Edison Brothers Reports August Sales
ST. LOUIS, Mo., Sept. 4, 1997 - Edison
Brothers Stores Inc. (OTC Bulletin Board: EDBT) today
reported same-store sales of $72.6 million for August 1997 (the
four weeks ended August 30, 1997), a decrease of 2.8 percent from
same-store sales of $74.7 million in August 1996.
Total sales for August 1997 declined 13.0 percent to $77.8
million from $89.4 million for the same period last year. Total
sales figures reflected the fact that Edison operated an average
of 1,661 stores during August 1997, approximately 14 percent
fewer than the 1,933 stores open in August 1996.
For the 30 weeks ended August 30, 1997, same-store sales were
$501.7 million, a decrease of 1.1 percent from same-store sales
of $507.2 million in 1996. Year-to-date 1997 total sales through
August decreased 12.6 percent to $538.4 million from sales of
$616.3 million for the same period last year.
Edison Brothers Stores Inc. operates JW/Jeans West, Coda,
Oaktree, J. Riggings and REPP Ltd Big & Tall menswear stores;
REPP Ltd and Phoenix Big & Tall men's catalogs; 5-7-9 Shops
junior apparel stores; Bakers/Leeds, Pricis and Wild Pair
footwear stores; and Shifty's alternative apparel, footwear and
accessories for teen boys and girls. With nearly 1,700 stores in
the United States, Canada, Puerto Rico and the Virgin Islands,
Edison is one of the largest specialty retailers of apparel,
footwear and accessories in North America.
Edison Brothers Stores segments report the following sales
results for the month and year-to-date periods:
August 1997
Year-to-Date
Total
Same-store
Total
Same-store
Apparel -13.3% -2.2%
-13.5%
-1.4%
Footwear -12.1% -4.2%
-10.1%
-0.2%
Total Company -13.0% -2.8%
-12.6%
-1.1%
SOURCE Edison Brothers Stores Inc./CONTACT: David B. Cooper,
Jr., CFO, 314-331-6531, or Amy Calvin, Communications Director,
314-331-6588, both of Edison Brothers Stores Inc./
Edison Brothers Reports Second Quarter
Profit
ST. LOUIS, Mo., Sept. 4, 1997 - Edison Brothers Stores Inc.
(OTC Bulletin Board: EDBT) today reported net income of $200,000,
or 1 cent per share, for the three months ended Aug. 2, 1997.
This represents an improvement over a net loss of $25.2 million,
or $1.14 per share, in second quarter 1996. Second quarter 1997
results included a pension settlement gain of $15.8 million and
special charges of $10.1 million, primarily restructuring and
reorganization expenses. In second quarter 1996, Edison recorded
special charges of $7.0 million. Excluding the pension settlement
gain and special charges, the company had a net loss for second
quarter 1997 of $5.5 million, an improvement over the loss of
$18.2 million for the same period in 1996.
"Edison continues its progress toward consistent sales
and profitability as we look ahead to completing the Chapter 11
process this fall," said Alan Miller, Edison's chairman and
chief executive officer. "Our modest quarterly same-store
sales gain over 1996 and significantly stronger margins resulted
in positive financial results for all of the company's
established chains during the second quarter."
As previously reported, Edison posted a same-store sales gain
of 0.3 percent for the quarter ended Aug. 2, 1997. The same-store
gain reflected a 0.7 percent increase in apparel sales, partially
offset by a 0.4 percent decrease in the footwear division. Total
sales declined 12.0 percent to $236.6 million for second quarter
1997 from $268.8 million a year ago. This decline was narrower
than the 15.0 percent decrease in the average number of stores
operated in the second quarter of 1997 compared to 1996.
During the second quarter, several of Edison's chains moved
forward with expanded marketing and store design initiatives,
including:
- An increased focus on branded footwear at Wild Pair,
reflecting its fashion-conscious customers' shopping preferences.
-- The opening of the first 5-7-9 "Superstore" at Hulen
Mall in Ft. Worth, Texas, which attracted a crowd estimated at
4,000 to see U.S. Olympic Gymnast Dominique Moceanu, in her first
appearance as a spokesperson for 5-7-9.
-- Completion of a new J. Riggings store prototype at Southlake
Mall in Atlanta, featuring an upscale look to complement the
chain's fall line of high quality, fashionable men's casual and
dress wear.
-- The unveiling of an entirely redesigned Bakers/Leeds prototype
store at Dadeland Mall in Miami, which resulted in significantly
higher traffic at the women's footwear location.
