Printer Friendly

L.A. GEAR ANNOUNCED ESTIMATED RESULTS

 LOS ANGELES, Dec. 1 ~PRNewswire~ -- L.A. Gear Inc. (NYSE: LA) announced today that it is estimating a loss from continuing operations of approximately $27 million to $31 million for the fiscal 1992 fourth quarter, and a $69 million to $73 million loss from continuing operations for its fiscal year ended Nov. 30, 1992. The loss applicable to common stock is estimated to be between $29 million and $33 million ($1.27 to $1.44 per common share) for the 1992 fourth quarter, and between $77 million and $81 million ($3.62 to $3.80 per common share) for the 1992 fiscal year. The company also announced today that it expects operating losses will continue during at least the first six months of fiscal 1993.
 The company's estimated fourth quarter loss includes restructuring charges of approximately $10 million primarily for anticipated costs associated with the realignment and consolidation of the company's management information systems, reduced warehousing needs and additional headcount reduction, and also includes $1.1 million paid in settlement of patent litigation. The additional restructuring charges reflect necessary steps in the implementation of the company's ongoing strategies aimed at positioning the company to meet the challenges that lie ahead.
 These estimated losses and anticipated charges represent management's best estimates based on currently available information and may be affected by events occurring after the date hereof but prior to the closing of the company's books. The actual amounts will be determined when the company closes the books for its fourth quarter and fiscal year-end.
 Fiscal 1992 marked a transition period for the company as it began implementation of a long term restructuring program. During the initial phases of that program, new management substantially strengthened the company's balance sheet, implemented new cost control and reduction measures and realigned sourcing and production to improve quality control and procurement efficiencies. The company also developed and began the execution of new product, marketing and distribution strategies, including the introduction of innovative products in the company's athletic, lifestyle and children's lines. While the company is encouraged by its progress in these areas, operating results continue to suffer.
 The company's improved liquidity position has allowed it to terminate its revolving bank credit facility, which was scheduled to expire in September 1993. Such facility had not been used for cash borrowings since March 31, 1992. The terminated credit facility was replaced with a new $50 million letter of credit facility. Outstanding letters of credit under the new facility are required to be cash collateralized, generally on a dollar-for-dollar basis. On Nov. 25, 1992, the company had approximately $30 million of letters of credit outstanding and cash and cash equivalent balances of approximately $82 million (including amounts required to collateralize outstanding letters of credit). The company's new letter of credit facility is scheduled to expire at the end of February 1993. The company anticipates completing a longer term arrangement for obtaining letters of credit prior to the expiration of the interim letter of credit facility.
 L.A. Gear is a leading designer, developer and marketer of a broad range of quality athletic and casual~lifestyle footwear.
 -0- 12~1~92
 ~CONTACT: Michael Sitrick or Jeff Lloyd of Sitrick And Co., 310-788-2850~
 (LA)


CO: L.A. Gear Inc. ST: California IN: TEX SU: ERP

JB-BP -- LA030 -- 4110 12~01~91 17:18 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 30, 1992
Words:554
Previous Article:BRISTOL-MYERS SQUIBB INCREASES DIVIDEND
Next Article:CALIFORNIA REFINANCES
Topics:


Related Articles
L.A. GEAR NAMES OGILVY & MATHER AD AGENCY
L.A. GEAR REPORTS FINANCIAL RESULTS FOR FOURTH QUARTER AND FISCAL YEAR
L.A. GEAR REPORTS FINANCIAL RESULTS FOR THIRD QUARTER
L.A. GEAR REPORTS FINANCIAL RESULTS
L.A. GEAR REPORTS FIRST QUARTER LOSS
L.A. GEAR REPORTS SIX MONTH LOSS

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters