HOUSTON -- June 12, 1996 -- Robert A. Searles Jr.,
president and chief executive officer of Irata Inc. (NASDAQ:IRATA),
today announced that the board of directors has accepted the
resignation of company chairman Richard W. Fairchild Jr., effective
immediately.
Fairchild will be retained as a consultant to the company.
Additionally, Searles announced that the board of directors adopted
a resolution to retain the services of Wimmer Associates Inc.,
Dallas, Texas, to assist the board and management with an extensive
review of its operations and to assist in developing and
implementing its business plan. The company previously announced a
tentative agreement with its lender with respect to the company's
technical default under its loan agreement that is conditioned upon
the company's satisfactory completion of a private placement of its
securities.
Searles went on to say that, "Mr. Fairchild has made significant
contributions to the company and will be missed. The company is
confident that if it is able to meet the conditions of its
settlement agreement with its lender, many of the programs and
strategies put in place during Mr. Fairchild's tenure will prove
profitable in the future."
Irata Inc. developed and presently operates a computerized
version of the traditional self-service photo booth known as Video
Foto. Booths combine the traditional photo options with a variety
of souvenir, novelty, and amusement options utilizing computer
imaging technology, a laser printing device, and other computer
hardware and software, offering users with a computer generated
photo in 30 seconds for only $1.00. The company presently operates
booths in enclosed shopping malls, amusement parks, discount stores,
and various amusement locations in 46 states.
CONTACT: Irata Inc., Houston
Robert Searles, 713/467-4300
MILWAUKEE, WI -- June 12, 1996 -- ARI Network Services
Inc. (NASDAQ/NMS:ARIS), an electronic commerce services provider,
today announced its results for the third quarter ended April 30,
1996.
The company's total revenue was $1.41 million, a gain of 9
percent over $1.29 million for the third quarter last year and up 31
percent from $1.08 million in the second quarter of this year.
Recurring revenues were $1.0 million, up 13 percent from last year
and 16 percent over the preceding quarter. Net loss per share was
($.08) compared to ($.07) last year, 20 percent improved over
($0.10) per share in the second quarter.
"Our revenues for the third quarter showed the first year-to-
year increase this fiscal year," said Brian Dearing, the company's
president and chief executive officer who joined ARI in November
1995. "We are seeing some indications that our efforts to
restructure, reposition and strengthen ARI and its sales and
marketing efforts are now beginning to translate into concrete
results. As our business has evolved, sequential quarterly results
are becoming more meaningful," Dearing observed. "However, our
current revenue mix still contains some seasonal factors which favor
quarters three and four over one and two. It is also very difficult
to predict future rates of growth."
Dearing joined ARI in November 1995 to complete a company
restructuring which was started by the main shareholders in 1994.
He was formerly a vice president in electronic commerce marketing
with the part of Sterling Software (NYSE:SSW) which is now Sterling
Commerce (NYSE:SE). Since the restructuring began, ARI has extended
its electronic commerce services to include Internet-based
electronic commerce and beyond its historical base in agribusiness
to other sectors.
About ARI
ARI is a provider of standards-based, Internet-enabled
electronic commerce services for selected commercial communities and
distribution channels. ARI services and software help streamline
channels of distribution by automating the flow of commercial
information among trading partners. ARI builds and manages
electronic commerce databases including online directories of
products, locations and trading partners. ARI also provides a suite
of online interactive services for business transaction management
together with the needed electronic commerce platforms, professional
and support services. ARI's concept of electronic commerce goes
beyond the transactions surrounding product movement to include
order capture and delivery of digital products themselves. For
example, ARI's Newsfinder service is an electronic commerce service
for the Associated Press through which AP news stories can be
searched, ordered and delivered to a weekly newspaper customer. ARI
currently provides electronic commerce services to selected
industries and distribution channels including agribusiness,
publishing and freight transportation.
ARI NETWORK SERVICES INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands)
April 30 July 31
1996 1995
(Unaudited) (Audited)
___________ ___________
ASSETS
______
Current assets:
Cash and cash equivalents $ 335 $ 236
Accounts receivable 812 1,105
Prepaid expenses 158 180
___________ ___________
Total current assets 1,305 1,521
Equipment & leasehold improvements,
net of accumulated depreciation and
amortization 477 879
Other assets 0 5
Network systems-net 9,480 9,277
___________ ___________
Total Assets $ 11,262 $ 11,682
___________ ___________
___________ ___________
LIABILITIES AND SHAREHOLDERS'
EQUITY
____________________________
Current liabilities:
Accounts payable $ 648 $ 766
Line of credit with shareholders 3,000 1,400
Other current liabilities 813 851
Current portion of capital lease
obligations 68 68
___________ ___________
Total current liabilities 4,529 3,085
Capital lease obligations 21 73
Shareholders' equity:
Common stock 13 12
Additional paid-in capital 76,324 74,961
Accumulated deficit (69,625) (66,449)
___________ ___________
Total shareholders' equity 6,712 8,524
___________ ___________
Total Liabilities & Shareholders'
Equity $ 11,262 $ 11,682
___________ ___________
___________ ___________
See notes to unaudited condensed consolidated financial statements.
ARI NETWORK SERVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except for share data)
(Unaudited)
Three Months Ended Nine Months Ended
April 30 April 30
1996 1995 1996 1995
Net revenues $ 1,407 $ 1,287 $ 3,620 $ 3,841
Operating expenses:
Variable cost of products and
services sold (exclusive of
depreciation and amortization
shown below) 347 376 815 954
Depreciation and amortization 476 404 1,248 1,921
Network operations 218 269 656 929
Selling, General
& Administrative 1,239 1,184 3,521 3,704
Network and product development 463 365 1,404 1,192
_______ _______ _______ _______
Operating expenses before
amounts capitalized 2,743 2,598 7,644 8,700
Less capitalized expenses(a) (374) (328) (1,039)
(1,058)
_______ _______ _______ _______
Total net operating expenses 2,369 2,270 6,605 7,642
_______ _______ _______ _______
Operating Loss (962) (983) (2,985)
(3,801)
Other income (expense) (64) 74 (191) 80
_______ _______ _______ _______
Net loss ($ 1,026) ($ 909) ($ 3,176) ($
3,721)
_______ _______ _______ _______
_______ _______ _______ _______
Average common shares
outstanding 12,699 12,186 12,355 12,031
Net loss per common share ($0.08) ($0.07) ($0.26) ($0.31)
See notes to unaudited condensed consolidated financial statements.
CONTACT: ARI Network Services Inc.
Brian E. Dearing, 414/283-4300
E-mail: dearing@arinet.com
ROSWELL, Ga. -- June 12, 1996 -- Harry's Farmers
Market, Inc. (NASDAQ: HARY) the Atlanta-based purveyor of fresh,
specialty and prepared food products, today announced improved
results for the first quarter of fiscal 1997 ended May 1, 1996,
confirming previous projections.
The Company reported a loss of $.05 per common share in the
first quarter compared to a loss of $.14 per common share for the
same period last year and a loss of $.11 per common share for the
fourth quarter of fiscal 1996 which ended January 31.
Sales for the first quarter, as reported earlier, were $33.5
million, compared to sales of $34.9 million for the same period last
year. On a comparable store basis, sales were off only 3.9% as
compared to an 8.1% decline for the fourth quarter of fiscal 1996.
However, May sales were up 2.6% over the same period last year and
June sales are sustaining the positive trend.
"We continue to be pleased with our progress toward
profitability," said Harry A. Blazer, Chairman, CEO and President.
"In fact, May is the third month in a row that we have had a net
after tax profit."
According to Mr. Blazer, the Company continues to move toward
the previously reported sale of certain real estate assets which is
expected to produce proceeds of more than $4.6 million. These
proceeds will be used to reduce the Company's borrowings and debt
service. The transactions are expected to close during the second
quarter of this fiscal year.
The Company's primary lender has restructured loan covenants
more favorably until maturity, or the extension thereof. Combined
with the previously announced sale of the Nashville property which
is expected to close later this month, restructuring of the senior
credit facility will also allow the Company to borrow an additional
$1 million for general corporate purposes, including growth.
Subsequent to the 1997 first quarter, the Company has found what
it believes to be a viable resolution for obtaining
refinancing/repayment of the mortgage loan on its bakery and
distribution facilities. The Company expects to finalize this
activity during the second quarter of fiscal 1997.
Harry's Farmers Market, Inc. owns and operates three megastores
and two Harry's In A Hurry stores in metro Atlanta specializing in
fresh food products, as well as specialty and prepared foods. In
addition, the Company owns and operates a USDA-approved food
preparation facility and one of the South's largest premier
bakeries. The Company's annual meeting is scheduled for Wednesday,
June 19, 1996 in the Peachtree Auditorium at NationsBank Plaza, 600
Peachtree Street, beginning at 10:00 a.m.
HARRY'S FARMERS MARKET, INC.
