HAMILTON, Bermuda -- May 14, 1996 -- Sea Containers
Ltd., marine container lessor, ferry, train and port operator and
leisure industry investor, today reported its results for the first
quarter ended March 31, 1996. For the period net earnings were
breakeven before preferred share dividends (loss of $0.34 per common
share) on revenue of $105.3 million, compared with a loss of $5.8
million before preferred sshare dividends (loss of $0.88 per common
share) on revenue of $98.0 million in the first quarter of 1995.
The first quarter is traditionally a period of poor profitability
due to the seasonality of the company's ferry, port and hotel
businesses.
Operating profits from marine container leasing increased 10%
over the first quarter of 1995 to $21.8 million, ferry and port
operations recorded a 7% reduced loss to $4.1 million and leisure
operating profits were up 81% to $2.9 million, due primarily to
inclusion of the Charleston Place and '21' Club properties for the
first time, combined with improved performance from the Mount Nelson
Hotel in Cape Town, South Africa. The peak summer period for Cape
Town is the first quarter.
Net finance costs in this year's first quarter were down 14% to
$20.3 million as a result of debt reduction in 1995 and lower
interest rates. The net loss per common share was down 61% to $0.34
from $0.88 in the first quarter of 1995.
Mr. James B. Sherwood, President, said that the InterCity East
Coast Ltd. rail franchise had been taken over by the company's
Ferry, Train and Port Division on April 28, 1996. The second
quarter will therefore benefit from incorporation of two months of
these operations. He said he had just completed an inspection of
the northern half of the rail network and is convinced there is
great potential to expand this business. Telesales are showing
exponential growth. This system allows passengers to order tickets
by phone with credit card payment and the tickets mailed to the
traveller or made available for instant pickup at a special counter
at the departure station. All tickets have seats pre-assigned
according to customer request. He said that the railway is already
so popular that one of the first tasks will be to try and reschedule
trains so more journeys can be made with the existing 40 train sets.
Trains are already operating to capacity in peak periods. He said
that he had been most favorably impressed with the work force which,
now released from the shackles of state ownership, is brimming with
ideas and enthusiasm.
Mr. Sherwood said that profits from marine container leasing
had been held back in the first quarter due to bankruptcy of ABC
Line and heavy returns from a South American lessor which is exiting
the shipping business. The impact of these events is likely to
continue through the second quarter as the equipment is turned
around and re-leased.
He announced, as part of the Container Division's program to
expand its interest in fruit farming, that the Manicoba Grape Farm
near Petrolina, Brazil, had been acquired on April 29, 1996. This
farm produces two crops, primarily of white Italia grapes, each year
for sale on the domestic and export markets. In all other grape
growing regions of the world only one crop per annum is achieved.
The farm covers 270 hectares of which 79 hectares of grapes are in
production, with a current output of 2,100 tons annually.
Mr. Sherwood indicated the Container Division was seeking to
make additional investments in fruit farming in the region, which
has a semi-arid climate, 365 days of sunshine a year, high daytime
temperatures and water from the large San Francisco River.
He said that performance of the company's Hoverspeed subsidiary,
which operates fast ferry services across the English Channel, had
improved significantly over the prior year despite increasing
competition from Eurotunnel. Day trip shoppers prefer the speed and
convenience of Hoverspeed over the slow conventional ferries.
Vehicle carryings were up 95% and passengers 180%. More sailings
were operated than in the prior year to meet demand.
The Color SeaCat joint venture high speed ferry service between
Denmark and Norway was successfully inaugurated on April 30th.
The company's offer to acquire the remaining shares in the Isle
of Man Steam Packet Company was mailed to Steam Packet shareholders
on April 26th and the first closing for acceptances will be on May
17th.
The company's 1995 Annual Report to Shareholders has now been
mailed, along with Proxy Statements, for use at the annual meeting
of shareholders to be held at '21' Club (which is owned by the
company), 21 West 52nd Street, New York City at 2 p.m. on Tuesday,
June 4, 1996.
