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/ REPEATING / FOOD LION REPORTS 1992 EARNINGS - NET INCOME OF $178 MILLION DECLARES FIRST QUARTER DIVIDENDS - $10.5 MILLION

 SALISBURY, N.C., Feb. 11 /PRNewswire/ -- Food Lion, Inc. (NASDAQ-NMS: FDLN), an operator of supermarkets in fourteen states, principally in the Southeast, today announced earnings for Fiscal Year 1992, which ended January 2, 1993, and for the fourth quarter of Fiscal Year 1992.
 For Fiscal Year 1992, the Company earned $290.4 million before LIFO and income taxes and net income of $178.0 million, decreases of 14.9 percent and 13.2 percent, respectively, from results achieved during Fiscal Year 1991.
 For Fiscal Year 1992, the Company posted a 4.04 percent income before LIFO and income tax margin and 2.47 percent net income margin, as compared to 5.30 percent and 3.19 percent margins, respectively, for Fiscal Year 1991. As previously reported, sales for Fiscal Year 1992 were up 11.8 percent (53 weeks vs. 52 weeks), while same store sales growth declined 0.4 percent compared to sales results in Fiscal Year 1991.
 For the fourth quarter of Fiscal 1992, the Company earned $42.2 million before LIFO and income taxes and $27.3 million net income, decreases of 54.4 percent and 55.1 percent, respectively, from results achieved during the comparable period in Fiscal Year 1991. As previously reported, sales for the fourth quarter of Fiscal Year 1992 were up 12.1 percent (17 weeks vs. 16 weeks), while same store sales growth declined 3.8 percent compared to sales results achieved during the comparable period in 1991.
 The Company's results during Fiscal Year 1992 were negatively impacted by a number of factors, including ABC's PrimeTime Live broadcast which aired on November 5, 1992; increased promotional and advertising expenses incurred by the Company in an effort to counteract the impact of the broadcast; the impact of "down trading" to lower priced items and lower margin items; less than expected results in the Company's stores in Texas, Oklahoma, and Louisiana; and continued increases in expenses and costs, without the offsetting affect of inflation. Tom Smith, President and Chief Executive Officer of the Company, said, "In view of the unprecedented number of challenges faced by the Company over the past year, we are pleased to report net income of $178 million. We will face many challenges in the coming years and are committed to meeting these challenges in an aggressive, yet prudent, manner. During Fiscal Year 1993, we plan to open 110 stores, focus on upfitting and expanding existing stores and continue our efforts to improve store sales."
 The Company also announced that the Board of Directors of the Company today declared a regular quarterly cash dividend of $0.0220 per share on the outstanding Class A common stock of the Company and $0.0215 per share on the outstanding Class B common stock of the Company, payable on March 16, 1993 to shareholders of record on February 25, 1993. In announcing the declaration of dividends, Smith said, "The Board is pleased to declare regular quarterly dividends for our shareholders. In determining the appropriate amount of dividends, the board carefully considered various factors impacting the Company, including the Company's earnings, capital necessary for the ongoing needs of our business and the Board's desire to pay an appropriate return to our shareholders. The Board is committed to maintaining the Company's strong financial position and emphasizing long term results."
 STATEMENTS OF INCOME
 17 Weeks Ended 16 Weeks Ended Percent
 01/02/93 12/28/91 Inc.(Dec.)
 Net Sales $2,268,067,627 $2,022,691,954 12.1
 Income Before LIFO
 And Income Taxes 42,184,322 92,467,113 -54.4
 LIFO 2,235,600 9,676,596 -76.9
 Income Before Income
 Taxes 44,419,922 102,143,709 -56.5
 Income Taxes 17,167,280 41,382,738 -58.5
 Net Income 27,252,642(A) 60,760,971 -55.1
 Earnings Per Share 0.0564 0.1256 -55.1
 Weighted Average Number Of
