El Paso Electric Company Announces Fourth Quarter Financial Results
EL PASO, Texas, Feb. 20, 1997 - El Paso Electric Company (AMEX: EE) reported net income applicable to its common stock of
approximately $4.9 million, $.08 per share, for the quarter ended December 31, 1996. A change in estimate related to the accrued
professional fees as a result of the Company's Bankruptcy Court proceedings contributed approximately $1.7 million, $0.03 per share, net of
income tax.
EE's net income applicable to common stock for the period February 12, 1996 to December 31, 1996, was approximately $31.4 million,
$.52 per share. A non-recurring gain of $2.3 million, $0.04 per share, net of income tax, on the sale of an investment and a change in estimate
related to the accrued professional fees as a result of Bankruptcy Court proceedings of $1.7 million, $0.03 per share, net of income tax,
contributed to the performance. These results reflect the operations of EE since its emergence from bankruptcy on February 12, 1996, and the
application of "fresh- start" reporting. Therefore, the results reported are not comparable to EE's financial information reported prior to its
reorganization.
For the fourth quarter, retail kilowatt hour sales were up 4.9% and wholesale kWh sales were up 21.4% over the comparable period last
year. For the twelve months ended December 31, 1996, retail sales were up 4.4% and wholesale sales were up 6.5% compared to the same
period in 1995.
EE continues to use a portion of its available cash flow to reduce fixed asset obligations by making open market purchases of first mortgage
bonds. For the fourth quarter, EE repurchased $53.3 million of first mortgage bonds, while repurchases for the year to date totaled $118.0
million. Since December 31, 1996, an additional $21.7 million of first mortgage bonds have been repurchased.
On January 16, 1997, the Board of Directors declared a dividend of $2.85 per share on EE's 11.40% Series A Preferred Stock. This
dividend was paid on February 1, 1997, to shareholders of record as of January 21, 1997. The dividend was paid in additional shares of
Series A Preferred Stock, with fractional share dividends paid in cash.
EE is an electric utility serving approximately 279,000 retail customers in El Paso, Texas and areas of the Rio Grande Valley in West Texas
and Southern New Mexico, as well as wholesale customers in Southern California, New Mexico, Texas and Mexico.
El Paso Electric Company's results of operations for the 49-day period February 12, 1996 to March 31, 1996; the three months ended June
30, 1996, September 30, 1996 and December 31, 1996; and the period February 12, 1996 to December 31, 1996 are as follows (in
thousands except share data):
Period From
February 12 Three Months Ended
to March 31, June 30, Sept. 30, Dec. 31,
1996 1996 1996 1996
Operating revenues $ 69,907 $144,388 $ 166,656 $ 143,023
Operating expenses (55,159) (110,292) (122,293) (115,489)
Other income, net 463 844 3,041/a 2,996/b
Interest charges (13,522) (25,440) (24,634) (22,570)
Net income 1,689 9,500 22,770 7,960
Preferred stock
dividend requirements 1,552 2,897 2,977 3,062
Net income applicable
to common stock 137 6,603 19,793 4,898
Net income per
weighted average
share of common
stock $ 0.00 $ 0.11 $ 0.33 $ 0.08
Weighted average
number of common
shares outstanding 59,999,981 60,055,696/c 60,104,981/c 60,126,277/c
Period From
February 12
to Dec. 31,
1996
Operating revenues $ 523,974
Operating expenses (403,233)
Other income, net 7,344/a/b
Interest charges (86,166)
Net income 41,919
Preferred stock dividend
requirements 10,488
Net income applicable to
common stock 31,431
Net income per weighted
average share of common
stock $ 0.52
Weighted average number of
common shares outstanding 60,126,277/c
/a Includes gain on sale of an investment of approximately
$2.3 million, net of income taxes.
/b Includes a change in estimate related to the accrued bankruptcy-
related professional fees of approximately $1.7 million, net of
income taxes.
/c Includes weighted average number of restricted common shares and
common share equivalents, when dilutive, issued in accordance with
the Company's 1996 Long-Term Incentive Plan.
Quarter Ended December 31, 1996 (In thousands):
1996 1995 Increase
(Decrease)
Electric KWH Sales:
Retail Customers 1,321,187 1,259,581 4.9%
Other Utilities 427,409 352,142 21.4%
Total 1,748,596 1,611,723 8.5%
Operating Revenues:
Retail Customers $ 115,345
Other Utilities 27,678
Total $ 143,023
Capital Expenditures $ 11,414 $ 15,431
Cash Interest
Payments $ 20,089
Depreciation and
Amortization $ 22,819
Federal and State
Income Taxes (2) $ 2,815
EBITDA (3) $ 57,657
Period From February 12, 1996 to December 31, 1996 (In thousands):
1996 1995 Increase
(Decrease)
Electric KWH Sales(1):
Retail Customers 5,652,907 5,416,902 4.4%
Other Utilities 1,753,553 1,646,357 6.5%
Total 7,406,460 7,063,259 4.9%
Operating Revenues:
Retail Customers $ 427,507
Other Utilities 96,467
Total $ 523,974
Capital Expenditures $ 35,653 $ 71,803
Cash Interest
Payments $ 53,000
Depreciation and
Amortization $ 79,772
Federal and State
Income Taxes (2) $ 26,670
EBITDA(3) $ 234,527
(1) Twelve Months Ended December 31, 1996 and 1995.
(2) Federal and state income tax refunds, net of amounts paid, were
$2,857 and $2,504 for the quarter ended December 31, 1996 and for
the period from February 12, 1996 to December 31, 1996,
respectively.
(3) EBITDA should not be considered an alternative to net income as
an indicator of operating performance or an alternative to cash
flows as a measure of liquidity.
SOURCE El Paso Electric Company/CONTACT: Media: Teresa Souza, 915-543-5823, or Analysts: Leslie Beal, 915-543-2213, both of El
Paso Electric Company/
Bonneville Pacific Corporation Announces Settlement
SALT LAKE CITY, UT - Feb. 20, 1997 - Bonneville Pacific Corporation (BPCO), through its Chapter 11 Bankruptcy Trustee (Roger G.
Segal), announced today that a settlement has been reached with the last of the remaining defendants in connection with the civil action
originally entitled Segal v. Portland General, et. al., United States District Court for the District of Utah, Case No. 92-C- 364J.
The settlement is with Dinuba Energy, Inc. ("Dinuba"), an Idaho corporation, and Ronald C. Yanke ("Yanke"), of Boise, Idaho. The Trustee's
claims against Dinuba and Yanke were severed from the above referenced civil action into a separate action entitled Segal (Trustee) v.
Dinuba Energy, Inc., and Ronald C. Yanke, United States District Court for the District of Utah, Case No 92-CV-1116J. The settlement,
which has been presented on the record to the United States District Court and which is subject to documentation, provides for payment by
Dinuba and Yanke to Bonneville Pacific Corporation of Four Million Five Hundred Thousand Dollars ($4,500,000) by not later than March
20, 1997. The settlement is conditioned upon approval by the United States District Court (the Honorable Bruce S. Jenkins) and by the
United States Bankruptcy Court (the Honorable John H. Allen).
Although Dinuba and Yanke have agreed to the settlement, they each continue to deny all of the Trustee's allegations of wrongdoing or
liability.
