Bradlees Receives Extension of Exclusivity Rights
BRAINTREE, Mass., Jan. 21, 1997 - The US Bankruptcy Court today granted Bradlees,
Inc.(NYSE: BLE) a six month extension of its right to exclusively file a plan of
reorganization with the Court. The decision, which was supported by the Company's
creditor constituencies, will facilitate Bradlees continuing efforts to restore the company
to profitability.
This decision follows recent approval by the Company's debtor- in- possession (DIP)
lender of an amendment to Bradlees' DIP financing agreement which provides more
flexible minimal earnings covenants for both year-end fiscal 1996 and the first quarter of
fiscal 1997.
In response to today's decision, Peter Thorner, Bradlees' new chairman and chief
executive officer commented, "Bradlees is pleased with today's approval and we will
continue to move forward with modifications to our merchandising and advertising
programs and cost structure to return the Company to profitability. While the task at hand
is challenging, we are confident that our creditors and vendors share our enthusiasm and
we appreciate their continued support."
Bradlees, Inc. operates 110 discount department stores in Maine, New Hampshire,
Massachusetts, Connecticut, New York, New Jersey and Pennsylvania. Bradlees' common
stock is listed and traded on the New York Stock Exchange under the symbol "BLE." For
additional Bradlees' press releases, please call 1-800-758-5804, ext. 105750.
SOURCE Bradlees, Inc. /CONTACT: Coleman Nee of Rasky & Co., 617-742-7077/
USA Waste Announces Proposed Asset Acquisition of Mid-American Waste Through
Bankruptcy Proceeding
HOUSTON, TX - Jan. 21, 1997 - USA Waste Services, Inc. (NYSE: UW) announced
today that it had executed a definitive agreement to acquire substantially all the assets of
Mid-American Waste Systems, Inc. (NYSE: MAW) for approximately $180 million. The
purchase price includes the proposed assumption of $49 million of debt with the balance
of the price being paid in cash, or a combination of cash and up to $90 million in USA
Waste common stock. Since the purchase price is significantly less than Mid- American's
total outstanding indebtedness, Mid-American and its related subsidiaries today filed a
proceeding under Chapter 11 of the Bankruptcy Code with the United States Bankruptcy
Court for the District of Delaware. Under the proposed arrangement, USA Waste will
acquire the assets subject only to agreed liabilities and is afforded protection from future
creditor claims against the assets acquired. USA Waste will purchase 11 operating
landfills, 11 collection operations, 6 transfer stations and 3 recycling centers operating in
Ohio, Illinois, Indiana, Kentucky, Pennsylvania, South Carolina, and West Virginia.
Mid-American had annual revenues for 1996 of approximately $123 million. The
transaction is subject to approval of the Bankruptcy Court, antitrust clearance and other
customary closing conditions. Depending upon the timing of the court approval, the
transaction could close during the first half of 1997.
John E. Drury, CEO of USA Waste, stated, "This transaction will be accretive to our 1997
earnings per share, and is made possible by the creative structure involving
Mid-American's Bankruptcy filing. That structure affords USA Waste the benefits of
protecting the assets from third party claims we have not expressly agreed to assume.
Combining these new operations with our existing businesses will allow us to achieve
cost savings and operational efficiencies while providing additional opportunities for
growth in these markets."
USA Waste, based in Houston, Texas is an integrated, non- hazardous, solid waste
management company serving municipal, commercial, industrial and residential customers
in 36 states, the District of Columbia, Canada, the Commonwealth of Puerto Rico and
Mexico.
Certain statements provided in this release constitute forward looking statements that
involve a number of risks and uncertainties. These risks and uncertainties may cause actual
results to differ materially from our expected results and are described in detail in the
company's Securities and Exchange Commission Filings.
SOURCE USA Waste Services, Inc. /CONTACT: Lew Nevins of USA Waste Services,
713-512-6228/
Performance Nutrition, Inc. Announces Filing for Reorganization
DALLAS, TX - Jan. 21, 1997 - Performance Nutrition, Inc. (OTC: PNII) announced today
that it has filed this date for Reorganization under Chapter 11 of the Bankruptcy Code in
the Federal Bankruptcy Court in Dallas, Texas to seek relief from ongoing litigation.
Under a Chapter 11 proceeding, a debtor continues its operation while reorganizing its
debt and capital structure.
SOURCE Performance Nutrition, Inc. /CONTACT: David E. Wynne of Performance
Nutrition, Inc., 972-250-2274/
Whirlpool reports improvement in fourth-quarter results; full-year operating results down,
as expected
BENTON HARBOR, Mich.--Jan. 21, 1997-- Whirlpool Corporation (NYSE:WHR) today
said continued strong performances by its North American and Latin American businesses
and improvement in its European appliance unit produced a sharp year-over-year increase
in fourth-quarter earnings. As anticipated, full-year operating results were down from
those for 1995.
