OKLAHOMA CITY, May 13, 1996 -
Homeland Stores, Inc., a
private company, announced today that it will begin implementing its
previously announced financial restructuring plan. As previously
reported, the proposed restructuring is supported by Homeland's bank
group, a committee representing approximately 80% of Homeland's
outstanding senior secured bonds, and Homeland's labor unions. The
restructuring is expected to reduce Homeland's debt service
obligations and labor costs, which will greatly strengthen its
financial position and permit the company to maintain its market
leadership. Homeland expects to complete the restructuring by mid-
summer 1996.
An integral part of Homeland's restructuring is its previously
announced pact with its labor unions to modify certain elements of
Homeland's collective bargaining agreements. These modifications,
which were overwhelmingly ratified by the union members in March,
will provide for, among other things, wage and benefit
modifications, the buyout of certain employees, and the issuance and
purchase of new equity to a trust acting on behalf of the unionized
employees. The modified collective bargaining agreements are
conditioned on, and will become effective upon, the consummation of
the restructuring.
The restructuring will be implemented by means of a "pre-
arranged" Chapter 11 plan of reorganization, which was submitted
today to the United States Bankruptcy Court, District of Delaware,
together with a disclosure statement describing the plan. In order
to facilitate the restructuring process, Homeland has entered into a
debtor-in-possession lending facility with its existing bank group,
providing Homeland with up to $27 million of working capital
financing. This facility has been approved on an interim basis by
the court, with a final approval hearing scheduled for May 31, 1996.
Homeland believes that this facility will provide it with the
financing necessary to maintain its normal business operations
during the restructuring period, including the payment of the post-
petition claims of employees and trade vendors.
Homeland said that the financial restructuring will have no
impact on the company's normal store operating hours or its in-store
promotions, such as double coupons. Homeland said that as part of a
long-term effort to rationalize its store network, it plans to close
one store at 1520 North Lewis Street in Tulsa, OK and one store at
5800 Bell Street in Amarillo, TX. The approximately 50 affected
employees will have employment opportunities in Homeland stores
within their respective areas. Going forward, the company expects
to operate a total of 65 stores and employ approximately 4,250
people.
Pursuant to the restructuring, the $95 million of Homeland's
senior secured bonds currently outstanding (plus accrued interest)
will be canceled, and the bondholders will receive (in the
aggregate) $60 million face amount of new senior subordinated notes
and $1.5 million in cash. The new senior subordinated notes will
mature in 2003, bear interest semi-annually at a rate of 10% per
annum, and will not be secured. In addition, the bondholders and
the company's general unsecured creditors will receive approximately
60% and 35%, respectively, of the equity of the reorganized Homeland
(assuming total unsecured claims of approximately $63 million,
including bondholder unsecured claims). Homeland's existing equity
holders will receive the remaining 5% of the new equity, together
with 5-year warrants to purchase an additional 5% of such equity.
"For fifty years we have been providing customers in this area
with superior levels of service and quality products at good prices,
and we plan to be here for at least another fifty doing this and
more for our customers," said James A. Demme, Homeland's Chief
Executive Officer. "This agreement permits us to continue business
as usual, which is good news for our customers, our employees, our
creditors and our suppliers."
P. Eric Siegert, Senior Vice President of Houlihan, Lokey,
Howard & Zukin, the firm advising Homeland's bondholders, said, "We
believe that Homeland's financial restructuring plan is sound and
will put the company back on solid footing. The bondholder
committee unanimously supports this plan of reorganization."
Mike DeFabis, President and Chief Executive Officer of
Associated Wholesale Grocers, one of the largest food wholesalers in
the U.S., which supplies 70% of Homeland's requirements, said, "We
strongly support Homeland, and the long-term supply agreement we
have with the company reflects our confidence that it will remain
the leader in the communities it serves."
"These final steps represent a new beginning for Homeland and
will allow us to maintain both our recent momentum and our long-
standing market leadership," Mr. Demme added. "We are gratified by
the strong support that all involved have given the restructuring
plan. The cooperative spirit demonstrated by employees, creditors,
and suppliers shows a genuine interest in the future success of
Homeland."
Homeland is the leading supermarket chain in Oklahoma, southern
Kansas, and the Texas panhandle region.
