Gantos, Inc. Reports Fiscal Year 1996
Results; Company Posts Third Consecutive Year of Profitability
GRAND RAPIDS, Mich., March 19, 1997 -
announced its third consecutive year of profitability.
For the fourth quarter ended February 1, 1997, net income was
$1.7 million, or $0.22 per share, for the thirteen-week period,
compared to net income of $3.1 million, or $0.41 per share, for
the fourteen-week period a year ago.
For the fiscal year ended February 1, 1997, net income was
$2.3 million, or $0.31 per share, for the fifty-two week period,
compared to $3.7 million, or $0.55 per share, for the fifty-three
week period a year ago. The fiscal 1995 results were positively
impacted by non-recurring gains of $0.9 million.
Commenting on the results, Gantos President and Chief
Executive Officer Arlene H. Stern said, "We are pleased that
1996 was our third consecutive profitable year. However, we are
disappointed with the overall results for 1996, especially our
sales results for the Christmas season. We are encouraged that
despite the lower sales, the Company maintained its margin
discipline and continued strong controls on expenses. During
1996, our new management team made the decision to refine our
merchandise assortments to better focus on satisfying our core
customer. While these refinements hindered our performance for
the short-term, we believe our proactive strategy will better
position our stores in a highly competitive marketplace."
Stern continued, "Our Company's balance sheet is
improved, as demonstrated by a 200 percent increase in our cash
position and a nearly $0.5 million reduction in our long-term
debt. We are also pleased with a new amendment to our revolving
credit agreement with Fleet Capital which extends the term of the
agreement by two years through March 2000, eliminates certain
financial covenants and generally liberalizes those which
remain."
Gantos, Inc., is a specialty retailer of quality women's
apparel and accessories. Headquartered in Grand Rapids, the
Company currently operates 114 stores in 23 states.
GANTOS, INC.
CONDENSED STATEMENTS OF INCOME
(Amounts in thousands, except per share and store data)
Unaudited
Fourth Quarter Ended Year-to-Date Ended
Feb 1, Feb 3, Feb 1,
Feb 3,
1997 1996 1997 1996
Net sales $50,476 $56,057 $184,366
$192,790
Cost of sales (including buying,
distribution and occupancy
costs) ($39,796) ($43,093) ($147,022)
($151,912)
Gross income 10,680 12,964 37,344
40,878
Selling, general and administrative
expense ($9,833) ($11,003) ($37,407)
($40,018)
Finance charge and other revenue $1,407 $1,294 $4,732
$4,472
Credit for facilities closings and
other - 944
- $944
Operating income 2,254 4,199 4,669
6,276
Interest expense ($599) ($1,057) ($2,332)
($2,278)
Income before reorganization
items and income taxes 1,655 3,142 2,337
3,998
Reorganization items:
Professional fees
- - - ($530)
Interest earned on accumulating
cash from Chapter 11
proceedings
- - - $251
Net Reorganization items
- - - (279)
Income before income taxes 1,655 3,142 2,337
3,719
Income taxes - - - -
Net income $1,655 $3,142 $2,337
$3,719
Per share amounts:
Net income per share $0.22 $0.41 $0.31
$0.55
Weighted average shares
outstanding 7,574 7,577 7,574
6,759
Stores open at end of period 114 113 114
113
GANTOS, INC.
CONDENSED BALANCE SHEETS
(Amounts in thousands)
Unaudited
Feb 1, Feb 3,
ASSETS 1997 1996
Current assets:
Cash and cash equivalents $4,346 $1,453
Accounts receivable (net) 21,973 22,619
Merchandise inventories 22,373 23,955
Prepaid expenses and other 3,171 2,851
Total current assets 51,863 50,878
Property and equipment (net) 13,995 17,532
Total assets $65,858 $68,410
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable-trade $10,749 $12,119
Accrued expenses and other 10,307 12,716
Current provision for facilities closings 1,567 2,417
Total current liabilities 22,623 27,252
Long-term debt 11,940 12,395
Shareholders' equity 31,295 28,763
Total liabilities and shareholders'
equity $65,858 $68,410
SOURCE Gantos, Inc. /CONTACT: Frederick Marx, 810-855-6777, for
Gantos/
Converse Announces Favorable Resolution
To Outstanding Litigation
NORTH READING, Mass.--March 19, 1997--Converse Inc. (NYSE:
CVE) today announced that it has settled substantially all of its
remaining claims against the former owners of
purchased in May 1995.
