WCI HOLDINGS CORP. ANNOUNCES YEAR-END RESULTS
WCI HOLDINGS CORP. ANNOUNCES YEAR-END RESULTS SANTA MONICA, Calif., March 25 /PRNewswire/ -- WCI Holdings Corp.
today announced results for its fiscal 1991 year ended Jan. 25, 1992. Revenues from continuing operations for fiscal 1991 were $2,166.5 million, compared with $2,308.8 million for fiscal 1990. Operating income for fiscal 1991 increased to $78.6 million from $68.3 million in fiscal 1990 due in part to a record performance in both sales and operating income from the company's upholstered fabric business, Mastercraft, as well as the positive impact of substantial performance improvement in the company's Kayser-Roth Hosiery unit. Prior fiscal year results included restructuring costs of $22.3 million. Continuing operations lost $69.0 million in 1991 compared to a loss of $71.7 million in 1990. After losses from discontinued operations, extraordinary item and the cumulative effect of a change in accounting for postretirement benefits in the amount of $42.3 million, the company reported a net loss of $133.8 million in fiscal 1991 vs. a net loss of $57.9 million in 1990.
The operating performance of the company's businesses, while adversely impacted by the recessionary environment, also reflected benefits resulting from both restructuring actions taken in prior years and a continuation of efforts to reduce costs within each business. Lower North American automobile production during 1991 adversely impacted the company's automotive businesses. Performance declines in the home improvement and wallcoverings segment were principally driven by a continuation of the sluggish economy and increased competition. A record performance by the company's Mastercraft upholstered fabric business and substantial profit improvements in its Kayser-Roth Hosiery unit contributed to major gains in the textiles segment. During 1991 the company discontinued the remaining businesses of Wickes Manufacturing Company and provided approximately $20 million for costs associated with the sale or winddown of its discontinued operations. Additionally, the company elected to adopt Statement of Financial Accounting Standards No. 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions" (FAS No. 106) and recognize the cumulative effect of this change as of the beginning of fiscal 1991. As a result of adoption, in addition to the charge for the cumulative effect of $42.3 million, the company recognized a $4.8 million increase in expenses related to ongoing operations and $.5 million related to discontinued operations. There is no incremental decrease in cashflow resulting from the adoption of FAS No. 106. Amounts include the results of Wickes Companies Inc., 80 percent of which was acquired in December 1988 and the balance acquired through merger in April 1989. WCI Holdings Corp. is jointly owned by Blackstone Capital Partners L.P. and Wasserstein Perella Partners L.P. WCI HOLDINGS CORP. Financial Highlights (in thousands) 13 Weeks Ended Fiscal Year Ended Jan. 25, Jan. 26, Jan. 25, Jan. 26, 1992 1991 1992 1991 Net sales $533,603 $545,561 $2,166,524 $2,308,837 Operating income (loss)(a) $5,484 ($9,222) $78,592 $68,329 Interest expense, net(b) (31,894) (32,671) (129,041) (129,655) Dividends on preferred stock of subsidiary (1,129) (1,129) (4,515) (4,515) Income (loss) from continuing operations before income taxes (27,539) (43,022) (54,964) (65,841) Income taxes (benefit) 4,075 (568) 14,018 5,888 Income (loss) from continuing operations (31,614) (42,454) (68,982) (71,729) Income (loss) from discontinued operations, net of income taxes (19,060) (15,931) (20,719) (15,254) Income (loss) before extraordinary item (50,674) (58,385) (89,701) (86,983) Extraordinary item, net of income taxes(c) --- --- (1,793) 29,075 Cumulative effect on prior years (to Jan. 26, 1991) of change in accounting principle, net of income taxes(d) --- --- (42,316) --- Net income (loss) ($50,674) ($58,385) ($133,810) ($57,908) (a) Operating income for the quarter and fiscal year ended Jan. 26, 1991 is after restructuring costs of $22.3 million. (b) Interest expense for the quarters ended Jan. 25, 1992 and Jan. 26, 1991 is net of interest income of $1.3 million and $3.9 million, respectively. Interest expense for the fiscal years ended Jan. 25, 1992 and Jan. 26, 1991 is net of interest income of $7.7 million and $18.2 million, and gains of $.7 million and $3.3 million related to the retirement of debt to satisfy sinking fund payments. Interest expense has been allocated to discontinued operations based on the ratio of net assets of discontinued operations to consolidated invested capital. Interest allocated to discontinued operations was $1.0 million and $3.9 million for the quarter and fiscal year ended Jan. 25, 1992 compared to $1.4 million and $9.4 million for the quarter and fiscal year ended Jan. 26, 1991. (c) Extraordinary item represents gain (loss) on retirement of indebtedness. (d) Represents cumulative adjustment for change to the accrual basis of accounting for postretirement benefits in accordance with Statement of Financial Accounting Standards No. 106 "Employers' Accounting for Postretirement Benefits Other Than Pensions." -0- 3/25/92 /CONTACT: Michael A. Jamieson of Wickes Companies, 310-452-0161/ CO: WCI Holdings Corp. ST: California IN: REA SU: ERN
EH -- LA011 -- 1703 03/25/92 17:25 EST
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|Date:||Mar 25, 1992|
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