NEW YORK, May 10, 1996 - Salant Corporation (NYSE: SLT)
today announced its financial results for the first quarter ended
March 30, 1996.
Net sales for the first quarter of fiscal 1996 decreased 4.4% to
$99.2 million from $103.8 million for the comparable period in 1995.
Income from operations before interest and taxes was $1.0 million
compared to $2.9 million for the first quarter of 1995.
The net loss for the first quarter of fiscal 1996 was $2.9
million, or ($0.19) per share, compared to a net loss of $1.7
million, or ($0.11) per share, in the first quarter of 1995.
Nicholas P. DiPaolo, Chairman and Chief Executive Officer,
indicated that, "Our net sales were below last year, primarily as a
result of the planned reduction in sales of the Thomson pant
business and the discontinuance of certain unprofitable dress shirt
lines."
Mr. DiPaolo continued, "Despite the reduction in net sales, our
inventories are almost $28 million below last year and our short-
term borrowings are down by approximately the same amount. As a
result, our unused borrowing availability as of the end of the
quarter was over $24 million compared to $7 million at the same time
last year. Clearly, the improvements in inventory management which
were put in place in 1995 are paying off now."
Salant Corporation is a diversified apparel company, which
markets a broad line of men's apparel under well-known brand names,
including Perry Ellis, Manhattan, John Henry and JJ. Farmer. The
Company also markets children's sleepwear and underwear brands,
including Dr. Denton, certain Disney characters, Joe Boxer and
Oshkosh B'Gosh. Salant's products are sold in department and
specialty stores, national chains, major discounters and mass volume
retailers throughout the United States.
SALANT CORPORATION
Condensed Consolidated Statements of Operations
(In thousands, except share and per share amounts)
(Unaudited)
For the three months ended
March 30, 1996 April 1, 1995
Net sales $ 99,193 $ 103,801
Cost of goods sold 76,612 81,334
Gross profit 22,581 22,467
Selling, general and
administrative expenses (21,961) (20,726)
Royalty income 1,128 1,753
Goodwill amortization (649) (641)
Division restructuring costs (161) ---
Other income 18 60
Income from operations before
interest and income taxes 956 2,913
Interest expense, net (3,487) (4,571)
Loss from operations
before income taxes (2,891) (1,658)
Income taxes 22 41
Net loss $ (2,913) $ (1,699)
Loss per share $(0.19) $(0.11)
Weighted average common
stock outstanding 15,040,966(A) 15,007,632(A)
(A) Includes no common stock equivalents
SALANT CORPORATION
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
March 30, 1996 April 1, 1995
ASSETS
Cash $ 1,385 $ 1,907
Accounts receivable 30,166 31,032
Inventory 121,451 149,240
Property, plant and equipment 24,204 28,351
Intangible assets 66,059 68,642
Other assets 9,657 7,636
Total $ 252,922 $ 286,808
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $ 63,796 $ 93,465
Long-term debt 110,015 109,908
Other liabilities 11,196 13,475
Shareholders' equity 67,915 69,960
Total $ 252,922 $ 286,808
DENVER, CO -- May 10, 1996 -- Presidio Oil Company
(PRS/A) today reported oil and gas revenues for the first quarter
ended March 31, 1996 of $8.7 million compared to $8.8 million for
the similar 1995 period, resulting in a net loss of $6.1 million
($0.21 per Class A and Class B share) compared to a net loss of $7.6
million ($0.28 per Class A and Class B share) for the 1995 first
quarter.
Oil production for the 1996 first quarter was 191,000 barrels
compared to 242,000 barrels in the similar 1995 period. The
majority of such decrease in oil production resulted from lower
production rates in several significant fields. Oil prices received
by the Company in the 1996 first quarter averaged $16.91 per barrel
compared to $15.08 per barrel received in the 1995 first quarter.
Gas production for the 1996 first quarter was 3.2 billion cubic
feet ("BCF") compared to 4.2 BCF in the 1995 first quarter. Sales
of producing properties during 1995 accounted for the majority of
such decrease in gas production. Gas prices received by the Company
in the first quarter of 1996 as compared to the first quarter of
1995 averaged $1.71 and $1.23 per thousand cubic feet ("MCF"),
respectively.
Since late November of 1995, the Company and Tom Brown, Inc.
("Tom Brown"), which in June 1995 acquired approximately $56 million
in principal amount of the Company's Senior Gas Indexed Notes Due
2002, have been negotiating with each other and with certain of the
Company's creditors regarding a proposed transaction (the "Tom Brown
Transaction") pursuant to which Tom Brown would acquire the Company.
The negotiations with Tom Brown and certain of the Company's
creditors are continuing in an attempt to reach an informal
consensual agreement regarding the terms of the Tom Brown
Transaction, including the allocation of the proceeds thereof. In
so far as the Tom Brown Transaction does not contemplate full
payment of principal and accrued interest on the Company's public
debt, it is anticipated that such transaction will be implemented
through a plan of reorganization filed under the bankruptcy code.
