Gantos, Inc. Reports Third Quarter 1996 Results
GRAND RAPIDS, Mich., Nov. 19, 1996 - Gantos, Inc. (Nasdaq: GTOS) today
reported a net loss for the third quarter ended November 2, 1996 of $275,000, or
$0.04 per share, compared to net income of $127,000, or $0.02 per share, for the
same period a year ago.
Net income for the nine months ended November 2, 1996 was $682,000, or $0.09 per
share, compared to net income of $577,000 or $0.09 per share, for the same period a
year ago.
Commenting on the results, Gantos President and Chief Executive Officer Arlene
Stern said, "We are pleased that we were able to hold down expenses to help offset
the reduced gross margin. While our results for the quarter were off from last year,
our year-to-date results are running slightly ahead. Looking forward, we have
strengthened our inventories and believe we are positioned well for the all-important
Christmas season."
Gantos, Inc. is a specialty retailer of quality women's wear and accessories. The
Company currently operates 114 stores in 23 states.
GANTOS, INC.
CONDENSED BALANCE SHEETS
(Amounts in thousands)
Unaudited
Nov 2, Oct 28,
ASSETS 1996 1995
Current assets:
Cash and cash equivalents $982 $1,790
Accounts receivable (net) 21,361 22,975
Merchandise inventories 32,454 31,350
Prepaid expenses and other 2,727 2,760
Total current assets 57,524 58,875
Property and equipment (net) 15,655 18,458
Total assets $73,179 $77,333
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable-trade $17,820 $17,987
Accrued expenses and other 10,012 11,201
Current provision for facilities closings 2,407 3,810
Total current liabilities 30,239 32,998
Long-term debt 13,326 18,540
Liabilities subject to compromise -- 400
Shareholders' equity 29,614 25,395
Total liabilities and shareholders' equity $73,179 $77,333
GANTOS, INC.
CONDENSED STATEMENTS OF INCOME (LOSS)
(Amounts in thousands, except per share and store data)
Unaudited
Third Quarter Ended Year to
Date Ended
Nov. 2, Oct. 28, Nov. 2,
Oct. 28,
1996 1995 1996 1995
Net sales $41,716 $42,068 $133,890
$136,733
Cost of sales (including buying,
distribution and occupancy
costs) (33,502) (33,448) ($107,243)
($108,820)
Gross income 8,214 8,620 26,647
27,913
Selling, general and administrative
expense (9,003) (9,037) ($27,557)
($29,014)
Finance change and other revenue 1,093 1,037 $3,324
$3,178
Operating income 304 620 2,414
2,077
Interest expense (579) (493) ($1,732)
($1,221)
Income (Loss) before reorganization
items and income taxes (275) 127 682
856
Reorganization items:
Professional fees
--- --- --- ($530)
Interest earned on accumulating
cash from Chapter 11 proceedings
--- --- --- $251
Net Reorganization items
--- --- --- (279)
Income (Loss) before income taxes (275) 127 682
577
Income taxes
--- --- --- ---
Net income (loss) ($275) $127 $682
$577
Per share amounts:
Net income (loss) per share ($0.04) $0.02 $0.09
$0.09
Weighted average shares
outstanding 7,572 7,600 7,576
6,504
Stores open at end of period 114 113 114
113
SOURCE Gantos, Inc./CONTACT: Rick Bunka of Gantos, 616-942-9295/
Pudgie's Chicken Announces 1996 Third Quarter Results
UNIONDALE, N.Y., Nov. 19, 1996 - Pudgie's Chicken, Inc. (Nasdaq: PUDGQ), an
operator of quick service, takeout-and-delivery Pudgie's restaurants, announced
today a loss for the third quarter and nine months ended September 30, 1996.
