Presidio Reports Third Quarter 1996 Results
DENVER, CO--Nov. 1, 1996--Presidio Oil Company (PRS/A) today reported that its oil and gas revenues for
the third quarter ended September 30, 1996 were $9.1 million, as compared to $6.8 million for the similar 1995
period, resulting in a net loss of $6.6 million ($0.23 per Class A and Class B share) compared to a net loss of
$8.5 million ($0.31 per Class A and Class B share) for the 1995 third quarter.
Oil production for the 1996 third quarter was 182,000 barrels compared to 207,000 barrels in the similar 1995
period. Gas production for the 1996 third quarter was 3.1 billion cubic feet compared to 3.4 billion cubic feet in
the 1995 third quarter. The majority of such decrease in oil and gas production resulted from lower production
rates in several significant fields. Oil prices received by the Company in the 1996 third quarter averaged $19.98
per barrel compared to $14.57 per barrel received in the 1995 third quarter. Gas prices received by the Company
in the third quarter of 1996 as compared to the third quarter of 1995 averaged $1.76 and $1.09 per thousand
cubic feet, respectively.
On August 5, 1996, Presidio signed a definitive agreement to be acquired by Tom Brown, Inc. for $183 million
(consisting of approximately $101 million of cash and 5 million shares of Tom Brown Common Stock), plus the
assumption of certain liabilities. In as much as such consideration was not sufficient to pay the full amount of all
of Presidio's indebtedness, Presidio expects the transaction to be consummated through a Chapter 11 bankruptcy
proceeding which was filed on August 5, 1996. The transaction is currently anticipated to close in the fourth
quarter of 1996.
Presidio is an independent oil and gas company engaged in onshore oil and gas exploration, development and
production in the continental United States.
PRESIDIO OIL COMPANY AND SUBSIDIARIES
Unaudited Consolidated Statements of Operations
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ ------------------
1996 1995 1996 1995
-------- -------- -------- --------
(in thousands, except per share amounts)
Oil and gas revenues $ 9,082 $ 6,771 $ 26,761 $ 23,708
Less - direct costs:
Lease operating 2,404 2,663 7,012 8,775
Production taxes 502 366 1,491 1,346
Depletion, depreciation
and amortization 3,108 3,407 9,390 11,138
-------- -------- -------- --------
3,068 335 8,868 2,449
General and
administrative expense (954) (1,076) (3,074) (4,844)
Interest expense (8,755) (7,417) (24,768) (21,839)
Other 15 (318) 1,183 65
-------- -------- -------- --------
Net loss $ (6,626) $ (8,476) $(17,791) $(24,169)
Loss per share:
Class A Common Stock $ (.23) $ (.31) $ (.62) $ (.89)
Class B Common Stock $ (.23) $ (.31) $ (.62) $ (.89)
Weighted average common
shares outstanding 28,535 28,535 28,535 28,535
Less: Weighted average
unallocated shares
held by the Company's
Employee Stock
Ownership Plan - 1,217 - 1,277
-------- -------- -------- --------
28,535 27,318 28,535 27,258
CONTACT: Presidio Oil Co., Denver Investor Relations, 212/593-2244
Merrimac Reports Restructuring and Loss; Announces Stock Repurchase Program
WEST CALDWELL, N.J., Nov. 1, 1996 - Merrimac Industries, Inc. (AMEX: MRM) notes that for the nine
months ended September 28, 1996, which was a period comprised of 39 weeks, sales were $10,111,000, a
decline of $773,000 or 7.1%, from the sales for the comparable nine months of 1995, which was comprised of 40
weeks, with sales of $10,884,000. An accounting change in the quarterly composition from 16 weeks in 1995 to
13 weeks in 1996 exacerbated comparison between the third quarters of 1996 and 1995 and contributed to most
of the reported decline in revenue from $4,355,000 to $2,998,000. Same-week sales for the 16 weeks ended
October 5, 1996, were $4,175,000, a decline of 4.1% when compared to the prior year.