The Company expects to enter into an agreement with Tom Brown
regarding the Tom Brown Transaction during the second quarter of
1996. There can be no assurance, however, that such an acquisition
agreement with Tom Brown will be completed or, if such an agreement
is entered into, that an informal consensual agreement with the
Company's bank lenders and certain of the significant holders of the
Public Debt can be agreed upon as to the amount or nature of the
proceeds that would be available for distribution to the Company's
debt and equity holders if the Tom Brown Transaction is consummated.
In the event that such an acquisition agreement is entered into with
Tom Brown, but an informal consensual agreement cannot be reached as
to the allocation of the proceeds available for distribution to the
Company's debt and equity holders, then the Company and Tom Brown
plan to file a plan of reorganization under the bankruptcy code,
specifying an allocation of the proceeds among the Company's debt
and equity holders and thereby implementing the acquisition of the
Company by Tom Brown. Should the Company and Tom Brown fail to
reach an agreement concerning such transaction, then it is likely
that the Company would seek protection from its creditors under the
bankruptcy code and seek other purchasers or effect a restructuring
thereunder.
Presidio is an independent oil and gas company engaged in
onshore oil and gas exploration, development and production in the
continental United States.
PRESIDIO OIL COMPANY AND SUBSIDIARIES
Unaudited Consolidated Statements of Operations
Three Months Ended March 31,
---------------------------
1996 1995
-------- --------
(in thousands, except
per share amounts)
Oil and gas revenues $ 8,658 $ 8,844
Less - direct costs:
Lease operating 2,355 3,179
Production taxes 478 532
Depletion, depreciation
and amortization 3,150 3,992
------- -------
2,675 1,141
General and administrative expense (1,079) (1,477)
Interest expense (7,854) (7,157)
Other 169 (124)
------- -------
Net loss $(6,089) $(7,617)
Loss per share of Class A
and Class B Common Stock $ (.21) $ (.28)
Weighted average common
shares outstanding 28,535 28,535
Less: weighted average
unallocated shares held
by the Company's Employee
Stock Ownership Plan - 1,336
------- -------
28,535 27,199
NEW YORK -- May 10, 1996 -- SLM International, Inc.
(Electronic Bulletin Board: "SLMI"), announced operating results for
the year ended December 31, 1995. SLM International previously
announced that it had filed a voluntary petition for reorganization
under Chapter 11 of the Federal Bankruptcy Code in the United States
Bankruptcy Court for the District of Delaware on October 24, 1995.
The results set forth below do not reflect any adjustments which may
ultimately result from the Chapter 11 filing.
Net sales from continuing operations for the year ended December
31, 1995 decreased 11.0% to $161.0 million, compared to $180.8
million for the same period in 1994. Loss from continuing
operations was $51.9 million, or $2.75 per share, in 1995, compared
to a loss of $6.2 million, or $0.33 per share, in 1994. The net
loss for 1995 was $77.4 million, or $4.11 per share, compared to a
net loss of $112.0 million, or $5.94 per share, for the prior year.
The 1995 loss from continuing operations, which is primarily the
Company's sporting goods business, reflected the unfavorable impact
of $15.5 million for unusual charges (due principally to $8.8
million of litigation settlements and a $6.4 million writeoff of
goodwill), $11.2 million for debt related fees (legal and
professional) and $5.7 million of higher interest cost related to
defaults with its lenders. Excluding such items, the Company's 1995
loss from continuing operations would be approximately $19.5
million. The 1995 loss from continuing operations also reflects the
negative impact of inadequate cash availability resulting in
inventory shortages versus customer orders and the lingering effects
of the National Hockey League and Major League Baseball labor
problems. The net loss for 1995 reflects the loss from continuing
operations and a $25.6 million loss from discontinued operations as
a result of the completion of the sale of the Company's discontinued
Buddy L toy and fitness businesses in early July 1995. The net loss
for 1994 included the loss from continuing operations and a $105.7
million loss from discontinued operations.
SLM International, Inc. designs, develops, manufactures and
markets a broad range of sporting goods products on a worldwide
basis.