Financial Highlights
1Q/FY97 1Q/FY96
Three Months Three Months
Ended Ended
May 1, 1996 May 3, 1996
Net Sales $33,514,00 $34,916,000
Gross Profit $8,947,000 $8,650,000
Gross Margin 26.7% 24.8%
Income (Loss) from Operations
$31,000 ($337,000)
Net Income(Loss) ($319,000) ($836,000)
Earnings(Loss) per common share
($.05) ($.14)
Number of Shares Outstanding
6,168,000 6,164,000
LONGVIEW, Texas -- June 12, 1996 -- Cabec Energy
Corp. President/CEO Ralph Curton announced today the purchase of
Cooper Manufacturing, the world's leading name in truck-mounted,
mobile, work-over rigs. Curton said, "This is an exciting
acquisition for Cabec. Being able to bring Cooper Manufacturing out
of bankruptcy has far-reaching possibilities. (Cooper filed for
bankruptcy in January 1996, to protect themselves from a hostile
takeover.) Revitalizing Cooper is, to the oil and gas industry,
what revitalizing Chrysler Corporation was to the auto industry.
"The upside to Cabec acquiring the seventy-eight-year-old
company could be phenomenal. We think we have the people and the
funding capability to bring this company to its former glory and
beyond." Cabec's strategy of forming strategic alliances with giants
in the oil and gas industry is continuing to pay off. Curton said,
"The acquisition of Cooper is just another example of the
effectiveness of our new alliances. Cabec now owns the most
recognized logo in the work-over and mobile rig drilling industry,
as well as all of its technology, trademarks and customers. Cooper
is truly the `Chevy' of the industry. Cabec is now positioned to
capitalize on the oil and gas industry's entering into another
growth era and the current shortage of workover rigs, parts and
other oilfield equipment in this country and abroad."
When asked to explain what Cooper's future meant to Cabec,
Curton referred to the historical records of Cooper saying, "In the
early 1980s, Cooper Manufacturing sales exceeded $150 million per
year, and since 1918, 48% of the work-over rigs sold have been
Cooper rigs. Cooper has an unparalleled reputation for quality and
advanced technology in the industry, particularly in developing cold-
weather equipment. Since 1993, 70% of all rigs sold to Russia have
been Cooper rigs. In 1995 alone, twenty cold-weather rigs were sold
to Russia at approximately $545,000 each, with spare parts of $1.7
million, plus tools of approximately $3.9 million." Furthermore,
Curton explained, "There are approximately 2,500 Cooper rigs
operating around the world, providing Cooper with a built-in demand
for Cooper parts as well as helping to create the remanufacturing
and refurbishing side of Cooper's business."
Curton said, "Here is a company with an excellent reputation
around the world. While it took a beating during the oil and gas
slump in the 1980s -- as did many oil and gas related companies, it
has maintained its position in the domestic market, while expanding
into the international markets. There is huge potential in Russia
and all of the oil and gas producing countries of the former Soviet
Union, Africa and South America. These countries require this
equipment so that they can get the necessary cash to fuel their
expanding economies. We are at the right place, at the right time,
with the right product, Cooper rigs and parts. All of these
countries have mature oil and gas fields that have been neglected
and cannibalized for decades. They have a tremendous pent-up demand
for equipment and parts."
Curton continued, "Our goal is to return Cooper to its former
sales of over $150 million annually. This can be accomplished by
meeting the current sales demand here and internationally. Also,
Cabec has acquired the right to purchase a pipe and tool company
that will be able to produce parts for Cooper rigs, as well as sell
drill pipe and drill collars directly to Cooper's international
customers. The acquisition of Cooper puts Cabec on a fast track to
future earnings."
CONTACT: Target Marketers
Mickey Holmes, 214/256-1365
ELKIN, N.C., June 12, 1996 - Brendle's Incorporated
(Nasdaq: BRDL) announced it received final bankruptcy court approval
for its $15 million DIP revolving credit loan facility. The DIP
loan is provided by Foothill Capital Corp., the Company's pre-
petition secured lender.
The primary purpose of the DIP loan is to provide Brendle's
trade vendors with a financial "backstop" to the post-petition trade
credit the Company anticipates will be extended to it during the
reorganization proceeding. The Company has begun to receive trade
credit from its suppliers in line with the assumptions included in
its business plan.
Judge William L. Stocks, who is overseeing the reorganization
proceeding in the Middle District of North Carolina, also approved
the Company's motion to initiate its merchandise return program.
This action will allow the Company to return merchandise to vendors
which either no longer fits into the go-forward merchandise strategy
or goods damaged during the normal course of business for full
credit applied to pre-petition trade debt.
The Company also announced that year-to-date through June 1, it
is exceeding both its sales and gross margin plans. On a comparable
store basis sales are 2.9 percent ahead of plan although year-to-
year comparisons are difficult given the significant realignment of
the Company's merchandise offering and its exit from several high
sales volume, low gross margin generating businesses. Since it
began its merchandise restructuring, the Company has exceeded its
gross margin plan both in terms of dollars and as a percentage of
sales, and is executing its strategic repositioning as presented to
both its Creditors' and Equity Security Holders Committee.
