SAN DIEGO, CA -- May 2, 1996 -- Personal Computer
Products Inc. (NASDAQ:PCPI), a leading developer of laser printer
technology and distributor of value-added accessory products,
Thursday reported record quarterly engineering fees as the result of
efforts to adapt the company's software products to the hardware
controllers of its OEM customers.
During the three months ended March 31, 1996, the company
recognized approximately $931,000 in engineering fees, compared with
$406,000 for the three-month period ended March 31, 1995, an
increase of 129%. For the nine-month periods ended March 31, 1996,
and 1995, the company recognized NRE fees of approximately
$1,444,000 and $716,000, respectively, an increase of 102%.
In addition, the company recorded $160,000 of "new-technology"
based royalties as the result of the initial shipments of a product
that the company developed for Matsushita Electric Co. Ltd.
(Panasonic).
"PCPI has been involved in a major transition in its strategic
direction over the past several years," said Edward W. Savarese,
president and chief executive officer.
"Our emphasis on sales of printer controller technology,
including Adobe PostScript(r) Level 2 software and multi-function
laser printer controller technology, has grown significantly.
Current contracts are now covering our engineering costs and
overhead. Absent the one-time, non-cash restructuring charge, this
quarter represents a return to profitability."
During the quarter ended March 31, 1996, the company reassessed
its ability to market certain "old-technology" product lines. As a
result, the company took a one-time, non-cash write-down of
$2,058,000 ($0.11 per share) against capitalized software, prepaid
licenses and royalties, inventories and certain pre-paid assets.
"Since becoming chairman of PCPI in December 1995, I am
extremely pleased with the progress we have made. Our change in
strategy and focus appears to be bearing fruit. I look forward to
continuing to work with the company in solidifying its business
relationships with major OEM customers in Japan and throughout the
world and helping to ensure that we have the financial resources to
support them," said Harry J. Saal, chairman of PCPI.
PCPI reported consolidated revenues of $2,814,000 for the
quarter ended March 31, 1996, compared with $3,548,000 for the
quarter ended March 31, 1995. The decline in revenues reflects the
strategic shift from lower margin "old-technology" products to
higher margin "new-technology" products.
PCPI reported a net loss for the third quarter (after taxes, and
extraordinary item) of $2,017,000 which includes the one-time
restructuring charge of $2,058,000. The company reported a net loss
of $70,000 for the quarter ended March 31, 1995.
The company reported consolidated revenues of $8,044,000 for the
nine months ended March 31, 1996, compared with $10,658,000 for the
nine months ended March 31, 1995. PCPI reported a net loss (after
taxes and extraordinary item) for the nine-month period ended March
31, 1996, of $3,757,000 vs. a net loss of $1,548,000 in the nine
months ended March 31, 1995.
PCPI reported a primary loss per common share of $0.11 for the
third quarter and $0.21 for the nine-month period ended March 31,
1996.
CONTACT: Personal Computer Products Inc., San Diego
Edward W. Savarese or Ralph R. Barry, 619/485-8411
IRVINE, Calif. -- May 2, 1996 -- AST Research Inc.
(NASDAQ:ASTA) Thursday announced revenues of $530.0 million for the
first quarter of fiscal year 1996, ended March 30.
This compares with revenues of $670.2 million reported during
the comparable prior year period.
The company reported a net loss of $115.8 million, or net loss
per share of $2.59, compared to a net loss of $6.5 million and net
loss per share of 20 cents reported during the prior year period.
AST also announced plans to restructure its worldwide
operations, which will involve organizing the Americas, Europe and
Asia Pacific regional operating groups into separate entities, each
with distinct goals and objectives. The company is also
consolidating some operations, including the closing of certain
regional offices.
In addition, the plan will ultimately result in a smaller,
centralized corporate operation at the company's Irvine
headquarters. This is expected to result in a restructuring charge
during the second quarter of approximately $10 million - 15 million,
the amount of which will be determined within the current fiscal
period.
This restructuring activity will result in a layoff of
approximately 300 full-time, temporary and contract workers
worldwide over the next few months. The current plan provides that
most sales, service and product development resources will not be
impacted.
The planned workforce reductions will occur throughout other
areas of the company's global organization, including corporate,
manufacturing and the operating regions. These actions, when
combined with previously announced layoffs related primarily to
manufacturing realignments in the Far East, will reduce the current
worldwide workforce by approximately 1,000 employees.
In a separate release, AST announced that Joseph E. Norberg will
join the company as senior vice president and chief financial
officer beginning May 6. He joins AST following tenures with Hill,
Holliday, Connors, Cosmopulos Inc., a Boston-based advertising
agency, and Wang Laboratories.
"While the first quarter revenues and losses were worse than
expected, the company's focus on asset management has continued,
resulting in the highest inventory turn levels in AST's history,"
said Ian Diery, AST president and chief executive officer.
"Lower sales were caused by excess competitor inventory in the
channel, reduced industry demand for PCs during the first two months
of the quarter and greater pricing pressures than initially
anticipated. Although the company's product development cycle has
improved, product development issues also contributed to the lower-
than-expected results.
"AST's restructuring activities are designed to provide greater
focus and accountability within the Americas, Europe and the Asia
Pacific regions; further reduce costs; and enhance our progress in
returning to a market share growth position.
"As the PC industry becomes more competitive, AST has been
forced to adjust the size of its worldwide staff in order to hasten
our return to profitability. While we regret the need to take these
actions, I believe they are both necessary and important in
improving the company's long-term outlook."
"We strongly support the intense efforts AST is making towards
its turnaround plan and maintain our full confidence in the
abilities of the company's worldwide management team," said Won S.
Yang, Samsung Electronics senior executive managing director and an
AST board member.
"We believe these actions, together with the company's new
product development capabilities, aggressive pricing strategy and
strengthened service and support operations will quickly distinguish
AST from its competitors. Samsung will continue to work closely
with AST's management to achieve the turnaround."
