AMF Updates Restructuring Activities, Reports 2000 Operating Results

Apr 16, 2001, 01:00 ET from AMF Bowling, Inc.

    RICHMOND, Va., April 16 /PRNewswire/ -- AMF (OTC Bulletin Board:   AMBW)
 today provided an update on the ongoing discussions with creditor groups
 related to a restructuring and reduction of its debt, and reported operating
 results for the year ended December 31, 2000.
 
     RESTRUCTURING UPDATE
     In August 2000, AMF Bowling Worldwide, Inc. ("AMF Worldwide") began
 discussions with its banks and holders of long-term debt about alternatives to
 significantly reduce its debt and interest expense, and stated that it
 intended to develop a new capital structure that would provide financial
 flexibility for growth.
     "After exploring a variety of alternatives, I now believe that a Chapter
 11 filing is the most likely and efficient means to complete the debt
 restructuring of AMF Worldwide," said Roland Smith, AMF's President and Chief
 Executive Officer.  "However, we are continuing constructive discussions with
 the banks and bondholders, and I believe we are making progress.  Therefore, I
 have not made a recommendation to the Board of Directors on a Chapter 11
 filing, and the Board has not yet taken any action in this regard."
     "Whatever form of restructuring is pursued, we are working diligently to
 ensure an orderly process with minimal impact on AMF Worldwide's operations,"
 continued Smith.  "As part of the preparation, we have started discussions
 with our banks for a secured debtor-in-possession (DIP) financing facility, so
 that the additional borrowing capacity, along with available cash from
 operations, would be sufficient to meet our operating needs during a Chapter
 11 reorganization."
     Mr. Smith said that he is moving forward with initiatives to improve
 operating performance: "In 2001, we are focused on growing revenue in the
 Bowling Centers business with expanded promotional activities and enhanced
 customer service supported by our new programs to recruit, train and reward
 center managers.  In our Products business, we have a new management team in
 place -- led by John Suddarth, our new Chief Operating Officer, who joined us
 last month.  This team is developing aggressive actions to enhance financial
 performance, including initiatives to grow revenue, reduce costs and enhance
 profit margins."
     "AMF employees continue to welcome customers to our centers, as well as
 produce, sell and ship products," Smith continued.  "We are continuing to
 conduct business as usual and move forward on operating improvements.  In
 conjunction with a more flexible capital structure, our operating improvements
 will position AMF for future success."
     For a further discussion of the restructuring, see the Form 10-K's filed
 by AMF Bowling Worldwide, Inc. and its parent, AMF Bowling, Inc., with the
 Securities and Exchange Commission on April 16, 2001.
 
     2000 OPERATING RESULTS
     Consolidated
     For the year ended December 31, 2000, AMF Bowling, Inc. reported
 consolidated revenue of $715.0 million, compared with $732.7 million in 1999,
 a decrease of 2.4%.  Net loss was $200.6 million, or $2.40 per share, compared
 with a net loss before extraordinary items of $226.1 million, or $3.23 per
 share, in 1999.  The weighted average shares outstanding increased to 83.6
 million in 2000 from 69.9 million in 1999.
 
     Bowling Centers
     Bowling Centers reported revenue of $580.4 million in 2000 compared with
 $585.7 million in 1999.  The decline was attributed to a $9.3 million
 reduction of revenue from under-performing centers closed in 2000 and the
 negative impact of foreign currency exchange rates, especially in Australia.
 Constant center revenue increased 2.2% in the U.S. due largely to an increase
 in open play.  Bowling Centers' EBITDA for 2000 was $125.6 million, compared
 with $137.3 million in 1999. (EBITDA is a measure of operating cash flow that
 represents Earnings Before Interest, Taxes, Depreciation, and Amortization).
 The decline reflects lower revenue and $5.4 million of additional charges.
 
     Bowling Products
     Bowling Products reported revenue of $151.3 million in 2000 compared with
 $169.3 million in 1999.  The decline was attributed to weak demand for New
 Center Packages and lower sales of consumer products.  Bowling Products'
 EBITDA for 2000 was $(18.6) million, compared with $(11.7) million in 1999.
 The decline reflects lower revenue and gross profit as well as $6.8 million of
 additional charges.
 
