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 NEW YORK, Aug. 27 /PRNewswire/ -- DRS Industries, Inc. (NASDAQ: DRSS) today announced additional information concerning the results for its fiscal year ended April 30, 1993 as well as a brief overview of the outlook for DRS in the current fiscal year. On Aug. 20, 1993, DRS released its results concurrent with the filing of its 10-K report. The 1993 fiscal year results reflect the discontinuance of the company's wholesale distribution, real estate and retirement community businesses. The 1993 results do not include DRS' recently acquired Family Bargain Center unit, now the focus of DRS' operations, which will be consolidated as of the first quarter of fiscal 1994 (which ended July 31, 1993).
 For the fiscal year 1993, DRS incurred a net loss of $19,386,000, or $2.01 per share, consisting of a $16,147,000, or $1.67 per share, loss from discontinued operations and a $3,239,000, or $0.34 per share, loss from continuing operations. The loss from discontinued operations was primarily the result of the following events: i) the bankruptcy and subsequent liquidation of C-B/Murray Corporation in November 1992 which resulted in a loss of $7,599,000 which included operating losses, the write-off of DRS' investment in and loans to C-B/Murray, a charge for guarantees of C-B/Murray debt, and related professional fees, and ii) operating losses and charges related to the April sale of Mandel-Kahn in the amount of $8,062,000 which included operating losses, the write-off of DRS' loans to Mandel-Kahn, and a reserve for guarantees by DRS of Mandel-Kahn debt. The 1993 loss also included a $486,000 write-off of DRS' remaining investment in the retirement community business.
 As of April 30, 1993, DRS has discontinued and written-off all of its investments in the wholesale distribution, real estate and retirement community businesses. DRS does not expect to incur any additional charges with respect to any of the discontinued operations.
 As a result of the 1993 net loss, the company's stockholders' equity deficit is $9,288,000. The company also announced today that it has developed a two step plan that management believes it will be able to implement which would reverse the equity deficit through a private placement of up to $3,500,000 of common stock and a simultaneous exchange of a minimum of $7,000,000 of the company's outstanding debt for convertible preferred stock. Bastain Holdings and Kabushi Investments Limited, the company's two largest shareholders, have agreed to exchange into convertible preferred stock approximately $2,000,000 of debt that they loaned to the company. Bastain Holdings and Kabushi Investments and their principals continue to own approximately 45.2 percent of DRS' outstanding common stock (assuming exercise of their respective warrants and all management options). Benson A. Selzer, chairman and a director of the company, is the chairman of Bastain Holdings; Kabushi Investments is affiliated with the family of Joseph Eiger, vice chairman, executive vice president and a director of the company. DRS hopes to complete the private placement and debt exchange transactions by the end of October 1993.
 As previously stated, the 1993 results do not reflect the operations of Family Bargain. DRS acquired the off-price apparel retail chain in December 1992 while Family Bargain was operating in bankruptcy. DRS will include Family Bargain's results as of the day after it emerged from bankruptcy, May 29, 1993. Family Bargain's June/July sales were $19,749,374, 11.6 percent ahead of last year on a comparable store basis (sales at stores open during both periods). DRS anticipates releasing its first quarter results on or about September 15. Family Bargain's, and therefore DRS' sales and profitability will vary seasonally based on retail selling periods; the management of DRS anticipates the major portion of the company's profits to be earned during the holiday season which falls within DRS' third quarter.
 John Selzer, DRS' chief executive officer, said, "Although fiscal 1993 was a disappointing year for DRS, the company restructured itself through the discontinuation of all businesses other than Family Bargain. DRS management, with Family Bargain, is confident about its prospects for fiscal 1994 and beyond."
 -0- 8/27/93
 /CONTACT: John A. Selzer, chief executive officer of DRS Industries Inc., 212-980-9670/

CO: DRS Industries, Inc. ST: New York IN: SU: ERN

LD-TM -- NY002 -- 6489 08/27/93 09:02 EDT
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Publication:PR Newswire
Date:Aug 27, 1993

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