LOS ANGELES, CA -- Sept. 5, 1996 -- Sizzler
International Inc. (NYSE:SZ) Thursday announced profitable results
for the first quarter and said it is continuing progress on its
strategic restructuring, with its June 2 Chapter 11 filing
proceedings continuing on schedule.
For the 12 weeks ended July 21, 1996, the company reported
revenues of $84,436,000 and a net income of $494,000, or 2 cents per
share, compared with revenues of $105,501,000 and net income of
$436,000, or 2 cents per share, for the first quarter of last year.
The $21 million, or 20 percent decrease in revenues, primarily was
due to the closure of 130 U.S. restaurants as part of the company's
restructuring.
In announcing first-quarter results, Kevin Perkins, Sizzler
International president and chief executive officer, said: "We
continue to proceed on track with our Chapter 11 filing and look
forward to emerging from the Chapter 11 process by the end of this
fiscal year."
Sizzler International operates or licenses 445 Sizzler
restaurants worldwide. In addition, the company operates 93
Kentucky Fried Chicken (KFC) restaurants and one The Italian Oven
restaurant in Queensland, Australia.
SIZZLER INTERNATIONAL INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per-share data)
Twelve Weeks Ended Fifty-two Weeks Ended
July 21, July 23, April 30, April 30,
1996 1995 1996 1995
Systemwide sales
(all franchised and
company-owned
restaurants) $ 181,266 $ 217,919 $ 875,704 $
937,670
Revenues $ 84,436 $ 105,501 $ 436,194 $
462,151
Net income (loss) $ 494 $ 436 $(138,458) $
6,695
Net income (loss)
per common share $ 0.02 $ 0.02 $ (4.99) $
0.24
Common and common
equivalent shares 28,848 27,798 27,773
28,272
SIZZLER INTERNATIONAL INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)
July 21, April 30,
1996 1996
Total current assets $ 40,544 $ 23,455
Total assets $ 189,034 $ 178,547
Total current liabilities $ 24,444 $ 63,185
Total long-term liabilities $ 120,230 $ 71,895
Total stockholders' investment $ 44,360 $ 43,467
Total liabilities and
stockholders' investment $ 189,034 $ 178,547
CONTACT: Sizzler International Inc., Los Angeles
Christopher R. Thomas, 310/823-2600
or
Financial Relations Board, Los Angeles
310/442-0599
Timothy Kent/Fiona Ross (general information)
Steven Seiler (media contact)
Tom Ekman (analyst contact)
LOS ANGELES, CA -- Sept. 5, 1996 -- DEP Corp. (NASDAQ
SmallCap:DPCAQ and DPCBQ) reported that fiscal 1996 net sales of
$119.1 million and operating income of $3.1 million were higher than
projections contained in the company's amended Disclosure Statement
filed with the Bankruptcy Court on May 8, 1996.
That Disclosure Statement projected net sales of $115.9 million
and operating income of $814,000 for fiscal 1996.
Robert Berglass, president and chief executive officer of DEP,
said, "I am particularly pleased that the company was able to exceed
the projected sales by more than $3 million and operating income by
more than $2 million, particularly in light of the numerous
challenges the company had to conquer over the past several months.
The company continues to have positive cash flow and entered fiscal
1997 with more than $11 million of cash on hand."
In comparing fiscal 1996 results with fiscal 1995, operating
income for the fiscal year ended July 31, 1996, was $3.1 million, up
from $1.5 million. Sales for fiscal 1996 were $119.1 million,
compared with $127.7 million for the prior year. The company stated
that more than 50 percent of the sales decline was due to lower
domestic and international sales of Agree and Halsa, which fell $4.5
million.
The net loss for fiscal 1996 was $8 million, or $1.27 per share,
compared with a net loss of $27 million, or $4.32 per share, for the
prior year. Fiscal 1996 was substantially impacted by a charge of
$3.9 million, or 62 cents per share, related to reorganization
expenses. Reorganization expenses were higher than projected due to
the professional fees incurred by the lender group and a write-off
of debt issuance cost arising from DEP's prior loan.