CONTACT: Thomas C. Franco or Rohit J. Menezes for Homeland Stores,
Inc., 212-229-2222
SAN DIEGO, May 13, 1996 - Gensia, Inc. (Nasdaq: GNSA)
today reported a net loss of $12.8 million, or $0.36 per share
(after undeclared and unpaid cumulative preferred stock dividends of
$1.5 million) in the first quarter ended March 31, 1996, compared to
a net loss of $14.5 million, or $0.45 per share (after preferred
stock dividends of $1.5 million) in the first quarter of 1995. The
1995 first quarter results included a $4 million litigation
settlement charge for shareholder class action litigation and a $1.1
million restructuring charge.
Product sales in the first quarter of 1996 amounted to $12.9
million versus $13.3 million in the same period of 1995. The cost
of goods sold associated with these product sales was $8.5 million
for the first quarter of 1996 and $8.6 million for the first quarter
of 1995. Total revenues were $13.6 million in the 1996 first
quarter compared to $18.0 million in the 1995 first quarter. The
reduction in total revenues is primarily a result of the Company
having no contract research revenues in the first quarter of 1996
compared to $4.2 million in contract research payments in 1995,
which primarily consisted of payments from Aramed, Inc. (which was
acquired by Gensia in November 1995) and the recognition of deferred
income from a collaboration announced in October 1994 with
Boehringer Mannheim Pharmaceuticals Corporation.
On-going research and development expenses were $8.2 million in
the 1996 first quarter and $9.6 million in the comparable 1995
period. This decrease was primarily due to continued efforts to
reduce research expenses and lower overhead costs following a
restructuring of the Company to reduce development expenses in
February 1995. Selling, general and administrative expenses were
$7.9 million in the 1996 first quarter compared to $7.5 million in
the 1995 first quarter, reflecting the expansion of sales and
marketing activities.
At March 31, 1996 Gensia had working capital of $56.5 million
and cash and short-term investments of $44.3 million. At December
31, 1995 Gensia had working capital of $67.7 million and $58.9
million in cash and short-term investments. The decrease reflects
the impact of operating losses for the quarter, payments of current
liabilities and capital expenditures related to new product
development at Gensia Laboratories, Ltd.
Gensia expects additional funding from a research collaboration
with Pfizer Inc. announced on May 6, 1996, to discover and develop
broad- spectrum analgesic drugs for the treatment of pain using
Gensia's adenosine regulating agent (ARA) technology. The agreement
provides for Pfizer to make an up-front licensing payment and to
provide basic research funding to Gensia for pain research for a
period of at least two years. The agreement also calls for Pfizer
to make a $5 million equity investment in Gensia Common Stock at a
premium to the market price at the time of the agreement. With
additional milestone payments and assuming successful development of
a compound, the total value of the collaboration could be
approximately $50 million plus royalty payments on the sales of any
approved product resulting from the collaboration. The agreement is
expected to close in the second quarter of 1996.
Gensia Laboratories, Ltd. is a wholly-owned subsidiary of
Gensia, Inc. located in Irvine, California which develops,
manufactures and markets multisource injectable drug products for
the acute care and alternate site markets. Gensia is a research-
based company focused on the discovery, development, manufacturing
and marketing of health care products for the acute care market.
This press release contains forward looking statements that are
subject to risks and uncertainties that could cause actual results
to differ materially from those set forth in the forward looking
statements, including whether transactions contemplated pursuant to
the Pfizer agreements will be consummated, whether any milestone
payments will be achieved, whether any product candidates can be
successfully developed and commercialized, or whether the research
collaboration contemplated by the Pfizer agreements will be
successful. These forward looking statements represent the
Company's judgement as of the date of this press release. The
Company disclaims any intent or obligation to update these forward
looking statements.