SEA CONTAINERS LTD. AND SUBSIDIARIES
SUMMARY OF OPERATING RESULTS (UNAUDITED)
Three months ended
March 31,
1996 1995
Container asset rental
and sales revenue $ 53,723,000 $ 53,121,000
Ferry and Port operations
revenue 19,905,000 19,837,000
Leisure operations revenue 28,745,000 22,275,000
Other revenue 2,966,000 2,782,000
Total revenue $105,339,000 $ 98,015,000
Earnings/(losses)
before finance
costs and income taxes:
Container asset rental
and sales $ 21,782,000 $ 19,834,000
Ferry and Port operations (4,148,000) (4,484,000)
Leisure operations 2,901,000 1,600,000
Other 68,000 313,000
20,603,000 17,263,000
Corporate costs (3,348,000) (3,285,000)
Net finance costs (20,295,000) (23,727,000)
Losses before income taxes (3,040,000) (9,749,000)
Provision for income taxes (3,050,000) (3,955,000)
Net earnings/(losses) 10,000 (5,794,000)
Preferred share dividends (3,896,000) (3,932,000)
Net losses on class A and
class B common shares $ (3,886,000) $(9,726,000)
Net losses per class A and
class B common share:
Primary $ (0.34) $ (0.88)
Fully diluted $ - $ -
Weighted average number of
class A and class B common shares:
Primary 11,361,780 11,058,056
Fully diluted - -
SEA CONTAINERS LTD. AND SUBSIDIARIES
CONSOLIDATED AND CONDENSED BALANCE SHEETS
(UNAUDITED)
March 31, December 31,
1996 1995
Containers, Cranes, Chassis
and Ships, net book value $ 867,791,000 $ 879,149,000
Real estate and other
fixed assets, net
book value 420,804,000 414,382,000
Assets under capital leases, net
book value 32,076,000 33,073,000
Cash 64,850,000 63,567,000
Receivables 198,666,000 193,550,000
Inventories 23,122,000 23,898,000
Investments 49,318,000 48,320,000
Other assets 60,166,000 55,421,000
$1,716,793,000 $1,711,360,000
Liabilities with respect
to Containers,
Chassis and Ships $ 647,613,000 $ 641,053,000
Bank loans with respect to
real estate and
other fixed assets 207,528,000 181,608,000
Obligations under capital
leases 28,312,000 29,320,000
Other liabilities 204,353,000 223,373,000
9-1/2% senior notes 100,000,000 100,000,000
12-1/2% senior subordinated
debentures 123,213,000 123,161,000
10-1/4% subordinated
debentures 16,000,000 16,000,000
Redeemable preferred shares 55,224,000 55,224,000
Shareholders' equity 725,811,000 732,882,000
Class B common shares with voting
rights owned by subsidiaries (391,261,000) (391,261,000)
$1,716,793,000 $1,711,360,000
CONTACT: Jennifer Hawkins
Sea Containers America Inc.
212/302-5066
or
William W. Galvin
212/838-5454
MILFORD, Conn. -- May 14, 1996 -- EXECUTONE
Information Systems, Inc. (NASDAQ:XTON) today announced revenues for
the first quarter ended March 31, 1996, of $67.0 million, a decrease
of $3.8 million, or 5.4%, compared to revenues of $70.8 million for
the quarter ended March 31,1995. The Company reported a loss of
$2.5 million for the quarter, or $.05 per share, compared to net
income of $ 0.1 million, or $0.0 per share, in the first quarter of
1995.
Alan Kessman, President and CEO, stated, "The first quarter
results were adversely affected by two factors. First, the
previously announced negotiations with the group led by Bain
Capital, Inc. to sell the Company's Computer Telephony Direct Sales
and Service operations and its Long Distance reseller business
extended longer than expected. This, combined with the uncertainty
associated with the transaction, prevented the Company from
implementing some of its planned strategic initiatives including
certain cost savings actions which are now being implemented.
Second, due to product issues affecting the videoconferencing
division and negotiations with GPT, the equipment supplier, the
Company experienced revenue shortfalls and absorbed operating losses
for the videoconferencing division which were not planned for.
Since the close of the quarter, EXECUTONE has made significant
progress in dealing with both issues."
Kessman continued, "The Company is now in the process of
restructuring our management organization and streamlining its
operations. The initiatives have begun and the process is expected
to continue throughout the quarter. The net anticipated result is
that the Company expects to realize approximately $2.0 million per
quarter of cost savings beginning in the third quarter."
The transaction with Bain Capital, Inc. is expected to close on
May 30, 1996. The agreed purchase price is $67.4 million dollars,
of which $61.5 million is in cash. This will enable Executone to
eliminate its long-term bank debt, fund additional research and
development, and invest in sales and marketing.
To address the problems in the videoconferencing division, the
Company initiated two actions. First, it terminated its
distribution agreement with GPT. The Company is awaiting the result
of a 30-day discussion period pursuant to its contract with GPT
before it initiates other actions for recovery of losses incurred
due to GPT's failure to deliver satisfactory videoconferencing
product under the contract.
The Company also announced today that it has entered into a
memorandum of understanding to transfer elements of its
videoconferencing business to BT Visual Images L.L.C. (BTVI). Final
terms for the BTVI transaction are currently being incorporated in a
definitive agreement. These terms provide for the possible transfer
of certain employees and inventory to BTVI, as well as compensation
to Executone for maintenance revenue and commissions on future
sales.
