the
fiscal year ended December 30, 1995. For fiscal 1995, the Company
reported net sales of $124.9 million, an increase of 24.5% over net
sales of $100.4 million in 1994. Net sales increased primarily as a
result of the Company's opening three new distribution facilities in
the first quarter of fiscal 1995 and increased sales of Olympic-
related products. Operating expenses increased 61.4% to $21 million
in 1995 from $13 million in 1994 due to additional costs associated
with opening and operating new distribution facilities, expanding
existing distribution facilities, entry into additional markets and
an overall increase in the reserve for bad debts. The Company
recorded a restructuring charge of $2.1 million in 1995 as a result
of its previously announced decision in the fourth quarter of 1995
to discontinue certain product lines and to close two distribution
facilities, one sewing facility and its screen printed operations
during 1996. Income (loss) before income taxes and extraordinary
item decreased to a net loss of $5.4 million in 1995 from net income
of $5.1 million in 1994. Net income (loss) decreased to a net loss
of $3.6 million or $.86 per share in 1995 from pro forma net income
of $2.9 million or $.71 per share in 1994.
The Company announced on March 29, 1996 that it would delay
filing its Annual Report on Form 10-K while it negotiated a new
definitive credit agreement. As previously reported, at year-end,
the Company was not in compliance with certain financial covenants
under its line of credit agreement. The Company has executed a
commitment letter with a successor lender for replacement financing
and continues to negotiate the final documentation of such facility.
The Company expects to complete these negotiations by the end of
April. The Company filed its Annual Report on Form 10-K on April
12, 1996.
L.A. T Sportswear, Inc. is a major manufacturer and national
distributor of imprintable and decorable sportswear.
CONTACT: David L. Shelton, L.A. T Sportswear, Inc., 770-479-1877,
ext. 159, or Fax: 770-479-4078
NEWHALL, Calif., April 15, 1996 - Huntway Partners, L.P.,
(NYSE: HWY) is pleased to announce today that it has reached an
agreement in principle with three of its four senior lenders,
representing 86% of its senior debt, to restructure its indebtedness
over a ten-year period. Discussions are continuing with the other
senior lender to secure its agreement with the restructuring, the
Company said, but failing that, Huntway will consider alternatives,
including filing a "prepackaged" reorganization plan under the U.S.
Bankruptcy Code to implement the restructuring. The Partnership
said the holders of its junior subordinated debt also have agreed to
its proposed restructuring plan.
The restructuring, which is subject to final documentation and
unitholder approval, will reduce total indebtedness from $95.5
million at December 31, 1995 to $25.6 million effective January 1,
1996. Accordingly, upon closing, debt will be reduced by
approximately $70 million resulting in positive unitholder equity of
approximately $40 million. Under the agreement, the new debt will
carry an interest rate of 12%. The new debt will mature on December
31, 2005, and will amortize over years three through ten of the
agreement. No cash interest or principal payments are required to
be paid in 1996 under the agreement.
As consideration for the restructuring, the Partnership will
issue approximately 13.8 million new units to its lenders, including
approximately 1.1 million to its junior noteholders as part of this
transaction. The Partnership currently has approximately 11.6
million units outstanding. Additionally, the Partnership will
retire approximately 3.9 million warrants previously distributed to
its lenders. After the transaction, approximately 1.1 million of
new warrants will be outstanding at a price of $.50 a unit. The
agreement also specifies that management will be issued options for
10% of the Company on a fully-diluted basis (inclusive of options
already issued) at a strike price of $.50 a unit. Accordingly, on a
fully-diluted basis, total units outstanding will increase from 16.5
million to 29.3 million after the completion of the restructuring.
The agreement also specifies that Huntway could borrow up to an
additional $4.2 million in 1996 for plant expansion, working capital
and to finance inventory growth. Such short-term borrowings must be
fully repaid by December 31, 1996. The Partnership has been seeking
to obtain this financing.
