Jayhawk Acceptance Corporation Reports
First Quarter 1997 Financial Results
DALLAS, TX - May 20, 1997 - Jayhawk
Acceptance Corporation (Nasdaq: JACCQ) today reported a net
loss of $5,819,000, or $0.24 per share, for the three months
ended March 31, 1997, compared to net income of $2,044,000 or
$0.10 per share for the same quarter in 1996. Revenues for the
first quarter of 1997 were $14,051,000, versus $10,139,000 for
the same quarter of 1996.
Results of operations for the first quarter reflect
approximately $1.4 million of revenue and approximately $2.2
million of losses attributable to Jayhawk Medical Acceptance's
health care program. As of March 31, 1997, Jayhawk Medical had
enrolled 1,455 physicians and booked $13,747,000 principal amount
of loans.
Except for the historical information contained herein, the
matters discussed in this press release are forward-looking
statements that are dependent upon a number of risks and
uncertainties that could cause actual results to differ
materially from those in the forward-looking statements. These
risks and uncertainties include the Company's actual rate of
growth, delinquency and default rates with respect to the
contracts included in the Company's portfolio, the impact of
competitive services and products, changes in market conditions,
acceptance of the Company's products and programs, the impact of
regulation or litigation, the management of growth and the other
risk factors identified in the Company's SEC filings, including
under the caption "Risk Factors" in its most recent
Registration Statement on Form S-1. The Company does not intend
to provide updated information about the matters referred to in
these forward-looking statements, other than in the context of
management's discussion and analysis in the Company's quarterly
and annual reports on Form 10-Q and 10-K.
Jayhawk Acceptance Corporation is a specialized financial
services company headquartered in Dallas, Texas.
JAYHAWK ACCEPTANCE CORPORATION
(in thousands, except per share data)
(Unaudited)
CONSOLIDATED INCOME STATEMENTS
Three Months Ended
March 31,
1997 1996
REVENUE:
Finance charges $9,203 $8,161
Dealer and provider fees 3,299 1,715
Service contracts 1,549 263
14,051 10,139
COSTS AND EXPENSES:
Sales and marketing 3,772 1,778
Operating 6,325 2,991
Provision for credit losses 5,423 814
Provision for service contract
claims 642 197
Interest 2,708 1,217
18,870 6,997
Income (loss) before reorganization
expenses (4,819) 3,142
Reorganization expenses 1,000 --
Income (loss) before income taxes (5,819) 3,142
Income taxes expense -- 1,098
Net income (loss) $(5,819) $2,044
Net income (loss) per share $(0.24) $0.10
Weighted average common and common
equivalent shares outstanding 23,924 20,785
CONSOLIDATED BALANCE SHEETS
March 31, March 31,
1997 1996
ASSETS
Cash and cash equivalents $3,759 $383
Restricted cash 4,334 11,826
Installment contracts receivable 333,312 230,306
Allowance for credit losses (77,654) (3,594)
Installment contracts
receivable, net 255,658 226,712
Furniture, fixtures, and
equipment, net 11,482 5,923
Income taxes receivable 22 1,488
Other assets 4,161 1,941
Total assets $279,416 $248,273
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Accounts payable and accrued
liabilities $6,690 $6,255
Deferred dealer and provider
fees, net 2,652 2,483
Dealer and provider
holdbacks, net 129,594 108,336
Unearned service contract fees 1,799 1,206
Notes payable 104,306 79,567
Total liabilities 245,041 197,837
Shareholders' Equity:
Common stock 240 205
Additional paid-in capital 88,779 47,273
Retained earnings (accumulated
deficit) (54,644) 2,958
Total shareholders' equity 34,375 50,436
Total liabilities and
shareholders' equity $279,416 $248,273
SOURCE Jayhawk Acceptance Corporation/CONTACT: Virginia L.
Cleveland of Jayhawk Acceptance Corporation, 214-754-1016/
50-OFF Stores Announces Successful
Results of Rights Offering and Extension
SAN ANTONIO, TX - May 20, 1997 - San Antonio based
currently operating in a Chapter 11 Bankruptcy proceeding,
announced today that it had received subscriptions for the
required minimum with respect to its Rights Offering to
stockholders of record on March 21, 1997 of not less than 30,500
Units at $100.00 per Unit. Each Unit is comprised of 20 shares
each of the new Series A Preferred Stock and the new Common Stock
the company proposes to issue and sell upon its Plan of
Reorganization's being confirmed by Honorable Lief M. Clark,
Bankruptcy Judge in the United States Bankruptcy Court for the
Western District of Texas, San Antonio Division. Judge Clark has
set the Confirmation Hearing on such Plan for June 3, 1997.
The Company issued to each stockholder of record at the close
of business on March 21, 1997 one right to subscribe for and
purchase one Unit (the "Right") for each share of
currently outstanding Common Stock held by such stockholder on
March 21, 1997 up to a maximum of 122,009 Units. Each Right
entitled the holder to subscribe for one Unit prior to 5:00 PM
Central Standard Time on May 20, 1997, at which time the Rights
were to expire. By such time, the Company had received
subscriptions for 42,691 Units ($4,269,100), and, based on
expressions of interest in the Units and in anticipation of
receipt of additional subscriptions from existing stockholders,
the Company has extended the expiration of the Rights and the
Rights Offering to 2:15 Eastern Standard Time on Thursday, May
22, 1997. As stated in the Company's Disclosure Statement with
respect to its Plan of Reorganization, as amended and dated March
27, 1997, any Units not subscribed for by such time on May 22,
1997 by existing stockholders may be offered to the public by the
Company until such offering expires.
Each share of the new Series A Preferred Stock will have a
$5.00 stated and liquidation value and is convertible into two
shares of new Common Stock. The Series A Preferred Stock will pay
a $0.275 cumulative annual dividend.
The Company's Plan of Reorganization calls for: -- a
substantial reduction in principal and a lengthening of maturity
of certain long-term debt;
- the issuance of 770,170 shares ($3,991,050 aggregate stated
and liquidation value) of new Series B Preferred stock (secured
initially by the net proceeds of significant litigation brought
by the Company, each such share will have a $5.00 stated and
liquidation value and is convertible into two shares of new
Common Stock or, under certain circumstances, into one share of
Series A Preferred Stock) to general unsecured creditors who may
also receive shares of Series A Preferred Stock at $5.00/share or
cash to the extent such litigation proceeds exceed $3,991,050;
- the forgiveness of more than $28 million of pre-petition
obligations of the Company; and
- the canceling of all currently outstanding Common Stock,
warrants and options; and requires the sale of a minimum of
30,500 Units ($3,050,000).
The Plan and the related Disclosure Statement were mailed with
ballots to all impaired creditors and stockholders of the Company
as of March 21, 1997 for their approval of the Plan. The Official
Committee for the Unsecured Creditors expressed their unanimous
support for the Plan, as did MetLife Capital Corporation, an
impaired, secured creditor of the Company; and creditors have
overwhelmingly voted to accept the Plan. General Electric Capital
Corporation, the current provider of debtor-in-possession
financing for the Company, has committed, subject to certain
conditions, to providing the Senior Secured Exit Financing
required by the Plan.
The Company will continue to manage its affairs and operate
its business under Chapter 11 as a debtor in possession while the
Plan is being considered by impaired creditors and stockholders
and the Offering is pending. Through the Plan of Reorganization,
the Company is restructuring its obligations and capitalization
in order to strengthen its financial position so management can
more fully implement its business plan and improve the Company's
operating performance. The Company's ability to successfully
reorganize and continue as a going concern will be affected by a
number of factors, including, but not limited to, uncertainty
regarding the eventual outcome of the bankruptcy case, the degree
of success in reversing the Company's recent business trends and
the ability to alleviate trade credit concerns and restore
merchandise flow to adequate levels. While management believes
that the recent closing of stores and the implementation of
expense cuts commensurate with the downsizing of the total stores
in operation (from 101 to 41 core stores in Texas, Louisiana,
Oklahoma, New Mexico and Tennessee) facilitates its efforts to
improve the Company's operating performance and that the
recapitalization to be implemented upon the confirmation of its
Plan of Reorganization should strengthen its financial position
and alleviate concerns of credit and merchandise suppliers, no
assurance can be given that the Company will be successful in its
continuing efforts to reverse recent business trends and return
to profitability.
The Registration Statement relating to the Company's new
securities and filed with the Securities and Exchange Commission
on April 11, 1997 has not yet become effective. These securities
may not be sold prior to the time such Registration Statement
becomes effective. This press release shall not constitute an
offer to sell or the solicitation of an offer to buy, nor shall
there be any sale of these securities in any State in which such
offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any
such State.
SOURCE 50-OFF Stores, Inc. /CONTACT: Charles Fuhrmann, CEO of
50-OFF Stores, Inc., 210-804- 4904/
Toy Biz, Inc. Terminates Plan to Combine With Marvel
Entertainment Group, Inc.
NEW YORK, NY - May 20, 1997 - Toy Biz, Inc. (NYSE: TBZ)
announced today that Toy Biz has terminated its letter of intent,
dated April 28, 1997, with Marvel
Entertainment Group, Inc. (NYSE: MRV) with respect to Toy
Biz's participation in a plan of reorganization of Marvel and
certain of its direct and indirect subsidiaries and will withdraw
from the plan of reorganization jointly filed by Toy Biz and
Marvel on May 15, 1997 in U.S. Bankruptcy Court for the District
of Delaware.