SLM INTERNATIONAL
(Debtor-in-Possession)
CONSOLIDATED STATEMENTS OF OPERATIONS
For the years ended December 31, 1995, 1994 and 1993
(In thousands, except share data)
1995 1994 1993
Net Sales $160,973 $180,806
$126,034
Cost of goods sold 107,266 113,577
75,104
Gross profit 53,707 67,229
50,930
Selling, general and administrative
expenses 59,753 67,031
38,600
Unusual charges 15,471
Operating (loss) income (21,517) 198
12,330
Debt related fees 11,195
Other expense (income),net 1,484 (260)
(499)
Interest expense 17,078 6,713
3,356
(Loss) income from continuing operations
before income taxes (51,274) (6,255)
9,473
Income taxes 605 (11)
3,779
(Loss) income from continuing operations (51,879) (6,244)
5,694
(Loss) income from discontinued operations,
net of income taxes(a) (94,390) 2,402
(Loss) from disposition of discontinued
operations, net of income taxes(a) (25,569) (11,335)
Net (loss) income $(77,448) $(111,969) $
8,096
(Loss) income per share from continuing
operations $ (2.75) $ (0.33) $
0.30
(Loss) income per share from discontinued
operations(a) (5.01)
0.12
(Loss) per share from disposition of
discontinued operations(a) (1.36) (0.60)
Net (loss) income per share $ (4.11) $ (5.94) $0.42
Weighted average common and common
equivalent shares outstanding 18,859,679 18,844,097 19,232,700
(a) Loss from discontinued operations consist primarily of Buddy L
toy and fitness businesses
CONTACT: SLM International, Inc.
Howard Zunenshine
Chief Executive Officer
(514) 331-5150
or
John A. Sarto
Chief Financial Officer
(212) 332-1610
SAN ANTONIO, TX -- May 10, 1996 -- 50-OFF Stores, Inc.
reported today its results for the 52 weeks ended Feb. 2, 1996; Net
Sales decreased 13.2 percent to $175,023,000 from fiscal 1995's
$201,543,000; Net Loss decreased 15.5 percent to $6,778,000 or $0.56
per common share from fiscal 1995's Net Loss of $8,024,000 or $0.76
per common share. Fiscal 1995 results were for a 53 week period,
reflected the operations of 111.8 weighted average stores (104.0 for
fiscal 1996) and included store closing costs of approximately
$5,019,000.
These poor operating results were due in part to the continuing
economic weakness along the Texas/Mexico border following the
Mexican Government's devaluation of the peso in late 1994, to a
disappointing physical inventory taken at fiscal year end, to
disappointing sales during the back-to-school and Christmas seasons
and to liquidity constraints caused by the company's not having
received the expected proceeds from a Regulation S offering that
should have provided the company with much needed working capital
and is the subject of two current lawsuits initiated by the company.
Fiscal 1996 Net Sales from the company's border stores of $22.0
million were off 36.2 percent ($12.5 million) from the prior fiscal
year's $34.5 million. The 1996 fiscal year end physical inventory
resulted in an unanticipated $963,000 charge to operating results.
As previously reported, the company has not received the proceeds
with respect to its sale of 1.5 million shares of Common Stock and
is currently involved in litigation seeking actual damages in excess
of $5 million, as well as punitive damages and other remedies; the
company expects a favorable judgment or result in its Federal and
State court actions.
While significant operating losses continued through the
company's first fiscal quarter of 1997 (final results are not yet
available), in late February the company began to tackle its
liquidity problem by restructuring certain debt obligations,
including its unsecured trade obligations owed to vendors and its
long term notes with an insurance company. With the support of its
vendors, 50-OFF implemented a payment plan with respect to its
$8,447,000 of trade payables as of Feb. 26, 1996. Under the plan,
such payables will be paid in full within a two year period.
The restructuring of the notes, including an extension of the
maturity, reduced monthly debt service requirements. More recently,
the company has been negotiating a refinancing of its asset based
lending facility, historically a $20 million facility with Congress
Financial which provided for a 45 percent advance rate on eligible
inventory and interest set at prime plus 1.75 percent.
While Congress Financial has continued to support the company
during a difficult period and has always shown professionalism and
flexibility in accommodating 50-OFF, the company announced today a
new $22.5 million revolving line of credit arrangement with Foothill
Capital Corporation and GBFC, Inc. which provides for a 60.75
percent advance rate on eligible inventory (63.75 percent, Sept. 16
- Dec. 15; 55.75 percent, Dec. 16 - Feb. 28) with interest set at
prime plus 1.75 percent. The increased liquidity under this new
facility is expected to provide important cash resources to 50-OFF
and, with the other restructurings, increased creditworthiness. In
conjunction with the establishment of this new facility, 50-OFF
issued Foothill Capital and GBFC a three year Warrant to purchase
400,000 shares of Common Stock at $2.50/share. The new loan
facility matures on May 31, 1998.
Charles "Hop" Fuhrmann, the new 50-OFF CEO and president
appointed by the Board of Directors on Tuesday of this week,
indicated that this new financing, coupled with new management,
merchandising, marketing and advertising, also now in place, should
"set the course for more satisfying results in the future." On a
personal note, Fuhrmann expressed enthusiasm for "the challenges and
the opportunities his new positions with the company afford."
50-OFF Stores, Inc. (NASDAQ: FOFF), a retailer of close-out and
off price merchandise, operates a total of 101 stores in 11 states
in the southern and southwestern United States as of May 10, 1996.
CONTACT: Charles Fuhrmann, CEO, 50-OFF Stores Inc., 210/804-4959
SALT LAKE CITY, May 10, 1996 - Roger G. Segal, as Chapter
11 Bankruptcy Trustee for href="chap11.bonneville.html">Bonneville Pacific Corporation (the
"Trustee"), announced today that two appeals to the United States
District Court for the District of Utah have been filed concerning
the Bankruptcy Court's May 2, 1996 Order approving the Trustee's
$65,000,000.00 settlement with the accounting firm of Deloitte &
Touche and related parties (collectively "Deloitte & Touche") dated
April 23, 1996 (the "Settlement"). The appeals were filed by
Portland General Holdings, Inc. and by the plaintiffs in the class
action entitled Gohler, et al. v. Wood, et al., No. 92-C-0181-S (D.
Utah).
As a result of the appeals, Deloitte & Touche is required,
pursuant to the terms of the Settlement Agreement, as approved by
the Bankruptcy Court, to pay, by June 30, 1996, the $65,000,000.00
into an interest bearing escrow account. In the event that the
appeals are resolved in the Trustee's favor, the escrowed funds,
together with accrued interest, will be disbursed to the Trustee.
If, on appeal, the Bankruptcy Court's Order approving the Settlement
Agreement is vacated, reversed or amended in a material manner, the
Settlement Agreement will not become effective and the escrowed
funds, together with interest thereon, will be returned to Deloitte
& Touche and the Trustee's litigation against Deloitte & Touche will
be reinstated as if never dismissed.
The Settlement Agreement, a copy of which is on file with the
Bankruptcy Court, should be read in its entirety for all terms and
conditions related to the Settlement.
CONTACT: Roger G. Segal, the Chapter 11 Trustee for Bonneville
Pacific Corporation, 801-532-2666
LOUISVILLE, Ky., May 10, 1996 - Rally's Hamburgers, Inc.
(Nasdaq: RLLY) announced net income of $838,000 or $.05 per share
for the first quarter ended March 31, 1996 attributable to an
extraordinary gain, net of tax, of $4.5 million or $.29 per share
from the early extinguishment of debt during the quarter. This gain
was offset by a net operating loss of $3.7 million or $.24 per share
in the quarter. During the comparable quarter of the prior year the
Company lost $3.5 million or $.22 per share.
Company units recorded a same store sales increase of 2%, their
first full quarter increase since the first quarter of 1994. This
represents the fourth consecutive quarter of improving trends in
Company-owned same store sales. Systemwide same store sales were
essentially flat for the quarter. Overall, total Company revenues
declined slightly in the quarter due to a reduction in systemwide
units in operation during the quarter versus the prior year period.
For the month of April, 1996, Company and franchised same store
sales were up 2.5% and down 4.8%, respectively.
Donald E. Doyle, newly appointed President and Chief Executive
Officer, stated "The challenge of returning Rally's to profitability
is achievable. I am encouraged by the improvement we're seeing in
same store sales trends. To translate improved sales into improved
bottom line performance, we have initiated several important changes
designed to improve store level margins. These changes, principally
in the areas of food cost and labor cost, are being pursued
aggressively. Our focus is on achieving improvements in store level
economics while maintaining the positive sales momentum we are now
experiencing. I'm confident that our delivery of high quality food,
fast friendly service, and exceptional value will continue to
attract new customers. Our challenge is an internal one, and that
is restructuring the Rally's profit formula to take full advantage
of our concept strengths."
Doyle added "This quarter's 25% reduction in our bond debt is a
significant first step in de-leveraging the Company. Additionally,
we welcome the investment by CKE Restaurants and Fidelity National
Financial, as well as the proven talents of their representatives on
our Board, Bill Foley and Tom Thompson. Their significant
experiences in turnarounds within our industry segment should prove
invaluable to me as I guide our progress."
The Company's extraordinary gain resulted from the January 29,
1996 repurchase of $22.0 million face value of its 9 7/8% Senior
Notes for $15.2 million. This repurchase reduces the Company's
annual interest expense by more than $2 million and reduces the
Company's remaining 1999 sinking fund indenture requirement of one
third of the $85 million original face value to less than $7 million
of face value.
While same store sales improved during the quarter, the
improvement did not increase the seasonally low sales volumes enough
to sufficiently leverage fixed costs, contributing to the operating
loss. Historically, the Company's lowest sales volumes occur during
its first quarter. Additionally, increases in labor and other store
operating costs, such as repairs and utilities, were not
sufficiently offset by the attained volumes.
The Company ended the quarter with cash and investment balances
of $2.8 million, after the outlays in the quarter for its 25%
reduction in bond debt and its use of cash in operating activities.
Additionally, as anticipated, the Company closed on sales of certain
nonproductive assets, receiving $2.5 million in proceeds during the
quarter. The Company is actively reviewing liquidity enhancing
alternatives, but expects existing cash balances, operating cash
flows and proceeds from the sale of additional assets to be
sufficient to fund its obligations until selection of appropriate
financing alternatives is completed and implemented.
