DEP reports final audited fiscal 1995 results and moves stock to NASDAQ SmallCap Market from National Market.LOS ANGELES--(BUSINESS WIRE)--Nov. 1, 1995--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 : DEPCA/DEPCB) Wednesday announced final audited results for fiscal 1995. 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) reported that its final audited net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for fiscal 1995 were $127.7 million, compared with $138.3 million in the prior year. The decreases were primarily due to lower Agree and Halsa sales, which declined by $8.7 million, or 25 percent. The company reported a loss for fiscal 1995 of $2.9 million, or 47 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. , before a write-down of Agree and Halsa assets taken in the third quarter. This compares with a net loss of $3.6 million, or 57 cents per share, for the prior year. The write- down was $24.1 million, or $3.85 loss per share, net of tax benefit. Although domestic sales of the company's L.A. Looks and Dep styling gels increased double-digit, it was not sufficient to offset the lower Agree and Halsa sales, which declined by $11.5 million, or 42 percent. The company also announced that trading in the company's Class A and Class B common stock will be moved to the NASDAQ SmallCap Market from the NASDAQ National Market, effective Nov. 2, 1995. The shares will continue to be traded under the DEPCA DEPCA Digital Ethernet Personal Computer Adapter DEPCA Digital Ethernet Personal Computer Bus Adapter and DEPCB symbols. NASDAQ indicated that the reason for the transfer was that the company did not meet the National Market System's criteria for net tangible assets Net Tangible Assets Calculated as the total assets of a company, minus any intangible assets such as goodwill, patents and trademarks, less all liabilities and the par value of preferred stock. Also known as "net asset value" or "book value". as a result of the "goodwill" associated with the company's acquisition of the Agree and Halsa brands from S.C. Johnson & Son Inc. in August 1993. NASDAQ's net tangible asset Tangible Asset An asset that has a physical form such as machinery, buildings and land. Notes: This is the opposite of an intangible asset such as a patent or trademark. Whether an asset is tangible or intangible isn't inherently good or bad. calculation excludes "goodwill," an asset under generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting . In commenting on the situation, Robert Berglass, the company's chairman and president, said, "It is unfortunate that NASDAQ chooses to ignore the value of goodwill, a significant balance sheet asset for many consumer product companies, in its net tangible asset calculation." Berglass further commented: "We are diligently working with our investment bankers, Donaldson, Lufkin & Jenrette, to explore our strategic alternatives. In the meantime Adv. 1. in the meantime - during the intervening time; "meanwhile I will not think about the problem"; "meantime he was attentive to his other interests"; "in the meantime the police were notified" meantime, meanwhile , the company is currently meeting its fiscal 1996 sales goals and has positive cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses with over $5 million in cash on hand to fund operations." 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 INCOME STATEMENT DATA
(in thousands, except per-share data)
Three Months Ended 12 Months Ended
July 31, July 31,
1995 1994 1995 1994
(Unaudited) (Unaudited) Audited
Net sales/a $ 36,098/a $ 40,018 $ 127,689/a $ 138,331 Income (loss) from operations before write- down of Agree and Halsa assets 2,111 2,280 1,466 (879) Write-down in Agree and Halsa assets -- -- 25,166 -- Income (loss) from operations 2,111 2,280 (23,700) (879) Interest expense 1,627 1,355 6,177 4,578 Income (loss) before income taxes (credit) 657 948 (29,823) (5,373) Net income (loss) 657 760 (26,958) (3,583) Per-share data: Before write-down in Agree and Halsa assets 11 cents 12 cents (47 cents) (57 cents) Write-down in Agree and Halsa assets -- -- $ (3.85) -- Net income (loss) per share 11 cents 12 cents $ (4.32) (57 cents) Weighted average shares outstanding 6,244,899 6,238,652 6,244,106 6,250,239
/a: Sales decreased principally due to lower Agree and Halsa sales,
which declined by $3.3 million and $8.7 million for the three-
and 12-month periods ended July 31, 1995, respectively,
compared with the prior-year periods.
CONTACT: DEP Corp., Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. D. Lee Johnson, 310/604-0777, ext. 485 |
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