VANCOUVER, Wash. -- Aug. 15, 1996 -- Pacific
Rehabilitation & Sports Medicine, Inc. (NASDAQ: PRHB) announced
today a loss of $3,050,000, or $0.37 per share, for the three months
ended June 30, 1996, as a result of $4,485,000 ($3,203,000, or $0.40
per share, after taxes) in special charges recorded during the
quarter for restructuring and nonrecurring merger termination
expenses.
As previously disclosed, these expense charges included
$3,510,000 ($2,588,000 or $0.32 per share, after taxes) attributable
to the restructuring of the Company's Hawaii operations and $975,000
($618,000, or $0.08 per share, after taxes) attributable to a
nonrecurring charge for expenses related to the April 1996
termination of the proposed merger with Horizon/CMS Healthcare
Corporation.
Adjusting for these charges, net earnings were $153,000, or
$0.03 per share, for the second quarter, which compared to earnings
of $0.07 per share for the same period in 1995. Net revenues for
the quarter increased 31% to $10,348,000, compared to prior year
revenues of $7,913,000, for the same period in 1995. Gross profit
increased 5% for the quarter to $3,895,000 compared to $3,703,000
for the comparable period in 1995.
Bill Barancik, President and Chief Executive Officer of Pacific
Rehab, stated: "We are optimistic about the future. Before taking
into account the impact of the charges related to our previously
announced restructuring in Hawaii and the termination of the
proposed merger with Horizon, which account, in the aggregate, for
approximately $0.40 per share in losses, the Company earned $0.07
per share from operations in the first six months of this year,
notwithstanding increased second quarter operating losses in Hawaii
and the typical summer seasonal softness in a number of our regions.
As compared to the first quarter of 1996, in which the Company
earned $0.04 per share, the second quarter produced $0.03 per share.
"The company's Hawaii operations lost almost $350,000 in the
first six months of this year -- with more than half of the loss
occurring during the second quarter. The objective of this
restructure in Hawaii, including a refocused marketing effort
directed at the employer, managed care, and insurance company level,
is to eliminate the losses in Hawaii and bring these operations to a
profit or break-even point.
"We believe that, as a result of the recently completed
restructuring, results from operations in Hawaii will improve in the
second half of 1996 and will be break-even or profitable by the
first quarter of 1997. We are pursuing changes aimed at improving
results in certain of our other regional markets in the third and
fourth quarters of this year and we believe such changes will
positively affect our results beginning in the third quarter.
"Another positive development is that the Company has retained a
specialized investment banking firm to pursue an infusion of capital
through the private placement of debt. Capital raised will be used
for strategic acquisitions and working capital purposes."
Commenting further on the Hawaii operations, Barancik said, "The
reorganization of our Hawaii operations is important to Pacific
Rehab. We believe that, long-term, the Hawaii market can be
profitable for companies which survive the ongoing consolidation
since people in Hawaii will continue to need physical therapy, which
is a clinically proven, cost-effective, way to treat injuries.
"Assuming our Hawaii operations progress to break-even or
profitable levels in the near future, we believe we will be in a
good position to capitalize on the consolidation in that market and,
as a provider with a strong regional presence, take advantage of the
impact managed care organizations will have in the future on
healthcare decisions."
Pacific Rehab also announced net revenues of $20,765,000, gross
profit of $7,959,000 and a loss of $2,589,000, or $0.33 per share,
for the six months ended June 30, 1996, of which approximately $0.40
per share is attributable to the restructuring and nonrecurring
expenses incurred in the second quarter. Adjusting for the special
charges, net earnings were $520,000, or $0.07 per share, for the six
month year-to-date period. Compared to the same period in 1995, net
revenues increased 40% and gross profit increased 10%.
Pacific Rehab provides outpatient physical therapy services at
70 outpatient rehabilitation clinics in Washington, Oregon,
California, Hawaii, Nevada, Arizona, Texas, Mississippi, Florida and
Maryland.
Forward Looking Statements:
The foregoing information contains certain forward-looking
information about the Company, including that the actions taken by
the Company in Hawaii will lead to improved results in the future.
