Global Casinos Inc. announces successful reorganization
DENVER, CO--Dec. 19, 1996--Global Casinos Inc. (NASDAQ:GBCSD) announced
today that its wholly owned subsidiary, Casinos USA Inc., which operates the Bull
Durham Saloon & Casino ("Bull Durham") in Black Hawk, Colo., has received
Bankruptcy Court approval for its Plan of Reorganization (the "Plan") under Chapter
11.
As a result of the confirmation of the Plan, Global Casinos will report a one-time
gain from the reorganization of approximately $1.3 million. In addition, the Plan will
reduce total liabilities of the Bull Durham from $5.4 million to $2.9 million and
requires Bull Durham to write-off a note receivable and accrued interest from one of
the secured lenders of approximately $1.2 million.
Stephen G. Calandrella, president of Global Casinos Inc., stated: "We are extremely
pleased with the results of the restructuring. Since the filing of the Chapter 11 case,
the Bull Durham Saloon & Casino has exceeded its financial projections. We expect
this trend to continue as we move forward. Further, we would like to thank all the
employees of the Bull Durham for their patience and hard work during the
reorganization and to thank the creditors for their cooperation which has resulted in
the Plan being confirmed."
CONTACT: Global Casinos Inc., Denver 303/756-3777
Granny Goose Negotiations with Country Club Bog Down
OAKLAND, Calif.--Dec. 19, 1996--Negotiations between Granny Goose Foods, Inc.
and the bankrupt Country Club Foods, Salt Lake City, have encountered difficulties
which may delay or prevent the acquisition of the Utah snack foods company
announced by Granny Goose in November.
While Granny Goose remains the high bidder, there is disagreement between Country
Club as debtor in possession and Granny Goose over the ultimate valuation of the
combined two entities and the feasibility of the Granny Goose plan for
reorganization.
"We continue to believe that combining these two fine companies would be in the
best interests of the employees, the communities and the customers of both, and are
trying to make that happen," said Jack Doty, chief financial officer at Granny Goose.
"We have sufficient funding in place to do the deal, and our expanding markets would
benefit from the addition of the Country Club manufacturing and distribution capacity.
However, as the negotiations have taken place under the court approval process,
difficulties have developed. As a result we think it is doubtful the acquisition can be
completed in its present form by the January 31, 1997 target date."
Doty noted that while these negotiations have proceeded, Granny Goose distribution
and revenues have grown substantially, with the addition of more than 1200 stores in
Southern California. He said that the company is now projecting 1997 revenues of
$140 million even without the added Country Club volume, and is exploring
distribution and production opportunities in the Pacific Northwest and the Mountain
Southwest.
Country Club Foods is a $40-million snack foods producer headquartered in Salt
Lake City with distribution throughout the mountain states.
Founded in 1946, Granny Goose Foods is the largest independent snack food
producer in the West. The company, which employs 550 people in Northern and
Southern California, makes a complete line of snacks including potato chips, corn
chips, tortilla chips, pretzels and other salted treats.
CONTACT: Granny Goose Foods, Inc. Jack Doty, 510/635-5400 or The Amidei
Group Neal Amidei, 415/956-2830
Chic By H.I.S. announces earnings
NEW YORK, NY--Dec. 19, 1996--Chic by H.I.S Inc. (NYSE:JNS) announced that it
will record a $15 million non-cash restructuring charge against earnings in the fourth
quarter of fiscal 1996 in connection with its previously announced plan to establish
manufacturing operations in Mexico.
The company has now completed the acquisition of a manufacturing facility in
Mexico, which will produce apparel for the domestic market, and expects such
facility to be in operation early in fiscal 1997. The $15 million restructuring charge
is expected to cover costs to be incurred in connection with the shifting of a portion
of the company's domestic manufacturing operations to Mexico, the write- off of
equipment in connection with the downsizing of the company's domestic
manufacturing operations, and the write-off of certain deferred financing costs.
The company believes that by transferring a portion of its manufacturing operations to
Mexico, it will be able to improve its profit margins and enhance its ability to
compete in the U.S. market.