Year-to-Date Results For the first six months of 1997, Edison
reported a net loss of $16.9 million, or 76 cents per share, a
60.6 percent reduction from the $42.9 million, or $1.93 per
share, loss recorded in the first half of 1996. The 1997 loss
reflects special charges of $18.2 million, offset by the $15.8
million pension settlement gain. Edison recorded special charges
of $18.6 million during the first half of 1996. Excluding the
pension settlement gain and special charges, Edison's loss for
the first half of 1997 was $14.5 million, an improvement over the
loss of $24.3 million in the first two quarters of 1996.
Same-store sales through Aug. 2, 1997, decreased 0.8 percent,
reflecting a 0.4 percent gain for Edison's footwear chains and a
1.2 percent decrease in apparel sales. Total sales for the period
were $460.6 million, a decrease of 12.6 percent compared to
$526.9 million during the same period in 1996.
Company Anticipates Completion of Chapter 11 Early This Fall
Earlier this month, Edison announced that the confirmation
hearing in U.S. Bankruptcy Court on its plan of reorganization
was rescheduled for Sept. 9, 1997, to allow additional time for
the company to resolve $40 million in outstanding tax claims by
the Internal Revenue Service. Edison anticipates that this short
postponement will facilitate the confirmation process and expects
to emerge from Chapter 11 this fall.
Edison Brothers Stores Inc. operates JW/Jeans West, Coda,
Oaktree, J. Riggings and REPP Ltd Big & Tall menswear stores;
REPP Ltd and Phoenix Big & Tall men's catalogs; 5-7-9 Shops
junior apparel stores; Bakers/Leeds, Pricis and Wild Pair
footwear stores; and Shifty's alternative apparel, footwear and
accessories for teen boys and girls. With nearly 1,700 stores in
the United States, Canada, Puerto Rico and the Virgin Islands,
Edison is one of the largest specialty retailers of apparel,
footwear and accessories in North America.
EDISON BROTHERS STORES, INC.
AND SUBSIDIARIES
Condensed Consolidated
Statements of Operations
(unaudited)
13 Weeks 13
Weeks 26 Weeks
26
Weeks
Ended
Ended
Ended
Ended
August 2, August
3, August 2,
August 3,
1997
1996
1997
1996
Net Sales $236.6
$268.8 $460.6
$526.9
Cost of goods sold,
occupancy, and
buying services 165.4
207.3 323.5
390.4
Store operating and
administrative expenses 65.9
68.5 128.5
137.4
Depreciation and
amortization 7.7
10.1 15.3
20.5
Interest expense, net 0.6
0.5 1.5
0.9
Restructuring and
reorganization expenses 10.1
7.0 18.2
18.6
Pension settlement gain (15.8)
-- (15.8)
--
Other 3.4
0.6 6.1
1.6
Total Costs and Expenses 237.3
294.0 477.3
569.4
Loss before Income Taxes (0.7)
(25.2) (16.7)
(42.5)
Income tax provision
(benefit) (0.9)
-- 0.2
0.4
Net Income (Loss) $ 0.2
$(25.2) $(16.9)
$(42.9)
Net Income (Loss) Per
Common Share $0.01
$(1.14) $(0.76)
$(1.93)
Weighted average common
shares outstanding
(in thousands) 22,202
22,202 22,202
22,168
SOURCE Edison Brothers Stores Inc./CONTACT: David B. Cooper,
Jr., CFO, 314-331-6531, or Amy Calvin, Communications Director,
314-331-6588, both of Edison Brothers Stores Inc./
House of Fabrics Reports 1997 Second
Quarter Results
SHERMAN OAKS, Calif., Sept. 4, 1997 -
HFAB) today announced financial results for the second fiscal
quarter and six months ended July 31, 1997.
For the second quarter, the company reported a net loss of
$5.9 million, or $1.12 per share, versus net income of $69.5
million for the prior year period, which included a one-time gain
of $100.9 million on forgiveness of debt in connection with the
company's emergence from Chapter 11 in August 1996. Sales for the
quarter totaled $50.2 million compared with $54.8 million a year
ago.
The company reported a net loss of $10.3 million for the
six-month period versus net income of $63.6 million for the
corresponding period last year, reflecting the extraordinary item
of gain on forgiveness of debt. Sales were $104.3 million versus
$111.3 million for the first half of fiscal 1996.
Results for the current three- and six-month periods reflect
post bankruptcy operations ("successor company"),
versus bankruptcy operations for the corresponding prior year
periods ("predecessor company").
"We expected that the first half of the year would be a
challenge, as we address the changing dynamics of our
business," said Donald L. Richey, president and chief
executive officer, who joined House of Fabrics in April 1997.
