NORWALK, Conn. -- May 3, 1996 -- href="chap11.caldor.html">The Caldor
Corporation (NYSE: CLD) today announced its financial results for
the fiscal year (53 weeks) and fourth quarter ended February 3,
1996.
For fiscal year 1995, net sales were $2.77 billion compared to
$2.75 billion for fiscal 1994. Comparable store sales declined by
5.2% on a 52 week basis from the previous year. For the fourth
quarter of fiscal 1995, net sales were $939.1 million compared to
$938.0 million. Comparable store sales declined by 3.7% on a 13
week basis from the previous year. Caldor's performance was
negatively impacted by several factors, including the highly
competitive retail environment and disruption of merchandise flow
due to the Company's Chapter 11 filing on September 18, 1995.
The Company's operating loss (earnings before interest, taxes
and reorganization items) for fiscal year 1995 was $140.8 million
versus operating earnings of $106.9 million in fiscal 1994. The
Company's operating loss for the fourth quarter of fiscal 1995 was
$112.7 million compared to operating earnings of $72.1 million in
fiscal 1994.
For the fiscal year 1995 and for the fourth quarter 1995, cost
of goods sold includes provisions for anticipated losses on the
liquidation of inventory in fiscal 1996, and estimated amounts for
increased creditor claims, as a result of the Chapter 11 process.
Selling, general and administrative expense rates for these periods
increased compared to the same periods in fiscal 1994 due to lower
than expected comparable store sales combined with increased
insurance, advertising and new store costs.
The Company's net loss for fiscal 1995 was $301.0 million or
$17.79 per share, compared to net earnings of $44.4 million or $2.65
per share for fiscal 1994. The Company's net loss for the fourth
quarter of fiscal 1995 was $257.4 million or $15.20 per share,
compared to net earnings of $39.1 million or $2.33 per share in
fiscal 1994.
These losses include pre-tax reorganization charges of $170.7
million for the full year and $166.1 million for the fourth quarter,
consisting principally of provisions for rejected leases for 26
properties, including the 12 previously announced store closings and
the decision not to proceed with other planned facilities, as well
as related asset write-offs. The charge also includes provisions
for the employee retention program, professional fees, deferred
financing costs and other bankruptcy-related items.
The Company noted that it has financing in place to continue to
meet its future obligations, with significant credit availability
aggregating approximately $290 million under its debtor-in-
possession credit facility, as of April 26, 1996. The Company also
noted that the vendor community has steadily and significantly
increased its support since the Chapter 11 filing through improved
credit terms.
Don R. Clarke, Chairman and Chief Executive Officer of Caldor
noted that, "The Company's results for the year were adversely
affected by the tough retail climate and the Chapter 11 filing. We
have, however, made several moves to strengthen our senior
management team, having recently announced the appointment of Warren
Feldberg, a seasoned retailing executive, as President and Chief
Operating Officer, and Jack Reen as Chief Financial Officer. Caldor
has assembled a team of highly skilled and experienced executives to
lead the reorganization process, and we have begun the process of
reorganizing our business."
Mr. Clarke also noted, "The business trend has improved, and the
Company's operating results for February and March of fiscal 1996
have exceeded the Company's financial plan for this period."
The Company opened four new stores in April and has plans to
open three additional sites, including two previously announced
stores and a third in Atlantic Center in Brooklyn, New York during
the balance of 1996. These stores are expected to contribute
significant sales volume and fit into the Company's urban/suburban
strategy.
The Caldor Corporation is the fourth largest discount department
store chain in the U.S., with annual sales of approximately $2.8
billion and approximately 24,000 Associates. It currently operates
170 stores in ten East Coast states and has announced the closing of
12 stores. With a strong consumer franchise in high density
urban/suburban markets, Caldor offers a diverse merchandise
selection, including both softline and hardline products.