These settlements, some of which were previously announced,
coupled with the previously announced confirmation of the plan of
orderly liquidation in Apex's Chapter 11 bankruptcy proceedings,
will result in Converse booking a net pretax gain of $13.3
million in the first quarter of 1997. The gain arises from the
cancellation of $10.2 million of subordinated promissory notes,
warrants to purchase 1.75 million shares of Converse common stock
at $11.40 per share, $5.4 million of other contractual
obligations issued by Converse in connection with the acquisition
of Apex, as well as the receipt of $2.0 million in cash. Going
forward, the Company will save approximately $1 million per year
in interest payments which otherwise would have been paid to the
holders of the promissory notes and avoid the earnings dilution
associated with the common stock warrants.
The settlement of these claims will also result in the
dismissal of the pending federal court actions between Converse
and all former owners of Apex except for Norwood Venture Corp.
Converse continues to seek damages against Norwood Venture Corp.
for fraud under the federal securities laws in connection with
the Apex acquisition. In January 1997, Converse won a New York
state court jury award in the amount of $750,360 against Norwood
for breaches of warranties in connection with the Apex
acquisition.
Converse, the largest U.S. manufacturer of athletic footwear,
is a leading global designer, manufacturer and marketer of high
quality athletic footwear for men, women and children and is a
licensor of sports apparel, accessories and selected footwear.
The Company's products are distributed worldwide through over
9,000 athletic specialty, sporting goods, department and shoe
stores.
CONTACT: Converse Inc. Investor Contact: Donald J. Camacho
Chief Financial Officer 508/664-1100 Christine DiSanto/Jim
Cappuccio Morgen-Walke Associates 212/850-5600 or Media Contact:
Jennifer Murray V.P. Marketing Communications 508/664-1100 Stacy
Berns/Michael McMullan Morgen-Walke Associates 212/850-5600
Federal Court Awards LG&E Energy Corp. Big Rivers
Deal
LOUISVILLE, Ky., March 19, 1997 - A federal bankruptcy court
selected LG&E Energy Corp.'s (NYSE: LGE) proposal to lease
the generating assets of Big
Rivers Electric Corporation in a court ordered auction today.
Under the terms of the proposal, LG&E will lease the
approximate $1.3 billion of generating assets of the Henderson,
Ky.-based cooperative for 25 years and provide power to Big
Rivers to serve its member cooperatives and their 90,000
customers at reduced rates. The bankruptcy court established the
auction process on Feb. 19 to ensure that Big Rivers' creditors
would receive the highest possible value from the chapter 11
bankruptcy proceeding.
"This is a significant advancement for LG&E Energy in
the competitive energy market," said Roger Hale, Chairman
and Chief Executive Officer, LG&E Energy Corp. "We will
have access to approximately 1,700 megawatts of low-cost
generating capacity to serve an important new customer base and
also will enhance our strategic marketing position. LG&E
Energy shareholders can expect to see a significant accretion in
earnings beginning in 1998 as a result of this agreement."
The LG&E Energy proposal mirrors the transaction structure
outlined in Big Rivers' reorganization plan under which Big
Rivers would have leased its generating assets to Pacificorp.
However, the LG&E Energy plan provides $50 million of
additional value over the Pacificorp arrangement to Big Rivers,
its member cooperatives, customers and creditors.
LG&E Energy and Big Rivers will now complete negotiations
with creditors and customers and file a reorganization plan that
details the terms of the proposal in order to bring resolution to
the long bankruptcy process.
LG&E Energy Corp. is an industry-leading energy services
holding company headquartered in Louisville, Ky. The company has
assets and operations in retail and wholesale power and natural
gas services and marketing. It has offices, operations and
partnership projects throughout the U.S. as well as Canada,
Argentina and Spain.
