AnnTaylor Loses $7 million, Carlyle Shuts Fund and Other Financially Challenged U.S. Companies for March 18

The items below are taken from the Credit Manager’s Weekly Summary of Financially Challenged Companies. A full issue contains information on more than 200 companies. Please visit the insideARM bookstore for information on subscribing to the Summary.

AnnTaylor Stores Inc. lost $6.7 million in its fourth quarter, or 11 cents a share, down from a $21.5 million profit in the year-earlier quarter. Not including restructuring costs, earnings in the quarter amounted to 19 cents a share, short of analysts’ expectations. Revenue came in at $601 million, down from $610 million a year ago, while same-store sales sank 7.8% at its AnnTaylor stores and were off 0.5% at its Loft casual-apparel locations. For the full year, the Manhattan. N.Y.-based women’s apparel retailer’s net income sank 32%–to $97.2 million, on a 2% sales increase–to $2.4 billion. The quarter and year included restructuring charges of $30 million and $32.3 million respectively.

Atlantic Quest Corp. is selling five restaurants in the Wilmington, N.C. area to LM Restaurants of Raleigh, N.C. for an undisclosed amount.

Carlyle Capital Corp. will wind down its operations and liquidate the assets that remain in its mortgage fund. The company is a unit of Carlyle Group, the Washington, D.C. private-equity firm.

Core Molding Technologies Inc., a Columbus, Oh. manufacturer of truck parts, reported its fourth quarter net income sank 80%–to $530,000. Revenue fell 39%–to $23.3 million. For the year, net income slumped 64%–to $3.7 million, on a 24% revenue decline–to $123 million. The firm specializes in composite and fiberglass-reinforced plastics used by automakers. 

Herley Industries Inc., a Lancaster, Pa. manufacturer of microwave products, reported a second quarter net loss of $3.8 million. Revenue declined 9%–to $34.7 million.

Interstate Bakeries Corp., the bankrupt Kansas City, Mo. baking firm, will assume a $5.3 million charge as its exit-financing agreement is set to expire because the firm wasn’t able to get confirmation for its reorganization plan by an agreed-on date with Silverpoint Finance LLC.  Interstate asked for the hearing on the confirmation to be postponed until 4/23.

Miller Industries Inc., an Ooltewah, Tn. maker of automotive bodies, reported its fourth quarter net income tumbled 91%–to $2.5 million. Revenue declined 28%–to $84.5 million. For the year, net income sank 64%–to $16.3 million, while revenue slipped 2%–to $400 million.

MIVA Inc., a Fort Myers, Fl. online ad company, reported a fourth quarter net loss of $11.5 million. Revenue declined 20%–to $34.6 million. For the year, it lost $36.5 million on a 10% revenue decline–to $153 million.

Plastech Engineered Products Inc. is hoping to emerge from Chapter 11 by the end of August. The automotive supplier filed for bankruptcy protection on 2/1.

Pope & Talbot Inc., Portland, Ore., won permission from the U.S. Bankruptcy Court to extend its exclusivity period for filing a reorganization plan until June 2.

Ready Mix Inc., a Las Vegas-based provider of concrete products, reported a fourth quarter net loss of $200,000 on an 18% revenue decline–to $15.4 million.  For the year, net income fell 59%–to $1.4 million, on a 7% decline in revenue–to $77.4 million. 

Toll Brothers Inc., Lennar Corp. and KB Home are among three big homebuilders facing the default of two joint-venture developments in Las Vegas, Nv. called Inspirada and Kyle Canyon Gateway. The two projects, which also involve some smaller homebuilders and Focus Property Group in Las Vegas, have reportedly received default notices on $765 million in debt. One of the smaller homebuilders, Kimball Hill Homes, is reportedly considering whether it should file for Chapter 11 protection. The default on the Vegas properties raises questions about the exposure of such homebuilders. They often set up joint ventures to diversify the risk involved with big projects but the homebuilders typically don’t disclose the risk involved with such projects to investors.