Huntway's Executive Vice President and Chief Financial Officer,
Warren Nelson, said that, "If the Partnership is unable to obtain
the unanimous approval of its senior lenders to the consensual
restructuring plan, it will consider all alternatives available to
achieve the goals of the plan, including implementation of the plan
through the filing of a so called "prepackaged" plan of
reorganization under the U.S. Bankruptcy Code. In that regard, the
Partnership also has secured the agreement of the three of its four
senior lenders, representing 86% of its senior debt, and its junior
noteholders, to support the restructuring plan if a prepackaged plan
of reorganization is required. Under applicable law, a plan of
reorganization must be approved by the affirmative vote of 66% in
dollar amount and 50% in value of each class of security holders
which is impaired under the plan. The senior debt and the common
units will be the only classes of the Partnership's securities that
will be impaired under the prepackaged plan. If the Partnership
finds it necessary to file a prepackaged joint plan of
reorganization, it will seek the court's approval to implement the
currently proposed terms.
"Any such prepackaged plan will provide for the continuing and
timely payment in full of all of the Partnership's obligations to
suppliers, other trade creditors and employees under normal trade
terms," he added. "Accordingly, the Partnership's creditors,
suppliers and employees will be unaffected by the prepackaged plan
if it becomes required."
Commenting on the transaction, Juan Forster, President and Chief
Executive Officer, stated, "I am very pleased with the results of
the restructuring effort and the terms of agreement. As our
unitholders are aware, the Company has been working for well over a
year to achieve this reduction in indebtedness and overall interest
expense, while at the same time negotiating a facility that will be
flexible to promote growth. When completed, this transaction will
improve Huntway's balance sheet by reducing debt approximately $70
million as well as reducing annual interest expense approximately $2
million. The transaction also benefits current year cash flow by
requiring no principal or interest payments in 1996. Huntway, of
course, is hopeful that it will be able to obtain unanimous consent
to the restructuring plan from all of its senior lenders and avoid
the necessity of a prepackaged filing. Management believes that the
terms of the prepackaged plan are favorable to the Partnership's
existing common unitholders and expects that common unitholders will
also approve the prepackaged plan, if required."
Huntway Partners, L.P. owns and operates two refineries at
Wilmington and Benicia, California, which primarily processes
California crude oil to produce liquid asphalt for use in road
construction and repair, as well as smaller amounts of gas oil,
naphtha, kerosene distillate and bunker fuels. Its third refinery,
at Coolidge, Arizona, which is temporarily shut down and being
offered for sale is configured to produce a similar product slate,
as well as jet fuel and diesel fuel.
The company's common units are traded on the New York Stock
Exchange under the symbol HWY.
CONTACT: Warren J. Nelson, Executive Vice President and Chief
Financial Officer, or Earl G. Fleisher, Controller and Tax Manager,
both of Huntway Partners, L.P., 805-286-1582
MIAMI, FL - April 15, 1996 - NVF
Company filed its Annual
Report on Form 10-K for the year ended December 31, 1995 and
reported results for the year and the quarter then ended.
For the year-ended December 31, 1995 NVF reported net sales and
operating revenues of $96.9 million and a net income of $17.4
million ($.19 per share) compared with revenues of $94 million and a
net loss of $10.8 million ($.12 per share) for the comparable period
of 1994.
For the quarter ended December 31, 1995, the Company reported
net sales and operating revenues of $22.4 million and a net income
of $21.4 million ($.23 per share) compared with revenues of $23.2
million and a net loss of $9.5 million ($.10 per share) for the
comparable period of 1994. The fourth quarter was positively
impacted by a settlement with the principal shareholder taken to
other income of $23.4 million.
NVF COMPANY
Summary of Consolidated Operating Results
(in thousands except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
1995 1994 1995 1994
Net sales and operating
revenues $22,362 23,201 96,891 93,981
Income (loss)from continuing
operations (575) 889 1,165 4,616
Other income (expense) 24,185 (6,606) 23,528 (8,640)
Reorganization expenses 749 3,965 5,822 6,916
Provision (benefit) for taxes on
income 1,502 (53) 1,502 (38)
Income (loss) before equity in
net loss of affiliates 21,359 (9,629) 17,369 (10,902)
Equity in net income of
affiliates --- 89 --- 89
Net income (loss) $21,359 (9,540) 17,369 (10,813)
Income (loss)per share $0.23 (0.10) 0.19 (0.12)
BAY SHORE, N.Y., April 15, 1996 - Lumex, Inc. (AMEX:
LUM)
today reported results for the fourth quarter and year ended
December 31, 1995.
