LAS VEGAS, NV -- May 16, 1996 -- href="chap11.elsinore.html">Elsinore Corporation
(ASE/PSE:ELS) today reported financial results for the company's
first quarter ended March 31, 1996.
Elsinore reported revenues of $15,886,000 for the first-quarter,
compared with $15,261,000 for the first quarter of 1995. The
company reported net income of $344,000, or $0.02 per share on
15,891,793 weighted average shares outstanding, compared with a net
loss of $4,132,000, or $0.28 per share on 14,801,884 weighted
average shares outstanding, for the first-quarter of 1995. First-
quarter revenues improved primarily as a result of increased
patronage at the Four Queens Hotel and Casino, the company's primary
business. Operating results and cash flows improved because of the
increase in patronage and the protection afforded the Company by the
bankruptcy laws as reorganization proceedings continued during the
three month period ended March 31, 1996.
The company reported that first-quarter revenues from the Four
Queens Hotel and Casino increased to $15,894,000 from $14,710,000.
The increase resulted primarily from an overall growth in the number
of visitors to Las Vegas and by a greater number of gaming and hotel
patrons attracted to the downtown Las Vegas Fremont Street
Experience, which features a 10-story "celestial vault" canopy with
an electronic light show choreographed to music, that opened on
December 13, 1995. The Fremont Street Experience project has
connected the Four Queens and nine other major entertainment venues
in a downtown pedestrian mall that offers a total of 17,000 slot
machines, 650 blackjack and other table games, 41 restaurants and
8,000 hotel rooms.
On March 1, 1996, Elsinore announced that it had filed with the
U.S. Bankruptcy Court for the District of Nevada, a proposed Plan of
Reorganization and an accompanying Disclosure Statement related to
the company's filing for Chapter 11 protection on October 31, 1995
under the U.S. Bankruptcy Code.
Trading in the company's common stock continues to be halted by
the American Stock Exchange. As previously reported, the Exchange
intends to review the company's continued listing eligibility
concurrently with its progress in the Chapter 11 proceeding.
Elsinore Corporation owns and operates the Four Queens, a
downtown Las Vegas Hotel and Casino offering 690 rooms, meeting
facilities, four restaurants, 1050 slot machines, and numerous
blackjack, craps and other table games.
ELSINORE CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL INFORMATION
STATEMENTS OF OPERATIONS INFORMATION
(Dollars in thousands, except per share data)
(unaudited)
Three Months Ended
December 31,
1996 1995
Net Revenues $15,886 $15,261
Income (Loss) Before Income Taxes $344 $(4,132)
Income Taxes 0 0
Net Income (Loss) $344 $(4,132)
Income (Loss) Per Share $0.02 $(0.28)
Weighted Average Number of
Shares Outstanding 15,891,793 14,801,884
BALANCE SHEET INFORMATION
(Dollars in thousands)
March 31, December 31,
1996 1995
(unaudited)
Current assets $7,972 $5,578
Total assets 38,787 37,101
Current liabilities 7,941 6,182
Long-Term Debt 62,897 62,858
Shareholders' Deficit (43,097) (43,441)
CONTACT: Elsinore Corporation
Thomas E. Martin
Chief Executive Officer
702/387-5110
or
The Financial Relations Board
Daniel Saks
General Info
310/442-0599
WHEELING, Ill. -- May 16, 1996 -- SPORTMART, INC.
(NASDAQ/NM: SPMT, SPMTA) today announced net sales from continuing
operations of $116.2 million for the first quarter ended April 28,
1996, an increase of 12.6 percent over net sales of $103.2 million
reported for the comparable year-ago period. Comparable mart sales
(units open more than one year) decreased 1.9 percent during the
quarter.
Operating income during the quarter was $598,000 versus a loss
in the prior year of $763,000. Net loss from continuing operations
for the quarter was $877,000, or $0.07 per share versus a net loss
of $985,000, or $0.08 per share reported for the comparable year-ago
period.
Andrew S. Hochberg, President of Sportmart, Inc., said, "We are
very pleased with the improvement we were able to deliver in
operating income despite the slightly negative comparable mart sales
performance during what is traditionally a tough quarter for the
Company. We are especially pleased with our results in this highly
competitive environment. We have super-store competition in most of
our markets and we have still achieved these comparable mart sales
results with increased margins. Sales per mart in Canada, while
improving, remained at lower than projected volumes."
