BELDING HEMINWAY COMPANY, INC. REPORTS FOURTH QUARTER AND YEAR END RESULTS; AMENDS CREDIT FACILITY AGREEMENT.NEW YORK--(BUSINESS WIRE)--March 29, 1996--Belding Heminway Company, Inc. (NYSE NYSE See: New York Stock Exchange :BHY BHY Bulk Hydrogen BHY Beihai, PR China (airport code) ) today announced its financial results for the fourth quarter and year ended December 31, 1995. The results for both periods reflect the Company's previously announced decision to divest To deprive or take away. Divest is usually used in reference to the relinquishment of authority, power, property, or title. If, for example, an individual is disinherited, he or she is divested of the right to inherit money. its Home Furnishings Division, and account for the Division as a discontinued operation discontinued operation A segment of a business that has been abandoned or sold or for which plans for one or another of these actions have been approved. See also continuing operations. , effective with the 1995 fourth quarter. In addition, and also as previously reported, the Company initiated a number of programs to improve the efficiency and productivity of its Thread Division, which resulted in an after-tax charge of $22.5 million, or $3.04 per share, representing primarily a write-down of goodwill ($17.4 million) and impaired assets Impaired Asset An asset with a market value that is worth less than its book value. Notes: If the sum of all estimated future cash flows is less than the carrying value of the asset, then the asset would be considered impaired and would have to be written down to its fair , in the fourth quarter of 1995. The Company reported 1995 fourth quarter sales from 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 of $22.9 million, an increase of 8% from comparable sales of $21.3 million in the fourth quarter last year. The net loss applicable to common shares from continuing operations and before the Thread Division's one-time charge was $1,221,000, or $0.16 per share after provision for preferred dividends preferred dividend n. a payment of a corporation's profits to holders of preferred shares of stock. (See: preferred stock) . This compares with a net loss applicable to common shares from comparable operations of $581,000, or $0.10 per share after provision for preferred dividends in the year ago quarter. The loss from continuing operations before the one-time charge and provision for preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. dividends was $891,000 compared to a loss from comparable operations of $60,000 in the year ago period. Preferred stock dividends were $330,000, and $521,000 in the fourth quarter of 1995 and 1994, respectively. Weighted average common shares outstanding increased 28% compared to the 1994 fourth quarter due to the conversion of preferred stock into common shares in December 1994. Reflecting the Home Furnishings Division as a discontinued operation, the Company recorded a loss, primarily non-cash and including goodwill, from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. of $18,377,000, or $2.48 per share, net of income tax benefits, in the fourth quarter. The 1995 fourth quarter loss reflects both the estimated loss on the sale of the discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: business as well as its operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. through the date of its expected disposition. For the year ended December 31, 1995, sales from continuing operations were $88.7 million versus sales from comparable operations of $76.8 million in the year ago period, an increase of 15%. The net loss applicable to common shares from continuing operations and before one-time charges was $307,000, or $0.04 per share, versus a net loss applicable to common shares from comparable operations of $315,000, or $0.06 per share last year. Income from continuing operations before one-time charges was $975,000 before provision for preferred stock dividends of $1,282,000 versus net income from comparable operations of $2,027,000 before provision for preferred dividends of $2,342,000 last year. Weighted average common shares outstanding increased 41% compared to 1994 due to the conversion of preferred stock into common shares in December 1994. The net loss applicable to common shares from continuing operations including one-time charges of $25,000,000 was $22,835,000 after provision for preferred stock dividends. The Company noted that its Button Division's continuing operation's sales increased by 7.4% in 1995 compared to 1994, which was partially attributable to the Company's sales of its three dimensional buttons. Gregory Cheskin, President and Chief Executive Officer said: "The full year and particularly our fourth quarter results reflect lower demand for thread used primarily by the automotive, furniture, and footwear industries. Our results were also impacted by lower than historical margins in our Thread Division due to increased raw materials pricing, increased labor costs, and certain operating inefficiencies which have been identified in our restructuring program. Our restructuring program is designed to aggressively address margin and operating efficiency improvements at the Thread Division, and to provide the Thread operations with the capability to increase profitability even during soft market conditions, such as now exist. Our Button Division continued to perform well, reflecting the strength of our brand franchise and talent of our team." Separately, the Company announced that it has amended its credit facility agreement effective March 15, 1996. The Company previously announced that it had been in violation of certain covenants under its credit agreement at December 31, 1995, which have been waived under the terms of the amended agreement. Among other provisions, the amended agreement includes both higher annual interest and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. as compared with those costs in the original agreement. The maturity date of the amended agreement also has been changed to July 1, 1997 from its original maturity date of December 31, 1999. In addition, the amended agreement provides for the payment of significant fees if certain repayment targets in respect to the credit facility are not met, and also contains certain covenants which directly relate to its planned disposition of assets associated with its Home Furnishings Division. Details of the amended credit facility agreement are described in the Company's 1995 form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filing with the Securities and Exchange Commission (SEC). Belding Heminway manufactures and markets industrial and consumer threads, and consumer sewing and crafts products, principally buttons. In addition to its headquarters in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , it has manufacturing or distribution facilities in Lansing, Iowa Lansing is a city in Allamakee County, Iowa, United States. The population was 1,012 at the 2000 census. Geography Lansing is located at (43.361525, -91.223378)GR1. , Hendersonville, North Carolina For the city in Vance County, North Carolina, see Henderson, North Carolina. Hendersonville is a city in Henderson County, North Carolina, USA, 22 miles (35 km) southeast of Asheville. , Watertown and Winsted, Connecticut Winsted is a census-designated place and an incorporated city in Litchfield County, Connecticut, United States. It is part of the town of Winchester, Connecticut.The population was 7,321 at the 2000 census. , and Bronx, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . Belding's Home Furnishings division manufactures decorative home furnishings fabrics through its manufacturing and distribution facilities in Emporia, Virginia Emporia is an independent city located within the confines of Greensville County in Virginia. The population was 5,665 at the 2000 census. The Bureau of Economic Analysis combines the city of Emporia with surrounding Greensville county for statistical purposes. .
BELDING HEMINWAY COMPANY, INC.
AND SUBSIDIARIES
CONDENSED STATEMENTS OF OPERATING RESULTS
(Amounts in thousands, except per share data)
Three Months Ended Year Ended
December 31, December 31,
1995 1994 1995 1994
Net sales from continuing operations $22,885 $21,287 $88,654 $76,767 Operating income before non- recurring charges $ 283 $ 1,252 $ 7,133 $ 7,385 Net income (loss) to common stockholders - continuing operations (1) (23,749) ( 581) (22,835) (315) Discontinued operations (net of tax) (18,377) 730 (18,000) 1,497 Net income (loss) applicable to common stockholders ($42,126) $ 149 ($40,835)$ 1,182 (2) Earnings per common share:
Continuing operations (1) $ (3.21) $ (0.10) $ (3.08) $(0.06)
Gain on preferred
redemption -- 0.71 -- 0.78
Discontinued operations (2.48) 0.12 (2.43) 0.28
Total ($5.69) $0.73 ($5.51) $1.00
Weighted average common shares outstanding (in thousands) 7,409 5,802 7,414 5,265 (1) - The net loss applicable to common stockholders from continuing in 1995 operations includes a pre-tax impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charge of $25 million, which is associated with the Company's Thread Division. (2) - Excludes gain of $4.099 million resulting from the conversion of preferred stock into common shares in December 1994.
CONSOLIDATED & SUMMARIZED BALANCE SHEET
(Dollars in thousands)
December 31, 1995 December 31, 1994
Current Assets $32,356 $ 31,518 Total Assets $94,124 $128,452 Current Liabilities $22,570 $ 21,163 Total Liabilities $86,622 $ 81,393 Stockholders' Equity: Preferred $ 22,179 $ 20,897 Common $(14,677) $ 26,162 CONTACT: BELDING HEMINWAY COMPANY, INC. Gary Silverman, 212/556-4700 or Morgen-Walke Associates Investor Contact: June Filingeri, Robert Weiner Media Contact: Leslie Feldman, Suzanne Miller 212/850-5600 |
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