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THE KENDALL COMPANY COMPLETES FINANCIAL RESTRUCTURING; RELEASES SECOND QUARTER RESULTS

 THE KENDALL COMPANY COMPLETES FINANCIAL RESTRUCTURING;
 RELEASES SECOND QUARTER RESULTS
 MANSFIELD, Mass., Sept. 3 /PRNewswire -- The Kendall Company and its parent, Kendall International, Inc. (formerly known as CDK Holding Corporation) announced today that consolidated operating income for the second quarter of 1992 was $26 million, an increase of 68 percent over 1991's comparable quarter. Sales of $194.4 million for the second quarter of 1992 were 3.6 percent higher than the prior year's quarter. The most significant factor contributing to the increase in operating income resulted from a favorable sales mix toward higher margin products. Additionally, cost reductions impacted the company's results.
 For the six month period ended June 30, 1992, the company reported a 64 percent increase in operating profit to $47.2 million, as compared to $28.7 million of operating profit in the first half of 1991. Sales for the first half of 1992 were $381.6 million, up 7 percent over the same period last year.
 The increase in sales was realized despite the lack of pipeline product sales in 1992 to the former Soviet Union, compared to $6.4 million and $15.5 million of such sales in the second quarter and first six months of 1991, respectively. That means all of the other businesses of Kendall had year-to-year sales increases of 7.2 percent in the second quarter and 12 percent in the first half of 1992.
 Richard A. Gilleland, Kendall's chairman, president and chief executive officer, said, "The company's performance is a reflection of the caliber of our new marketing programs, our cost control activities and our employees' commitment to excel."
 The financial results were released as part of a Form 10 Registration Statement filed with the Securities and Exchange Commission, to facilitate registration of Kendall International, Inc.'s new common stock. The stock was issued as part of its recently completed financial restructuring and emergence from its prepackaged Chapter 11 proceeding. On July 7, 1992, Kendall successfully completed the restructuring of its subordinated debt and equity, which significantly reduced its debt service obligations and improved its capital structure. The restructuring involved a substantial new equity investment from a group led by the Clayton & Dubilier Private Equity Fund IV Limited Partnership and Joseph Littlejohn & Levy Fund, L.P. The restructuring also resulted in amendments to Kendall's senior bank credit agreement to, among other things, extend and modify the scheduled maturity of term loan borrowings. Holders of the company's old subordinated debt received in exchange for such securities, a combination of cash, new common stock and a new series of subordinated notes of Kendall.
 Gilleland reported, "We are pleased to announce the completion of Kendall's financial restructuring. We have been able to complete the process with no significant interruptions in our ability to develop, manufacture and distribute quality Kendall products to our customers. This has happened as a direct result of the loyalty and hard work of our employees, our customers and our vendors. Our new capitalization will allow us to take full advantage if the market opportunities we see."
 KENDALL CORPORATION
 Financial Results
 The following table summarizes the company's results, for the three- and six-month periods ended June 30, 1992, the date the restructuring has been deemed effective for accounting purposes, including earnings per share based on its pre-restructuring capitalization:
 Three months ended Six months ended
 June 30, June 30,
 1992 1991 1992 1991
 Net sales $194.4 $187.7 $381.6 $356.2
 Income from continuing
 operations before
 depreciation, amortization,
 interest, taxes and
 reorganization items $34.6 $24.3 $64.5 $46.4
 Depreciation 5.5 5.4 11.0 10.9
 Amortization 3.1 3.4 6.3 6.8
 Operating income 26.0 15.5 47.2 28.7
 Interest 27.9 27.8 55.8 54.8
 Loss from continuing
 operations before taxes
 and reorganization items (1.9) (12.3) (8.6) (26.1)
 Reorganization items 38.3 2.2 38.3 2.7
 Income taxes 1.0 1.0 1.9 1.9
 Loss from continuing oper. (41.2) (15.5) (48.8) (30.7)
 Gain from discontinued
 operations --- 3.4 --- 3.4
 Extraordinary gain on
 forgiveness of debt 277.3 --- 277.3 ---
 Net Income (Loss) $236.1 ($12.1) $228.5 ($27.3)
 Earnings (Loss) per share:
 Loss from continuing
 operations (36 cents) (13 cents) (43 cents) (26 cents)
 Net income (loss) $ 2.04 (10 cents) $1.97 (23 cents)
 The company reported that if the new capitalization had been in place Jan. 1, 1992, interest expense would have been lower by approximately $18.4 million and $37.0 million for the three- and six- months periods ended June 30, 1992, respectively. As a result, on a pro forma basis, the company's net income from continuing operations would have been $6.8 million and $11.4 million, and pro forma earnings per share of new common stock would have been 35 cents and 59 cents for the three- and six-months periods ended June 30, 1992, respectively.
 The Kendall Company manufactures, markets and distributes medical supplies and devices for the hospital, alternate site health care and home health care markets, as well as adhesive products and tapes for industrial and consumer markets.
 -0- 9/3/92
 /CONTACT: James S. Bacciocco of The Kendall Company, 508-261-8045/ CO: The Kendall Company ST: Massachusetts IN: MTC HEA SU: ERN


TM -- NE008 -- 6420 09/03/92 12:23 EDT
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Date:Sep 3, 1992
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