AutoLend Group Announces Dismissal Of
Bankruptcy Petition
ALBUQUERQUE, N.M., March 25, 1997 - href="chap11.autolend.html">AutoLend Group, Inc. (OTC
Bulletin Board: AUTL) (the "Company") announced today
that the United States Bankruptcy Court for the District of New
Mexico (before which the Company's involuntary bankruptcy
proceedings have been pending) entered an order dismissing the
petitioning creditors' bankruptcy petition, effective April 7,
1997.
SOURCE AutoLend Group /CONTACT: Nunzio DeSantis, Chairman,
AutoLend Group, 505-768- 1000/
Minnesota Brewing Company Announces
Fourth Quarter and 1996 Results
ST. PAUL, Minn., March 25, 1997 - Minnesota Brewing Company
(Nasdaq: MBRW) announced today that net sales for the quarter
ended December 31, 1996, were $5,642,737 compared with $4,736,121
for the fourth quarter of 1995, an increase of 19.1%. The
Company's net loss for the fourth quarter of 1996 was $1,637,817
or $.48 per share compared to a net loss of $140,827 or $.04 per
share for the fourth quarter of 1995.
Net sales for the year ended December 31, 1996, decreased
20.7% to $24,875,349 from $31,383,508 in the year ended December
31, 1995. The Company incurred a net loss of $1,862,468 in 1996
compared to a net profit of $25,962 in 1995. The per share
amounts were a $.55 per share loss for 1996 compared to earnings
of $.01 per share for1995.
The increase in net sales in the fourth quarter was primarily
attributed to a 674 barrel increase in sales proprietary products
followed closely by a 641 barrel increase in export sales while
contract sales decreased 462 barrels on a quarter to quarter
comparison. The slight increase in barrelage sales in the fourth
quarter was disappointing and continued to be impacted by the
consolidation of five major distributors into two continuing
distributors. As previously reported two of our major
distributors sold their businesses in September of 1996 and a
third sold out in December of 1996. Contract sales, exclusive of
the final sales to Pete's Brewing Company in the fourth quarter
of 1995, increased 65% from 25,400 barrels to 41,957 barrels
reflecting the Company's continuing efforts to replace the volume
lost when Pete's moved their production to another brewery which
also became an investor in Pete's.
For the year ended December 31, 1996, the Company sold a total
of 429,319 barrels, a decrease of 28.6% from barrel sales of
601,632 in 1995. Proprietary brand sales were up 8.2% while
export sales were down 21.1% and contract sales were down 46.4%
reflecting the impact of the loss of the Pete's account.
Excluding the Pete's contract which accounted for 232,801 barrels
in 1995, contract sales increased 61% from 1995 to 1996 as the
Company continued to replace the Pete's volume.
The Company had a gross margin loss for the fourth quarter in
1996 compared to a gross margin profit in 1995. The fourth
quarter results were adversely affected by sales and sales orders
falling below plan as the impact from the consolidation of
distributors continued with lighter orders and inventory not
turning as fast as planned. Production levels were accordingly
reduced and therefore, significant amounts of fixed labor and
overhead costs were unabsorbed in spite of management's efforts
to reduce operating costs wherever possible. In the fourth
quarter the Company also added $150,000 to its inventory
valuation reserve to provide for aged inventory and $83,000 to
provide for the possible loss on the realization of the href="chap11.williamscott.html">William & Scott, Inc.
(WSI) contract inventory. Also in the fourth quarter the Company
provided an additional $140,000 provision for the doubtful
accounts for the Winterbrook Corporation when new management
chose not to honor the commitments of previous management to
reaffirm their contract and account payable. Further in the
fourth quarter WSI, a contract customer for whom the Company
produces "Rhino Chasers" beers, experienced financial
difficulties ultimately filing for bankruptcy protection in March
of 1997. The Company has been working with WSI and their bank to
preserve the brand and ultimately entered into a "Licensing
and Production Agreement" in February of 1997. The Company
now provides all production and administrative services for WSI
including billing, collecting and disbursing according to the
agreement. The Company has a secured interest, second to the
bank, in all of the assets of WSI including the brand. The
Company is working directly with WSI's former distributors to
maintain product flow in the marketplace. While the Company has a
substantial financial interest in WSI, the value of this
investment cannot be definitively calculated at present and thus
the Company has provideda $418,000 reserve addition in the fourth
quarter to write off the WSI account balance with the Company at
that date. Finally, in comparison, the fourth quarter of 1995
included income of $500,000 from the transition agreement with
Pete's which amount was netted against cost of goods sold. A
similar amount was not available in the fourth quarter of 1996.