EXECUTONE Information Systems, Inc. develops, markets and
supports voice and data processing systems and health care
communications systems. Products and services include telephone
systems, voice mail systems, in-bound and outbound call center
systems, specialized healthcare communications systems and
application consulting services. Products and services are sold
under the EXECUTONE, INFOSTAR, IDS, LIFESAVER and INFOSTAR/ILS brand
names.
Executone Information Systems Inc.
Consolidated Statements of Operations
(unaudited)
(in thousands, except per share amounts)
Three Months Ended
March 31,
1996 1995
Revenues
Product $ 30,243 $ 31,948
Base 36,723 38,860
-------- --------
66,966 70,808
Cost of revenues 40,486 42,459
Gross profit 26,480 28,349
Operating expenses:
Product development and
engineering 3,764 3,707
Selling, general and
administrative 26,274 23,804
-------- --------
30,038 27,511
Operating income (loss) (3,558) 838
Interest and other expenses, net 592 638
Income (loss) before income taxes (4,150) 200
Provision (benefit) for income taxes (1,660) 80
Net income (loss) $(2,490) $ 120
Earnings (loss) per share $ (0.05) $ .00
Weighted shares of common stock
and equivalents outstanding 51,853 48,838
Executone Information Systems Inc.
Consolidated Balance Sheets
March 31, Dec. 31,
(In Thousands) 1996 1995
(Unaudited)
Assets
Current Assets
Cash and cash equivalents $6,280 $8,092
Accounts receivable, net 43,718 48,531
Inventories 36,380 32,765
Prepaid expenses and other current assets 4,587 6,584
Total current assets 90,965 95,972
Property & equipment, net 18,781 18,462
Intangible assets, net 19,990 20,022
Deferred taxes 31,376 29,616
Other assets 3,199 3,772
Total assets $164,311 $167,844
Liabilities and stockholders' equity
Current liabilities
Current portion of long-term debt $ 938 $ 932
Accounts payable 30,869 30,676
Accrued payroll and related costs 8,558 6,870
Accrued liabilities 9,218 11,851
Deferred revenue and customer deposits 20,409 19,781
Total current liabilities 69,992 70,110
Long-term debt 28,879 29,829
Long-term deferred revenue 2,780 2,805
101,651 102,744
Stockholders' Equity
Common stock 519 517
Preferred stock 7,300 7,300
Additional paid-in capital 79,716 79,668
Retained earnings (deficit) (24,875) (22,385)
Total stockholders' equity 62,660 65,100
Total liabilities and equity $164,311 $167,844
INDIANAPOLIS, IN -- May 14, 1996 -- href="chap11.burlington.html">Burlington Motor
Holdings Inc. including its operating affiliates and The Celadon
Group (CLDN:NASDAQ) today jointly announced the execution of a
letter of intent for Celadon to acquire a substantial portion of
Burlington's operating assets and business.
Celadon intends to acquire approximately 1,400 tractors and
approximately 4,000 trailers as part of the purchase. Celadon will
need Burlington's drivers and a large number of its other employees.
The acquisition is contingent upon satisfactory due diligence
investigation, final documentation, and approval of a plan of
reorganization in Burlington's chapter 11 cases. Celadon will
provide management advisory services to Burlington until
execution of a definitive agreement, at which time, subject to
bankruptcy court approval, the Burlington and Celadon management
teams will combine to manage operations until completion of the
acquisition which is expected to take approximately three months.
Ralph Arthur, president of Burlington, stated that the Celadon
transaction provided "the highest and best proposal for Burlington's
creditors, and will allow Burlington as part of Celadon to continue
its track record of providing the highest level of excellent service
to its customers. We believe our customers and creditors will be
fully supportive of this transaction."
Len Bennett, president of Celadon stated that "Celadon believes
that Burlington's strong relationships with domestic shippers makes
Burlington a perfect fit with Celadon's existing programs in Mexico
and Canada and will allow Celadon to achieve significant economies
of scale."
Celadon is headquartered in Indianapolis while Burlington is
located approximately 40 miles away.
CONTACT: Celadon Group
Len Bennett, 317/972-7002
Don S. Snyder, 317/972-7033
or
Burlington Motor Holdings Inc.
James G. Overley, 317/378-4119
HARRISBURG, Pa., May 14, 1996 - The founder of the
bankrupt Foundation for New Era
Philanthropy is barred from serving
in a significant role for any charity in Pennsylvania under a
Commonwealth Court agreement announced today by Attorney General Tom
Corbett.
"This agreement means that John G. Bennett Jr. cannot be an
administrator, a fund-raiser, a consultant, or even a clerical
worker for any charity in the Commonwealth in the future," Corbett
said.