"Prior to implementing the product transitions which are now
occurring within the Bravo business desktop and Ascentia mobile
system families, aggressive pricing actions were required during the
first quarter to reduce channel inventories of older products," said
Diery. "Moving forward with the support and assistance of Samsung
Electronics, we will continue our highly-proactive efforts to gain
market share and return to profitability."
Worldwide revenues for the first quarter included sales of
$520.0 million, in addition to $10 million received from Samsung
related to Strategic Consulting and Server Technology Transfer
agreements.
Worldwide sales represented a 22 percent decrease from the prior
year period. Sales of $260.5 million in the Americas and $259.5 in
international regions declined 25 and 20 percent, respectively,
compared to the prior year's quarter.
During the quarter, the company shipped approximately 300,000
units, comprised of 270,000 desktops and 30,000 notebooks.
Shipments of Pentium(r) and Pentium(r) Pro systems, including
desktops and notebooks, represented 93 percent of all units shipped.
Balance Sheet Summary
During the first quarter, AST continued to focus on improving
its balance sheet and maintaining prudent inventory management.
At March 30, 1996, total cash and cash equivalents were $126.9
million, with $85.0 million in short-term borrowings. Total net
inventory was $190.4 million, down from $252.3 million at Dec. 30,
1995 and represented inventory turns of 11.5. Accounts receivable
totaled $398.3 million, which represented 68 days sales outstanding.
During the quarter, AST increased its one-year revolving credit
facility from $100 million to $200 million, which is fully available
to the company for its working capital needs and is guaranteed by
Samsung Electronics Co. Ltd.
First Quarter Summary
During the quarter, AST revised its business strategy to focus
on being first to bring aggressively-priced, leading-edge PC
technologies to market within the indirect sales channel in order to
gain a competitive advantage over direct manufacturers like Dell and
Gateway 2000, as well as traditional channel suppliers including
Compaq, IBM and Hewlett-Packard.
To support this goal and to become the most reliable supplier to
computer resellers, AST is focused on maintaining short and flexible
supply lines. The company also made significant improvements to its
domestic service and support operations, which resulted in faster
deliveries of spare parts and reduced wait times on its toll-free
telephone support lines.
To manifest its first to market strategy and commitment to short
and flexible supply lines, AST has leveraged the strengths of its
strategic relationships with Intel Corp., Samsung Electronics and
other manufacturers.
The company has significantly increased its use of PC system
motherboards from Intel enabling AST to quickly deliver systems to
customers featuring the latest Pentium(r) processors and Pentium(r)
Pro processors.
AST demonstrated progress with its revised business strategy
during the quarter by being first to begin deliveries of several PC
technologies to computer resellers, including:
"Resellers worldwide have expressed strong support and
extraordinary enthusiasm for our new business strategy," stated
Diery. "During the quarter, many of our indirect channel partners
have begun to lay plans and implement activities to proactively
promote our notebook and desktop products using their own marketing
resources. These efforts, along with our own aggressive marketing
activities, should help provide additional impetus for achieving
positive momentum."
To create excitement and enhance awareness for the company's new
products above and beyond reseller's efforts, AST launched a
comprehensive marketing campaign during the quarter that combines
advertising, public relations and direct mail components, as well as
new enhancements for its Internet Worldwide Web site, now on-line.
The multi-million dollar campaign represents the most aggressive
efforts in the company's history and is expected to play a key role
in AST's efforts to return to profitability and a market share
growth position.
Forward-Looking Statements
Statements contained in this press release which are not
historical information are forward-looking statements as defined
within the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are subject to risks and uncertainties
which could cause results to differ materially from those projected.
Such potential risks and uncertainties include, but are not
limited to: the level of competitive pricing pressures in the
computer industry; the company's ability to continue to develop,
produce and deliver new products that incorporate leading-edge PC
technologies on a timely basis, that are competitively priced and
achieve significant market acceptance; the effect of any continued
losses on the company's supplier and customer relationships; and its
ability to fund continuing operations.
Additional factors which could affect the company's financial
results are included in the company's report on Form 10-K for
Transition Period 1995 which is filed with the Securities and
Exchange Commission.
Corporate Background
AST Research Inc., a member of the Fortune 500 list of America's
largest industrial and service companies, is one of the world's
leading personal computer manufacturers. The company develops a
broad spectrum of desktop, mobile and server PC products that are
sold in more than 100 countries worldwide.
AST systems meet a wide range of customer needs, ranging from
corporate business applications to advanced home and home office
use. Corporate headquarters is located at 16215 Alton Parkway, P.O.
Box 57005, Irvine, Calif. 92619-7005. Telephone 714/727-4141 or
800/ 876-4278. Fax: 714/727-9355. Information about AST and its
products can be found on the World Wide Web at http://www.ast.com.
AST(r), Advantage!(r), Ascentia and Bravo are
trademarks of AST Research Inc. Intel and Pentium are registered
trademarks, and Pentium Pro is a trademark of Intel Corp. Windows
is a registered trademark and Windows NT is a trademark of Microsoft
Corp.
AST Research Inc.
