HOUSTON, TX -- August 6, 1996 -- As a result of strong
sales increases in its domestic and international markets, Drypers
Corporation (Nasdaq: DYPR) today reported improved results for the
second quarter and six months ended June 30, 1996.
For the quarter, net sales increased 40% to $52.8 million
compared with $37.8 million for the same period of 1995. The
Company recorded net income for the recent quarter of $348,000
compared with a net loss of $6.2 million in the second quarter of
1995. The Company reported earnings per share of $0.02 on
15,995,725 common and common equivalent shares outstanding versus a
loss of $0.95 per share on 6,565,711 shares outstanding in the year-
ago period. Common and common equivalent shares outstanding
increased significantly as a result of the Company's refinancing in
the first quarter of 1996.
For the first half of 1996, net sales increased 32% to $97.9
million compared with $74.1 million for the same period of 1995.
The Company recorded a net loss for the six months of $2.6 million,
or $.42 per share, compared with a net loss of $9.4 million, or
$1.43 per share, in the comparable 1995 period. There were
6,635,401 equivalent shares outstanding in 1996 versus 6,560,894
shares in 1995.
Walter V. Klemp, Chairman and Co-Chief Executive Officer,
noted, "Second quarter results, which were significantly better than
our internal plan, represent a return to profitability for our
Company and reflect the strength of our premium diaper and training
pant business, in both domestic and international markets."
Mr. Klemp continued, "In the United States, our increase in same-
store sales has attracted the interest of grocery accounts who,
until now, haven't carried Drypers. Their interest was also fueled
during the quarter by media and consumer attention generated through
our introduction of Drypers with baking soda, an innovative product
in the premium diaper category. As a result, we anticipate
significant new account openings for the second half of this year."
Mr. Klemp added, "In our current operating environment of lower
raw material and diaper conversion costs, we have been able to raise
gross margins above the 40% level. Additionally, we have been able
to reduce selling, general and administrative expenses as a
percentage of sales by gaining leverage on our fixed cost base and
by decreasing the variable hard dollar expenses related to the sale
of each diaper pad."
Mr. Klemp concluded, "We look forward to our third quarter and
anticipate that our sales of premium diapers in the domestic grocery
store market and internationally will continue to grow. We believe
that gross margin will continue to be strong and we remain committed
to reducing per-pad selling expenses, further increasing the
opportunity for profit in the second half of 1996. Our optimism for
the future of our Company is quite strong."
This press release contains forward-looking information that is
subject to certain risks and uncertainties that could cause actual
results to differ materially from those projected. Some of the more
significant factors noted in the Company's Reports on Form 10-K and
10-Q, include changes in raw material prices for diaper components,
price reductions initiated by the Company's major competitors, and
fluctuations in economic conditions in international markets.
Drypers Corporation manufactures and markets disposable baby
diapers and related products under the Drypers brand name. The
Company's products are sold through grocery stores and mass
merchants throughout the United States, Latin America and other
international markets. The Company also produces price value
branded and private label diapers and related products.
DRYPERS CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(In Thousands, Except Per Share Amounts)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
1996 1995 1996 1995
NET SALES $ 52,821 $ 37,758 $ 97,864 $
74,098
COST OF GOODS SOLD 31,301 27,306 60,115
52,436
Gross profit 21,520 10,452 37,749 21,662
SELLING, GENERAL
& ADMINISTRATIVE EXPENSES 18,605 13,627 35,716
25,822
UNUSUAL EXPENSE
-- -- -- 2,358
RESTRUCTURING CHARGE -- 2,972
-- 2,972
Operating income (loss) 2,915 (6,147) 2,033 (9,490)
INTEREST EXPENSE, net 2,421 2,078 4,403
3,792
Income (loss) before
taxes 494 (8,225) (2,370)
(13,282)
Income taxes (benefit) 146 (2,019) 201
(3,867)
Net income (loss) 348 (6,206) (2,571)
(9,415)
Preferred stock dividend (165) (220)
Net income (loss) available
to Common Stockholders $ 183 $ (6,206) $(2,791)
$(9,415)
Common and common equivalent
shares outstanding 15,995,725(a) 6,565,711 6,635,401
6,560,894
Net income (loss) per
common share $ .02 $ (.95) $(.42)
$(1.43)
(a) Common and common equivalent shares for the three months ended
June 30, 1996, includes 9,000,000 common shares issuable upon
conversion of 90,000 shares of convertible preferred shares issued in
February, 1996. Given the loss for the six months ended June 30,
1996, such common stock equivalents have not been included since the
impact would be antidilutive.