Fiscal 1996 results were also impacted by a 15 percent increase
in interest expense over the prior year. Fiscal 1995 included an
after-tax charge of $24.1 million, or $3.85 per share, resulting
from a write-down in the asset value of Agree and Halsa.
Berglass said that he expects next fiscal year results to
improve due to a number of factors including an effective lower
interest rate under the proposed consensual plan and the full-year
effects of the cost reduction programs.
"Our goal is to strengthen fiscal 1997 sales by increasing our
advertising spending in order to stabilize and reinvigorate certain
brands and to continue to actively pursue new contract packaging
customers in an effort to increase volume and lower our per-unit
costs. Additionally, we have launched a new "department store-type"
skin care line. Shipments have started to certain mass
merchandisers and drug stores who are participating in the test
market."
As previously reported, DEP has reached an agreement with its
lender group for a consensual plan of reorganization which the
company believes will enable it to restructure its long-term debt
consistent with its cash flow.
On Sept. 9, 1996, the Bankruptcy Court is to consider approval
of the proposed amended disclosure statement filed with the
Bankruptcy Court on Aug. 23, 1996, which incorporates the
modifications of the consensual plan. If approved, the stockholders
and lenders will be solicited and asked to vote in favor of the plan
of reorganization.
The company filed to restructure under Chapter 11 of the
Bankruptcy Code on April 1, 1996. Fiscal 1996 results, which have
been reported to the United States Trustee in accordance with the
company's Chapter 11 proceedings, are unaudited and are subject to
possible year-end audit adjustments.
DEP Corp. is a consumer products company that develops,
manufactures, and markets a wide variety of hair, oral and skin care
products under 10 major brand names: Dep, L.A. Looks, Agree, Halsa,
Lilt, Topol, Lavoris, Natures Family, Porcelana and Cuticura.
DEP CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
12 Months Ended
July 31,
(Unaudited)(b) (Audited)
Actual Projected(c) Actual
1996 1996 1995
Net sales (a) $119,088,000 $115,897,000
$127,689,000
Gross profit 74,066,000 73,672,000
80,194,000
Selling, general and
administrative expense 70,986,000 72,858,000
78,728,000
Income from operations
before writedown and
reorganization items 3,080,000 814,000
1,466,000
Writedown in value of
Agree/Halsa assets
-- -- 25,166,000
Interest expense 7,120,000 7,070,000
6,177,000
Reorganization items 3,895,000 1,270,000 --
Loss before income taxes (7,958,000) (7,408,000)
(29,823,000)
Income taxes (credit)
-- -- (2,865,000)
Net loss ($7,958,000) ($7,408,000)
($26,958,000)
Per share data:
Loss before writedown
in Agree/Halsa assets
and reorganization items ($0.65) ($0.99)
($0.47)
Writedown in Agree/Halsa
assets
-- -- ($3.85)
Reorganization items ($0.62) ($0.20) --
Net loss per share ($1.27) ($1.19)
($4.32)
Weighted average shares
outstanding 6,250,368 6,251,000
6,244,106
(b) Subject to year-end audit adjustments (c) As per the company's
amended disclosure statement dated as of May 8, 1996 -0-
CONTACT: DEP Corp., Rancho Dominguez, Calif.
D. Lee Johnson, 310/604-0777 -
or -
Sitrick & Co.,
Ann Julsen, 310/788-2850
BALA CYNWYD, Penn. -- Sept. 5, 1996 -- Holly
Products Inc., (NASDAQ: HOPR, HOPRW, HOPRP; BSE: HOP, HOPP) today
announced results of its first quarter ended June 30, 1996.
As previously stated in our March 1996 10-KSB, the company
experienced a substantial loss for the year attributable primarily
to its woodworking business, HollyWood Manufacturing Inc. and cost
of ceasing operations thereof. Additionally, the company
experienced one time costs and a loss due to the reorganization and
move of its wholly owned subsidiary, Navtech Industries Inc. to
substantially larger quarters on the Navajo Reservation in Shiprock,
NM.
Results for the first quarter ended June 30, 1996, show a
substantial turnaround for the company, less the one time
administrative expenses associated with supporting Country World
Casinos Inc.'s Chapter 11 proceedings.
William H. Patrowicz, president of Holly Products Inc., said,
"The Company has reorganized and moved Navtech to substantially
larger quarters, equipped Navtech with modern equipment and expanded
its customer base such that Navtech is beginning to realize its true
potential. Accordingly, first quarter results are showing a
significant turnaround. Country World, after much difficulty during
1995, will hopefully emerge from Chapter 11 and allow the Company
and its shareholders to realize its true potential."
Holly Products Inc., headquartered in Bala Cynwyd, has a wholly
owned subsidiary, Navtech Industries Inc. of Shiprock and a majority
owned subsidiary, Country World Casinos Inc., of Denver, CO.
Navtech is a manufacturer and tester of electronic components for
casino equipment, hotel equipment and signage. Country World
Casinos Inc. is a development corporation, whose plan is to
construct a casino in Black Hawk, CO, as well as a hotel complex.
Three Months Ended June 30
1996 1995
Net Sales $1,794,197 $ 997,776
Gross Profit (Loss) 477,427 (146,401)
Operating Expenses:
General, Selling and Administrative 1,238,927 835,794
Operating (Loss) (761,500) (982,195)
Loss Per Common Share: $ .04 $ .23
FOUNTAIN VALLEY, Calif. -- Sept. 5, 1996 -- FHP
International Corporation (NASDAQ:FHPC) today reported financial
results for the fourth quarter and fiscal year ended June 30, 1996.
Fully diluted earnings per share were $0.43 in the fourth
quarter and $1.41 for the year, before reflecting the impact of
extraordinary charges for restructuring and increased OPM reserves
that were recorded in prior quarters of the fiscal year. While
there were no such charges in the fourth quarter, the effective tax
rate for the quarter was impacted by the full year effect of the
extraordinary charges.
Results for the fourth quarter and full twelve months of fiscal
1996 compared with the same periods of the previous fiscal year are
as follows:
Three months ended Twelve months ended
June 30 June 30
(millions of dollars, except per share amount)
1996 1995 1996 1995
Revenues $1,098 $1,000 $4,179 $3,909
Operating income before
restructuring and
reserve charges 41.7 22.3 137.8 149.2
Restructuring charge 0 75.1 9.7 75.1
OPM reserve charge 0 0 45.0 0
Operating income (loss)
after restructuring and
reserve charges 41.7 (52.8) 83.1 74.1
Net income (loss) attributable
to common stock
Before charges 18.5 6.8 56.1 58.5
Including charges 14.8 (39.8) 17.7 12.0
Primary earnings (loss)
per share
Before charges 0.44 0.17 1.35 1.43
After charges 0.35 (0.97) 0.43 0.29
Fully-diluted earnings
(loss) per share
Before charges 0.43 0.23 1.41 1.45
After charges 0.36 (0.57) 0.75 0.64
During the quarter, the Company completed the sale of its
hospital and surrounding campus in Salt Lake City to Paracelsus
Healthcare Corporation for $70 million. Proceeds from the sale have
been used to pay down debt.
As a part of restructuring, Talbert Medical Management
Corporation (Talbert) was formed on January 1, 1996 as a physician
practice management company. Talbert manages professional and
licensed corporations (PCs) providing care through 54 ambulatory
medical and dental centers in California, Arizona, Utah, New Mexico
and Nevada. Effective July 1, 1996, management of Talbert's
operations in Guam has been transferred to FHP's HMO. Talbert
continues to provide medical care to FHP's members and also offers
its services to other payors.
Pro-forma financial results for what is now Talbert and the PCs
are as follows:
Three months ended Twelve months ended
June 30 June 30
(millions of dollars)
1996 1995 1996 1995
Revenues $200 $206 $779 $812
Pre-tax (Loss) (5) (21) (45) (92)
Membership
Total membership grew from 1,779,000 at June 30, 1995 to
1,913,000 at June 30, 1996, an increase of 7.5 percent. Senior Plan
(sm) enrollment reached 397,000, an increase of 5.9 percent over
last year, while commercial enrollment was 1,516,000, up 8.0 percent
over the prior year.