Mr. Hochberg continued, "We are also very pleased with the
improvement in the gross margin rate during the quarter, which we
believe is a direct result of our continued emphasis on controlling
inventory levels. In fact, our average inventory levels per mart
decreased at the end of this year's first quarter by approximately
11 percent versus the prior year. Our expenses were also well
controlled as evidenced by the fact that the expense rate, as a
percent to sales, was 21.5 percent during this year's first quarter
versus 22.1 percent last year. Our focus is on continuing to
improve our existing super-store business during fiscal 1996 through
the reorganization of our merchandising into four divisions, or
`Four Worlds' which will allow us to integrate softlines and
equipment to make Sportmart an even more exciting and easier place
to shop. For the future we will be allocating floor space and
inventory dollars in a manner that stimulates the customer's
interest and adds to bottom line results. Finally, we are limiting
our new mart openings to no more than six this year, of which four
have already opened."
SPORTMART currently operates 71 SPORTMART sporting goods super-
stores, compared with 57 SPORTMART sporting goods super- stores and
four No Contest! athletic footwear and apparel super- stores at the
end of the first quarter of last year.
"Safe Harbor" Statement
under the private Securities Litigation Reform Act of 1995: The
statements which are not historical facts contained in this release
are forward looking statements that involve risks and uncertainties,
including, but not limited to, the effect of economic conditions
generally, and retail and sporting goods business conditions
specifically, the impact of competition, the results of financing
efforts, changes in consumer preferences and trends, weather
conditions and other risks detailed in the Company's Securities and
Exchange Commission fillings.
SPORTMART, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share data)
First Quarter Ended
April 28, April 30,
1996 1995
Net sales $116,209 $103,193
Cost of sales, including buying,
distribution and occupancy 90,590 81,167
Operating Expenses:
Mart and general and
admin. expenses 24,904 22,705
Mart pre-opening expenses 117 84
Operating income (loss) 598 (763)
Interest, net (1,966) (1,150)
Other (expense) income (152) 163
Loss from continuing operations
before income taxes (1,520) (1,750)
Income tax benefit (643) (765)
Loss from continuing operations (877) (985)
Loss from discontinued operations,
net of income taxes - (158)
Net loss $ (877) $ (1,143)
Net loss per share:
Loss from continuing
operations $ (0.07) $ (0.08)
Loss from discontinued
operations $ - $ (0.01)
Loss per share $ (0.07) $ (0.09)
Weighted average number of
common shares outstanding 12,798,000 12,783,000
SPORTMART, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
April 28, January 28,
1996 1996
ASSETS
Current assets:
Cash and cash equivalents $ 6,352 $ 4,017
Merchandise inventories 186,929 174,952
Other assets 24,594 30,567
Total current assets 217,875 209,536
Property and equipment, net 75,251 72,040
Other assets 6,036 5,923
Total assets $ 299,162 $ 287,499
LIABILITIES AND
STOCKHOLDERS' EQUITY
Notes payable $ 33,115 $ 18,213
Accounts payable 76,103 67,297
Other current liabilities 31,947 43,703
Total current liabilities 141,165 129,213
Long-term liabilities 57,837 57,490
Total liabilities $ 199,002 $ 186,703
Stockholders' equity:
Common stock 128 128
Additional paid-in capital 79,810 79,637
Cumulative translation
adjustment 56 (12)
Retained earnings 20,166 21,043
Total stockholders' equity $ 100,160 $ 100,796
Total liabilities
and stockholders' equity $ 299,162 $ 287,499
CONTACT: Tom Hendrickson
Chief Financial Officer
(847) 520-0100, ext. 422
or
Lippert/Heilshorn
John G. Nesbett
(212) 838-3777, ext. 101
NEW YORK -- May 16, 1996 -- MOVIE STAR INC. (ASE:
MSI) today reported results for the third quarter and nine months
ended March 31, 1996.
The Company reported that its results continue to be adversely
affected by lower sales and insufficient gross profits. The decline
in sales is primarily attributable to the popular priced intimate
apparel product line. Throughout the current fiscal year the
Company has been confronted with a weak and highly competitive
market for its products. The Company announced that it will
continue its efforts to reduce expenses to bring overhead into line
with anticipated sales volume and gross profits.
