CenCor announces financial results.KANSAS CITY Kansas City, two adjacent cities of the same name, one (1990 pop. 149,767), seat of Wyandotte co., NE Kansas (inc. 1859), the other (1990 pop. 435,146), Clay, Jackson, and Platte counties, NW Mo. (inc. 1850). , Mo.--(BUSINESS WIRE)--Nov. 27, 1995--CenCor Inc. reported the results of its operations for the six months ended June 30, 1995. As previously reported, the company completed the sale of its sole operating subsidiary An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. , Century Acceptance Corp., on June 30, 1995. As a result of the sale, the company realized income 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 $19,932,000 and net income for the six months ended June 30, 1995 of $18,120,000 ($9.98 per share). Century, a consumer finance business, was sold to Fidelity Acceptance Corp., a subsidiary of Bank of Boston Corp. Under the terms of the sale, Century received approximately $128.5 million for substantially all of its assets. As part of the transaction, $5 million of the sale proceeds were placed in escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. to secure certain indemnification Indemnification Used in insurance policy agreements as to compensation for damage or loss. In the context of corporate governance, Director Indemnification uses the bylaws and/or charter to indemnify officers and directors from certain legal expenses and judgements resulting from obligations of Century and the company to the buyer that run through July 1, 1998. Century was able to redeem all of its outstanding secured notes held by the lenders for a purchase price equal to the principal amount of the secured notes (approximately $100 million) together with interest. The lenders also surrendered for cancellation outstanding warrants which would have allowed them to acquire up to 30% of Century. As a result of its 1993 debt restructuring Debt Restructuring A method used by companies with outstanding debt obligations to alter the terms of the debt agreements in order to achieve some advantage. Notes: , the company currently has outstanding non-interest bearing debt consisting of approximately of $17.2 million in notes and $11.5 million in convertible notes due July 1, 1999. The convertible notes are convertible at the company's option at the rate of one share of common stock for each $20 principal amount of convertible notes after at least $17.5 million of the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the sale of Century are distributed to CenCor. The company anticipates converting the convertible notes into shares of common stock in 1996. Management expects that 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 of the company will not occur prior to July of 1998. In the event of liquidation, the company's liquidation value Liquidation value Net amount that could be realized by selling the assets of a firm after paying the debt. may be adversely affected by claims arising from the indemnification obligations to the buyer of Century resulting from the sale of Century's assets, income tax liabilities, or other factors. Conversely, the company's liquidation value may be enhanced by its ability to realize the value of securities issued by and receivables transferred from ConCorde Career Colleges Inc. in settlement of certain amounts owned and the company's ability to collect the balance owed of these securities and receivables. Subsequent to the sale of Century's assets, the company's operations will continue to focus on the collection of various amount owed to it, including the collection of the ConCorde Junior Secured Debenture, 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. , and the previously charged-off ConCorde receivables received in payment of accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. . The company will also closely monitor claims arising from indemnification obligations to the buyer of Century in order to maximize the value of the escrow fund established as a result of the sale. -0- Operating results for the six months ended June 30 are as follows:
1995 1994
Income $782,000 $230,000 Expenses 2,594,000 1,244,000 Income from discontinued operations 19,932,000 217,000 Net income (loss) 18,120,000 (797,000) Income (loss) per share $9.98 $(0.44) Weighted average shares outstanding 1,815,080 1,815,080 Operating results for the three months ended June 30 are as follows:
1995 1994
Income $171,000 $229,000 Expenses 1,962,000 653,000 Income (loss) from discontinued operations 20,724,000 (73,000) Net income (loss) 18,933,000 (497,000) Income (loss) per share $10.43 $(0.27) Weighted average shares outstanding 1,815,080 1,815,080 CONTACT: CenCor Inc., Kansas City Jack Brozman, 816/221-5833 |
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