The Company has appealed the decision of NASDAQ to discontinue
the listing of Rally's on the NASDAQ national market system due to a
deficiency in net tangible assets. This was caused by the impact of
the early implementation of SFAS 121, the new accounting standard
regarding impairment of long-lived assets. Rally's will continue to
be listed on the NASDAQ pending the outcome of the appeal.
The Company closed one unit during the quarter and franchisees
opened six and closed four restaurants. As of May 8, 1996, there
were 484 Rally's Hamburgers restaurants operating in 19 states.
RALLY'S HAMBURGERS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except shares and per share amounts)
Three Months Ended
March 31, April 2,
1996 1995
REVENUES
Restaurant sales 40,508 40,734
Franchise revenues and fees 1,404 1,736
Total revenues 41,912 42,470
COSTS AND EXPENSES
Restaurant costs of sales 14,801 13,954
Restaurant operating expenses
exclusive of depreciation
and amortization and other
operating expenses shown
separately below 20,129 18,849
General & Administrative expenses 4,083 4,427
Advertising and promotion expenses 2,848 2,802
Depreciation and amortization 2,688 3,431
Other charges 732 ---
Total costs and expenses 45,281 43,463
Loss from operations (3,369) (993)
OTHER INCOME (EXPENSE)
Interest expense (2,313) (2,591)
Interest income 345 94
Other (29) 41
Total other (1,997) (2,456)
Net loss before tax and extraordinary items (5,366) (3,449)
PROVISION (BENEFIT) FOR INCOME TAXES (1,682) 60
Net loss before extraordinary items (3,684) (3,509)
EXTRAORDINARY ITEMS (net of tax of $1,817) 4,522 ---
NET INCOME (LOSS) 838 (3,509)
Income (loss) per common share:
Income (loss) before extraordinary item (0.24) (0.22)
Extraordinary item 0.29 ---
Net income (loss) 0.05 (0.22)
Weighted average shares outstanding 15,670 15,612
RALLY'S HAMBURGERS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 1995 AND MARCH 31, 1996
(in thousands, except shares and per share amounts)
(UNAUDITED)
DECEMBER 31, MARCH 31,
1995 1996
ASSETS
Current assets:
Cash and cash equivalents $ 9,494 $ 2,768
Investments 4,933 ---
Royalties receivable, including
$483 and $684 from related parties at
December 31, 1995 and March 31, 1996,
respectively, net of a reserve for doubtful
accounts of $922 and $1,031
at December 31, 1995 and March 31, 1996,
respectively 818 1,141
Accounts and other receivables, including
$296 from related parties at March 31, 1996,
net of reserve for doubtful accounts of
$453 and $315 at December 31, 1995 and
March 31, 1996, respectively 2,131 1,904
Inventory, at lower of cost or market 1,056 908
Current portion of notes receivable,
including $10 from related parties at
December 31, 1995, net of a reserve for
doubtful accounts of $109 at
December 31, 1995 and March 31, 1996 113 98
Prepaid expenses and other current assets 1,131 1,194
Assets held for sale 2,506 205
Total current assets 22,182 8,218
Assets held for sale 3,517 3,125
Property and equipment, at historical cost,
less accumulated depreciation of
$33,391 and $34,774 at December 31, 1995
and March 31, 1996, respectively 78,683 75,996
Notes receivable, less current portion,
including $165 from related parties at
December 31, 1995, net of a reserve
for doubtful accounts of $433 at December
31, 1995 and March 31, 1996, respectively 676 489
Intangible and other assets, less accumulated
amortization of $6,888 and $6,380 at
December 31, 1995 and March 31, 1996,
respectively 32,334 31,595
Total assets $137,392 $119,423
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $8,773 $7,717
Accrued liabilities 15,959 17,418
Notes payable --- 500
Current maturities of long-term debt and
obligations under capital leases 17,544 5,124
Total current liabilities 42,276 30,759
Senior notes, net of discount of $768 and
$544 at December 31, 1995 and March 31,
1996, respectively 69,034 62,456
Long-term debt, less current maturities 5,749 5,427
Obligations under capital leases,
less current maturities 5,631 5,674
Other liabilities 8,030 7,583
Total liabilities 130,720 111,899
Commitments and contingencies (Note 5)
Shareholders' equity:
Common stock, $.10 par value, 50,000,000
shares authorized, 15,927,000 and
15,936,000 shares issued at December 31,
1995 and March 31, 1996, respectively 1,593 1,594
Additional paid-in capital 60,804 60,817
Less: Treasury shares, 273,000 at
December 31, 1995 and March 31, 1996,
respectively (2,108) (2,108)
Retained deficit (53,617) (52,779)
Total shareholders' equity 6,672 7,524
Total liabilities and shareholders' equity $137,392 $119,423
FRAMINGHAM, Mass., May 10, 1996 - PerSeptive Biosystems,
Inc. (Nasdaq-NNM: PBIO) today reported total revenue of $24.4
million for its second fiscal quarter ended March 31, 1996, a 9.4%
increase over total revenue of $22.3 million for the same period
last year. The net loss for the second fiscal quarter of 1996 was
$22.6 million, or $1.48 per share, which includes one-time and
special charges of $18.3 million, or $1.20 per share, to cover
certain charges recorded in connection with the Company's
acquisition of PerSeptive Technologies II Corporation (PTC-II) in
March 1996, corporate restructuring commitments made during the
quarter, and other matters. The net loss for the comparable period
in fiscal 1995 was $1.7 million, or $.14 per share.