The litigation was being prosecuted on behalf of the Trustee by the law firm of Beus, Gilbert & Morrill (Phoenix) pursuant to a contingent
fee agreement. That contingent fee agreement, which has been approved by the bankruptcy Court, provides that Beus, Gilbert & Morrill is
entitled, as a fee, after deduction of litigation costs, to thirty-three percent (33%) of any litigation recoveries received by the Trustee less
fees paid to the Trustee's local counsel, Cohne, Rappaport & Segal (Salt Lake). Any fees must be allowed (approved) by the Bankruptcy
Court.
SOURCE Bonneville Pacific Corp. /CONTACT: Roger G. Segal, 801-532-2666/
BACK YARD BURGERS REPORTS FOURTH QUARTER RESULTS
MEMPHIS, Tenn.--Feb. 20, 1997--Back Yard Burgers, Inc. (Nasdaq Small Cap:BYBI; CHX:BYB) today announced results for the fourth
quarter and fifty-two weeks ended December 28, 1996.
Total revenues for the thirteen weeks ended December 28, 1996, rose 9.5% to $6,192,000 from $5,655,000 in the fourth quarter of 1995,
reflecting primarily sales from the addition of one new Company-operated store and the increased royalty fees from the addition of eleven
franchised units in 1996. The Company reported a net loss for the quarter of $56,000 or $.01 per share compared with a net loss of
$2,966,000 or $.65 per share in the same period last year. For 1995, the fourth quarter results include a non-cash charge of $2,564,000 or
$.57 per share for impaired assets (related to the adoption of a new accounting standard), as well as a charge of $100,000 related to a note
receivable from a former modular building supplier which declared bankruptcy. Excluding the above charges, the Company reported a net
loss of $302,000 or $.07 per share for the thirteen weeks ended December 30, 1995.
For the fifty-two weeks ended December 28, 1996, total revenues rose 5.7% to $24,041,000 compared with $22,743,000 for the prior year.
Net income was $357,000 or $.08 per share compared with a net loss of $2,953,000 or $.65 per share in 1995. Excluding the charges
detailed above, the net loss for 1995 was $289,000 or $.06 per share. The improved earnings are the result of efficiencies in operating
procedures, a decrease in food costs, new franchised store openings and a reduction in depreciation and amortization stemming from the
Company's 1995 adoption of Statement of Financial Accounting Standards No. 121, "Accounting for the Impairment of Long-Lived Assets
and for Long-Lived Assets to Be Disposed Of."
Same-store sales at Company-operated stores were even for the fourth quarter and declined 4.2% for the year. On a system-wide basis,
which includes franchised units, same-store sales increased 1.3% for the fourth quarter. For the full year, system-wide same-store sales
remained slightly negative at 0.2%.
Commenting on the results, Lattimore M. Michael, Chairman and Chief Executive Officer, stated, "Although the Company posted a net loss
for the quarter, the results were significantly better than the prior year and continued the positive direction reported in the previous two
quarters. We continue to be encouraged by the improvement in earnings compared with the prior year. Same-store sales at
Company-operated units were flat during the fourth quarter, however, this breaks a string of seven quarters of negative same-store
comparisons at Company-operated units. We are continuing our focus on restaurant operations and marketing programs to restore sales
growth to acceptable levels.
"We remain committed to improving our system," Michael said. "This includes converting certain of our double drive-thru restaurants to
single drive-thru units with indoor dining facilities. The latest conversion was our restaurant in Bartlett, Tennessee, which was completed on
January 20, 1997. We are moving forward with plans to convert additional double drive-thru restaurants to the dine-in/drive-thru format.
Our strategy is to utilize this delivery system as our norm for the future. The units which have undergone this conversion have experienced an
increase in sales almost immediately. We remain committed to strengthening our support and assistance to our franchisees to help them
improve their systems, and we encourage their expansion."
During the fourth quarter of 1996, one new franchised restaurant opened in Paducah, Kentucky, the first store in that state. Also, one new
Company-operated restaurant opened in Benton, Arkansas. In other actions, one franchised restaurant was converted to a Company-operated
store and one Company-operated restaurant, the first Back Yard Burgers restaurant, was converted to a franchised unit.
As of December 28, 1996, the Company's restaurant system comprised 81 units, including 34 Company-operated stores and 47 franchised
stores. Subsequent to December 28, 1996, a franchised restaurant in Springfield, Missouri, closed, leaving one Back Yard Burgers unit
there. Additionally, in January 1997, an underperforming Company-operated restaurant was closed at no material cost to the Company.
Back Yard Burgers operates and franchises quick-service restaurants in Memphis, Little Rock, Nashville and other markets across 16 states.
The Company features gourmet hamburgers and chicken sandwiches, name-brand condiments and beverages as well as hand-dipped
milkshakes, fresh-squeezed lemonade and fresh-baked cobblers.
BACK YARD BURGERS, INC.
Unaudited Financial Highlights
13 Weeks Ended 52 Weeks Ended
12/28/96 12/30/95 12/28/96 12/30/95
Restaurant sales $5,718,000 $5,294,000 $22,281,000
$21,196,000
Total revenues 6,192,000 5,655,000 24,041,000
22,743,000
Income (loss)
before income
taxes (56,000) (3,101,000) 357,000
(3,060,000)
Income tax provision - (135,000)
- (107,000)
Net income (loss) $ (56,000) $(2,966,000) $ 357,000
$(2,953,000)
Earnings (loss)
per share $ (.01) $ (.65) $ .08 $
(.65)
Weighted average
shares
outstanding 4,549,000 4,534,000 4,543,000
4,533,000
CONTACT: Back Yard Burgers Inc., Memphis Stephen J. King, 901/367-0888
BROADWAY & SEYMOUR REPORTS FOURTH QUARTER AND YEAR END 1996 RESULTS
CHARLOTTE, N.C.--Feb. 20, 1997--Broadway & Seymour, Inc. (NASDAQ:BSIS) reported today, for the three months ended December
31, 1996, net income of $1.1 million, or $0.13 per share, as compared with a net loss of $16.7 million, or $1.84 per share, for the three
months ended December 31, 1995. The Company also reported a net loss for the year ended December 31, 1996 of $2.2 million, or $0.25
per share, on revenue of $89.4 million as compared with a net loss of $11.4 million, or $1.26 per share, on revenue of $114.7 million for the
year ended December 31, 1995.
Commenting on the results, David A. Finley, Executive Vice President and Chief Financial Officer, said, "We are encouraged by the results
of the fourth quarter of 1996. At an operational level, the Company broke even during the fourth quarter, a significant improvement over the
previous four quarters, reflecting the results of our restructuring and the sale of non-core businesses. Net income of $0.13 per share for the
fourth quarter reflects a gain from the sale of the Company's Corbel subsidiary to Sungard, completed in November 1996, and continuing
income from the sale of the Company's Asset Management Group to Fidelity Investments, completed in May 1996. Further, the balance sheet
at December 31, 1996 reflects a strong financial position with substantial working capital, liquidity and no bank debt."
Alan Stanford, Chairman and Chief Executive Officer, said, "We have successfully completed our transformation and are experiencing
strong customer interest and acceptance of our focused solutions in our chosen markets. We're also hard at work to achieve our objectives of
customer satisfaction, performance improvement and being the best employment choice for our people."
