Marvel Reports 1Q97 Results
NEW YORK, NY - May 15, 1997 - Marvel
Entertainment Group, Inc. (NYSE: MRV) announced that for the
first quarter ended March 31, 1997, net revenues were $156.7
million compared to $189.6 million with a net loss of $27.8
million or ($0.27) per share compared to a net loss of $4.4
million or ($0.04) per share. Comparisons are to the year-ago
quarter.
Compared to the year ago quarter, the Company believes that
trading card and toy revenues declined due to concerns among mass
market retailers related to the Company's Chapter 11 proceedings
and that licensing revenues declined due to similar concerns
among potential licensees. In addition, entertainment card and
sticker revenues declined due to fewer releases and lower
commercial success of third party entertainment properties.
Meanwhile, Marvel's core, hobby-oriented comic book
publishing, sports trading card and European soccer sticker
businesses performed generally in line with expectations. In
addition, Marvel's Debtor-in-Possession (DIP) financing
continues, enabling the Company to pay all employees and bills on
time and in full and maintain normal credit terms with suppliers
and licensors.
For more information, visit the Company's web sites at
http://www.marvel.comor
http://www.shareholdernews.com/mrv
MARVEL ENTERTAINMENT
GROUP, INC.
(DEBTOR-IN-POSSES
SION)
CONSOLIDATED STATEMENTS
OF OPERATIONS
(Dollars in millions, except per
share data) (unaudited)
Three
Months
Ended March
31,
1997
1996
Net revenues $156.7
$189.6
Cost of sales 104.5
113.9 Selling, general &
administrative expenses 48.5
52.3
Depreciation & amortization 4.8
4.4 Amortization of goodwill,
intangibles & deferred charges 4.3
5.5
Interest expense, net 15.6
13.7 Foreign exchange loss/(gain),
net (0.7)
0.6
Equity in net income of
unconsolidated subsidiaries
and other, net 0.1
0.1
Loss before reorganization items,
provision for income taxes,
and minority interest (20.2)
(0.7)
Reorganization items 3.4
--
Loss before provision for
income taxes &
minority interest (23.6)
(0.7)
Provision for income taxes 3.8
1.7
Loss before minority interest (27.4)
(2.4) Minority interest in earnings
of Toy Biz 0.4
2.0
Net loss ($27.8)
($4.4)
Loss per share ($0.27)
($0.04)
Number of common shares
outstanding (in millions) 101.8
101.8
Forward Looking Statements: When used in this news release,
the words "intend", "estimated",
"believe", "expect" and similar expressions
which are not historical are intended to identify forward-looking
statements that involve risks and uncertainties. Such statements
include, without limitation, Marvel's expectations as to
financial performance. In addition to factors that may be
described in the Company's Securities and Exchange Commission
filings, the following factors, among others, could cause the
Company's financial performance to differ materially from that
expressed in any forward-looking statements made by, or on behalf
of, the Company: (i) the ability of Marvel to successfully
reorganize in bankruptcy and the timing and outcome of such
bankruptcy proceedings; (ii) the ability of Marvel to continue to
draw on the debtor-in-possession ("DIP") financing and
to obtain additional DIP financing subsequent to the maturity of
its current DIP financing on June 30, 1997 or in the event of an
earlier termination of Marvel's current DIP financing; (iii)
continued weakness in the comic book market which cannot be
overcome by the Company's new editorial and production
initiatives in comic publishing; (iv) continued general weakness
in the trading card market; (v) the failure of fan interest in
baseball to return to traditional levels that existed prior to
the 1994 baseball strike, thereby negatively affecting the
Company's baseball card business; (vi) the effectiveness of the
Company's changes to its trading card and publishing
distribution; (vii) a decrease in the level of media exposure or
popularity of the Company's characters resulting in declining
revenues based on such characters; (viii) the lack of continued
commercial success of properties owned by major licensors which
have granted the Company licenses for its sports and
entertainment trading card and sticker businesses; (ix)
unanticipated costs or delays in completing projects associated
with the Company's new ventures including media, interactive
software, on-line services and theme restaurants; (x) consumer
acceptance of new product introductions, including those for
toys; and (xi) imposition of tariffs or import quotas on toy
manufacturers in China as a result of a deterioration of trade
relations between the U.S. and China.
SOURCE Marvel Entertainment Group, Inc. /CONTACT: Gary
Fishman, Investor Relations of Marvel Entertainment Group,
212-685-6890/
Titan Acquires 19 Percent of Condere
Corporation
QUINCY, Ill., May 15, 1997 - Titan Tire Corporation, a
subsidiary of Titan Wheel International, Inc. (NYSE: TWI),
announced the acquisition of 19 percent of href="chap11.condere.html">Condere Corporation, the parent
company of Fidelity Tire Manufacturing Company of Natchez,
Mississippi, effective May 14, 1997.