The Company experienced a net loss of $1,862,468 for the year
of 1996 compared to a net profit of $25,962 for 1995. The loss
was occasioned by a 28.6% decrease in barrel sales and the impact
of the events that occurred in the fourth quarter of 1996. The
results for 1995 include the $1,000,000 transition agreement
payment from Pete's that was netted against cost of goods sold
since it was used by the Company to cover unanticipated costs
incurred in the wind down of the Pete's contract.
President, Richard McMahon said, "The events of 1996 are
disheartening but the prospects for 1997 are very encouraging.
While we had worked out a significant recovery program with
Winterbrook they chose not to honor it. Thus the Company is now
able to produce its own water products, which it will introduce
shortly, and is also able to produce water for other interested
contract parties. The problems we experienced with William &
Scott, Inc. were quite unexpected given their cash resources in
the seven figures as of December 31, 1995, their ten year history
including a four year relationship with our company along with
the fact that their management was very experienced in the beer
industry. We have been able to secure our position and are
working with the Bank under the "Licensing" agreement
to repay the bank note which is smaller than our outstanding
balance. We are taking orders and shipping product currently
under this agreement and we look forward to a successful working
partnership with the WSI distributors. Our secured position
provides us substantial opportunities for recovery in the future
after the Bank debt is satisfied.
"Our business prospects for 1997 are encouraging and
reflect significant growth in all major categories. In our
proprietary products Grain Belt Premium continues to experience
steady acceptance and growth in the marketplace. Proprietary
sales increases from our new Yellow Belly and Brewer's Cave
products are also anticipated from existing orders and market
interest. With the consolidation of our major distributors now
completed, we look for expanded focus on branded sales in 1997.
"In the contract sales area we continue to build volume
to replace the Pete's volume. With our present accounts and those
starting in 1997, significant increases are scheduled even after
adjusting contractor forecasts for possible excess optimism.
"Our export sales for 1997 are also positioned for
substantial increases given our present working relationships and
new export accounts which have just started shipping in 1997.
"While the loss in 1997 was discouraging some positive
elements exist for the future. The approximate tax loss of $1.5
million incurred in 1997 can be used without limitation of offset
future taxable income in 1997 and thereafter, thus representing a
significant benefit to the Company. In addition, because of the
reduced sales volume in 1996, the Company's option price to
purchase the plant and equipment from the Partnership, which owns
these assets, was reduced from $7.2 million at December 31, 1995
to $5.7 million at December 31, 1996.
"Our Company has survived operating during the past year
at 20 to 25% of plant capacity. The key to our future is expanded
sales and thus greater plant utilization. We welcome your
assistance in requesting a Minnesota Brewing Company product at
every opportunity and thank you for your continued support."
MINNESOTA BREWING COMPANY
Fourth Quarter and 1996 Results
The following table sets forth the comparative operations
results for the three months and for the year ended December 31,
1996 and 1995 respectively.
Three Months Ended Year Ended
December 31 December 31
1996 1995 1996 1995
Net sales $5,642,737 $4,736,121 $24,875,349
$31,383,508
Gross profit (loss) (315,233) 615,163 1,544,233
3,184,279
Operating income (loss) (1,611,267) (130,863) (1,783,827)
131,303
Net income (loss) (1,637,817) (140,827) (1,862,468)
25,962
Net income (loss)
per share $(0.48) $(0.04) $(0.55)
$0.01
Weighted average shares
outstanding 3,389,211 3,356,906 3,374,155
3,351,308
The following table sets forth the comparative balance sheet of
Minnesota Brewing Company as of December 31, 1996 and 1995.
December 31 December 31
1996 1995
Working capital $4,342,653 $6,327,913
Total assets 10,775,228 12,189,503
Current liabilities 1,923,808 1,419,591
Long term debt - net 1,753,454 1,982,428
Shareholder's equity 7,097,966 8,787,484
Minnesota Brewing Company operates a full-scale brewery in St.
Paul, Minn. where it produces its Pig's Eye, Grain Belt, Premium,
Brewer's Cave and Landmark beers and provides contract brewing and
packaging for third parties.
The Company's Common Stock is traded on the Nasdaq Small Cap
Market under the symbol "MBRW."
Minnesota Brewing Company
Liquidity Analysis
12/31/96
Working capital $4,342,000
Current ratio 3.3
Cash flows from operations:
Net loss $(1,862,000)
Noncash expenses:
-- Depreciation and amortization 712,000
-- Increase in reserves for accounts
receivable and inventory 524,000
Net change in working capital components (a) 832,000
Cash flow from Operations $206,000
(a) Primarily the result of an increase in accounts payable and
accruals along with a decrease in accounts receivable.
SOURCE Minnesota Brewing Company/CONTACT: Richard McMahon,
President of Minnesota Brewing Company, 612-228-9173/
Apogee, Inc., Reports Year End and Fourth
Quarter Results
KING OF PRUSSIA, Pa., March 25, 1997 - Apogee, Inc. (Nasdaq:
APGG) announced its earning results for the year ended and fourth
quarter ended December 31, 1996. The Company also announced the
termination of its long- term care operations and the
consolidation of a number of group practice centers in selective
markets. The Company anticipates most of these activities will be
completed by the end of April 1997. As a result of these actions,
Apogee recognized a one-time charge of $14.1 million in the
fourth quarter of 1996.
Apogee's net revenues for the year ended December 31, 1996
were $78.7 million compared to $68.3 million in 1995. Net income,
excluding restructuring and related non-recurring charges, was
$.5 million for 1996 compared to $2.9 million in 1995. Earnings
per share, excluding these one-time charges, were $0.05 in 1996
and $0.30 in 1995. Net loss after one-time charges was ($13.6)
million and ($1.37) per share in 1996 and ($2.5) million
and($.26) per share in 1995.
Net revenues for the fourth quarter of 1996 were $19.4 million
compared to $18.0 million in the fourth quarter of 1995.
Excluding one-time charges, the Company incurred a net loss of
($.7) million in the fourth quarter of 1996 compared with a net
loss of ($1.2) million in the fourth quarter 1995. Fourth quarter
net loss per share before one-time charges totaled ($0.07)
compared with ($0.12) per share in the fourth quarter 1995. Net
loss after these one-time charges was ($14.8) million and ($1.49)
per share in the fourth quarter of 1996, and ($6.5) million and
($0.67) per share in the comparable period in 1995.
The Company has renegotiated its bank credit facility, which,
combined with the anticipated cash flows from operations, should
be sufficient to meet the Company's projected cash requirements
in the coming year.
Lawrence M. Davies, President and Chief Operating Officer of
Apogee, stated, "We have completed the first phase of
stabilizing our operations, eliminating the sectors of our
business which represented minimal returns and high risk. The
Company is also in the process of closing, downsizing or
consolidating 18 group practice centers whose performance has not
met expectations, and is eliminating redundant centers in markets
where the Company has multiple locations. In addition, we have
eliminated over $1 million of corporate, regional and clinic
overhead. These cost cutting and efficiency steps will strengthen
our group practice operating base as we increase our focus on the
opportunities in the behavioral health group practice management
and managed care segments."
The Company has either closed, down sized or consolidated
centers in the mid-Atlantic states, Arizona, Southern California,
Illinois, Southern Florida and Wisconsin to eliminate
underperforming operations, over-capacity or redundancy. Apogee
also withdrew from the outpatient group practice sector in
Nashville, Tenn., Ft. Walton Beach, Fla., and Rhode Island
markets. In these markets, Apogee could no longer justify the
investment to become a leading behavioral healthcare practice
supporting managed care relative to the expected return from
these operations.
Davies stated, "As part of our strategy, we are focusing
on: increasing our position in managed care both through our
group practice operations and our Integra division; expanding our
hospital and contract services business; and pursuing strategic
payor alliances, both nationally and within local markets, to
become a key participant in integrated behavioral healthcare
delivery systems."
