COMPTRONIX CORPORATION ANNOUNCES BANKRUPTCY COURT APPROVAL OF
PROPOSED SALE
BRENTWOOD, Tenn.--(BUSINESS WIRE)--Oct. 24, 1996--Comptronix Corporation (OTC Bulletin
Board:CMPX) today announced that the U.S. Bankruptcy Court for the Middle District of Tennessee has
approved the Company's proposed sale of substantially all of its assets to Sanmina Corporation. Terms
of the sale were previously announced. Consummation of the transaction is subject to expiration of the
waiting period under the Hart-Scott-Rodino Act, and is expected to take place on November 1, 1996.
CONTACT: Comptronix Corp. E. Townes Duncan, 205/582-1810
DEP Corp. plan of reorganization confirmed by bankruptcy court
LOS ANGELES, CA --Oct. 24, 1996--DEP Corp. (NASDAQ SmallCap:DPCAQ/DPCBQ) Thursday
announced that the U.S. Bankruptcy Court has confirmed the company's Second Amended Plan of
Reorganization, clearing the way for DEP's emergence from Chapter 11 on Nov. 4, 1996.
The plan, confirmed yesterday, had obtained the overwhelming support of the voting creditors and
stockholders.
Under the plan, which should become effective on Nov. 4:
-- The lender group, led by Foothill Capital Corp., will provide DEP with $62 million in long-term
financing at an interest rate of prime plus 2 percent, with a maturity date of July 31, 2002.
-- The lender group will receive $150,000 in cash in satisfaction of certain post-petition interest claims
and 542,488 shares of DEP common stock, plus warrants to purchase an additional 330,050 shares at a
price to be determined subsequent to the effective date. The company currently has 6,251,140 common
shares outstanding.
-- DEP will reclassify all of its existing common stock, including the stock issued the lenders, as one
class of voting stock so that all common shares have identical voting rights and privileges.
-- DEP will assume up to $1.150 million post-petition professional fees and expenses incurred by the
lenders, less payments made during the Chapter 11 proceeding.
-- Unsecured creditors will be paid, with 5 percent interest, over 18 months.
"We are pleased that we have been able to resolve this difficult situation in the best interest of all
constituents. The plan restructures the company's long-term debt to be consistent with our anticipated
cash flow, and treats all of our creditors and stockholders fairly," said Robert Berglass, chairman and
president of DEP.
"I want to thank the unsecured creditors committee, our suppliers, retail customers and employees for
their tremendous support during this challenging period. We look forward to turning our attention to
building the business."
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. The company employs approximately 300
people at its Rancho Dominguez, Calif., headquarters and production facility.
The company filed to restructure under Chapter 11 of the Bankruptcy Code on April 1, 1996.
CONTACT: DEP Corp., Rancho Dominguez D. Lee Johnson, 310/604-0777 or Sitrick and Co. Ann
Julsen, 310/788-2850
McKesson And FoxMeyer Jointly Announce Termination Of The Hart-Scott-Rodino Waiting Period For
FoxMeyer Transaction
SAN FRANCISCO, CA --October 24, 1996 (NYSE:MCK and FOX)--McKesson Corp. and FoxMeyer
Drug Company today jointly announced that the waiting period under the Hart-Scott-Rodino Act has
expired without objection or request for additional information from the Federal Trade Commission,
clearing the way for the sale of FoxMeyer's healthcare distribution business and related assets to
McKesson, pending Bankruptcy Court approval.
FoxMeyer Drug and certain affiliated companies filed to reorganize under Chapter 11 of the Bankruptcy
Code on August 27, 1996 in U.S. Bankruptcy Court of Wilmington, Delaware. A hearing on the sale is
scheduled in Bankruptcy Court for November 8, 1996.
McKesson Corp., with annual revenues of $14 billion, is a leading provider of pharmaceutical and
health care products and services. Through McKesson's U.S. Health Care business; a Canadian
subsidiary Medis Health and Pharmaceutical Services, and a minority interest in Mexico's Nadro, S.A.,
McKesson is the largest distributor of pharmaceuticals and health care products in North America. The
company also owns McKesson Water Products, one of the nation's largest distributors of bottled
drinking water, and 55% of Armor All Products (NASDAQ:ARMR), the world's leading producer of
automotive appearance products.
FoxMeyer Drug is the nation's fourth largest wholesaler of pharmaceutical products, health and beauty
aids. The Company, which is headquartered in Dallas, employs approximately 2,200 people in 21 states
and the District of Columbia.
CONTACT: McKesson Corp. Janet Bley, (415) 983-9357 Ann Julsen, (310) 788-2850
El Paso Electric Company Announces Third Quarter Financial Results
EL PASO, Texas--Oct. 24, 1996--El Paso Electric Company (AMEX:EE), reported net income
applicable to common stock of approximately $19.8 million ($.33 per share) for the quarter ended Sept.