Commenting, Movie Star's Chairman & CEO, Mark M. David stated,
"During the past six months our energy has been successfully
directed toward the consolidation and realignment of our intimate
apparel divisions, the restructuring of a significant portion of our
long-term debt, replacement of our short-term credit facility with a
new lender and the settlement of leasehold obligations for some of
the space we no longer need. As a result, we now operate our
business as a single cohesive unit on one floor and have reduced our
overhead in excess of $2 million per year, our long-term debt will
be more manageable and our short-term credit facility, under which
we now have approximately $5,000,000 in availability, is better
designed to accommodate our increased emphasis on import operations.
In addition, we have closed more domestic manufacturing facilities
to further reduce the costs attributable to excess capacity. Every
employee of Movie Star is now dedicated to the task of improving our
Company's operation and financial performance."
MOVIE STAR, INC. produces and sells ladies sleepwear, robes,
leisurewear, loungewear, panties and daywear and also operates 25
retail outlet stores.
MOVIE STAR, INC.
Consolidated Condensed Statements of Operations
(Unaudited)
(In Thousands, Except Per Share Amounts)
Three Months Ended Nine Months Ended
March 31, March 31,
1996 1995 1996 1995
Net sales $12,408 $17,327 $70,056 $85,764
Cost of sales 9,633 13,329 56,296 66,349
Gross profit 2,775 3,998 13,760 19,415
Selling, general and
administrative expenses 3,919 5,237 13,679 15,521
Estimated loss on
abandonment of leased
premises - - 1,170 -
Interest expense 794 955 3,169 3,504
4,713 6,192 18,018 19,025
(Loss) income before
(benefit from) provision
for income taxes (1,938) (2,194) (4,258) 390
(Benefit from) provision
for income taxes - (878) - 156
Net (loss) income $(1,938) $(1,316) $(4,258) $ 234
Net (loss) income
per share $ (.14) $ (.09) $ (.31) $ .02
Weighted average number
of shares outstanding 13,959 13,959 13,959 13,959
CONTACT: Movie Star, Inc.
Saul Pomerantz, CFO (212) 684-3400
or
INVESTOR RELATIONS COUNSEL:
The Equity Group Inc.
Linda Latman (212) 836-9609
SEATTLE, WA -- May 16, 1996 -- MIDCOM Communications
Inc. (NASDAQ: MCCI) today reported a net loss for the quarter ended
March 31, 1996 of $14.5 million, or $0.95 per share, compared to a
net loss of $1.3 million, or $0.14 per share, in the same period of
1995.
Revenue for the quarter rose 16 percent to $53.1 million from
$45.6 million a year ago. The increase stemmed primarily from
incremental sales resulting from strategic acquisitions completed in
the second half of 1995 and, to a lesser extent, from new sales
acquired through the company's combined sales channels, offset by
the impact of attrition.
Gross margins were $15.1 million in the 1996 quarter, down from
$15.8 million in 1995's first quarter. As a percent of sales, gross
margins fell to 28.5 percent from 34.6 percent. The decline in
gross margin is primarily attributable to both an increase in
wholesale revenues as a percentage of total revenues, and other
changes in the mix of customers.
Selling, general and administrative expenses (SG&A) increased to
$16.5 million, up 23 percent over first quarter of 1995. The
increase was due to higher bad debt expenses, personnel costs
related to development of management information systems,
professional fees and fees paid to third party billing agents.
MIDCOM's net loss was also affected by an increase in
amortization expense to $8.8 million from $1.5 million in the
comparable quarter of 1995. This increase was primarily due to a
reduction in the estimated useful life of acquired customer bases
from five years to three years.
Amortization related to customers bases, non-competition
agreements and goodwill resulting from acquisitions completed in the
second half of 1995 also contributed to the increase.
"In conjunction with the preparation of the first quarter
financial statements, the company reviewed its acquisition-related
intangible assets," said Bob Chamberlain, chief financial officer.
"Based on certain changes in circumstances that occurred in the
first quarter, including personnel turnover, sales force reduction
and continued attrition of acquired customer bases, we determined
that, effective January 1, 1996, a reduction in the estimated useful
life of acquired customer bases was appropriate."
MIDCOM restructured its operations in March and April 1996 to
reduce expenses and announced changes in senior management. The
company recorded a one-time charge of approximately $1.6 million
related to its restructuring which is expected to yield annualized
savings of up to $3.5 million.
