CenCor, Inc. Releases the Value of Its Net Assets in Liquidation as of June 30, 1999.MISSION, Kan.--(BUSINESS WIRE)--Aug. 18, 1999-- CenCor, Inc. (the "Company") released the value of its net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. in liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy as of June 30, 1999. The Company's net assets in liquidation decreased by $5,898,000 for the six months ended June 30, 1999, from $10,191,000 at Dec. 31, 1998, to $4,293,000 at June 30, 1999. The decrease resulted principally from the partial liquidating distribution issued on June 7, 1999, and the recording of a reserve for estimated liquidation and contingency contingency n. an event that might not occur. costs. The amount of such reserve will be adjusted during the course of the liquidation of the Company as more accurate information concerning actual or potential liabilities becomes available. The Company is a dissolved dis·solve v. dis·solved, dis·solv·ing, dis·solves v.tr. 1. To cause to pass into solution: dissolve salt in water. 2. Delaware corporation A Delaware corporation is a corporation chartered in the U.S. state of Delaware. Delaware is well known as a corporate haven, and thus, over 50% of US publicly-traded corporations and 58% of the Fortune 500 companies are incorporated in the state. in the process of liquidation. The Company has previously paid partial liquidating distributions in the amount of $5.35 per share on March 9, 1998, and $4.25 per share on June 7, 1999. After the partial liquidating distributions and assuming the Company had fully liquidated DAMAGES, LIQUIDATED, contracts. When the parties to a contract stipulate for the payment of a certain sum, as a satisfaction fixed and agreed upon by them, for the not doing of certain things particularly mentioned in the agreement, the sum so fixed upon is called liquidated damages. (q.v. and distributed its assets by June 30, 1999, the Company's stockholders would have received an additional $4,293,000 in distributions or approximately $3.18 per share, less costs to liquidate To pay and settle the amount of a debt; to convert assets to cash; to aggregate the assets of an insolvent enterprise and calculate its liabilities in order to settle with the debtors and the creditors and apportion the remaining assets, if any, among the stockholders or owners of the . The Company's income from liquidating activities for the six months ended June 30, 1999, was $225,000 in interest income from its investments in short-term government and government-agency investments and a $34,000 income tax benefit from a federal income tax refund Tax refund Money back from the government when too much tax has been paid or withheld from a salary. . The Company's expenses from liquidating activities for the six months ended June 30, 1999, of $418,000 consisted primarily of salaries, professional fees, and other estimated liquidating costs. The Company expects to make a final distribution in October 1999 provided that the Company is not notified by the IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. of its intent to examine any of the Company's tax returns that are eligible for examination. The Company will also be required to pay or provide for any other post-liquidation costs prior to any final distribution on its outstanding common stock. The Company believes that it has adequate reserves for all of its material known contingent liabilities Contingent Liability 1. The possibility of an obligation to pay certain sums dependent on future events. 2. Defined obligations by a company that must be met, but the probability of payment is minimal. Notes: 1. . Statements contained in this release that are not based on historical fact are "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. " within the meaning 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. 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 factors set forth above. Undue reliance should not be placed on these forward-looking statements, which speak only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . The Company undertakes no obligations to publicly release revisions to these forward-looking statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date hereof or to reflect the occurrence of unanticipated events. -0-
Net Assets in Liquidation:
June 30, December 31,
1999 1998
Cash and cash equivalents $ 4,883,000 $ 9,833,000
Other assets 49,000 860,000
Total assets 4,932,000 10,693,000
Accounts payable and accrued liabilities 440,000 445,000
Reserves for liquidation and contingencies 121,000 --
Partial liquidating distribution payable 78,000 57,000
Total liabilities 639,000 502,000
Net assets in liquidation 4,293,000 10,191,000
Number of common shares outstanding 1,350,384 1,350,384
Net assets in liquidation per share $ 3.18 $ 7.55
Changes in Net Assets in Liquidation:
6 Months 6 Months
Ended Ended
June 30, 1999 June 30, 1998
Income from liquidating activities:
Investment income $ 225,000 $ 340,000
Other income 34,000 6,000
259,000 346,000
Expenses from liquidating activities:
Salaries and related benefits 162,000 104,000
Professional fees 106,000 103,000
Other expenses 150,000 --
418,000 207,000
Partial liquidation distribution 5,739,000 --
Increase (decrease) in net assets in
liquidation $(5,898,000) $ 139,000
3 Months 3 Months
Ended Ended
June 30, 1999 June 30, 1998
Income from liquidating activities:
Investment income $ 109,000 $ 138,000
Other income -- 54,000
109,000 192,000
Expenses from liquidating activities:
Salaries and related benefits 111,000 53,000
Professional fees 70,000 73,000
Other expenses 89,000 --
270,000 126,000
Partial liquidation distribution 5,739,000 --
Increase (decrease) in net assets in
liquidation $(5,900,000) $ 66,000
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