DRYPERS CORPORATION
CONSOLIDATED BALANCE SHEETS
(In Thousands)
June 30, December 31,
1996 1995
(unaudited) (audited)
ASSETS:
CURRENT ASSETS 44,230 40,625
PROPERTY AND EQUIPMENT, net of
depreciation and amortization 36,582 36,375
OTHER ASSETS 59,684 60,420
$140,496 $137,420
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES 41,616 44,222
TERM LOAN 875 1,000
SENIOR TERM LOAN 44,036 43,950
LONG-TERM SUBORDINATED DEBT 2,400 2,400
OTHER LIABILITIES 3,715 4,026
STOCKHOLDERS' EQUITY 47,854 41,822
$140,496 $137,420
CONTACT: Drypers Corporation
Walter V. Klemp
Chairman & Co-Chief
Executive Officer
(713) 682-6848
or
Morgen-Walke Associates
Howard Zar/Melissa Garelick
Press: Leslie Feldman/
Suzanne Miller
(212) 850-5600
STE. GENEVIEVE, MO. -- Aug. 6, 1996 -- BiltBest
Products, Inc., Ste. Genevieve, Missouri, announced today the
purchase of the tooling and other equipment of Keller Industries,
Inc.'s Merced, California, window operations. Total purchase price
will approximate $1 million for the assets and will not include the
assumption of any liabilities or obligations of Keller Industries.
BiltBest, a national manufacturer of wood and aluminum clad
windows, markets their products through millwork distributors along
with building supply wholesalers and retailers.
John F. Bendik, Chairman and Chief Executive of BiltBest,
stated, "We are excited about the product line extension of vinyl
and aluminum windows and patio doors to our wood and aluminum clad
product offering. This investment allows us to offer a complete
line of windows and patio door products to our customers. In
addition, this purchase will enhance the West Coast distribution for
all our products."
Keller, a privately-held company based in Fort Lauderdale,
Florida, has been under the supervision of the United States
Bankruptcy Court for the District of Delaware, under whose
supervision it has been operating in Chapter 11 since April 2, 1996.
CONTACT: BiltBest Products Inc., Ste. Genevieve
John Bendik, 573/883-3571
DENVER, CO -- Aug. 6, 1996 -- Ascent Entertainment Group, Inc.
(Nasdaq: GOAL) announced today that the bankruptcy court for the
district of Delaware has approved the First Amended Disclosure
Statement concerning Ascent's proposed acquisition of SpectraVision
(AMEX: SVN), which is currently operating in bankruptcy, and
authorized its distribution to SpectraVision's creditors.
SpectraVision expects to mail the Disclosure Statement to its
creditors and other parties in interest on August 9, 1996. The
court set September 4, 1996 as the date by which creditors must vote
on the reorganization plan described in the disclosure statement,
and set 11:00 a.m. September 11, 1996 for a hearing to approve the
plan.
On April 19, 1996, Ascent entered into an agreement to acquire
SpectraVision. Ascent, On Command Video and SpectraVision are
negotiating final terms and conditions of certain agreements that
must be in place before the transaction is closed. Ascent
management continues to believe the transaction will close by the
end of the third quarter.
SpectraVision and certain of its subsidiaries filed Chapter 11
proceedings on June 8, 1995 and have operated as debtors-in-
possession since that time.
