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FJCC revoked:
http://www.sec.gov/litigation/admin/2012/34-67428.pdf
FJCC (.14) Fedders North American Operations to Restructure Under Chapter 11 Protection; Company Obtains Commitment for $79 Million in Financing to Fund Reorganization
Shipments to Customers Expected to Continue On a Timely Basis
Aug 22, 2007 10:54:00 AM
LIBERTY CORNER, N.J., Aug. 22 /PRNewswire-FirstCall/ -- Fedders Corporation (OTC Bulletin Board: FJCC) a leading global manufacturer of air treatment products, said today that in order to facilitate a restructuring that will enable it to preserve value and to continue operations the company's North American subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The company will seek strategic alternatives including a sale of its business units during the reorganization process.
Fedders' non-North American subsidiaries, which include operations in China, India, and the Philippines, were not included in the filing.
"After careful evaluation, management and the board have concluded that in order to ensure the company's business units' viability and growth prospects, an exploration of the sale of the company's businesses is in the best interest of all of its constituents," said Michael Giordano, President and Chief Executive Officer of Fedders. "The Chapter 11 process will allow time for prospective buyers to evaluate the company and its business units while day-to-day operations continue."
The company will retain an investment bank to evaluate strategic options and will only pursue transactions that bring the greatest value, Giordano noted. The company is also prepared to reorganize around its businesses and emerge from Chapter 11 protection with a new business plan should the expected proceeds from the sale of its business units not bring sufficient value.
In conjunction with the filing, Fedders has obtained a $79 million debtor- in-possession financing commitment from Goldman Sachs Credit Partners L.P. The proceeds from the financing, which is subject to Bankruptcy Court approval, will be used to refinance the company's senior secured revolver and term loan, to pay fees and expenses associated with the financing and for operating expenses, including supplier obligations and employee wages, salaries and benefits.
In recent years, the North American room air conditioner market has become dominated by big box retailers whose product mix focuses primarily on the smaller size, lower price room air conditioner units, resulting in a decline in pricing, margins and profitability for manufacturers.
In response to the changing environment, Fedders undertook various steps to reorganize its operations around targeted, more profitable product and geographic segments of the IAQ (indoor air quality) and global HVAC (heating, ventilation and air conditioning) markets and has taken important strides to capitalize on new business opportunities.
The company has transitioned from a manufacturer of room air conditioners only, to a manufacturer of a broad line of residential, commercial and industrial IAQ and HVAC equipment. As part of the transition, Fedders expanded low-cost manufacturing facilities in Asia and closed underutilized U.S. factories.
"Despite previous actions we have taken to reduce costs, while expanding into growing profitable markets, our existing capital structure is not in line with current revenue and profits. The action we took today is critical to ensuring continued operations while we seek the best and highest offers for the businesses we decide to sell," said Mr. Giordano.
Fedders filed its "first-day" motions along with its voluntary petitions covering employees and business operations, post-petition financing, continuing supplier relations, customer practices, taxes and related matters, utilities, retention of professionals and case administration matters.
In a closing comment, Mr. Giordano stated, "We are extremely grateful to the customers, employees and suppliers who have supported the company through these challenging times."
For more information about Fedders and the reorganization, visit http://www.fedders.com .
About Fedders:
Founded in 1896, Fedders Corporation (OTC Bulletin Board: FJCC) is a leading global manufacturer of air treatment products, including air conditioners, furnaces, air cleaners and humidifiers for residential, commercial and industrial markets.
This news release includes forward-looking statements that are covered under the "Safe-Harbor" clause of the Private Securities Litigation Reform Act of 1995. Such statements are based upon current expectations and assumptions. Actual results could differ materially from those currently anticipated as a result of known and unknown risks and uncertainties including, but not limited to, weather and economic, political, market and industry conditions and reliance on key customers. Such factors are described in Fedders' SEC filings, including its most recently filed annual report on Form 10-K. The company disclaims any obligation to update any forward-looking statements to incorporate developments occurring after release of this announcement. Visit the Fedders investor information website at http://www.fedders.com to access additional information on Fedders.