Product sales for the second fiscal quarter of 1996 were $19.4
million, an increase of 12.1% from $17.3 million in the comparable
quarter in 1995. Product sales increased by 19.2% net of currency
effects compared with the same quarter last year.
For the fiscal six-month period ended March 31, 1996, product
revenues were $38.4 million, compared to $32.5 million for the same
period in 1995, representing product revenue growth of 18.2%, or
23.4% after adjusting for the impact of currency effects between the
periods.
"Product sales increased over last year due to growth in our
Purification and Analysis business lines as well as the continued
strong performance of our international operations," commented
Noubar B. Afeyan, Ph.D., PerSeptive's President and Chief Executive
Officer. "We expect sequential revenue growth will accelerate with
the recent introduction of new product platforms in each of our
business segments."
During the past four months, PerSeptive has introduced seven
major new products that impact each of its three business segments:
Purification, Analysis and Synthesis. The new products in each
segment are listed below.
Purification
-- VISION(TM) Workstation: The first chromatography system to
offer simultaneous biomolecule purification and analysis in a single
instrument through robotics.
- BIOCAD(R) 700E: An enhanced second generation version of
PerSeptive's industry leading BioCAD System.
Analysis
-- SEQUAZYME(TM) Sequencing Kits: The first product that allows
sequencing of peptides and DNA by Mass Spectrometry.
- TITERFLOUR(TM) Assay Kits: First fluorometric assay kits for
research immunoassays.
- VOYAGER-DE(TM) Biospectrometry Workstation: The first Time-of-
Flight mass spectrometer to incorporate PerSeptive's Delayed
Extraction(TM) Technology (Patent Pending).
Synthesis
-- PIONEER(TM) Peptide Synthesizer: A new high throughput
peptide synthesis system for efficient and higher capacity
synthesis.
- PNA Instrument and Reagents: A proprietary chemistry for
automated synthesis of Peptide Nucleic Acids, a compound class for
which PerSeptive has exclusive worldwide research rights.
Dr. Afeyan, commenting further, said, "We have also taken
decisive actions to improve financial performance through the
recently announced restructuring activity, which will reduce our
expenses by more than $3 million per quarter. In order to improve
efficiencies throughout the Company, we have established five
strategic business units: Chromatography, Biospectrometry,
Synthesis, Analytical, and Process. We will continue to focus on
our balance sheet and execute aggressive asset management programs
as the Company moves towards operating profitability."
Dr. Afeyan stated: "We have just announced a major agreement to
combine PerSeptive's drug discovery operation with Myco
Pharmaceuticals to form ChemGenics Pharmaceuticals. Through
ChemGenics, PerSeptive is taking a major step towards
commercializing the technologies recently acquired from PTC-II as
well as reducing further its operating expenses." Dr. Afeyan added,
"We are very pleased to be joining with ChemGenics in this exciting
venture, and will continue to explore other alliances and
opportunities to obtain additional value for our shareholders."
ChemGenics will combine PerSeptive's proprietary chemistry and
drug discovery technologies with Myco's gene technologies, to
uniquely position the Company to translate recent dramatic increases
in genomics information and chemical diversity into valuable, new
drugs, spanning the drug discovery process, from genes, to screens
to leads.
PerSeptive Biosystems develops, manufactures and markets an
integrated line of proprietary consumable products and advanced
instrumentation systems for the purification, analysis and synthesis
of biomolecules. During fiscal 1995, the Company had revenues of
$89.4 million, up from $46.1 million in the previous year. The
Company's enabling products are used in the life sciences industry
to significantly reduce the time and cost required for the
development and manufacture of biopharmaceuticals. PerSeptive's
product lines are based on its patented core technologies in the
fields of chromatography, immunoassay, solid-phase synthesis,
rational surface design, biological mass spectrometry and magnetic
separations.
Any statements which are not historical facts contained in this
release, including projections or statements concerning revenue
growth or profitability, improvement of financial performance,
reduction of expenses and the benefits of transactions, are forward
looking statements that involve risks and uncertainties, including
but not limited to those relating to product demand, pricing, market
acceptance, the effect of economic conditions, intellectual property
rights and litigation and the results of governmental proceedings,
competitive products, risks in product and technology development,
the results of financing efforts, the ability to exploit
technologies, the ability to complete transactions, and other risks
identified in the Company's Securities and Exchange Commission
filings.