CONTACT: David Renegar, Chief Financial Officer, 910-526-6511, or
Andrew G. Barnett, 910-526-6614 or 212-891-6090, both of Brendle's
Incorporated
TAMPA, Fla., June 12, 1996 - Officials of The Celotex
Corporation announced today a settlement has been reached with the
committee representing the asbestos health claimants, the legal
representative for future asbestos bodily injury claimants, the
trade committee, equity interests, and certain other creditor
interests. The settlement will lead to the submission of a new plan
of reorganization which, if confirmed at hearings scheduled to begin
October 7, 1996, will enable the company to emerge from bankruptcy
completely free from asbestos liability.
"This settlement is excellent news for our company, its
creditors, owners, employees and valued customers and suppliers,"
said Celotex President Dennis Ross. "This resolution is the
critical first step which will permit Celotex to move forward with
the same executive and employee team that has profitably managed the
assets of the company throughout the period of our bankruptcy," said
Ross.
"The agreement that was reached today exemplifies the bankruptcy
process at its very best," said Gene Locks, lead negotiator for
various creditor interests. "Both the interests of the company and
its creditors, including the victims of asbestos disease, have been
addressed in a way that is designed to maximize the benefits for all
concerned. We fully support Celotex and its current management and
expect the company to emerge from the process as an even stronger
company."
Celotex filed voluntary petitions for reorganization under
Chapter 11 in the U.S. Bankruptcy Court October 12, 1990 for
protection from claims arising in asbestos-related litigation over a
15-year period. "Celotex was a profitable and viable concern at the
time of that filing," noted Ross. "We have enhanced that record
while operating under the protection of the court, achieving record
levels of profitability during our last fiscal year.
"With confirmation of the new plan of reorganization which is to
be filed no later than July 12, 1996, the integrity of Celotex will
be protected and we will be in a position to move forward on the
progressive and profitable path of our most recent past.
"We look forward to business as usual," Ross concluded.
The Celotex Corporation is a national manufacturer of building
and roofing products for commercial and residential uses.
CONTACT: Jeffrey W. Warren, 813-224-9255
ST. LOUIS, June 12, 1996 - Edison Brothers Stores Inc.
(NYSE: EBS) reported a net loss of $17.7 million, or 80 cents per
share, for the fiscal first quarter ended May 4, 1996. This loss
included special after-tax charges of $11.3 million. Of those
charges, $8.5 million represented lease rejection claims and the
write-off of fixed assets and intangibles associated with the
company's plan to sell or close its Zeidler & Zeidler menswear
division of 102 stores, and $2.8 million were primarily related to
reorganization expenses. Without the special charges, the net loss
for the first quarter 1996 was $6.4 million. This compares with a
loss of $6.4 million, or 29 cents per share, for the first quarter
1995.
Edison's liquidity continues to improve. The company's cash
balance at the end of the first quarter 1996 was $164.8 million
compared with $139.6 million at the end of the fourth quarter 1995.
"Although we experienced a first-quarter loss, I am encouraged
by our improvements in some divisions," Edison President Alan Miller
said. "Overall, the company increased first-quarter earnings and
gross margins over the fourth quarter 1995. Our results are in line
with where we expected to be in the reorganization process."
As previously reported, first-quarter sales were $258.1 million
compared with $318.1 million the year before. Same-store sales
decreased 4.6 percent. In April 1996, Edison operated 2,082 stores
compared with 2,742 stores in April 1995, a decrease of 24.1
percent.
"Our effort to minimize the impact of underperforming stores
through store closings has been successful," Miller said. "We will
continue to refine our store base in the second quarter by closing
approximately 140 additional stores, including our remaining 10
stores in Mexico."
The special charges related to the second-quarter store closings
were taken in the fourth quarter 1995.
Edison Brothers Stores Inc. operates approximately 2,000 apparel
and footwear stores under the names of JW/Jeans West, Oaktree, Coda,
J. Riggings, Zeidler & Zeidler and REPP Ltd menswear stores and
Phoenix men's big-and-tall catalog; 5-7-9 Shops junior apparel
stores; and Bakers/Leeds, Wild Pair and Precis footwear stores.
EDISON BROTHERS STORES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share data)
13 Weeks Ended 13 Weeks Ended
May 4, 1996 April 29, 1995
Net Sales $ 258.1 $ 318.1
Cost of goods sold, occupancy,
and buying expenses 183.7 218.9
Store operating and
administrative expenses 69.3 87.2
Depreciation and amortization 10.4 17.0
Interest expense, net .4 5.5
Restructuring and reorganization
expenses 11.6275.4328.6
Pretax Loss (17.3) (10.5)
Provision (benefit) for income
taxes .4 (4.1)
Net Loss $ (17.7) $ (6.4)
Per Common Share:
Net Loss $ (.80) $ (.29)
Cash dividends paid $ $ .31
Weighted average common shares
outstanding (in thousands) 22,135 22,028