"We continue to look closely at our operations to find ways to
reduce expenses and improve margins, without impacting service to
our customers," said Paul H. Pfleger, president and chief executive
officer. "At the same time, we have also made improvements in our
operations, particularly in the timeliness of our billing. MIDCOM
has a continuing need to obtain additional working capital and is
actively pursuing a number of possible sources, as well as other
strategic financial alternatives."
"Fundamentally, our core business remains sound," Pfleger added.
"While results for the first quarter were affected by non-cash
expenses associated with increased amortization of acquired customer
bases, expensing of information systems development and
restructuring, there are also long term benefits associated with
these actions."
Forward-Looking Statements
Statements in this news release concerning future results,
performance, cost-savings or expectations are forward-looking
statements. Actual results, performance, cost-savings or
developments could differ materially from those expressed or implied
by such forward-looking statements as a result of known and unknown
risks, uncertainties and other factors including those identified in
the company's 1995 Annual Report on Form 10-K and those described
from time to time in the company's other filings with the Securities
and Exchange Commission, press releases and other communications.
Founded in 1989, MIDCOM Communications Inc. provides a broad
range of telecommunications services to small- and medium-sized
businesses nationwide. The company is headquartered in Seattle,
Washington and has regional offices throughout the nation. MIDCOM
currently serves more than 150,000 customers.
MIDCOM COMMUNICATIONS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
THREE MONTHS ENDED
MARCH 31,
1996 1995
(Restated)
Revenues $53,055 $45,572
Cost of Revenues 37,947 29,807
Gross Profit 15,108 15,765
Operating Expenses:
Selling, general and administrative 16,471 13,175
Depreciation 1,351 848
Amortization 8,678 1,460
Restructuring charges 1,620 --
Total Operating Expenses 28,120 15,483
Operating Income (Loss) (13,012) 282
Other Expenses:
Interest expense 1,366 1,547
Equity in loss of joint venture -- 53
Other expense, net 122 18
Total Other Expenses 1,488 1,618
Loss Before Income Taxes (14,500) (1,336)
Income Tax Expense -- --
Net Loss $(14,500) $(1,336)
Net Loss Per Share $(0.95) $(0.14)
Shares used in computing per share
data 15,199 9,420
ROCKY HILL, Conn. -- May 16, 1996 -- Ames
Department Stores Inc.(NASDAQ:AMES) today reported a narrowing of
its first-quarter net loss to $7.0 million, or 34 cents per share,
for the quarter ended April 27, 1996, compared with a net loss of
$11.1 million, or 55 cents per share, for the prior year's first
quarter.
Net sales for the first quarter were $438.7 million, compared
with net sales of $438.3 million in the prior year's first quarter.
Comparable-store sales for the quarter, based on 286 stores,
decreased 1.7 percent. Net sales for last year have been restated
to reflect the effect of recording 55 Gold discounts as markdowns,
which conforms with the current-year treatment.
Joseph R. Ettore, President and Chief Executive Officer, said,
"We were pleased to report an improvement in first-quarter
performance, particularly in light of the generally soft Northeast
economy. Although first-quarter net sales were essentially flat,
the gross margin rate improved by approximately 50 basis points to
26.8 percent.
"Due to our continuing efforts to operate more efficiently and
reduce costs, selling, general and administrative expenses for this
year's first quarter were $5.2 million less than last year's first
quarter, and merchandise inventories at the end of the period were
$42.5 million less than at the end of the same period last year," he
said.
"During the first quarter, we opened 10 new stores, which have
been met with positive enthusiastic customer response and are
currently generating strong sales results," Ettore said.
Ames, which operates 300 stores in 14 Northeastern states and
the District of Columbia, is the nation's fifth-largest discount
retailer with annual total sales of $2.1 billion.