The Company, which filed a petition for reorganization under Chapter 11 of the
Bankruptcy Code on September 18, 1996, incurred a net loss for the third quarter
ended September 30, 1996 of $4,367,904, or $0.98 per share, as compared to a net
loss of $669,660 or $0.20 per share for the comparable quarter last year. The
increase was primarily attributable to an accrual for an arbitration award of
approximately $1.7 million and approximately $1.2 million expensed in conjunction
with the closing of 10 Company- owned restaurants during the period.
Total revenues for the 1996 third quarter were $3,223,448 as compared to
$3,194,451 for the same period last year. There was a net decrease in the number of
Company-owned restaurants from 26 at September 30, 1995 to 20 at September 30,
1996. The number of franchised restaurants decreased from 37 at September 30,
1995 to 31 at September 30, 1996.
Revenues for the first nine months of 1996 reached $9,188,524 versus $8,247,026 for
the comparable period last year. Revenue from sales at Company-owned restaurants
for the nine month period increased to $8,133,105 from $6,833,605.
Pudgie's Chicken operates and franchises quick service Pudgie's Famous Chicken
restaurants with an emphasis on Home Delivery that offer tasty, reasonably priced
meals featuring fresh skinless fried chicken. Pudgie's also offers barbecued ribs,
shrimp, corn on the cob, mashed potatoes, rice, salads and other side dishes.
You can also contact Pudgie's on their Web Site HTTP://ISON.COM/PUDGIES/
PUDGIE'S CHICKEN, INC., AND SUBSIDIARIES
(Debtors-In-Possession)
Consolidated Statements of Operations
Three Months Ended Nine Months Ended
September 30, September 30,
(unaudited) (unaudited)
1996 1995 1996 1995
Revenue
Restaurant sales $2,949,955 $2,567,480 $8,133,105
$6,833,605
Franchise & advertising
royalties 245,275 371,466 729,072
1,057,538
Franchise fees -- 220,000 255,000
280,000
Interest income &
other revenue 28,218 35,505 71,347
75,983
Total 3,223,448 3,194,451 9,188,524
8,247,026
Costs and Expenses
Restaurant cost of sales 1,202,018 1,026,479 3,191,067
2,693,831
Restaurant operating
expenses 1,611,089 1,305,446 4,444,703
3,516,488
Franchising costs 28,063 56,051 89,216
100,040
General & administrative 1,255,399 873,820 3,233,469
2,510,532
Arbitration award 1,707,404 -- 1,707,404
--
Restaurant closing
expenses 347,010 -- 347,010
--
Research & development
-- -- -- 20,000
Advertising expenses 227,345 192,514 674,997
938,241
Depreciation &
amortization 230,169 212,214 714,848
661,241
Interest expense 108,846 197,607 320,543
660,071
Total 6,717,323 3,864,131 14,723,257
11,098,624
Loss before reorganization
items ($3,493,875) ($669,680) ($5,534,733)
($2,851,598)
Reorganization items
Loss on closing of
restaurants 831,029 -- 831,029
--
Professional fees 43,000 -- 43,000
--
Net loss ($4,367,904) ($669,680) ($6,408,762)
($2,851,598)
Net loss per common share ($0.98) ($0.20) ($1.43) ($1.21)
Shares used
in computation 4,475,421 3,369,799 4,484,866
2,353,609
SOURCE Pudgie's Chicken, Inc./CONTACT: Steven Wasserman, president & CEO
of Pudgie's Chicken, 516-222-8833; or Joe Calabrese or Kerry Thalheim of the
Financial Relations Board, 212-661-8030/
The Italian Oven Announces Third Quarter Results
LATROBE, Pa., Nov. 19, 1996 - The Italian Oven, Inc. (Nasdaq: OVENQ) today
reported a net loss of $2.9 million or $0.68 per share, on total revenue of $6.0
million (including restaurant sales of $5.5 million and franchise and royalty fees of
$569,000) for the third quarter ended September 30, 1996. In last year's third quarter,
the Company had a net loss of $525,000, or $O.28 per share. Of this net loss for the
third quarter of 1996, $1.5 million is attributable to provisions for losses and
non-recurring charges.