The Caldor Corporation and Subsidiaries
Consolidated Statements of Operations
(Dollars in thousands, except per share data)
Fourth Quarter Ended Fiscal Year Ended
Feb. 3, Jan. 28, Feb. 3, Jan. 28,
1996 1995 1996 1995
(14 Weeks) (13 Weeks) (53 Weeks) (52 Weeks)
Net sales $939,059 $938,028 $2,765,525
$2,748,634
Cost of merchandise
sold (LIFO) 799,854 673,145 2,147,539
1,976,332
SG&A expenses 228,752 177,277 697,658
616,948
Depreciation and
amortization 23,147 15,501 61,081
48,478
Operating earnings (loss) (112,694) 72,105 (140,753)
106,876
Interest expense, net 10,519 8,738 40,973
34,948
Earnings (loss) before
reorganization items,
income taxes and
extraordinary items (123,213) 63,367 (181,726)
71,928
Reorganization items 166,094 170,731
Earnings (loss) before
income taxes and
extraordinary items (289,307) 63,367 (352,457)
71,928
Income tax
provision (benefit) (35,174) 24,272 (59,825)
27,569
Earnings (loss) before
extraordinary items (254,133) 39,095 (292,632)
44,359
Extraordinary loss (3,232) (8,396)
Net earnings (loss) ($257,365) $39,095 ($301,028)
$44,359
Per Share Amounts:
Earnings (loss) before
extraordinary items ($15.01) $2.33 ($17.30)
$2.65
Extraordinary loss ($0.19) ($0.49)
Net earnings (loss) ($15.20) $2.33 ($17.79)
$2.65
Weighted average common and
common equivalent shares
outstanding 16,929 16,752 16,918
16,753
The Caldor Corporation and Subsidiaries
Consolidated Balance Sheets
(Dollars in thousands)
Feb. 3, Jan. 28,
1996 1995
ASSETS
Current assets:
Cash and cash equivalents $25,577 $21,100
Accounts receivable 18,059 8,226
Merchandise inventories 499,948 550,932
Assets held for disposal 25,265
Refundable income taxes 5,380
Prepaid expenses & other
current assets 17,047 12,430
Total current assets 591,276 592,688
Property and Equipment, net 551,977 541,573
Debt issuance costs 4,674 4,531
Deferred income taxes 16,626
Other assets 9,466 10,680
$1,174,019 $1,149,472
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $156,240 $307,643
Accrued expenses 70,835 38,653
Other accrued liabilities 52,836 49,568
Federal & state income
taxes payable 39,204
Current deferred income taxes 4,539
Borrowings under revolving
credit agreement 40,000 70,243
Current maturities of long-term debt 40,618
Total current liabilities 319,911 550,468
Long-term debt 260,785 236,699
Deferred income taxes 7,131
Other long-term liabilities 25,158 18,008
Liabilities subject to compromise 530,957
Stockholders' equity
Common stock, par value 170 167
Additional paid-in capital 205,047 199,456
Retained earnings (deficit) (163,485) 137,543
Unearned compensation (4,524)
Total stockholders' equity 37,208 337,166
$1,174,019 $1,149,472
CONTACT: Information Contacts:
Wendi Kopsick/Jim Fingeroth -
Kekst and Company: (212) 593-2655
HUNTWAY PARTNERS, L.P. REPORTS FIRST QUARTER RESULTS
NEWHALL, Calif., May 3, 1996 - Huntway Partners, L.P.
(NYSE: HWY) reported today that it lost $2,219,000, or $.19 per
unit, in the first quarter of 1996 compared to a net loss of
$3,388,000, or $.29 per unit, in the first quarter of 1995.
Revenues were $17,209,000 versus $12,278,000 in the same quarter a
year ago, when results were negatively impacted by unusually high
levels of rainfall in California.
The company attributed the better operating performance to
improved margins on all products. Asphalt margins improved in the
just-completed quarter versus a year earlier because record rainfall
in the first quarter of 1995 adversely affected results and forced
the sale of significant amounts of low margin fuel oil. Margins for
the company's light-end products also improved in the first quarter
of 1996 commensurate with higher margins for finished gasoline and
diesel fuel in the state. Financial results in the first quarter of
the year are usually weak because wet winter weather means fewer
road surfacing and repair jobs are completed.
On April 15, 1996, the Company announced the terms of its
restructuring agreement reached with the holders of 86% of its
senior debt and with its junior noteholder. Under the terms of the
proposed agreement, in exchange for 13.8 million units, debt will be
reduced to $25.6 million from $95.5 million effective January 1,
1996. Due to the fact that one lender, representing 14% of senior
debt, has refused to date to approve the agreement, the company also
announced at that time that it may be forced to file a "prepackaged"
reorganization plan under the U.S. Bankruptcy Code to implement the
restructuring. Had the new debt restructuring been in place at the
beginning of the first quarter, interest expense for the quarter
would have been reduced to $835,000 from $1,289,000, or a difference
of $454,000, or $.04, per unit. The company currently believes the
restructuring will be completed by the end of September of this
year.
Huntway President and Chief Executive Officer, Juan Forster,
said, "Our expected first quarter operating loss was reduced 34%
versus the prior year and we expect to see greater improvements in
quarterly results through the balance of the year as the demand for
our products continue to strengthen."
Huntway Partners, L.P. owns and operates two refineries at
Wilmington and Benicia, California, which primarily process
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. The company's third
refinery, at Coolidge, Arizona, is shut down although it may be
reopened as a terminal in 1997 or beyond.
