Toy Biz Reports Fourth Quarter and Year End
Results
NEW YORK, NY - March 14, 1997 - Toy Biz, Inc. (NYSE: TBZ)
today reported results for the fourth quarter and year ended
December 31, 1996. For the quarter, net sales were $54.0 million
and there was a net loss of $2.5 million or $0.09 per share,
compared to net sales of $79.4 million and net income of $11.7
million or $0.43 per share in the fourth quarter a year ago. For
the year, net sales were $221.6 million and net income was $16.7
million or $0.61 per share, compared to net sales of $196.4
million and net income of $28.4 million or $1.05 per share for
the year ended December 31, 1995. The Company said fourth quarter
results were negatively affected principally by a softer than
anticipated Christmas season.
A significant portion of the Company's revenue is derived from
sales of products based on characters owned by
agreement with Marvel. Marvel filed for relief under Chapter 11
of the Bankruptcy Code on December 27, 1996. The Company believes
that sales of the Company's products have been and will continue
to be adversely affected by concerns among retailers as to the
impact of the bankruptcy of Marvel on the future of Toy Biz and
the Marvel brand.
On March 7, 1997, Andrews Group Incorporated informed the
Company that it did not expect to complete its previously
announced merger with the Company because it had terminated its
agreement to purchase new shares of Marvel as part of Marvel's
reorganization plan. Also on that date, Marvel announced that it
had received a proposal for an equity investment from the Marvel
Holding company's Bondholders' Committee as part of a new Plan of
Reorganization and that Marvel had authorized its management to
work with the bondholders to conduct their due diligence and
develop definitive documentation. Representatives of the
bondholders have publicly stated that they might seek to have
Marvel reject the agreement under which the Company manufactures
and sells products based on Marvel characters. The Company
believes that Marvel has no right to reject the agreement as a
matter of law and the Company would vigorously oppose any such
action.
Toy Biz, Inc. designs, markets and distributes new and
traditional toys in the boys, girls, preschool, activity and
electronic toy categories featuring major entertainment and
consumer brand name properties under agreements with Marvel,
NASCAR, Coleman, Disney, Gerber, Henson, MCA/Universal and Warner
Bros.
Forward Looking Statements: Except for historical information
contained herein, the statements in this news release regarding
the Company's products, licensing relationships and growth plans
are forward-looking statements that are dependent upon certain
risks and uncertainties, including those relating to the outcome
of the Marvel bankruptcy, the level of media exposure or the
popularity of the Company's characters and trademarks, consumer
acceptance of the Company's new product introductions, the
Company's dependence on Chinese manufacturers, U.S. trade
relations with China, changing consumer preferences, production
delays or shortfalls and general economic conditions. Those and
other risks and uncertainties are described in the Company's
filings with the Securities and Exchange Commission, including
the Company's Annual Report on Form 10K and Quarterly Reports on
Form 10Q.
TOY BIZ, INC.
Condensed Consolidated
Statements of Income
(Dollars in thousands, except
per share data)
Three
Months
Twelve
Months
Ended
December 31,
Ended
December
31,
1996
1995
1996
1995
Net sales $54,004
$79,385 $221,624
$196,395
Cost of sales 33,334
36,524 116,455
88,397
Gross profit 20,670
42,861 105,169
107,998
Operating expenses:
Selling , general
and administrative 17,486
17,611 61,876
48,234
Depreciation and
Amortization 7,448
6,084 16,078
12,750
Total operating expenses 24,934
23,695 77,954
60,984
Operating income (4,264)
19,166 27,215
47,014
Interest income, net 102
168 596
560
Income before provision
for income taxes (4,162)
19,334 27,811
47,574
Provision for income
taxes (1,665)
7,594 11,124
19,172
Net income ($2,497)
$11,740 $16,687
$28,402
Earnings per share ($0.09)
$0.43 $0.61
$1.05
Weighted average number of common and
common equivalent shares outstanding,
(In thousands) 27,761
27,199 27,366
27,115
SOURCE Toy Biz, Inc./CONTACT: Diane Perry, 212-704-8293, or
Joseph Kist, 212-704-8239, both of Edelman Financial/
Elsinore Corp. reorganization effective
Feb. 28, 1997; company reports fourth-quarter and year-end
results
LAS VEGAS, NV -March 14, 1997--Elsinore
Corp. (ASE/PSE:ELS) Friday announced the Chapter 11
reorganization of Elsinore and certain of its subsidiaries became
effective following the close of business on Feb. 28, 1997.
On Feb. 20, 1997, the Nevada Gaming authority licensed the
reorganized company's new controlling shareholder, three new
members of the reorganized company's board of directors and
Riviera Gaming Management-Elsinore Inc. (RGME), the replacement
managers of the reorganized company, all as contemplated by the
plan of reorganization.
Under the plan, the common stock outstanding prior to the
effective date was canceled and 4,929,313 shares of new common
stock were issued. 4,745,280 of those shares, or 96.3 percent of
the total outstanding, were issued to a class of the company's
bondholders.