This information is based on management's estimates, assumptions and
projections. Several factors could cause actual results to differ
materially from these forward-looking statements, including the
assumptions that the reorganized operations in Hawaii will generate
sufficient profits to warrant continued operations in that state,
that further legislation and regulations will not further adversely
impact the Company's operations in Hawaii and other states, and that
the pursuit of changes in operations in certain other regional
markets will have a positive impact on the Company's results from
operations. Investors are directed to the Company s Annual Report
on Form 10-K (as amended by Amendment No. 2 on Form 10-K/A filed
July 11, 1996) for the year ended December 31, 1995, the company's
Quarterly Report on Form 10-Q for the quarter ended March 31, 1996
and June 30, 1996, the Company's Registration Statement on Form S-3
(Reg. No. 333-306) and the Company's Current Reports on Form 8-K
dated April 2, April 15, July 1 and July 17, 1996, all of which are
available without charge from the Company, for a more complete
description of the risks and uncertainties relating to the Company.
Pacific Rehabilitation & Sports Medicine, Inc. and Subsidiaries
Consolidated Statements of Operations Data (Unaudited)
(In Thousands, Except Per Share Data)
For the Three Months For the Six Months
Ended Ended
June 30, June 30,
1996 1995 1996 1995
Net revenues $10,348 $7,913 $20,765 $14,864
Gross profit 3,895 3,703 7,959 7,186
Selling, general and
administrative expenses 2,444 2,143 4,883 4,050
Depreciation and
amortization 530 419 1,081 759
Restructuring expenses 3,510 -- 3,510 --
Operating income (loss) (2,589) 1,141 (1,515) 2,377
Interest, net (482) (253) (907)
(325)
Non-recurring merger
termination expenses (975) -- (975) --
Nonoperating income
(expense) (1,457) (253) (1,882)
(325)
Earnings (loss) before
income taxes (4,046) 888 (3,397) 2,052
Net earnings (loss) (3,050) 537 (2,683) 1,241
Per share data:
Net earnings (loss):
Primary ($0.37) $0.07 ($0.33) $0.16
Fully diluted ($0.37) $0.07 ($0.33) $0.16
Weighted average number
of shares:
Primary 8,184 7,773 8,164 7,555
Fully diluted 8,184 8,049 8,164 7,875
Consolidated Balance Sheet Data (Unaudited)
(In Thousands)
June 30, 1996
Cash
$783
Accounts receivable, net
14,434
Refundable income taxes
627
Other current assets
1,501
Total current assets
17,345
Property and equipment, net
2,480
Intangible and other assets
47,208
Total assets
67,033
Current maturities of long-term obligations
8,447
Notes payable and other obligations
677
Line of credit
11,675
Accrued income taxes
--
Deferred income taxes, current portion
1,123
Other current liabilities
4,585
Total current liabilities
26,507
Notes payable and other obligations, less current portion
261
Deferred income taxes, less current portion
1,383
Long-term obligations, less current maturities
1,106
Total liabilities
29,257
Redeemable stock
375
Shareholders' equity
37,401
Total liabilities and shareholders' equity
$67,033
SAN DIEGO, CA -- Aug. 15, 1996 -- Cypress Bioscience
Inc. (NASDAQ:CYPB) Thursday announced its financial results for the
second quarter of 1996.
For the quarter and six months ended June 30, 1996, the company
reported net losses of $1.1 million, or $0.04 per share, and $3.3
million, or $0.12 per share, respectively, compared with net losses
of $1.6 million, or $0.09 per share and $1.2 million, or $0.07 per
share, respectively, for the corresponding periods of 1995.
Total expenses for the quarter and six months ended June 30,
1996, were $1.8 million and $4.2 million, compared with $2.6 million
and $5.3 million for the same periods of 1995.
Sales of $606,000 for the six months ended June 30, 1996,
reflect shipments of the company's product, the PROSORBA column,
made directly by the company to customers beginning May 1, 1996, as
a result of the previously announced termination of the company's
distribution agreement with Baxter Healthcare Corp. For the same
period of 1995, total revenue of $4.0 million included a $3.0
million take-or-pay payment received from Baxter.
PROSORBA column shipments made directly by the company to
customers subsequent to regaining distribution rights from Baxter
were significantly greater than average PROSORBA column shipments
made by Baxter during the term of its exclusive distribution
agreement.
In conjunction with the Baxter agreement, internal sales and
marketing efforts in place through March of 1995 were suspended
through June 1996, resulting in a decrease in sales and marketing
expenses. Such expenses are expected to increase, however, as the
company has recently resumed internal sales and marketing efforts
for its PROSORBA column.
Total expenses for the six-month period ended June 30, 1996,
decreased primarily as a result of the company's efforts to control
costs. In addition, during the same period of 1995, the company had
a non-recurring expense of $625,000 reflecting its purchase of the
minority interest of its former majority-owned subsidiary, CELx
Corp. Research and development expenses declined during the first
half of 1996 primarily as a result of a temporary reduction in
clinical trial activity.