"We believe there are many opportunities in behavioral
healthcare as evidenced by the number of large investments
recently made in this are. We will take time now and over the
next several months to refine and advance our strategy in order
to add value for our shareholders," said John H. Foster,
Chairman of the Board.
Apogee, based in King of Prussia, Pennsylvania is one of the
leading providers of outpatient mental health services in the
United States. The Company currently operates 115 behavioral
health centers located in 13 states and the District of Columbia,
and provides services to over 1 million people under managed care
capitation arrangements.
Cautionary Statement Matters discussed above contain
forward-looking statements that are based on management's
estimates, assumptions and projections. Major factors which could
cause results to differ materially from those expected by
management include the timing and nature of reimbursement
changes, the nature of changes in laws and regulations that
govern various aspects of the Company's business, new criteria
adopted to determine medical necessity for behavioral health
service, the outcome of the Department of Justice review
previously disclosed, changes in procedures by third party
payors, management retention and unanticipated market changes.
The Company does not undertake any obligation to update the
information contained herein, which speaks only as of this date.
APOGEE, INC.
Financial
Highlights
(Dollars in thousands, except
share and per share data)
Statement of
Operations
Data
Year Ended Dec.
31, Three
Months
Ended Dec. 31,
1996 1995
1996
1995
Net revenues $78,727 $68,269
$19,354 $17,982
Gross profit $17,325 $16,774
$3,532 $2,705
Selling and
administrative
expenses $13,750 $12,284
$3,593 $3,447
Amortization of
excess of cost
over net assets
acquired $2,301 $1,814
$585 $585
Restructuring and
related non-recurring
charges $14,100 $5,600
$14,100 $5,600
Loss from
operations ($12,826)
($2,924) ($14,746)
($6,927)
Net loss ($13,594)
($2,451) ($14,817)
($6,513)
Net loss per
common share ($1.37)
($0.26) ($1.49)
($0.67)
Net income (loss)
per common share
exclusive of
restructuring and
related non-recurring
charges $0.05
$0.30 ($0.07)
($0.12)
Weighted average shares
outstanding 9,887,362
9,497,279 9,949,652 9,703,570
APOGEE, INC.
Selected Balance
Sheet Data
Dec.
31,
Dec.
31,
1
9
9
6
1
9
9
5
Current assets
$16,445 $29,886 Total
assets $97,783
$109,051 Current liabilities
$23,547
$23,305 Long-term liabilities
$9,055 $7,007
Stockholders' equity
$65,181 $78,739
SOURCE Apogee, Inc./CONTACT: Alan N. Vinick, Chief Financial
Officer of Apogee, 610-992-7670; or Jennifer Angell, investors,
ext. 240, or Michele Helm, media, ext. 225, of Noonan/Russo
Communications, 212-696-4455/
Health Management, Inc. Reports Fiscal
1997 Third Quarter Financial Results and Restates First and
Second Quarters
BUFFALO GROVE, Ill., March 25, 1997 - Health Management, Inc.
("HMI") (Nasdaq SmallCap: HMIS) yesterday filed its
Form 10-Q with the Securities and Exchange Commission for its
1997 fiscal third quarter ended January 31, 1997 and filed
amendments to its quarterly reports for the 1997 fiscal first and
second quarters.
For the third quarter, the Company reported revenues of
$39,767,175 and a net loss of $18,514,440 or $1.66 a share, after
a charge of approximately $13 million, which includes a write-off
of approximately $2.8 million in goodwill and other costs
associated with the sale of certain retail pharmacies and an
additional reserve of approximately $10 million for accounts
receivable. In the year ago quarter, HMI reported revenues of
$40,801,405 and a net loss of $9,903,644 or $1.06 a share. The
weighted average number of shares outstanding during the 1997
fiscal third quarter was 11,161,596 compared to 9,384,732 shares
outstanding during the third quarter a year ago.
For the nine month period ending January 31, 1997, HMI
reported revenues of $120,030,137 and a net loss of $31,347,877
or $3.15 a share, compared to revenues of $118,370,222 and a net
loss of $8,175,384 or $0.87 a share in the comparable nine month
period last year. The weighted average number of shares
outstanding were 9,939,574 during the nine months ended January
31, 1997 compared to 9,399,984 during the nine months ended
January 31, 1996.