Consolidated Balance Sheet Data
(in thousands)
March 31, December 31,
1996 1995
Assets:
Cash, cash equivalents and
short-term investments $44,345 $58,861
Other current assets 25,292 25,037
Property and equipment, net 27,089 25,749
Other assets 8,547 8,913
Total assets $105,273 $118,560
Liabilities and stockholders' equity:
Current liabilities $13,128 $16,211
Other liabilities 170 46
Stockholders' equity 91,975 102,303
Total liabilities and
stockholders' equity $105,273 $118,560
Consolidated Statement of Operations Data
(in thousands, except per share data)
Three months ended
March 31,
1996 1995
Revenues:
Product sales $12,894 $13,330
Contract research and license fees -- 4,151
Interest income 712 488
Total revenues 13,606 17,969
Costs and expenses:
Cost of sales 8,471 8,618
Research and development 8,197 9,574
Selling, general and administrative 7,927 7,546
Interest and other 307 110
Restructuring charges -- 1,092
Litigation settlement -- 4,000
Total costs and expenses 24,902 30,940
Net loss (11,296) (12,971)
Dividends on preferred stock, including
undeclared and unpaid dividends of
$1,488 for the three months ended
March 31, 1996 and dividends paid of
$1,488 for the three months ended
March 31, 1995 (1,488) (1,488)
Net loss applicable to common shares $(12,784) $(14,459)
Net loss per common share(a) $(.36) $(.45)
Weighted average number
of common shares(b) 35,458 32,278
(b) Shares used in computing per share amounts for the three
months ended March 31, 1996 include the effect of 567,554 shares
issuable at $5.0656 per share in payment of Contingent Value Right
obligations.
CONTACT: Martha L. Hough of Gensia, 619-546-8300
WASHINGTON, May 13, 1996 - B'nai B'rith International
president Tommy P. Baer today categorically denied a published
report in U.S. News and World Report that B'nai B'rith will be
"forced shortly to declare bankruptcy."
"We are shocked at this gross misstatement of facts and are
consulting legal counsel to restore our reputation," said Baer. "I
cannot say it clearly and strongly enough: B'nai B'rith has no
intention to declare bankruptcy and is definitely not on the verge
of any such action." The B'nai B'rith president continued, "anyone
who would report such a rumor after it was categorically denied by
our spokesperson is guilty of the worst kind of shameful and
inaccurate journalism. We will take strong and forceful action to
protect our good name from slurs of this kind."
At a recent Board of Governors meeting, B'nai B'rith discussed
financial concerns - similar to those being addressed by most
American non-profit organizations. Although membership in voluntary
organizations is declining in most membership groups, B'nai B'rith
is restructuring to make it more receptive to its members' needs.
The Board concentrated on refining a proposal which has been in
development for 18 months to radically alter the 153-year-old
organization's structure and priorities to provide more service to
the grassroots membership. This plan, still under development, will
be voted upon at the International Convention August 30-September 3
in Washington, D.C. Baer charged U.S. News with "equating major
restructuring with financial collapse. To make a connection of this
kind can only be termed irresponsible."
B'nai B'rith leaders point to positive developments within the
organization: 30 new groups for young people established over the
last two years, the expansion of B'nai B'rith Youth chapters
throughout Eastern Europe and a 10-year-fundraising high.
Baer added that the organization's assets are nearly twice its
liabilities. Furthermore, B'nai B'rith has taken important steps to
guarantee its fiscal integrity. Baer explained that "two years ago,
we effectively lost the income from a members' insurance program
which had provided us with $2 million each year and then disappeared
virtually overnight. Rather than cut important services at that
time, we instituted a number of new efforts to restore that income
but they have not yet matured into significant income producing
vehicles." To compensate for the loss of income and provide a
cushion against future losses, last week the Budget Committee cut $2
million from the 1997 fiscal budget. "These actions," Baer observed,
"are similar to those which many major corporations are undertaking.
We are reallocating our resources and redefining our priorities.
With these steps, we will insure our financial health and continue
to provide the quality service which has been our hallmark for 153
years."
The B'nai B'rith president pointed to the organization's long
history and observed: "This is the kind of flexibility which has
made B'nai B'rith the world's oldest and largest Jewish
organization. It is the kind of responsible fiscal action which will
enable us to continue to serve the Jewish community and grow for at
least another century and a half."
CONTACT: Robin Schwartz-Kreger of B'nai B'rith, 202-857-6536
BAY SAINT LOUIS, Miss., May 13, 1996 - Casino Magic Corp.
(Nasdaq: CMAG), today announced it has completed its acquisition of
Crescent City Capital Development Corp. ("Crescent City"), a wholly
owned subsidiary of Capital Gaming International, Inc. (OTC: GDFI),
which holds a Louisiana gaming license. Crescent City received
Louisiana State Police approval of the transaction on April 30,
1996; Bankruptcy Court approval to transfer ownership to Casino
Magic as a part of Crescent City's Amended Plan of Reorganization on
April 29, 1996 and on March 26, 1996, Casino Magic received
Louisiana Riverboat Gaming Commission approval for the transfer of
ownership of Crescent City, and the relocation of its gaming license
to Bossier City, Louisiana.
