DEP Corp. shows improvement in operating income and cash flow for the third quarter and nine-month periods.LOS LOS Length of stay, see there ANGELES--(BUSINESS WIRE)--May 30, 1996--DEP Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on SmallCap:DPCAQ,DPCBQ) reported an improvement in operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. and cash flow for both its third quarter and nine-month periods. Operating income in its third fiscal quarter ended April 30, 1996, was $1 million, compared with a loss of $2.1 million for the same period in the prior year. For the nine months, operating income was $2.4 million in the current year, compared with a loss of $645,000 for the comparable period last year. Last year's operating loss 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. figures exclude the writedown writedown A reduction in the value of an asset carried on a firm's financial statements. For example, the firm's accountants, believing the inventory is overvalued, may decide to take a writedown by reducing inventory valuation. in the value of Agree and Halsa assets. Sales for the third quarter this year were $29.6 million, compared with $29.2 million in the same period last year. Sales for the nine months were $86.3 million, compared with $91.6 million for the first nine months of the prior year. Net losses for the current three- and nine-month periods were $979,000 and $3.2 million, or 16 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. and 51 cents per share, respectively, compared with net losses of $26.9 million and $27.6 million, or $4.30 per share and $4.42 per share, for the prior year's periods. The losses for the current three- and nine-month periods include 4 cents per share and 7 cents per share, respectively, related to reorganization expenses. The three- and nine-month periods ended April 30, 1995, included an after-tax charge of $24.1 million, or $3.85 per share, resulting from a writedown in the asset value of Agree and Halsa. The current periods also were impacted by a 6 percent and 15 percent increase in interest expense over last year's periods. As previously reported, DEP DEP Deposit DEP Deputy DEP Department of Environmental Protection DEP Dependent DEP Departure DEP Depot DEP Deposition DEP deployed (US DoD) DEP Data Execution Prevention (computer security) has initiated litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. against S.C. Johnson & Son Inc., related to the purchase of Agree and Halsa. The U.S. District Court for the Central District recently rescheduled the trial to commence on Sept. 6, 1996. Robert Berglass, president and chief executive officer of DEP, said that management is pleased with the progress being made in its efforts to restore the company to more acceptable levels of profitability. He said that in addition to the improved operating results, the company continues to have positive cash flow. The company entered its fourth quarter with more than $8 million of cash on hand. "Programs implemented over the past 12 months are beginning to show results," he said. "Our cost reduction programs reduced SG&A expenses as planned. We have also substantially tightened our inventory levels, while continuing to maintain excellent service levels with our retail customers." Commenting on the quarter results, Berglass said: "The refinement in our marketing efforts has resulted in improved sales in our hair, skin and oral-care products. Additionally, we are actively pursuing new customers in an effort to expand our private label business. The result of these efforts should be that additional volume in future periods will utilize excess manufacturing capacity and make our operations more efficient by reducing per-unit overhead costs overhead costs see fixed costs. ." Commenting the chapter proceedings, he said that the company is gratified grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. by the overwhelming support it has received from its suppliers, retail customers and international distributors. "We continue to have open lines of credit with virtually all of our suppliers. We have obtained approval from the court for full use of our cash collateral and do not anticipate having to secure any debtor-in-possession financing Debtor-in-possession financing New debt obtained by a firm during the Chapter 11 bankruptcy process, Federal Bankruptcy Rule 4001 (c)(1). This financing is unique because it is secured, that is, it has priority over existing debt, equity and other claims. ," he said. "With the support of Western International Media, the company's media buying service, DEP has been able to continue its consumer advertising campaigns without any interruption INTERRUPTION. The effect of some act or circumstance which stops the course of a prescription or act of limitation's. 2. Interruption of the use of a thing is natural or civil. . The company's promotional program of its brands has also continued, as scheduled, with our domestic and international customers." DEP is a consumer products company that develops, manufactures and markets a wide variety of hair, oral and skin-care products under 10 major brand names: Dep, L.A. Looks, Agree, Halsa, Lilt, Topol, Lavoris, Natures Family, Porcelana and Cuticura. -0-
DEP. CORP. AND SUBSIDIARIES
Consolidated Condensed Statements of Income
(Unaudited)
Three months ended Nine months ended
April 30, April 30,
1996 1995 1996 1995
Net sales $29,568,000 $29,239,000 $86,309,000 $91,591,000 Gross profit 18,453,000 17,721,000 54,268,000 57,708,000 Selling, general and administrative expense 17,464,000 19,869,000 51,846,000 58,353,000 Income (loss) from operations before writedown and reorganization 989,000 (2,148,000) 2,422,000 (645,000) Writedown in value of Agree/Halsa assets -- 25,166,000 -- 25,166,000 Reorganization items 261,000 -- 452,000 -- Interest expense 1,680,000 1,578,000 5,240,000 4,550,000 Income (loss) before income tax benefit (979,000) (28,930,000) (3,169,000) (30,480,000) Income tax benefit -- 2,060,000 -- 2,865,000 Net income (loss) $ (979,000)$(26,870,000) $(3,169,000)$(27,615,000) Per-share data: Before reorganization items and writedown in Agree/Halsa assets (12 cents) (45 cents) (44 cents) (57 cents) Reorganization items (4 cents) -- (7 cents) -- Writedown in Agree/Halsa assets -- $ (3.85) -- $ (3.85) Net income (loss) per share (16 cents) $ (4.30) (51 cents) $ (4.42) Weighted average shares outstanding 6,251,140 6,244,900 6,250,110 6,243,841 CONTACT: DEP Corp., Rancho ran·cho n. pl. ran·chos Southwestern U.S. 1. A hut or group of huts for housing ranch workers. 2. A ranch. Dominguez, Calif. D. Lee Johnson Lee Johnson is the name of:
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