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LAMONTS ANNOUNCES ITS $13.0 MILLION CAPITAL INFUSION/DEBT REDUCTION PLAN AND THIRD QUARTER AND NINE MONTH RESULTS

 BELLEVUE, Wash., Sept. 14 /PRNewswire/ -- Lamonts Apparel Inc. (NASDAQ: LMNT) announced today that it has filed a Registration Statement with the Securities and Exchange Commission with respect to a Rights Offering to all holders of shares of the company's Common Stock of transferable subscription rights (the "Rights") to subscribe for and purchase for $3.00 one share of Convertible Preferred Stock, liquidation preference $3.00 per share, of the company (the "Preferred Stock") for every two shares of Common Stock held by each such holder at the close of business on the record date to be established by the company's Board of Directors after the registration statement relating to the Rights Offering is declared effective.
 The company's two largest stockholders have agreed, subject to certain conditions, to subscribe for and purchase all of the Preferred Stock available to them pursuant to their portion of the Rights to be distributed to all stockholders. These two stockholders, together with the holders of approximately 90 percent of the company's Senior Notes, have agreed, subject to certain conditions, to purchase any Preferred Stock available after satisfaction of all Rights which are exercised. Therefore, subject to certain conditions, sale of all of the Preferred Stock is assured.
 The company will use the net proceeds of the Rights Offering to repurchase $13.0 million aggregate principal amount of Senior Notes, at par. After the repurchase, $62.0 million of Senior Notes will remain outstanding. In connection with the Rights Offering, the holders of the Senior Notes have agreed, subject to certain conditions, to amend the Senior Notes to, among other things, reduce the interest rate on the Senior Notes from 11 1/2 percent to 10 1/4 percent and add certain call protection.
 Additionally, the company has entered into an amended and restated Working Capital Facility with its bank, which expires on April 30, 1995 and which becomes effective upon the consummation of the Rights Offering and related transactions.
 A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any State in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such State.
 The company also announced today its results for the third quarter and nine months ended July 31, 1993, which showed a reduction in its net loss even with revenue declines.
 For the quarter, Lamonts revenues were $58.7 million, off 5.1 percent from last year's $61.9 million with comparable-store revenues decreasing 5.8 percent. The decline in total and comparable store revenues is primarily attributable to a significant decrease in revenues in the month of June, together with relatively flat revenues in May and July as compared to the prior year. The predominate factor contributing to the decline in June revenues was the unseasonably cold weather in all of the company's marketing regions except Alaska. Although the unseasonably cold weather continued through July, the Back-To-School and Semi-annual Coat Sales revenues compensated for continuing sluggish sales of summer merchandise. Other factors contributing to the decline in revenues in 3rd Quarter 1993 included the continued sluggish economy in the Pacific Northwest and the general lower demand for apparel being experienced by the company and other apparel retailers. Management believes that recent revenues have been and will continue to be adversely affected in part by a weak retail environment and a decline in consumer confidence.
 The company also reported a $2.4 million reduction in its net loss to $3.1 million in third quarter 1993, as compared to a net loss of $5.5 million in Fiscal 1992's third quarter. The company stated that the reduction in net loss was primarily due to lower interest expense and the reversal of deferred tax credits recorded in connection with the company's recapitalization completed in October 1992.
 For the nine months ended July 31, 1993, Lamonts recorded revenues of $188.6 million, off 3.0 percent from the $194.4 million in the 1992 period, with comparable-store revenues down 3.9 percent.
 The company's net loss of $5.4 million for the nine months ended July 31, 1993, represented a reduction of $7.0 million as compared to the net loss of $12.4 million for the nine month period in the prior year. Again, the company attributed the reduction in net loss primarily to lower interest expense and the reversal of deferred tax credits recorded in connection with the company's recapitalization.
 Lamonts, a leading specialty apparel retailer, operates 51 full-line and five Lamonts For Kids stores throughout the Pacific Northwest, Alaska, the Intermountain states, and the upper Midwest. The company opened a new full-line store in Moses Lake, Washington on July 31, 1993, and plans to open a new full-line store in Astoria, Ore. in November 1993 in time for the Holiday Season.
 FINANCIAL HIGHLIGHTS
 LAMONTS APPAREL INC.
 Consolidated Statements of Operation
 (Dollars in thousands, except per share data)
 (unaudited)
 Quarter Quarter Nine Nine
 Ended Ended Months Ended Months Ended
 7/31/93 8/01/92 7/31/93 8/01/92
 Revenues $58,722 $61,872 $188,648 $194,389
 Net Loss (3,097) (5,540) (5,448) (12,411)
 Net loss per
 common share(a) $ (0.33) $(31.19) $ (0.58) $ (70.95)
 Weighted average
 common shares
 and equivalents
 outstanding(b) 9,377,891 185,970 9,473,032 185,970
 (a) Calculated after giving effect to dividends accumulated on preferred stock of $261,000 for the quarter ended Aug. 1, 1992 and $784,000 for the nine months ended Aug. 1, 1992.
 (b) The weighted average common shares and equivalents outstanding for the quarter and nine months ended Aug. 1, 1992 have been restated to reflect the one-for-30 reverse stock split that occurred on Oct. 30, 1992. If the shares and common share equivalents issued pursuant to the recapitalization of the company in October 1992 had been outstanding during the entire quarter and nine month period, net loss per common share would have been $(0.59) and $(1.33), respectively and the weighted average common shares and equivalents outstanding would have been 9,353,018 for both the quarter and nine months ended Aug. 1, 1992.
 -0- 9/14/93
 /CONTACT: Earle Spokane of Lamonts Apparel, 206-644-5800/
 (LMNT)


CO: Lamonts Apparel Inc. ST: Washington IN: REA SU: ERN

RB-IC -- SE003 -- 1923 09/14/93 16:31 EDT
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Date:Sep 14, 1993
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