AMES DEPARTMENT STORES INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
For the Thirteen
Weeks Ended
April 27, April 29,
1996 1995
TOTAL SALES $455,677 $457,068 Less: Leased
department
sales 17,010 18,756 NET SALES
438,667 438,312
COSTS, EXPENSES AND (INCOME): Cost of merchandise sold 321,265
322,967 Selling, general and
administrative expenses 127,802 133,041 Leased department
and other
operating income (5,774) (6,254) Depreciation
and amortization
expense 2,620 1,941 Amortization of
the excess of
revalued net assets over equity
under fresh-start reporting (1,538) (1,538) Interest and
debt expense, net 4,239 5,121
INCOME (LOSS) BEFORE OTHER
(CHARGES) AND GAINS (9,947) (16,966)
Gain on disposition of
properties -- 991 INCOME (LOSS)
BEFORE INCOME
TAXES (9,947) (15,975) Income tax
benefit 2,949 4,834
NET INCOME (LOSS) $(6,998) ($11,141)
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING 20,472 20,127
NET INCOME (LOSS) PER SHARE ($0.34) ($0.55)
Results of Operations as a
Percent of Net Sales: Net sales 100.0%
100.0% Cost of merchandise sold 73.2 73.7 Gross
margin 26.8 26.3 Selling, general and
administrative expenses 29.1 30.4 Leased
department and other
operating income (1.3) (1.4) Depreciation and
amortization
expense 0.6 0.4 Amortization of
the excess of
revalued net assets over equity
under fresh-start reporting (0.4) (0.4) Interest and
debt expense, net 1.0 1.2 Income (loss) before other
(charges)
and gains (2.3) (3.9) Gain on
disposition of
properties -- 0.2 Income (loss)
before income taxes (2.3) (3.7) Income tax benefit
0.7 1.1 Net income (loss) (1.6%) (2.6%)
(Please see the accompanying condensed notes to these consolidated
condensed financial statements.)
AMES DEPARTMENT STORES INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)
(Unaudited)
April 27, Jan. 27, April 29,
1996 1996 1995
ASSETS
Current assets:
Cash and short-term investments $18,851 $14,185
$20,169
Receivables 24,585 14,478
25,121
Merchandise inventories 477,960 402,177
520,504
Prepaid expense and other
current assets 20,081 12,793
14,873
Total current assets 541,477 443,633
580,667 Fixed assets 84,965 78,487
54,258 Less -- Accumulated depreciation and
amortization (22,547) (20,259)
(9,628) Net fixed assets 62,418 58,228
44,630
Other assets and deferred charges 5,806 3,965
5,022
$609,701 $505,826 $630,319
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable:
Trade $171,586 $112,682
$150,888
Other 38,944 43,636
35,116
Total accounts payable 210,530 156,318
186,004
Note payable -- revolver 83,480 4,284
103,147
Current portion of long-term debt
and capital lease obligations 17,001 17,347
19,429
Self-insurance reserves 37,692 39,003
45,393
Accrued expenses and other current
liabilities 51,384 54,943
57,923
Restructuring reserve 22,224 30,623
2,551
Total current liabilities 422,311 302,518
414,447
Long-term debt 13,962 23,159
29,581 Capital lease obligations 31,785 29,372
36,730 Other long-term liabilities 6,144 6,322
6,258
Unfavorable lease liability 18,252 18,672
22,432 Excess of revalued net assets over
equity under fresh-start reporting 40,942 42,480
47,095 Commitments and contingencies
Stockholders' equity:
Common stock 205 205
201
Additional paid-in capital 80,759 80,759
80,759
Retained earnings
(accumulated deficit) (4,659) 2,339
(7,184)
Total stockholders' equity 76,305 83,303
73,776
$609,701 $505,826 $630,319
Basis of Presentation: In the opinion of management, the
accompanying consolidated condensed financial statements of Ames
Department Stores, Inc., and subsidiaries (collectively the
"Company")
contain all adjustments necessary for a fair presentation of such
financial statements for the periods presented. Certain prior year
items have been reclassified to conform to the current year
presentation. Due to the seasonality of the Company's operations,
the results of operations for the interim period ended April 27,
1996
may not be indicative of total results for the full year. Certain
information normally included in financial statements prepared in
accordance with generally accepted accounting principles has been
condensed or omitted. The accompanying financial statements should
be read in conjunction with the financial statements and notes
thereto included in the Company's Form 10-K filed in April, 1996.
Earnings Per Common Share: Earnings per share was determined using
the weighted average number of common shares outstanding. Common
stock equivalents and fully diluted earnings per share were excluded
as their inclusion would have reduced the reported loss per share.
Inventories: Inventories are valued at the lower of cost or market.
Cost is determined by the retail last-in, first-out (LIFO) cost
method for all inventories. No LIFO reserve was necessary at April
27, 1996, January 27, 1996 and April 29, 1995.