As previously announced, the restatements for the fiscal
quarters ended July 31, 1996 and October 31, 1996 corrected
certain errors relating to costs of goods sold, which were
previously understated by approximately $1.85 million and
$800,000, respectively, and resulted in the reduction of net
income by approximately $1.7 million and $900,000, respectively,
net of the tax effects of such adjustments.
For the first quarter of fiscal 1997, the Company reported
revenues of $40,522,910 and a net loss of $1,288,070 or $0.14 a
share. In the first quarter of the prior year, HMI reported
revenues of $38,294,030 and net income of $1,588,738 or $0.17 a
share. The weighted average number of shares outstanding during
the 1997 fiscal first quarter was 9,328,240 compared to 9,444,919
shares outstanding during the first quarter ended July 31, 1995.
For the second quarter of fiscal 1997, the Company reported
revenues of $39,740,052 and a net loss of $11,545,367 or $1.24 a
share, after an expense of $7.2 million related to the estimated
costs of settlement of the stockholder class action litigation
and a $1.4 million charge for estimated costs associated with
overpayments from New York State Medicaid. In the second quarter
of the prior year, HMI reported revenues of $39,274,787 and net
income of $139,522 or $0.01 a share. The weighted average number
of shares outstanding during the 1997 fiscal second quarter was
9,328,887 compared to 9,405,222 shares outstanding during the
second quarter ended October 31, 1995.
In light of the restatements and third quarter financial
results, the Company and Transworld Home HealthCare, Inc.
("Transworld") are currently in discussions regarding a
renegotiated deal. If the parties are successful at renegotiating
a deal, the consideration to be paid to stockholders is not
likely to exceed $0.30 a share. The Company and Transworld are
also renegotiating with the plaintiffs in the consolidated
stockholder class action to further amend the Stipulation of
Partial Settlement to provide for a reduction in the
consideration to be paid to the plaintiff class. The current
stipulation provides for a cash settlement of $7.2 million.
The forbearance agreement relating to the Company's senior
debt has been extended to March 31, 1997. If the Company is not
successful in itsnegotiations with Transworld regarding the
merger agreement, or if Transworld should not agree to continue
to extend the forbearance agreement in short term intervals as it
has in the past, the Company is likely to seek protection under
the Federal Bankruptcy laws.
Health Management, Inc. is a national provider of integrated
pharmacy management services to patients with chronic medical
conditions and to health care professionals, drug manufacturers
and third-party payers involved in their care.
Except for historical information contained herein, the
statements made in this release constitute forward looking
statements that involve certain risks and uncertainties. Certain
factors may cause actual results to differ materially from those
contained in the forward looking statements, including those
risks detailed from time to time in the Company's reports on file
at the Securities and Exchange Commission, including the
Company's Form 10- Q for the fiscal third quarter ended January
31, 1997, the Company's Form 10-Q/A-2 for the fiscal second
quarter ended October 31, 1996 and the Company's Form 10-Q/A for
the fiscal quarter ended July 31, 1996.
HEALTH MANAGEMENT, INC.