Condensed Consolidated Balance Sheets
(In thousands)
March 30, Dec. 30,
1996 1995
(Unaudited)
Assets:
Cash and cash equivalents $126,857 $125,387
Accounts receivable, net 398,305 392,598
Inventories 190,414 252,339
Other current assets 59,386 67,297
Total current assets 774,962 837,621
Property and equipment, net 97,821 98,725
Other assets 110,983 119,696
Total assets $983,766 $1,056,042
Liabilities and shareholders' equity:
Current liabilities $657,822 $614,075
Long-term debt 125,493 125,540
Other non-current liabilities 5,293 5,545
Total liabilities $788,608 $745,160
Common stock and additional capital 415,218 415,182
Retained earnings (220,060) (104,300)
Total shareholders' equity 195,158 310,882
Total liabilities
and shareholders' equity $983,766 $1,056,042
AST Research Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
Quarter Ended
(Unaudited)
March 30, April 1,
1996 1995
Net sales $519,972 $670,176
Revenue from related party 10,000 ---
Total revenue 529,972 670,176
Cost of sales 549,618 583,234
Gross profit (loss) (19,646) 86,942
Selling, general and administrative 76,983 80,939
Engineering and development 10,514 9,016
Operating loss (107,143) (3,013)
Financing and other income
(expense), net (8,617) (5,121)
Loss before taxes (115,760) (8,134)
Benefit for taxes --- (1,586)
Net loss $(115,760) $(6,548)
Net loss per share $(2.59) $(0.20)
Shares used in computing
net loss per share 44,682 32,376
AST Research Inc.
Computation of Net Loss per Share
(In thousands, except per-share amounts)
Quarter Ended
(Unaudited)
March 30, April 1,
1996 1995
Shares used in computing primary
loss per share:
Weighted average shares of
common stock outstanding 44,682 32,376
Effect of stock options treated as
common stock equivalents under
the treasury stock method -- --
Weighted average common and common
equivalent shares outstanding 44,682 32,376
Net loss $(115,760) $
(6,548)
Net loss per share - primary (a) $ (2.59) $
(0.20)
CONTACT: AST Research -
Emory Epperson (media), 714/727-7958 -
Misty Ohmart (analysts), 714/727-7728
SANTA ANA, Calif. -- May 2, 1996 -- Helionetics
Inc. (OTC BB:HLXC), Van Nuys, Calif., Thursday said its majority-
owned subsidiary Tri-Lite Inc.,
presently in Chapter 11 bankruptcy
proceedings, has reached an agreement with its secured creditor,
Star Bank, Cincinnati, and expects to submit a plan of
reorganization to the U.S. Bankruptcy Court, Santa Ana, this
calendar quarter.
Helionetics also said Tri-Lite expects to emerge from bankruptcy
in the third calendar quarter as a "profitable, viable high-
technology company in the energy-management business with positive
cash flow." Tri-Lite sales are currently running at an annualized
rate of $12 million.
Tri-Lite, which was delisted from the American Stock Exchange
subsequent to filing for bankruptcy Feb. 26, 1996, said it plans to
file its annual report on Form 10K to the Securities and Exchange
Commission in the near future and will apply at that time for
listing on NASDAQ's Bulletin Board.
Tri-Lite President A. Alvin Katz said Star Bank had agreed to a
monthly payback of the approximate $1.7 million owed to it by Tri-
Lite with the final payment due on Dec. 15, 1996. Helionetics
and/or its principal shareholder, Susan Barnes, have agreed to make
up any shortfall in the monthly payments.
Also, as part of the agreement, the bank's cash collateral has
been released to Tri-Lite as operational capital.
Helionetics Chairman Bernard B. Katz said that as part of the
reorganization, Helionetics plans to contribute to Tri-Lite a
Helionetics subsidiary, AIM Energy Inc., which has developed and
completed the beta-testing of an electronic filter that mitigates
harmonics, a pollutant of electrical systems.
Excessive harmonics, potentially the cause of fires and the
cause of damage to electrical systems, is an increasingly major
problem throughout the world.
Bernard Katz said the underlying motive from the outset was to
preserve Tri-Lite's shareholder base. He said "that end is nearing
accomplishment."
CONTACT: Tri-Lite Inc. -
A. Alvin Katz, 800/421-6102 -
or -
Paul Keil/Andy Malone, 714/366-5803
ENFIELD, Conn. -- May 2, 1996 -- Dairy Mart
Convenience Stores Inc., (NASDAQ: DMCVA & DMCVB) announced financial
results for its fiscal 1996 fourth quarter and full year, which
ended Feb. 3, 1996.
Excluding nonrecurring charges, the company turned around the
prior year's pre-tax operating loss of $3.3 million to a pre-tax
operating profit of $3.0 million for fiscal 1996.
Largely because of management's ongoing effort to weed-out
underperforming convenience stores and because of the closing and
sale of the company's dairy manufacturing and distribution
operations, the company's revenues for fiscal 1996 decreased 4.3
percent to $571.3 million from $596.8 million for the prior year.
Convenience store revenues declined 3.9 percent in fiscal 1996
because the company closed or sold 92 underperforming stores during
the year. Average sales per store, however, were 5.4 percent higher
for fiscal 1996 than they were for fiscal 1995, and average gross
profit per store was up 9.6 percent. Gasoline revenues increased
7.6 percent because of an increase in price and in gallons sold. On
a per location basis, average gasoline gallonage sold increased 11.4
percent reflecting the opening of eight new higher-volume locations
and the closing of 38 lower-volume locations.
The company incurred $12.2 million in nonrecurring charges in
fiscal 1996. These charges included $9.0 million in legal and
professional fees and other costs and expenses associated primarily
with corporate govepnance issues, including the purchase of a former
majority stockholder's interests in the company, $2.2 million in
additional costs associated with the previously announced closing of
certain retail convenience stores and gasoline facilities, and $1.0
million for the writedown of a non-operating office and plant
facility to net realizable value in conjunction with the anticipated
sale of this property. For fiscal 1995, total nonrecurring charges
were $14.0 million.
"When we factor out these nonrecurring charges, I am extremely
pleased that the company has achieved a $6.3 million turnaround in
operating profitability," said Robert B. Stein Jr., Dairy Mart's
chairman, president, and chief executive officer.
The company's net loss of $6.0 million, or $1.12 per share, for
fiscal 1996 compared favorably with the net loss of $11.2 million,
or $2.01 per share, for fiscal 1995. The cumulative effect of an
accounting change increased the prior year's net loss by $0.07 per
share.