The company anticipates an increase in research and development
expenses as it increases clinical trial activity in future periods.
For the six months ended June 30, 1996, the company incurred
restructuring costs of $454,000 the majority of which related to
severance payments made to terminated employees.
General and administrative expenses increased principally as a
result of costs associated with the company's new chief executive
officer and president, chief operating officer, both of which were
hired in December 1995, and the resignation of the company's chief
scientific officer in March 1996.
The company's cash position as of June 30, 1996, was $8.7
million. Additional current assets include a $600,000 prepayment of
clinical trial costs and an approximately $400,000 increase in
inventory related to the company's efforts to build inventory levels
during the first half of 1996.
Cypress Bioscience is a medical device company that is a leader
in the field of immuno-adsorption therapy. The company's first
product, the PROSORBA column, has FDA marketing approval for the
treatment of idiopathic thrombocytopenic purpura, an immune-mediated
bleeding disorder.
In September 1995, Cypress announced positive results of a pilot
clinical trial using the PROSORBA column for rheumatoid arthritis
therapy and has begun a controlled clinical trial in rheumatoid
arthritis.
Except for the historical information contained herein, this
news release contains forward-looking statements that involve risks
and uncertainties, including the risk that the company may not be
able to effectively resume internal sales and marketing efforts for
its PROSORBA column or increase its clinical trial activity, as well
as other risks detailed from time to time in the company's SEC
reports, including the company's report on Form 10-K/A for the year
ended Dec. 31, 1995, and subsequent periodic reports.
CYPRESS BIOSCIENCE INC.
Condensed Financial Data
(In thousands, except per-share data)
(Unaudited)
Income Statements
Quarter Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1995
Revenue $ 588 $ 1,044 $ 606 $
4,060
Interest income 128 35 248
62
Total revenues 716 1,079 854
4,122
Expenses 1,850 2,638 4,189
5,325
Net loss $(1,134) $(1,559) $(3,335)
$(1,203)
Net loss per share (4 cents) (9 cents) (12 cents) (7
cents)
Weighted average number
of shares outstanding
during the period 28,728 17,149 27,172
17,085
Balance Sheets
Dec. 31, June 30,
1995 1996
Assets
Cash and investments $ 1,010 $ 8,699
Other current assets 1,850 2,757
Non-current assets 1,704 1,670
Total assets $ 4,564 $13,126
Liabilities and Stockholders' Equity (Deficit)
Current liabilities $ 3,549 $ 1,621
Long-term liabilities 1,540 582
Stockholders' equity (deficit) (525) 10,923
Total liabilities and stockholders'
equity (deficit) $ 4,564 $13,126
ATLANTA, GA -- AUGUST 15, 1996 -- ROADMASTER
INDUSTRIES, INC. (NYSE: RDM) today announced results for the
quarter ended June 30, 1996.
As expected, the continued underperformance of the company's
DP/Vitamaster division significantly contributed to the loss for the
quarter as the current year product lines closed at the end of June.
As previously announced, restructuring efforts were in place July 1,
1996 with the expected impact of improving the company's results
during the latter half of this year. Demand for the company's
bicycle products met or exceeded expectations resulting in continued
market share gains among domestic bicycle producers. Also, as a
result of the improved raw material prices and product mix, the
Roadmaster toy division reported substantially improved
profitability and is poised for double- digit operating profit
results for the full year.
In line with the company's expectations, the net loss for the
quarter totaled $5.1 million, or $0.10 per share, compared with a
net loss of $5.6 million, or $0.11 per share for the second quarter
of 1995. The company further noted that its net loss decreased
slightly from the second quarter of 1995 and the first quarter of
1996 excluding the effect of the sale of its camping unit.
Revenue for the second quarter of 1996 was $104.3 million, a
decrease of 40% over last year's revenue for the comparable period
of $172.7 million. Approximately half of the revenue decrease
resulted from the sale of Roadmaster's camping unit in the first
quarter of this year which contributed $32.5 million in revenues
during the second quarter of 1995. Of the remaining $35.9 million
decline, approximately one half related to decreased shipments of
fitness products with the remainder relating to decreased shipments
of swingsets and to a lesser degree the overall retail environment
across various other product lines. The decrease in fitness product
sales reflects the company's decision to eliminate distribution of
certain treadmill categories which have historically reduced
operating profits.