30, 1996. Higher sales, resulting from weather conditions and customer growth, compared to the same
period in 1995, contributed to the performance. Additionally, a non-recurring gain on the sale of an
investment contributed approximately $2.3 million ($0.04 per share), net of income tax.
EE net income applicable to common stock for the period Feb. 12, 1996 to Sept. 30, 1996 was
approximately $26.5 million ($.44 per share). These results reflect the operations of EE since its
emergence from bankruptcy on Feb. 12, 1996, and the application of "fresh-start" reporting. As a result,
the results reported are not comparable to EE's financial information reported prior to its reorganization.
For the third quarter, retail kilowatt hour sales were up 2.4 percent over the comparable period last year
while wholesale kWh sales were down 0.9 percent compared to that same period. For the nine month
period ended Sept. 30, 1996, retail sales were up 4.2 percent and wholesale sales were up 2.5 percent
compared to the same period in 1995.
EE continues to use a portion of its available cash flow to reduce fixed obligations by making open
market purchases of first mortgage bonds. For the third quarter, EE repurchased $55.7 million of first
mortgage bonds, while repurchases for the year to date totaled $103.6 million, as follows:
June $ 9.0
July 16.8
August 35.7
September 3.2
Since September 30th 38.9
-------
Total $ 103.6
On Oct. 10, 1996, the board of directors declared a dividend of $8.4275 per share on EE's 11.40
percent Series A Preferred Stock to be paid on Nov. 1, 1996, to shareholders of record as of Oct. 21,
1996. The dividend is payable in additional shares of Series A Preferred Stock, with fractional shares
payable in cash.
EE is an electric utility serving approximately 278,000 retail customers in El Paso, Texas and an area of
the Rio Grande Valley in West Texas and Southern New Mexico, as well as wholesale customers in
Southern California, New Mexico, Texas and Mexico.
Quarter Ended September 30, 1996 (In thousands):
------------------------------------------------
Increase
1996 1995 (Decrease)
----------- ---------- -----------
Electric KWH Sales:
Retail Customers 1,633,280 1,594,984 2.4 %
Other Utilities 503,194 507,856 (0.9)%
---------- ----------
Total 2,136,474 2,102,840 1.6 %
Operating Revenues:
Retail Cutomers $ 134,523
Other Utilities 32,133
---------
Total $ 166,656
Capital Expenditures $ 8,671 $ 14,796
Cash Interest
Payments $ 21,833
Depreciation and
Amortization $ 22,584
Federal and State
Income Taxes $ 14,729
EBITDA(2) 84,717
Period From February 12, 1996 to September 30, 1996 (In thousands):
-------------------------------------------------------------------
Increase
1996 1995 (Decrease)
---------- ---------- -----------
Electric KWH Sales(1):
Retail Customers 4,316,711 4,143,587 4.2 %
Other Utilities 1,326,282 1,294,035 2.5 %
---------- ----------
Total 5,642,993 5,437,622 3.8 %
Operating Revenues:
Retail Cutomers $ 312,162
Other Utilities 68,789
---------
Total $ 380,951
Capital Expenditures $ 24,239 $ 56,372
Cash Interest
Payments $ 32,911
Depreciation and
Amortization $ 56,953
Federal and State
Income Taxes $ 22,363
EBITDA(2) $ 176,870
(1) Nine Months Ended September 30, 1996 and 1995.
(2) EBITDA should not be considered an alternative to net income
as an indicator of operating performance or an alternative to
cash flows as a measure of liquidity.
El Paso Electric Company's results of operations for the 49-day
period February 12, 1996 to March 31, 1996, three months ended June
30, 1996 and September 30, 1996 and the period February 12, 1996 to
September 30, 1996 are as follows (in thousands except share data):
Period From
February 12 to Three Months Ended
March 31, June 30, September 30,
1996 1996 1996
---------- ----------- -----------
Operating revenues $ 69,907 $ 144,388 $ 166,656
Operating expenses (55,159) (110,292) (122,293)
Other income, net 463 844 3,041(1)
Interest charges (13,522) (25,440) (24,634)
Net income 1,689 9,500 22,770
Preferred stock dividend
requirements 1,552 2,897 2,977
Net income applicable to
common stock 137 6,603 19,793
Net income per weighted
average share of
common stock $ 0.00 $ 0.11 $ 0.33
Weighted average number
of common shares
outstanding 59,999,981 59,999,981 59,999,981
Period From
February 12 to
September 30,
1996
------------
Operating revenues $ 380,951
Operating expenses (287,745)
Other income, net 4,348(1)
Interest charges (63,595)
Net income 33,959
Preferred stock dividend
requirements 7,426
Net income applicable to
common stock 26,533
Net income per weighted
average share of
common stock $ 0.44
Weighted average number
of common shares
outstanding 59,999,981
(1) Includes gain on sale of an investment of approximately
$2.3 million, net of income taxes.