SOURCE Fedders Corporation
----------------------------------------------
Anita-Marie Laurie or Tom Becker
+1-212-573-6100
both of Sitrick And Company for Fedders Corporation
0.20 now
not bad from 0.07
MK
0.14 not a bad recovery
MK
Yes pink
lol
no not in yet or maybe never
watching for now
MK
Yikes! I didn't realize this was a pink now!
Sorry, they're losing too much $$$$$
I wish you luck if you are in or thinking of getting in.
OK will do
seems like a decent co
matbe they can turn it around
MK
I'll check more into it this evening.
let me know if you find out anything before then
Yeah thats what caught
my attn
the last 10Q wasn t stellar
but something else is going on here
didn t see any CD s
maybe BK ?
MK
keeps breaking it lol
New 52 wk low
seems
lol
MK
no sweetheart, I haven't been in this one for a while.
anything new?
Tina you still
following this ?
thx
MK
FJCC >>> Time to start getnit!!! lol or beat yourself after the run!!!! JMHO but looks like a solid rebound from bottom!
FJCC >>> Bottom and huge turn coming! JMHO!
Change of gaurd possible news coming!!!
Tina Marie, I'm just curious about something, why is it that you don't have any assistants on this board?
Fedders Announces Results for the Second Quarter and First Six Months of 2006
LIBERTY CORNER, N.J., Aug. 8 /PRNewswire-FirstCall/ -- Fedders Corporation (NYSE: FJC), a leading global manufacturer of air treatment products, including air conditioners, furnaces, air cleaners, dehumidifiers, and humidifiers for residential, commercial and industrial markets, today announced its results for the second quarter and first six months of 2006.
Net sales of $95.6 million in the 2006 second quarter declined 22.1% from $122.7 million in the second quarter of 2005. Sales of $195.3 million in the first six months of 2006 were essentially even with sales of $195.6 million in the first six months of 2005 despite lower sales of approximately $32 million of room air conditioners to The Home Depot, as a result of no longer selling to its U.S. retail stores. Sales in the Engineered Products segment declined 11.0% in the second quarter and 5.4% for the first six months of 2006, due to fewer cleanroom projects in China. Sales in the Heating, Ventilating, Air Conditioning, and Refrigeration (HVACR) segment declined by 23.0% during the second quarter due to lower sales of room air conditioners as a result of customers purchasing product directly from the company's China facilities during the first quarter of 2006 rather than from the company's domestic warehouses, nearer to the summer season, as occurred in the second quarter of 2005. For the six months, HVACR sales were essentially flat as a slight decline in appliance sales was offset by growth in commercial and residential unitary air conditioner sales.
Gross profit for the second quarter of 2006 declined to $13.7 million or 14.3% of net sales compared with $23.1 million or 18.8% of net sales in the prior-year quarter. Gross profit declined as a result of lower sales and increased commodity costs of $5.6 million during the second quarter that could not be passed along in the form of price increases to customers with fixed- price contracts for room air conditioners and dehumidifiers. For the 2006 six-month period, gross profit declined to $26.4 million or 13.5% of net sales compared with $36.7 million or 18.8% of net sales in the prior-year period. For the six-month period, $9.8 million of commodity cost increases could not be passed on. The lower margin on sales under fixed-price contracts was partly offset by increased gross margins of commercial and residential unitary air conditioners.
Selling, general and administrative (SG&A) expenses declined by 14.9% to $16.5 million in the second quarter of 2006, compared with $19.4 million in the prior-year quarter. For the first six months of 2006, SG&A expenses declined by 14.7% to $31.5 million compared with $37.0 million in the 2005 period. The reduction in SG&A expenses is the result of cost-savings programs initiated in late 2005 and 2006 as well as management's continued focus on reducing costs.
Operating loss for the second quarter of 2006 was $3.4 million compared with income of $3.5 million in the 2005 quarter. Net loss applicable to common stockholders for the quarter was $10.0 million, or 32 cents per diluted share, compared to a net loss applicable to common stockholders of $2.5 million, or eight cents per diluted share, in the 2005 quarter. For the first six months of 2006, the operating loss was $5.8 million compared with an operating loss of $0.6 million for the first six months of 2005. Net loss applicable to common stockholders for the 2006 period was $20.0 million, or 65 cents per diluted share, versus $11.6 million, or 38 cents per diluted share, in the prior period.
