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OW OFFICE WAREHOUSE REPORTS 1991 FOURTH-QUARTER AND YEAR-END RESULTS

OW OFFICE WAREHOUSE REPORTS 1991 FOURTH-QUARTER AND YEAR-END RESULTS
 VIRGINIA BEACH, Va., March 3 /PRNewswire/ -- OW Office Warehouse, Inc. (NASDAQ: OWWH) reported net sales of $139.6 million for the company's fiscal year ended Dec. 28, 1991, compared with $80.2 million for the fiscal year 1990, a 74 percent increase. Comparable store sales increases for the year were 13.4 percent for the 23 stores which had been opened for at least one year.
 After incurring $2.5 million in after tax pre-opening expenses for the year and a fourth-quarter non-recurring pre-tax charge of $1.9 million relating to the closing of three stores, the company had a net loss of $9.5 million ($1.89 per share) compared with pre-opening expenses of $1.6 million and a net loss of $3.5 million ($.88 per share) for the comparable fiscal year 1990.
 Fourth-quarter net sales rose to $44.2 million from 1990's fourth- quarter sales of $24.5 million, an 80 percent increase. Comparable store sales increases were 13.1 percent for the fourth quarter 1991 for the 23 stores which were open for at least one year. After incurring $.8 million in after tax pre-opening expenses and a non-recurring charge of $1.9 million related to the closing of three stores during the quarter, the company had a net loss of $4.4 million ($.76 per share) for the fourth quarter 1991. This compares with after tax pre-opening expenses of $.7 million and a net loss of $.7 million ($.18 per share) for the comparable quarter in 1990.
 Selling, general and administrative costs (SG&A) were reduced to 3.5 percent of fourth-quarter 1991 revenue from 4.4 percent of revenues in the fourth quarter 1990.
 During the fourth quarter, the company opened six stores, for a total of 42 stores opened as of Dec. 28, 1991. The company took a non- recurring charge of $1.9 million related to the closings of three stores. These three stores generated a $1.2 million store operating loss in 1991.
 In 1992, management intends to focus its efforts on strengthening its position in existing markets and on improving the performance of its current stores. The company intends to open five to ten (5-10) new stores, four of which opened in the first quarter.
 The closing of three unprofitable stores, a controlled store opening program, the sales maturation of current stores, and further reduction of G&A expenses as a percentage of sales are expected to contribute to the improvement of the company's operating results.
 The company does not anticipate the need for additional equity financing to support its 1992 expansion plans.
 OW OFFICE WAREHOUSE, INC.
 CONDENSED STATEMENTS OF OPERATIONS
 (In thousands, except per share amounts)
 (UNAUDITED)
 Three Months Ended Year Ended
 Dec. 28, Dec. 29, Dec. 28, Dec. 29,
 1991 1990 1991 1990
 Sales $ 44,171 $ 24,477 $ 139,570 $ 80,195
 Cost of goods sold and
 occupancy cost 36,510 18,807 112,796 62,460
 Gross profit 7,661 5,670 26,774 17,735
 Direct store expense 7,478 4,217 25,161 14,424
 Pre-opening expense 803 714 2,461 1,567
 General and administrative
 expense 1,554 1,068 5,627 4,048
 Non-recurring charges 1,946 --- 1,946 ---
 Total 11,781 5,999 35,195 20,039
 Operating loss (4,120) (329) (8,421) (2,304)
 Net interest expense 273 350 1,070 1,164
 Loss before income taxes (4,393) (679) (9,491) (3,468)
 Provision for income taxes 0 0 0 0
 Net loss $ (4,393) $ (679) $ (9,491) $ (3,468)
 Net loss per common and
 common equivalent share: $ (0.76) $ (0.18) $ (1.89) $ (0.88)
 Average common and common
 equivalent shares: 5,862.5 4,483.8 5,230.7 4,483.8
 -0- 3/3/92
 /CONTACT: R. Michael Rouleau of OW Office Warehouse, 804-671-2300/
 (OWWH) CO: OW Office Warehouse, Inc. ST: Virginia IN: REA SU: ERN


KD -- NY092 -- 4716 03/03/92 17:51 EST
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Publication:PR Newswire
Date:Mar 3, 1992
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