Angelica Reports Improved First Quarter Results of Continuing Operations.Business Editors ST. LOUIS--(BUSINESS WIRE)--May 16, 2002 Angelica angelica (ănjĕl`ĭkə), any species of the genus Angelica, plants of the family Umbelliferae (parsley family), native to the Northern Hemisphere and New Zealand, valued for their potency as a medicament and protection against Corporation (NYSE NYSE See: New York Stock Exchange :AGL (programming) AGL - (Atelier de Genie Logiciel) French for IPSE. ) announced today improved results of continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the first quarter ended April 27, 2002. Per share earnings for continuing operations were $.27 ($.26 fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ) in this year's first quarter compared with $.16 last year, an increase of 68.8 percent. First quarter sales and revenues as well as operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before were up over last year in both of the continuing business segments, Textile Services and Life Retail Stores. Combined sales and revenues of continuing operations were $93,257,000 in this year's first quarter compared with $89,187,000 in the same period last year, an increase of 4.6 percent. Pretax income pretax income Reported income before the deduction of income taxes. Pretax income is sometimes considered a better measure of a firm's performance than aftertax income because taxes in one period may be influenced by activities in earlier periods. was $3,527,000 compared with $1,537,000 last year, and net income from continuing operations was $2,293,000 versus $1,399,000, an increase of 63.9 percent. First quarter results of discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. , which reflect differences between current and prior estimates of the loss on sale and discontinuation dis·con·tin·u·a·tion n. A cessation; a discontinuance. Noun 1. discontinuation - the act of discontinuing or breaking off; an interruption (temporary or permanent) discontinuance of the Manufacturing and Marketing segment, were a loss after tax of $4,447,000 or $.52 per share ($.51 fully diluted). In last year's first quarter, discontinued operations had net income of $457,000 (before application of any portion of the Company's interest expense). Combining continuing and discontinued operations, the Company in total had a net loss of $.25 per share ($.25 fully diluted) in the first quarter of this year compared with net income of $.22 per share ($.21 fully diluted) in the first quarter last year. In the Textile Services segment, first quarter revenues increased 4.7 percent to $68,381,000 compared with $65,285,000 in the same period last year. Revenues benefitted both from last year's excellent increases in net new business (annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. revenues from new business installed less lost business) as well as from an additional $4,200,000 of net new business recorded in the first quarter this year. Operating earnings rose 24.1 percent to $5,884,000 from $4,740,000 in the first quarter last year, reflecting the higher revenues as well as good control of linen linen, fabric or yarn made from the fiber of flax, probably the first vegetable fiber known to people. Linens more than 3,500 years old have been recovered from Egyptian tombs. Phoenician traders marketed linen in Mediterranean ports. expense plus higher plant productivity and lower production costs. As a part of its expansion plans, Textile Services is proceeding with the construction of a new large plant in the southwestern U.S. and is negotiating to acquire a smaller plant in the southeastern U.S. First quarter results of Life Retail Stores showed good improvement over the prior year. Sales for the quarter increased 4.1 percent to $24,876,000 versus $23,902,000 in last year's comparable period even though the number of stores decreased from 291 to 272. Sales were helped by a same-store sales Same-store sales is a business term which refers to the revenue generated by one of a retail chain's specific outlets during a certain period of time (often a fiscal quarter or a particular shopping season), compared to an identical period in the past, usually in the previous year. increase of 2.5 percent and significant increases in catalogue and e-commerce sales. The same-store sales increase was the first since the first quarter last year and appeared to reflect a gradually improving economy, as the increase was negative at the start of the quarter and strengthened as the quarter progressed. Store, catalogue and e-commerce sales remain strong as the second quarter begins. On the sale and discontinuation of the Manufacturing and Marketing segment, the sale to Cintas Corporation of certain assets of the non-healthcare business closed on April 19, 2002, and the sale to Medline Industries of certain assets of the healthcare business of the segment is expected to close shortly. The orderly orderly /or·der·ly/ (or´der-le) an attendant in a hospital who works under the direction of a nurse. or·der·ly n. An attendant in a hospital. and gradual transition of the business to the two purchasers is expected to take about six months in order to continue excellent service to the customers being transferred. As previously reported, the loss on the sale caused the Company not to be in compliance with the minimum net worth covenant in a current loan agreement. The non-compliance has been temporarily waived by the affected current lenders, and plans are to repay existing debt on or before May 31, 2002 with proceeds from the sale of the segment and from a new, three-year $70,000,000 unsecured Unsecured A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. credit facility arranged by LaSalle Bank LaSalle Bank Corporation is the holding company for LaSalle Bank N.A. and LaSalle Bank Midwest N.A. With $116 billion in assets, it is headquartered at 135 South LaSalle Street in Chicago, Illinois. N.A. The refinancing Refinancing An extension and/or increase in amount of existing debt. will require a prepayment penalty Prepayment penalty A fee a borrower pays a lender when the borrower repays a loan before its scheduled time of maturity. of approximately $6,800,000 which will occur in the second quarter this year. Following the refinancing, total long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. outstanding is expected to be in the range of $20,000,000 to $25,000,000. As a result, interest costs for the remainder of this fiscal year are expected to be significantly lower than current levels. Don W. Hubble, Chairman, President and Chief Executive Officer of Angelica said, "Our Textile Services segment made an excellent start in the first quarter this year, and it continues to show good prospects for organic revenue growth as well as growth through potential acquisitions available in its industry." He went on to say, "Life Retail also had a good first quarter, with both sales and earnings gains compared to last year, as we believe the awaited a·wait v. a·wait·ed, a·wait·ing, a·waits v.tr. 1. a. To wait for. See Synonyms at expect. b. general economic improvement may now be under way." With respect to the sale and discontinuation of Manufacturing and Marketing, Hubble said, "We are close to completing this divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). . While it has been difficult and complicated and not without its disappointments, we are more certain than ever that it is in the best long-term interests of our shareholders." Angelica Corporation, traded on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol AGL, provides textile rental and laundry services to healthcare institutions, and operates a national chain of retail uniform and shoe stores with a fully-integrated catalogue and e-commerce operation.