Income Statement Data
(In thousands, except share
and per share amounts)
Fiscal
Fiscal
Year Ended
Year Ended
Nov. 2, 1996
Nov. 4, 1995
Net sales 318,790
376,068
Gross profit 70,062
72,152
Licensing revenues 6,359
5,773
Less:
Selling, general & admin. expenses 61,295
69,415 Restructuring and non-recurring
charges 30,000
--
Operating income (14,874)
8,510
Less:
Interest and finance cost 6,544
6,129
Income (loss) before provision
for income taxes and extraordinary
items (21,418)
2,381
Less:
Provision for taxes 4,146
1,369
Cumulative effect on prior years of
change in accounting for income taxes 0
0
Net income (loss) (25,564)
1,012
Earnings per common share data:
Earnings before restructuring and
non-recurring charges $0.45
N/A
Net income (loss) $(2.62)
$0.10
Average number of common shares 9,753,868
9,753,868
CONTACT: CHIC by H.I.S., New York Burt Rosenberg, 212/302-6400, ext. 335
Krause's Furniture Inc. reports progress following restructuring and announces
third-quarter results
BREA, Calif.--Dec. 19, 1996--Krause's Furniture Inc. (Nasdaq:SOFA) Thursday
reported progress in returning the company to profitability following a previously
announced restructuring in August 1996, in which it received approximately $17
million from GE Capital Services and a group of investors led by Philip M. Hawley,
the company's recently appointed chairman and chief executive officer.
The company announced that EBITDA (earnings before interest, taxes, depreciation
and amortization), which had been a negative $2.8 million in the first quarter and a
negative $5.3 million in the second quarter, improved to a negative $1.7 million in
the 13 weeks ended Oct. 27, 1996.
``We have made considerable progress in managing our margins and our variable
selling expenses,'' said Hawley, ``and we expect to see further improvements in
EBITDA during the current quarter.''
Hawley noted that prior to the restructuring, the company's most immediate problem
was a severe shortage of cash, which curtailed its ability to purchase the raw
materials necessary to match customer orders.
``Because the refinancing did not occur until well into the third quarter, the effects of
the earlier reduced liquidity are reflected in the results now reported. However, with
the liquidity problem behind us, we are working toward returning the company to
profitability.
``Due in large part to a planned reduction in our promotional discounting, revenues
declined during the quarter. However, even with lower sales, the reduction in
promotional discounting resulted in an encouraging improvement in gross margins,
which were 52.4 percent of net sales, compared with 47.1 percent in the six months
ended July 28, 1996.
``We also reconfigured our selling commissions to better reflect industry norms,
which has led to an improvement in our variable selling expenses. In fact, variable
selling expenses as a percentage of net sales, which were 12.7 percent as recently as
July, were down to 11 percent for the quarter.''
Revenues for the quarter ended Oct. 27, 1996, were $26.9 million vs. $31.3 million
in the same period last year. The net loss was $2.5 million, or 24 cents per share, vs.
a net loss of $1.4 million, or 34 cents per share, in the same period a year ago.
The $2.5 million net loss for the quarter compares with a net loss of $3.6 million
reported in the first quarter of 1996, and a net loss of $6.2 million reported in the
second quarter of 1996. The average number of shares outstanding was 10.6 million
vs. 4.1 million a year ago.
Revenues for the 39 weeks ended Oct. 27, 1996, were $82.7 million vs. $92.5
million in the same period a year ago, and the net loss was $12.4 million, or $1.62
per share, compared with a net loss of $4.5 million, or $1.15 per share, a year ago.
The average number of shares outstanding was 7.7 million vs. 3.9 million a year ago.
The increase in average shares outstanding stems from the August 1996 restructuring.
On Oct. 27, 1996, there were 19 million shares outstanding.
The company's strategic objectives include: improving its manufacturing processes,
upgrading and remodeling retail showrooms to provide a more appealing
environment for customers, reducing showroom square footage to control occupancy
expenses, remerchandising, refocusing advertising expenditures and an overall
reduction in corporate expenses.
Krause's Furniture wholly owns Krause's Sofa Factory, a vertically integrated
manufacturer and retailer of made-to-order upholstered furniture. Krause's sells its
furniture under the names Krause's Sofa Factory and Castro Convertibles through 83
furniture showrooms and four dealers in 12 states.