Condere posted sales of $120 million in 1996, but also
declared more than $8 million in losses. Condere filed Chapter 11
bankruptcy on May 13, 1997.
On May 14, the Condere Board of Directors elected Titan CEO
and President Maurice Taylor Jr. as chairman, CEO and president
of Condere Corporation, with an annual salary of one dollar.
"It is my intent to try and turn around Fidelity Tire. I
have a proven record of turning losing companies into shining
stars, but there is no doubt that Fidelity will be a real
challenge," stated Taylor. "As with any company in
bankruptcy, past practices must be overcome. For the sake of the
employees' jobs, I hope everyone pulls together to make Fidelity
a winner."
Titan Wheel International, Inc. is a global manufacturer of
mounted tire and wheel systems for off-highway equipment used in
agriculture, construction, mining, military, recreation and
grounds care. Titan has manufacturing and distribution facilities
throughout the United States and Europe.
SOURCE Titan Wheel International, Inc./CONTACT: Phillip
Stanhope, Director of Communications, of Titan, 217-221-4399/
Grossman's releases first quarter
results and balance sheets
CANTON, Mass.--May 15, 1997--
Announces court order protecting NOL's by requiring notice
before certain stock and debt trading
Grossman's Inc. (NASDAQ-GROS),
which is operating as a debtor- in-possession following its April
7, 1997 filing for Chapter 11 protection, today released its
financial statements for the quarter ended March 31, 1997.
The company also announced that it filed its Quarterly Report
on Form 10-Q with the Securities and Exchange Commission. This
Report contains a discussion of the company's financial condition
and its results of operations.
The company also announced that the U.S. Bankruptcy Court for
the District of Delaware entered an order yesterday granting
interim approval of procedures requiring prior written notice to
the company by any party or group proposing to (i) acquire shares
of the company's stock resulting in a more than 1,350,000 share
block, or (ii) acquire prepetition unsecured claims against the
company or certain of its subsidiaries resulting in a more than
$6 million block of such claims. The procedures would also
require such notice by any party or group proposing to acquire
such stock or claims if such party or group hold or are acquiring
both stock and claims. If the company objects during a 30 day
period after such notice, the transaction would become effective
only upon Court approval. A final hearing date on the procedures
has been set for June 17, 1997. The company believes that this
relief is necessary to protect its net operating loss
carryforwards (approximately $300 million at December 31, 1996),
which it believes will be critical to its ability to reorganize.
Sales from ongoing operations for the three months ended March
1997 totalled $49.4 million, 24.0% below the $65.0 million for
the same period in 1996. Comparable store sales for the three
months ended March 1997 were 29.0% below the 1996 level.
For the first quarter of 1997, the company reported a net loss
of $12.0 million, or 43 cents per share, compared to a net loss
of $54.7 million, or $2.10 per share in 1996. The 1996 loss
included a $40.2 million charge related to the closing of 60
stores.
Grossman's Inc. operates 15 stores under the name Contractors'
Warehouse in California, Indiana, Kentucky and Ohio, and 28
stores under the name Mr. 2nd's Bargain Outlet in Massachusetts,
New York and Rhode Island.
Statements contained in this release that are not based on
historical fact are "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. Important factors, beyond the company's control, that could
cause actual results to differ materially from those in the
forward-looking statements include, but are not limited to, the
need for approvals by the Bankruptcy Court, competition,
stability of customer demand, and the sufficiency of its capital
resources. Undue reliance should not be placed on these forward
looking statements, which speak only as of the date hereof. The
company undertakes no obligation to publicly release revisions to
these forward-looking statements to reflect events or
circumstances after the date hereof or to reflect the occurrence
of unanticipated events.
Grossman's Inc. press releases and public filings can be
accessed on the Internet through Business Wire's Home Page:
http;//www.businesswire.com/cnn/gros.htm
Mr. 2nd's Bargain Outlet maintains a web site for product
information, store locations and feedback: http;//www.bargain-
outlets.com
GROSSMAN'S INC.