The restructuring of engineering responsibilities and its attendant re- focus of product lines impacted the
valuation of inventories. A review of inventories, certain intangibles arising from acquired product designs, a
non- compete agreement, and deferred compensation for a retiring senior officer resulted in aggregate charges of
$1,822,000, and charges net of tax benefits of $1,093,000 or $.70 per share, to operations in the third quarter of
1996. The restructuring charge combined with non-recurring administrative costs of $400,000 for the third
quarter and $800,000 for the first nine months of 1996 for marketing studies, extensive employee (TQM) training,
ISO-9001 Certification and the start-up of the new Costa Rican manufacturing facility impacted operating results
negatively, but will enable the Company to adapt to new growth strategies for the future.
Net loss after the restructuring charge and the credit for income taxes was $1,139,000 or $.73 per share for the
third quarter and $574,000 or $.36 per share for the first nine months of 1996. Net income and per share amounts
were $469,000 and $.26 and $1,199,000 and $.68 for the third quarter and first nine months of 1995,
respectively.
Backlog has firmed at $6.8 million, up 20% over year-end 1995. The bulk of the numerous small and
developmental orders which had choked production capacity have been processed during this quarter. The
Company's new market- driven philosophy of judiciously accepting development orders which have a high
probability of follow-up production work is expected to increase the return on its engineering resources in 1997.
Efforts to expedite deliveries and increase production work-flow are underway.
As part of a new open-market stock repurchase program, the Company has been authorized to purchase up to
100,000 shares, from time-to-time depending on market conditions, in contemplation of establishing a stock bonus
plan. The Company is also formulating a plan involving treasury shares to be reserved in connection with an
employee performance option program for wide distribution to middle management and plant employees
throughout Merrimac. The options will be exercisable only if the Company achieves specific sales and/or
profitability targets.
Merrimac Industries, Inc. located in West Caldwell, N.J. employs 130 in the design and manufacture of
high-performance components for communications, defense and aerospace markets. Merrimac (MRM) is listed
on the American Stock Exchange.
MERRIMAC INDUSTRIES, INC.
Summary of Consolidated Statements of Income
(Unaudited)
Quarter Ended
Sept. 28, Oct. 07,
1996 1995
13 Weeks 16 Weeks
Net sales $2,998,000
$4,355,000
Income (loss) before income taxes (A) (1,843,000)
724,000
Provision (credit) for income taxes (A) (704,000)
255,000
Net income (loss) (A) (1,139,000)
469,000
Net income (loss) per common share (A) $(.73)
$.26
Weighted average common
shares outstanding 1,565,000 1,770,000
Nine Months
Sept. 28, Oct. 07,
1996 1995
39 Weeks 40 Weeks
Net sales $10,111,000
$10,884,000
Income (loss) before income taxes (A) (984,000)
1,870,000
Provision (credit) for income taxes (A) (410,000)
671,000
Net income (loss) (A) (574,000)
1,199,000
Net income (loss) per common share (A) $(.36)
$.68
Weighted average common
shares outstanding 1,595,000 1,765,000
(A) Includes the effects of a restructuring charge of $1,822,000
($1,093,000 net of related tax benefits or $.70 per share) in 1996.
SOURCE Merrimac Industries, Inc./CONTACT: Eugene W. Niemiec, President and CEO of Merrimac
Industries, 201-575-1300/
Checkers Announces Filing Of Third Quarter 10-Q
CLEARWATER, Fla., Nov. 1, 1996 - Checkers Drive-In Restaurants, Inc. (Nasdaq: CHKR) today announced
that it has filed its quarterly Form 1O-Q with the Securities and Exchange Commission detailing its financial
results for the third fiscal quarter ended September 9, 1996. Checkers reported that its loss for the third quarter
and year-to-date increased by approximately $500,000 due to an increase in the loss provision for obsolete
inventory. Accordingly, the loss for the third fiscal quarter was $24.2 million or $.47 per share and $26.0 million
or $.50 per share for the year- to-date.
On September 17, 1996, Checkers announced that it had reached an agreement in principle on debt restructuring
with a group of capital management funds. That agreement relaxed financial covenants and delayed and reduced
future principal payments. Due in large part to the charges and loss provisions taken by Checkers during the third
quarter, the September 17 agreement in principle contains financial covenants that the Company is currently
unable to meet. Checkers has attempted to renegotiate these financial covenants and obtain definitive
documentation from the investor group, but has been unsuccessful to date in this effort. The investor group
recently informed the Company that they are considering selling the Company's debt to other third parties, which
include companies with affiliates in the restaurant business, and management believes that this potential sale has
caused the investor group to delay finalizing a restructuring of the debt. The investor group has granted an
extension of their default waivers under the existing agreement through November 8, 1996. Although management
intends to continue to seek a restructuring of the Company's debt with the investor group and/or any subsequent
purchaser of the debt, as well as financing from other third parties, there can be no assurance that a restructuring
basically on the terms set forth in the agreement in principle (with appropriate modification to the financial
covenants), or on other terms acceptable to the Company, will be consummated, or that the Company will be able
to obtain any other financing source. The Company does not currently have the ability to cure the payment defaults
or financial covenant defaults that have occurred or been waived to date. In commenting on the current status of
the debt, Mr. Albert J. DiMarco, the Company's President and Chief Executive Officer, stated that "we are
working very closely with the investor group to address all of these issues."
In January of this year Checkers announced that it had engaged an investment banking firm to identify and evaluate
alternative financial opportunities without effecting a change of control of the Company. In commenting on the
progress of that process, Mr. DiMarco stated that "the Company is currently in active discussions with several
third parties concerning a variety of potential strategic transactions. Our focus is on a transaction that would
provide the Company with additional liquidity and an opportunity for future growth to maximize shareholder
value."
Checkers Drive-In Restaurants, Inc., celebrating its 10th anniversary this year, is one of the largest double
drive-thru restaurant chains in the United States. Checkers develops, owns, operates and franchises restaurants
that offer high-quality food, fast service and everyday value prices. Checkers is headquartered in Clearwater,
Florida and is traded on the Nasdaq Stock Market under the symbol "CHKR".
SOURCE Checkers Drive-In Restaurants, Inc. /CONTACT: James T. Holder, Vice President And Chief
Financial Officer, Checkers Drive-In Restaurants, 813-441-3500/
Sanmina Completes Acquisition of Key Assets of Comptronix
SAN JOSE, Calif., Nov. 1, 1996 - Sanmina Corporation (Nasdaq: SANM), a leading electronics manufacturer,
today announced that the company completed its acquisition of certain assets of Comptronix Corporation, a
contract manufacturing company based in Guntersville, Alabama. The assets include Comptronix's plant and
equipment located in Guntersville, its Guaymas, Mexico operations, customer contracts, inventories and accounts
receivable. On October 22, 1996 the United States Bankruptcy Court for the Middle District of Tennessee
approved the sale of these assets to Sanmina. The final purchase price was $17.6 million.
Commenting on the acquisition, Jure Sola, Sanmina's chairman and chief executive officer, said, "We are very
excited about this acquisition and welcome our new employees to the Sanmina team. As demand for our
sophisticated capabilities has increased, Sanmina has expanded geographically both in key fast growing regions
in the United States and now internationally with this latest acquisition in Mexico and the new facility we are
building in Ireland. Our service and capabilities expansion reflects our commitment of growing with our
customers and providing them with high quality service on a quick-turn, cost effective basis."
Company Profile Sanmina Corporation is a leading electronics manufacturer providing a full spectrum of
integrated electronic manufacturing services. Services include the manufacture of complex printed circuit board
assemblies using surface mount (SMT) and pin-through hole (PTH) interconnection technologies, the manufacture
of custom- designed backplane assemblies and subassemblies, the manufacture of complex, multi-layered printed
circuit boards, the manufacture of custom cable and wire harness assemblies, and the testing and the assembly of
electronic sub-systems and systems. The company provides these services to a diversified base of leading OEMs
in the telecommunications, data communications (networking), industrial and medical instrumentation and
computer sectors of the electronics industry. Sanmina common stock trades on the Nasdaq National Market under
the symbol: SANM.
