LOS ANGELES -- July 17, 1996 -- Sizzler
International Wednesday reported a consolidated loss of $138,458,000
for the company's fiscal year ended April 30, 1996, due primarily to
losses from underperforming U.S. restaurants and the cost of
closing 116 restaurants and restructuring the company.
Also, the company reported its remaining 87 domestic restaurants
were profitable on an operating basis for the year ended April 30,
1996. The international operations continued to provide operating
profits systemwide.
Annual Operating Comparison
Revenues for the year decreased 6% to $436,194,000 from
$462,151,000 last year. The net loss of $138,458,000 represents a
loss of $4.99 per share versus net income of $6,695,000, or $0.24
per share, in the previous fiscal year.
Revenues for the fourth quarter decreased 5% to $100,045,000
from $105,291,000 in the same period a year ago. The company
reported a loss for the quarter of $134,493,000, or $4.84 per share,
versus quarterly earnings of $1,386,000, or $0.05 per share, in last
year's fourth quarter.
On June 2, 1996, Sizzler filed for protection under Chapter 11,
the part of the bankruptcy code that permits court supervised
reorganization of companies. Pursuant to this, in the fourth
quarter, the company recorded a pre-tax restructuring charge of
$109.0 million.
The restructuring costs include non-cash write offs of assets
and related disposition costs associated with the closure of 116
restaurants in the United States. The company also reported an
initial non- cash charge of $12.8 million, or $0.46 share, to adopt
SFAS 121.
Post-filing Temporary Slowdown
Following the filing and as expected, the company reported that
numerous restaurants experienced downturns in their daily sales
which will have an impact on first quarter results.
President and Chief Executive Officer Kevin Perkins said the
company's goal is "a return to operating profitability during the
fourth quarter this year. With the downsizing and -- assuming a
successful Chapter 11 -- we have a stronger domestic core and a
profitable international operation."
Financial Strength
The company finished the fiscal year with cash of $9,216,000 and
total assets of $178,547,000 and shareholders' equity of
$43,467,000.
Christopher Thomas, executive vice president and chief financial
officer, said: "We are particularly well positioned to take
advantage of Chapter 11 because we now will have stronger ongoing
operations and a favorable balance sheet.
"Regarding the restructuring charge, it involved primarily non-
cash write offs and reflects our efforts to redeploy capital to
those core markets that are expected to yield the strongest returns
as well as eliminate the need for further investment in non-
performing assets such as closed restaurant leases."
New Company Shape
Company-operated Sizzler restaurants in the U.S. have decreased
from 199 at April 30, 1996, to 87 at June 3, 1996. Also, domestic
franchises decreased from 235 to 230. Company- operated Sizzler
restaurants outside the U.S. remained at 44 from April 30, 1996, to
June 3, 1996.
International Sizzler franchises remained at 87 and company-
operated international KFC restaurants increased from 92 to 93. The
company also operates one international Italian Oven restaurant.
Except for historical information contained herein, the matters
set forth in this news release are forward looking statements that
are subject to certain risks and uncertainties that could cause
actual results to differ materially from those set forth herein in
the forward looking statements, including such factors, among
others, as significant fluctuations in operating results, uncertain
profitability, uncertain market acceptance of the company's product
offering, intense competition, the impact of the company's
bankruptcy filing, the company's ability to successfully reorganize
operations and reposition its domestic business.
SIZZLER INTERNATIONAL INC.
FINANCIAL HIGHLIGHTS
(unaudited) (000 omitted)
For the 12 Weeks For the 52 Weeks
Ended Ended
4/30/96 4/30/95 4/30/96 4/30/95
Systemwide sales
(all franchised and
company-owned
restaurants) $201,776 $214,190 $875,704 $937,670
Revenues $100,045 $105,291 $436,194 $462,151
Net income (134,493) 1,386 (138,458) 6,695
Net income per
common share ($4.84) $0.05 ($4.99) $0.24
Common and common
equivalent shares 27,768 27,783 27,773 28,272
Common shares,
assuming full
dilution 27,768 27,783 27,773 28,273
CONTACT: Sizzler International Inc., Los Angeles
Christopher R. Thomas, 800/883-9675
or
The Financial Relations Board, Los Angeles
Timothy Kent (general information)
Steven Seiler (media contact)
Tom Ekman (analyst contact)
310/442-0599
DAYVILLE, Conn. -- July 17, 1996 -- American White
Cross, Inc. (Nasdaq:AWCI) today announced it has filed a petition
for voluntary reorganization under Chapter 11 of the Federal
Bankruptcy Code to allow the company time to implement a financial
restructuring program.