"We are moving away from deep store-wide discount promotions
and continue to make inroads into clearing out older merchandise,
two strategies that are expected to enhance our margins over
time. In addition, we have essentially completed the installation
of point-of-sale cash register systems in all our stores. This
will markedly enhance our ability to effectively monitor
individual store performance in a timely manner.
"We look forward to the fall season, which represents the
first normalized selling period since the company emerged from
bankruptcy," Richey continued. "Moving ahead, our
management team will remain focused on the core fundamentals of
our business, namely, merchandising, marketing and store
operations."
During the quarter, House of Fabrics negotiated a more
favorable credit agreement with its current lender, giving the
company additional seasonal credit of approximately $5 million
and enhancing its ability to fully merchandise its stores during
the upcoming peak selling season. Additionally, the company
recently retained Los Angeles investment banking firm F.M.
Roberts & Company, Inc. to advise it on matters of financing
and enhancing shareholder value.
House of Fabrics currently operates 262 company-owned House of
Fabrics, Sofro Fabrics, Fabricland and Fabric King retail fabric
and craft stores in 27 states and employs approximately 5,000
people.
HOUSE OF FABRICS, INC. AND
SUBSIDIARIES
STATEMENTS OF
OPERATIONS
(Dollars in thousands except per
share amounts and shares)
(Unaudited)
Three Months Ended
Six Months
Ended
July 31, 1997 July 31, 1996
July 31, 1997
July 31, 1996
Successor Co.Predecessor Co.
Successor Co.
Predecessor Co.
Sales $50,238 $54,840
$104,311
$111,355
Expenses:
Cost of Sales 29,010 30,826
59,636
62,000
Selling, General
and Administrative25,618 27,071
52,253
53,952
Interest 1,550 2,402
2,718
4,911
Total Expenses 56,178 60,299
114,607
120,863
Loss Before Income
Taxes, Reorganization
and Extraordinary
Items (5,940) (5,459)
(10,296)
(9,508)
Reorganization Items:
Fresh-Start
Adjustments (a) --- 26,370
--- 26,370
Reorganization Costs --- (458)
--- 1,440
Loss Before
Income Taxes
and Extraordinary
Item (5,940) (31,371)
(10,296)
(37,318)
Income Taxes 24 24
48
48
Loss Before
Extraordinary Item (5,964) (31,395)
(10,344)
(37,366)
Extraordinary Item:
Gain on Forgiveness
of Debt (a) --- (100,959)
--- (100,959)
Net Income (Loss) $(5,964) $69,564
$(10,344)
$63,593
Net Loss Per
Share (b) $(1.12) N/A
$(1.96)
N/A
Weighted Average
Number of Shares
Outstanding (b) 5,330,377 N/A
5,264,742
N/A
(a) These adjustments are the result of
the adoption of Fresh-
Start Reporting upon the emergence from Chapter
11 proceedings. All assets and liabilities were
restated and the accumulated deficit of
$74,589,000 was eliminated.
(b) The net income per common share and
the weighted average
number of common shares for the Predecessor
Company have not been presented because, due to
the Reorganization and implementation of
Fresh-Start accounting, they are not comparable
to the current period.
HOUSE OF FABRICS, INC. AND
SUBSIDIARIES
SELECTED BALANCE
SHEET DATA
(Dollars in thousands except per
share amounts and shares)
(Unaudited)
July 31, 1997
January 31,
1997
Inventories, Net $103,423
$104,576
Accounts Payable $14,570
$18,250
Bank Loan $51,432
$42,621
SOURCE House of Fabrics, Inc. /CONTACT: John E. Labbett or
House of Fabrics, Inc., 818-385-2305, or Roger S. Pondel of
Pondel Parsons & Wilkinson, 310-207-9300/
Bucyrus International Ratings Assigned
by S&P; Outlook Positive
NEW YORK, NY - Sept. 4, 1997 - Standard & Poor's today
assigned its single-'B'-plus corporate credit rating to Bucyrus
International Inc. and its single-'B'-plus rating to the
company's $150 million senior notes due 2007, privately placed
under Rule 144A. A double-'B'-minus rating was assigned to
Bucyrus' $75 million revolving credit facility.
The ratings reflect an entrenched position in a cyclical niche
market, offset by a moderately aggressive financial structure.
South Milwaukee, Wis.-based Bucyrus manufactures electric
mining shovels, blast hole drills, and draglines for the surface
mining industry. Demand for new equipment can vary sharply, tied
to capital expenditure programs for production of coal, copper,
and iron ore. However, over 60% of revenues come from the more
stable aftermarket for parts and service. There are very few
equipment suppliers, and Bucyrus enjoys substantial market shares
for its products. The large installed base of machines worldwide
supports ongoing aftermarket demand. Bucyrus has maintained
long-standing relationships because of a strong service
capability and the special design of many items.
