TUSTIN, CA -- Sept. 11, 1996 -- Cerplex
(NASDAQ:CPLX), a leading provider of high technology services
outsourcing, released today its Consolidated Balance Sheets at June
30, 1996 and Consolidated Statement of Operations for the three and
six month periods ended June 30, 1996.
These financial statements were previously included in the
company's Form 10-Q filed with the Securities and Exchange
Commission in August. Cerplex had previously released is its
estimated second quarter earnings on July 17, 1996, and the attached
financial information does not deviate from the information included
in the July 17 release.
The delay in announcing the financial figures was due to
purchase accounting adjustments for Cerplex SAS in France, which was
acquired during the second quarter.
James T. Schraith, Cerplex's president and chief executive
officer, stated: "We were pleased with the increase in net sales
and our return to profitability in the second quarter. However, the
company is still in a transitional stage and a number of issues will
continue to impact adversely the company's results of operations.
"As previously discussed, the company anticipates write-offs
during the third quarter associated with the closure of its Texas
operations and the resolution of the SpectraVision bankruptcy.
"Operational results for the third quarter will also be impacted
by operating losses associated with the company's Texas operations
and start-up costs associated with the opening of our new Ontario
hub facility. Due to these and other dynamics affecting its
business, the company expects to report a loss for the third quarter
1996."
About Cerplex
Cerplex is a leading independent provider of service
outsourcing, including repair and remanufacturing, parts and
logistics services, and knowledge-based support services, including
computer based training and help desk.
The company has developed extensive capabilities in these ares,
focusing on the computer and peripherals, telecommunications and
office automation markets.
Cerplex offers custom developed programs to OEM and TPM
customers that help to reduce their service costs, shorten response
times, and improve customer satisfaction. The company's
headquarters is located in Tustin, with service facilities
throughout the United States and Europe. Visit Cerplex's homepage
at " target=_new>http://www.cerplex.com">www.cerplex.com.
NOTE: This release contains forward-looking statements which
involve risks and uncertainties. The company's actual results may
differ substantially from the results discussed in the forward-
looking statements.
Factors that might cause such differences include, but are not
limited to, the effect of losses and other factors on the company's
credit facilities, business and results of operations; the company's
limited capital resources and its ability to fulfill its existing
obligations and ongoing capital needs, risks associated with excess
or obsolete inventory; the company's dependence on key customers and
their financial viability; the impact of competition; and the
company's ability to effectively manage growth. These and other
risk factors are discussed in the company's filing on Form 8-K, 10-Q
and 10-K.
The Cerplex Group Inc.
and subsidiaries
Consolidated Balance Sheets
(in thousands, except per share data)
(Unaudited)
June 30 December 30
1996 1995
ASSETS Current assets:
Cash and cash equivalents $ 27,206 $ 3,807
Accounts receivable, net 28,252 30,102
Inventories 28,819 27,789
Net assets of
discontinued operations 1,347 2,597
Prepaid expenses and other 4,924 2,267
Total current assets 90,548 66,562
Property, plant and equipment, net 28,919 17,988
Investment in joint venture -- 7,723
Goodwill 5,817 6,647 Other
long-term assets 4,452 2,973
Total assets $129,736 $101,893
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Accounts and notes payable $ 22,716 $ 17,024
Accrued liabilities 25,246 13,622
Short-term borrowings 45,446 --
Current portion of long-term debt 247 536
Income taxes payable 1,599 2,161
Total current liabilities 95,254 33,343
Long-term debt, less current portion 17,946 68,382 Other
long-term liabilities 6,214 --
Stockholders' Equity:
Preferred Stock, par value $.001;
3,066,340 shares authorized;
8,000 shares designated Series B
Preferred Stock, all of which are
issued and outstanding, aggregate
liquidation preference of $16,000 7,911 --
Common Stock, par value $.001;
30,000,000 shares authorized; 13,402,467
and 13,127,680 issued and outstanding
in 1996 and 1995, respectively 13 13
Additional paid-in capital 50,611 47,528
Notes receivable from stockholders (229) (226)
Unearned compensation (108) (143)
Accumulated deficit (47,897) (47,026)
Cumulative translation adjustment 21 22
Total stockholders' equity 10,322 168
Total liabilities and
stockholders' equity $129,736 $101,893 -0-
The Cerplex Group Inc.
and subsidiaries
Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)
Three months ended June 30 Six months ended June 30
1996 1995 1996 1995
Net sales $ 51,339 $ 32,488 $ 92,185 $ 66,489
Cost of sales 40,370 26,479 74,285 54,438
Gross profit 10,969 6,009 17,900 12,051
Selling, general
& administrative
expenses 8,582 5,235 15,639 9,312
Operating income 2,387 774 2,261 2,739
Equity in earnings
from joint venture -- 644 357 1,159
Gain on sale of
InCirT Division 450 -- 450
-- Interest expense,
net 1,658 1,221 3,169 2,445
Income (loss) from
continuing operations
before taxes 1,179 197 (101) 1,453
Income taxes 477 27 770 494
Income (loss) from
continuing
operations 702 170 (871) 959
Discontinued operations,
net of income taxes:
Income from operations -- 112 -- 153
Estimated loss from
liquidation of
discontinued
operations -- -- -- --
Income from discontinued
operations -- 112 -- 153
Net income (loss) $ 702 $ 282 $ (871) $ 1,112
Income (loss) per share:
Continuing
operations $ 0.05 $ 0.01 $ (0.07) $ 0.07
Discontinued
operations -- 0.01 -- 0.01
Net income (loss)
per share $ 0.05 $ 0.02 $ (0.07) $ 0.08
Weighted average
common and common
equivalent shares
outstanding 14,846 14,414 13,286 14,412