Statements made in this release that state the company's or
management's intentions, expectations or predictions of the
future are forward looking statements. The company's actual
results could differ materially from those projected in the
forward looking statements, and there can be no assurance that
estimates of future results will be achieved. The company's SEC
filings, including but not limited to its Form 10-Q filed with
the SEC on November 12, 1996, and its Form 8-K filed with the SEC
on November 25, 1996, contain additional information concerning
factors that could cause actual results to differ materially form
those in the forward looking statements.
SOURCE LG&E Energy Corp. /CONTACT: Claudia Hendricks,
LG&E Energy Corp. 502-627-2506, or pager, 502-421-6905/
/LG&E Energy's press releases available through Company News
On-Call by fax 800-758-5804, ext. 515672, or at
http://www.prnewswire.com/
Clothestime announces agreement on
plan of reorganization
ANAHEIM, Calif.--March 19, 1997--
Wednesday announced that it has reached an agreement with the
official committee of unsecured creditors in its chapter 11 case
on the terms of a plan of reorganization for existing chapter 11.
David Sejpal, chairman of the board, president and chief
executive officer of Clothestime, said: "Clothestime is
gratified that we have been able to reach an agreement on the
detailed terms of a plan of reorganization. This agreement will
enable us to file a plan of reorganization by the end of the
month and start the process of emerging from chapter 11."
Sejpal added that details on the terms of the plan cannot be
made public until it is filed with the Bankruptcy Court and that
negotiations on the plan terms applicable to certain secured
creditors, including Clothestime's largest creditor, must still
be concluded.
Clothestime currently operates 331 women's apparel stores in
17 states and Puerto Rico, offering primarily in-season,
moderately- priced sportswear, dresses and accessories,
emphasizing fashion at a discount from department and specialty
stores.
CONTACT: Clothestime Inc., Anaheim Douglas L. Pereira Senior
Vice President, Chief Financial Officer 714/779-5881, Ext. 2410
Zydeco Energy Announces Grant Contract
HOUSTON, TX - March 19, 1997 - Zydeco Energy, Inc. (Nasdaq
SmallCap: ZNRG) announced today that it has signed a geophysical
contract with Grant Geophysical, Inc.
to continue its 3D survey operations over Zydeco's seismic
project located in western Cameron parish, Louisiana. The Company
expects survey operations to begin immediately and recording
operations to begin in mid-April and to conclude this summer. The
current contract requires Zydeco to pay Grant its costs plus a
fixed percentage for its services with an incentive bonus for
early completion.
The operation had been suspended in early December due to
weather conditions. Grant subsequently filed for Chapter 11
protection and reorganization under the U.S. bankruptcy statutes.
Grant is continuing its operations as it restructures its
organization.
Zydeco Energy, Inc. is an independent oil and gas exploration
company engaged in acquiring leases, drilling, and producing
reserves utilizing focused geologic concepts and advanced 3D
seismic and computer-aided exploration (CAEX) technology,
including enhanced structural and stratigraphic depth imaging and
attribute analysis. Zydeco's efforts are focused primarily in the
Louisiana Transition Zone and the Timbalier Trench.
SOURCE Zydeco Energy, Inc. /CONTACT: Mr. Edward R. Prince,
Jr., Vice Chairman of Zydeco Energy, Inc., 713-659-2222/
Oshman's Sporting Goods, Inc. announces
fourth quarter and year end results
HOUSTON, TX --March 19, 1997--Oshman's Sporting Goods, Inc.
(AMEX:OSH) announced its results for the fourth quarter and
fiscal year ended February 1, 1997.
Results for the fourth quarter, which included a restructure
charge of $13.6 million for costs related to the Company's plan
to close 53 of its traditional stores, were a net loss of $15.1
million, or $2.59 per share compared to a net profit of $4.1
million, or $.67 per share for the fourth quarter of the prior
year.
For the full fiscal year 1996, results including the
restructure charge were a net loss of $27.3 million, or $4.67 per
share compared to a net profit of $1.9 million, or $.32 per share
in fiscal 1995.
Net sales for the thirteen weeks ended February 1, 1997
decreased 4.2% to $112.3 million compared to $117.3 million for
the fourteen week period ended February 3, 1996. Comparable store
sales in the Company's SuperSports USA megastores decreased 3.1%
while same store sales in traditional stores decreased 13.2%
resulting in an 8.2% decline in overall same store sales during
the comparable thirteen week periods ending February 1, 1997 and
February 3, 1996.