The foregoing contains certain forward-looking statements. The company's actual results of operations may differ
significantly from those contemplated by such forward-looking statements as a result of various factors, including
economic conditions in the electronics industry, particularly in the principal industry sectors served by the
company, changes in customer requirements and in the volume of sales to principal customers, competition and
technological change.
For more information on Sanmina Corporation via fax at no cost, dial 800- PRO-INFO, ticker symbol SANM.
SOURCE Sanmina Corp. /CONTACT: Randy Furr, President and COO of Sanmina Corporation, 408-435-8444;
or general information, Hannah Bruce, or analysts, Susan Caulton Dooley, of FRB San Francisco, 415-986-1591,
for Sanmina/
Health Management, Inc. Reports Short-Term Reinstatement of $1 Million Of its Senior Credit Facility
BUFFALO GROVE, Ill., Nov. 1, 1996 - Health Management, Inc. ("HMI") (Nasdaq-NNM: HMIS) today
announced the reinstatement of $1,000,000 of the total Senior Credit Facility commitment by its lenders. This
credit facility had previously been frozen at amounts outstanding on April 30, 1996 after the Company first
reported events of default under the credit agreement. The Company and the Lenders had originally entered into a
Forbearance Agreement in July 1996, and the Forbearance Agreement continues to have an expiration date of
November 15, 1996. In addition, under the terms of the agreement relating to the new $1 million loan, the Lenders
had requested that the Company grant them a warrant to purchase five percent (5%) of the common stock of the
Company on terms and conditions that are still being negotiated.
HMI President and CEO, Wm. James Nicol stated, "As I reported in my covering letter to the annual report and
proxy statement, I continue to be impressed with the Company's operating resiliency and the dedication of its
people. As has been clear from our published financial statements, however, the Company continues to operate
under significant cash flow constraints. The recent Bankruptcy filing by the Company's primary product
wholesaler, Foxmeyer, has put significant additional strain on our cash flow. We are aggressively pursuing our
strategic and financial alternatives which include interim and long-term financing of the Company, a possible sale
or merger of the Company or a possible Chapter 11 bankruptcy filing, any of which could be highly dilutive to
existing shareholders."
Health Management, Inc. is a national provider of integrated pharmacy management services to patients with
chronic medical conditions and to health care professionals, drug manufacturers and third-party payers involved
in their care.
SOURCE Health Management, Inc. /CONTACT: Jim Nicol, President & CEO, 847-913-2404, or Paul Jurewicz,
CFO, 847-913-2407, both of Health Management, Inc.; or Investors, Diane Perry, 212-704-8293, Joe Kist,
212-704-8239, or Media, Mark Danes, 212-704- 4464, all of Edelman Financial/
Canisco Resources, Inc. Releases Second Quarter Results
WILMINGTON, Del., Nov. 1, 1996 - Canisco Resources, Inc. (Nasdaq: CANR) announced today the results of
the second quarter ended September 30, 1996.
CANISCO RESOURCES, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
Three Months Ended Six Months Ended
9-30-96 9-30-95 9-30-96 9-30-95
Revenues $14,505,968 $23,154,693 $26,768,832 $45,998,166
Income from continuing
operations 433,065 455,592 564,751 677,898
Net earnings (loss) 403,837 (166,671) 522,170
(64,783)
Earnings (loss) per share 0.19 (0.08) 0.24
(0.03)
The Company reported net earnings of $403,837 or $.19 per share for the three-month period, compared to a loss
of $166,671 or $(.08) per share for the same three months last year. Revenues for the period decreased to
$14,506,000 compared to $23,155,000 in the prior year due primarily to the sale of the staff augmentation
business of the NSS Numanco subsidiary.
Ralph A. Trallo, President and Chief Executive Officer, stated, "Now that bankruptcy is behind us, management
is able to focus on operations and achieving results for our shareholders. Our reorganized Company, through the
operating subsidiaries, continues to be formidable in the marketplace."
Canisco Resources, Inc. provides versatile services supporting operations and facility maintenance for the power
generation, pulp & paper and petro- chemical markets as well as general industry.
SOURCE Canisco Resources, Inc./CONTACT: Lauralee A. Snyder, Investor Relations of Canisco Resources,
302-777-5050/(CANR)