Debt: The Company has an agreement with BankAmerica Business Credit,
Inc., as agent, and a syndicate consisting of seven other banks and
financial institutions, for a secured revolving credit facility of
up to $300 million, with a sublimit of $100 million for letters of
credit (the "Credit Agreement"). The Credit Agreement is in effect
until June 22, 1997, is secured by substantially all of the assets
of the Company, and requires the Company to meet certain quarterly
financial covenants. The Company is in compliance with these
financial covenants through the quarter ended April 27, 1996.
Income Taxes: The Company's estimated annual effective income tax
rate for each year was applied to the loss incurred before income
taxes for the thirteen weeks ended April 27, 1996 and April 29,
1995 to compute non-cash income tax benefits of $2.9 million and
$4.8 million, respectively. The Company currently expects that, as
a result of the seasonality of the Company's business, this year's
income tax benefit will be offset by non-cash income tax expense in
the remaining interim periods. The income tax benefits are included
in other current assets in the balance sheets as of April 27, 1996
and April 29, 1995.
CONTACT: Marge Wyrwas, 203/257-2659 -
Bill Roberts, 203/257-2666 -
Lynn Riemer, 203/257-2655
ATLANTIC CITY, N.J. -- May 16, 1996 -- href="chap11.amgam.html">American
Gaming & Entertainment Ltd. (OTC Bulletin Board: "AGEL"; the
"Company") reported, as previously disclosed in its Form 10-QSB
filed with the Securities and Exchange Commission, that net losses
for common stockholders for the three months ended March 31, 1996
were approximately $697,000 or ($0.06) per share as compared to
$5,200,000 or ($0.42) per share for the comparable period in 1995.
Such decrease in net loss for common stockholders was primarily
attributable to (i) an increase in revenues of $986,000 related to
the charter of the Gold Coast Casino barge to President Mississippi
Charter Corporation, (ii) a decrease of $936,000 in personnel and
legal expenses associated with Company's change in business
direction in 1996 from the development of gaming projects to the
management of its equity interests in gaming projects, (iii) a
decrease of $1,544,000 in equity in losses related to the operations
of the Company's two Mississippi subsidiaries currently in
bankruptcy, for which no such losses were recorded in the three
months ended March 31, 1996, and (iv) a net gain of $948,000 on the
sale of the Company's keno assets.
The Company also announced that J. Douglas Wellington, the
Company's General Counsel and Secretary, was elected as Controller
and Principal Accounting Officer.
The Company's Common Stock is traded on the OTC Bulletin Board
under the symbol "AGEL".
CONTACT: William I. Fasy;
President & Chief Executive Officer (609/272-7700)
BRAINTREE, Mass., May 16, 1996 - The Board of Directors
of Bradlees, Inc. (NYSE: BLE)
today announced that it has elected
John M. Friedman, Jr. to the Board.
Mr. Friedman is an attorney and former partner at the law firm
of Dewey Ballantine. He joined the firm in 1970 and was admitted as
a Partner in 1978. Mr. Friedman's professional areas of
concentration include bankruptcy, commercial litigation, corporate
finance, securities laws and corporate governance. He holds a
bachelor's degree from Princeton University, a master's from the
University of Sussex, England and a juris doctorate from the
University of Chicago Law School.
Mr. Friedman is a Director of the Howard Memorial Fund, which
provides financial assistance to minority college students, and a
Director of GlobaLearn, Inc., a not-for-profit corporation
developing school curricula and student expeditions to foreign
countries.
Commenting on this appointment, Bradlees' Chairman and Chief
Executive Mark Cohen said, "John Friedman is an excellent addition
to our Board. His extensive knowledge of corporate restructuring
and governance will significantly enhance our efforts in staging a
successful turnaround at Bradlees."
Bradlees, Inc., which currently operates 124 discount department
stores in Maine, New Hampshire, Massachusetts, Connecticut, New
York, New Jersey, Pennsylvania and Rhode Island, emphasizes a unique
blend of fashionable, high quality apparel and home furnishings at
outstanding value to its customers. Bradlees' common stock is
listed and traded on the New York Stock Exchange under the symbol
"BLE".