CONTACT: El Paso Electric Company Media: Henry Quintana Jr., supervisor, Corporate
Communications, 915/543-5824 or Financial: Leslie Beal, supervisor, Investor Relations,
915/543-2213
Stratosphere announces third quarter results
LAS VEGAS, NV--Oct. 24, 1996--Stratosphere Corp. (NASDAQ: TOWV) today announced that for the
third quarter ended Sept. 29, 1996, the company posted a net loss of $26.0 million or $(0.45) per share
(58.4 million weighted average shares outstanding) on net revenues of $35.3 million.
Included in the third quarter results was $12.2 million or $0.21 per share toward amortization of
preopening expenses. Stratosphere Corp. will complete preopening expense amortization by the end of
October.
The Company also announced that it is very pleased with the initial results of its new marketing strategy
and the reconfiguration of its casino floor which was unveiled on Oct. 1, 1996. Management believes
that the new marketing strategy offers customers the best gaming product on the Las Vegas Strip. Gaming
revenue for the period Sept. 30, 1996 through Oct. 21, 1996 was $5.7 million, an increase of 68.5
percent over gaming revenue for the same number of days during the prior month. The Company
cautioned that the new marketing strategy has only been in place for three (3) weeks and accordingly, the
increased revenues may not be indicative of future operating results. Additionally the new marketing
strategy may result in increased expenses.
The Company also announced that it is continuing to seek additional financing and is discussing
restructuring of both its existing First Mortgage Note indebtedness and Capital Lease obligation. Based
upon its current and projected cash position, the Company does not currently plan to make its next
regularly scheduled interest payment on its First Mortgage Notes due on Nov. 15, 1996. The outcome of
any discussion in connection with restructuring the terms of its existing First Mortgage Note
indebtedness is uncertain. In addition, it is highly likely that negotiations with its creditors, whether
successful or not at arriving at a restructuring, will involve a bankruptcy filing as a means of formalizing
and approving either a consensual or nonconsensual restructuring. The Company is also discussing the
restructuring of its capital lease obligation and is evaluating its ability to make its Oct. 30, 1996
payment. The Company does not believe that a bankruptcy filing will, in the long term, adversely affect
daily operations or guest services.
Stratosphere Corp. is a casino/hotel/entertainment complex located at the north end of the Las Vegas
Strip. The complex is centered around the Stratosphere Tower, the tallest free-standing observation
tower in the United States.
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking
statements. Certain information included in this press release (as well as information included in oral
statements or other written statements made or to be made by the Company) contains statements that are
forward-looking, such as statements relating to plan for future expansion and other business
development activities as well as other capital spending, financing sources and the effects of regulation
(including gaming and tax regulation) and competition. Such forward-looking information involves
important risks and uncertainties that could significantly affect anticipated results in the future and,
accordingly, such results may differ from those expressed in any forward-looking statements made b y or
on behalf of the Company. These risks and uncertainties include, but are not limited to, those relating to
development and construction activities, dependence on existing management, leverage and debt service
(including sensitivity to fluctuations in the interest rates), domestic or global economic conditions,
activities of competitors and the presence of new or additional competition, fluctuations and changes in
customer preferences and attitudes, changes in federal or state tax laws of the administration of such
laws and changes in gaming laws or regulations (including the legalization of gaming in certain
jurisdictions). For more information, review the Company's filings with the Securities and Exchange
Commission, including the Company's annual report on Form 10-K and certain registration statements of
the Company.
