Caldor Reports Second Quarter 1997 Results.

NORWALK, CT--(BUSINESS WIRE)--September 15, 1997--The Caldor Corporation (NYSE: CLD) today announced its financial results for the thirteen and twenty-six week periods ended August 2, 1997. Warren D. Feldberg, Chairman and Chief Executive Officer, commented, "The improved results reflect progress being made as a result of the Company's new marketing, merchandising and financial strategies and are in line with the Company's Business Plan."

For the second quarter of 1997, the Company's EBITDAR (Earnings before interest, taxes, depreciation, amortization and reorganization items) was $13.7 million compared to $6.3 million in 1996, for an increase of $7.4 million. For the six months ended August 2, 1997, EBITDAR was $9.1 million compared to a loss of $6.6 million for the prior year, for an increase of $15.7 million.

The Company's operating loss for the second quarter of 1997 (results before interest, taxes, and reorganization items) was $1.5 million versus an operating loss of $8.6 million in the period last year. For the six months ended August 2, 1997 the Company's operating loss was $21.2 million compared to an operating loss of $34.7 million in the corresponding period last year.

The Company's net loss for the second quarter was $18.0 million, or $1.07 per share, compared to a net loss of $28.4 million, or $1.67 per share, for the second quarter of 1996. The net loss for the first half of 1997 was $54.3 million, or $3.21 per share. In the comparable period in 1996, the net loss was $71.7 million, or $4.23 per share. The results for the second quarter and the first half of 1997 included reorganization items of $5.6 million and $11.8 million, respectively, principally for retention costs, professional fees and other bankruptcy related expenses.

Net sales for the second quarter of 1997 were $598.2 million compared to $622.2 million for the second quarter of 1996, a 3.9% decline. Comparable store sales declined by 2.3% for the quarter. Lower comparable sales in the second quarter primarily reflect unseasonably cool weather in the Northeast, which negatively impacted the Company's sales of seasonal merchandise. Sales results for the quarter were also adversely affected by the discontinuance of mid-week circulars in May 1996, the reduced amount of clearance merchandise available for July clearance sales as compared to last year, and the intensely competitive retail environment. For the twenty-six weeks ended August 2, 1997, net sales were $1.12 billion compared to $1.19 billion in the same period last year, a decrease of 5.6%. Comparable store sales declined by 4.4% for the first half of fiscal 1997.

Mr. Feldberg commented, "Caldor's second quarter results show marked improvement over last year. We have been making significant changes in the way Caldor operates, and we have seen progress from our efforts."

"As part of our Business Plan, we have taken steps to revise and refocus our marketing and merchandising strategies in order to better serve and appeal to our core upscale discount customer. Our marketing strategy has focused on reduced reliance on promotions, discontinuance of mid-week circulars, elimination of various promotional events and a new Price Cut program aimed at providing consumers with better values everyday of the week. We have also modified our assortments to provide a fresher, more fashion-forward selection of merchandise, initiated changes to make our stores better and easier to shop and have placed a high priority on increasing customer service levels. Along with these actions, we will also continue to focus on cost reduction to improve our financial results."

Mr. Feldberg also noted that the Company continues to have significant credit availability under its approximately $450 million Debtor-in-Possession bank facility.

Recently, Caldor announced the extension through February 28, 1998 of its exclusive period to file a plan of reorganization, and the period for which it can solicit acceptances for the reorganization plan through April 30, 1998. The extension, granted with the support of the Company's Bank, Creditor and Equity Committees, will enable Caldor to implement its strategies through the back-to-school and fourth quarter periods and to make refinements as appropriate. The Company has begun preliminary analyses to formulate a plan of reorganization and, while no plan of reorganization has been proposed, at this time it would appear unlikely that such a plan would provide for recovery by equity security holders.

The Caldor Corporation is the fourth largest discount department store chain in the U.S., with annual sales of approximately $2.6 billion and approximately 21,000 Associates. It currently operates 157 stores in ten East Coast and Mid-Atlantic states. With a strong consumer franchise in high density urban/suburban markets, Caldor offers a diverse merchandise selection, including both softline and hardline products. -0-

The Caldor Corporation and Subsidiaries
Consolidated Statements of Operations
(Dollars in thousands, except per share data)
(Unaudited)


                          13 Weeks Ended        26 Weeks Ended
                         Aug. 2,    Aug. 3,    Aug. 2,    Aug. 3,
                          1997       1996       1997       1996

Net sales               $598,151   $622,212 $1,123,786 $1,190,772
Cost of goods sold       437,001    451,389    822,198    874,894
SG&A expenses, net of
   depreciation and
   amortization          148,820    165,743    295,070    324,930
Depreciation and
   amortization           13,838     13,676     27,676     25,668
Operating loss            (1,508)    (8,596)   (21,158)   (34,720)
Interest expense, net     10,956      9,045     21,347     17,441
Loss before
   reorganization items  (12,464)   (17,641)   (42,505)   (52,161)
Reorganization items       5,560     10,779     11,834     19,540


Net Loss                ($18,024)  ($28,420)  ($54,339)  ($71,701)

Per Share Amounts:
Net Loss                  ($1.07)    ($1.67)    ($3.21)    ($4.23)

Weighted average common and
   common equivalent shares
   outstanding            16,903     17,012     16,919     16,935


The Caldor Corporation and Subsidiaries
Consolidated Balance Sheets
(Dollars in thousands)
(Unaudited)

                                  Aug. 2,    Aug. 3,    Feb. 1,
                                    1997       1996       1997
                                (unaudited) (unaudited)
ASSETS
Current assets:
   Cash and cash equivalents     $27,926    $32,016    $27,477
   Restricted cash                 4,732      1,516      5,254
   Accounts receivable            11,189     19,879     12,216
   Merchandise inventories       463,814    551,699    450,499
   Assets held for disposal, net                         8,177
   Refundable income taxes                    3,290     13,040
   Prepaid expenses & other
      current assets              21,000     21,619     17,422
        Total current assets     528,661    630,019    534,085

Property and equipment, net      487,766    540,624    508,071
Debt issuance costs                3,347      3,963      2,516
Deferred income taxes                        16,626
Other assets                       5,611      9,512      5,851
                              $1,025,385 $1,200,744 $1,050,523

LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
   Accounts payable and
      accrued expenses          $220,029   $238,610   $214,938
   Other accrued liabilities      57,818     54,942     64,478
   Borrowings under revolving
      credit agreement           183,698    155,000    152,000
   Current maturities of
     long-term debt                  550        550        550
        Total current
         liabilities             462,095    449,102    431,966

Long-term debt                    18,211     18,153     18,463
Other long-term liabilities       30,861     27,643     28,322
Liabilities subject to
     compromise                  716,681    740,295    719,980

Total stockholders' deficit     (202,463)   (34,449)  (148,208)
                              $1,025,385 $1,200,744 $1,050,523

Footnotes:

 (1) Certain items previously reported in the above financial
    information have been reclassified to conform with the
    current period's classifications.

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