(DEBTOR-IN-POSSESSION)
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
Three Months Ended
March 31,
------------------
1997 1996
---- ----
SALES $ 49,375 $112,981
COST OF SALES 39,358 86,481
--------- ---------
Gross Profit 10,017 26,500
OPERATING EXPENSES
Selling and administrative 20,864 38,034
Depreciation and amortization 1,022 1,849
Store closing expense - 40,150
Store preopening expense 134 361
--------- ---------
22,020 80,394
--------- ---------
OPERATING LOSS (12,003) (53,894)
OTHER EXPENSES (INCOME)
Interest expense 687 1,620
Net gain on disposals of
property - (27)
Other (669) (1,008)
--------- ---------
18 585
EQUITY IN NET LOSS OF
UNCONSOLIDATED AFFILIATE - 208
--------- ---------
LOSS BEFORE INCOME TAXES (12,021) (54,687)
PROVISION FOR INCOME TAXES - -
--------- ---------
NET LOSS $(12,021) $(54,687)
NET LOSS PER COMMON SHARE
(PRIMARY AND FULLY DILUTED) $ (0.43) $ (2.10)
WEIGHTED AVERAGE SHARES AND
EQUIVALENT SHARES OUTSTANDING
(PRIMARY AND FULLY DILUTED) 27,818 26,089
-0-
GROSSMAN'S INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)
March 31, December 31, March 31,
1997 1996 1996
--------- ------------ ---------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 4,702 $ 1,058 $
1,745
Receivables, net 4,625 10,710
20,604
Inventories 39,360 56,662
53,106
Property held for sale 11,139 15,199
4,500
Other current assets 3,265 1,559
2,852
-------- -------- --------
Total current assets 63,091 85,188
82,807
PROPERTY, PLANT AND
EQUIPMENT, NET 50,955 25,549
50,955
PROPERTY HELD FOR SALE
- - 31,294
PREPAID PENSION ASSET 9,466 9,536 -
OTHER ASSETS 2,874 3,168
1,188
-------- -------- --------
TOTAL ASSETS $100,581 $123,441 $166,244
LIABILITIES AND
STOCKHOLDERS' INVESTMENT
CURRENT LIABILITIES
Accounts payable and
accrued liabilities $ 59,520 $ 60,626 $
98,869
Revolving term note payable 21,359 30,024
-
Current portion of
long-term debt and
capital lease obligations 11,331 12,228
22,986
-------- -------- --------
Total current liabilities 92,210 102,878
121,855
REVOLVING TERM NOTE PAYABLE
- - 68
LONG-TERM DEBT AND CAPITAL
LEASE OBLIGATIONS 358 634
2,002
PENSION LIABILITY
- - 8,206
OTHER LIABILITIES 7,238 7,241
15,005
-------- -------- --------
Total Liabilities 99,806 110,753 147,136
STOCKHOLDERS' INVESTMENT 775 12,688
19,108
-------- -------- --------
TOTAL LIABILITIES AND
STOCKHOLDERS' INVESTMENT $100,581 $123,441
$166,244
CONTACT: Grossman's Inc. Steven L. Shapiro (617) 830-4020
Pudgie's Chicken Announces 1997 First
Quarter Results
UNIONDALE, N.Y., May 15, 1997 - Pudgie's
Chicken, Inc. (Nasdaq: PUDGQ), an operator of quick service,
takeout and delivery Pudgie's restaurants, announced today a loss
for the first quarter ended March 31, 1997.
The Company, which filed a petition for reorganization under
Chapter 11 of the Bankruptcy Code on September 18, 1996, incurred
a loss before reorganization items of $560,531 for the first
quarter ended March 31, 1997 and a net loss of $816,303, or $0.18
per share, as compared to a net loss of $1,220,365 or $0.28 per
share for the comparable quarter last year.
Total revenues for the 1997 fourth quarter were $1,733,948 as
compared to $2,706,409 for the same period last year. There was a
net decrease in the number of Company-owned restaurants from 26
at March 31, 1996 to 17 at March 31, 1997. The number of
franchised restaurants decreased from 36 at March 31, 1996 to 30
at March 31, 1997.
Pudgie's Chicken operates and franchises quick service
Pudgie's Famous Chicken restaurants with an emphasis on Home
Delivery that offer tasty, reasonably priced meals featuring
fresh skinless fried chicken. Pudgie's also offers barbecued
ribs, shrimp, corn on the cob, mashed potatoes, rice, salads and
other side dishes.
You can also contact Pudgie's on their Web Site
HTTP://ISON.COM/PUDGIES/
This release contains certain forward-looking statements which
involve known and unknown risks, uncertainties or other factors
not under the Company's control which may cause actual results,
performance or achievements of the Company to be materially
different from the results, performance, or other expectations
implied by these forward-looking statements. These factors
include, but are not limited to, those detailed in the Company's
periodic filings with the Securities and Exchange Commission.