AND SUBSIDIARIES
Consolidated Statement
of Income
First Through Third Quarters
Of Fiscal 1997
And Nine Months Ended
January 31, 1997
1997
3rd
2nd
1st
Revenues $120,030,137
$39,767,175 $39,740,052 $40,522,910
Cost of Sales 97,225,469
32,904,097 32,459,867 31,861,505
Gross Profit 22,804,668
6,863,078 7,280,185 8,661,405
% 19.0%
17.3% 18.3%
21.4%
Operating Expenses:
Selling 4,189,665
1,389,916 1,566,432 1,233,317
General &
Administrative 35,524,586
19,734,496 7,935,426 7,854,664
Unusual Charges 4,212,720
2,812,720 1,400,000 --
Total Operating
Expenses 43,926,971
23,937,132 10,901,858 9,087,981
Loss from
Operations (21,122,303)
(17,074,054) (3,621,673)
(426,576)
Settlement Costs 7,375,000
175,000 7,200,000 --
Interest Expense 2,753,932
1,290,701 723,694 739,537
Loss Before
Income Taxes (31,251,235)
(18,539,755) (11,545,367)
(1,166,113)
% (26.0)%
(46.6)% (29.1)%
(2.9)%
Income Taxes 96,642
(25,315) -- 121,957
Net Loss ($31,347,877)
($18,514,440) ($11,545,367)
($1,288,070)
% (26.1)%
(46.6)% (29.1)%
(3.2)%
Earnings Per Share
of Common Stock
- Primary ($3.15)
($1.66) ($1.24)
($0.14)
Earnings Per Share
of Common Stock
- Fully Diluted ($3.15)
($1.66) ($1.24)
($0.14)
Weighted Average
Shares Outstanding
- Primary 9,939,574
11,161,596 9,328,887 9,328,240
Weighted Average
Shares Outstanding
- Fully Diluted 9,939,574
11,161,596 9,328,887 9,333,528
SOURCE Health Management, Inc./CONTACT: Jim Nicol, President
& CEO of HMI, 847-913-2404; or Diane Perry or Joe Kist,
investors, of Edelman Financial, 212-704-8293 or 212- 704-8239/
Pinnacle Micro Announces Year-End 1996
Results; Restates Third Quarter for Non-Cash Interest Expense
IRVINE, Calif., March 25, 1997 - Pinnacle Micro, Inc. (Nasdaq:
PNCL) today reports its complete results for the year ended
December 28, 1996. Pinnacle previously announced its fourth
quarter and year end 1996 operating results on February 14, 1997.
Net loss, loss per share and the balance sheet were not released
at that time pending resolution of an open matter related to the
proper accounting for convertible debentures issued with discount
features.
As previously reported, in July 1996 the Company issued
$10,000,000 of convertible debentures which allowed conversion
into common stock at a discount from market value. Late in the
fourth quarter of 1996, the Company issued an additional
$5,000,000 of convertible debentures with discount features.
The Company understands that members of the Staff of the SEC
recently indicated that convertible debt instruments which are
convertible at a discount to market should be accounted for in
such a way that the discount is treated as additional non-cash
interest expense that is amortized over the period from the date
of issuance of the debt security until the date that the security
is first convertible.
The Company settled upon its position with respect to the
Staff's views and now announces its 1996 year end results
including net loss and loss per share. The Company's accounting
position requires the Company to restate its third quarter
results to account for the non-cash interest expense. A report on
Form 10-Q/A is being filed as of the date of this release.
Operating income and cash are not affected by this restatement.
Fourth Quarter Results
Net sales for the fourth quarter ended December 28, 1996 were
$15,895,000, compared to $19,658,000 in the fourth quarter of
1995. The operating loss (before interest and taxes) was
$3,119,000 for the fourth quarter of 1996, compared to an
operating loss of $3,481,000 for the fourth quarter of 1995. The
fourth quarter 1996 operating loss, excluding nonrecurring
charges, was $2,982,000, an improvement of $350,000 over the
third quarter of 1996 due to improved gross margin and product
mix, largely the result of Apex shipments. Net loss, including
the non-cash interest expense of $435,000, was $3,912,000, or
$.42 per share, as compared to a net loss of $2,657,000 or $.34
per share in the fourth quarter of 1995.
Fiscal Year 1996
Net sales for fiscal 1996 were $59,921,000, compared to
$81,844,000 in fiscal 1995. The decline in sales of earlier
generation RCD products and the end of life Sierra product in the
current year was partially off-set by Apex and Vertex sales. The
operating loss was $18,463,000 for l996, compared to an operating
loss of $3,274,000 for 1995. Excluding nonrecurring charges, the
operating loss for 1996 was $13,742,000 compared to $1,142,000
for 1995, attributable to lower revenue and product mix. Net loss
for fiscal 1996, including the non-cash interest expense of
$1,721,000, was $20,833,000, or $2.52 per share, as compared to a
net loss of $2,459,000 or $.31 per share in 1995.
Restated Third-Quarter Results
As a result of the restatement for the aforementioned non-cash
interest expense, of which $1,286,000 relates to the third
quarter of 1996, the net loss for the third quarter of 1996
increased from $7,807,000 to $9,093,000 and net loss per share
increased from $.98 to $1.15.