The results for both periods reflect the impact of implementing
the Company's previously announced corporate restructuring plan.
The Lumex Division was sold on April 3, 1996 and accordingly the
results of that operation are shown in the summary of operations as
a discontinued operation. As part of the restructuring, the Company
also recorded an $8.2 million pre-tax charge to selling and
administrative expense in the 1995 fourth quarter, for, among other
things, severance payments and related personnel costs of $2.3
million, costs related to discontinued products of $3.0 million,
costs related to contractual obligations of $1.3 million and other
expenses totaling $1.6 million related to the restructuring of its
CYBEX business. The Company expects the restructuring to be
substantially completed by the end of 1996.
For the fourth quarter ended December 31, 1995, net sales from
continuing operations increased 20.3% to $24,708,000 versus
comparable sales of $20,539,000 in the same quarter last year. The
net loss for the quarter from continuing operations, including the
$8.2 million pre- tax charge, was $7,703,000, or $1.76 per share
versus a comparable net loss of $30,000, or $0.01 per share, in the
fourth quarter of 1994.
For the fourth quarter, the Company recorded a net loss from
discontinued operations of $3,138,000, or $0.72 per share.
For 1995, net sales from continuing operations were $75,448,000,
an increase of 7.1% from comparable sales of $70,420,000 in 1994.
The net loss for the year from continuing operations, including the
charge, was $11,116,000, or $2.55 per share versus comparable net
income in 1994 of $992,000, or $0.23 per share.
For the year, the Company recorded a net loss from discontinued
operations of $1,788,000, or $0.41 per share.
Increased sales in 1995 were driven primarily by an 11% gain in
sales to the domestic institutional fitness market fueled by strong
orders for the VR2 strength training line and continued strong
growth of the CYBEX Plate Loaded Series. Higher sales of the new
Q45 institutional treadmill were offset by lower sales of THE BIKE
and THE SEMI as competitive pricing tactics reduced shipments.
Sales to the domestic rehabilitation market were 17% lower than 1994
due to continued consolidation in the market, the impact of national
health care reimbursement issues and continued emphasis on managed
care. International sales rose 25% as product shipments increased
significantly into both the rehabilitation and institutional fitness
market segments.
The gross margin for 1995 was slightly lower at 39.5% compared
to 40.7% in 1994, resulting from manufacturing startup costs for new
products. Selling, general and administrative expenses rose 63.2%,
due primarily to the $8.2 million restructuring charge, in addition
to one- time charges of approximately $2.0 million recorded earlier
in the year for severance and recruitment costs and settlement of a
contractual dispute. Product development expenses increased 24.4%
in 1995 due to planned increases in spending to accelerate the
development and introduction of major new products during the year,
including the VR2 product line, NORM and Q45 treadmill.
J. Raymond Elliott, President and Chief Executive Officer,
commented: "With the sale of the Lumex division behind us, our
company has entered an important new phase focused on establishing
CYBEX as a financially strong and competitive global company. The
sales growth we achieved at CYBEX during 1995 indicates we are
continuing to grow market share in the strength and fitness and
international markets, where our products command high customer
loyalty and brand recognition."
Mr. Elliott continued, "The benefits of our restructuring
program, which by year end will have eliminated more than 75 non-
direct manufacturing positions, will enable us to respond more
aggressively and efficiently to the significant growth opportunities
we've targeted in the worldwide institutional fitness market. We
will continue to view 1996 as a year of turnaround and transition in
the face of significant change in this Company."