Ten members of that class, which are entities managed by the
New York financial-services firm of Morgens, Waterfall, Vintiadis
& Co. Inc., acquired 4,646,440 shares.
Also under the plan, 77,428 new shares, or 1.6 percent of the
total outstanding, were issued to holders of the canceled stock.
An additional 70,687 shares will be issued to other creditor
groups when claims by certain members of those groups are
resolved.
Trading in Elsinore's common stock continues to be halted by
the American Stock Exchange and by the Pacific Stock Exchange.
The American Stock Exchange has informed the company that it
intends to delist the stock.
Elsinore Friday reported revenues of $15,384,000 for the
fourth quarter ended Dec. 31, 1996, compared with $13,924,000 for
the comparable period of 1995.
The company reported a net loss of $636,000, or 4 cents per
share on 15,891,793 weighted average shares outstanding, for the
fourth quarter, compared with a net loss of $29,551,000, or $1.86
per share on 15,877,849 weighted average shares outstanding, for
the fourth quarter of 1995.
For the year ended Dec. 31, 1996, the company reported
revenues of $61,199,000, compared with $56,973,000 for the same
period last year. Net loss for the 12-month period was
$1,556,000, or 10 cents per share on 15,891,793 weighted average
shares outstanding, compared with a net loss of $45,749,000, or
$2.95 per share on 15,511,983 weighted average shares
outstanding, for the same period a year ago.
Elsinore owns the Four Queens Hotel & Casino in downtown
Las Vegas, which offers 690 rooms, meeting facilities, four
restaurants, more than 1,000 slot machines and numerous
blackjack, craps and other table games.
The hotel and casino have been operated by RGME under an
interim management agreement since Aug. 12, 1996. The interim
agreement converts to a 40-month management agreement for which
RGME receives a minimum annual management fee of $1 million plus
a management fee equal to 25 percent of any increase in EBITDA in
any fiscal year in excess of $8 million.
In addition, RGME has warrants to acquire an equity position
in Elsinore.
Certain subsidiaries, including Olympia Gaming Corp. and Four
Queens Experience Corp., remain under the protection of the
Bankruptcy Court pending the outcome of certain events.
For information on Elsinore via facsimile at no cost, simply
call 800/PRO-INFO and dial company code 177.
ELSINORE CORP. AND SUBSIDIARIES
(Debtor in Possession)
Condensed Consolidated Statements
of Operations
(Dollars in thousands, except
per-share data)
Three months
ended
Year ended
Dec. 31,
Dec.
31,
1996
1995
1996
1995
(unaudited
)
Net revenues:
Casino $ 9,899
$ 9,718 $ 42,300 $ 39,964 Hotel
2,883 2,608
11,202 9,564 Food and beverage
2,807 3,165 12,373 12,136
Interest and other 1,029
111 1,502 1,983 Promotional
allowances (1,234) (1,678)
(6,178) (6,674)
15,384
13,924
61,199
56,973
Costs and expenses:
Casino 4,131
4,628 17,694 19,705 Hotel
2,341 1,993
8,482 7,897 Food and beverage
1,815 1,544 7,088 6,010
Taxes and licenses 1,488
1,609 6,592 6,627 Selling, general
and
administrative 2,999
2,931 10,331
11,385
Rents 1,011
930 4,055 3,955 Provision for
losses on
loans receivable from
Native American Tribes 0
19,340
-- 23,598
Casino development costs 0
237 -- 2,323 Depreciation and
amortization 979
915 3,816
3,948
Interest (contractual
interest for 1996 and
1995 of $7,661 and $9,212,
respectively) 1,179
996 2,505
8,006
Interest, prior-period
income tax obligation 0
(326)
-- 590
15,943
34,797
60,563
94,044
Income (loss) before
reorganization items (559)
(20,873) 636
(37,071)
Reorganization items (77)
(8,678) (2,192) (8,678)
Net loss $ (636)
$(29,551) $ (1,556) $(45,749)
Loss per common share $ (0.04)
$ (1.86) $ (0.10) $ (2.95) Weighted
average number of
common shares outstanding 15,891,793
15,877,849 15,891,793
15,511,983
-0-
Consolidated Balance Sheet
Data
Dec.
31,
1996
1995
Current assets $
9,554 $ 5,578 Total assets
42,627 37,101 Current
liabilities 9,428
6,182 Long-term debt
69,422 69,927 Shareholders' equity
(deficit) $ (40,710) $ (43,441)
CONTACT: Elsinore Corp., Las Vegas Cynthia A. Fremont,
702/387-5115 or The Financial Relations Board Inc., Los Angeles
Daniel Saks, 310/442-0599
Grant Geophysical Reaches Agreement for
$30 Million of New Equity
HOUSTON, TX - March 14, 1997 - Grant
Geophysical announced today that it has entered into a letter
of intent with Elliott Associates L.P. of New York to fund and
jointly sponsor a plan of reorganization for Grant.