Risk Factors Associated with Forward Looking Statements The
Company's prospects depend on Apex selling according to plan and
shipments remaining on schedule. The Company's working capital
requirements will remain high. If Apex demand is significantly
below forecast there will be liquidity constraints. An adverse
change in a relationship with a strategic vendor partner could
materially affect the Company.
Pinnacle Micro, Inc. is a recognized leader in recordable CD
technology and optical storage systems for general data storage
and data intensive applications such as network storage, imaging,
desktop publishing and prepress, as well as emerging applications
such as digital audio/video editing and commercial multimedia.
Founded in 1987, Pinnacle Micro, Inc. is headquartered in Irvine,
CA with offices in North America and Europe. Pinnacle Micro can
be located on the internet at www.pinnaclemicro.com.
PINNACLE MICRO, INC.
CONDENSED STATEMENTS OF OPERATIONS
13 Weeks 13 Weeks 52 Weeks 52 Weeks
Ended Ended Ended Ended
Dec. 28, Dec. 30, Dec. 28,
Dec. 30,
1996 1995 1996 1995
Net sales $15,895,000 $19,658,000 $59,921,000 $81,844,000
Cost of sales 11,960,000 14,700,000 48,092,000 59,892,000
Gross profit 3,935,000 4,958,000 11,829,000 21,952,000
Operating expenses:
Selling, general and
administrative 5,433,000 4,993,000 19,565,000 18,116,000
Research and
development 1,484,000 1,920,000 6,006,000 4,978,000
Nonrecurring
charges 137,000 1,526,000 4,721,000 2,132,000
Total operating
expenses 7,054,000 8,439,000 30,292,000 25,226,000
Operating loss (3,119,000) (3,481,000) (18,463,000) (3,274,000)
Interest income 21,000 41,000 84,000 187,000
Interest expense (198,000) (4,000) (549,000) (35,000)
Non-cash interest expense
related to convertible
debentures (435,000) --- (1,721,000) ---
Loss before income
taxes (3,731,000) (3,444,000) (20,649,000) (3,122,000)
Income tax expense
(benefit) 181,000 (787,000) 184,000 (663,000)
Net loss $(3,912,000) $(2,657,000) $(20,833,000) $(2,459,000)
Net loss per share $(0.42) $(0.34) $(2.52) $(0.31)
Weighted average
common shares
outstanding 9,337,000 7,866,000 8,272,000 7,842,000
PINNACLE MICRO, INC.
CONDENSED BALANCE SHEETS
December 28, December 30,
1996 1995
Assets
Current assets:
Cash and cash equivalents $5,455,000 $3,606,000
Accounts receivable, net 11,726,000 11,354,000
Income taxes receivable 1,984,000 999,000
Inventories 17,714,000 11,413,000
Prepaid expenses and other
current assets 215,000 961,000
Deferred income taxes --- 1,058,000
Total current assets 37,094,000 29,391,000
Furniture and equipment, net 1,739,000 2,098,000
Deferred interest related to
convertible debentures 786,000 ---
Deferred income taxes --- 213,000
Other assets 619,000 303,000
Total assets $40,238,000 $32,005,000
Liabilities and Stockholders' Equity
Current liabilities:
Note payable $3,276,000 $---
Accounts payable 15,540,000 11,644,000
Accrued expenses 2,922,000 1,264,000
Accrued restructuring 1,421,000 ---
Payroll related liabilities 1,225,000 956,000
Total current liabilities 24,384,000 13,864,000
Convertible debentures 6,422,000 ---
Other liabilities 929,000 1,400,000
Stockholders' equity:
Common stock 10,000 8,000
Additional paid-in capital 28,551,000 16,158,000
Retained earnings
(accumulated deficit) (20,058,000) 775,000
Foreign currency translation
adjustment --- (200,000)
Total stockholders' equity 8,503,000 16,741,000
Total liabilities and
stockholders' equity $40,238,000 $32,005,O00
SOURCE Pinnacle Micro, Inc./CONTACT: Contact: Megan Morrow,
Investor Relations for Pinnacle Micro, Inc., 714-789-3114,
direct, 800-553-7070 x3l14 or irpinnaclemicro.com/