Whirlpool's fourth-quarter net earnings were $45 million, or 60 cents per share, up from
$18 million, or 25 cents per share, one year ago. Revenues for the period increased by 3
percent to $2.17 billion.
Full-year 1996 net earnings totaled $156 million, or $2.08 per share, including a
third-quarter charge related to streamlining Whirlpool's Asian headquarters and a North
American refrigeration operation. Without the charge, 12-month earnings were $175
million, or $2.33 per share, off from $209 million, or $2.80 per share, in 1995. Revenues
reached $8.70 billion, 4 percent better than in the prior year.
Whirlpool Chairman and CEO David R. Whitwam said that the company last year
accomplished several significant objectives associated with its global strategy to create
long-term value. He acknowledged that "bottom-line financial results were disappointing,"
but added that profitability varied widely from region to region.
"The operating performances of our North American and Latin American appliance groups
in 1996 were outstanding, and we expect further solid results from them this year," said
Whitwam. "We believe that our European business is on a trend of gradual improvement
that will carry through 1997, and we anticipate better results from Whirlpool Asia as our
volumes in that important market continue to grow."
Whirlpool North America turned the cumulative effects of ongoing efficiency gains and
more favorable material costs into a 17-percent jump in quarterly operating results. The
company is benefiting from strong consumer receptivity to its new KitchenAid
dishwashers, KitchenAid and Whirlpool built-in ovens and Whirlpool free-standing
ranges, all of which were introduced during third-quarter 1996. In the latter category, the
redesigned products from its new Tulsa, Okla., manufacturing division helped Whirlpool
pick up market share in the second half of the year.
According to Whitwam, regional industry shipments were up by 5 percent in 1996,
including disproportionate gains by air conditioners and microwave ovens. Industry totals
are expected to be down slightly this year primarily because retail inventories of air
conditioners remain high from last season.
In Europe, Whirlpool was profitable in the fourth quarter, extending a run of improved
performance since second-quarter 1996, but suffered a slight full-year operating loss.
While the overall economic and industry environment in Western Europe remains weak,
the company achieved product-shipment and revenue increases on both quarterly and
annual bases. For the year, strong acceptance of several new products led Whirlpool
volumes up even as the industry slipped by almost 2 percent. Flat industry shipments are
forecasted for 1997.
Total Latin American earnings were up by 30 percent in the fourth quarter, 19 percent for
the year, as Whirlpool's Brazilian affiliates contributed a third straight quarter of markedly
higher equity earnings. Whitwam said that industry shipments in Brazil are likely to cool
somewhat from last year's 20-percent increase, but are still expected to expand at a
double-digit rate in 1997. The company anticipates that Argentina and other key Latin
markets will maintain their slow recovery from recent depressed levels.
Whirlpool Asia reported a substantial rise in quarterly sales, although, as planned,
strategic spending in that fast-growing region resulted in fourth-quarter and full-year
operating losses. In late 1996, the Whirlpool brand was introduced to China in three of the
four major appliance categories -- microwave ovens, washers and air conditioners -- on
products that feature new aesthetics and higher levels of manufacturing and functional
quality.
Whirlpool Corporation is the world's leading manufacturer and marketer of major home
appliances. Headquartered in Benton Harbor, the company manufactures in 13 countries
and markets products under 11 major brand names in about 140 countries.
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
(UNAUDITED) WHIRLPOOL CORPORATION AND SUBSIDIARIES
THREE MONTHS ENDED December 31 (millions of dollars
except share data)
Whirlpool Corporation
(Consolidated)
____________________
1996 1995
_________ _________
REVENUES
Net sales $ 2,126 $ 2,046
Financial services 39
47
_________ _________
2,165 2,093
EXPENSES
Cost of products sold 1,644 1,591
Selling and administrative 421 429
Financial services
interest 21 17
Intangible amortization 8 9
Restructuring costs - -
_________ _________
2,094 2,046
_________ _________
OPERATING PROFIT 71 47
OTHER INCOME (EXPENSE)
Interest and sundry (3) (11)
Interest expense (40) (37)
_________ _________
EARNINGS BEFORE TAXES
AND OTHER ITEMS 28 (1)
Income taxes 23 4
_________ _________
EARNINGS BEFORE EQUITY
EARNINGS AND OTHER
ITEMS 5 (5)
Equity in WFC - -
Equity in affiliated
companies 32 23
Minority interests 8 -
_________ _________
NET EARNINGS $ 45 $ 18
_________ _________
_________ _________
Per share of
Common Stock:
Net earnings $ 0.60 $ 0.25
_________ _________
_________ _________
Cash dividends $ 0.34 $ 0.34
_________ _________
_________ _________
See notes to
consolidated condensed
financial statements
Supplemental Consolidating
Data
________________________________
__________
Whirlpool with WFC Whirlpool
Financial on an Equity Basis
Corporation (WFC)
____________________
____________________
1996 1995 1996
1995
_________ _________ _________
_________
REVENUES
Net sales $ 2,126 $ 2,046 $
- $ - Financial services -
- 59 56
_________ _________ _________
_________
2,126 2,046 59
56
EXPENSES
Cost of products sold 1,644 1,591
- - Selling and administrative 403
407 38 32 Financial services
interest - -
23 21
Intangible amortization 8 9
- - Restructuring costs -
- - -
_________ _________ _________
_________
2,055 2,007 61
53
_________ _________ _________
_________
OPERATING PROFIT 71 39
(2) 3
OTHER INCOME (EXPENSE)
Interest and sundry (15) (13)
12 3 Interest expense (38)
(34) - -
_________ _________ _________
_________
EARNINGS BEFORE TAXES
AND OTHER ITEMS 18 (8)
10 6
Income taxes 19 1
4 2
_________ _________ _________
_________
EARNINGS BEFORE EQUITY
EARNINGS AND OTHER
ITEMS (1) (9)
6 4
Equity in WFC 5 4
- - Equity in affiliated
companies 32 23
- -
Minority interests 9 -
(1) -
_________ _________ _________
_________
NET EARNINGS $ 45 $ 18 $
5 $ 4
_________ _________ _________
_________ _________ _________
_________ _________
See notes to
consolidated condensed
financial statements
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
(UNAUDITED) WHIRLPOOL CORPORATION AND SUBSIDIARIES
TWELVE MONTHS ENDED December 31 (millions of dollars
except share data)
Whirlpool Corporation
(Consolidated)
____________________
1996 1995
_________ _________
REVENUES
Net sales $ 8,523 $ 8,163
Financial services 173
184
_________ _________
8,696 8,347
EXPENSES
Cost of products sold 6,623 6,245
Selling and administrative 1,637 1,609
Financial services
interest 71 66
Intangible amortization 35 31
Restructuring costs 30 -
_________ _________
8,396 7,951
_________ _________
OPERATING PROFIT 300 396
OTHER INCOME (EXPENSE)
Interest and sundry (5) (13)
Interest expense (165) (141)
_________ _________
EARNINGS BEFORE TAXES
AND OTHER ITEMS 130 242
Income taxes 81 100
_________ _________
EARNINGS BEFORE EQUITY
EARNINGS AND OTHER
ITEMS 49 142
Equity in WFC - -
Equity in affiliated
companies 93 72
Minority interests 14 (5)
_________ _________
NET EARNINGS $ 156 $ 209
_________ _________
_________ _________
Per share of
Common Stock:
Net earnings $ 2.08 $ 2.80
_________ _________
_________ _________
Cash dividends $ 1.36 $ 1.36
_________ _________
_________ _________
See notes to
consolidated condensed
financial statements
Supplemental Consolidating
Data
________________________________
__________
Whirlpool with WFC Whirlpool
Financial on an Equity Basis
Corporation (WFC)
____________________
____________________
1996 1995 1996
1995
_________ _________ _________
_________
REVENUES
Net sales $ 8,523 $ 8,163 $
- $ - Financial services -
- 224 219
_________ _________ _________
_________
8,523 8,163 224
219
EXPENSES
Cost of products sold 6,623 6,245
- - Selling and administrative 1,557
1,521 131 123 Financial services
interest - -
81 79
Intangible amortization 35 31
- - Restructuring costs 30
- - -
_________ _________ _________
_________
8,245 7,797 212
202
_________ _________ _________
_________
OPERATING PROFIT 278 366
12 17
OTHER INCOME (EXPENSE)
Interest and sundry (23) (23)
18 11 Interest expense (155)
(129) - -
_________ _________ _________
_________
EARNINGS BEFORE TAXES
AND OTHER ITEMS 100 214
30 28
Income taxes 70 90
11 10
_________ _________ _________
_________
EARNINGS BEFORE EQUITY
EARNINGS AND OTHER
ITEMS 30 124
19 18
Equity in WFC 15 14
- - Equity in affiliated
companies 93 72
- -
Minority interests 18 (1)
(4) (4)
_________ _________ _________
_________
NET EARNINGS $ 156 $ 209 $
15 $ 14
_________ _________ _________
_________ _________ _________
_________ _________
See notes to
consolidated condensed
financial statements
CONSOLIDATED CONDENSED BALANCE SHEETS
WHIRLPOOL CORPORATION AND SUBSIDIARIES
(millions of dollars)
Whirlpool Corporation
(Consolidated)
____________________
Dec. 31, Dec. 31,
1996 1995
(Unaudited) (Audited)
_________ _________
ASSETS
CURRENT ASSETS
Cash and equivalents $ 129 $ 149
Trade receivables, less
allowances
(1996: $45; 1995: $39) 966 1,031
Financing receivables and
leases, less allowances
(1996: $12; 1995: $12) 1,400 1,086
Inventories 1,034 1,029
Other current assets 293 246
_________ _________
TOTAL CURRENT ASSETS 3,822 3,541
Investments and other
assets 818 777
Financing receivables
and leases, less
allowances
(1996: $37; 1995: $30) 704 772
Intangibles, net 870 931
_________ _________
2,392 2,480