This transaction is valued at $56.5 million, of which, $15
million was paid in cash and the remaining balance in debt,
including up to $6.5 million in gaming equipment liability.
Casino Magic, through a wholly owned subsidiary, intends to
operate a new casino in Bossier City, Louisiana. Casino Magic owns
20 acres of land in Bossier City on the Red River with immediate
access from Interstate 20, a major artery between the Dallas-Ft.
Worth area and Bossier City. Casino Magic's pre-local option
referendum construction plan includes 30,000 square feet of floating
dockside casino space which will have approximately 1,000 slots and
60 table games. The plan also includes 1,500 parking spaces
together with an entertainment and food and beverage pavilion. Post-
local option referendum plans include the construction of a 60,000
square feet entertainment facility and a 400-room convention hotel.
Opening is anticipated during 1996.
Casino Magic Corp., a Minnesota corporation with principal
offices in Bay Saint Louis, Miss., operates gaming casinos in Bay
Saint Louis and Biloxi, Miss., Deadwood, S.D., Neuquen City and San
Martin de los Andes, Argentina, and Porto Carras and Xanthi, Greece.
CONTACT: Jay S. Osman, Chief Financial Officer, Casino Magic
Corp., 601-466-8010, or email, josmancasinomagic.com
ST. PAUL, Minn., May 13, 1996 - Minnesota Brewing Company
(Nasdaq: MBRW) announced today net sales for its first quarter ended
March 31, 1996 were $5,099,484, a decrease of 26.5% from net sales
of $6,938,030 for the first quarter of 1995. The Company's net loss
for the first quarter of 1996 was $470,910 or $.14 per share
compared to a net loss of $339,628 or $.10 per share for the first
quarter of 1995.
The sales decrease in the first quarter of 1996 was attributable
to the absence of sales to Pete's Brewing Company (Pete's) whose
contract concluded in the fourth quarter of 1995. This decrease was
partially offset by an increase in sales of the Company's
proprietary brands along with an increase in contract brewing of
beer for third parties other than Pete's. During the first three
months of 1996 the Company sold a total of 96,112 barrels, a
decrease of 29.5% from 1995 first quarter sales of 136,384 barrels.
The comparison for the same period excluding Pete's sales reflects
an increase in barrelage sales of 22,637 barrels or 30.9% from
73,249 barrels in the first quarter of 1995 to 95,886 barrels in the
first quarter of 1996.
The Company's gross profit for the first quarter of 1996 was
less than the gross profit for the first quarter of 1995 and was
principally attributed to the decrease in sales volume and the
related impact of fixed plant overhead levels. Concurrently the
Company's net loss for the first quarter of 1996 was greater than
the loss for the first quarter of 1995. While operating expenses
were reduced from the first quarter of 1995 to 1996 they did not
fully cover the decrease in gross profit for the same periods.
President Richard McMahon said, "The increase in proprietary
sales was encouraging since it came across the board from our Grain
Belt Family of Brands, our Pig's Eye Family of Brands and from our
Landmark and specialty product brands. The continuing market
acceptance and further support of our proprietary products is
appreciated and is evidence of the great joint promotional effort
put forth by retailers, distributors and our own sales and marketing
team. We will continue to build on these efforts and complement
them further with the introduction of new products. Our newest
product "Yellow Belly" came to the market in May, 1996. The Lemon-
Ale Malt beverage has been popular in England and our Company has
been one of the first to bring out this product in the United
States. We continue to develop additional products while supporting
and building our core brand business."
Mr. McMahon also indicated that the Company was continuing to
product LaCroix water products on a cash basis for the
Winterbrook
Corporation, which filed a Chapter 11 petition for bankruptcy in
March, 1996. Pursuant to a court approved interim agreement,
Winterbrook has paid the Company approximately $410,000 for
inventory held by the Company at the time of the bankruptcy filing
and subsequently shipped to Winterbrook. The Company is owed an
additional $310,000 from Winterbrook and has filed a claim in
Bankruptcy Court in this amount. The Company has created a loss
reserve of $160,000 against this claim. The Company expects a
favorable resolution of this matter, although the Company is
currently unable to determine whether Winterbrook Corporation will
be successful in emerging from Chapter 11.
MINNESOTA BREWING COMPANY
1996 FIRST QUARTER RESULTS
The following table sets forth the unaudited comparative
operating results for the three months ended March 31, 1996 and 1995
respectively.