For the fourth quarter of fiscal 1996, revenues increased 4.7
percent to $143.1 million from $136.7 million in the prior year's
comparable quarter primarily because of increased gasoline revenues,
due again to an increase in both price and gallons sold.
Convenience store revenues were relatively flat in the fourth
quarter, but average sales per store were 5.6 percent higher.
On a pre-tax basis, exclusive of nonrecurring charges, the
company's fourth quarter operating loss was $2.2 million in fiscal
1996 as compared to $2.1 million in fiscal 1995. The fourth
quarter, which typically has been a seasonably slow quarter, was
further impacted by severe winter weather in many of the company's
operating areas, reduced gasoline gross margins in comparison to the
prior year fourth quarter margins and because of higher interest
expense. The company's fourth quarter net loss of $7.5 million, or
$1.57 per share, in fiscal 1996, was slightly less than the fourth
quarter net loss of $7.6 million, or $1.38 per share, in the prior
year. The net loss per share increased because of a 14 percent
decrease in the average number of shares outstanding.
As previously announced, in the fourth quarter of fiscal 1996
the company paid $10.0 million to purchase the total interests of
Dairy Mart founder Charles Nirenberg and certain of his affiliates
in DM Associates Limited Partnership, which holds a majority of the
company's Class B common stock. Included in nonrecurring charges
are costs and expenses for certain other matters, among which are
Nirenberg's waiver of certain claims against the company, his
execution of a non-compete agreement and his reimbursement for fees
and expenses incurred in connection with activities relating to
Dairy Mart.
"Dairy Mart's management team is now focused entirely on
achieving profitable growth of the company's retail convenience
store business," commented Stein. "The cost of narrowing this
focus and aligning management's efforts toward this goal was
substantial and necessary, but the company is now in the best
position its been in years to build value for the benefit of its
employees and shareholders in the years ahead. We are thinking
strategically and will continue to take advantage of opportunities
to enhance our position in the industry as we move forward."
"Our multi-year business plan calls for divesting additional
noncore assets, reducing administrative overhead further, closing
more unprofitable stores, strengthening the balance sheet through
improved earnings and committing $100 million of internally
generated funds to asset improvement programs," Stein said. "Given
how the plan has progressed so far, we think that cash flow from
operations and the sale of certain assets will be sufficient to
provide us with the liquidity and capital necessary to achieve our
goals for improving and expanding our profitable retail operations."
"We spent $20.2 million in total capital expenditures in fiscal
1996," Stein continued. "These expenditures primarily related to
store and gasoline equipment for new store locations, remodeling
some of our existing stores, introducing certain branded fast food
concepts in a number of stores, and upgrading certain gasoline
locations to install credit card readers at the pumps, to improve
outdoor lighting, and to meet current environmental standards.
These improvements will provide our customers with high-quality
facilities as Dairy Mart evolves and strengthens its reputation as
the preferred store in its marketing areas."
"We expect fiscal 1997 to be a year during which we continue to
build for the future," Stein added. "The severe winter weather this
year, combined with relatively soft gasoline gross margins, may dull
our first-quarter financial comparisons, but as we follow our
business plan and continue our efforts and establish a sustainable
trend of improving operating and financial results, we view the
current year with optimism."
Dairy Mart, with its corporate offices in Enfield, Conn., is one
of the nation's leading convenience store chains. It operates in 11
states with approximately 900 stores, 375 of which sell gasoline.
DAIRY MART CONVENIENCE STORES INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(Unaudited)
(in thousands, except per share amounts)
For the fourth fiscal For the fiscal
quarter ended year ended
Feb. 3, Jan. 28, Feb. 3, Jan. 28,
1996 1995 1996 1995
Revenues $143,117 $136,647 $571,311 $596,782
Cost of goods sold and
expenses:
Cost of goods sold 103,899 99,177 413,548 439,757
Operating and
administrative
expenses 38,743 37,296 145,122 151,125
Interest expense 2,679 2,224 9,661 9,219
Nonrecurring charges 9,750 10,047 12,200 14,000
------ ------- ------- -------
155,071 148,744 580,531 614,101
Income (loss) before
income taxes and
cumulative effect
of accounting change (11,954) (12,097) (9,220) (17,319)
Benefit from income
taxes 4,451 4,448 3,220 6,558
Income (loss) before
cumulative effect of
accounting change (7,503) (7,649) (6,000) (10,761)
Cumulative effect of
accounting change
(net of income tax
benefit of $271) -- -- -- (389)
Net Income (loss) $(7,503) $(7,649) $(6,000) $(11,150)
Weighted average number
of shares 4,772 5,551 5,374 5,541
Earnings (loss) per
share:
Before cumulative
effect of
accounting change $(1.57) $(1.38) $(1.12) $(1.94)
Cumulative effect of
accounting change -- -- -- (0.07)
Earnings (loss) per
share $(1.57) $(1.38) $(1.12) $(2.01)
Detail of Nonrecurring Charges
For the fourth fiscal For the fiscal
quarter ended year ended
Feb. 3, Jan. 28, Feb. 3, Jan. 28,
1996 1995 1996 1995
Cost and expenses related
to settlement agreement
with stockholder $5,542 $ -- $6,487 $ --
Costs to divest of diary
manufacturing and
distribution operations 548 2,500 1,313 2,500
Administrative severance,
settlement and related
costs 1,211 250 1,211 2,800
Regulatory and administrative
fees and expenses 1,287 931 1,287 1,216
Writedown of non-operating
properties to net
realizable value 1,000 2,984 1,000 3,584
Costs of store closings and
restructuring 162 3,382 902 3,900
Total nonrecurring charges 9,750 10,047 12,200 14,000
NEW YORK -- May 2, 1996 -- The following Notice is
issued by the law firm of Wechsler Harwood Halebian & Feffer LLP
(212-935-7400) on behalf of their clients who have commenced a
lawsuit on behalf of purchasers of certain securities of href="chap11.bennett.html">Bennett
Funding Group, Inc. ("Funding") and Bennett Funding
International,
Ltd. ("International"). Funding, which has filed for protection
under Chapter 11 of the United States bankruptcy laws, finances
companies seeking to fund office equipment; International finances
timeshares and related transactions.