Separately the Company announced that it will move its head
office, formerly located at LUMEX division facility in Bay Shore,
New York, to the Denver/Colorado Springs area beginning later on in
the summer. The new location, to be announced, will include the
senior finance and human resource functions, marketing, senior new
product and new business development and design/test personnel. The
Company will retain its production plants in New York, Minnesota and
Seattle, Washington as well as International operations in Japan and
Germany.
Commenting on the announcement, Mr. Elliott said, "The
relocation of our head office to Colorado is another important step
forward in our corporate restructuring as it will allow our plants
to focus their efforts solely on engineering and production. In
addition, our new product development group, which is already based
in the area, will be teamed up with the critical concept design and
marketing groups together in a single location. The move will also
establish CYBEX in the dynamic business environment of the
Denver/Colorado Springs area, which is home to a wide array of
health and fitness companies."
Lumex, Inc. is a leading manufacturer of biomechanically-correct
strength and fitness and isokinetic testing and rehabilitation
equipment serving the physical therapy/sports medicine and fitness
market segments worldwide through direct U.S. sales and an
international distribution network.
LUMEX, INC.
CONSOLIDATED SUMMARY OF OPERATIONS
(in thousands, except per share data)
Three Months Ended % Increase
December 31 (Decrease)
1995 1994
Net sales $24,708 $20,539 20.3
Cost of sales 15,416 13,461 14.5
Selling and administrative
expenses 17,112 5,877 191.2
Product development expenses 1,342 1,295 3.6
Interest 589 385 53.0
Other income (principally interest
income) (606) (445) 36.2
(Loss) income from continuing
operations before income
tax (benefit) provision (9,145) (34)
Income tax (benefit) provision (1,442) (4)
(Loss) income from continuing
operations (7,703) (30)
Discontinued operations:
Income from discontinued
operations, net -- 596
Loss on disposal, net (3,138) --
Net (loss) income ($10,841) $566
Net (Loss) Income Per Share
Continuing operations ($1.76) ($0.01)
Discontinued operations ( 0.72) 0.14
Net (loss) income ($2.48) ($0.13)
Average Shares 4,389 4,338
LUMEX, INC.
CONSOLIDATED SUMMARY OF OPERATIONS, con't.
(in thousands, except per share data)
Twelve Months Ended % Increase
December 31 (Decrease)
1995 1994
Net sales $75,448 $70,420 7.1
Cost of sales 45,624 41,757 9.3
Selling and administrative
expenses 39,767 24,373 63.2
Product development expenses 5,058 4,065 24.4
Interest 1,723 1,143 50.7
Other income (principally
interest income) (2,264) (2,046) 10.7
(Loss) income from continuing
operations before income tax
(benefit) provision (14,460) 1,128
Income tax (benefit) provision (3,344) 136
(Loss) income from continuing
operations (11,116) 992
Discontinued operations
Income from discontinued
operations,net 1,350 2,490
Loss on disposal, net (3,138) --
Net (loss) income (12,904) 3,482
Net (Loss) Income Per Share
Continuing operations ($2.55) $0.23
Discontinued operations (0.41) 0.58
Net (loss) income ($2.96) $0.81
Average Shares 4,351 4,315
LUMEX, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(Thousands of Dollars)
December 31, December 31,
1995 1994
ASSETS
Cash and investments $ 4,274 $ 14,514
Accounts receivable 22,482 28,854
Inventories 12,024 14,962
Lease receivables 574 1,801
Net assets of discontinued
operations 37,214 - 0 -
Other current assets 5,466 3,566
Total Current Assets 82,034 63,697
Property, plant and equipment, net 13,291 20,067
Lease receivables 1,402 7,234
Intangible assets 1,687 2,577
Other assets 504 593
Total Assets $98,918 $94,168
LIABILITIES AND STOCKHOLDERS' EQUITY
Short-term borrowings $ 15,250 $ - 0 -
Accounts payable 10,874 11,379
Other current liabilities 28,218 15,160
Total Current Liabilities 54,342 26,539
Deferred income taxes 1,227 2,221
Long-term debt 2,715 12,771
Stockholders' Equity 40,634 52,637
Total Liabilities and
Stockholders' Equity $98,918 $94,168