CONTACT: Coleman Nee of Bradless, 617-380-8354
WORCESTER, Mass., May 16, 1996 - href="chap11.cambridge.html">Cambridge Biotech
Corporation (Nasdaq OTC Bulletin Board: CBCXQ) today announced
financial results for the first quarter of 1996 ended March 31,
1996. Revenues for the quarter were $7,387,000 and expenses were
$7,246,000, resulting in a net income of $141,000 or $0.01 per
share. Comparable numbers for the quarter ending March 31, 1995 were
revenues of $5,848,000, expenses of $8,553,000 and a net loss of
$2,705,000 or $0.10 per share. As of March 31, 1996, the Company's
cash and cash equivalents totaled $8,797,000.
The first quarter's results primarily reflect growth in
diagnostic product sales and a one-time increase in certain antigen
product sales. However, due to the expected Chapter 11
reorganization of Cambridge Biotech Corp. (CBC), including the
expected sales of its diagnostic businesses, the Company anticipates
that it will incur significant losses in subsequent quarters of 1996
and for the foreseeable future. As part of the restructuring, a new
company, Aquila Biopharmaceuticals Inc., will be formed to continue
the development of CBC's products which stimulate the immune system
for the treatment and prevention of infectious diseases and cancer.
Alison Taunton-Rigby, Ph.D., President and Chief Executive
Officer of Cambridge Biotech said, "The positive results of this
quarter reflect the significant changes made in the operations of
the Company over the last year. Because of this, we have been able
to sign agreements to sell our diagnostic businesses to bioMerieux
Vitek and Carter-Wallace and to file the Company's reorganization
plan."
Cambridge Biotech Corporation is a therapeutics and diagnostics
company focused on infectious disease and cancer. CBC filed for
protection under Chapter 11 of the United States Bankruptcy Code on
July 7, 1994, and filed a reorganization plan with the bankruptcy
court on April 10, 1996. After bankruptcy court approval of CBC's
reorganization plan, the assets, liabilities and intellectual
property of CBC, relating to its biopharmaceutical business, will be
transfered to Aquila Biopharmaceuticals, Inc. Aquila will focus on
developing and commercializing therapeutic and prophylactic vaccines
for infectious diseases, and immunotherapeutics for cancer.
Aquila's therapeutics business will include the Stimulon(TM) family
of adjuvants and proprietary vaccines. The most advanced adjuvant,
QS-21, is in clinical development through corporate and academic
partners. The proprietary vaccines include a feline leukemia
vaccine currently on the market and vaccines in development in the
areas of tick-borne diseases, streptococcal pneumonia, malaria,
bovine mastitis and canine Lyme disease. CBC recently announced
agreements subject to bankruptcy court approval to sell its
retroviral diagnostic business to bioMerieux Vitek, Inc. for $6.5
million in cash and its enteric diagnostic business to Carter-
Wallace for $4.5 million in cash.
Statements in this release which relate to expectations of
management for future operations or otherwise relate to future
performance are forward looking statements. Actual results may
differ from those projected as a result of the Company's success in
emerging from bankruptcy, product demand, pricing, market
acceptance, the effect of economic conditions, intellectual
property, competitive products, risks in product and technology
development and other risks identified in the Company's Securities
and Exchange Commission filings.
CONSOLIDATED STATEMENT OF OPERATIONS
Three Months Ended March 31
1996 1995
Revenue $7,387,095 $5,848,301
Costs and Expenses $7,193,657 $8,453,873
Interest Income/Other (Net) $92,414 $67,373
Reorganization Items ($142,705) ($165,514)
Income Tax Benefit ($2,150) ($820)
Income/(Loss) from Continuing
Operations $140,997 ($2,704,533)
Net Income/(Loss) $140,997 ($2,704,533)
Net Income/(Loss) per Weighted
Average Share $0.01 ($0.10)
Weighted Average Shares
Outstanding 26,057,006 26,057,006
CONSOLIDATED BALANCE SHEET
March 31, 1996 / December 31, 1995
March 31, 1996 Dec. 31, 1995
Cash and Cash Equivalents $8,796,748 $6,855,751
Total Current Assets $17,748,468 $14,899,054
Total Assets $24,997,959 $23,044,579
Total Current Liabilities $9,060,222 $6,922,450
Total Liabilities $20,901,572 $19,090,074
Total Shareholders' Equity $4,086,514 $3,945,516
Total Liabilities and Shareholders'
Equity $24,997,959 $23,044,579