On April 24, 1996, a class action, entitled Spencer, et al. vs.
Bennett, et al., 96 Civ. 2989 was filed in the United States
District Court for the Southern District of New York. The action is
against International; certain companies affiliated with Funding and
International; Patrick R. Bennett; Michael Bennett; Edmund Bennett;
Kathleen Bennett; Mahoney Cohen and Company, P.C.; and Jameson,
Dewitt and Associates, Inc. The Class asserted in the action is
purchasers of securities of International and certain securities of
Funding during the period commencing April 28, 1993 and ending April
1, 1996.
The Complaint alleges that the class on whose behalf this action
is brought was damaged by the defendants because the sales of
Funding and International were part of a massive Ponzi scheme. The
lawsuit alleges that the defendants were able to effectuate their
Ponzi scheme by assigning to investors payments on equipment leases
which either did not exist or had previously been sold to other
investors. It is also alleged that as new investors purchased
assignments, the proceeds of their investments were used to pay
longer-term investors. The Complaint further charges that to induce
new members of the public to invest in Funding and International,
defendants caused false and misleading financial information to be
distributed to the proposed class.
The Complaint brings claims under both the federal securities
laws and state statutory and common law. The Complaint seeks
damages and equitable relief for all members of the proposed class.
If you purchased Funding assignments of leases or notes
supposedly secured by leases or securities of International between
April 28, 1993 and April 1, 1996, you are a member of the proposed
Class. If you purchased such securities during that period, you may
move the Court within 60 days of the publication of notice to serve
as lead counsel for the security holders. In order to serve as lead
plaintiff, you must meet certain legal standards.
Attorneys at plaintiffs' law firm in this action -- Wechsler
Harwood Halebian & Feffer LLP -- have litigated securities actions
for decades before many state courts, most of the United States
Circuit Courts of Appeals, and the United States Supreme Court. In
addition, members of the firm have extensive experience in many
commercial areas of the law, including securities, corporate,
complex business transactions, as well as various aspects of
consumer protection.
If you have any questions about this Notice or the Action, or on
your rights, please contact Robert I. Harwood or Jeffrey M. Haber at
the firm's office, 805 Third Avenue, New York, New York 10022
(Telephone No. 212-935-7400).
CONTACT: Robert I. Harwood or Jeffrey M. Haber;
805 Third Avenue, New York, New York 10022;
212-935-7400
NORTH READING, Mass. -- May 2, 1996 -- Converse
Inc. (NYSE:CVE) today announced financial results for the first
quarter ended March 30, 1996.
Revenues for the first quarter were $86.6 million compared to
$131.2 million in the same period of 1995. Earnings from operations
were $239,000 versus $17.1 million in the comparable quarter of last
year. The net loss was $3.3 million or $0.20 per share compared to
net income of $8.5 million or $0.51 per share in the first quarter
of 1995.
Financial performance for the quarter reflects declines of 35.5%
in U.S. sales and 32.4% in international sales. As reported in the
1995 year end financial results, net sales for the period are
reflective of the open order backlog as of December 30, 1995, which
was approximately 24% lower than the backlog at December 31, 1994.
The Company continued to recognize strong gains in its children's
category during the period which were offset by declines in
athleisure, basketball and cross-training sales.
The Company achieved a 17% reduction in its selling, general and
administrative expenses during the first quarter as a result of its
restructuring plan announced last November.
Converse's backlog of firm customer orders decreased to $149.3
million at March 30, 1996 from $157.1 million at April 1, 1995. The
Company also stated that the order response to its back-to-school
and holiday product lines are up 19% over 1995.
Mickey Bell, President, commented, "Certainly we faced a
difficult quarter but we are pleased to report that Converse is
recognizing the benefits of our strategic restructuring plan. In
the first quarter alone, we have significantly decreased our SG&A
expenses due to strict cost controls. Also, our new All Star 2000
shoe is demonstrating solid performance and generating momentum for
the Converse brand. We will roll out an expanded All Star
collection beginning with follow-up introductions during the holiday
selling season and the All Star brand strategy will encompass the
cross-training and children's categories by spring 1997."
Glenn Rupp, Chairman and Chief Executive Officer, stated,
"Looking ahead we are taking steps to better position Converse
within an increasingly challenging retail environment. We are
placing a strong emphasis on product design and development, while
also continuing to closely manage our costs."
Converse Inc., the largest U.S. manufacturer of athletic shoes,
is a leading designer, manufacturer and marketer of high quality
athletic and leisure footwear and is a licensor of sports apparel
and accessories that are distributed worldwide through over 9,000
athletic specialty, sporting goods, department and shoe stores.
Any statements set forth above which are not historical facts
are forward looking statements that involve certain risks and
uncertainties that could cause actual results to differ materially
from those in the forward looking statements. Potential risks and
uncertainties include such factors as the financial strength and
competitive pricing environment of the footwear and apparel
industry, product demand, market acceptance, the success of planned
advertising, marketing and promotional campaigns, and other risks
identified in documents filed by the Company with the Securities and
Exchange Commission.