     As the largest bowling company in the world, AMF owns and operates 520
 bowling centers worldwide, with 402 centers in the U.S. and 118 centers in
 nine other countries.  AMF is also a world leader in the manufacturing and
 marketing of bowling products.  The company also manufactures and sells the
 PlayMaster, Highland and Renaissance brands of billiards tables.  Information
 about AMF is available on the Internet at http://www.amf.com .
 
     Statements in this earnings release about AMF's future plans are forward-
 looking statements.  A number of important factors could cause actual results
 to differ materially from those anticipated and projected by forward-looking
 information.  The factors include, but are not limited to, the ability of the
 Company to continue to operate as a going concern; the timing, execution and
 results of the Company's restructuring, the ability of management to implement
 its business strategies; the ability to maintain liquidity and carry out its
 capital expenditure plan; the ability to grow revenue in the bowling centers;
 foreign currency volatility, political acts, adverse judgements, and
 regulatory changes.  Additional information on factors that could affect the
 Company's financial results are contained in the Company's SEC filings,
 including its Annual Report on Form 10-K for the year ended December 31, 2000,
 filed with the U.S. Securities and Exchange Commission.
 
                     AMF BOWLING, INC. AND SUBSIDIARIES (1)
          CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
                        (in millions, except share data)
 
                             Three Months Ended              Year Ended
                                  December 31,             December 31,
                            2000 (2)         1999      2000 (2)      1999 (3)
 
     Operating revenue       $182.7       $ 186.2       $715.0        $732.7
 
     Operating expenses (4)   187.6         144.9        631.0         630.0
     Restructuring and
      asset impairment
      charges                   5.0           9.1          5.0          16.6
     Refinancing charges        4.3            --          6.5            --
     Depreciation and
      amortization             36.1          29.6        136.7         133.6
 
     Operating income
      (loss)                  (50.3)          2.6       (64.2)        (47.5)
 
     Interest expense          35.0          32.8        133.8         128.3
     Other non-operating
      expenses (income)        (2.9)         (0.6)       (0.4)           4.0
 
     Loss before
      income taxes            (82.4)        (29.6)     (197.6)       (179.8)
     Provision (benefit)
      for income taxes         (0.6)         1.4           2.4          27.7
     Net loss before joint
       ventures/extraordinary
       item                   (81.8)       (31.0)      (200.0)       (207.5)
 
     Equity in income
      (loss) of joint
      ventures                  0.2        (12.8)        (0.5)        (18.6)
     Net loss before
     extraordinary item       (81.6)       (43.8)      (200.5)       (226.1)
     Extraordinary item          --         (0.6)           --          63.9
     Net loss                $(81.6)      $(44.4)     $(200.5)      $(162.2)
 
     Net loss per share
      - before
      extraordinary item     $(0.98)      $(0.53)      $(2.40)       $(3.23)
     Net loss per share
      - basic and diluted    $(0.98)      $(0.53)      $(2.40)       $(2.32)
     Weighted average shares
      outstanding (000)      83,619       83,598        83,603        69,922
 
     Selected Data:
     EBITDA (5)              $(4.9)        $41.3         $84.0        $102.7
     EBITDA margin           (2.7)%        22.2%         11.7%         14.0%
 
     (1) AMF Bowling, Inc. is a holding company, and its primary assets are
         investments in subsidiaries including AMF Bowling Worldwide, Inc.
         which is principally engaged in two business segments: (i) operation
         of bowling centers and (ii) manufacturing and marketing of bowling
         products.
 
     (2) EBITDA for the three months and year ended December 31, 2000 reflects
         charges of $39.2 million primarily related to write-offs of fixed
         assets, goodwill, inventory and accounts receivable.
 
     (3) EBITDA for the year ended December 31, 1999 reflects charges of $26.5
         million primarily related to write-offs of accounts receivable and
         inventory.
 
     (4) Operating expenses represent costs of goods sold, bowling center
         operating expenses and selling, general, and administrative expenses
         and other charges discussed in (2) and (3).
 
     (5) EBITDA represents a measure of operating cash flow defined as
         operating income before interest, taxes, depreciation, amortization,
         non-operating expenses and restructuring, asset impairment and
         refinancing charges.
 
                     AMF BOWLING, INC. AND SUBSIDIARIES (1)
                        SEGMENT INFORMATION (unaudited)
                                 (in millions)
 
 
                     First       Second        Third       Fourth
                    Quarter      Quarter      Quarter      Quarter     Period
 
 
     2000 Revenue
     Bowling
      Centers       $174.1       $127.2       $126.6       $152.5      $580.4
     Bowling
      Products        38.4         38.5         42.0         32.4       151.3
     Intersegment
      Elimination    (3.0)        (5.0)        (6.5)         (2.2)     (16.7)
     TOTAL          $209.5       $160.7       $162.1       $182.7      $715.0
 
     1999 Revenue
     Bowling
      Centers       $172.6       $129.3       $125.9       $157.9      $585.7
     Bowling
      Products        32.0         38.9         60.7         37.7       169.3
     Intersegment
     Elimination     (2.0)        (7.1)        (3.8)        (9.4)      (22.3)
     TOTAL          $202.6       $161.1       $182.8       $186.2      $732.7
 
     2000 EBITDA
      (2) (5)
     Bowling
      Centers        $58.0        $20.5        $19.2        $27.9      $125.6
     Bowling
      Products         2.5          2.8          2.3       (26.2)      (18.6)
     Corporate       (5.2)         (5.1)       (5.9)        (6.5)      (22.7)
     Intersegment
      Elimination       --         (0.2)          --        (0.1)       (0.3)
     TOTAL           $55.3        $18.0        $15.6       $(4.9)       $84.0
 
     1999 EBITDA
      (3) (5)
     Bowling
      Centers        $60.5        $23.0        $11.4        $42.4      $137.3
     Bowling
      Products       (0.6)          0.0       (15.6)          4.5      (11.7)
     Corporate       (4.9)         (6.0)       (6.2)         (5.5)     (22.6)
     Intersegment
      Elimination    (0.0)         (0.1)       (0.1)         (0.1)      (0.3)
     TOTAL           $55.0        $16.9      $(10.5)        $41.3      $102.7
 
 
     See notes 1, 2, 3 and 5 to Condensed Consolidated Statements of
 Operations.
 
 

SOURCE AMF Bowling, Inc.
    RICHMOND, Va., April 16 /PRNewswire/ -- AMF (OTC Bulletin Board:   AMBW)
 today provided an update on the ongoing discussions with creditor groups
 related to a restructuring and reduction of its debt, and reported operating
 results for the year ended December 31, 2000.
 
     RESTRUCTURING UPDATE
     In August 2000, AMF Bowling Worldwide, Inc. ("AMF Worldwide") began
 discussions with its banks and holders of long-term debt about alternatives to
 significantly reduce its debt and interest expense, and stated that it
 intended to develop a new capital structure that would provide financial
 flexibility for growth.
     "After exploring a variety of alternatives, I now believe that a Chapter
 11 filing is the most likely and efficient means to complete the debt
 restructuring of AMF Worldwide," said Roland Smith, AMF's President and Chief
 Executive Officer.  "However, we are continuing constructive discussions with
 the banks and bondholders, and I believe we are making progress.  Therefore, I
 have not made a recommendation to the Board of Directors on a Chapter 11
 filing, and the Board has not yet taken any action in this regard."
     "Whatever form of restructuring is pursued, we are working diligently to
 ensure an orderly process with minimal impact on AMF Worldwide's operations,"
 continued Smith.  "As part of the preparation, we have started discussions
 with our banks for a secured debtor-in-possession (DIP) financing facility, so
 that the additional borrowing capacity, along with available cash from
 operations, would be sufficient to meet our operating needs during a Chapter
 11 reorganization."
     Mr. Smith said that he is moving forward with initiatives to improve
 operating performance: "In 2001, we are focused on growing revenue in the
 Bowling Centers business with expanded promotional activities and enhanced
 customer service supported by our new programs to recruit, train and reward
 center managers.  In our Products business, we have a new management team in
 place -- led by John Suddarth, our new Chief Operating Officer, who joined us
 last month.  This team is developing aggressive actions to enhance financial
 performance, including initiatives to grow revenue, reduce costs and enhance
 profit margins."
     "AMF employees continue to welcome customers to our centers, as well as
 produce, sell and ship products," Smith continued.  "We are continuing to
 conduct business as usual and move forward on operating improvements.  In
 conjunction with a more flexible capital structure, our operating improvements
 will position AMF for future success."
     For a further discussion of the restructuring, see the Form 10-K's filed
 by AMF Bowling Worldwide, Inc. and its parent, AMF Bowling, Inc., with the
 Securities and Exchange Commission on April 16, 2001.
 