PUDGIE'S CHICKEN, INC. AND SUBSIDIARIES
Debtors-in-possession
Consolidated Statements of Operations
Three Months
Ended
March 31,
(unaudited)
1997 1996
Revenue:
Restaurant sales $ 1,509,095 $ 2,442,561
Franchise and advertising
royalties 205,884 241,316
Interest income and other revenue 18,969 22,532
Total 1,733,948 2,706,409
Expenses:
Restaurant cost of sales 588,649 961,663
Restaurant operating expenses 813,320 1,468,109
Franchising costs 25,067 30,030
General and administrative 710,286 901,377
Advertising expenses 42,099 206,462
Depreciation and amortization 112,552 253,097
Interest expense 2,506 106,036
Total 2,294,479 3,926,774
Loss before reorganization
items (560,531) (1,220,365)
Reorganization items:
Loss on closing of restaurants 56,388 --
Professional fees 199,384 --
Net loss $ (816,303) $ (1,220,365)
Loss per share $ (0.18) $ (0.28)
Weighted average number of
common shares outstanding 4,488,385 4,416,836
SOURCE Pudgie's Chicken, Inc./CONTACT: Steven Wasserman,
President & CEO of Pudgie's Chicken, 516-222-8833; or Joe
Calabrese or Kerry Thalheim of The Financial Relations Board,
212-661-8030/
Today's Man Announces First Quarter
Earnings and Comparable Store Increases; Earnings Up $0.40 per
Share; Comp Store Sales Up 3.2%
MOORESTOWN, N.J., May 15, 1997 - Today's
Man, Inc. (Nasdaq: TMANQ), operating under the protection of
Chapter 11 of the U.S. Bankruptcy Code as a Debtor-In-Possession,
announced continued improvement in its financial and operational
performance with first quarter net income of $158,700, or $0.01
per share, on sales of $43.9 million and a comparable store sales
increase of 3.2 percent for the 25 superstores in operation at
the end of each quarter, respectively. For the corresponding
period last year the Company lost $4,208,700 ($0.39 per share) on
sales of $46.4 million. The results for the first quarter of 1997
also included a gain of nearly 8% in gross margin to more than
36%. The Company had 10,861,005 weighted average shares
outstanding for each quarter.
"These results are further evidence that our turnaround
plan is working and that the Company is on the right track to
file a plan of reorganization and successfully emerge from
bankruptcy protection," said Chairman and CEO David Feld.
"I commend all Today's Man associates for their continued
focus on improving sales, enhancing margins and managing
expenses, which enabled Today's Man to post its first quarterly
profit in seven quarters. Although we still have much work to do,
I am cautiously optimistic about the Company's future
prospects."
The Company's better in-stock positions, uninterrupted
merchandise flow and enhanced merchandise assortment enabled
Today's Man to operate with less promotional sales and markdowns,
which supported the dramatic improvement in gross margin for the
quarter. Today's Man also continued to focus on expense
management and achieved significant reductions in operating
expenses. The increase in net income also included an increase in
interest income of approximately $250,000 due to higher invested
balances and a reduction of reorganization expenses of
approximately $400,000.
Today's Man, Inc., which currently operates 25 menswear
superstores in the greater Philadelphia, New York and Washington
markets, is a men's apparel superstore retailer offering a wide
selection of tailored clothing, furnishings, sportswear and shoes
at everyday low prices.
Safe Harbor Statement under Private Securities Litigation
Reform Act of 1995: Certain statements in this press release
which are not historical facts, including, without limitation,
statements as to the Company's planned results for 1997 or as to
management's beliefs, expectations and opinions, are
forward-looking statements that involve risks and uncertainties
and are subject to change at any time. Certain factors,
including, without limitation the risk that the assumptions upon
which the forward-looking statements are based ultimately may
prove to be incorrect, risks associated with the Company's
Chapter 11 petition, and other risks detailed from time to time
in the Company's filings with the Securities and Exchange
Commission, including its Annual Report on Form 10-K, can cause
actual results and developments to be materially different from
those expressed or implied by such forward- looking statements.
TODAY'S MAN, INC.
Debtor-In-Possession
Consolidated Statement Of Operations
For Thirteen Weeks
Ended
May 3, 1997
May 3, 1996
Net sales $43,928,900
$46,397,400
Cost of goods sold 27,997,800
33,179,800
Gross profit 15,931,100
13,217,600
Selling, general and
administrative expenses 15,062,000
16,098,000
Income(loss) from operations 869,100
(2,880,400)
Reorganization items, net 653,700
1,285,700
Interest expense and other income, net 2,800
42,600
Income/(loss) before income tax benefit 212,600
(4,208,700)
Income tax expense 53,900
--
Net income/(loss) $158,700
$(4,208,700)
Net income/(loss) per share $0.01
$(0.39)
Weighted average shares outstanding 10,861,005
10,861,005
SOURCE Today's Man, Inc. /CONTACT: Frank E. Johnson, Executive
Vice President and C.F.O., 609-722-6380, or David Feld, Chairman
of the Board & C.E.O, 609-722-6340, both of Today's Man; or
Michael Kempner, mkempnermww.com, or Carreen Winters,
cwintersmww.com, both of MWW/Strategic Communications, Inc., 201-507-9500/