The Italian Oven, Inc. operates and franchises Italian-theme, casual dining
restaurants.
Since October 21, 1996, the Company has operated under the protection from
creditors afforded by Chapter 11 of the United States Bankruptcy Code.
SOURCE The Italian Oven, Inc. /CONTACT: J. Garvin Warden of the Italian Oven,
412-537-5380/
Court Order Authorizes Joint Venture of Select Media Communications and KONA
Technology
NEW YORK, NY - Nov. 19, 1996 - On November 1, 1996, the United States
Bankruptcy Court for the Southern District of New York authorized Select Media
Communications, Inc. (SMTV) to enter into a joint venture agreement with KONA
Technologies Inc. The approval of the joint venture agreement enables SMTV to
promptly file a plan of reorganization and emerge from its Chapter 11 bankruptcy
case.
Pursuant to the joint venture agreement, SMTV, a producer of television vignettes,
info-minutes and info-mercial, and KONA technologies, a premier action graphics
image processing company, have joined forces to form "ProMotion Sports and
Entertainment" (PMS&E). The new company can take still advertising images and
enhance them with animation-like motion that creates an entirely new look and feel
for products and clients.
This innovative production tool can revolutionize the advertising, marketing and
promotion industries. KONA's computer image processing techniques use optical,
photographic computer and printing technologies. These techniques create a variety
of 3-D and animation graphics that can be viewed as active advertising versus static
via electronic and hard copy media.
The new technology has virtually endless applications. Potential new uses include
client's logos, signage, dasherboards, billboards, merchandising and outdoor
advertising. In addition, PMS&E plans to soon enter into negotiations with the NBA,
NFL, NHL and MLB to acquire licensing rights to insert KONA's motion technology
into T-shirts, posters, billboards, cups, jerseys, playing cards and other merchandise.
SMTV's management believes that consumers will be intrigued to gaze at the image
of an all-star basketball player on a T- shirt and suddenly see the figure slam dunking
a ball. The technology will also be available to sports franchise arenas and stadiums
for outdoor advertising and free standing billboards.
The number of industries that can benefit from this 3D motion technology extends far
beyond the sports fields. The movie industry can introduce the animation to all
in-theater and home video store billboards, posters and life-size cutouts. The
packaged goods business can use it on all end-aisle displays and point of purchase
advertising. Automobile dealers can recreate a car door opening revealing the
interior of the car. Using the morphing process, theme parks can turn a picture of a
youngster's favorite character into a child's portrait. Recording artists can appear to
be live on album or CD covers.
Mitch Gutkowski, President and Chief Executive Officer of Select Media, said: "I'm
extremely excited about the unlimited potential for success of this new endeavor.
With KONA's capabilities we can once again offer clients creative alternative ways
of reaching their target audience that will increase their awareness and also have an
immediate public impact."
Leonard Flory, President and CEO of KONA, said: "KONA has focused a lot of
effort on research and software development, and is excited about the prospect of
exploiting these markets."
Gutkowski said he expected PMS&E to be fully operational shortly after the new
year.
SOURCE Select Media Communications Inc. /CONTACT: Mitch Gutkowski, or
Vicki Gonzales of Select Media, 212-765-1020/
LBMS announces second quarter results; Significant progress made in implementing
new business strategy
HOUSTON, TX--Nov. 19, 1996--Learmonth & Burchett Management Systems PLC
(NASDAQ: LBMSY) ("LBMS") today reported second-quarter financial results,
including a return to operating profitability, and announced significant progress in the
implementation of its new business strategy aimed at strengthening its position as the
market-leading process management tools vendor.