At its Board of Directors meeting also held today, Steven S. Elbaum was elected director to replace John A. "Jack" Tate, a director since
1986, who retired. Mr. Elbaum, 48, is Chairman and Chief Executive Officer of Superior TeleCom, Inc. and The Alpine Group. Previously
he was a partner of Gifford, Woody, Palmer & Serles, Esq. in New York.
Mr. Stanford stated, "We are pleased to have Mr. Elbaum join our Board. His experience and wisdom will be invaluable to the future
success of Broadway & Seymour. Jack Tate has been a long and faithful contributor to Broadway & Seymour. We will sincerely miss his
participation and leadership."
Broadway & Seymour is an industry-specialized software and services company providing integrated, information technology-enabled
business solutions for the financial services and professional services markets. Its focused capabilities and people position Broadway &
Seymour as a leading provider of rapidly implemented systems, technologies and processes to assist its customers in achieving success.
Broadway & Seymour, Inc.
Consolidated Balance Sheet
(In thousands)
Dec. 31, Dec. 31,
1996 1995
Assets
Current assets:
Cash and cash equivalents $15,010 $2,053
Receivables 25,706 28,233
Income tax receivable -- 2,100
Inventories 890 417
Other current assets 5,725 6,315
Total current assets 47,331 39,118
Property & equipment, net 6,291 9,299
Software costs 4,748 9,865
Intangible assets 7,346 24,578
Other assets 758 385
$66,474 $83,245
Liabilities and Stockholders' Equity
Current liabilities:
Notes payable and current
portion of debt $473 $6,263
Accounts payable, trade 5,836 6,408
Accrued compensation 2,615 2,796
Estimated liabilities for
contract losses 2,922 5,246
Other accrued liabilities 4,554 5,079
Deferred revenue 12,476 12,561
Income taxes payable 2,548 275
Total current liabilities 31,424 38,628
Long-term debt 138 1,327
Deferred tax liability 2,557 7,096
Other liabilities 165 3,757
Stockholders' equity:
Common stock 90 88
Paid-in capital 36,276 34,277
Retained deficit (3,684) (1,436)
32,682 32,929
Less - Treasury stock at cost (492) (492)
Total stockholders' equity 32,190 32,437
$66,474 $83,245
CONTACT: Broadway & Seymour, Inc. David A. Finley or Lorin E. Brigden, 800-274-9287 email: lorin.brigden@bsis.com
Imo Reports Losses For Fourth Quarter And Full Year 1996; Credit Agreement Amended
LAWRENCEVILLE, N.J., Feb. 20, 1997 - Imo Industries Inc. (NYSE: IMD) today reported a net loss of $32.9 million or $1.92 a share on
sales of $114.1 million in the fourth quarter of 1996, compared with a net loss of $8 million or 47 cents a share on sales of $111.3 million in
the fourth quarter of the previous year.
For the year ended December 31, 1996, Imo had a net loss of $58.4 million or $3.41 a share on sales of $468.6 million. In 1995, Imo had net
income of $29.7 million or $1.74 per share on sales of $472.4 million for the year.
Both the fourth quarter and the full year results were negatively impacted by charges related to the previously announced withdrawal from
sale of Roltra-Morse, the Company's Italian subsidiary. Imo withdrew Roltra-Morse from divestiture in November 1996, because threats
made by an unsuccessful bidder made it impossible for the Company to receive fair value for the business. Imo has filed a lawsuit to resolve
the matter. The Company has reclassified Roltra-Morse as a continuing operation and restated the prior year results to reflect this change.
Roltra-Morse had an operating loss before interest, taxes and minority interest of $10.2 million for the fourth quarter of 1996 and an $8.9
million loss for the year, compared to income of $6.3 million for the full year 1995. The 1996 loss corresponds to a decrease in sales for the
year of $18.9 million or 19%, reflecting the decline in Fiat auto sales in Italy, the major market for the auto components produced by
Roltra-Morse. In addition, the 1996 loss includes $6.2 million in restructuring charges and write-off of goodwill. These restructuring
measures will reduce operating expenses, improve the effectiveness of engineering resources and produce cost savings in 1997.
In addition, 1996 results were severely impacted by $27.1 million in other charges necessitated by the withdrawal from sale of
Roltra-Morse, including a $17.1 million charge to reflect the expected realizable values of other assets approved for sale in replacement of
Roltra-Morse and the reversal of $10 million of favorable tax benefits associated with the planned Roltra-Morse divestiture.
The 1996 results also reflect charges of $8.1 million related to previously sold discontinued operations and $8.5 million related to the
Company's debt refinancing in May 1996. "Despite these disappointing results at Roltra-Morse, the underlying foundation of Imo's business
remains solid," Imo Chairman and CEO Donald K. Farrar said. "Imo's four other core businesses - Pumps, Power Transmission,
Instrumentation and Morse Controls - produced strong earnings and cash flow for the year, with segment operating income totaling $36.5
million, up 10% over fiscal 1995. Sales for the four units totaled $388.4 million, a 4% increase over 1995. Bookings and backlog also
continue strong," he said.
"This year, we will begin to see positive results from actions taken during 1996, particularly from the restructuring investments we have
made in Italy, Germany, the U.K. and at Warren Pumps in the U.S. We expect 1997 to be a profitable year for Imo," Farrar said. Farrar also
said that Imo had reached agreement with its senior lenders to amend the financial covenants of its senior debt agreement, which extends
through the year 2003. All previous defaults have been waived. Under terms of the amendment, Imo will sell approximately $50 million of
non-core assets, about half of which is unused real estate, and use the proceeds from these sales to reduce senior debt.
Approximately $25 million of the $50 million of assets to be sold are now either under contract for sale or in the final stages of negotiation.
As a part of this program, Imo sold the property formerly occupied by its Baird subsidiary in Bedford, MA for approximately $5 million on
December 31, 1996.
Pumps
Segment operating income of $2.3 million in the fourth quarter was up 40% over 1995's comparable period, on an 11% increase in sales
revenue to $27.5 million for the quarter. Results were aided somewhat by the operations of Imo Pompes SA, a French licensee acquired last
year. The outlook for the Company's pump business remains bullish, driven by a global increase in capital spending in power generation and
crude oil processing. Commercial marine sales have also been strong in Europe.
Power Transmission
Fourth quarter sales and earnings were about the same as last year's comparable period. Sales were off 6% for the year as a whole. The
Boston Gear order rate is holding up, but the dollar value per order has slipped slightly, indicating that distributors are becoming more
cautious about taking on inventory. Boston has successfully launched two compact new AC variable speed drives for controlling electric
motors from 1/6-to-1-horsepower, a range that covers 40% of the total market for packaged drives in North America. Designed primarily for
use on pumps and ventilator fans, the new "micro" inverter has more features and a lower price than competitive units.
Instrumentation
Total sales of $19.9 million were up 7% for the fourth quarter compared to last year's fourth quarter, and segment operating income
improved as well. The North American operation posted a remarkable fourth quarter, with sales up nearly 25% and segment operating
income up almost 50% over the comparable period of 1995. However, these results were offset by poor sales and profitability in Europe for
the fourth quarter. The new management team at Gems' European operation is beginning to show improved results, particularly in relation to
solving the chronic problem of delayed shipments from the U.K. facility.
Morse Controls
Sales of $25.7 million for the fourth quarter were up 6% over last year's comparable period. Segment operating income totaled $1.2 million,
compared to a $1.9 million loss in last year's fourth quarter. Bookings were also strong compared with last year's fourth quarter. Segment
operating income in Europe was up significantly on a modest increase in sales due primarily to improvements at the unit's operation in
Germany, which was restructured last year to consolidate facilities and reduce costs. Late in the year, Morse secured several important new
OEM contracts to supply equipment for Yamaha personal watercraft in the U.S., J. I. Case farm tractors in Europe and the U.S., and Massey
Fergus on farm equipment in France.
Roltra-Morse
Sales of $18.6 million for the quarter were 13% below last year's comparable period. For the year as a whole, sales were off by 19%.
Economic and political uncertainty and reduced government spending has depressed auto sales volumes in Italy, Roltra-Morse's major
market, and the strong lira has made exports more expensive. Consumers delayed their purchases in the final quarter in anticipation of
government incentives to car buyers, which were announced in January and are expected to boost sales in 1997. Roltra has now expanded its
manufacturing operations into Poland, Brazil and Turkey to supply auto components to Fiat and other automakers, while maintaining its
leading supplier role in Italy. The popular new mid-size Fiat Marea, launched in 1996, is fitted with Roltra-Morse window regulators and
seat latches, as well as accelerator, clutch and brake cables. During the year, new business was also secured from a number of other
European automakers, including Opel, Saab, Porsche, Rover and Rolls Royce.
Imo Industries is a diversified manufacturer of pumps, fluid sensors, power transmission products, remote control systems, and automotive
components, with operations worldwide.
IMO INDUSTRIES INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(Amounts in thousands, except per share data)
Three Months
Ended December 31
(Unaudited)
1996 1995
Net Sales (a) $ 114,147 $ 111,336
Gross Profit 31,595 28,919
Segment Operating Income (Loss) (a)(b) (3,699) 2,222
Income (Loss) From Continuing Operations
Before Income Taxes, Minority Interest and
Extraordinary Item (a)(b) (31,616) (14,068)
Income Taxes (a)(c) 806 (16,548)
Minority Interest (a) (270) (762)
Income (Loss) From Continuing Operations
Before Extraordinary Item (32,152) 3,242
Discontinued Operations, Net of Taxes: (a)(d)
Estimated Gain (Loss) on Disposal (793) (11,238)
Extraordinary Item (e) --- ---
Net Income (Loss) $ (32,945) $ (7,996)
Earnings Per Share:
Continuing Operations
Before Extraordinary Item $ (1.87) $ 0.19
Discontinued Operations $ (0.05) $ (0.66)
Extraordinary Item $ --- $ ---
Net Income (Loss) $ (1.92) $ (0.47)
Average Shares Outstanding 17,124 17,083
See attached notes.
IMO INDUSTRIES INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(Amounts in thousands, except per share data)
Twelve Months
Ended December 31
(Unaudited)
1996 1995
Net Sales (a) $ 468,645 $ 472,367
Gross Profit 132,628 131,898
Segment Operating Income (Loss) (a)(b) 27,965 39,272
Income (Loss) From Continuing Operations
Before Income Taxes, Minority Interest and
Extraordinary Item (a)(b) (28,368) (2,114)
Income Taxes (a)(c) 13,700 (13,918)
Minority Interest (a) (295) (725)
Income (Loss) From Continuing Operations
Before Extraordinary Item (41,773) 12,529
Discontinued Operations, Net of Taxes: (a)(d)
Estimated Gain (Loss) on Disposal (8,142) 21,625
Extraordinary Item (e) (8,455) (4,444)
Net Income (Loss) $ (58,370) $ 29,710
Earnings Per Share:
Continuing Operations
Before Extraordinary Item $ (2.44) $ 0.73
Discontinued Operations $ (0.48) $ 1.27
Extraordinary Item $ (0.49) $ (0.26)
Net Income (Loss) $ (3.41) $ 1.74
Average Shares Outstanding 17,100 17,049
See attached notes.
IMO INDUSTRIES INC. AND SUBSIDIARIES
Segment Information and Financial Highlights
Excludes Discontinued Operations
(Dollars in thousands)
Three Months
Ended December 31
(Unaudited)
1996 1995
Net Sales: (a)
Power Transmission $ 22,396 $ 22,439
Pumps 27,540 24,839
Instrumentation 19,868 18,604
Morse Controls 25,716 24,158
Roltra-Morse 18,627 21,296
Total Net Sales 114,147 111,336
Segment Operating Income : (a)(b)
Power Transmission 2,207 2,191
Pumps 2,291 1,637
Instrumentation 362 220
Morse Controls 1,210 (1,863)
Roltra-Morse (9,769) 37
Total Segment Operating Income (3,699) 2,222
Equity in Income (Loss) of
Unconsolidated Companies (495) 25
Corporate Expense (b) (19,123) (8,677)
Net Interest Expense (d) (8,299) (7,638)
Income (Loss) From Continuing Operations
Before Income Taxes, Minority Interest and
Extraordinary Item (a)(b)$ (31,616) $ (14,068)
Memo:
Unusual Items Included Above: (b)
Instrumentation $ 890 $ 896
Morse Controls 300 1,494
Roltra-Morse 6,243 1,188
Subtotal 7,433 3,578
Corporate Expense 17,140 6,630
Total Unusual Items $ 24,573 $ 10,208
See attached notes.
Three Months
Ended December 31
(Unaudited)
1996 1995
Memo:
Income Before Interest, Taxes, Depreciation
and Amortization (EBITDA):
Income (Loss) From Continuing Operations
Before Income Taxes, Minority Interest and
Extraordinary Item $ (31,616) $ (14,068)
Add Back: Interest Expense (d) 8,824 8,173
Depreciation and Amortization 4,856 4,448
EBITDA (17,936) (1,447)
Add Back: Unusual Items (b) 24,573 10,208
EBITDA (Excluding Unusual Items) $ 6,637 $ 8,761
Bookings: (a)
Power Transmission $ 20,144 $ 21,065
Pumps 22,361 19,541
Instrumentation 18,185 19,175
Morse Controls 27,028 25,848
Roltra-Morse 18,148 24,966
Total $ 105,866 $ 110,595
See attached notes.
IMO INDUSTRIES INC. AND SUBSIDIARIES
Segment Information and Financial Highlights
Excludes Discontinued Operations
(Dollars in thousands)
Twelve Months
Ended December 31
(Unaudited)
1996 1995
Net Sales: (a)
Power Transmission $ 89,456 $ 95,075
Pumps 107,567 94,375
Instrumentation 78,911 76,113
Morse Controls 112,488 107,664
Roltra-Morse 80,223 99,140
Total Net Sales 468,645 472,367
Segment Operating Income : (a)(b)
Power Transmission 8,965 11,348
Pumps 11,538 9,884
Instrumentation 7,373 6,746
Morse Controls 8,581 5,292
Roltra-Morse (8,492) 6,002
Total Segment Operating Income 27,965 39,272
Equity in Income (Loss) of
Unconsolidated Companies (552) 302
Corporate Expense (b) (23,988) (12,454)
Net Interest Expense (d) (31,793) (29,234)
Income (Loss) From Continuing Operations
Before Income Taxes, Minority Interest and
Extraordinary Item (a)(b)$ (28,368) $ (2,114)
Memo:
Unusual Items Included Above: (b)
Instrumentation $ 890 $ 896
Morse Controls 300 1,494
Roltra-Morse 6,243 1,188
Subtotal 7,433 3,578
Corporate Expense 17,140 6,630
Total Unusual Items $ 24,573 $ 10,208
See attached notes.