The operating loss for the second quarter of 1996 totaled $1.0
million compared to operating income of $0.9 million in the second
quarter of 1995. Interest expense improved by $2.6 million from
$9.2 in the second quarter of 1995 to $6.6 million in the present
quarter. The decrease in interest resulted from the application of
proceeds from the sale of the camping unit and the reduction in
working capital from the asset sale and other existing product lines
which the company selectively reduced.
As previously announced, Roadmaster has completed a major step
towards its overall restructuring with a definitive agreement to
sell its bicycle division and certain toy product lines to Brunswick
Corporation (NYSE: BC) for cash consideration of $212 million. In
the second quarter and year to date 1996, these business contributed
$46.5 million and $84.3 million of revenue, respectively, and $3.3
million and $6.7 million of operating profit, respectively.
The company stated that all necessary actions are underway to
achieve a timely closing of the bicycle division sale within the
next thirty days. The company has completed the necessary
regulatory clearance and has signed a commitment letter with its
lead bank to provide a new revolving credit facility to meet the
company's financing requirements after the sale.
The company has made an offer to purchase its 11.75% Senior
Subordinated Notes at par which, assuming a complete tender, would
result in the elimination of approximately $10.6 million in interest
expense per year. The remaining proceeds are anticipated to be used
to further reduce the company's outstanding indebtedness or for
general corporate purposes.
Henry Fong, Chief Executive Officer of Roadmaster, stated, "The
results for the second quarter reflect the completion of a difficult
season in our fitness equipment business. This business enters a
new fiscal year with reduced operating costs, streamlined product
offerings and a newly focused management structure and team." Mr.
Fong continued, "Roadmaster remains committed to building its core
toy business. The Flexible Flyer and American Playworld brands have
great potential and continue to be market leaders in their
respective categories and strong profit performers for the company."
Roadmaster is a leading supplier of fitness equipment and
bicycles and a major supplier of toys and team sports equipment
primarily to mass merchants. The brand names under which the
company's products are sold include Flexible Flyer, DP, Vitamaster,
Roadmaster, Hutch, Reach and Forster.
ROADMASTER INDUSTRIES, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
6/30/96 7/1/95 6/30/96 7/1/95
Net sales $104,338 $172,713 $233,752 $348,259
Cost of sales 93,375 152,935 206,567 304,524
Gross profit 10,963 19,778 27,185 43,735
Selling, general and
administrative
expenses 12,005 18,921 28,422 36,239
Operating income
(loss) (1,042) 857 (1,237) 7,496
Other expense, net:
Interest expense 6,595 9,185 14,558 17,103
Gain on sale
of subsidiary -- -- (20,151) --
Other, net 705 857 1,405 1,970
7,300 10,042 (4,188) 19,073
Earnings before
income tax
expense (8,342) (9,185) 2,951 (11,577)
Income tax
expense (3,209) (3,606) 3,454 (4,521)
Net earnings
(loss) $(5,133) $(5,579) $(503) $(7,056)
Earnings (loss) per common share:
Primary and fully
diluted $(0.10) $(0.11) $(0.01) $(0.14)
Weighted average common shares
outstanding and common stock
equivalents:
Primary and fully
diluted 49,177 49,083 49,177 48,866
The information contained herein was obtained from the management of
ROADMASTER INDUSTRIES, INC. and other sources deemed to be
reliable. This does not constitute the solicitation of the purchase
or sale of securities. Lippert/Heilshorn & Associates, Inc. is
employed by the Company as its investor relations firm.
CONTACT: Jeff Hinton
ROADMASTER INDUSTRIES, INC.
250 Spring Street, NW 3S
Atlanta, GA 30303
(404) 586-9000
OR
Richard Foote/Jeffrey Volk
LIPPERT/HEILSHORN & ASSOCIATES
212/838-3777
E-Mail: RICK@SMTP.LHAI.COM
FREMONT, Calif. -- Aug. 15, 1996 -- The Men's
Wearhouse (NASDAQ NMS Symbol:SUIT) today reported a 35.8 percent
increase in net earnings for the second quarter of fiscal 1996
compared with the second quarter of fiscal 1995.
For the 13 weeks ended August 3, 1996, the company reported net
earnings of $4,009,000, or $.19 per share, versus net earnings of
$2,951,000, or $.15 per share, for the 13 weeks ended July 29, 1995.
As previously reported, revenues for the 13 weeks ended August 3,
1996 increased 17.0 percent to $98.9 million versus sales of $84.5
million for the 13 weeks ended August 5, 1995. Net sales for the 13
weeks ended July 29, 1995 were $85.7 million.
For the first 26 weeks of fiscal 1996, net earnings were
$7,118,000, or $.34 per share, compared with net earnings of
$4,977,000, or $.26 per share, for the same period a year ago.