Property, plant and
equipment 3,839 3,662
Accumulated depreciation (2,041) (1,883)
_________ _________
1,798 1,779
_________ _________
TOTAL ASSETS $ 8,012 $ 7,800
_________ _________
_________ _________
See notes to
consolidated condensed
financial statements
Supplemental Consolidating
Data
________________________________
__________
Whirlpool with WFC Whirlpool
Financial on an Equity Basis
Corporation (WFC)
____________________
____________________
Dec. 31, Dec. 31, Dec. 31,
Dec. 31,
1996 1995 1996
1995
(Unaudited) (Audited) (Unaudited)
(Audited)
_________ _________ _________
_________
ASSETS
CURRENT ASSETS
Cash and equivalents $ 102 $ 125 $
27 $ 24 Trade receivables, less
allowances
(1996: $45; 1995: $39) 966 1,031
- -
Financing receivables and
leases, less allowances
(1996: $12; 1995: $12) - -
1,400 1,086
Inventories 1,034 1,029
- - Other current assets 301
235 6 11
_________ _________ _________
_________
TOTAL CURRENT ASSETS 2,403 2,420
1,433 1,121
Investments and other
assets 1,101 1,046
- -
Financing receivables
and leases, less
allowances
(1996: $37; 1995: $30) - -
704 772
Intangibles, net 870 931
- -
_________ _________ _________
_________
1,971 1,977 704
772
Property, plant and
equipment 3,820 3,638
19 24
Accumulated depreciation (2,030) (1,867)
(11) (16)
_________ _________ _________
_________
1,790 1,771 8
8
_________ _________ _________
_________
TOTAL ASSETS $ 6,164 $ 6,168 $
2,145 $ 1,901
_________ _________ _________
_________ _________ _________
_________ _________
See notes to
consolidated condensed
financial statements
CONSOLIDATED CONDENSED BALANCE SHEETS
WHIRLPOOL CORPORATION AND SUBSIDIARIES
(millions of dollars)
Whirlpool Corporation
(Consolidated)
____________________
Dec. 31, Dec. 31,
1996 1995
(Unaudited) (Audited)
_________ _________
LIABILITIES AND
STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Notes payable $ 2,157 $ 1,998
Accounts payable 983 977
Other current liabilities 858 854
_________ _________
TOTAL CURRENT LIABILITIES 3,998 3,829
Long-term debt 955 983
Postemployment benefits 563 517
Other liabilities 388 415
_________ _________
1,906 1,915
Minority interests 182 179
STOCKHOLDERS' EQUITY
Common stock 81 81
Paid-in capital 246 229
Retained earnings 1,918 1,863
Unearned restricted stock (7) (8)
Currency translation
adjustments (76) (53)
Treasury stock - at cost (236) (235)
_________ _________
TOTAL STOCKHOLDERS'
EQUITY 1,926 1,877
_________ _________
TOTAL LIABILITIES AND
EQUITY $ 8,012 $ 7,800
_________ _________
_________ _________
See notes to
consolidated condensed
financial statements
Supplemental Consolidating
Data
________________________________
__________
Whirlpool with WFC Whirlpool
Financial on an Equity Basis
Corporation (WFC)
____________________
____________________
Dec. 31, Dec. 31, Dec. 31,
Dec. 31,
1996 1995 1996
1995
(Unaudited) (Audited) (Unaudited)
(Audited)
_________ _________ _________
_________
LIABILITIES AND
STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Notes payable $ 704 $ 765 $
1,453 $ 1,233 Accounts payable 886
896 111 81 Other current
liabilities 852 844 6 10
_________ _________ _________
_________
TOTAL CURRENT LIABILITIES 2,442 2,505
1,570 1,324
Long-term debt 887 870
68 113 Postemployment benefits 557
517 6 - Other liabilities
270 295 118 120
_________ _________ _________
_________
1,714 1,682 192
233
Minority interests 82 104
110 75
STOCKHOLDERS' EQUITY
Common stock 81 81
8 8 Paid-in capital 246
229 26 26 Retained earnings
1,918 1,863 242 234 Unearned
restricted stock (7) (8) -
- Currency translation
adjustments (76) (53)
(3) 1
Treasury stock - at cost (236) (235)
- -
_________ _________ _________
_________
TOTAL STOCKHOLDERS'
EQUITY 1,926 1,877
273 269
_________ _________ _________
_________
TOTAL LIABILITIES AND
EQUITY $ 6,164 $ 6,168 $
2,145 $ 1,901
_________ _________ _________
_________ _________ _________
_________ _________
See notes to
consolidated condensed
financial statements
CONTACT: Whirlpool Corporation, Benton Harbor T.R. Reid, 616/923-3417
T.R._Reid@email.whirlpool.com
Work Recovery, Inc. in Compliance with SEC Filing Requirements
TUCSON, Ariz., Jan. 21, 1997 - Work Recovery, Inc. (WRI) announced today the filing on
January 15 of all of its delinquent fiscal 1996 quarterly Form 10-Q reports. The filing of
these reports brings the Company in compliance with the filing requirements of the
Securities and Exchange Commission. The Company now plans to apply for listing of its
securities with a major stock exchange. Nasdaq has advised that on the Effective Date of
the Company's emergence from bankruptcy, the Company's stock will be upgraded to the
Bulletin Board from the Pink Sheets. The Company previously filed on a timely basis its
Form 10-K for the fiscal year ended June 30, 1996 which included the financial
information in these recently filed quarterly reports.