The letter of intent calls for Elliott Associates to invest up
to $30 million in new equity capital in Grant and to provide $2
million in expanded credit facilities to augment the growth of
Grant's international operations. The investments are to be made
in connection with a reorganization plan for Grant. Pending
consummation of the reorganization plan, Elliott will make
available an additional $2.5 million in loans to supplement
Grant's existing working capital.
The letter of intent is subject to the negotiation and
execution of definitive agreements and to the approval by the
United States Bankruptcy Court for the District of Delaware where
Grant's Chapter 11 case is pending. A motion to approve the
letter of intent is being filed with the court and is expected to
be acted upon by the end of March.
Assuming approval of the letter of intent, Grant and Elliott
will file a jointly proposed reorganization plan providing for
specific recoveries to Grant's secured and unsecured creditors.
Secured creditors would be paid in full in a combination of cash
and/or new promissory notes. Unsecured creditors will be able to
select from a menu of recovery options that include cash and
stock, promissory notes or credits exchangeable for Grant
services performed after consummation of the plan. In addition,
the plan will provide for a $33 million Rights Offering, $30
million of which will be guaranteed by Elliott. Under the Rights
Offering, the Company's unsecured creditors and its preferred and
common shareholders will be granted the right to purchase shares
of Grant's new common stock at the same price per share as
Elliott's investment. The plan will also provide an option for
Company employees to participate in the Rights Offering subject
to any required Securities and Exchange Commission clearances.
The new shares will be offered to employees on the same basis as
those offered to creditors, shareholders and Elliott. If the plan
is consummated, Elliott Associates will own a minimum of 51%
Grant's common stock.
Consummation of the plan is subject to several conditions,
including approval by the court and the vote of the Company's
creditors and shareholders. The Company expects to file the plan
by May 15, 1997.
Grant also announced several write-offs and preliminary,
unaudited operating results for the year and quarter ended
December 31, 1996. For the full year, the Company recorded
revenue of $103 million compared with $92 million for the
previous year. The net loss for the year, including writedowns of
impaired assets and reserves for losses on previous activities
and operations closed or slated to be sold in connection with
the Company's reorganization, totaled $74 million. This
compares with net income, before requirements for preferred
dividends, of $3 million for the year ended December 31, 1995.
The 1996 loss includes the recognition of extraordinary expenses,
writedowns and reserves totaling $52 million. These expenses,
writedowns and reserves result from a comprehensive evaluation of
the Company's assets and operations and relate primarily to the
Company's discontinuance or sale of operations in Peru and
Nigeria, the establishment of adequate reserves for accounts
determined to be uncollectible, write-off of the Company's
investment in a proprietary data acquisition system and certain
other equipment not expected to generate future cash flows
adequate to support current carrying values, severance costs for
employees terminated during the year, accelerated amortization of
prepaid and deferred costs associated with certain ongoing
operations and costs associated with the Company's
reorganization.
For the quarter ended December 31, 1996 on a preliminary,
unaudited basis, the Company recorded revenue of $22 million
compared with $28 million for the same quarter of the previous
year. The net loss for the quarter, including the extraordinary
expenses, reserves and writedowns mentioned above totaled $49
million. This compares with net income of $326,000 for the
quarter ended December 31, 1995. The 1996 loss includes one time
charges totaling $36 million. Final results for the year and
quarter will be released in connection with the filing of the
Company's annual report on Form 10K currently expected on or
about March 30.
The Company said it believes it has taken the actions
necessary to refocus its operations to achieve positive operating
cash flow in coming periods. The actions taken include the
termination of unprofitable operations in Peru, the sale of its
Nigerian business which incurred losses in 1996, a significant
reduction of overhead costs in its Houston headquarters and the
restructuring of agreements with both suppliers and customers to
more accurately reflect the costs and risks associated with
projects undertaken by Grant. Coupled with the new equity capital
expected to be derived from completion of the reorganization
plan, these actions are expected to position the Company to
compete effectively and profitably in the strengthening worldwide
market for geophysical services.
This release contains forward-looking statements relating to
such matters as anticipated financial performance, business
prospects, potential reorganization plans and similar matters.
The Private Securities Litigation Reform Act of 1995 provides a
safe harbor for forward-looking statements. In order to comply
with the terms of the safe harbor, the Company notes that a
variety of factors could cause the Company's actual results and
experience to differ materially from the anticipated results or
other expectations expressed in the Company's forward-looking
statements. The risks and uncertainties that may affect the
operations, performance development and results of the Company's
business include weather conditions, outcome of negotiations and
approval of reorganization plans, demand for seismic data
acquisition services in general and specifically for the
Company's services, and other risks factors identified in the
Company's Annual Report on Form 10K and its Quarterly Reports on
10Q.
Grant Geophysical, Inc. and its subsidiaries and affiliates
provide land and transition zone seismic services in the United
States, Latin America and the Far East. The Company employs
approximately 3,000 people in its worldwide operations.
SOURCE Grant Geophysical, Inc. /CONTACT: Larry E. Lenig, Jr.,
President, or Michael P. Keirnan, Chief Financial Officer, both
of Grant Geophysical, Inc., 713-398- 9503/