For the three months ended Oct. 31 1996, the company reported revenues of $4.9
million. Net income was $204,000, or $0.02 per American Depositary Share
("ADS") ($0.01 per ordinary share), before the effect of the $17.6 million
restructuring charge announced in August 1996. As a result of the restructuring
charge, the company reported a net loss of $17.4 million, or $1.36 per ADS ($0.68
per ordinary share), for the second quarter.
The company's revenue and operating expenses, excluding the restructuring charge,
for the three months ended Oct. 31, 1996 are based solely on operations in North
America. License revenue during the quarter was principally derived from the
Process Engineer product line.
Michael Bennett, CEO, stated, "The second quarter, my first with the company, was
pivotal. We embarked on an aggressive new business strategy aimed at returning
LBMS to profitability by focusing on our leadership position in the process
management market and substantially reducing operating costs, primarily outside the
U.S."
Significant events during the quarter included the addition of new strategic
customers, such as GE Capital, TRW and Inacom, the announcement of the
PE/Route2 line of products targeting project team solution sales of process
management, significant additions to the Process Engineer best practices library in
the areas of Year 2000 Conversion, Object Oriented Development and Data
Warehousing, and development partnerships with Hewlett Packard, Computer
Horizons Corporation, Knowledge Based Systems Inc., and Zyga Corp.
"We have substantially completed the implementation of our new business strategy,
increased our investment in product development and marketing for the Process
Engineer product line and significantly reduced our on-going operating expenses,"
said Bennett. "The accomplishments of the company during the second quarter were
substantial and the initial results are promising. We are clearly pleased with the
progress made by the company and the results demonstrate the renewed efforts of our
staff and the support and confidence of our customer base, including significant new
customers who made strategic commitments to LBMS during the quarter.
Except for any historical information contained herein, the matters discussed in this
news release are forward looking statements that involve risks and uncertainties,
including the timely development, release and acceptance of new products and
alliances, the impact of competitive products and pricing, and the other risks detailed
from time to time in the company's U.S. Securities and Exchange Commission filings.
The company continues to be susceptible to potentially significant variations in
quarterly and annual revenue and operating results.
Based in Houston, Texas, LBMS, Inc. is the leading provider of Process Management
products to Fortune 1000 companies. LBMS's integrated line of Process Management
products provide organizations with a library of "best practices" for all areas of
applications development and a comprehensive set of tools for process definition,
deployment, execution and improvement. LBMS has an installed base of more than
21,000 users worldwide in areas such as financial services, technology,
manufacturing, retailing, oil, government and utilities. LBMS company and product
information can be found on the World Wide Web at http://www.lbms.com
Unaudited financial highlights in U.S. dollars, under accounting principles generally
accepted in the United States (the basis upon which the above financial information
was derived), are included at Exhibit 1. Unaudited financial highlights in pounds
sterling, under principles generally accepted in the United Kingdom, are included at
Exhibit II.
LEARMONTH & BURCHETT MANAGEMENT SYSTEMS PLC
Consolidated Statement of Operations
(In thousands, except per share information)
(unaudited)
Three months ended Six months ended
October 31, October 31,
1996 1995 1996 1995
Revenue:
Product licenses $2,757 $6,464 $4,761 $11,840
Services 2,095 4,458 5,345 8,858
Total revenue 4,852 10,922 10,106 20,698
Cost of revenue:
Product licenses 11 232 69 474
Services 921 1,673 2,537 3,342
Total cost of revenue 932 1,905 2,606 3,816
Gross margin 3,920 9,017 7,500 16,882
Operating expenses:
Sales and marketing 2,217 5,005 6,739 9,219
Research and development 1,016 1,887 3,159 3,789
General and administrative 578 1,368 1,886 2,599
Merger costs - 468 - 468
Restructuring charge 17,621 - 17,621 -
Total operating expenses 21,432 8,728 29,405 16,075
Operating income (loss) (17,512) 289 (21,905) 807
Interest income 119 14 242 46
Interest expense (35) (14) (69) (32)
Other income and (expense) 11 - 15 -
Income (loss) from
continuing operations
before income taxes (17,417) 289 (21,717) 821
Income tax benefit (expense) - (85) - (158)
Net income (loss) ($17,417) $204($21,717) $663
Income (loss) per Ordinary
Share: ($0.68) $0.01 ($0.85) $0.03
Income (loss) per ADS: (a) ($1.36) $0.02 ($1.70) $0.06
Weighted average Ordinary
and Ordinary Share
equivalents outstanding 25,539 23,004 25,537 23,004
(a) Adjusted to reflect the ratio of one ADS to two Ordinary
Shares.