Following a damaging article in the Wall Street Journal, the company's previous
management failed to file the quarterly reports on time. The previous management's
delinquency resulted in the Company's securities being delisted from the Nasdaq stock
market. Former management was removed from the Company in January of 1996.
Currently under new management, Work Recovery has managed to work through Chapter
11 Bankruptcy and plans to officially emerge on February 1, 1997. In an effort to inform
investors, the Company plans to send an explanation of the terms and process of
emergence to its shareholders this week.
WRI's Acting President and Chief Executive Officer Dorcas R. Hardy said, "The filing of
the 1996 quarterly reports and our emergence from Bankruptcy are two very significant
accomplishments. We now have to concentrate on making this Company healthy and
restoring value to our shareholders."
Work Recovery, Inc. manufactures, markets and licenses its proprietary and objective
Functional Capacity Evaluation (FCE) technology, ERGOS(R), for the evaluation of
injured workers.
SOURCE Work Recovery, Inc. /CONTACT: Jodi Stefaniak of Work Recovery, Inc.,
520-322-6634/
Deluxe Reports Fourth Quarter, Year-End Results
ST. PAUL, Minn., Jan. 21, 1997 - Deluxe Corporation (NYSE: DLX) reports that sales for
the fourth quarter were $480,476,262, down 4.1 percent from $501,124,045 last year,
while net earnings were negative $25,037,961, or negative $.30 per share, compared to
negative $5,927,171, or negative $.07 per share, a year ago. Fourth quarter 1996 results
include net pretax charges totaling $107.4 million, or $.85 per share after tax for goodwill
impairment, restructuring, gains and losses on sales of businesses, and other costs.
Fourth quarter 1995 net earnings included a $4,809,132 after-tax loss from the
discontinued operations of the company's ink business. The 1995 fourth quarter loss from
continuing operations of $1,118,039, or negative $.01 per share, included a non-recurring
pretax charge of $62,477,300 related to production consolidation, elimination of
unprofitable product lines and overhead, and other balance sheet adjustments.
Excluding the fourth quarter one-time charges from both years and the loss from
discontinued operations in 1995, Deluxe recorded 1996 fourth quarter net earnings of $.55
per share, compared to $.46 per share in 1995.
Deluxe's sales increased for the 58th consecutive year to a record $1,895,664,264, an
increase of 2.0 percent, compared to $1,857,980,721 in 1995. Net income for the same
period was $65,462,725, or $.80 per share, compared to $87,020,503, or $1.06 per share,
a year ago.
1996 results include net pretax charges totaling $142.3 million, or $1.10 per share after
tax, for goodwill impairment, restructuring, gains and losses on sales of businesses, and
other costs. 1995 net income included a $7,413,518 after-tax loss from the discontinued
operations of the company's ink business. Income from continuing operations for the year
was $94,434,022, or $1.15 per share, and included the $62,477,300 pretax non-recurring
charge.
Excluding the restructuring and one-time charges in both years, Deluxe recorded 1996 net
earnings of $1.90 per share, compared to $1.62 per share in 1995.
Dividends of $1.48 per share were paid to shareholders in both 1996 and 1995, totaling
$121,975,899 and $122,142,043, respectively. The company had an average of
82,155,084 shares outstanding for the fourth quarter and an average of 82,310,806 shares
outstanding for the year.
Deluxe said fourth quarter performance among its three market- serving units was mixed.
Deluxe Financial Services' revenues increased 6 percent and its pretax income increased
10 percent. Revenues at the financial institution (FI) check printing business were up 3
percent and pretax income was up 14 percent. Order units were up in the fourth quarter but
were flat overall in 1996. Deluxe said FI check printing continued to feel the impact of
pricing pressure in 1996.
Deluxe Electronic Payment Systems' revenues were down 6 percent in the fourth quarter
and the unit continued to experience operating losses. Deluxe Data Systems, the largest
business in the unit, is undergoing a major restructuring that is expected to run throughout
1997.