PERSEPTIVE BIOSYSTEMS, INC.
Operating Results Summary
(In thousands, except per share data)
For the three months For the six months
ended March 31, ended March 31,
1996 1995 1996 1995
Product revenue $ 19,367 $ 17,330 $ 38,431 $ 32,484
Contract revenue 5,034 5,000 10,101 9,994
Total revenue 24,401 22,330 48,532 42,478
Product costs 9,677 8,083 18,700 15,666
Contract costs 4,267 4,239 8,571 8,476
Other charges 4,837 -- 4,837 --
Total margin 5,620 10,008 16,424 18,336
Research and development 1,701 1,591 3,270 3,810
Selling, general
and administrative 11,015 8,025 20,647 15,975
Amortization 794 754 1,518 1,588
Other charges 13,496 -- 13,496 --
Loss from operations (21,386) (362) (22,507) (3,037)
Other expense, net 678 665 1,433 809
Loss before provision
for income taxes (22,064) (1,027) (23,940) (3,846)
Provision for income taxes -- -- 100 --
Net Loss (22,064) (1,027) (24,040) (3,846)
Net loss per share available
to common shareholders
after accretion ($1.48) ($0.14) ($1.72) ($0.42)
Weighted common shares
outstanding 15,243 12,236 14,609 12,182
Selected Balance Sheet Information March 31, March 31,
1996 1995
Cash and investments $ 23,944 $ 27,244
Accounts receivable, net 18,590 16,376
Inventory, net 21,475 30,383
Trade accounts payable 9,863 9,539
LAS VEGAS, May 10, 1996 - William L. Westerman, Chairman
and Chief Executive Officer of Riviera Holdings Corporation made
several important announcements to the Shareholders attending the
Company's Annual Meeting today.
The Company has been accepted for listing on the American Stock
Exchange. Trading will commence on Monday, May 13th and the stock
symbol will be RIV. Also, Moody's Investor's Service has assigned a
B1 rating to the Company's First Mortgage Notes.
In the first quarter ending March 31, 1996, net income increased
by 30% to $2,473,000 and earnings per share increased from $.40 to
$.49. EBITDA (earnings before interest, taxes, depreciation and
amortization) increased by $1,006,000 to $8,430,000 and net revenues
increased by 12% to $41,723,000 as compared with the first quarter
of 1995.
Mr. Westerman stated that the revenue increase was primarily due
to the increased entertainment revenues. The Splash showroom was
closed during the first six months of 1995 for remodeling. Also, a
new afternoon show was instituted late in 1995 and there was an
increased number of special events. The additional increase in
visitors coming to the show had a positive effect on all other
revenue departments, especially food and beverage.
The Company's shareholders approved an employee stock purchase
plan. Both union and non-union employees will be eligible to
purchase the Company's stock at 85% of the market price. The
purchase may be financed through payroll deduction over a two year
period.
Mr. Westerman stated that he was pleased that the Company's
stockholders have shown such overwhelming support of the plan, which
will enable the Riviera's team members to participate in the
Company's future under such favorable terms.
Mr. Westerman also announced that the Company's wholly owned
subsidiary, Riviera Gaming Management (RGM) had completed
negotiations with the Senior Creditors of href="chap11.elsinore.html">Elsinore to manage the
Four Queens in downtown Las Vegas, when the property comes out of
bankruptcy. In the meantime, RGM has been being retained as an
consultant by the Elsinore bondholders.
Financial Summary
Three Months Ended March 31
$000
1996 1995
Net Revenues $41,723
$37,196
Earnings Before Interest, Taxes,
Depreciation and Amortization
(EBITDA) 8,430 7,424
Income From Operations 6,542
5,829
Interest Expense, Net 2,784
2,915
Income Before Taxes 3,759
2,914
Net Income $2,473
$1,909
Weighted Average Primary and Fully
Diluted Shares Outstanding 5,048 4,800
Net Income Per Share $.49
$.40
KENT, Wash., May 10, 1996 - UTILX Corporation (Nasdaq:
UTLX) today announced a net loss for the fourth quarter of its 1996
fiscal year ended March 31, 1996. The Company chose to record a
$2.6 million reserve ($.36 per share) against the full amount of its
net deferred tax assets as of March 31, 1996. Without this non-cash
expense, the loss for the fiscal 1996 year would have been $.26 per
share compared to a net loss of $.28 per share for fiscal 1995, and
the loss for the fourth quarter of fiscal 1996 would have been $.14
per share compared to a loss of $.11 per share for the same period
of fiscal 1995. Including the tax adjustment, the Company reported
a net loss of $.62 per share for fiscal 1996 and a net loss of $.50
per share for the fourth quarter of fiscal 1996. Fiscal 1996
revenues decreased 1.5% to $49.0 million from $49.7 million in the
prior year. Fourth quarter revenues increased 5.5% to $13.0 million
from $12.3 million in the same period of the prior year.