LEARMONTH & BURCHETT MANAGEMENT SYSTEMS PLC
Consolidated Balance Sheet
(In thousands, except per share information)
October 31, April 30,
1996 1996
Assets (unaudited) (audited)
Current assets
Cash and cash equivalents $7,063 $10,960
Trade accounts receivable 3,957 9,579
Other current assets 1,394 3,498
Total current assets 12,414 24,037
Furniture, fixtures and equipment 1,504 2,982
Other assets 160
Total assets $13,918 $27,179
Liabilities and Shareholders' Equity
Current liabilities
Current maturities of indebtedness $691 $1,003
Accounts payable 1,240 1,630
Deferred revenue 3,459 3,691
Accrued liabilities 7,482 5,344
Executive Stock Option Trust indebtedness 976 903
Total current liabilities 13,848 12,571
Indebtedness 518 524
Other liabilities 10,055 2,149
Total liabilities 24,421 15,244
Shareholders' equity:
Ordinary shares, 10 pence par value 4,255 4,253
Additional paid-in capital 20,282 20,323
Adjustment for ESOT (976) (903)
Cumulative translation adjustment (170) 439
Accumulated deficit (33,894) (12,177)
Total shareholders' equity (10,503) 11,935
Commitments and contingencies -- --
Total liabilities and shareholders'
equity $13,918 $27,179
LEARMONTH & BURCHETT MANAGEMENT SYSTEMS PLC
GROUP PROFIT OR LOSS ACCOUNT
(In thousands (Sterling), except per share amounts)
Three months ended Six months ended
October 31, October, 31
(unaudited) (unaudited)
1996 1995 1996 1995
Turnover 3,052 6,952 6,285 12,440
Operating (Deficit)/Profit
Continuing Operations 672 1,429 (957) 2,428
Restructuring charge (11,256) - (11,256) -
Merger costs - (296)
- (296)
(10,584) 1,133 (12,213) 2,132
Development costs (649) (884) (2,036)
(1,645)
Profit/(Deficit) before
taxation and interest (11,233) 249 (14,249) 487
Interest and other (net) 61 - 122 9
Profit/(Deficit) before
taxation (11,172) 249 (14,127) 496
Taxation - (54) 0
(89)
Retained Profit/
(Deficit) (11,172) 195 (14,127) 407
Earnings/(Deficit) per
ordinary share (43.7)p 0.8p (55.3)p
1.8p
Weighted average ordinary
and ordinary share
equivalents outstanding 25,539 23,004 25,537 23,004
-0-
Notes:
1. The abridged balance sheet for the year ended April 30, 1996 is
an extract from the latest published accounts which have been
delivered to the Registrar of Companies. The report of the auditors
on those accounts was unqualified and did not contain a statement
under section 237(2) of the Companies Act 1985.
2. The primary differences between accounting principles generally
accepted in the United States and the United Kingdom relate to the
accounting for acquisitions, timing of recognition of license and
maintenance revenue, presentation of restructuring charges and
accounting for income taxes.