Deluxe Direct, the company's catalog-based unit, showed continued profitability
improvement in the fourth quarter. Though management actions caused Deluxe Direct's
revenues to decline 18 percent, reflecting the divestitures of Colwell Systems and
T/Maker and the elimination of unprofitable product lines, the unit's pretax income
increased 44 percent.
"We made significant progress this past year in building the new Deluxe," said J.A.
Blanchard, Deluxe Chairman and Chief Executive Officer. "Our progress included
streamlining our operations, reducing our costs, and restructuring our businesses to focus
on the important financial institution and retail markets. We also divested many of our
non-strategic businesses and began to develop our long-term growth opportunities through
alliances and acquisitions."
Deluxe sold three businesses in the fourth quarter: Colwell Systems, Financial Alliance
Processing Services, Inc., and Deluxe U.K. Ltd. The company indicated that it expects to
sell Current Social Expressions, PaperDirect, and Nelco, Inc., during the first half of '97.
"I am extremely pleased with our progress," Blanchard said. "Now slightly past the
midway point of the massive restructuring that began in late 1995, we've not only hit our
operating earnings target, but we are very close to having the sort of lean, effective Deluxe
that can take advantage of the many opportunities awaiting us in the global financial
services and retail risk management marketplace."
Blanchard said he's optimistic about Deluxe hitting the announced target of $2.15 earnings
per share in 1997. "Once we complete the sale of these final three units, we will have
removed some $380 to $400 million in revenues from the company, eliminated
approximately 80 percent of purchase-related goodwill from our balance sheet,
overhauled and improved the operational and earnings capabilities of our remaining units,
and strengthened our cash position. I am confident that in 1997 we will build on the
earnings from operations momentum we established in 1996."
The company will hold a teleconference today at noon central time. Senior management
will meet with security analysts and portfolio managers in New York on February 5.
Deluxe is a leading payment services provider to financial institutions and retailers.
Statements made in this release concerning the company's or management's intentions,
expectations, or predictions about future results or events are "forward looking statements"
within the meaning of the Private Securities Reform Act of 1995. Such statements are
necessarily subject to risks and uncertainties that could cause actual results to vary from
stated expectations, and such variations could be material and adverse. Additional
information concerning the factors that could cause actual results to differ materially from
the company's current expectations is contained in item 5 of the company's quarterly report
on form 10-Q for the quarter ended September 30, 1996.
DELUXE CORPORATION
CONDENSED STATEMENTS OF INCOME
QUARTER ENDED DECEMBER 31
DOLLARS IN MILLIONS EXCEPT PER SHARE
UNAUDITED
1996 1995
Sales $480.5 $501.1
Cost of Goods Sold 224.0 246.0
Gross Profit 256.5 255.1
Selling/General & Administrative 198.6 222.7
Goodwill Impairment Charge 111.9 --
Employee Sharing 14.7 16.6
Non-Operating (Income) Expense (32.0) 13.4
Pretax (Loss) Income (36.7) 2.4
Income Tax (Benefit) Expense (11.7) 3.5
(Loss) From Continuing Operations (25.0) (1.1)
Loss from Discontinued Operations
(Net of Income Tax) -- (4.8)
Net (Loss) Income $(25.0) $(5.9)
Earnings Per Share:
Continuing Operations $(.30) $(.01)
Discontinued Operations -- (.06)
Earnings Per Share $(.30) $(.07)
DELUXE CORPORATION
CONDENSED STATEMENTS OF INCOME
TWELVE MONTHS ENDED DECEMBER 31
DOLLARS IN MILLIONS EXCEPT PER SHARE
Unaudited
1996 1995
Sales $1,895.7 $1,858.0
Cost of Goods Sold 895.9 860.3
Gross Profit 999.8 997.7
Selling/General & Administrative 728.8 734.9
Goodwill Impairment Charge 111.9 --
Employee Sharing 71.9 79.0
Non-Operating (Income) Expense (31.6) 14.5
Pretax Income 118.8 169.3
Income Tax 53.3 74.9
Income From Continuing Operations 65.5 94.4
Loss from Discontinued Operations
(Net of Income Tax) -- (7.4)
Net Income $65.5 $87.0
Earnings Per Share:
Continuing Operations $.80 $1.15
Discontinued Operations -- $(.09)
Earnings Per Share $.80 $1.06
DELUXE CORPORATION
CONDENSED BALANCE SHEET
MILLIONS
Unaudited
Dec. 31, 1996 Dec.