CONVERSE INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended
April 1, 1995 March 30, 1996
Net sales $131,196 $ 86,551
Cost of sales 85,527 64,934
Gross profit 45,669 21,617
Selling, general and administrative
expenses 31,888 26,306
Royalty income 3,303 4,928
Earnings from operations 17,084 239
Interest expense 2,951 3,837
Other (income) expense, net 68 877
Earnings (loss) before income tax 14,065 (4,475)
Income tax expense (benefit) 5,556 (1,215)
Net earnings (loss) $ 8,509 $ (3,260)
Net earnings (loss) per share $ 0.51 $ (0.20)
Weighted average number of common
shares 16,692 16,692
CONVERSE INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share amounts)
(Unaudited)
December 30 March 30,
1995 1996
Assets
Current assets:
Cash and cash equivalents $ 2,738 $ 2,276
Restricted cash 443 448
Receivables, less allowances or
$2,237 and $1,614 respectively 61,688 77,402
Inventories 81,903 81,682
Refundable income taxes 11,377 --
Prepaid expense and other current
assets 21,059 23,070
Total current assets 179,208 184,878
Assets held for sale 3,066 3,066
Net property, plant and equipment 15,521 16,125
Other assets 26,712 26,141
$224,507 $230,210
Liabilities and Stockholders' Equity
Current liabilities:
Short term debt 13,906 14,957
Current maturities of long-term debt 6,324 5,322
Accounts payable 34,208 40,257
Accrued expenses 33,295 30,583
Income taxes payable 1,795 2,705
Total current liabilities 89,528 93,824
Long-term debt, less current maturities 112,824 118,098
Current assets in excess of reorganization
value 34,454 33,935
Deferred postretirement benefits other
than pensions 10,386 10,315
Stockholders' equity (deficiency):
Common stock, $1.00 stated value,
50,000,000 shares authorized,
16,692,156 shares issued and
outstanding at December 30, 1995
and March 30, 1996 16,692 16,692
Preferred stock, no par value,
authorized 10,000,000 shares,
none issued and outstanding -- --
Additional paid in capital 3,528 3,528
Retained earnings (deficit) (41,830) (45,090)
Foreign currency translation adjustment (1,075) (1,092)
Total stockholders' equity (deficiency) (22,685) (25,962)
$224,507 $230,210
CONTACT: Converse Inc.
Investor Contact: Donald J. Camacho
Chief Financial Officer
508/664-1100
Media Contact: Jennifer Murray
Director of Corporate Communications
508/664-1100
or
Morgen-Walke Associates
Investor Contact: Christine DiSanto/Caroline Babbitt
212/850-5600
Media Contact: Stacy Berns
212/850-5600
CHICAGO -- May 2, 1996 -- Richard Berger, chairman
and CEO of Classics International Entertainment Inc. (CIE)
(NASDAQ:CIEI) announced that its wholly owned subsidiary, Dream
Factory Inc., filed a petition Thursday for relief under Chapter 7
of the Bankruptcy Code in the United States Bankruptcy Court for the
Northern District of Illinois -- Eastern Division.
"This action will allow us to focus our energies on the
strategic alliances being formulated under the Moondog's comic
book/pop culture concept, as well as further development and
licensing of the Classics Illustrated properties," said Berger. "It
will also alleviate much of the cash pressures facing the company,
and improve CIE's consolidated balance sheet."
Classics International Entertainment Inc., headquartered in
Chicago, is also the parent company of Moondog's Inc., a chain of
comic book and pop culture stores and departments, and First
Classics Inc., a licenser of the Classics Illustrated library of
graphic novels, titles and characters. Classics International
Entertainment Inc. is publicly traded on the Nasdaq SmallCap Market
under the symbol CIEI.
CONTACT: Classics International Entertainment Inc.
Jimmy Holton, 800/569-CIEI (2434)
or
Continental Capital & Equity Corp.
407/875-1110
href="www.insidewallstreet.com">www.insidewallstreet.com
DENVER, CO -- May 2, 1996 -- FOREST OIL
CORPORATION(Alberta Stock Exchange:FOC NASDAQ:FOIL,FOILO ) Forest
Oil Corporation announced today pre-tax earnings of $1.7 million in
the first quarter of 1996 compared to a pre-tax loss of $3.2 million
in the first quarter of 1995.
For the first quarter of 1996, Forest's net loss was $386,000
and the net loss attributable to common stock after preferred stock
dividends was $926,000 or $.04 per share, compared to a net loss of
$3.1 million and a net loss attributable to common stock after
preferred stock dividends of $3.7 million or $.65 per share for the
first quarter of 1995.
The improved results for the first three months of 1996 were
attributable primarily to higher prices received for natural gas,
increased liquids production as a result of significant Canadian
acquisitions completed in December 1995 and January 1996, and the
contribution made by Forest's Canadian marketing and processing
subsidiary that was also acquired in January 1996.
The results of operations of the principal Canadian entities
acquired, Canadian Forest Oil Ltd. and ProMark, are included in
Forest's consolidated results of operations only for the two months
of February and March, 1996.
Earnings from Forest's oil and gas operations (consisting of oil
and gas sales less oil and gas production and general and
administrative expense) were $17.4 million in the first quarter of
1996 while marketing and processing operations earned $2.6 million.
Oil and gas operations earned $14.9 million in 1995; there were no
marketing and processing operations in 1995.
Robert Boswell, president and chief executive officer, stated,
"The results in the first quarter reflect better than anticipated
results from the Canadian assets acquired in December and January.
Canadian results were enhanced by natural gas production sold into
the northeast United States under marketing contracts which resulted
in wellhead prices that were significantly higher than Canadian spot
market prices.
"Wellhead prices in Canada averaged $1.69 per mcf versus an
average spot market price of approximately $1.10. In addition, the
Canadian gas marketing and processing operation handled
significantly higher volumes, resulting in increased operating
profit."
Oil and gas sales revenue increased 24 percent to $27.7 million
in the first quarter of 1996 from $22.2 million in the first quarter
of 1995. Production volumes for natural gas were approximately the
same in the first three months of 1996 and 1995 while the average
sales price received for natural gas in the first quarter of 1996
increased 8 percent compared to the average sales price received in
the corresponding 1995 period.
Production volumes for liquids (consisting of oil, condensate
and natural gas liquids) were 79 percent higher in the first quarter
of 1996 than in the first quarter of 1995 as a result of reporting
two months of production volumes from the Canadian acquisitions.