Except for historical information contained herein, the statements in this release are
forward-looking statements that are made pursuant to the safe-harbor provisions of
the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve known and unknown risks and uncertainties
which may cause the company's actual results in future periods to differ materially
from forecasted results.
These risks include, among others, the change in the retail environment and the ability
of the company to execute its operating strategies. Those and other risks are
described in the company's filings with the Securities and Exchange Commission
(SEC), copies of which are available from the SEC or may be obtained upon request
from the company.
Krause's Furniture Inc.
Consolidated Statement of Operations
(Unaudited)
(in thousands, except per share data)
13 Weeks Ended 39 Weeks
Ended
Oct. 27, Oct 29, Oct. 27,
Oct. 29
1996 1995 1996
1995
Net furniture sales $26,865 $31,286 $82,738
$92,465 Cost of sales 12,781 15,031
42,364 44,620
Gross profit 14,084 16,255 40,374
47,845
Operating expenses:
Selling 14,081 14,915 43,556
44,532 General and
administrative 2,084 2,385 7,852
8,094
Amortization of
goodwill 255 255 765
764
16,420 17,555 52,173
53,390
Loss from operations (2,336) (1,300) (11,799)
(5,545)
Interest expense (296) (165) (782)
(528) Other income 111 70
207 259
Loss before income
taxes (2,521) (1,395) (12,374)
(5,814)
Income tax benefit - - -
(1,327)
Net loss ($2,521) ($1,395) ($12,374)
($4,487)
Net loss per share (24 cents) (34 cents) ($1.62)
($1.15)
Average number of common
shares outstanding 10,556 4,082 7,661
3,905
CONTACT: Krause's Furniture Inc. Philip M. Hawley, 714/990-3100 or Silverman
Heller Associates Eugene G. Heller/Philip Bourdillon, 310/208-2550
Whittaker Corporation announces fourth- quarter and FY1996 results
SIMI VALLEY, Calif.--Dec. 19, 1996--Whittaker Corporation (NYSE:WKR)
Thursday announced the results of its operations for the fourth quarter and fiscal year
ended Oct. 31, 1996.
The net loss for the quarter was $8,181,000, or 74 cents per share. Net income for
the quarter ended Oct. 31, 1995, was $4,237,000, or 44 cents per share. Sales for the
current quarter were $67,690,000, compared with $56,764,000 for the fourth quarter
of fiscal year 1995.
For the 1996 fiscal year, after pre-tax charges for acquired in-process research and
development of $11.7 million (75 cents per share after tax), the net loss for 1996 was
$17,127,000, or $1.70 per share, compared with net income of $7,865,000, or 82
cents per share, in fiscal 1995. Sales for the year were $221,877,000, compared with
$159,479,000 for the previous year.
The company's Aerospace Group's sales and operating profit of $130,372,000 and
$20,286,000, respectively, for 1996, compared with sales and operating profit of
$128,954,000 and $29,278,000, respectively, for the prior year, included substantial
increases in the sales and operating profits of its two aircraft products units, but a
substantial reduction in 1996 in sales and a substantial loss in its defense electronics
unit, compared with an operating profit for the unit in the prior year.
The company's bank lending group has waived compliance until Feb. 28, 1997, with
certain financial ratio covenants in the company's credit agreement. The waiver
requires the company to pay additional fees and, in certain circumstances, additional
interest.
Commenting on the results, Whittaker Chairman and Chief Executive Officer Joseph
F. Alibrandi said: ``The past year has been one of difficult transition for us.
``We are taking the right steps needed to focus our efforts, increase our sales and
reduce our expenses in both of our operating segments so that we can return to
profitability in 1997, and lay the foundation for significant growth. Although it will
take time and energy, we believe that substantial rewards lie ahead.''