The Attorney General's office sued Bennett and his Foundation
for New Era Philanthropy in Commonwealth Court last May, a day after
Radnor-based New Era filed for bankruptcy, owing millions of dollars
to individuals and nonprofit groups. The suit charged that the
defendants defrauded many of the charitable institutions they
promised to help.
The Attorney General's office agreed in June to remove New Era
as a defendant, saying that forcing New Era to litigate the suit
would deplete funds that ultimately can be used by the Bankruptcy
Court for restitution to charities that lost their investments.
The office announced in July that it was joining with the U.S.
Attorney's Office for the Eastern District of Pennsylvania in a
criminal investigation of the New Era collapse. That investigation
is continuing, Corbett said.
The New Era liquidation in U.S. Bankruptcy Court is under the
direction of permanent trustee Arlin M. Adams, who is collecting New
Era's assets.
A bankruptcy judge recently approved a settlement under which
Bennett will surrender to the trustee cash and property worth about
$1.2 million - virtually everything Bennett owns.
Neither the bankruptcy court settlement nor Corbett's settlement
protects Bennett from criminal prosecution or from suits by other
parties.
The Attorney General's settlement was negotiated by Chief Deputy
Attorney General Janice L. Anderson and Senior Deputy Attorney
General Mary Beth O'Hara Osborne of the Attorney General's
Charitable Trusts and Organizations Section.
The settlement permanently enjoins Bennett from all of the
following in connection with charitable organizations or nonprofit
corporations in Pennsylvania:
Anderson said Bennett is not barred from serving as a volunteer
for a charity, provided he is not involved in any of the prohibited
activities.
Under terms of the settlement, Bennett "disputes the
allegations" contained in the Attorney General's suit.
CONTACT: Jack Lewis, Press Secretary of the Office of Attorney
General, 717-787-5211, or home, 717-657-9840
BRIGHTON, Mich., May 14, 1996 - href="chap11.fretter.html">Fretter, Inc., (OTC
Bulletin Board: FTTR) announces record loss of $222,000,000 ($21.02
per share) on sales of $502,317,000 for fiscal year ended January
31, 1996. Such sales and loss reflect the inclusion of the
Company's wholly owned subsidiaries, principally Dixons U.S.
Holdings, Inc., which is the former Silo consumer electronics and
appliance store chain. Dixons U.S. Holdings, Inc. and its
subsidiaries filed for voluntary Chapter 11 Bankruptcy proceedings
on December 4, 1995. Of the losses suffered by the Company,
$200,000,000 is attributable to the Dixons U.S. Holdings, Inc.
operations.
Fretter also announces that the Company has closed its stores,
and those of its subsidiaries in all markets except for Metropolitan
Detroit, Michigan where it currently operates ten retail consumer
electronic and appliance stores. Given the Company's significant
operational losses, its significant curtailment of operating
activities, its working capital deficiency and limited financing,
the Company has applied for going out of business permits in each
municipality in which it currently operates stores and currently
intends to institute going out of business sales in each of its
remaining stores.
Fretter continues to explore alternative retail marketing
concepts involving substantially larger retail stores, both in
relation to existing Fretter stores and those of its major
competitors. The ability of the Company to exploit this new retail
concept is dependent on a number of factors, including feasibility
of such store format; reversing the Company's lack of liquidity;
developing new sources of financing for inventory and capital
improvements; and favorable resolution of significant litigation
matters - principally related to the Dixons bankruptcies.
Accordingly, the Company likely will either restrict its business to
the leasing and sale of its remaining portfolio of owned real estate
or seek protection under the United States Bankruptcy Code to either
liquidate its remaining assets in partial satisfaction of its
creditors' claims or to restructure its debts and restrict its
business to the leasing and sale of its real estate holdings.
The following is a summary of selected financial data for the
Company for its most recent five fiscal years. The Company today
filed with the United Sates Securities and Exchange Commission its
Annual Report on Form 10-K which may be consulted for a more
complete description of the Company and its financial condition.
Twelve Months Ended
(Dollar amounts in thousands except per share data)
Jan. 31 Jan. 31 Jan. 31 Jan. 31 Jan. 31
1996 1995 1994 1993 1992
Net sales $502,317 $858,849 $545,508 $361,603 $292,698
Net (loss)
earnings available
for common
shareholders $(222,367) $3,665 $(1,096) $5,719 $4,003
(Loss) earnings
per common
share $(21.02) $.35 $(.14) $.77 $.55
Total assets $101,514 $468,608 $456,802 $177,131 $164,431
Short-term
obligations $48,459 $4,601 $590 $534 $1,577
Long-term
obligations less
current portion $42,045 $145,961 $88,584 $40,939 $41,302
Shareholders'
equity
(deficit) $(188,308) $34,359 $30,994 $64,019 $57,307