The company's preference units are traded on the New York Stock
Exchange under the symbol HWY.
HUNTWAY PARTNERS, L.P.
SELECTED FINANCIAL DATA
FOR THE THREE MONTHS ENDED
MARCH 31, 1996
(In Thousands Except Per Units Data)
Three Months Ended
March 31, March 31,
1996 1995
Revenues $17,209 $12,278
Material and Processing 16,758 12,768
Selling and Administration 866 1,081
Interest Expense 1,289 1,255
Depreciation and Amortization 515 562
Net Loss $(2,219) $(3,388)
Loss Per Unit $(0.19) $(0.29)
Equivalent Units Outstanding 11,673 11,673
Barrels Sold 887 750
HUNTWAY PARTNERS, L.P.
CONSOLIDATED BALANCE SHEET
(Dollars in Thousands)
March 31, March 31,
1996 1995
Cash $2,826 $4,304
Accounts Receivable 5,101 4,820
Inventory 5,101 3,320
Prepaid Expenses 912 676
Property, Net 58,687 58,677
Other Assets 2,703 2,596
Total Assets $75,330 $74,393
Accounts Payable $8,641 $6,582
Accrued Liabilities 4,727 3,530
Debt 94,695 94,795
Partners' Capital (32,733) (30,514)
Total Debt and Partners' Capital $75,330 $74,393
HUNTWAY PARTNERS, L.P.
CONSOLIDATED STATEMENT OF CASH FLOWS
(Dollars in Thousands)
Three Months
Ended March 31,
1996 1995
Net Loss $(2,219) $(3,388)
Add: Depreciation and PIK Notes 515 1,158
Changes in Working Capital 990 (1,112)
Cash Used by Operating Activities (714) (3,342)
Cash Used by Investing Activities (664) (247)
Cash Used by Financing Activities (100) (123)
Net Decrease in Cash (1,478) (3,712)
Cash at Beginning of Period 4,304 5,984
Cash at End of Period $2,826 $2,272
TRENTON, Mich., May 3, 1996 - href="chap11.mclouth.html">McLouth Steel Products
Corporation announced today that it has signed an agreement with
Hamlin Holdings to purchase McLouth Steel, subject to approval of
the bankruptcy court.
McLouth Steel said Hamlin Holdings is an affiliate of the
Reserve Group of Akron, Ohio, an investment company specializing in
investing in industrial companies, and with a longstanding track
record in the steel industry. In 1995, the Reserve Group acquired
Cooperweld Steel, an electric furnace based manufacturer of special
bar quality steel based in Warren, Ohio. The principals of the
Reserve Group were also among the former owners of Gulf States
Steel, an integrated manufacturer of flat products based in Gadsden,
Alabama.
McLouth Steel said that Hamlin Holdings intends to restart the
operations of McLouth Steel during the second half of 1996. The
Company also stated that Hamlin Holdings intends to invest capital
in the Company to modernize the facilities.
McLouth Steel, based in Trenton, Michigan, is an integrated
steel manufacturer with operations in Trenton and Gibraltar,
Michigan, and with annual steelmaking capacity of approximately 1
million tons. McLouth Steel entered into Chapter 11 proceedings of
the U.S. Bankruptcy Code on September 29, 1995.
CONTACT: McLouth Corporate Offices, 313-246-4002
SEATTLE, May 3, 1996 - Ernst Home Center, Inc. (Nasdaq:
ERNS) today announced sales for the second quarter of fiscal 1996
which ended April 27, 1996. Sales for the quarter were $105.2
million, down 16.9% for the comparable 1995 fiscal period. For the
first six months of the year, sales were $228.8 million, down 8.1%
from the comparable 1995 period.
Sales during the quarter were impacted by weather, which was
colder and wetter than normal, short-term inventory availability, a
slowdown in home improvement store activity and increased
competition. These same forces affected comparable store sales
(sales from stores open more than one year, including stores
replaced by new stores). Comparable store sales were down 20.3% for
the quarter.
During the latter part of the quarter the Company's inventory
stocking position improved and the Company also implemented its
"Ernst 96" customer service improvement program.
Ernst, based in Seattle, Washington, is a major home improvement
retailer operating stores in Washington, Oregon, California, Idaho,
Montana, Utah, Nevada, Colorado, and Wyoming.
CONTACT: Douglas Sherk or Chris Danne, 415-296-7383, or
Stacey Herschaft or Ellissa Grabowski, 212-850-5600, all of Morgen-
Walke Associates, Inc., for Ernst Home Center