Hanover Direct reports 1996 second quarter results.WEEKHAWKEN, N.J.--(BUSINESS WIRE)--Aug. 5, 1996--Hanover Direct Inc. (AMEX AMEXSee: American Stock Exchange :HNV HNV Hebrew Names Version HNV High Nature Value (farmland) HNV Heilbronner Hohenloher Haller Nahverkehr GmbH (German) ) today reported financial results for the second quarter ended June 29, 1996. For the second quarter ended June 29, 1996, Hanover Direct reported revenues of $180.2 million, compared to revenues of $182.8 million for the second quarter of 1995. The net loss for the 1996 second quarter was ($12.5 million), or (13 cents) per common share, compared to a net loss of ($7.5 million), or (8 cents) per common share, in the second quarter of 1995. For the six months ended June 29, 1996, Hanover Direct reported revenues of $345.7 million, compared to revenues of $359.4 million for the six months ended July 1, 1995. The net loss for the 1996 first half was ($22.0 million), or (24 cents) per common share, compared to a net loss of ($12.4 million), or (13 cents) per common share, in the first half of 1995. President and Chief Executive Officer Rakesh K. Kaul stated, "While second quarter losses are unacceptably high, due primarily to continuing difficulties in our Domestications business, we were pleased with the performance of most of our other specialty catalog catalog, descriptive list, on cards or in a book, of the contents of a library. Assurbanipal's library at Nineveh was cataloged on shelves of slate. The first known subject catalog was compiled by Callimachus at the Alexandrian Library in the 3d cent. B.C. titles. In addition, a number of the strategies we have put in place in the areas of cost reduction and productivity are showing encouraging signs. On the demand side, we also saw improvements with second quarter demand for continuing catalogs at $172.9 million, or 10.6% above the comparable year-ago quarter. Further, the completion of the stock rights offering is the first step to improving the liquidity of the Company. As we execute our turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. plan, we expect to see a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impact as early as the fourth quarter of 1996." Kaul further noted that the company is close to announcing the addition of several new senior managers in key positions, including president of Domestications, vice president of operations for the home fashions distribution center in Roanoke, Va. and vice president of operations for the hardlines distribution center in Hanover, Pa. He said, "We are in the process of significantly strengthening our management team with highly qualified personnel who we believe represent the best in the business in their respective areas. Our ability to attract these individuals is further testament to our overriding (programming) overriding - Redefining in a child class a method or function member defined in a parent class. Not to be confused with "overloading". confidence in the long-term opportunities that Hanover Direct offers." Commenting on the progress at the home fashions distribution center, Kaul stated that the fixes have begun and reconfiguration of various aspects of the facility is well underway. The company expects to have the most important aspect of the modification program, which is the installation and retrofitting of the conveyer system, completed by October 1996. "We are on plan for completing the conveyer modifications in time for the holiday selling season and we anticipate further throughput The speed with which a computer processes data. It is a combination of internal processing speed, peripheral speeds (I/O) and the efficiency of the operating system and other system software all working together. 1. improvements by the end of this year," Kaul said. Kaul noted that the company's $50 million shareholder rights offering, which commenced on July 19, 1996, is continuing on plan and is expected to expire expire /ex·pire/ (ek-spi´er) 1. to exhale. 2. to die. ex·pire v. 1. To breathe one's last breath; die. 2. To exhale. on Aug. 16, 1996 and close on Aug. 23, 1996. Further, NAR NAR National Association of REALTORS NAR Nucleic Acids Research (journal) NAR National Association of Rocketry NAR Nationale Arbeidsraad (Dutch: National Labor Council; Brussels, Belgium) , the company's majority shareholder, maintains its commitment to purchase any unsubscribed Unsubscribed Newly issued securities that have not seen much interest, or subscriptions, from investors ahead of the issue date or have not been offered by brokerages. If you wanted to own the newly issued shares, you'd only be able to purchase them as you would any other stock common shares. Hanover Direct Inc. is a leading direct specialty retailer that markets, via a portfolio of branded specialty catalogs Specialty catalogs are a promotion and distribution technique commonly employed by direct marketers. They describe, graphically and verbally, a limited range of products. Specialty catalogs are a good promotion/distribution choice for new products. , home fashions, general merchandise and apparel, with 1995 total company revenues of $750 million. Hanover Direct titles include Domestications, a leading specialty home textiles catalog; The Company Store, an upscale direct marketer of down comforters and other down and related products for the home; Colonial Garden Kitchens, featuring work saving and lifestyle enhancing items for the kitchen and home; International