Sales for the 26 weeks ended August 3, 1996 were $202.6 million
versus sales of $168.2 million for the 26 calendar weeks ended
August 5, 1995. Sales for the 26 weeks ended July 29, 1995 were
$167.1 million.
The company noted that the change in timing of the end of the
13- and 26-week periods is due to the additional week included in
the year ended February 3, 1996, a 53-week year. In addition, the
per share amounts for the 1995 periods have been adjusted to reflect
a 50 percent stock dividend effected on November 15, 1995.
Comparable store sales for the 13 and 26 weeks ended August 3,
1996 increased 0.7 percent and 4.1 percent, respectively, compared
with increases of 6.6 percent and 5.5 percent for the 13 and 26
weeks ended August 5, 1995. Comparable store sales for the 13 and
26 weeks ended July 29, 1995 increased 6.4 percent and 5.3 percent,
respectively. Comparable store sales increases were computed by
comparing same store sales for each period with such sales for the
same calendar weeks of the prior year.
As of August 3, 1996, The Men's Wearhouse operated 297 stores in
30 states. This compares with 258 stores in 27 states at July 29,
1995.
"We are pleased that the results for the first half of fiscal
1996 are in line with our expectations for the year. However, as we
have reported previously, our sales in the past two months have been
impacted by significant competitive advertising and price promotion
activity in several markets," commented David Edwab, chief operating
and financial officer.
"[Kuppenheimer Manufacturing Co., a] major competitor in
several of these markets filed for
bankruptcy protection last week and indicated [it] plan[s] to close a
large number of their stores," he continued.
"While we do not believe our competitors can continue their
current pricing strategy over the long term, the current competitive
pricing environment could impact our original expectations for the
third and fourth quarter of fiscal 1996.
"However," he continued, "we believe that the continued
consolidation in our industry will enhance our presence in these
markets over the long term. Consequently, we intend to maintain our
traditional strategies of providing quality merchandise and
excellent service at everyday low prices and have chosen not to
engage in heavy discounting to meet our competitors' promotional
pricing levels. We are continuing to manage expenses in an attempt
to mitigate the potential impact of the competitive environment,"
Edwab added.
Edwab indicated that the company's plan to open 45-50 stores
during fiscal 1996, and end the year with approximately 325 stores,
is on track. During the second quarter, the company opened 12
stores and made its initial entry into St. Louis, where the company
opened two stores. In addition, the company opened one store each
in the new markets of Erie, Pennsylvania and Spartanburg, South
Carolina, five stores in the Washington, D.C.-Baltimore market, and
one store each in Milwaukee, Los Angeles and Chicago.
"Today, The Men's Wearhouse is opening its 300th store and in
the past several days, we have opened our first stores in the
Boston- Providence market," Edwab noted.
He said the company plans to open approximately 20 stores during
the third quarter of fiscal 1996. In addition to opening several
additional stores in the Boston-Providence market and one store each
in the new markets of Tallahassee, Florida and Kalamazoo, Michigan,
the company plans to increase its presence in existing markets,
including St. Louis, Chicago, Los Angeles, San Francisco, Houston,
Washington-Baltimore, Minneapolis-St. Paul, Milwaukee, Salt Lake
City and Columbia, South Carolina.
Founded in 1973, The Men's Wearhouse is one of the country's
largest off-price retailers of men's tailored business attire. The
stores carry a full selection of both brand name and private label
suits, sport coats, slacks, shoes, furnishings and accessories.
The company's convertible subordinated notes trade on the NASDAQ
SmallCap market under the symbol "SUITG".
This press release contains forward looking information. The
forward looking statements, including statements relating to the
company's performance for the year, are made pursuant to the Safe
Harbor provisions of the Private Securities Litigation Reform Act of
1995. These forward looking statements may be significantly
impacted by various factors described herein and in the company's
annual report on Form 10-K filed with the Securities and Exchange
Commission for the year ended February 3, 1996. There can be no
assurance that estimated earnings will be achieved.
THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
FOR THE INTERIM PERIODS ENDED
JULY 29, 1995 AND AUGUST 3, 1996
Three Months Ended
1995 1996
Net Sales $ 85,714,000 $ 98,885,000
Cost of goods sold, including buying
and occupancy costs 62,074,000 59,923,000
Gross margin 33,640,000 38,962,000
Selling, general and administrative
expenses 27,775,000 31,640,000
Operating income 5,865,000 7,322,000
Interest expense (net of Interest income
of $2,000 and $395,000 in 1995 and 1996,
respectively) 842,000 500,000
Earnings before income taxes 5,023,000 6,822,000
Provision for income taxes 2,072,000 2,813,000
Net earnings $ 2,951,000 $ 4,009,000
Net earnings per share of common
stock $ 0.15 $ 0.19
Weighted average number of common
and common equivalent shares
outstanding 19,398,000 21,213,000
THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
FOR THE INTERIM PERIODS ENDED
JULY 29, 1995 AND AUGUST 3, 1996
Six Months Ended
1995 1996
Net Sales $ 167,069,000 $ 202,582,000
Cost of goods sold, including buying
and occupancy costs 102,993,000 124,658,000
Gross margin 64,076,000 77,924,000
Selling, general and administrative
expenses 54,124,000 64,971,000
Operating income 9,952,000 12,953,000
Interest expense (net of Interest income
of $37,000 and $762,000 in 1995 and
1996, respectively) 1,480,000 839,000
Earnings before income taxes 8,472,000 12,114,000
Provision for income taxes 3,495,000 4,996,000
Net earnings $ 4,977,000 $ 7,118,000
Net earnings per share of common
stock $ 0.26 $ 0.34
Weighted average number of common
and common equivalent shares
outstanding 19,349,000 21,212,000
THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
ASSETS July 29, August 3,
1995 1996
Current assets:
inventory $ 139,057,000 $ 161,002,000
Other current assets 6,546,000 19,565,000
Total current assets 145,603,000 180,567,000
Property and equipment, net 50,432,000 63,954,000
Other assets 1,883,000 10,015,000
Total assets $ 197,918,000 $ 254,536,000
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $ 47,990,000 $ 45,502,000
Long term debt 54,109,000 57,500,000
Other liabilities 5,149,000 6,558,000
Shareholders' equity 90,670,000 144,976,000
Total liabilities and equity $ 197,918,000 $ 254,536,000
BOCA RATON, Fla. -- Aug. 15, 1996 -- Sensormatic
Electronics Corporation (NYSE:SRM) Thursday reported earnings for
the fourth quarter of fiscal year 1996 of $453,000 or $0.01 per
share, as compared to $12.6 million or $0.16 per share earned in the
fourth quarter of fiscal year 1995 and a net loss of $0.02 per
share, before restructuring and special charges, reported in the
third quarter of fiscal year 1996. Revenues for the fourth quarter
were essentially flat at $257.5 million as compared to $261.9
million in the year ago quarter and up 14% from $225.2 million
reported in the third quarter of fiscal year 1996.
Operating income for the fourth quarter of fiscal year 1996 was
$8.7 million, down from $11.4 million for the fourth quarter of
fiscal year 1995 but up from $1.0 million in the third quarter of
fiscal year 1996 before restructuring and special charges. The
decline of $2.7 million from the year-ago quarter was due primarily
to lower product pricing resulting from competition in certain
segments of the retail EAS markets and lower gross margins resulting
from certain curtailed manufacturing operations, offset in part by
reduced operating expenses. Manufacturing operations were curtailed
as a result of planned reductions in inventory levels. Worldwide
inventory levels decreased approximately $80 million from the
previous year-end, including restructuring and special writedowns.
The improvement in fourth quarter operating income as compared
to the third quarter of fiscal year 1996, before restructuring and
special charges, was mainly due to higher sales volume and lower
operating expenses as a percent of sales. On increased volumes,
operating expenses declined as a percent of sales from 56.0% in the
third quarter to 49.5% in the fourth quarter.
Sensormatic reported a net loss of $97.7 million, or $1.32 per
share, for fiscal year 1996. The net loss includes restructuring
and special charges taken earlier in the year with an estimated
after-tax effect of $118.2 million or $1.60 per share. Revenues for
fiscal year 1996 increased 12 percent to $994.6 million as compared
to $889.1 million in fiscal year 1995. All regions and business
units increased revenues over the previous year. Excluding
restructuring and special charges, net income for fiscal year 1996
was $20.5 million, or $0.28 per share, as compared to $73.6 million
or $1.02 per share for fiscal year 1995.
Restructuring and special charges for the year totaled $186.0
million pretax. Restructuring charges of $85.3 million reflect
costs associated with personnel reductions, product line
rationalization and facilities consolidation and special charges of
$100.7 million primarily reflect provisions for accounts receivables
and inventories. The net cash outlay of these charges is estimated
to be approximately $33.0 million.