As a result of the loss in the fourth quarter of fiscal 1996,
the Company determined that, under the provisions of current
accounting standards, it was appropriate to provide an allowance
against the full amount of its net deferred tax assets. "Although
we are confidant in our ability to generate taxable income in the
future and realize these deferred tax benefits, predicting the
future is inherently subject to uncertainty and we felt it prudent
to put the recoverability issue behind us," said Craig E. Davies,
UTILX President and CEO. "We now will recognize those tax benefits
as they are realized in future years."
In late January, the Company had predicted that the severe
winter weather in the eastern United States would have an adverse
impact on the Company's domestic FlowMole business. Primarily due
to the impact of weather, FlowMole revenues in the fiscal 1996
fourth quarter declined to $7.3 million compared to $9.3 million in
the same period of the prior year. Revenues from the domestic
CableCure business, which is primarily concentrated in southern
states and also is less subject to weather impacts, improved to $3.4
million in the fiscal 1996 fourth quarter compared to $0.8 million
in the prior year. International revenues were unchanged at $2.3
million for the quarter. In the fourth quarter of fiscal 1996,
international revenues included $1.0 million from sales of new
equipment, compared to $1.4 million in the same period of fiscal
1995.
The Company indicated that the weather-related impact on the
FlowMole business, which has a high level of fixed costs, had a
disproportional adverse impact on gross profit. The Company also
attributed a portion of the fourth quarter loss to unusually high
expenses from self-funded workers' compensation and employee health
care benefits. In addition, operating expenses increased from prior
quarters, primarily due to a previously announced $125,000 provision
for severance and outplacement benefits and higher profit-sharing
royalty payments due under its CableCure License Agreement.
"The continued growth in our CableCure business is not only
exciting, but evidence of the opportunities we intend to take
advantage of as a focused service business," reported Davies. "Our
revenues for the full fiscal year increased by 101% to $7.9 million
compared to $3.9 million in the prior year. In fiscal 1996, about
1.2 million feet of cable in the United States was injected with
CableCure fluid. We expect to inject at least 2 million feet in
fiscal 1997."
On April 2, 1996, the Company announced a restructing designed
to eliminate its in-house manufacturing operations, outsource those
activities and focus on its core service business. "As a result of
our restructing, we have lowered our operating expenses and plan to
increase our revenues in both the FlowMole and CableCure business,"
added Davies.
UTILX Corporation provides critical services for the renovation
of underground utilities in the U.S. and Canada through a network of
regional sales and service centers. The Company also conducts
service operations in Europe through its wholly-owned subsidiary in
the United Kingdom.
The Company's discussion of its future performance contains
forward-looking statements that are subject to risks and
uncertainties that may cause actual results to differ materially,
such as sudden changes in utilities' demand for the Company's
services due to budgetary or other factors. The Company's contracts
typically allow for cancellation on short notice. Such risks are
detailed in the Company's reports filed with the Securities and
Exchange Commission (SEC).
UTILX CORPORATION
FINANCIAL HIGHLIGHTS
(in thousands except per share amounts)
Fourth Quarter Ending Year Ending
3/31/96 3/31/95 3/31/96 3/31/95
Revenues:
FlowMole 7,345 9,251 33,414 38,726
CableCure 3,359 774 7,862 3,902
International 2,261 2,262 7,717 7,020
Other 69
Total Revenues 12,965 12,287 48,993 49,717
Gross Profit 1,285 1,496 6,408 6,744
Operating Expenses 2,648 2,668 9,088 9,275
Operating Income (loss) (1,363) (1,172) (2,680) (2,531)
Income (loss) before income
taxes (1,426) (1,199) (2,589) (2,821)
Net income (loss) before
valuation allowance (1,039) (823) (1,888) (2,022)
Net income (loss) (3,640) (823) (4,489) (2,022)
Fully diluted earnings
(loss) per share (0.50) (0.11) (0.62) (0.28)
Fully diluted shares
outstanding 7,185 7,206 7,185 7,203
As of
3/31/96 3/31/95
Cash & Cash Equivalents 495 840
Accounts Receivable 10,659 11,525
Materials, Supplies & Inventories 8,128 8,486
Deferred Income Taxes - Current 2,829
Other Current Assets 1,235 963
Total Current Assets 20,517 24,643
Property Plant & Equipment 9,113 9,489
Other Assets 994 1,216
Total Assets 30,624 35,348
Note Payable to Bank 2,500 --
Other Current Liabilities 4,668 6,570
Total Current Liabilities 7,168 6,570
Deferred Income Taxes 708
Total Liabilities 7,168 7,278
Stockholders' Equity 23,456 28,070
Total Liabilities and Stockholders' Equity 30,624 35,348
Common Stock Issued and Outstanding 7,184 7,185