Pro forma for the pending acquisition of Bucyrus by American
Industrial Partners Capital Fund II, L.P., at June 30, 1997, debt
of $187 million at Bucyrus compared to $143 million equity. Debt
to total capital at 57% is moderately aggressive. Funds from
operations to total debt is anticipated to be in the low-teens
percentage range over the economic cycle, appropriate for the
ratings. Future acquisitions likely would be small product line
extensions.
The bank facility rating of double-'B'-minus is one notch
higher than the corporate credit rating, deriving strength from
being secured by substantially all assets. Based on Standard
& Poor's simulated default scenario, a distressed enterprise
value would be sufficient to cover the entire loan facility.
OUTLOOK: POSITIVE Growth of internal cash generation over the
next few years could result in modest improvement in credit
quality. Stable aftermarket activity is expected to mitigate cash
flow declines during downturns in demand for new equipment. -
CreditWire
For more information on criteria and subscriptions, see
http://www.ratings.standardpoor.com
SOURCE Standard & Poor's CreditWire - /CONTACT: Martin
Knoblowitz of S&P, 212-208-1614/
Tarrant Apparel Group Does Not Receive Court Approval to
Purchase B.U.M. International, Inc.
Trademarks and Other Assets
LOS ANGELES, CA - Sept. 4, 1997 - Tarrant Apparel Group
(Nasdaq: TAGS), a leading provider of private label casual
apparel, today announced that despite its previously-announced
agreement in principle, the unsecured creditors' committee of
Tarrant Apparel's proposal to purchase the trademarks and other
assets of B.U.M. At a hearing held on September 3rd before the
United States Bankruptcy Court for the Central District of
California, the Court did not approve Tarrant's purchase
agreement and, immediately thereafter, confirmed the Committee's
plan of reorganization. Tarrant will not further pursue its
proposed acquisition of the assets of B.U.M.
Tarrant Apparel Group serves both specialty retail and mass
merchandise store chains by designing, merchandising, contracting
for the manufacture of and selling casual, moderately-priced
apparel, primarily for women, under private label.
Except for historical information contained herein, the
statements in this release are forward-looking and made pursuant
to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements involve
known and unknown risks and uncertainties which may cause the
Company's actual results in future periods to differ materially
from forecasted results. Those risks include, a softening of
retailer or consumer acceptance of the Company's products,
pricing pressures and other competitive factors, or the
unanticipated loss of a major customer. These and other risks are
more fully described in the Company's filings with the Securities
and Exchange Commission.
SOURCE Tarrant Apparel Group /CONTACT: Investors - David
Walke, Howard Zar, or Shannon Moody, 212-850-5600, or Press -
Carol Schneller, 415-296-7383, all of Morgen-Walke/
Weitek Corporation Announces Liquidating
Distribution
SAN JOSE, Calif., Sept. 4, 1997 - Weitek
Corporation (OTC Bulletin Board: WWTK) today announced that
it will make a partial liquidating distribution totaling
$6,317,534, or $0.73 for every outstanding share of its Common
Stock (the "Distribution"). The Distribution will be
made to all shareholders of record as of the close of business on
September 15, 1997 (the "Distribution Date").
Pursuant to the Company's plan of reorganization under Chapter
11 of the United States Bankruptcy Code (the "Plan of
Reorganization"), the Company has sold substantially all of
its assets and has been in the process of winding up its affairs
during 1997. On the Distribution Date, the Company will begin to
pay creditor claims. Payments to shareholders will take place
after the Company's transfer agent determines the identity of the
holders of record of the Company's Common Stock as of the close
of business on the Distribution Date. The Distribution will be
mailed to the shareholders on approximately September 29, 1997.
Pursuant to the Plan of Reorganization, effective as of the
close of business on the Distribution Date, the Company's Common
Stock will no longer represent an ownership interest in the
Company and thereafter will only represent the right to receive a
pro rata share of the Distribution and subsequent
distribution(s), if any. As of the close of business on the
Distribution Date, the Company's Common Stock will no longer be
transferable on the Company's books. Any shareholder
contemplating the sale or other transfer of their shares after
such date should contact their broker regarding the Distribution.
After the resolution of the one outstanding disputed claim (for
which the Company has reserved $691,200) and payment of all
administrative costs, the Company's remaining funds, if any, will
be distributed to the shareholders of record as of the
Distribution Date.
SOURCE Weitek Corporation /CONTACT: Weitek Corporation,
408-526-0400, ext. 1905/