Three Months Ended
March 31
1996 1995
Net Sales $5,099,484 $6,938,030
Gross Profit 119,834 345,348
Operating Income 442,633 (320,679)
Net Income (Loss) (470,910) (339,628)
Net Income (Loss) per Share $(.14) $(.10)
Weighted Average Shares Outstanding 3,355,277 3,334,567
The following table sets forth the balance sheet of Minnesota
Brewing Company as of March 31, 1996 and December 31, 1995. The
balance sheet as of March 31, 1996 is unaudited. The balance sheet
as of December 31, 1995 is derived from the Company's audited
balance sheet as of that date.
March 31, December 31,
1996 1995
Working Capital $5,886,936 $6,327,913
Total Assets 12,712,399 12,189,503
Current Liabilities 2,446,861 1,419,591
Long Term Debt -- Net 1,930,965 1,982,428
Shareholders' Equity 8,334,573 8,787,484
The Company's Common Stock is traded on the Nasdaq Small Cap
Market under the symbol "MBRW."
CONTACT: Richard McMahon, President of Minnesota Brewing Company,
612-228-9173
VERNON, Calif., May 13, 1996 - Seven-Up/RC
Bottling
Company of Southern California, Inc. today announced that it has
filed a voluntary petition under Chapter 11 of the United States
Bankruptcy Code in the Bankruptcy Court for the District of
Delaware. The Company said it filed its Chapter 11 case because it
is the most efficient way of consummating the restructuring
agreement the Company entered into with the unofficial committee
(the "Bondholders! Committee") of the holders of the Company's 11.5%
Senior Secured Notes due 1999 ($140 million principal amount) back
in November 1995. The restructuring agreement called for, among
other things, the exchange of the Senior Secured Notes for
approximately 98% of the Company's equity and the sale of the
Company's Puerto Rico subsidiary. On May 6, 1996, the Company
announced that it had entered into an agreement to sell the stock of
its Puerto Rico subsidiary to an investor group led by Center Street
Capital Partners, L.P. for a total consideration of approximately
$74 million. The Company has secured a $54 million debtor-in-
possession financing commitment from GE Capital Corporation.
Subject to court approval, these funds will enable the Company to
meet future inventory needs and to fulfill obligations associated
with operating its business, including the prompt payment of new
supplier invoices.
The Company announced that it has already prepared a plan of
reorganization - which provides that its trade creditors will be
paid in full and which has the support of both the Bondholders'
Committee and the Company's working capital lender, GE Capital
Corporation. Bart Brodkin, the CEO of the Company, commented that
"because the Company has the support of the Bondholders Committee
and GE Capital, the Company expects the Chapter 11 case to proceed
smoothly and come to a conclusion in only a few months."
Bart Brodkin also commented that the Company's performance has
improved significantly because of its recent restructuring efforts.
"On the operational side, the Company's restructuring efforts are
paying off. Sales volumes have stabilized, and margins are
improving - a result of disciplined pricing and marketing and
favorable raw material costs. Most significantly, we have improved
productivity in all cost centers."
Seven-Up/RC Bottling Company of Southern California, Inc., is
one of the largest independent manufacturers and distributors of
beverage products in the United States, with annual sales (exclusive
of its Puerto Rico subsidiary) of $314 million in the fiscal year
ending December 31, 1995.
CONTACT: Edward Whiting of Whitman Heffernan Rhein & Co., financial
advisor to Seven-Up/RC Bottling Company of Southern California,
Inc., 213-267-6233
CANTON, Mass. -- May 13, 1996 -- Grossman's Inc.
(NASDAQ-GROS) released consolidated balance sheets as of March 31,
1996 and statements of operations for the three months ended March
1996.
The 1996 first quarter results included a restructuring charge
of $40.2 million related to severance costs, lease payments,
inventory liquidation costs, other expenses and the net
unrecoverable amount of property, plant and equipment. Under the
reorganization and refinancing plan, the Company's 60 Grossman's
stores, located in eight Northeastern states, were closed. In
addition, four transactions were undertaken to improve liquidity.
The $15.8 million note receivable from Kmart Corporation was sold in
March 1996. The Company's 14% Debentures due January 1996 were
refinanced, with cash and notes issued in April 1996. A $33.0
million mortgage loan secured by owned properties was obtained, with
funding occurring in April 1996. A new $50 million long-term
revolving credit agreement, with increased borrowing availability,
was obtained beginning in May 1996.