The average sales price received by Forest for its liquids
production during the first three months of 1996 was approximately
the same as the price received during the comparable 1995 period.
Oil and gas production expense of $7.5 million in the first
quarter of 1996 increased 41 percent from $5.3 million in the
comparable period of 1995 due primarily to acquisition of Canadian
properties. On a per unit basis, production expenses were $.57 per
mcfe during the first quarter of 1996, an increase of approximately
20 percent compared to amounts incurred during the first quarter of
1995. The increase is due to higher per-unit costs in the United
States where fixed costs are being allocated over a lower production
base.
In addition, there are several fields where operating costs are
being incurred in order to hold leases pending completion of capital
projects; recording these production costs concurrently with
disproportionately low production volumes caused reported production
costs to increase by approximately $.03 per mcfe.
Total overhead costs, including amounts related to exploration
and development activities, of $4.5 million in the first quarter of
1996 increased 20 percent from $3.7 million in the comparable period
of 1995. The increase is due to the addition of Canadian
operations, which increased Forest's salaried workforce to 184 at
March 31, 1996 compared to 115 at December 31, 1995.
Interest expense of $5.8 million in the first quarter of 1996
was comparable to the amount recorded in the first quarter of 1995.
Depreciation and depletion expense increased 5 percent to $12.9
million in the first quarter of 1996 from $12.3 million in the first
quarter of 1995.
On a per-unit basis, depletion expense was approximately $.96
per mcfe in the first three months of 1996 compared to $1.07 per
mcfe in the corresponding 1995 period. The decrease in per unit
depletion expense is the result of first quarter discoveries of oil
and gas in the U.S. and the lower than average cost of reserves
acquired in Canada.
Robert Boswell commented, "In addition to better than
anticipated results in Canada, Forest had a very successful drilling
program in the Gulf of Mexico in the first quarter. Initial
production from some of these Gulf discoveries should begin in the
third quarter of 1996. The Federal offshore lease sale in April was
very strong, both in the number of participants and amounts paid for
leases, demonstrating the value of our existing Gulf of Mexico
position. In addition, the value of existing developed leases in
the Gulf of Mexico has increased dramatically in the last year.
Forest's backlog of projects in the Gulf, combined with its existing
infrastructure and databases, leaves us well-positioned to provide
attractive returns on the capital employed."
Income tax expense increased to $2.1 million in the first
quarter of 1996 from zero a year ago. The increase is due to income
tax expense resulting from Canadian operations. Forest's U.S.
operations remain in a non-taxable position.
Forest Oil Corporation is engaged in the acquisition,
exploration, development, production and marketing of natural gas
and crude oil in North America. Forest's principal reserves and
producing properties are located in the Gulf of Mexico, Texas,
Oklahoma and Canada. Forest's common and preferred stocks are
traded on the Nasdaq National Market tier of The Nasdaq Stock Market
under the FOIL and FOILO symbols, respectively.
FOREST OIL CORPORATION
Condensed Consolidated Balance Sheets
(Unaudited)
March 31, Dec. 31,
1996 1995
(In Thousands)
ASSETS
Current assets:
Cash and cash equivalents $ 5,437 3,287
Accounts receivable 45,867 17,395
Other current assets 3,740 2,557
Total current assets 55,044 23,239
Net property and equipment, at cost 416,635 277,599
Investment in affiliate 11,499 11,301
Other assets 40,060 8,904
-------- --------
$523,238 321,043
LIABILITIES
AND SHAREHOLDERS' EQUITY
Current
liabilities:
Cash overdraft $ 3,389 2,055
Current portion of long-term debt 1,820 2,263
Current portion of gas balancing
liability 4,000 4,700
Accounts payable 45,810 17,456
Accrued interest 1,974 4,029
Other current liabilities 3,332 1,917
Total current liabilities 60,325 32,420
Long-term debt 198,306 193,879
Gas balancing liability 4,127 3,841
Other liabilities 24,268 23,298
Deferred revenue 12,211 15,137
Deferred income taxes 33,476
- Minority interest 8,247 8,171
Shareholders'
equity:
Preferred stock 24,345 24,359
Common stock 2,453 1,066
Capital surplus 373,067 241,241
Common shares to be issued in debt
restructuring - 6,073
Accumulated deficit (217,881) (217,495)
Foreign currency translation 294 (1,407)
Treasury stock, at cost - (9,540)
Total shareholders' equity 182,278 44,297
-------- --------
$523,238 321,043
FOREST OIL CORPORATION
Condensed Consolidated Statements
of Production and Operations
(Unaudited)
Three Months Ended
March 31, March 31,
1996 1995
(In Thousands Except Production
and Per Share Amounts)
PRODUCTION
Gas (mmcf) 9,242 9,297
Oil, condensate and natural gas liquids
(thousands of barrels) 623 349
STATEMENTS
OF CONSOLIDATED OPERATIONS
Revenue:
Marketing and processing $32,747 70
Oil and gas sales:
Gas 17,934 16,735
Oil, condensate and natural
gas liquids 9,725 5,504
Total oil and gas sales 27,659 22,239
Miscellaneous, net 464 52
Total revenue 60,870 22,361
Expenses:
Marketing and processing 30,179 -
Oil and gas production 7,487 5,309
General and administrative 2,730 2,100
Interest 5,797 5,794
Depreciation and depletion 12,938 12,309
Total expenses 59,131 25,512
Income (loss) before income taxes 1,739 (3,151)
Income tax expense (benefit):
Current 1,114 (7)
Deferred 966 -
2,080 (7)
Minority interest in earnings
of subsidiary 45 -
Net loss $ (386) (3,144)
Weighted average number of common
shares outstanding 20,628 5,647
Net loss attributable to
common stock $ (926) (3,684)
Primary and fully diluted loss
per common share $ (.04) (.65)
FOREST OIL CORPORATION
Selected Production and Price Information
Three Months Ended
March 31, March 31,
1996 1995
United States Canada Total United States
Natural Gas
Total production
(MMCF) 6,425 2,817 9,242 9,297
Sales price received
(per MCF) $ 2.36 1.69 2.16 1.61
Effects of energy swaps
(per MCF) (.31) - (.22) .19
Average sales price
(per MCF) $ 2.05 1.69 1.94 1.80
Liquids
Oil and condensate:
Total production
(MBBLS) 236 298 534 334
Sales price received
(per BBL) $17.12 17.60 17.16 16.21
Effects of energy swaps
(per BBL) (1.19) (.41) (.53) (.41)
Average sales price
(per BBL) $15.93 17.19 16.63 15.80
Natural gas liquids:
Total production
(MBBLS) 17 72 89 15
Average sales price
(per BBL) $ 9.06 9.58 9.48 15.50
Total liquids production
(MBBLS) 253 370 623 349
Average sales price
(per BBL) $15.46 15.71 15.61 15.79
ELKIN, N.C., May 2, 1996 - href="chap11.brendle.html">Brendle's Incorporated
(Nasdaq: BRDL) announced today that it received bankruptcy court
approval for its $25 million DIP revolving credit loan facility.