LEARMONTH & BURCHETT MANAGEMENT SYSTEMS PLC
Consolidated Balance Sheet
(In thousands Sterling)
unaudited audited
October 31, April 30,
1996 1996
Fixed Assets
Tangible Fixed Assets 925 1,981
Investments 600 600
-------- -------
1,525 2,581
Current assets
Debtors 3,289 8,689
Cash at bank and in hand 4,342 7,282
7,631 15,971
Creditors (amounts falling
due within one year) (6,386) (5,900)
Net Current Assets 1,245 10,071
Total Assets Less current
liabilities 2,770 12,652
Creditors (amounts falling due
after more than one year) (6,451) (1,723)
Deferred income (1,750) (1,809)
Total net assets (5,431) 9,120
Share capital and reserves
Called up share capital 2,554 2,553
Share premium account 13,197 13,223
Profit and loss account (21,182) (6,656)
Shareholders' funds (5,431) 9,120
Note: The primary differences between accounting principles generally accepted in
the United States and the United Kingdom relate to the accounting for acquisitions,
timing of recognition of license and maintenance revenue, classification of the offset
of the ESOT indebtedness, presentation of restructuring charges and accounting for
income taxes.
CONTACT: LBMS, Inc. Stephen E. Odom, 713/625-9311 e-mail: steveo@lbms.com
STRATOSPHERE CORPORATION DOES NOT MAKE INTEREST PAYMENT
ON FIRST MORTGAGE NOTE
LAS VEGAS, NV--Nov. 19, 1996--Stratosphere Corporation (NASDAQ: TOWV)
today announced that, it did not make its First Mortgage Notes interest payment of
$14.5 million which was due on November 15, 1996. The Company had previously
announced that it was highly unlikely that it would make this payment. Although the
Company has thirty (30) days in which to make this interest payment before such non
payment becomes an event of default under its First Mortgage Notes, it is highly
unlikely that it will make such payment.
The Company is continuing to seek additional financing and is discussing
restructuring of its existing First Mortgage Note indebtedness. 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 does not believe that a bankruptcy filing
will, in the long term, adversely affect daily operations or guest services.
Stratosphere Corporation 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 by 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 states 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.
CONTACT: Stratosphere Corporation Tom Lettero, 702/383-5207
MobileMedia Corporation Announces Management Changes
RIDGEFIELD PARK, N.J., Nov. 19, 1996 - MobileMedia Corporation (Nasdaq:
MBLM) today announced that Michael K. Lorelli has informed the Company's Board
of Directors of his intention to resign as the Company's President and Chief
Executive Officer and as a member of its Board of Directors.
The Company and Mr. Lorelli are working out details of a Separation Agreement, the
terms of which are expected to include compensation calculated pursuant to his
employment agreement.
David Bayer, Chairman of the Board of Directors, will be named Acting Chief
Executive Officer. The Board is commencing an active search for Mr. Lorelli's
replacement, and is continuing its search for senior operations management.
On behalf of the Board of Directors, David Bayer said, "Mike Lorelli joined
MobileMedia in September because we and he felt the Company's long-term
opportunities would leverage his leadership talents as a growth strategist. In the past
three months, it has become clear that the challenges facing MobileMedia are more
operational in nature. Ongoing discussions with the lenders and vendors have
prompted Mike to conclude that the role of CEO now requires an executive with a
different experience set. We support Mike in a decision he feels is in his own and
MobileMedia's best interests."
David Bayer has over 20 years of experience operating paging and cellular telephone
companies, most recently as an investor in, and member of the Boards of Directors
of, Western Wireless Corporation and MobileMedia.
MobileMedia Corporation is the second largest provider of paging and personal
communications services in the United States, offering local, regional and nationwide
coverage to approximately 4.5 million subscribers in all 50 states, Canada and the
Caribbean. The company operates two one-way nationwide networks and owns two
nationwide narrowband PCS licenses.
SOURCE MobileMedia Corporation /CONTACTS: Santo J. Pittsman, Senior Vice
President & CFO, 201- 393-4693, or Laura E. Wilker, Investor Relations,
201-462-4959, both of MobileMedia/