31, 1995
ASSETS
Current Assets $450.4
$381.1
Property, Plant, & Equipment - NET 446.9
494.2
Other Investments 59.0
48.1
Intangibles - NET 220.9
371.7
TOTAL ASSETS $1,177.2
$1,295.1
LIABILITIES & EQUITY
Current Liabilities $345.8
$368.8
Long-Term Debt 109.1
111.0
Deferred Credits 9.4
34.9
Shareholders' Equity 712.9
780.4
TOTAL LIABILITIES & EQUITY $1,177.2
$1,295.1
SHARES OUTSTANDING 82.1
82.4
SOURCE Deluxe Corporation/CONTACT: Stuart Alexander, Vice President, Corporate
Public Relations, 612-483-7358; Charles M. Osborne, Senior Vice President, Chief
Financial Officer, 612-483-7355, both of Deluxe/
Reynolds Metals Reports Fourth-Quarter and Year-End Results
RICHMOND, Va., Jan. 21, 1997 - Reynolds Metals Company (NYSE: RLM; CHX) today
reported fourth-quarter net income of $1 million. After deducting a $9 million dividend on
the company's 7% PRIDES(SM) preferred stock, Reynolds reported a net loss for the
quarter of 13 cents per common share. This compares to net income of $84 million, or
$1.15 per common share, for the fourth quarter of 1995. Reynolds PRIDES were redeemed
for 9.02 million shares of common stock effective Dec. 31, 1996.
Results for the 1996 fourth quarter include a favorable effect from LIFO inventory
liquidations of $9 million or 14 cents per share. These liquidations are a result of the
company's ongoing program to permanently reduce inventories on a days-of-supply basis.
The results also include a loss on the disposition of certain assets of $5 million or 8 cents
per share.
Revenues for the fourth quarter declined 7% to $1.75 billion, compared with $1.87 billion
in the 1995 quarter, primarily due to the continued softness in ingot and fabricated
aluminum product selling prices. Aluminum shipments were 418,000 metric tons,
compared with 419,000 metric tons in the fourth quarter of 1995.
For 1996, Reynolds reported net income of $89 million, or 82 cents per common share,
compared with $389 million, or $5.35 per share for 1995. The 1996 results are after a
charge of $38 million, or 60 cents per share, for the effects of an accounting change and
restructuring charges recorded in the first quarter.
The 1996 results also include a favorable effect from LIFO inventory liquidations of $19
million or 29 cents per share. For the year, inventories were reduced more than $100
million, which enabled the company to minimize short-term borrowings and maintain its
debt-to-equity ratio the same as year- end 1995.
Revenues for 1996 declined 3% to $7.02 billion, compared with $7.25 billion in 1995, as
a result of the lower selling prices particularly in the second half of the year. Aluminum
shipments in 1996 of 1.65 million metric tons were slightly lower than the 1.67 million
metric tons shipped in 1995.
Commenting on the company's 1996 results, Jeremiah J. Sheehan, chairman and chief
executive officer said, "Depressed prices for the entire year, higher costs in our alumina
business, the sluggish European economy, and a slowdown in our U. S. can business were
the major contributors to the decline."
"Lower U.S. beverage can and can stock shipments were primarily due to lower beer can
shipments for both Reynolds and the U.S. brewing industry. In the fourth quarter, this was
partially offset by higher shipments of our seasonally strong consumer and packaging
products," said Mr. Sheehan.
"Looking forward, we expect 1997 to show improvement over 1996. We have identified
1997 performance improvements, exclusive of price changes, of $100 million pre-tax. Our
optimism is further fueled by improving industry and economic fundamentals and the
aluminum ingot price rally experienced so far this year.
"For the first quarter, our optimism is somewhat contained because of the normal lag
before we begin to realize the full benefit of improving industry fundamentals. In addition,
the first quarter is seasonally our weakest, and we will not have the benefit of robust
consumer products sales as we did in the fourth quarter. Therefore, while we believe the
first quarter should be somewhat better than the fourth, more significant improvements
should follow later in the year," said Mr. Sheehan.