Whittaker Corporation provides products and services with a high technology and
engineering content to the aerospace and communications industries, through its two
principal operating segments. For additional information on Whittaker, contact the
Internet home page at http://www.whittaker.com
Whittaker Corporation
Consolidated Statements of Income
($ in 000)
(unaudited)
For the three months For
the year
ended Oct. 31, ended
Oct. 31, 1996 1995
1996 1995
Sales $ 67,690 $ 56,764
$221,877 $159,479
Costs and expenses
Cost of sales 40,682 31,778
129,890 89,974 Engineering and
development 6,108 3,300
19,964 7,741
Selling, general and
administrative 27,522 13,065
78,562 39,608
Acquired in-process
research and development -- --
11,700 3,250
Restructuring costs 1,168 --
2,574 382
Operating profit (loss) (7,790) 8,621
(20,813) 18,524
Interest expense 3,958 1,742
11,018 5,897 Interest income (198)
(89) (6,299) (568) Other expense
342 35 684 169
Income (loss) before
provision for taxes (11,892) 6,933
(26,216) 13,026
Provision (benefit) for
taxes (3,711) 2,696
(9,089) 5,161
Net income (loss) $ (8,181) $ 4,237
$(17,127) $ 7,865 Net income (loss) per
share (74 cents) 44 cents $
(1.70) 82 cents
Average common and common
equivalent shares
outstanding (000) 11,029 9,674
10,065 9,625
Note: Certain reclassifications have been made to
1995 numbers to
conform to 1996 presentation.
-0-
Whittaker Corporation
Consolidated Balance Sheets
($ in 000)
As of Oct. 31,
1996 1995
ASSETS (unaudited)
Current Assets
Cash $ 1,566 $
161 Receivables 74,258
64,708 Inventories 46,087
38,975 Other current assets 2,319
2,053 Income taxes recoverable 5,443
1,452 Deferred income taxes
17,928 15,151 Total Current Assets
147,601 122,500
Property and equipment, at cost 89,787
78,059 Less accumulated depreciation and
amortization (46,421)
(36,641)
Net Property and Equipment 43,366
41,418
Other Assets
Goodwill, net of amortization 95,003
33,414 Other intangible assets, net of
amortization 45,422
10,585
Notes and other noncurrent
receivables 2,898
4,218
Other noncurrent assets 14,065
11,709 Net assets held for sale 31,129
27,115 Total Other Assets 188,517
87,041
Total Assets $379,484
$250,959
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Current maturities of long-term
debt $161,482 $
6,048
Accounts payable 13,830
14,650 Accrued liabilities 38,020
29,530 Total Current Liabilities 213,332
50,228
Other Liabilities
Long-term debt 453
70,694 Other noncurrent liabilities 12,019
11,340 Deferred income taxes 22,544
16,273 Total Other Liabilities 35,016
98,307
Stockholders' Equity
Capital stock
Preferred stock 1
1 Common stock 110
86
Additional paid-in capital 70,321
19,261 Retained earnings 60,704
83,076 Total Stockholders' Equity 131,136
102,424
Total Liabilities and
Stockholders' Equity $379,484
$250,959
NOTE: Certain reclassifications have been made to
1995 numbers to conform to 1996 presentation. -0-
Whittaker Corporation
Industry Segment Data
($ in 000)
(Unaudited)
For the Three Months For the
Year
Ended Oct. 31, Ended
Oct. 31,
1996 1995 1996
1995
Sales:
Aerospace $37,316 $39,445
$130,372 $128,954 Communications 30,374
17,319 91,505 30,525
$67,690 $56,764 $221,877
$159,479
Operating profit (loss):
Aerospace $ 3,147 $10,043 $
20,286 $ 29,278 Communications (7,570)
307 (30,663) (3,431) Corporate and Other
(3,367) (1,729) (10,436) (7,323)
$(7,790) $ 8,621 $(20,813)
$ 18,524
Operating profits for 1996 and 1995 were affected by
write-offs of acquired in-process research and
development associated with purchase of communications
businesses. In addition, both business segments
incurred restructuring charges during 1996. The
following table provides a comparison of segment
operating profit to operating
profit excluding these special charges:
For the Three Months For
the Year
Ended Oct. 31, Ended
Oct. 31,
1996 1995 1996
1995
Aerospace operating
profit $ 3,147 $10,043 $
20,286 $ 29,278
Restructuring 421 -
961 210
$ 3,568 $10,043 $ 21,247
$ 29,488
Communications operating
loss $(7,570) $ 307
$(30,663) $ (3,431)
Acquired in-process research
and development
11,700 3,250
Restructuring 747 -
1,613 172
$(6,823) $ 307 $(17,350)
$ (9)
CONTACT: Whittaker Corporation, Simi Valley Richard Levin, 805/526-5700, ext.
641 John Otto, 805/526-5700, ext. 662