Net sales for the fiscal year ended February 1, 1997 (52
weeks) increased 6.7% to $365.9 million from $342.9 million for
the fiscal year 1995 (a 53 week period). The increase in net
sales was attributable primarily to sales contributions from 12
new megastores opened in fiscal 1995 and seven opened in fiscal
1996 offset by decreased same store sales results and reduced
sales in the Company's traditional stores due to store closings.
Same store sales, on a comparable 52 week basis, in the Company's
SuperSports USA megastores declined 2.5% while same store sales
in traditional stores decreased 12.5% causing a 7.9% decline in
overall same store sales.
As previously announced, the Company intends to close 53 of
its 84 traditional stores in fiscal 1997 and recorded a
restructuring charge in the fourth quarter of fiscal 1996 to
cover leasehold and other asset write-offs, inventory
adjustments, employee costs and lease termination costs. During
fiscal 1996, these stores had sales contributions of $50.1
million and incurred direct store losses of $2.5 million.
Additionally, during fiscal 1996, the Company has already closed
25 traditional stores which contributed 17.0 million in sales and
incurred direct store losses of $2.5 million.
The Company opened seven SuperSports USA megastores in fiscal
1996 bringing the total number of megastores in operation to 31
and intends to open an additional six new megastores in 1997. The
Company's megastores contributed 64.6% of total retail sales in
fiscal 1996 compared to 50.3% in fiscal 1995.
Alvin N. Lubetkin, Chief Executive Officer, stated, "With
the closing of these stores in 1997, we virtually complete the
transformation of Oshman's into a megastore operator.
"By the end of this year we will have closed
approximately 170 stores since this difficult but necessary
process started in 1990. The effort has been more costly than
expected, as the rapid deterioration of our traditional stores
forced us to accelerate closings. During this transformation, we
will have written off $3.2 million of leasehold improvements and
fixtures and liquidated approximately $66 million of
inventory."
Mr. Lubetkin added: "The sporting goods retail
marketplace is presently overcrowded and extremely competitive. I
do believe however, that our new megastores, which presently
number 31 and will number 37 at year end, can compete effectively
in this difficult environment."
Oshman's currently operates 114 sporting goods specialty
stores, including 31 megastores, in 15 states, offering high
quality name brand and private label equipment and sportswear.
The Company's SuperSports USA megastores utilize interactive
merchandising by offering sports test-play areas including
basketball courts, batting cages, golf simulators, tennis courts
and boxing rings.
OSHMAN'S SPORTING GOODS,
INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS THREE MONTHS AND
TWELVE MONTHS ENDED FEBRUARY 1,
1997 AND FEBRUARY 3, 1996
(UNAUDITED)
(in thousands, except for per share
and store data)
THREE MONTHS
TWELVE
MONTHS
February 1, February
3, February 1,
February 3,
1997 1996
1997
1996
Net sales $ 112,301 $
117,262 $ 365,879 $ 342,889
Earnings (loss)
before income taxes $ (15,392) $
4,396 $ (27,439) $
2,352
Income taxes (299)
255 (189) 410
Net (loss) earnings $ (15,093) $
4,141 $ (27,250) $ 1,942
Earnings (loss)
per share (A) $ (2.59) $
.67 $ (4.67) $
.32
Average shares (A) 5,830
6,153 5,829 6,019
Same store sales
increase (decrease)% (B)
SuperSports USA
megastores (3.1%)
(2.6%) (2.5%)
5.0%
Traditional stores (13.2%)
(13.5%) (12.5%) (5.0%) All stores
(8.2%) (8.5%)
(7.9%) .8%
Amortization of
pre-opening costs $ 461 $
891 $ 3,459 $
1,892
Number of stores at
end of period:
Traditional stores
84 109 SuperSports USA
megastores
31 24 Total
115 133 *T (A) Loss
per share is computed on the average
number of common shares outstanding
during each period.
(B) Based on comparable 13 and 52 week
periods.
Contact Alvin N. Lubetkin for further
information.
CONTACT: Oshman's Sporting Goods, Inc. Investor Contact: Alvin
N. Lubetkin Chief Executive Officer 713/967-8200