President and Chief Executive Officer Bob Vanourek stated,
"Fiscal year 1996 was a challenging year for the company. During
the year, we acknowledged that, while the company is the global
leader in electronic security systems with nearly $1 billion in
revenues, it faced some challenges from rapid growth. The second
and third quarter restructuring charges we took reflect the actions
management initiated to control expenses, upgrade processes and
improve cash flow. In the fourth quarter, we began to see the first
positive trends emerging from those programs. Sales, profits and
inventory levels all improved from third quarter levels. Our focus
will continue to be on expense and asset management, investments in
processes and systems, and quality growth. I am confident we will
continue to make good progress during the course of fiscal 1997."
For more information on Sensormatic, visit its World Wide Web
Site at " target=_new>http://www.sensormatic.com">http://www.sensormatic.com.
Sensormatic Electronics Corporation, the world leader in
electronic security systems and the Official Electronic Security
Supplier for the 1996 Olympic Games, is a fully integrated supplier
of electronic security to the retail, gaming, commercial and
industrial marketplaces. Sensormatic is also a leader in the
security industry in integrated source tagging -- a process where
consumer goods manufacturers apply anti-theft tags at the point of
packaging or manufacturing.
The company's electronic article surveillance (EAS), closed-
circuit television (CCTV) and exception monitoring systems are used
by both soft and hard goods retailers to deter shoplifting and
internal theft.
Sensormatic's CCTV, access control and electronic asset
protection (EAP) security systems are used by retail, commercial and
industrial customers to protect assets, information and people. All
of the company's products are marketed by an extensive worldwide
sales and service organization complemented by a broad distribution
network.
Sensormatic Electronics Corporation
Consolidated Statements of Operations
For the Periods Ended June 30,
($ Millions Except Per Share)
Fourth Quarter Full Year
1996 1995 1996 1995
Revenues:
Sales $ 220.4 $ 223.6 $ 850.8 $ 762.4
Rentals 11.4 13.7 49.7 50.6
Other 25.7 24.6 94.1 76.1
Total revenues $ 257.5 $ 261.9 $ 994.6 $ 889.1
Operating costs and expenses:
Cost of sales $ 116.7 $ 107.7 $ 452.9(a) $ 354.0
Deprec. on revenue
equipment 4.6 4.8 20.3(b) 16.3
Selling, customer service
and administrative 116.0 126.5 525.8(c) 383.6
Restructuring Charges - - 85.3
-
Research, development
and engineering 6.8 6.9 27.7(d) 22.7
Amortization of intangible
assets 4.7 4.6 17.1 14.6
Total op. costs
and expenses $ 248.8 $ 250.5 $1,129.1 $ 791.2
Operating income (loss) $ 8.7 $ 11.4 $ (134.5) $ 97.9
Other (expenses) income:
Interest income $ 6.0 $ 4.6 $ 16.9 $ 17.2
Interest expense (12.5) (8.3) (38.4) (29.0)
Other, net (1.2) 0.1 (3.9) 2.9
Total other
(expenses) income $ (7.7) $ (3.6) $ (25.4) $ (8.9)
Income (Loss) from continuing
ops before income taxes $ 1.0 $ 7.8 $(159.9) $ 89.0
Net income (loss) $ 0.5 $ 12.6 $ (97.7) $ 73.6
Earnings (Loss) per
share(e) $ 0.01 $ 0.16 $ (1.32) $ 1.02
Shares outstanding:
Primary 74,344 73,847 73,588 71,979
Fully-diluted NA 74,256 NA 72,167
(a) Includes special charges of $29.1
(b) Includes special charges of $2.6
(c) Includes special charges of $68.5
(d) Includes special charges of $.5
(e) Primary and fully diluted
Sensormatic Electronics Corporation
Consolidated Condensed Balance Sheets
($ Millions)
June 30,
1996 1995
Assets:
Cash and marketable securities $ 116.9 $ 70.3
Receivables and leases, net 448.5 400.7
Inventories and revenue
equipment, net 214.7 290.7
Goodwill, net 487.5 496.6
All other assets 362.7 312.6
Total assets $ 1,630.3 $ 1,570.9
Liabilities and shareholders'
equity:
Payables and other liabilities $ 282.1 $ 291.5
Debt 516.5 326.7
Shareholders' equity 831.7 952.7
Total liabilities and equity $ 1,630.3 $ 1,570.9
CONTACT: Sensormatic Electronics Corp.
Investor Contact: Alison Tanner
Director of Investor Relations
407/989-7556
or
Media Contact: Debbie Coller
Director of Communications
407/989-7035
LOS ANGELES, CA -- Aug. 15, 1996 -- YES Clothing Co.