Stratosphere Corp. and Subsidiaries
Condensed Consolidated Balance Sheets
Sept. 29, 1996 Dec. 31, 1995
(Unaudited)
Assets
Current Assets:
Cash and cash equivalents $38,371,796 $92,595,770
Cash and cash equivalents-restricted 20,099,258 --
Accounts receivable 9,823,078 5,417,030
Other current assets 6,522,419 1,125,548
Total Current Assets 74,816,551 99,138,348
Property and Equipment, Net 435,681,686 194,908,237
Other Assets:
Cash and cash equivalents-restricted -- 115,413,435
Securities available for sale 1,996,540 5,140,950
Debt issuance and deferred licensing
costs-net 12,946,152 13,507,699
Pre-opening costs-net 4,051,922 5,796,862
Total Other Assets 18,994,614 139,858,946
Total Assets $529,492,851 $433,905,531
Liabilities and Shareholders' Equity
Current Liabilities:
Accounts payable-trade $11,228,195 $338,745
Accounts payable-construction 26,643,611 33,523,612
Current installments of long-term debt
and capital lease 10,800,000 --
Accrued interest 11,342,145 3,645,657
Accrued payroll and related expenses 3,648,236 166,485
Affiliate payable 5,771,773 803,865
Other accrued expenses 5,881,799 137,403
Total Current Liabilities 75,315,759 38,615,767
Long-term Liabilities:
Long-term debt and capital lease-less
current installments 228,000,000 203,000,000
Note payable to affiliate 50,000,000 --
Total Long-Term Liabilities 278,000,000 203,000,000
Total Liabilities 353,315,759 241,615,767
Commitments and Contingencies
Shareholders' Equity:
Preferred stock, $.01 par value;
authorized 10,000,000 shares authorized;
no shares issued and outstanding
Common stock $0.01 par value; authorized
100,000,000 shares; issued and
outstanding 58,393,105 and 56,361,117
at Sept. 29, 1996 and Dec. 31, 1995,
respectively 583,931 563,611
Additional paid-in-capital 218,779,007 199,697,889
Accumulated deficit (43,185,846)
(7,971,736)
Total Shareholders' Equity 176,177,092 192,289,764
Total Liabilities and Shareholders' Equity $529,492,851 $433,905,531
Stratosphere Corp. and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)
Three Months Ended Sept. 29, 1996 1995 1996
Revenues:
Casino $ 14,259,954 $ --
Hotel 7,031,268 --
Food and beverage 9,815,438 --
Tower, retail and other income 9,115,553 23,715
Gross Revenues 40,222,213 23,715
Less: Promotional allowances 4,903,269 --
Net Revenues 35,318,944 23,715
Costs and Expenses:
Casino 7,512,100 --
Hotel 2,627,149 --
Food and beverage 8,970,014 --
Other operating expenses 3,994,785 --
Depreciation and amortization 3,230,179 530,673
Pre-opening costs amortization 12,234,201 --
Selling, general and administrative 16,284,130 221,319
Total Costs and Expenses 54,852,558 751,992
Loss From Operations (19,533,614) (728,277)
Other income (expense):
Interest income 363,176 1,875,857
Interest expense (6,855,271) (3,429,831)
Total Other Expense, net (6,492,095) (1,553,974)
Net Loss $(26,025,709) $ (2,282,251)
Loss per Common Share $ (0.45) $ (0.06)
Weighted Average Common Shares
Outstanding 58,393,105 39,398,777
-0-
Nine Months Ended Sept. 29, 1996 1995 1996
Revenues:
Casino $ 26,569,994 $ --
Hotel 12,036,486 --
Food and beverage 17,050,798 --
Tower, retail and other income 16,345,496 45,371
Gross Revenues 72,002,774 45,371
Less: Promotional allowances 6,786,251 --
Net Revenues 65,216,523 45,371
Costs and Expenses:
Casino 13,504,136 --
Hotel 4,747,348 --
Food and beverage 14,474,982 --
Other operating expenses 6,342,519 --
Depreciation and amortization 5,719,196 1,186,984
Pre-opening costs amortization 19,886,459 --
Selling, general and administrative 28,098,738 550,069
Total Costs and Expenses 92,773,378 1,737,053
Loss From Operations (27,556,855) (1,691,682)
Other income (expense):
Interest income 3,665,175 4,779,559
Interest expense (11,322,430) (8,700,050)
Loss on sale of assets -- (166,815)
Total Other Expense, net (7,657,255) (4,087,306)
Net Loss $(35,214,110) $ (5,778,988)
Loss per Common Share $ (0.61) $ (0.17)
Weighted Average Common Shares
Outstanding 58,047,766 34,797,939
-0-
Three Months Nine Months
Consolidated ended % of ended %
of
Financial Statistics Sept. 29, 1996 Revenue Sept. 29, 1996
Revenue
Net Revenues $ 35,318,944 $ 65,216,253
Consolidated Loss
Before Interest,
Taxes, Depreciation
and Amortization (4,069,234) (11.5%) (1,951,200)
(3.0%)
Depreciation and
amortization (3,230,179) (9.1%) (5,719,196)
(8.8%)
Pre-opening cost
amortization (12,234,201) (34.6%) (19,886,459)
(30.5%)
Operating loss (19,533,614) (55.3%) (27,556,855)
(42.3%)
Net interest expense (6,492,095) (18.4%) (7,657,255)
(11.7%)
Net Loss $ (26,025,709) (73.7%) $ (35,214,110)
(54.0%)
Quality of Earnings Analysis
Loss per share from
Operations $ (0.24) $ (0.27)
Amortizaton of
pre-opening cost (0.21) (0.34)
Loss per share $ (0.45) $ (0.61)
CONTACT: Stratosphere, Las Vegas Tom Lettero, 702/383-5207