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FOOD LION REPORTS SECOND QUARTER OPERATING RESULTS; SALES AND EARNINGS CONTINUE TO IMPROVE

 SALISBURY, N.C., July 1 /PRNewswire/ -- Food Lion, Inc. (NASDAQ-NMS: FDLN) announced today that the company posted a 1.75 percent net margin in the second quarter of 1993 compared to a 1.32 percent net margin recorded in the first quarter of 1993.
 During the second quarter of 1993, sales and net income increased 5.6 percent and 40.0 percent, respectively, as compared to the first quarter of 1993. However, the company reported a sales increase of 6.4 percent and a net income decrease of 41.6 percent for the second quarter of 1993 compared with the second quarter of 1992.
 During the second quarter ended June 19, 1993, Food Lion earned $51.6 million before LIFO and income taxes and net income of $30.7 million, as compared to $86.8 million and $52.6 million, respectively, in the second quarter of 1992. Same store sales decreased 4.8 percent during the quarter, a 20 percent improvement as compared to the first quarter of 1993.
 The company is encouraged by the improvement in sales, gross margins, and net margins, as compared to the first quarter of 1993 and expects continued improvement in operating results throughout the remaining quarters of 1993. The company remains focused on the continued recovery of sales and earnings.
 Food Lion plans to open between 100 and 110 new stores in 1993, located primarily in the southeast.
 The company is analyzing the first and second quarter operating results and, in the next several weeks, will announce its 1994 growth plans.
 Food Lion currently operates 1,061 stores in fourteen states.
 FOOD LION INC.
 STATEMENTS OF INCOME (UNAUDITED)
 12 WEEKS 12 WEEKS PCT.
 ENDED ENDED INC(DEC)
 6/19/93 6/13/92
 Net Sales $1,749,923,248 $1,643,910,005 6.4
 Income Before LIFO and
 Income Taxes 51,569,188 86,768,248 -40.6
 LIFO (1,500,000) (1,000,000) 50.0
 Income Before Income Taxes 50,069,188 85,768,248 -41.6
 Income Taxes 19,376,776 33,192,292 -41.6
 Net Income 30,692,412 52,575,956 -41.6
 Earnings Per Share 0.0635 0.1087 -41.6
 Weighted Average Number of
 Shares Outstanding 483,701,316 483,654,298
 Statistical Information
 Number of Stores at
 period end 1061 915
 24 WEEKS 24 WEEKS PCT.
 ENDED ENDED INC(DEC)
 6/19/93 6/13/92
 Net Sales $3,406,747,920 $3,240,401,337 5.1
 Income Before LIFO and
 Income Taxes 88,324,904 169,183,918 -47.8
 LIFO (2,500,000) (2,000,000) 25.0
 Income Before Income Taxes 85,824,904 167,183,918 -48.7
 Income Taxes 33,214,243 64,963,932 -48.9
 Net Income 52,610,661 102,219,986 -48.5
 Earnings Per Share 0.1088 0.2114 -48.5
 Weighted Average Number of
 Shares Outstanding 483,698,677 483,642,037
 FOOD LION, INC.
 STATEMENTS OF INCOME
 (Unaudited)
 For the 12 Weeks and 24 Weeks ended June 19, 1993, and June 13, 1992
 (Dollars in thousands except per share amounts)
 12 Weeks Ended 24 Weeks Ended
 June 19, 1993 June 13, 1992 June 19, 1993 June 13, 1992
 (A) (B) (C) (D)
 Net Sales $1,749,923 $1,643,910 $3,406,748 $3,240,401
 Cost of
 goods sold 1,406,087 1,303,365 2,746,837 2,573,618
 Gross Profit 343,836 340,545 659,911 666,783
 Selling and
 Administrative
 Expenses 245,138 214,562 477,236 422,470
 Interest Expense 15,997 12,152 32,268 22,046
 Depreciation and
 Amortization 32,632 28,063 64,582 55,083
 293,767 254,777 574,086 499,599
 Income before
 income taxes 50,069 85,768 85,825 167,184
 Provision for
 income taxes 19,376 33,192 33,214 64,964
 Net Income $30,693 $52,576 $52,611 $102,220
 Earnings
 per share $0.0635 $0.1087 $0.1088 $0.2114
 Dividends
 per share $0.0218 $0.0279 $0.0435 $0.0557
 Weighted average
 number of shares
 outstanding:
 Class A 244,130,202 244,082,482 244,127,563 244,070,221
 Class B 239,571,114 239,571,816 239,571,114 239,571,816
 Total 483,701,316 483,654,298 483,698,677 483,642,037
 12 Weeks 24 Weeks
 A(Pct.) B(Pct.) C(Pct.) D(Pct.)
 Net Sales 100.00 100.00 100.00 100.00
 Cost of
 goods sold 80.35 79.28 80.63 79.42
 Gross Profit 19.65 20.72 19.37 20.58
 Selling and
 Administrative
 Expenses 14.01 13.05 14.01 13.04
 Interest Expense 0.92 0.74 0.95 0.68
 Depreciation and
 Amortization 1.86 1.71 1.89 1.70
 16.79 15.50 16.85 15.42
 Income before
 income taxes 2.86 5.22 2.52 5.16
 Provision for
 income taxes 1.11 2.02 0.98 2.01
 Net Income 1.75 3.20 1.54 3.15
 BALANCE SHEETS
 (Dollars in thousands)
 (Unaudited)
 June 19, Jan. 2, June 13,
 1993 1993(B) 1992(A)(B)
 (Dollars in thousands except per share amounts)
 Assets
 Current assets:
 Cash and cash equivalents $149,244 $105,123 $4,540
 Receivables 95,543 95,987 98,960
 Inventories 861,670 896,385 776,674
 Prepaid expenses and other 49,844 51,230 46,714
 Total current assets 1,156,301 1,148,725 926,888
 Property, at cost, less
 accumulated depreciation
 and amortization 1,413,042 1,372,767 1,143,545
 Total assets $2,569,343 $2,521,492 $2,070,433
 Liabilities and Shareholders'
 Equity
 Current liabilities:
 Notes payable $45,000 $459,750 $35,250
 Accounts payable, trade 322,214 324,063 338,649
 Accrued expenses 262,796 196,781 243,518
 Long-term debt - current 611 590 584
 Capital lease obligations -
 current 2,775 5,090 4,450
 Income taxes payable 10,936 5,519
 Total current liabilities 644,332 986,274 627,970
 Long-term debt 577,062 248,053 246,454
 Capital lease obligations 269,859 245,654 218,369
 Deferred income taxes 89,018 84,068 69,343
 Deferred compensation 1,724 1,724 1,700
 Total liabilities 1,581,995 1,565,773 1,163,836
 Shareholders' equity:
 Class A non-voting common
 stock, $.50 par value 122,065 122,061 122,046
 Class B voting common
 stock, $.50 par value 119,786 119,786 119,786
 Additional Capital 282 225 10
 Retained earnings 745,215 713,647 664,755
 Total shareholders'
 equity 987,348 955,719 906,597
 Total liabilities and
 shareholders' equity $2,569,343 $2,521,492 $2,070,433
 (A) Applicable amounts have been restated for SFAS No. 109, "Accounting for Income Taxes," which was adopted in the fourth quarter of 1992.
 (B) 1992 amounts have been restated to reflect account reclassification.
 -0- 7/1/93
 /CONTACT: Mike Mozingo, Food Lion, Inc., 704-633-8250 Ext. 2575/
 (FDLN)


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

SB-CM -- CH013 -- 7920 07/01/93 16:38 EDT
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Date:Jul 1, 1993
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