Twelve Months
Ended December 31
(Unaudited)
1996 1995
Memo:
Income Before Interest, Taxes, Depreciation
and Amortization (EBITDA):
Income (Loss) From Continuing Operations
Before Income Taxes, Minority Interest and
Extraordinary Item $ (28,368) $ (2,114)
Add Back: Interest Expense (d) 33,317 31,463
Depreciation and Amortization 18,601 18,024
EBITDA 23,550 47,373
Add Back: Unusual Items (b) 24,573 10,208
EBITDA (Excluding Unusual Items) $ 48,123 $ 57,581
Bookings: (a)
Power Transmission $ 88,682 $ 93,998
Pumps 105,500 94,458
Instrumentation 78,932 80,004
Morse Controls 111,896 106,728
Roltra-Morse 77,163 99,442
Total $ 462,173 $ 474,630
Backlog $ 103,926 $ 110,398
See attached notes.
(a) As shown on the Segment Information and Financial Highlights, the Company's Continuing Operations are comprised of the Power
Transmission, Pumps, Instrumentation, Morse Controls, and Roltra-Morse business segments.
On November 8, 1996, the Company announced that it is withdrawing its Roltra-Morse business from its divestiture program because threats
made by one of the bidders has made it impossible for the Company to receive fair value for the business. Due to the withdrawal of
Roltra-Morse from potential sale, the Company has reclassified prior year results to reflect Roltra-Morse as a continuing operation. The
Company had been accounting for its Roltra- Morse business as a discontinued operation since its plan to sell the operation was announced
on February 7, 1996.
The Company sold substantially all of its Electro-Optical Systems business segment and its Turbomachinery business segment in 1995.
These business segments have been accounted for as discontinued operations and, accordingly, their operations are shown in the Condensed
Consolidated Statements of Income as Discontinued Operations.
(b) The twelve months ended December 31, 1996 include unusual charges of $24.6 million. These charges include $4.6 million related to the
restructuring and cost reduction programs within certain of the Company's operating units ($.3 million included in the Morse Controls
segment, $.9 million included in the Instrumentation segment and $3.4 million included in the Roltra-Morse segment), $2.8 million related to
the impairment of certain long-lived assets included in the Roltra-Morse segment, and $17.1 million related to the write-down of certain
businesses being offered for sale and certain non-operating real estate being held for sale to current fair market value included in Corporate
expense.
The three and twelve month periods ended December 31, 1995, include unusual charges of $10.2 million. These charges include provisions
of $5.2 million related to the restructuring and cost reduction programs within certain of the Company's operating units and corporate
headquarters ($1.5 million included in the Morse Controls segment, $.9 million included in the Instrumentation segment, $1.2 million
included in the Roltra-Morse segment and $1.6 million included in Corporate Expense), and a $5.0 million write-down of certain
non-operating real estate being held for sale to current fair market value included in Corporate expense.
(c) The 1996 and 1995 tax expense for continuing operations represents a provision for foreign and state taxes. The Company is utilizing
existing U.S. net operating loss carryforwards on its domestic earnings.
Included in the 1996 state and foreign tax provision for the twelve month period ended December 31, 1996 is the $10 million reversal of a
favorable tax benefit. Offsetting the 1995 foreign and state tax provision in the three and twelve month periods ended December 31, 1995, is
a benefit of $17.0 million, representing a reduction in the deferred tax valuation allowance against U.S. net operating loss carryforwards.
The valuation allowance was recorded in 1993 against deferred tax assets in accordance with FASB Statement No. 109. The Company is
recognizing these benefits only as reassessment demonstrates that it is more likely than not that they will be realized.
(d) Interest amounts included in income from continuing operations exclude interest allocated to the Discontinued Operations of $.5 million
for the three months ended December 31, 1996 and 1995, respectively, and $1.8 million and $5.0 million for the twelve months ended
December 31, 1996 and 1995, respectively. The amounts allocated are included in income from operations of discontinued operations, net of
taxes.
Amounts indicated as net are net of interest income of $.5 million for the three months ended December 31, 1996 and 1995, respectively, and
$1.5 million and $2.2 million for the twelve months ended December 31, 1996 and 1995, respectively.
(e) The twelve months ended December 31, 1996 include an extraordinary charge of $8.5 million ($.49 per share) representing the costs
incurred in connection with the early extinguishment of debt as well as the write-off of previously deferred loan costs. The twelve months
ended December 31, 1995 include an extraordinary charge of $4.4 million ($.26 per share), representing the non-cash write-off of
previously deferred loan costs in connection with the early extinguishment of debt.
SOURCE Imo Industries Inc. /CONTACT: R.A. Derr II, V.P. & Treasurer, Director, Investor Relations of Imo Industries, 609-896-7632/
Meridian Gold Inc. Reports 34% Production Increase in 1996
RENO, Nev.--Feb. 20, 1997--In 1996, Meridian Gold Inc. realized a 33 percent year-over-year increase in revenue and a 34 percent
increase in gold production mainly reflecting the first full year of production at the Beartrack mine in Idaho. The Company realized a loss for
both the fourth quarter and full year as a result of the emphasis on the exploration and development programs, as well as reserves for
one-time special charges.
In the fourth quarter, the Company reported a loss of $10.9 million or 15 cents per share compared with earnings of $7.6 million or 10 cents
per share in the same quarter last year. The fourth quarter 1996 was impacted by one-time charges of $7.6 million, while the prior year
fourth quarter benefited from the sale of Paradise Peak with a realized gain of $6.2 million. Production totaled 55,000 ounces in the quarter
versus 63,000 ounces in the fourth quarter of 1995.
Gold production in 1996 totaled 202,000 ounces with Beartrack producing 109,000 ounces and the Jerritt Canyon mine, in Nevada,
producing 93,000 ounces for the Company. Beartrack's 1996 production represents the largest annual production of any single gold mine in
Idaho's history.
Meridian Gold stated at the time of the secondary offering in July 1996 that its emphasis would be on generating significant long-term growth
through an aggressive exploration and development program. The Company did not expect to generate earnings in the short-term. Earnings
for 1996 reflect these goals, as the exploration program of $13.4 million and one-time special charges of $7.6 million contributed to losses
of $15.9 million, or 22 cents per share versus earnings of $2.3 million or 3 cents per share in 1995.
Late in the fourth quarter of 1996, a new closure cost estimate was developed by an outside engineering firm to complete reclamation of the
Royal Mountain King mine in California. Based on the new estimate, the Company increased its reclamation reserve by $5.6 million,
reflecting increasingly stringent environmental regulations, changing project conditions, and higher physical works costs. In December 1996,
Meridian Gold was notified that a $2 million promissory note receivable, associated with the sale of the Paradise Peak mine, in Nevada,
would not be paid when due by Arimetco, Inc., which declared bankruptcy under Chapter 11 in 1996.
Meridian Gold's balance sheet remains strong, with cash resources of almost $83 million at year-end to support its growth plans. Cash flow
from operations was $14 million in 1996.