Health Care Costs
Health care costs increased from 83.7 percent of revenue for the
fourth quarter of fiscal 1995 to 84.6 percent of revenue for the
same quarter this year. Decreased premiums paid by employer groups
have been the primary contributor to higher health care costs as a
percent of revenue. The Company also experienced higher hospital
and pharmacy costs compared to the same quarter last year.
Health care costs were 84.5 percent of revenue for the 1996
fiscal year, compared with 82.8 percent in the prior year.
Selling, General and Administrative (SG&A) Expenses
The Company continued to reduce administrative expenses as a
percent of revenue. SG&A expenses for the fourth quarter ending
June 30, 1996 were 11.7 percent of revenue compared to 14.0 percent
for the same quarter last year.
For the fiscal year, SG&A expenses were 12.2 percent of revenue
compared with 13.3 percent in the prior fiscal year.
PacifiCare Transaction
On August 4, 1996, the Company entered into a definitive
agreement to be acquired by PacifiCare Health Systems, Inc. The
combined company will have nearly 4 million commercial and Medicare
members in 15 states and Guam and total revenue of more than $8.6
billion. The transaction had no effect on the Company's fiscal 1996
results.
FHP International Corporation is a diversified health care
services company which, through its HMO subsidiaries, serves members
in 11 states and Guam.
FHP INTERNATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Amounts in thousands, except per share data
and membership data)
Three month
period ended Percent Year ended Percent
June 30, Change June 30, Change
1996 1995 1996 1995
Revenue $1,097,510 $ 999,571 10% $4,179,284 $3,909,380
7%
Expenses:
Primary
healthcare 895,384 807,434 11 3,405,588 3,121,529
9
Other
healthcare 32,561 29,573 10 125,340 116,960
7
General, administrative
and
marketing 127,863 140,231 (9) 510,613 521,702
(2)
OPM reserve
charge - - - 45,000
- -
Restructuring
charges - 75,110 - 9,659 75,110
(87)
Total
expenses 1,055,808 1,052,348 - 4,096,200 3,835,301
7
Operating income
(loss) 41,702 (52,777) 179 83,084 74,079
12
Interest income,
net 4,787 2,485 93 15,033 6,107
146
Income (loss) before
income taxes 46,489 (50,292) 192 98,177 80,186
22
Provision (credit) for
income taxes 25,052 (17,126) 246 53,964 42,894
26
Net income
(loss) 21,437 (33,166) 165 44,153 37,292
18
Preferred stock
dividend 6,635 6,606 - 26,425 25,337
4
Net income (loss)
attributable to
common stock $14,802 $(39,772) 137 $17,728 $11,955
48
Primary earnings (loss)
per share attributable
to common stock $0.35 ($0.97) $0.43 $0.29
Weighted average number
of common shares and
common share
equivalents 41,802 40,954 41,524 41,057
Fully diluted earnings
(loss) per
share $0.36 ($0.57) $0.75 $0.64
Fully diluted weighted
average number of
common shares and
common shares
equivalent 58,770 57,916 58,492 58,018
Primary earnings per share
attributable to common
stock before
charges $0.44 $0.17 $1.35 $1.43
Fully diluted earnings
per share before
charges $0.43 $0.23 $1.41 $1.45
Medical membership:
Commercial 1,516,000 1,404,000
Senior 397,000 375,000
1,913,000 1,779,000
FHP INTERNATIONAL CORPORATION
CONSOLIDATED BALANCE SHEET INFORMATION
(Unaudited)
June 30, June 30,
(Amounts in thousands) 1996 1995
Cash and short-term investments $ 354,792 $ 456,364
Current assets 545,837 674,279
Total assets 1,988,386 2,315,816
Medical claims payable 371,949 341,222
Current liabilities 633,901 752,658
Long-term obligations 104,184 337,817
Total liabilities 824,757 1,175,675
Stockholders' equity 1,163,629 1,140,141