Unaudited results for first quarter ended April 27, 2002 compared
with first quarter ended April 28, 2001 (dollars in thousands except
per share amounts):
First Quarter
---------------------------- Percent
Increase
Fiscal 2003 Fiscal 2002 (Decrease)
------------- ------------ -----------
Continuing Operations:
Combined sales and
revenues:
Textile Services $68,381 $65,285 4.7
Life Retail 24,876 23,902 4.1
------------- ------------
Total $93,257 $89,187 4.6
Operating earnings:
Textile Services $5,884 $4,740 24.1
Life Retail 701 (61) n/m
------------- ------------
Total $6,585 $4,679 40.7
Interest expense, net $1,421 $1,798 (21.0)
Corporate expense and
other, net $1,637 $1,344 21.8
Pretax income $3,527 $1,537 129.5
Net income $2,293 $1,399 63.9
Earnings per share:
- Basic $.27 $.16 68.8
- Diluted $.26 $.16 62.5
Discontinued Operations:
Income from operations,
net of tax -- $457
Loss on disposal in excess
of estimate, net of tax $(4,447) --
------------ ------------
(Loss) income from
discontinued operations,
net of tax $(4,447) $457
Combined Continuing and
Discontinued Operations:
Net (loss) income $(2,154) $1,856 n/m
(Loss) earnings per share:
- Basic $(.25) $.22 n/m
- Diluted $(.25) $.21 n/m
Unaudited condensed balance sheets as of April 27, 2002 and
January 26, 2002 (dollars in thousands):
April 27, January 26,
2002 2002
---------------- ---------------
Current assets:
Cash and investments $37,733 $18,742
Receivables, net 33,924 33,536
Inventories 13,697 14,435
Linens in service 32,504 32,196
Other 21,318 19,446
Net current assets of
discontinued segment 26,316 61,774
---------------- ---------------
Total current assets 165,492 180,129
Property and equipment,
net 77,156 76,685
Other long-term assets 32,398 32,215
Long-term assets of
discontinued segment 1,807 1,836
---------------- ---------------
Total assets $276,853 $290,865
================ ===============
Current liabilities:
Current maturities of
long-term debt(a) $59,602 $71,602
Accounts payable 20,389 20,958
Other 41,826 40,609
---------------- ---------------
Total current
liabilities 121,817 133,169
Long-term debt(a) 758 812
Other long-term
liabilities 15,412 15,380
Shareholders' equity 138,866 141,504
---------------- ---------------
Total liabilities and
shareholders' equity $276,853 $290,865
================ ===============
(a) Due to the sale and related writedown of the Manufacturing and Marketing segment, the Company is not in compliance with a net worth covenant in a loan agreement with its lenders. As a result, the applicable long-term debt was reclassified as current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. . Waivers of this non-compliance have been obtained from the lenders; and on or before May 31, 2002, the Company expects to refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. its existing debt with proceeds from the sale of the Manufacturing and Marketing segment and from a new three-year $70,000,000 unsecured credit facility arranged by LaSalle Bank N.A. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. : Any forward-looking statements made in this document reflect the Company's current views with respect to future events and financial performance and are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such statements are subject to certain risks and uncertainties that may cause actual results to differ materially from those set forth in these state- ments. These potential risks and uncertainties include, but are not limited to, competitive and general economic conditions, the ability to retain current customers and to add new customers in competitive market environments, competitive pricing in the marketplace, delays in the shipment of orders, avail- ability of labor at appropriate rates, availability and cost of energy and water supplies, availability of non-domestic image apparel contractors to manufacture and deliver at an appropriate cost and in a timely manner, the ability to attract and retain key personnel, consummation CONSUMMATION. The completion of a thing; as the consummation of marriage; (q.v.) the consummation of a contract, and the like. 2. A contract is said to be consummated, when everything to be done in relation to it, has been accomplished. of the sale and discontinuation of the Manufacturing and Marketing segment as presently contemplated, unusual or unexpected cash needs for operations or capital transactions, the ability to obtain financing in required amounts and at appropriate rates, and other factors which may be identified in the Company's filings with the Securities and Exchange Commission. |
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