The aggressive exploration program in 1996 continued to improve the long-term growth opportunities of Meridian Gold. At El Penon, in
Region 3 of northern Chile (see attached map(1)) Meridian controls 230 square miles of exploration concessions at an elevation of only
5,900 feet above sea level and 25 miles off the Pan American Highway. As previously announced in November, Meridian Gold outlined a
geological resource of 1.2 million ounces of gold and 28.7 million silver ounces in three separate deposits at Quebrada Orito, Discovery
Wash, and Cerro Martillo (see attached map(1)). Exploration drilling in 1996 concentrated at the 6200 foot long Quebrada Orito zone, the
largest of the three deposits.
Late 1996 drilling continued to be successful in extending mineralization at Quebrada Orito along strike to both the north and the south,
where the new Orito Norte and Orito Sur zones have been identified. The Orito Sur zone is a major extension at least 3,280 feet in length and
is still open to the south and at depth. Within this continuous north-south structure, gold-silver mineralization occurs in a major quartz vein
and breccia zone that is similar to the previously identified mineralization at Quebrada Orito. At Orito Sur, mineralization occurs over true
widths of 10 to 75 feet, with an approximate true width of 50 feet. The zone dips to the west approximately 75 degrees and has a vertical
extent of at least 500 feet. Drilling has not yet defined the zones' ultimate depth.
The attached map details the new Orito Sur zone with the surface projection of mineralization, drill hole number, and surface projection of
the drill hole trace. Mineralized intervals listed on the drill hole summary below are not true widths.
A full El Penon resource update is in progress and will be released later in March. Current drilling on the property is supporting the ongoing
Kvaerner Davy feasibility study. Exploration drilling is slated to start in March.
Preliminary feasibility on the Quebrado Orito and Cerro Martillo zones indicates that they could be mined by both open pit and underground
methods, while Discovery Wash and Orito Sur could be mined underground. Spending of $11 million is planned for El Penon in 1997. Six
million dollars will be spent to expand the resource, $3 million to complete the underground investigation of the Quebrada Orito mineralized
zone, and $2 million to complete the feasibility study with the engineering firm of Kvaerner Davy. A production decision is planned by
year-end.
Hole No. Angle Interval Intercept Gold Silver
(Degrees) (feet) (feet) (opt) (opt)
PQ216 -55 610-630 20 0.180 0.70
PQ220 -50 538-597 59 0.176 1.30
PQ221 -65 669-781 112 0.135 0.70
PQ223 -50 558-590 32 0.134 2.30
PQ224 -70 210-223 13 0.101 0.80
PQ227 -70 610-682 72 0.140 1.10
PQ228 -70 682-787 105 0.190 1.10
PQ229 -55 518-538 20 0.170 1.20
PQ230 -75 518-636 118 0.220 6.60
PQ231 -75 682-787 105 0.198 2.50
PQ232 -70 630-643 13 0.150 2.10
PQ240 -75 518-545 27 0.200 5.80
617-663 46 0.116 2.60
PQ242 -75 518-643 125 0.630 18.00
669-735 66 0.140 3.30
PQ243 -65 373-446 73 0.090 1.60
PQ245 -70 446-492 46 0.180 5.30
PQ251 -75 905-958 53 0.520 4.90
PQ253 -75 899-1004 105 0.330 4.40
PQ254 -75 1030-1050 20 1.130 25.50
Hole PQ254 was the last hole of the program.
Meridian Gold Inc. is a proven exploration oriented gold producer, well financed and led by a strong management team committed to
growth. Currently, annual production is 200,000 ounces of gold from two producing properties: Beartrack in Idaho (100% owned) and
Jerritt Canyon (30% owned) in Nevada. At year-end 1995, the Company had reserves of 1.5 million ounces of gold. In addition, Meridian
holds an active inventory of exploration properties in Chile and the United States.
Meridian was formed in 1996 and is the successor to the business of FMC Gold Company, formerly a 80% owned subsidiary of FMC
Corporation. The common shares of Meridian are traded on the Toronto Stock Exchange (MNG) and the New York Stock Exchange (MDG).
Financial statements and a map of El Penon are attached(1).
(1) For a fax copy of the map please call 800/866-4736.
Meridian Gold Inc.
Consolidated Statements of Operations
(Unaudited and in millions, except per share data)
(Unaudited) (Unaudited)
Three Months Twelve Months
Ended December 31 Ended December 31
1996 1995 1996 1995
Sales $ 20.0 $ 24.2 $ 76.2 $ 57.4
Costs and expenses
Operating expenses 17.6 9.4 56.1 29.9
Depreciation, depletion
& amortization 5.3 8.0 21.1 21.3
Exploration costs 5.7 1.8 13.4 10.9
Selling, general and
administrative
expenses 3.4 1.1 6.4 5.1
Total costs and expenses 32.0 20.3 97.0 67.2
Income (loss) before
interest and taxes (12.0) 3.9 (20.8) (9.8)
Gain on sale of assets -- 1.7 -- 1.7
Interest income 1.1 1.3 4.9 5.9
Income (loss) before
income taxes (10.9) 6.9 (15.9) (2.2)
Provision for income
taxes -- (0.7) -- (4.5)
Net income (loss) $ (10.9) $ 7.6 $ (15.9) $ 2.3
Loss per common share $ (0.15) $ 0.10 $ (0.22) $ 0.03
Number of common shares
used in earnings per
share computations 73.6 73.5 73.6 73.5
Meridian Gold Inc.
Operating Data (Unaudited)
Three Months Twelve Months
Ended December 31 Ended December 31
1996 1995 1996 1995
Beartrack Mine
Gold production -
Heap leach (ounces) 31,229 36,426 108,599 49,134
Tons mined (thousands):
Ore 760 1,688 4,324 4,150
Waste 1,175 1,899 4,394 3,753
Total 1,935 3,587 8,718 7,903
Average heap leach
grade (ounce/ton) 0.026 0.033 0.026 0.034
Total cost of
production/ounce $249 $247 $285 $260
Cash cost of
production/ounce $197 $151 $190 $166
Jerritt Canyon Joint Venture
Gold production (Meridian Gold 30 % share ounces):
Milling 23,641 26,493 92,429 96,823
Heap leach 122 257 565 1,096
Total 23,763 26,750 92,994 97,919
Tons mined (thousands):
Ore 370 399 1,589 2,050
Waste 7,081 4,038 16,772 21,185
Total 7,452 4,437 18,362 23,235
Mill tons processed
(thousands) 698 780 2,668 2,947
Average mill ore grade
(ounces/ton) 0.129 0.131 0.131 0.129
Mill recoveries 87.4% 86.3% 87.5% 86.1%
Total cost of
production/ounce $377 $468 $425 $431
Cash cost of
production/ounce $259 $284 $297 $250
Paradise Peak (Discontinued in 1995)
Gold production
- Heap leach -- 125 -- 3,633
Total cost of
production/ounce $ -- $ -- $ -- $ 155
Total
Ounces of gold produced 54,992 63,298 201,593 150,686
Ounces of gold sold 51,782 62,806 197,193 149,759
Average realized
price/ounce $392 $396 $392 $389
Average cash cost of
production $224 $206 $239 $221
CONTACT: Meridian Gold Inc. Wayne M. Humbert, 702/827-7130 702/827-7133 (FAX)
Tandy Corporation Reports Fourth Quarter and Full Year 1996 Results
FORT WORTH, Texas, Feb. 20, 1997 - Tandy Corporation (NYSE: TAN) announced today that for the quarter ended December 31, 1996
sales and operating revenues were $2,050,796,000, slightly lower than the $2,087,468,000 realized in the comparable prior year period. In
the quarter ending December 31, 1996 the Company achieved income before charges of $1.01 per average share outstanding compared to
$1.40 per share in the same quarter last year. The previously announced charges were $3.40 per share resulting in a net loss for the quarter
of $2.39 per share. Tandy earned net income of $1.39 per share for the quarter ended December 31, 1995.