     2000 OPERATING RESULTS
     Consolidated
     For the year ended December 31, 2000, AMF Bowling, Inc. reported
 consolidated revenue of $715.0 million, compared with $732.7 million in 1999,
 a decrease of 2.4%.  Net loss was $200.6 million, or $2.40 per share, compared
 with a net loss before extraordinary items of $226.1 million, or $3.23 per
 share, in 1999.  The weighted average shares outstanding increased to 83.6
 million in 2000 from 69.9 million in 1999.
 
     Bowling Centers
     Bowling Centers reported revenue of $580.4 million in 2000 compared with
 $585.7 million in 1999.  The decline was attributed to a $9.3 million
 reduction of revenue from under-performing centers closed in 2000 and the
 negative impact of foreign currency exchange rates, especially in Australia.
 Constant center revenue increased 2.2% in the U.S. due largely to an increase
 in open play.  Bowling Centers' EBITDA for 2000 was $125.6 million, compared
 with $137.3 million in 1999. (EBITDA is a measure of operating cash flow that
 represents Earnings Before Interest, Taxes, Depreciation, and Amortization).
 The decline reflects lower revenue and $5.4 million of additional charges.
 
     Bowling Products
     Bowling Products reported revenue of $151.3 million in 2000 compared with
 $169.3 million in 1999.  The decline was attributed to weak demand for New
 Center Packages and lower sales of consumer products.  Bowling Products'
 EBITDA for 2000 was $(18.6) million, compared with $(11.7) million in 1999.
 The decline reflects lower revenue and gross profit as well as $6.8 million of
 additional charges.
 
     As the largest bowling company in the world, AMF owns and operates 520
 bowling centers worldwide, with 402 centers in the U.S. and 118 centers in
 nine other countries.  AMF is also a world leader in the manufacturing and
 marketing of bowling products.  The company also manufactures and sells the
 PlayMaster, Highland and Renaissance brands of billiards tables.  Information
 about AMF is available on the Internet at http://www.amf.com .
 
     Statements in this earnings release about AMF's future plans are forward-
 looking statements.  A number of important factors could cause actual results
 to differ materially from those anticipated and projected by forward-looking
 information.  The factors include, but are not limited to, the ability of the
 Company to continue to operate as a going concern; the timing, execution and
 results of the Company's restructuring, the ability of management to implement
 its business strategies; the ability to maintain liquidity and carry out its
 capital expenditure plan; the ability to grow revenue in the bowling centers;
 foreign currency volatility, political acts, adverse judgements, and
 regulatory changes.  Additional information on factors that could affect the
 Company's financial results are contained in the Company's SEC filings,
 including its Annual Report on Form 10-K for the year ended December 31, 2000,
 filed with the U.S. Securities and Exchange Commission.
 
                     AMF BOWLING, INC. AND SUBSIDIARIES (1)
          CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
                        (in millions, except share data)
 
                             Three Months Ended              Year Ended
                                  December 31,             December 31,
                            2000 (2)         1999      2000 (2)      1999 (3)
 
     Operating revenue       $182.7       $ 186.2       $715.0        $732.7
 
     Operating expenses (4)   187.6         144.9        631.0         630.0
     Restructuring and
      asset impairment
      charges                   5.0           9.1          5.0          16.6
     Refinancing charges        4.3            --          6.5            --
     Depreciation and
      amortization             36.1          29.6        136.7         133.6
 
     Operating income
      (loss)                  (50.3)          2.6       (64.2)        (47.5)
 
     Interest expense          35.0          32.8        133.8         128.3
     Other non-operating
      expenses (income)        (2.9)         (0.6)       (0.4)           4.0
 