The Company also commented that sales and operating results in
1996 were and will continue to be affected by inventory supply
problems and out-of-stock situations. Following the announcement of
the refinancing plan, management has focused on reestablishing
vendor relationships, including timely payment to all vendors,
rectifying inventory shortages, and reestablishing customer
relationships which were strained due to these shortages. However,
sales and results of operations throughout the second quarter will
be hindered by the lingering effects of these difficulties.
Sales from ongoing operations for the three months ended March
1996 totalled $65.0 million, 5.9% above the $61.4 million for the
same period in 1995. Comparable store sales for the three months
ended March 1996 were 5.2% below the 1995 level.
Grossman's operates 16 stores under the name Contractors'
Warehouse in California, Indiana, Kentucky, Nevada and Ohio, and 24
stores under the name Mr. 2nd's Bargain Outlet in Massachusetts, New
York and Rhode Island.
Grossman's Inc.
Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)
Three Months Ended
March 31,
------------------
1996 1995
---- ----
SALES $112,981 $126,770
COST OF SALES 86,481 95,777
--------- ---------
Gross Profit 26,500 30,993
OPERATING EXPENSES
Selling and administrative 38,034 38,088
Depreciation and amortization 1,849 3,011
Store closing expense 40,150 -
Store preopening expense 361 135
--------- ---------
80,394 41,234
--------- ---------
OPERATING LOSS (53,894) (10,241)
OTHER EXPENSES (INCOME)
Interest expense 1,620 2,197
Net gain on disposals of
property (27) (46)
Other (1,008) (732)
--------- ---------
585 1,419
--------- ---------
EQUITY IN NET LOSS OF
UNCONSOLIDATED AFFILIATE 208 198
--------- ---------
LOSS BEFORE INCOME TAXES (54,687) (11,858)
CREDIT FOR INCOME TAXES - (1,186)
--------- ---------
NET LOSS $(54,687) $(10,672)
NET LOSS PER COMMON SHARE
(PRIMARY AND FULLY DILUTED) $ (2.10) $ (0.41)
WEIGHTED AVERAGE SHARES AND
EQUIVALENT SHARES OUTSTANDING
(PRIMARY AND FULLY DILUTED) 26,089 25,782
Grossman's Inc.
Consolidated Balance Sheets
(in thousands)
(Unaudited)
March 31, December 31, March 31,
1996 1995 1995
--------- ------------ ---------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 1,745 $ 2,536 $ 917
Receivables, net 20,604 23,940 14,529
Inventories 53,106 102,009 124,890
Note receivable, net - 13,000 -
Property held for sale 4,500 2,572 7,152
Other current assets 2,852 3,940 3,015
-------- -------- --------
Total current assets 82,807 147,997 150,503
PROPERTY, PLANT AND
EQUIPMENT, NET 50,955 94,256 103,695
PROPERTY HELD FOR SALE 31,294 - -
INVESTMENT IN AND ADVANCES
TO UNCONSOLIDATED
AFFILIATE 100 108 1,020
OTHER ASSETS 1,088 1,168 1,413
-------- -------- --------
TOTAL ASSETS $166,244 $243,529 $256,631
LIABILITIES AND
STOCKHOLDERS' INVESTMENT
CURRENT LIABILITIES
Accounts payable and
accrued liabilities $ 97,040 $ 91,308 $ 92,137
Accrued interest 1,829 1,403 696
Current portion of
long-term debt and
capital lease obligations
14% Debentures, paid
April 1996 16,201 16,201 16,201
Mortgage notes, paid
April 1996 3,419 385 221
Other notes and capital
lease obligations 3,366 3,859 11,335
-------- -------- --------
Total current liabilities 121,855 113,156 120,590
REVOLVING TERM NOTE PAYABLE 68 32,844 41,252
LONG-TERM DEBT AND CAPITAL
LEASE OBLIGATIONS 2,002 5,668 9,721
PENSION LIABILITY 8,206 8,270 3,827
OTHER LIABILITIES 15,005 9,796 12,131
-------- -------- --------
Total Liabilities 147,136 169,734 187,521
STOCKHOLDERS' INVESTMENT 19,108 73,795 69,110
-------- -------- --------
TOTAL LIABILITIES AND
STOCKHOLDERS' INVESTMENT $166,244 $243,529 $256,631
DALLAS, TX -- May 13, 1996 -- USTrails Inc. (OTC:USTQ)
today reported results for the three and nine month periods ended
March 31, 1996.