Simultaneous with the filing, the company announced that
Congress Financial Corp., the company's longtime lender, has agreed
to continue working with the company by providing debtor-in-
possession (DIP) financing. Upon court approval, the funds may be
used for ongoing working capital needs. Management anticipates no
interruptions in deliveries to customers or payments to post-
petition suppliers.
The Chapter 11 filing will allow the company to continue its
daily operations as usual while it goes through a financial
restructuring.
American White Cross has an 84-year history of manufacturing,
marketing and distributing disposable medical products. In recent
months, a combination of factors has contributed to an ongoing
negative financial position. These include the unprecedented
increases in the cost of raw materials and the costs associated with
relocating into a new, state-of-the-art manufacturing facility in
Houston, Texas.
"The company has instituted a number of aggressive operational
initiatives to return the company to profitability," said Howard
Koenig, Chairman and Chief Executive Officer. "They include
introducing new products, relocating from a 100-year-old plant to
modern, cost-saving facilities, negotiating raw material cost
reductions and cutting overhead spending."
Mr. Koenig continued, "These actions are moving the company in
the right direction. However, to allow sufficient time to maximize
benefits, and return American White Cross to profitability, we have
made the difficult but necessary decision to seek the protection of
Chapter 11."
American White Cross, Inc. manufacturers and markets a wide
variety of health and personal care products, including adhesive
bandages, first aid kits and cosmetic cotton products.
CONTACT: American White Cross, Inc.
Scott Vertrees
Vice Chairman
Thomas Rallo
Senior Vice President
(860) 779-4114
or
IR CONTACT: Melissa Garelick/Ross Felix
PRESS: Leslie Feldman/Suzanne Miller
Morgen-Walke Associates
(212) 850-5600
CUPERTINO, Calif., July 17, 1996 - Apple Computer, Inc.
(Nasdaq: AAPL) today announced financial results for the quarter
ending June 28, 1996. The Company recorded a quarterly net loss of
$39 million, or a loss of $.26 per share, compared to net earnings
of $103 million, or $.84 per share, in the prior year quarter. The
quarterly loss represents a $708 million sequential improvement from
the $740 million net loss incurred during the Company's second
fiscal quarter ending March 29, 1996.
Included in the quarterly results was a one-time after-tax gain
of approximately $39 million on the sale of the Company's investment
in America Online.
Revenues for the quarter were $2.179 billion, a 15 percent
decrease from the year ago quarter but approximately equal to the
$2.185 billion reported in the March 1996 quarter. Gross margins
were 18.5 percent, a sequential improvement from the -19.3 percent
(or 9 percent before inventory valuation and related adjustments)
gross margin reported in the March 1996 quarter.
The Company continues to execute its 12-month restructuring
plan, first announced in the second fiscal quarter. During the
third quarter, headcount decreased from 15,544 to 13,729, primarily
in the areas of manufacturing and administration. Approximately
1,000 of the headcount reduction was related to the sale of the
Company's Fountain, Colo. manufacturing site which was completed
during the quarter. The Company also announced the closure of its
printed circuit board assembly facility in Sacramento, Calif.
Operating expenses for the quarter were reduced by $35 million to
$519 million, or 23.8 percent of revenue, compared to $554 million
(excluding restructuring charges) or 25.4 percent of revenue in the
March 1996 quarter.
Cash and short term investments at the end of the quarter were
$1.359 billion, a sequential increase of $767 million from the March
quarter. The Company's cash position was strengthened by a number
of factors, including the successful completion of long-term
financing, sales of fixed assets and investments, and improved asset
management.
Apple completed the redesign of its organizational structure
during the quarter and established six new product divisions with
full profit and loss responsibility. The Company also filled the
remaining positions in its executive management team, naming Marco
Landi Executive Vice President and Chief Operating Officer; and
Ellen Hancock Executive Vice President, Research and Development and
Chief Technology Officer.