     Loss before
      income taxes            (82.4)        (29.6)     (197.6)       (179.8)
     Provision (benefit)
      for income taxes         (0.6)         1.4           2.4          27.7
     Net loss before joint
       ventures/extraordinary
       item                   (81.8)       (31.0)      (200.0)       (207.5)
 
     Equity in income
      (loss) of joint
      ventures                  0.2        (12.8)        (0.5)        (18.6)
     Net loss before
     extraordinary item       (81.6)       (43.8)      (200.5)       (226.1)
     Extraordinary item          --         (0.6)           --          63.9
     Net loss                $(81.6)      $(44.4)     $(200.5)      $(162.2)
 
     Net loss per share
      - before
      extraordinary item     $(0.98)      $(0.53)      $(2.40)       $(3.23)
     Net loss per share
      - basic and diluted    $(0.98)      $(0.53)      $(2.40)       $(2.32)
     Weighted average shares
      outstanding (000)      83,619       83,598        83,603        69,922
 
     Selected Data:
     EBITDA (5)              $(4.9)        $41.3         $84.0        $102.7
     EBITDA margin           (2.7)%        22.2%         11.7%         14.0%
 
     (1) AMF Bowling, Inc. is a holding company, and its primary assets are
         investments in subsidiaries including AMF Bowling Worldwide, Inc.
         which is principally engaged in two business segments: (i) operation
         of bowling centers and (ii) manufacturing and marketing of bowling
         products.
 
     (2) EBITDA for the three months and year ended December 31, 2000 reflects
         charges of $39.2 million primarily related to write-offs of fixed
         assets, goodwill, inventory and accounts receivable.
 
     (3) EBITDA for the year ended December 31, 1999 reflects charges of $26.5
         million primarily related to write-offs of accounts receivable and
         inventory.
 
     (4) Operating expenses represent costs of goods sold, bowling center
         operating expenses and selling, general, and administrative expenses
         and other charges discussed in (2) and (3).
 
     (5) EBITDA represents a measure of operating cash flow defined as
         operating income before interest, taxes, depreciation, amortization,
         non-operating expenses and restructuring, asset impairment and
         refinancing charges.
 
                     AMF BOWLING, INC. AND SUBSIDIARIES (1)
                        SEGMENT INFORMATION (unaudited)
                                 (in millions)
 
 
                     First       Second        Third       Fourth
                    Quarter      Quarter      Quarter      Quarter     Period
 
 
     2000 Revenue
     Bowling
      Centers       $174.1       $127.2       $126.6       $152.5      $580.4
     Bowling
      Products        38.4         38.5         42.0         32.4       151.3
     Intersegment
      Elimination    (3.0)        (5.0)        (6.5)         (2.2)     (16.7)
     TOTAL          $209.5       $160.7       $162.1       $182.7      $715.0
 
     1999 Revenue
     Bowling
      Centers       $172.6       $129.3       $125.9       $157.9      $585.7
     Bowling
      Products        32.0         38.9         60.7         37.7       169.3
     Intersegment
     Elimination     (2.0)        (7.1)        (3.8)        (9.4)      (22.3)
     TOTAL          $202.6       $161.1       $182.8       $186.2      $732.7
 
     2000 EBITDA
      (2) (5)
     Bowling
      Centers        $58.0        $20.5        $19.2        $27.9      $125.6
     Bowling
      Products         2.5          2.8          2.3       (26.2)      (18.6)
     Corporate       (5.2)         (5.1)       (5.9)        (6.5)      (22.7)
     Intersegment
      Elimination       --         (0.2)          --        (0.1)       (0.3)
     TOTAL           $55.3        $18.0        $15.6       $(4.9)       $84.0
 
     1999 EBITDA
      (3) (5)
     Bowling
      Centers        $60.5        $23.0        $11.4        $42.4      $137.3
     Bowling
      Products       (0.6)          0.0       (15.6)          4.5      (11.7)
     Corporate       (4.9)         (6.0)       (6.2)         (5.5)     (22.6)
     Intersegment
      Elimination    (0.0)         (0.1)       (0.1)         (0.1)      (0.3)
     TOTAL           $55.0        $16.9      $(10.5)        $41.3      $102.7
 
 
     See notes 1, 2, 3 and 5 to Condensed Consolidated Statements of
 Operations.
 
 SOURCE  AMF Bowling, Inc.