Standard Brands Paint Company announces first quarter results

Business Wire, May 18, 1995

TORRANCE, Calif.--(BUSINESS WIRE)--May 18, 1995--Standard Brands Paint Company (NYSE:SBP) today announced first quarter Fiscal 1995 results for the thirteen week period ending April 30, 1995.

The company reported a net loss of $3.9 million ($0.17 per share) during the quarter, compared with a net loss of $3.3 million ($0.15 per share) in the Fiscal 1994 period.

Consolidated sales in the first quarter of Fiscal 1995 declined by $9.7 million, to $20.5 million, from the 1994 period. Comparable store sales in the 1995 first quarter were $18.2 million, a 32.3% decline from $26.9 million in the 1994 quarter.

The company announced on May 17, 1995, that it completed a financial restructuring pursuant to which Corimon, S.A.C.A. (NYSE: CRM), a Venezuelan multinational company, acquired 77% of Standard Brands' outstanding shares for a total consideration of US$18 million. Prior to the completion of the restructuring, Standard Brands was unable to maintain adequate inventory levels resulting in decreased store sales for the quarter compared with 1994.

Following the special shareholders' meeting held on May 16, 1995, Ronald Scharman resigned as interim Chief Executive Officer and as a member of the board of directors. Scharman will remain as an officer of the company through May 31, 1995. Juan J. Gramage, president, chief operating officer and general manager of Standard Brands, will assume chief executive responsibilities until a successor is appointed at the company's annual general meeting in July 1995. Gustavo Blanco Uribe, Corporate Controller, Corimon, S.A.C.A., has been elected to serve on the Standard Brands board.

Standard Brands, through its 58 stores and direct outside sales from its wholly owned subsidiary, Major Paint, is one of the west coast's premier suppliers of paint and home decorating products.

CONTACT: Standard Brands Paint Co.

Howard Schwartz, 310/214-2411, ext. 2230

or

Corimon

Gaby Planchart, 011 582 203-5568

or

Ludgate Communications

Erin Burke/Liann Schottenstein, 212/688-5144