"We made great strides in the quarter in shoring up the
Company's balance sheet and improving liquidity," said Apple
Executive Vice President and Chief Financial Officer Fred Anderson.
"We also made progress toward our goals of operating expense
reduction and gross margin improvement.
"We believe that the Company achieved stabilization of revenues
during the quarter," said Anderson. "We also achieved a positive
shift in product mix toward higher end, higher margin desktop
products and servers. Revenues would have increased noticeably
relative to Q2 were it not for quality holds on our PowerBook
backlog. We are implementing programs to resolve those problems and
to enhance the quality and reliability on all products going
forward."
"Over the next few months we plan to introduce a number of new
products for our target customers," said Apple Chairman and Chief
Executive Officer Dr. Gilbert F. Amelio. "Apple will continue to
focus on the industry's more significant growth areas: the Internet
and multimedia. With our strategy set and management team and
organization in place, we're on schedule for the continued execution
of Apple's transformation."
Except for the historical information contained herein, the
statements regarding stabilization of revenues, implementation of
programs to address quality issues, new product introductions,
continuing focus on certain industry growth areas, and the timing of
execution of the Company's business plans are forward-looking
statements that involve risks and uncertainties. Potential risks and
uncertainties include, without limitation, continued competitive
pressures in the marketplace; the effect competitive factors and the
Company's reaction to them may have on consumer and business buying
decisions with respect to the Company's products; the consequences
competitive factors and buying decisions may have on current
inventory valuations; the effect of any continued losses on the
Company's needs for liquidity; the effect of the announced business
restructuring on the future performance of the Company, especially
the performance of the Company's employees; and the need for any
future restructuring, and the effect that they might have on the
performance of the Company. More information on potential factors
that could affect the Company's financial results are included in
the Company's Form 10-Q for the third fiscal quarter, to be filed
with the SEC.
Apple Computer, Inc., a recognized innovator in the information
industry and leader in multimedia technologies, creates powerful
solutions based on easy-to-use personal computers, servers,
peripherals, software, personal digital assistants and Internet
content. Headquartered in Cupertino, California, Apple develops,
manufactures, licenses and markets solutions, products, technologies
and services for business, education, consumer, entertainment,
scientific and engineering and government customers in more than 140
countries.
Apple's home page on the World Wide Web: http://www.apple.com/" target=_new>http://www.apple.com/">http://www.apple.com/
NOTE: Apple, the Apple logo, and Macintosh are registered
trademarks of Apple Computer, Inc. registered in the USA and other
countries. All other brand names mentioned are registered trademarks
of their respective holders, and are hereby acknowledged.
APPLE COMPUTER, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in millions, except per share amounts)
THREE MONTHS ENDED NINE MONTHS ENDED
June 28, June 30, June 28, June 30,
1996 1995 1996 1995
Net sales $2,179 $2,575 $7,512 $8,059
Costs and expenses:
Cost of sales 1,776 1,847 7,055 5,822
Research and development 155 168 458 443
Selling, general and
administrative 364 404 1,209 1,205
Restructuring costs 0 (6) 207 (23)
2,295 2,413 (8,929) 7,447
Operating income (loss) (116) 162 (1,417) 612
Interest and other income
(expense), net 65 2 82 (33)
Income (loss) before provision
(benefit) for income taxes (51) 164 (1,335) 579
Provision (benefit) for
income taxes (19) 61 (494) 215
Net income (loss) $(32) $103 $(841) $364
Earnings (loss) per common
and common equivalent share $(0.26) $ 0.84 $(6.81) $ 2.97
Cash dividends paid per common share
$ -- $ .12 $ -- $ 0.36
Common and common equivalent shares
used in the calculations of earnings
per share(in thousands) 123,735 123,203 123,463 122,482
APPLE COMPUTER, INC.
CONSOLIDATED BALANCE SHEETS
ASSETS
(In millions)
June 28, September 29,
1996 1995
(Unaudited)
Current assets:
Cash and cash equivalents $1,359 $ 756
Short-term investments -- 196
Accounts receivable, net of a