Ascent Entertainment Group's principal business is providing pay-
per-view entertainment and information services. In addition, it is
involved in other entertainment-related businesses including
ownership and operation of the NBA Denver Nuggets and NHL Colorado
Avalanche, and Beacon Communications, a motion picture and
television production company.
CONTACT: Paul Jacobson, George Sard, Paul Verbinnen, Karen Amrhine,
303-626-7060, or 212-687-8080, Denny Minami, 303-626-7030, all for
Ascent Entertainment; Robert Mead, 212-484-6701, or Scott Smith, 214-301-
9070, both for SpectraVision
BELLEVUE, WA -- Aug. 6, 1996 -- It was announced today
that Tom Gillespie, Founder, and former CEO of Aqua Vie Beverage
Corporation (AVBC), will be provided the opportunity to go forward
with his proposed Plan of Reorganization for the Company. At a
hearing held in Idaho, July 31, 1996, the Court ruled that, subject
to Mr. Gillespie placing an initial $325,000 in trust by August
27th, his proposed Plan of Reorganization could move forward and be
distributed to the Company's creditors and shareholders for
approval. The proposed Plan calls for the funding of $625,000, to be
available to the Company upon Plan Confirmation, which is
anticipated to be in October. The proposed Plan also provides for
the issuance of stock to creditors, existing shareholders, and new
investors, and also an issuance of two warrants priced at $1.00, and
$1.50. Should both warrants be exercised, they would represent
additional funds to the Company of up to $7,725,000, which far
exceeds the Company's proposed funding requirements for
profitability.
Mr. Gillespie's proposed extension was also supported by
Assistant U.S. Trustee Jeffery Howe, who agreed to extend the
hearing date on his pending "Motion to Dismiss or Convert," until
August 28th. Mr. Howe said that Mr. Gillespie's Plan of
Reorganization, "represents the last, best hope for creditors and
shareholders of Aqua Vie Beverage Corporation."
Mr. Gillespie's proposal was also supported by counsel for the
"Wilson Group," comprised of former Aqua Vie Directors Ian Wilson
(former Vice Chairman of Coca Cola), Mark Stevens (former Founder
and CEO of Sunkist Beverages), Gordon Sim (former Director of
Clearly Canadian), and Cary Fitchey (former VP of Business Planning
for PepsiCo Inc.), who said, "Mr. Gillespie's Plan of Reorganization
is in the best interest of the Company's creditors and
shareholders".
The Chapter 11 Trustee, represented by Counsel, moved to
continue to support the Chapter 11 Trustee's Plan of Liquidation,
also continued for hearing on August 28th, 1996. The Chapter 11
Trustee filed a Plan of Liquidation on June 20, 1996 that strongly
suggests no funds will be available for the benefit of Aqua Vie's
creditors and shareholders.
In commenting, Mr. Gillespie said, "this Plan of Reorganization
should be embraced by all legitimate creditors and shareholders,
because it can effectively jump start the Company into
profitability, and quickly return substantial value back to all
parties involved."
Additional information about Aqua Vie can be found on the
Internet at; " target=_new>http://ourworld.compuserve.com/homepages/aquavie/aviea.htm">http://ourworld.compuserve.com/homepages/aquavie/aviea.htm
CONTACT: Tom Gillespie of Aqua Vie Beverage Corp., 206-990-6411
PITTSBURGH, PA -- Aug. 6, 1996 -- Reflecting a previously
announced charge of $0.79 per share, net of income tax benefit, for
restructuring costs, General Nutrition Companies, Inc. (Nasdaq:
GNCI) today reported a net loss per share for the second quarter
ended July 20, 1996 of $0.60. Earnings per share from operations,
absent the one-time charge, were $0.19, up from $0.18 per share in
the second quarter of last year and in line with estimates for the
quarter. Driven by strong performance by the Franchising and
Manufacturing divisions, revenues in the quarter increased by 12%,
to $217.8 million. As previously discussed, comparable store sales
in company-owned locations decreased by 4.4% while franchise-store
comparables increased by 4.5%. The Company posted systemwide retail
sales of $236 million, an increase of 9% over the year-earlier
period.