For the three months ended March 31, 1996, USTrails reported net
income of $8.0 million or $2.17 per share on revenues of $26.3
million, compared with net income of $196,000 or $.05 per share on
revenues of $23.2 million for the same period last year. For the
nine months ended March 31, 1996, USTrails reported net income of
$6.2 million or $1.66 per share on revenues of $70.0 million,
compared with a net loss of $5.7 million or $1.55 per share on
revenues of $68.6 million for the same period last year.
The results for the current three and nine month periods include
a $1.4 million extraordinary gain on the repurchase of Secured
Notes, and $4.7 million of nonrecurring income consisting of $4.1
million from a net reduction in the allowance for doubtful accounts
related to contracts and dues receivable, and $568,000 from the
reversal of a contingent liability.
The current three and nine month periods also include gains on
asset dispositions of $3.1 million and $4.0 million, respectively,
and restructuring costs of $79,000 related to the company's current
efforts to recapitalize or reorganize. The results for the prior
three and nine month periods include $3.7 million of nonrecurring
income consisting of $2.7 million from the reversal of a contingent
liability and $1.0 million from reductions in the allowances for
doubtful accounts and collection costs. The prior three and nine
month periods also include gains on asset dispositions of $21,000
and $499,000, respectively, and restructuring costs of $18,000 and
$573,000, respectively, related to the relocation of certain
administrative functions to Dallas, Texas.
Excluding the extraordinary gain, nonrecurring income, gains on
asset dispositions, and restructuring costs, the company would have
had a net loss of $1.1 million for the three months ended March 31,
1996, compared with a net loss of $3.5 million for the same period
last year. Excluding these same items, the company would have has a
net loss of $3.9 million for the nine months ended March 31, 1996,
compared with a net loss of $9.4 million for same period last year.
The improvement in the current three and nine month periods was due
primarily to decreases in expenses, principally campground operating
costs, general and administrative expenses and interest.
As previously disclosed, based on its current business plan,
USTrails believes that a recapitalization or reorganization of the
company and its subsidiaries will be required by no later than
fiscal 1997 to address the mandatory redemptions and maturity of the
company's 12 percent Secured Notes due 1998. USTrails and a
committee (the "Committee") of certain holders of the Secured Notes
have jointly retained a financial advisor to advise them on
recapitalization and reorganization alternatives for USTrails.
UsTrails intends to attempt to negotiate a recapitalization or
reorganization with the Committee; however, there is no assurance
that it will be able to reach any agreement with the Committee.
USTrails, through its subsidiaries Thousand Trails, Inc. and
National American Corporation (NACO), owns and operates a system of
58 membership- based campgrounds, which is one of the largest
private campground systems in the United States. USTrails also
manages timeshare facilities and owns certain real estate at eight
full service resorts and provides a reciprocal use program for
members of approximately 330 recreational facilities.
CONTACT: USTrails Inc. -
Harry J. White Jr., 214/243-2228
DURHAM, N.C. -- May 13, 1996 -- Coastal Physician
Group, Inc. (NYSE: DR) today announced that it will delay the
release of operating results for the first quarter ended March 31,
1996. Pursuant to a commitment letter recently issued by Coastal's
bank lenders, the Company is engaged in finalizing loan documents in
order to complete a definitive agreement to restructure its credit
facilities by the end of May. This has resulted in extraordinary
demands upon the time and attention of senior management.
"This has been a longer process than originally anticipated, and
we are optimistic about the progress we've made thus far," said
Steven M. Scott, M.D. chief executive officer of Coastal Physician
Group, Inc. "With the execution of the commitment letter on May
9th, we look forward to concluding the loan agreement within the
next couple of weeks, and hope to announce our operating results
soon."
The Company previously indicated it would report a net operating
loss for the first quarter. Following a review of preliminary
financial results, management expects the net loss for the first
three months of 1996 to be greater than Wall Street analysts'
estimates.
Coastal Physician Group, Inc. is a diversified physician
management company which provides a broad range of health care and
administrative services to physicians, hospitals, employers, managed
care programs and other health care providers.
CONTACT: Coastal Physician Group, Inc., Durham -
Robert P. Borchert, 919/383-0355