(NASDAQ:YSCO) Thursday reported financial results for its first
quarter ended June 30, 1996.
Net loss for the first quarter was $141,000, or 2 cents per
share, compared with a net loss of $1,047,000, or 27 cents per
share, for the corresponding quarter a year ago. Sales for the
first quarter were $1,030,000, compared with $2,686,000 in the
comparable 1995 period.
The decline in sales was due to a major restructuring of the
company's product line, including the types and styles of garments
manufactured and the phase-out of other product lines.
The company will debut its YES Signature and YZone lines of
apparel for women in junior sizes and the Body Glove line of men's
and boys' apparel at the MAGIC International Show in Las Vegas, from
Aug. 26 to 30, 1996.
YES Clothing designs, contract-manufactures and markets lines of
apparel for women, young men and boys. The company sells its
apparel to retail department stores and specialty chains and stores.
YES CLOTHING CO.
Statement of Operations
(Unaudited)
Three months ended
June 30,
1996 1995
Net sales $1,030,000 $2,686,000
Cost of sales 481,000 1,841,000
Gross profit 549,000 845,000
Commission income 0 31,000
Gross operating income 549,000 876,000
Operating expenses:
Selling, general and administrative 669,000 1,822,000
Loss from operations (120,000) (946,000)
Trademark acquisition 0 25,000
Gain on sale of assets 54,000 0
Interest income (expense) -- net (75,000) (76,000)
Loss before income tax (141,000) (1,047,000)
Provision for income taxes 0 0
Net loss (141,000) (1,047,000)
Loss per share (2 cents) (27 cents)
Average number of shares outstanding 7,036,000 3,852,000
IRVINE, Calif. -- Aug. 15, 1996 -- StarBase Corp.
(NASDAQ EBB:SBAS), a development stage company, Thursday announced
its results of operations for the quarter ended June 30, 1996.
The company reported that for the quarter ended June 30, 1996,
revenue was $209,000, compared with $510,000 for the same quarter in
the prior year. The net loss for the quarter was $1,210,000, or 12
cents per share, compared with a net loss of $2,125,000, or 38 cents
per share, for the same quarter in the prior year.
The results for the quarter reflect the company's reorganization
that started in the spring of 1995, when StarBase decided to focus
entirely on the development and marketing of software designed to
increase team productivity, rather than individual programmer
productivity. As a result, the company's consulting division was
discontinued and no revenue was recorded for consulting services in
the quarter ended June 30, 1996.
For the same quarter in 1995, consulting services produced
revenue of $361,000, but incurred a negative gross margin of
$123,000. Product and license revenue was $209,000 for the quarter,
compared with $149,000 for the same period in the prior year.
Sales of product during the first quarter were minimal due to
the fact that funds were not sufficient to support sales and
marketing programs to grow the product line.
During the latter part of the first quarter the company raised
approximately $7.8 million from the sale of additional equity
pursuant to a private placement offering. This infusion of capital
has allowed the company to begin implementing its marketing plans
and to proceed with its plans to build a sales organization.
Commercial shipment of StarTeam 2.0, which replaces StarTeam 1.0,
will commence at the end of August 1996.
StarBase produces StarTeam, the Integrated Team Environment for
software development. Within StarTeam, all essential development
tools come together for true functional integration in one easy-to-
learn user interface. StarTeam runs on Windows 95 and Windows NT
and supports all popular file-based programming environments
including C++, Delphi, Visual Basic, JAVA and CGI.
StarBase also produces Roundtable, an enterprise-class software
configuration management tool for Progress Software. StarBase is
located at 18872 MacArthur Blvd., Irvine, Calif. 92612 and its World
Wide Web site can be accessed at " target=_new>http://www.starbasecorp.com">http://www.starbasecorp.com.
StarBase Corp.
Summarized Financial Information
For the Quarter Ended June 30, 1996
(In thousands, except per-share amounts)
Three months ended
June 30,
(unaudited)
1996 1995
Net revenue $ 209 $ 510
Gross margin (loss) 208 (2)
Net loss $(1,210) $(2,125)
Net loss per share $ (0.12) $ (0.38)
Weighted average shares outstanding 10,215 5,593
CONTACT: StarBase Corp., Irvine
Robert Leimena, 714/442-4416, fax: 714/442-4404
rleimena@starbasecorp.com
or
Lawrence Gibson (investor relations)
714/442-4542, fax: 714/442-4404
lgibson@starbasecorp.com