As previously announced, the restructuring costs of $80.2
million, or $0.79 per share, were associated with the discontinuance
of the Company's Natures Food Centre concept and the write-off of
other non-productive assets. The Company recently announced the
acquisition of Nature's Fresh Northwest and a controlling interest
in Amphora Company, which led to a strategic decision to discontinue
Natures Food Centre as a concept. As a result of these one-time
charges and the effects of the acquisition, the Company expects an
increase in earnings per share for the remainder of 1996 and all of
1997 of $0.01 and $0.04, respectively.
William E. Watts, President and CEO, said, "Our long-term
strategy is on track. We opened 96 new General Nutrition Center
stores in the second quarter, bringing our year-to-date total to
211. This expansion sets the stage for continuing market-share
gains in our core business, the $5.1 billion dietary supplement
segment. We have also made small but important acquisitions in two
allied self-care segments, natural grocery and aromatherapy, that
give us access to these fast-growing markets."
General Nutrition Companies, Inc., which is based in Pittsburgh,
is the only nationwide specialty retailer of vitamin and mineral
supplements, sports nutrition and herbal products and is also a
leading provider of personal care, fitness and other health-related
products. The Company's products are sold through a network of
2,734 retail stores operating under the General Nutrition Center,
Nature Food Centre, Health & Diet Centre and Amphora names, of which
1,677 are company-owned and 1,057 are franchised. The Company's
stores are located in all 50 states, Puerto Rico and 15 foreign
countries.
GENERAL NUTRITION COMPANIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
12 Weeks Ended 24 Weeks Ended
July 20, July 22, July 20,
July 22,
1996 1995 1996 1995
Net revenue $217,750 $194,410 $447,917
$386,412
Cost of sales, including costs
of warehousing, distribution
and occupancy 136,652 118,865 277,984
234,924
Selling, general
and administrative 46,889 42,789 96,275
85,537
Amortization of goodwill 2,170 1,921 4,391
3,832
Restructuring charge 80,243 --- 80,243
---
Operating earnings (loss) (48,204) 30,835 (10,976)
62,119
Interest expense 3,375 5,068 6,323
10,430
Earnings (loss) before
income taxes (51,579) 25,767 (17,299)
51,689
Income taxes 300 10,620 14,402
21,441
Net earnings (loss) ($51,879) $15,147 ($31,701)
$30,248
Primary earnings (loss)
per share ($0.60) $0.19 ($0.36)
$0.37
Average number of shares
outstanding 86,681 81,428 88,122
81,406
Fully diluted earnings (loss)
per share ($0.60) $0.18 ($0.36)
$0.35
Average number of shares
outstanding 86,681 89,624 88,122
89,602
VERNON, CA -- Aug. 6, 1996 -- Seven-Up/RC Bottling
Company of Southern California, Inc. announced that the Bankruptcy
Court for the District of Delaware had confirmed the Company's First
Amended Joint Plan of Reorganization, dated June 19, 1996 (the
"Plan"). The Plan had been accepted by holders of in excess of
99.96% of the total dollar amount of the Company's 11.5% Senior
Secured Notes due 1999 ($140 million principal amount) (the
"Noteholders") who voted on the Plan. Consummation of the Plan is
scheduled to occur on August 12, 1996.
As previously announced, under the Plan approved by the
Bankruptcy Court, Noteholders receive approximately 98% of the
Company's equity and $55 million - representing the net proceeds
from the sale of the Company's Puerto Rico subsidiary. The Plan
provides that the Company's trade creditors are to be paid in full
and that all relationships with franchisors, distributors and
licensors will continue unaffected.
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.
CONTACT: Edward Whiting of Whitman Heffernan Rhein & Co., Inc., for
Seven-Up/RC Bottling Company of Southern California, Inc., 213-267-
6233