The DIP loan is provided by Foothill Capital Corp., the Company's
pre- petition secured lender. The terms of the loan call for the
maximum borrowing availability to be reduced to $15 million by June
2, 1996. This reduction is in line with the Company's request when
it negotiated the loan with Foothill. The loan will be used first
to retire Foothill's pre-petition secured loan and second, to the
extent necessary, by Brendle's to support its operations.
The primary purpose of the DIP loan is to provide its trade
vendors with a financial "backstop" to the trade credit the Company
anticipates will be extended to it during the reorganization
proceeding.
Judge William L. Stocks, who is overseeing the reorganization
proceeding in the Middle District of North Carolina, also approved
going- out-of-business sales in 18 stores and the retention of
Schottenstein- Bernstein Capital Corporation as agent for the
Company in the liquidation of the inventory in those stores. The
Company previously announced the closure of these 18 stores as part
of its strategic repositioning. The Company will use the sale
proceeds not only to retire the outstanding balance on the DIP
revolving credit line but to partially fund the plan of
reorganization it expects to negotiate with its creditors.
The Company also announced that year-to-date through April 20,
comparable store sales increased 9.0 percent over last year.
Business is up across all of the Company's core merchandise
categories which include jewelry, for the home, giftware, party
goods, personal health and fitness.
CONTACT: David Renegar, Chief Financial Officer, 910-526-6511, or
Andrew G. Barnett, 910-526-6614 or 212-891-6090, Brendle's
Incorporated
CHICAGO, May 2, 1996 -- href="Mayer," target=_new>http://www.mayerbrown.com">Mayer,Brown & Platt today
announced that it has reached a settlement of civil litigation
brought against the law firm by the trustee in the bankruptcy of
Bonneville Pacific Corp.
The settlement removes Mayer, Brown & Platt as a defendant in
the civil action entitled Segal v. Portland General et al., now
pending in U.S. District Court in Utah. The agreement calls for the
firm to pay Bonneville Pacific $30 million, plus the possibility of
an additional $3.5 million if certain conditions in the settlement
agreement are fulfilled. All of the settlement is covered by
insurance, and is conditioned on approval by the U.S. District and
Bankruptcy Courts.
"The firm denies that it has any liability in this matter, but
we made a painful, sensible business decision," said Debora de
Hoyos, managing partner of Mayer, Brown & Platt.
The Mayer, Brown & Platt law firm, founded in 1881, is
headquartered in Chicago and comprises 650 attorneys in Chicago,
Berlin, Brussels, Houston, Los Angeles, New York and Washington.
CONTACT: Tim Metz of Abernathy MacGregor Scanlon, 212-371-5999 or,
after 7:30 p.m., 212-628-2886
ATLANTA, May 2, 1996 - Anacomp,
Inc. today filed a 14D-9
with the Securities and Exchange Commission regarding the recent
tender offer by Questor Partners Fund, L.P. Questor announced on
April 19, 1996 that it was seeking to purchase 15% to 44% of new
common stock that Anacomp will issue when it emerges from Chapter 11
proceedings.
Anacomp's creditors and preferred stockholders currently are
voting on a plan of reorganization that provides for the company's
current debt and accrued unpaid interest and dividends (including
preferred stock) to be reduced by approximately $175 million.
Ballots must be cast by May 8, 1996. The U.S. Bankruptcy Court in
Delaware has scheduled a confirmation hearing on Anacomp's
reorganization plan for May 17, 1996.
A disclosure statement describing the plan of reorganization was
approved by the Delaware court in March. That statement contains an
estimate of the company's value after reorganization ranging from
$300 million to $400 million. The Questor offer of $7.75 a share
values the company within that range. The company has no other
information to assist prospective holders of its new stock in
determining whether to accept Questor's tender offer, and
accordingly Anacomp has decided to remain neutral and express no
opinion on whether prospective holders should accept the offer.
"We're obviously pleased that a respected investment firm like
Questor is confident about Anacomp's prospects, even before we
officially emerge from Chapter 11," noted P. Lang Lowrey, Anacomp's
president and chief executive officer. "Questor's tender offer
gives Anacomp's subordinated debt holders the opportunity to sell
their to-be- issued stock now within the tender offer terms."
Anacomp is a leading provider of multiple-media data management
solutions, delivering cost-effective strategies that incorporate
micrographic, digital, and magnetic output media.
CONTACT: Jeff Withem, Corporate Communications, 404-876-3361,
Ext. 8527; or E-mail: jwithem@anacomp.com; or Nancy Vandeventer,
Investor Relations, 800-350-3044; or E-mail:
nvandeventer@anacomp.com, both of Anacomp