For the year ended December 31, 1996 sales increased 8% to $6,285,486,000 from $5,839,067,000 during calendar year 1995. For the
calendar year, Tandy reported income before charges and adoption of FAS 121 of $2.20 per share compared to income of $3.13 per share
during the comparable prior year period. Charges recorded in 1996 were $3.84 per share resulting in a net loss per share of $1.64. The loss
compares to net income per share of $3.12 for the twelve months of calendar 1995.
Below is a table outlining the effect on earnings per share of the restructuring and other charges and adoption of FAS 121 which were
recorded throughout calendar 1996.
Quarter Ending Year Ending
Earnings Per Share December 31, December 31,
1996 1995 1996 1995
Net income (loss) $(2.39) $ 1.39 $(1.64) $ 3.12
Restructuring and other
charges - 4th Quarter 3.40 0.01 3.31 0.01
Restructuring and other
charges - 2nd Quarter -- -- 0.26 --
Adoption of FAS 121 -
1st quarter -- -- 0.27 --
Income before charges $ 1.01 $ 1.40 $ 2.20 $ 3.13
"Calendar 1996 represented a very difficult year for the entire consumer electronics industry and a major re-engineering year for Tandy. Our
strategy for 1997 is focused on major initiatives at RadioShack and Computer City. Our financial strategy is focused on maximization of cash
flow to support our business initiatives and support our share repurchase program to enhance shareholder value," stated John V. Roach,
Chairman and Chief Executive Officer.
Tandy Corporation, one of the la rgest retailers of consumer electronics, sells its products through approximately 6,800 RadioShack(SM)
and 92 Computer City(R) outlets. Statements made in this announcement which are forward- looking statements involve risks and
uncertainties including, but not limited to, economic conditions, volatility of securities markets, product demand, competitive pricing,
availability of products and other risks indicated in Company filings with the Securities and Exchange Commission.
TANDY CORPORATION AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
(In thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
1996 1995 1996 1995
Net sales and
operating revenues $2,050,796 $2,087,468 $6,285,486 $5,839,067
Cost of products sold 1,478,289 1,384,170 4,263,056 3,764,884
Gross profit 572,507 703,298 2,022,430 2,074,183
Expenses:
Selling, general and
administrative 530,751 525,653 1,761,067 1,646,436
Depreciation and
amortization 28,921 24,935 108,643 91,990
Provision for
restructuring cost 136,583 1,100 162,083 1,100
Impairment of long-lived
assets 86,771 -- 112,804 --
Total expenses 783,026 551,688 2,144,597 1,739,526
Income (loss) before
interest and
income taxes (210,519) 151,610 (122,167) 334,657
Interest income 2,932 4,618 12,983 42,322
Interest expense (11,340) (11,003) (36,404) (33,706)
Total (8,408) (6,385) (23,421) 8,616
Income (loss) before
income taxes (218,927) 145,225 (145,588) 343,273
Provision for
income taxes (81,255) 55,051 (54,017) 131,299
Net income (loss) (137,672) 90,174 (91,571) 211,974
Preferred dividends 1,544 1,606 6,319 6,537
Net income (loss)
available to
common shareholders $ (139,216) $ 86,568 $ (97,890) $ 205,437
Net income (loss)
available per
average common
and common
equivalent share $ (2.39) $ 1.39 $ (1.64) $ 3.12
Average common and
common equivalent
shares outstanding 58,211 63,717 59,832 65,928
Dividends declared per
common share $ 0.20 $ 0.20 $ 0.60 $ 0.74
TANDY CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
(In thousands)
December 31, December 31,
1996 1995
Cash $ 121,492 $ 143,498
Accounts Receivable, net 227,172 320,588
Inventories 1,420,496 1,511,984
Other Current Assets 170,590 72,175
Total Current Assets 1,939,750 2,048,245
Property, Plant and Equipment, net 545,639 577,720
Other Assets, net of accumulated
amortization 98,019 96,098
Total Assets $2,583,408 $2,722,063
Short-Term Debt $ 258,030 $ 189,861
Accounts Payable 404,845 365,131
Accrued Expenses 425,259 321,939
Income Taxes Payable 105,340 82,978
Total Current Liabilities 1,193,474 959,909
Long-Term Debt and Capital Leases 104,281 140,813
Other Non-Current Liabilities 20,810 20,006
Total Stockholders' Equity 1,264,843 1,601,335
Total Liabilities and Equity $2,583,408 $2,722,063
SOURCE Tandy Corporation/CONTACT: Martin O. Moad, Vice President, Investor Relations of Tandy Corporation, 817-390-3730/
Wickes Lumber Reports Significant Improvement in Fourth Quarter and Full Year Net Income
VERNON HILLS, Ill., Feb. 20, 1997 - Wickes Lumber Company (Nasdaq: WIKS) today reported a 400% improvement in fourth quarter
income from operations before restructuring and unusual items, compared with the fourth quarter of 1995. For the full year, income from
operations before restructuring and unusual items improved 40% over 1995. The Company reported full year net income of $0.5 million, or
$0.07 per common share, and fourth quarter net income of $2.0 million, or $0.24 per common share. Fourth quarter and full year 1996 results
exceeded analysts' expectations.
For the quarter, sales were $211.7 million, a 5.3% decline from $223.6 reported in 1995's fourth quarter. Net income of $2.0 million, or
$0.24 per common share for the quarter, compares favorably to the 1995 net loss of $15.4 million or $2.50 per share. Adjusting for
restructuring and unusual items, earnings per share of $0.36 in the 1996 fourth quarter compares favorably to the net loss of $0.41 per
common share in the 1995 quarter. The increases in earnings per share were partially offset by an increase in the average number of shares
outstanding, increasing to 8.2 million during the last half of 1996 compared to 6.2 million shares outstanding during 1995.
"We are pleased with the substantially improved operating results for the quarter," said J. Steven Wilson, Chairman, President and CEO.
"1996 was a transition year as we were challenged with the integration of Gerrity, better aligning our cost structure to our sales base,
improving our balance sheet, reducing our leverage and improving sales productivity and profitability. We were successful in all these areas
and are now better positioned to grow market share to our core customers, the residential and commercial contractors."
Total same store sales for the quarter were up slightly from the fourth quarter of 1995. Same store sales to the Company's core customer,
residential and commercial contractors, increased 2.2% from the fourth quarter of 1995. Lumber inflation contributed an estimated $6.0
million to sales in the fourth quarter.