Reynolds Metals Company
Consolidated Statement of Income
(Unaudited)
Quarter ended Year
ended
December 31
December 31
(In millions, except
per share amounts) 1996 1995 1996
1995
REVENUES
Net sales $1,736 $1,857 $6,972
$7,213 Equity, interest
and other income 13 15 44
39
1,749 1,872 7,016
7,252
COSTS AND EXPENSES
Cost of products sold 1,507 1,506 5,899
5,772 Selling/administrative/
general expenses 123 123 445
449
Depreciation and
amortization 81 82 322
311
Interest 37 43 160
172 Operational
restructuring costs - - 37
-
1,748 1,754 6,863
6,704
Income before
income taxes and
cumulative effect of
accounting change 1 118 153
548
Taxes on income - 34 49
159 Income before cumulative
effect of accounting
change 1 84 104
389
Cumulative effect of
accounting change - - (15)
-
NET INCOME 1 84 89
389 Preferred stock dividends 9 9
36 36 Net income (loss)
available to common
stockholders ($ 8) $ 75 $ 53
$ 353
Earnings per share
Income (loss) before
cumulative effect of
accounting change $(0.13) $1.15 $1.06
$5.35
Cumulative effect of
accounting change - - (0.24)
-
Net income (loss) $(0.13) $1.15 $0.82
$5.35
Cash dividends per
common share $0.35 $0.35 $1.40
$1.20
Average shares outstanding:
Common shares 63,970,000 63,593,000 63,730,000
63,050,000 Common share
equivalents - 9,662,000 -
9,705,000
63,970,000 73,255,000 63,730,000
72,755,000
Earnings Per Share Note:
In the fourth quarter and year of 1996, earnings
per share
equals net income, minus dividends on the Company's 7%
PRIDES(SM), Convertible Preferred Stock (PRIDES),
divided by the weighted- average number of common
shares outstanding during the periods. In the fourth
quarter and year of 1995, earnings per share equals
net income divided by the weighted-average number of
common shares and common share equivalents outstanding
during the periods. The number of common share
equivalents outstanding was based on the assumed
conversion of the PRIDES. This methodology was not
applicable in the fourth quarter or year of 1996 since
its effect would have been anti-dilutive. In late
1996, all of the outstanding PRIDES were redeemed for
or converted into shares of common stock. If this
exchange had occurred on January 1, 1996, earnings per
share (net income) would have been $0.01 for the
fourth quarter of 1996 and $1.22 for the year of 1996.
Reynolds Metals Company
Condensed Consolidated Balance Sheet
(Unaudited)
December 31
December 31
(In millions, except share data) 1996
1995
ASSETS
Current assets
Cash and cash equivalents $ 38
$ 39 Receivables, less allowances of $18 (1995 -
$20) 961 1,043
Inventories 787
891 Prepaid expenses and other 87
41
Total current assets 1,873
2,014
Unincorporated joint ventures
and associated companies 1,337
1,286
Property, plant and equipment 6,813
6,600 Less allowances for depreciation
and amortization 3,576
3,377
3,237
3,223
Deferred taxes and other assets 1,069
1,217
Total assets $7,516
$7,740
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable, accrued
and other liabilities $1,020
$1,155 Short-term borrowings 217
111 Long-term debt
96 101
Total current liabilities 1,333
1,367
Long-term debt 1,793
1,853 Postretirement benefits 1,087
1,213 Environmental, deferred taxes
and other liabilities 669
690
Stockholders' equity
Preferred stock -
505 Common stock 1,451
941
Retained earnings 1,220
1,256 Cumulative currency
translation adjustments (37)
(22)
Pension liability adjustment -
(63)
Total stockholders' equity 2,634
2,617
Total liabilities and
stockholders' equity $7,516
$7,740
Common shares outstanding 72,719,000
63,598,000
Shipments and Net Sales
(Shipments in thousands of metric tons,
dollars in millions)
FOURTH QUARTER
1996
1995
Shipments Net Sales Shipments
Net Sales
Finished products and
other sales
Packaging and containers:
Aluminum 88 $447 93
$480 Nonaluminum 169
161 Other aluminum 40 131
38 135 Other nonaluminum
140 140
128 887 131
916
Production and processing
Primary aluminum 96 149 98
180 Sheet and plate 101 293
101 337 Extrusions 52 178
46 180 Other aluminum 41
122 43 121 Other nonaluminum
107 123
290 849 288
941
Total 418 1,736 419
$1,857 Average realized price
per pound
Fabricated aluminum products $1.73
$1.87 Primary aluminum $0.70
$0.83
Principal Markets (based on sales dollars)
FOURTH QUARTER
1996 1995
Packaging and Containers 44% 45%
Building and Construction 14 12
Automotive and Transportation 13 13
Distributors and Fabricators 11 12
Other 18 18
Total 100% 100%
Shipments and Net Sales
(Shipments in thousands of metric tons,
dollars in millions)
YEAR
1996
1995
Shipments Net Sales Shipments
Net Sales
Finished products and
other sales
Packaging and containers:
Aluminum 355 $1,850 368
$1,871 Nonaluminum 603
556 Other aluminum 163
552 163 580 Other nonaluminum
533 528
518 3,538 531
3,535
Production and processing
Primary aluminum 386 634 346
684 Sheet and plate 381 1,168
409 1,350 Extrusions 204
706 200 765 Other aluminum
164 481 179 494 Other
nonaluminum 445
385
1,135 3,434 1,134
3,678
Total 1,653 $6,972 1,665
$7,213
Average realized
price per pound
Fabricated aluminum products $1.79
$1.84 Primary aluminum $0.74
$0.90
Principal Markets (based on sales dollars)
YEAR
1996
1995
Packaging and Containers 44%
44% Building and Construction 13
13 Automotive and Transportation 13
13 Distributors and Fabricators 12
13 Other 18
17
Total 100%
100%
SOURCE Reynolds Metals Company /CONTACT: Lou Anne J. Nabhan of Reynolds
Metals, 804-281-2171 or, home, 804-359-2986/