Male, offering unique men's fashions with an international flair; Tweeds, the European-inspired women's fashion catalog; Kitchen & Home, an upscale kitchen and home products catalog; Gump's, a leading upscale catalog of exclusive gifts, which opened its new retail store in downtown San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden in March 1995; The Safety Zone, a direct marketer of safety, prevention and protection products; Silhouettes, featuring everyday, workout Workout Informal repayment or loan forgiveness arrangement between a borrower and creditors. workout 1. The process of a debtor's meeting a loan commitment by satisfying altered repayment terms. , special occasion and career fashions for larger-sized women; Undergear, a leader in activewear, workout wear and fashion underwear for men; Austad's, a direct marketer of golf equipment, related apparel and accessories; and Improvements, a leading do-it-yourself home improvement catalog. The company has a venture with Sears in which it mails several of its catalogs under various names to Sears customers. Cautionary Statements: In accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the Private Securities 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. Reform Law of 1995, we have identified the following 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. contained herein: As we execute our turnaround plan, we expect to see a favorable impact as early as the fourth quarter of 1996. Kaul further noted that the company is close to announcing the addition of several new senior managers in key positions... The company expects to have the most important aspect of the modification program, which is the installation and retrofitting of the conveyer system, completed by October 1996. Further, the completion of the stock rights offering is the first step to improving the liquidity of the company. "We are on plan for completing the conveyer modifications in time for the holiday selling season and we anticipate further throughput improvements by the end of this year..." Kaul noted that the company's $50 million shareholder rights offering, which commenced on July 19, 1996, is continuing on plan and is expected to expire on Aug. 16, 1996 and close on Aug. 23, 1996. The following are important factors, among others, that could cause the company's actual results to differ materially from those expressed in any forward-looking statements made by, or on behalf, of the company: A general deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. in the economic conditions in the United States leading to increased competitive activity including a business failure of a substantial size company in the retail industry; and a reduction in consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. generally or specifically with reference to the types of merchandise that the company offers in its catalogs; an increase in the failure rate of consumer indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. generally; and an increase in credit sales by the company accompanied by an increase in its bad debt experience with respect to consumer debt; a delay in the implementation of the actions to be taken by the company to increase the efficiency of its operations; rapid increases and decreases in the volume of merchandise that passes through the company's warehouse facilities; incurring larger than anticipated losses in future interim periods; the failure of the company to stem the losses attributable to Domestications; the failure of the Rights Offering to be consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. on a timely basis; the failure of the company to achieve quarterly profitable operating results by the end of fiscal 1996; the failure of the company to solve its operating problems at the new Roanoke fulfillment ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. center, including the installation and retrofitting of the facility's conveyer system; an increase in paper costs; the inability of the company to attract and retain high quality executives to fill open management positions. -0-
Hanover Direct Inc.
Consolidated Operating Summary
(in thousands except per share data and number of shares)
13 Weeks Ended 26 Weeks Ended
June 29, July 1, June 29, July 1,
1996 1995 1996 1995
Revenues $180,195 $182,774 $345,722 $359,365 Operating costs and expenses Cost of sales and operating expenses 120,283 114,851 228,721 227,565 Write-down of inventory of discontinued catalogs -- 3,945 1,100 3,945 Provision for facility closings -- 214 -- 530 Selling expenses 52,026 51,198 97,417 101,832 General and administrative expenses 14,299 16,468 29,632 32,090 Depreciation and amortization 3,483 2,086 6,481 3,537 Income (loss) from operations (9,896) (5,988) (17,629) (10,134) Interest expense, net (2,420) (1,386) (4,083) (2,138) Interest income 46 197 215 283 Income (loss) before income taxes (12,270) (7,177) (21,497) (11,989) Income tax provision (250) (313) (500) (403) Net income (loss) (12,520) (7,490) (21,997) (12,392) Preferred stock dividends (59) (59) (118) (105) Net income (loss) applicable to common shareholders ($12,579) ($7,549) ($22,115) ($12,497) Net income (loss) per share ($0.13) ($0.08) ($0.24) ($0.13) Weighted average shares outstanding 93,576,472 92,846,299 93,535,204 92,818,157 CONTACT: Hanover Direct Inc., Weehawken Debra A. Berliner, 201/319-3491 e-mail: 102521.1311@CompuServe.com |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion