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KASH n' KARRY NARROWS LOSS; 1992 OPERATING PROFIT UP

 KASH n' KARRY NARROWS LOSS; 1992 OPERATING PROFIT UP
 TAMPA, Fla., Sept. 15 /PRNewswire/ -- Kash n' Karry Food Stores, Inc. reported Tuesday a pre-tax loss for its 1992 fiscal year ended Aug. 2 of $7.3 million, on gross sales of $1.07 billion, compared to a net loss of $39 million on sales of $1.06 billion in 1991. Operating profit for the 53-week year improved to $57.7 million from $57.6 in fiscal 1991.
 Ron Floto, the chief executive officer of the Tampa-based supermarket chain, said Kash n' Karry continues to best its post-LBO financial timetable. Kash n' Karry average sales per store increased in 1992, as they have every year since the company's 1988 leveraged buy-out (LBO), despite a sluggish economy and the opening of 21 stores by competitors. The $32 million reduction in losses from 1991 keeps the company on its schedule to regain net profitability in fiscal year 1994, he said. The 112-store chain posted its first quarterly net profit in the third quarter of 1992 -- another planned benchmark. Kash n' Karry has been consistently profitable on an operating basis since the LBO.
 In fiscal 1992, Kash n' Karry management restructured the company's long-term debt and credit facilities to prepare for its ongoing expansion program. In November 1991, investors bought $30 million in common stock. In January 1992, Kash n' Karry issued $50 million in 12.37 percent senior notes to retire 14.75 percent senior subordinated reset notes and substantially reduce its bank debt. As a result, Kash n' Karry now is scheduled to pay $1.7 million in bank loan principal payments in 1993, instead of $20.5 million. In addition, two established major credit lines were not used.
 Floto said 1992 restructuring and Kash n' Karry's on-schedule financial performance has freed up working capital and re-energized its growth program. Two 28,000-square-foot stores in Sarasota underwent major remodeling and 16,000-square-foot expansions. And the company acquired sites for four new stores to be built in fiscal 1993 in the Hyde Park neighborhood in Tampa, the Allendale neighborhood in St. Petersburg, north Ocala and Zephyrhills. Six new stores are schedule to open by July 1993. Kash n' Karry recently announced the acquisition of a store in Ocala, and Floto said the company has 12 other store projects under consideration. Most of the new stores will be modeled after Kash n' Karry's new 46,000-square-foot prototype store, like the one that opened this year in Plant City.
 -0- 9/15/92
 /CONTACT: Richard D. Coleman of Kash n' Karry, 813-621-0273/ CO: Kash n' Karry ST: Florida IN: REA SU: ERN


JJ-JB -- FL004 -- 9467 09/15/92 08:56 EDT
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Publication:PR Newswire
Date:Sep 15, 1992
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