Seeburg 'reorganization' related
XCOR reports 1979 net loss
XCOR International , Inc . reported
financial results which show that for
the year ended December 31 , 1979,
after deducting two nonrecurring
items, the company experienced a
net loss of $2 ,448 ,000 on revenues
of $139,192,000. This compares to
the Oak Brook , Illinois firm 's reve-
nues and net income of $123 ,596 ,-
000 and $5,412,000, respectively ,
th e year before.
XCOR posted a loss of 79 cents
per share in 1979 versus income of
$1.86 per share during 1978, which
includes an extraordinary credit of
$2,015,000, or 69 cents per share ,
from the utilization of tax loss
carryforwards.
In the fourth quarter XCOR
reported a loss of $2 ,122,000 on
reven ues of $32 ,720 ,000 compared
with revenue and net income during
the year ago fourth quarter of
$29 ,383,000 and $504 ,000 , respec-
tively .
The first of the non-recurring items
resulted from a tornado which struck
XCOR's Choice Vend vending ma-
chine manufacturing facility in Wind-
sor Locks , Connecticut on October
3, 1979 , substantially damaging the
facility and halting all production until
January 14, 1980 , and creating a
significant shortfall in sales and
earnings during the last quarter of the
year. The company maintains in-
surance for damage to the property
and its contents as well as business
interruption expense .
The company has reached agree-
ment on certain of its claims under its
insurance coverage for damages to
the building , equipment, and inven-
tory : however, the business inter-
ruption claim as a result of the
disruption caused by the tornado was
in the process of being filed at the
time of XCOR's April financial
reports . Since the resolution of this
claim is dependent upon agreement
with the insurance company, no
estimate of the recovery is reflected
in the 1979 financial statements .
The second item related to
XCOR 's October announcement of a
loss provision for the third quarter of
$5 .2 million relating to the full book
value of securities of the Seeburg
Corporation , the carrying value of
receivables due from it and the cost
of present and future operations of
properties leased to it . The loss
provision was established after See-
burg Corporation , the purchaser of
XCOR's coin-operated phonograph
division , became delinquent in the
payment of certain of its obligations
to the company and had filed for
re -organization under Chapter 11 of
the bankruptcy code .
James J. Hughes , president and
chief operating officer of XCOR , said
that despite the loss reported for
1979, he is "optimistic that the
company is in basically sound fiscal
health and is well positioned to take
full advantage of the various markets
in which its subsidiary companies
compete ."
"We are confident that we have
put these two distinct and nonrecur-
ring events behind us and that we
can look forward to successful
operations during the coming year,"
he said.
XCOR International , Inc . is a
diversified manufacturing and ser-
vicing company which , through its
subsidiaries, manufactures vending
machines , amusement games, mu-
sical instruments, and hearing aids . It
also operates a theater-in-the-round
near Cleveland , Ohio .
GoHiieb holds seminars on new system
Key Gottlieb distributor solid state
service personnel recently attended
the company's "Star Series 80
Technical Seminars" in Chicago at
th e O'Hare Holiday Inn .
The purpose of the two seminars
which were held on Tuesday , March
11 , and Thursday , March 13, was to
familiarize the distributor technicians
with the technical characteristics of
Gottlieb's new "System 80" solid
state electronics.
The program included welcoming
remarks by Bob Bloom and Alvin
Gottlieb as well as a video presenta-
tion centering around the company's
50-year history . A reception and
dinner was also included in each two
day affair.
The affair was hosted by Dick
Finger, Director of Engineering, and
the school conducted by George
Off shack , Gottlieb Field Service
Engineer . Members of the Gottlieb
management staff including Robert
W . Bloom , Alvin Gottlieb, Gil
Pollock , Jack Mittel , and Tom
Herrick also attended .
Gottlieb Field Service Engineer George Offshack [ right] responds to a dis-
tributor tech with an assist from Alvin Gottlieb, executive V . P.