The company has made significant year-over-year improvements in working capital, resulting in inventories decreasing from $103.7 million to $61.7 million and short-term debt decreasing from $90.5 million to $45.8 million.
Subsequent to the second quarter, the company announced it was exploring the possible sale of its global indoor air quality (IAQ) businesses, which are not core to the company's principal residential and commercial HVAC businesses and amount to approximately $50 million in sales.
FEDDERS CORPORATION
RESULTS FOR THE SECOND QUARTER AND FIRST SIX MONTHS ENDED
JUNE 30, 2006 AND 2005
(amounts in thousands, except per share data)
Period Ended June 30 (Unaudited) Second Quarter Six Months
2006 2005 2006 2005
Net sales $95,567 $122,732 $195,268 $195,630
Cost of sales 81,878 99,632 168,884 158,918
Gross profit 13,689 23,100 26,384 36,712
Selling, general and administrative
expense 16,509 19,410 31,549 36,979
Restructuring (income)/expense 611 197 611 372
Total operating expenses 17,120 19,607 32,160 37,351
Operating income/(loss) (3,431) 3,493 (5,776) (639)
Interest expense, net 5,340 5,688 10,813 11,046
Partners' net interest in joint
venture results 215 314 68 693
Other (income)/expense 30 85 589 (522)
Income/(loss) from continuing
operations (8,586) (1,966) (17,110) (10,470)
before income taxes
Income tax expense/(benefit) 315 119 592 347
Income/(loss) from continuing
operations (8,901) (2,085) (17,702) (10,817)
Income/(loss) from discontinued
operations net of 2005 tax of
$0 and $14 - 698 - 1,333
Net income/(loss) (8,901) (1,387) (17,702) (9,484)
Preferred stock dividends 1,144 1,144 2,287 2,149
Net income/(loss) applicable to
common stockholders $(10,045) $(2,531) $(19,989) $(11,633)
Basic and diluted net income/(loss)
per common share $(0.32) $(0.08) $(0.65) $(0.38)
Basic and diluted weighted average
shares outstanding 30,927 30,603 30,879 30,568
Selected balance sheet items as of
June 30, 2006 and 2005 (unaudited) 2006 2005
Cash and cash equivalents $11,754 $17,773
Accounts receivable 57,175 88,413
Inventories 61,731 103,740
Accounts payable 65,676 55,527
Short-term notes 45,774 90,492
Long-term debt, including current portion 160,169 161,288
Hi All,
I will be taking an iHub break. I do this every so often from the internet to focus on health goals (in other words, working out to prevent my butt doesn't expand to the size of my chair).
I'll be checking in periodically.
See ya soon,
Tina
NO LOL - Not a stinker. I did some research after flapping my gums on this one. I believe this is the same corporation that has had air conditioners for more years than I have been on this planet...and that is a few. :)
lol thanks for posting that retraction. Fist thing I thought was, "oh lawd, did I pick another stinker!?" lol
RETRACTION! FRETTER, no FEDDERS was the name of the company that was the parent company of SILO INC. (Not to mention the DIXON group and then a few others from what I understand)
I apologize. Getting old will do that to you!
GO FEDDERS! :)
noooooooooooooooooooooooooo NOT FEDDERS!
Long ago, a company named SILO went under and apparently this was the parent company at one time. Each employee was told to keep their mouth shut, and they would receive 4k, while over the next 3 days they loaded EVERYTHING they could into trucks and got outta town with everyones lay-a-way's and their money.
I busted them on the news, and the local media jumped ALL over them. Caught them red-handed. Because of me, hundreds of people stormed the stores and demanded their products in service, money back for lay-a-way's or, for their products if they were paid up and just didn't pickup yet.
I dunno what has changed with this company, but I can tell you that what they did in a little steel town did not sit well with thousands there. BUT hey, I'm sure they have moved on since and have different management and cost structures.
:)
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