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KASH N' KARRY POSTS THIRD QUARTER PROFIT

 TAMPA, Fla., June 17 /PRNewswire/ -- Kash n' Karry Food Stores, Inc. posted pre-tax net income of $691,000 on sales of $287.0 million in its third quarter ended May 2, marking the Tampa-based supermarket chain's second quarterly profit since its leveraged buy-out.
 That compares to net income of $2.8 million on sales of $275.9 million in the comparable 13-week period a year ago. Third quarter 1993 sales were $11.1 million greater than 1992 third quarter sales. However, store openings, acquisitions and renovations significantly increased expenses in the most recent quarter, trimming net income.
 Chief Executive Officer Ron Floto said the 116-store company had forecasted the net income in the third quarter, traditionally a strong period for Kash n' Karry. The quarterly profit confirmed another benchmark in the strategic financial plan that management blueprinted at the time of its 1988 leveraged buy-out.
 Kash n' Karry said sales for the nine-month period ended May 2 reached $824.7 million, vs. $823.3 million in the comparable year-ago period. And the $1.4 million increase was generated in less time: 39 weeks compared to 40 weeks in the 1992 nine-month period.
 "Our gross margin improved for the nine-month period, too," Floto said, "despite strong pricing pressure by our competitors and the lower gross margins of our Save 'n Pack warehouse stores."
 Kash n' Karry reported a nine-month net loss of $6.1 million, compared to a net loss of $3.8 million in the same period a year ago. Expansion of the company's store network boosted expenses in the third quarter and dampened the nine-month figures. Kash n' Karry opened two new food stores and acquired another. It added five new liquor stores, remodeled two existing food stores and bought its three Save 'n Pack warehouse stores.
 Kash n' Karry opened two more food stores in May, after the close of the third quarter. Floto said all of the company's new stores are performing well. The company expects to open four new stores in the next 12 months, he said. This year's annual sales should easily eclipse 1992 sales of $1.07 billion, Floto said.
 The company said it has accelerated the development of its Store 2000 program -- a point-of-sale and in-store processing system being developed with Siemens Nixdorf Information Systems and Sun Microsystems.
 -0- 6/17/93
 /CONTACT: Raymond P. Springer of Kash n' Karry, 813-621-0274/


CO: Kash n' Karry ST: Florida IN: REA SU: ERN

AW-JB -- FL003 -- 2993 06/17/93 10:15 EDT
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Publication:PR Newswire
Date:Jun 17, 1993
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