Toy Biz intends to engage in discussions with various parties
in interest in Marvel's Chapter 11 case towards reaching a new
understanding reflecting the terms upon which Toy Biz can proceed
with a Marvel plan of reorganization. There can be no assurance
that a new understanding will be reached. As a matter of policy,
Toy Biz will not comment on ongoing discussions nor any rumors
with respect to the foregoing.
SOURCE Toy Biz, Inc. /CONTACT: Diane Perry or Joseph Kist of
Edelman Financial, 212- 704-8293, or 212-704-8239/
Phar-Mor Inc. Appoints Sankar Krishnan
as Senior Vice President and Chief Financial Officer
YOUNGSTOWN, Ohio, May 20, 1997 - Phar-Mor,
Inc. (Nasdaq- NNM: PMOR) announced today the promotion,
effective June 12, 1997, of Sankar Krishnan to Senior Vice
President and Chief Financial Officer.
Robert Haft, Chairman and Chief Executive Officer stated:
"Mr. Krishnan has been a tremendous resource to Phar-Mor and
his new challenge is to help take our company to a higher level
of success and profitability."
Mr. Krishnan joined the company in 1993 as Vice President and
Controller. He has previously served as Chief Financial Officer
of Lord and Taylor and Macy's-Bamburger's and was a member of the
Macy's leveraged buyout group. He has had extensive involvement
in Phar-Mor's computer systems development, financial
restructuring, inventory management and pharmacy programs. Mr.
Krishnan, 50, has a Bachelor's of Technology degree from the
University of Madras, India and a Masters degree in Applied
Science ftom the University of Waterloo, Ontario, Canada.
Mr. Krishnan succeeds Daniel J. O'Leary who, on May 13, 1997,
terminated his employment effective June 12, 1997 claiming a
reduction in his position "below the level of a senior
officer." The Company intends to seek binding arbitration to
resolve any such contractual issues. Mr. Haft commented:
"Dan O'Leary shared his extensive knowledge of drug store
retailing, guided our financial affairs including successfully
emerging from bankruptcy and going public, provided direction and
leadership, and has been a valuable member of our team. We
appreciate his efforts and wish him well in any future
endeavor."
Phar-Mor is a retail drug store chain with 103 stores in 18
states. The Company's common stock is traded on the Nasdaq
National Market under the symbol "PMOR."
SOURCE Phar-Mor, Inc. /CONTACT: Gary Holmes, 212-484-7736, for
Phar-Mor/
Asensio & Company: Solv-Ex's Latest
Form 10Q Reveals Part of its True State of Affairs
NEW YORK, NY - May 20, 1997 - Asensio & Company today
released the following:
On May 14th Solv-Ex Corporation (Nasdaq: SOLV) filed its Form
10Q for the third quarter ended March 31, 1997 with the U.S.
Securities and Exchange Commission ("SEC"). In the Form
10Q Solv- Ex admits its plant has only "primary bitumen
extraction equipment," does not have use of a clarifier
vessel, utilities plant, or natural gas. Solv-Ex also admits that
it has not installed a permanent boiler and admits it used
"back-up boilers fired by diesel fuel" in its failed
attempt to continuously produce bitumen. Solv-Ex admits
"that it will be necessary to raise additional capital to
complete" even the initial stage construction. On March 31,
1997 Solv-Ex announced that on March 29th oil production had
commenced at its new plant. The Form 10Q contains clear proof
this statement was a gratuitous lie.
In the Form 10Q Solv-Ex admits that it has requested a
"waiver" from a "lender" related to its
"non-compliance" with a certain "debt
covenant." Solv-Ex also disclosed that the
"lender" has not granted the "waiver." On
March 13, 1997 Asensio & Company disclosed that Solv-Ex had
defaulted on its Deutsche Bank loan. Solv-Ex denied being in
default.
The fraudulent claims described above of indisputable facts
are examples of the extent of Solv-Ex management's immense
willingness to make false statements specifically designed to
mislead investors. These false statements include Solv-Ex's
repeated absurd insistence that it is not under investigation by
the SEC.
The Form 10Q provides a clear description of how Solv-Ex
profits directly from its fraudulent stock promotion schemes. The
Form 10Q shows that by March 31st its entire November 15, 1996
off- shore placement had been converted into 1,090,427 freely
traded shares of Solv-Ex common stock. All of these newly created
shares can be sold into the U.S. market to U.S. retail investors
without ever filing a registration statement or giving notice to
shareholders. It is important to note that in March, while Mr.
Rendall was vehemently and falsely claiming that Solv-Ex would
begin continuous production of bitumen by the end of the month, a
total of 667,264 new freely trading unregistered Solv-Ex shares
were created.
The above is a summary of Asensio & Company, Inc.'s
complete analysis of Solv-Ex's March 31, 1997 Form 10Q, which
will be available tomorrow on the Internet at www.asensio.com.
SOURCE Asensio & Company /CONTACT: Manuel P. Asensio of
Asensio & Company, 212-702-8800/