P. A. BERGNER & CO. REPORTS THIRD QUARTER OPERATING PROFITS OF $2.2 MILLION
P. A. BERGNER & CO. REPORTS THIRD QUARTER
OPERATING PROFITS OF $2.2 MILLION
MILWAUKEE, Nov. 22 /PRNewswire/ -- P. A. Bergner & Co. filed financial statements today in U.S. Bankruptcy Court in Milwaukee, Wis., which, when aggregated with previously reported August and September results, showed earnings of $2.2 million before interest, tax, depreciation, amortization and Chapter 11 expenses (EBITDA) for its third quarter ended Nov. 2, 1991.
Total sales were $275 million, 2.2 percent ahead of projections established when the company filed for Chapter 11 on Aug. 23, 1991. Sales on a store-to-store basis were 7.2 percent less than the same period last year.
Total net income before taxes was reported at a $42.8 million loss for the quarter after non-cash and non-retail expenses of $15.0 million; interest payments of $8.1 million and Chapter 11 restructuring expenses of $22.0 million. These Chapter 11 expenses primarily comprised bank, legal and other professional fees associated with the Chapter 11 filing and the securing of DIP financing.
Stanton J. Bluestone, P. A. Bergner & Co. President, commented on the third quarter results: "Although it is indeed difficult to be operating in Chapter 11 and to report a $43 million loss in the third quarter, we have accomplished many positive results since our filing for Chapter 11 in August. The company has exceeded its sales and operating profits projection for the quarter and our inventory levels are now at approximately last year's dollar level, thanks to the support of our vendors. We have largely returned to normal credit terms and this has been a real boost to our cash position. Most importantly, we have achieved our primary goal of making our Chapter 11 status essentially invisible to our customers at the store level."
The company attributed the comparable 7.2 percent sales decline from last year to a significant drop in inventory for early September and October selling due to the lack of shipments at the time of the filing; severe inclement weather at the end of October in which a 26-inch snowstorm forced the closing of its entire Minnesota region for 2 days; and the continued uncertainty in the economy.
Bluestone commented further: "We have entered the fourth quarter in excellent shape. Our inventories are full and fresh and our sales promotion calendar has been strengthened in order to achieve our projected fourth quarter profit results. The only question mark is the customers' confidence in the economy. Our emphasis, therefore, is to convert as many shoppers to buyers and to realize a better share of the department store market. Based on what this organization has been able to achieve over the past three months, I believe we can meet our projections."
P. A. BERGNER & CO. HOLDING COMPANY
Consolidated Combined Results
August, September, October 1991
Total sales $275.0
Owned sales 247.2
Gross margin 98.4
SG&A expenses 96.2
Hotels and discontinued non-retail opers. 3.2
Chapter 11 and restructuring expenses 21.9 (A)
Net income before taxes (42.8)
(A) -- Includes approximately $17.0 bank financing fees and approximately $4.5 attorney charges and professional fees.
/CONTACT: Edward P. Carroll, Jr., of P. A. Bergner & Co., 414-347-5340, or Jerry Seeman of Burson-Marsteller, 212-614-5135, for P. A. Bergner & Co./ CO: P. A. Bergner & Co. ST: Wisconsin IN: REA SU: ERN KD -- NY076 -- 6577 11/22/91 18:25 EST