DEP reports improved operating income and increased sales in quarter following emergence from Chapter 11 bankruptcy.LOS LOS Length of stay, see there ANGELES--(BUSINESS WIRE)--March 18, 1997--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 Market:DEPC DEPC Diethyl Pyrocarbonate DEPC Down East Partnership for Children DEPC Data Evaluation and Publication Committee ) Tuesday reported a 5 percent increase in sales, due to the performance of its Dep and L.A. Looks brands, and improved operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. for the three months following the conclusion of its Chapter 11 proceeding. 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 the second quarter ended Jan. 31, 1997, were $29.1 million, up from $27.8 million for the same period last year. Income from operations for the three months rose to $1.5 million from $19,000 during the prior-year period. Net income for the second quarter was $64,000, or 1 cent per share, compared with a net loss of $1.8 million, or 29 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. , last year. "We are extremely pleased with our progress following the conclusion of the Chapter 11 proceedings Chapter 11 Proceedings Provisions of the Bankruptcy Reform Act under which the debtor firm is reorganized by a court because the estimated value of the reorganized firm exceeds the expected proceeds from its liquidation. ," said Robert Berglass, president and chief executive officer of DEP. "We improved 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. -- the best measure of our performance -- by increased sales combined with the positive effects of our cost reduction programs. Additionally, new advertising campaigns along with improved promotional activity have been recently introduced for the L.A. Looks and DEP brands." For the six months ended Jan. 31, 1997, net sales were $57.1 million, up from $56.7 million for the first six months of the previous year. Income from operations for the six months was $1.7 million, up 19 percent from $1.4 million for the same prior-year period. The company reported a net loss of $2 million, or 31 cents per share, compared with a net loss of $2.2 million, or 35 cents per share, for the same period last year. Earnings were affected by a sales mix sales mix See product mix. of lower margined products and higher interest expense. Interest expense for the three- and six-month periods of this year increased to $1.8 million and $3.7 million, respectively, compared with $1.7 million and $3.6 million for the same periods of last year. In addition, the company reported cash availability of $12.2 million as of Jan. 31, 1997. "Looking ahead at the balance of fiscal 1997 and beyond, our goal is to strengthen and build sales and earnings by, among other things, improving the support of our existing brands, launching higher margined products and continuing to control costs," Berglass said. "While much more work remains to be completed, I am convinced that through the dedication of our employees and the continued support of our suppliers, we will achieve our goals and enhance stockholder value." DEP Corp. is a consumer products company that develops, manufactures and markets a wide variety of personal care products under 10 major brand names: Dep, L.A. Looks, Agree, Halsa, Lilt, Natures Family, Porcelana, Cuticura, Topol and Lavoris. -0-
DEP CORP. AND SUBSIDIARIES
Consolidated Income Statement Data
(In thousands, except per-share data)
Three Months Ended Six Months Ended
Jan. 31, Jan. 31,
(Unaudited) (Unaudited)
1997 1996 1997 1996
Net sales $29,109 $27,813 $57,122 $56,741
Selling, general
and administrative
expenses 16,225 17,293 33,266 34,382
Income from
operations 1,518 19 1,702 1,433
Interest expense 1,758 1,694 3,717 3,560
Reorganization
items (302) 92 (3) 191
Net income
(loss) $64 ($1,807) ($1,999) ($2,190)
Net income
(loss) per share 1 cent 29 cents 31 cents 35 cents
Weighted average
shares outstanding $6,804,245 6,251,140 6,527,693 6,251,140
NOTE: The six months ended Jan. 31, 1997, includes $640,000 of
expenses incurred due to the recall of skin care products
in test market.
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:
or Sitrick & Co. Ann Julsen, 310/788-2850 |
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