For the quarter, the Company's income from operations before restructuring and unusual charges improved to $9.1 million, or 4.3% of sales,
compared with $1.8 million, or 0.8% of sales, reported in the fourth quarter of 1995. These results reflect the continued improvement in
reducing SG&A expense in both dollars and as a percent of sales, declining from 20.5% of sales in fourth quarter 1995 to 19.1% in fourth
quarter 1996, and a 90 basis point increase in our fourth quarter gross margin. Improved credit experience and collection of previously
reserved accounts, reduced labor costs and recoveries from insurance carriers each contributed to the SG&A improvement. In addition,
lumber inflation had an estimated impact of $0.6 million on operating income during the quarter.
The Company's equity in the loss of its affiliate engaged in lumber related operations in Russia was $0.9 million for the 1996 fourth quarter
and $3.2 million for full year 1996, which compares favorably to last year's loss of $3.5 million for the fourth quarter and the year. The 1996
losses are non-cash charges and have reduced the Company's book investment to approximately $2.0 million at year end. In the fourth
quarter, this affiliate completed the previously announced sale of 50% of its equity to two investment funds for $10.0 million.
For the year ended December 28, 1996, sales were $848.5 million, a 12.8% decline, while income from operations before restructuring and
unusual charges improved to $27.5 million, or 3.2% of sales, compared with $19.7 million, or 2.0% of sales, reported in 1995. On a same
store basis, sales declined 6.4% for the year. More importantly, sales to residential and commercial contractors declined only 1.1%. The
improvement in operating income was led by the significant improvement in SG&A expense, declining from 20.0% of sales in 1995 to
19.1% in 1996, partially offset by continued gross margin compression. The Company reported net income for the year of $0.5 million, or
$0.07 per common share compared with a net loss of $15.6 million or $2.54 per common share in 1995. Adjusting for the effect of the
restructuring and unusual items in both years, the Company reported earnings of $0.40 per common share in 1996, compared with a loss per
common share of $0.44 in 1995.
Additionally, the Company was able to reduce its debt by $29 million, or 14.1%, during 1996 as a result of better working capital
management and the liquidation of non productive assets.
Mr. Wilson added, "Substantial effort and energy by all our associates led to these improved results. We have clearly demonstrated we can
control costs and manage our balance sheet. Our efforts are now being directed to improving our top line and market share growth to achieve
the operating leverage which will further improve our results. We are focusing significant attention on the top residential builders in the
United States and the benefits of a business partnership with Wickes Lumber Company."
Headquartered in Vernon Hills, IL, Wickes Lumber Company is one of the largest suppliers of building materials in the United States.
Serving primarily building and remodeling professionals, the Company distributes materials nationally and internationally, and operates
building material centers in 24 states in the Midwest, Northeast and South. The Company's component manufacturing facilities produce
pre-hung door units, window assemblies, roof and floor trusses and framed wall panels. Wickes Lumber's website, WickesNet, offers a full
range of business and information service at http://www.wickes.com.
WICKES LUMBER COMPANY AND SUBSIDIARIES
UNAUDITED CONSOLIDATED SUMMARY STATEMENTS OF OPERATIONS
(in thousands, except per share data)
13 Weeks 13 Weeks 52 Weeks 52 Weeks
Ended Ended Ended Ended
12/28/96 12/30/95 12/28/96 12/30/95
Net sales $211,679 $223,629 $848,535 $972,612
Cost of Sales 163,812 175,173 659,072 751,800
Gross Profit 47,867 48,456 189,463 220,812
Selling, general and
administrative expense 40,345 45,834 162,329 194,629
Depreciation, goodwill and
trademark amortization 1,301 1,401 5,367 5,882
Provision for doubtful accounts (30) 892 1,067 6,482
Other operating income(b) (2,897) (1,447) (6,796) (5,831)
Total 38,719 46,680 161,967 201,162
Income from operations
before restructuring
and unusual charges 9,148 1,776 27,496 19,650
Restructuring and
unusual charges(a) 745 17,798 745 17,798
Income (loss) from operations 8,403 (16,022) 26,751 1,852
Interest expense 5,103 5,985 21,750 24,351
Equity in loss of Riverside
International, Inc. unit(c) 931 3,543 3,183 3,543
Income (loss) before
income taxes 2,369 (25,550) 1,818 (26,042)
Provision (benefit) for income taxes:
Current 111 1,485 1,010 1,353
Deferred 300 (11,796) 300 (11,796)
Minority interest -- 159 -- --
Net income (loss) $1,958 ($15,398) $508 ($15,599)
Per share data:
Fully taxed net earnings
(loss) before unusual items(d) $0.36 ($0.41) $0.40 ($0.44)
Restructuring and unusual
charges (0.06) (1.74) (0.06) (1.75)
Equity in loss of
Riverside International,
Inc. unit (0.07) (0.35) (0.27) (0.35)
Net income (loss) per
common share $0.24 ($2.50) $0.07 ($2.54)
Weighted average
common and common
equivalent shares
outstanding 8,169,875 6,157,964 7,219,754 6,151,771
EBITDA(e) 10,449 3,177 32,863 25,532
(a) These charges relate to the restructuring plan announced in the
fourth quarter of 1995, which included centers closed on
December 29,
1995, other restructuring during 1996 and certain unusual items.
(b) In the 1996 fourth quarter, a $560 thousand gain on the
sale of real
estate held for sale is included in other income.
(c) The accounting for our Riverside International unit was changed to
the equity method in the fourth quarter of 1995 to reflect the
transaction with NIS Regional Fund and Russia Partners Company.
(d) The per share unusual items data, reported below fully taxed net
earnings (loss) before unusual items, is net of income taxes at a
39.7% rate in 1995 and a 39.07% rate in 1996.
(e) EBITDA is defined as income from operations before
restructuring and
unusual charges plus depreciation, goodwill and trademark
amortization.
WICKES LUMBER COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands except share data)
Dec. 28, Dec. 30,
1996 1995
ASSETS
Current assets:
Cash $1,933 $87
Accounts receivable, less allowance for doubtful
accounts of $4,289 in 1996 and $8,208 in 1995 71,210 81,792
Inventory 100,672 110,639
Deferred tax asset 10,331
15,237 (a)
Prepaid expenses 915 1,051
Total current assets 185,061 208,806
Property, plant and equipment, net 50,171 56,545
Trademark (net of accumulated amortization
of $10,052 in 1996 and $9,830 in 1995) 6,948 7,170
Deferred tax asset 15,525
10,919 (a)
Other assets (net of accumulated amortization
of $6,487 in 1996 and $4,464 in 1995) 15,137 19,075
Total $272,842 $302,515
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $133 $424
Accounts payable 41,039 41,457
Accrued liabilities 27,118 37,972
Total current liabilities 68,290 79,853
Long-term debt, less current maturities 176,376 205,221
Other long-term liabilities 2,677 2,312
Commitments and contigencies
Common stockholders' equity:
Common stock (8,159,273 issued and outstanding
in 1996 and 6,143,473 shares issued and
outstanding in 1995) 82 61
Additional paid-in capital 86,613 76,772
Accumulated deficit (61,196) (61,704)
Total 25,499 15,129
Total common stockholders' equity $272,842 $302,515
(a) Certain reclassifications have been made to the 1995 Balance
Sheet to
more appropriately classify deferred tax assets between current and
long-term.
SOURCE Wickes Lumber Company /CONTACT: George A. Bajalia, Chief Financial Officer, of Wickes Lumber Company, 847-367-3400,
or Jeff Wescott of The Financial Relations Board, 312-640-6732/