 Shares Outstanding 483,686,544 483,580,749
 (A) As a result of year-end adjustments relating primarily to
 various insurance accruals, net income for the fourth quarter of
 1992 increased by approximately $5.5 million.
 53 Weeks Ended 52 Weeks Ended Percent
 01/02/93 12/28/91 Inc.(Dec.)
 Net Sales $ 7,195,923,099 $6,438,507,261 11.8
 Income Before LIFO
 And Income Taxes 290,369,899 341,294,107 -14.9
 LIFO 235,600 (623,404) 37.8
 Income Before Income
 Taxes 290,605,499 340,670,703 -14.7
 Income Taxes 112,600,000 135,500,000 -16.9
 Net Income 178,005,499 205,170,703 -13.2
 Earnings Per Share 0.3680 0.4243 -13.3
 Weighted Average Number Of
 Shares Outstanding 483,663,125 483,516,320
 STATISTICAL INFORMATION
 Number of Stores at year
 end: 1012 881
 FOOD LION, INC.
 STATEMENTS OF INCOME
 For the 17 and 53 Weeks ended Jan. 2, 1993 and
 the 16 and 52 Weeks ended Dec. 28, 1991
 (Dollars in thousands except per share amounts)
 17 Weeks 16 Weeks 53 Weeks 52 Weeks
 Jan. 2, Dec. 28, Jan. 2, Dec. 28,
 1993 1991 1993 1991
 (A) (B) (C) (D)
 Net Sales $2,268,068 $2,022,693 $7,195,923 $6,438,507
 Cost of goods
 sold 1,841,356 1,596,885 5,759,534 5,102,977
 Gross Profit 426,712 425,807 1,436,389 1,335,530
 Selling and
 Administrative
 Expenses 327,715 273,974 975,111 855,809
 Interest expense 16,026 11,279 49,057 34,436
 Depreciation and
 Amortization 38,552 38,410 121,616 104,614
 382,293 323,663 1,145,784 994,859
 Income before
 Income Taxes 44,419 102,144 290,605 340,671
 Provision for
 Income Taxes 17,167 41,383 112,600 135,500
 Net Income $27,252 $60,761 $178,005 $205,171
 Earnings per
 share $0.0564 $0.1256 $0.3680 $0.4243
 17 Weeks 16 Weeks 53 Weeks 52 Weeks
 A Percent B Percent C Percent D Percent
 Net Sales 100.00 100.00 100.00 100.00
 Cost of goods
 sold 81.19 78.95 80.04 79.26
 Gross Profit 18.81 21.05 19.96 20.74
 Selling and
 Administrative
 Expenses 14.44 13.54 13.56 13.29
 Interest expense 0.71 0.56 0.68 0.54
 Depreciation and
 Amortization 1.70 1.90 1.69 1.62
 16.85 16.00 15.93 15.45
 Income before
 Income Taxes 1.96 5.05 4.03 5.29
 Provision for
 Income Taxes 0.76 2.05 1.56 2.10
 Net Income 1.20 3.00 2.47 3.19
 BALANCE SHEETS
 Dollars in thousands Jan. 2, 1993 Dec. 28, 1991
 Assets
 Current Assets:
 Cash and cash equivalents $105,123 $4,345
 Receivables 95,987 97,106
 Income tax receivable 2,154 --
 Inventories 896,385 844,539
 Prepaid expenses 15,534 9,401
 Total current assets 1,115,183 955,391
 Property, at cost, less
 accumulated depreciation
 and amortization 1,373,643 1,036,796
 Total assets $2,488,826 $1,992,187
 Liabilities and Shareholders' Equity
 Current Liabilities:
 Notes payable $459,750 $122,500
 Accounts payable, trade 324,063 343,163
 Accrued expenses 196,781 184,017
 Long-term debt - current 590 1,067
 Capital lease obligations -
 current 5,090 4,061
 Income taxes payable -- 21,960
 Total current liabilities 986,274 676,768
 Long-term debt 248,053 247,155
 Capital lease obligations 245,654 195,220
 Deferred income taxes 51,402 40,302
 Deferred compensation 1,724 1,687
 Total liabilities 1,533,107 1,161,132
 Shareholders' equity:
 Class A non-voting common
 stock, $.50 par value;
 authorized 1,500,000,000
 shares; issued and outstanding
 244,122,000 shares - Jan. 2, 1993
 and 162,692,000 shares -
 Dec. 28, 1991 122,061 81,346
 Class B voting common stock,
 $.50 par value; authorized
 1,500,000,000 shares; issued
 and outstanding 239,571,000
 shares - Jan. 2, 1993 and
 159,714,000 shares -
 Dec. 28, 1991 119,786 79,857
 Additional capital 225 1,952
 Retained earnings 713,647 667,900
 Total shareholders' equity 955,719 831,055
 Total liabilities and
 shareholders' equity $2,488,826 $1,992,187
 -0- 2/11/93
 /CONTACT: Mike Mozingo of Food Lion, Inc., 704-633-8250 Ext. 2575/
 (FDLN)


CO: Food Lion, Inc. ST: North Carolina IN: REA SU: ERN DIV

CM -- CH004 -- 6022 02/12/93 08:19 EST
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Date:Feb 12, 1993
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