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P.A. BERGNER & CO. REPORTS $34.4 MILLION OPERATING PROFIT FOR FOURTH QUARTER 1991; SALES, OPERATING EARNINGS EXCEED PLAN

 P.A. BERGNER & CO. REPORTS $34.4 MILLION OPERATING PROFIT
 FOR FOURTH QUARTER 1991; SALES, OPERATING EARNINGS EXCEED PLAN
 MILWAUKEE, April 1 /PRNewswire/ -- P.A. Bergner & Co. Holding Company today reported earnings of $34.4 million for the fourth quarter fiscal period ending Feb. 1, 1992. These results were realized before interest, taxes, non-cash deductions and Chapter 11 expenses (EBITDA) for this period. The $34.4 million in earnings exceeded the company's planned profit projections by $2 million and exceeded actual 1990 fourth quarter earnings by $7 million. Fourth quarter sales were $360 million, which were slightly above projections.
 Operating earnings (EBITDA) for fiscal year 1991 were $60 million with total sales of $1.157 billion, exceeding planned profit projections by $4 million. Sales for the year exceeded the company's projections by $7 million but were 4.4 percent below the previous year's actual total, on a comparable store basis, due to the difficult retailing environment. The company reported a loss before taxes of $520 million. This loss came after Chapter 11 costs of $31 million and a $444 million one-time, non-cash write-off.
 This extraordinary, non-operating charge was recorded in the fourth quarter in order to write off "goodwill" that had been previously characterized as an intangible asset in conjunction with the company's acquisitions of Boston Store in 1985 and Carson Pirie Scott & Co. in 1989. The goodwill was then recognized because the company believed that the book value of the acquired assets was understated compared with their ultimate value.
 Soon after the Chapter 11 filing, in accordance with generally accepted accounting principles, P. A. Bergner & Co. determined that it should no longer reflect any value of goodwill for the assets of previously acquired companies. At that time the company, in publicly forecasted results to the Creditor's Committees and the Bankruptcy Court, projected this write-off would occur in the fourth quarter of fiscal 1991.
 Stantont economic downturns in recent history and experienced the trauma of filing for Chapter 11 in early fall.
 "It was also a year that tested our resolve to preserve a great retailing franchise and I am proud to say that we met the challenge. I am particularly pleased that we have exceeded our sales and operating profit projections since the filing and actually generated a 23 percent increase in operating earnings over last year's fourth quarter, during this very difficult year. This accomplishment demonstrated our ability to manage our business and remain focused on our customer."
 Bluestone concluded: "Our fourth quarter favorable results were critical for us because we not only exceeded our earnings projections but established a solid foundation for the development of our reorganization plan. Our priority at the time of the Chapter 11 filing was to ensure 'business as usual' for our customers, vendors, suppliers and associates while we established a deliberate, cooperative process to enable us to successfully emerge from bankruptcy. I believe we have done just that."
 P. A. Bergner & Co. filed for Chapter 11 protection with the U.S. Bankruptcy Court on Aug. 23, 1991, in Milwaukee. The company owns and operates 68 stores in Wisconsin, Illinois, Indiana and Minnesota under the Boston Store, Carson Pirie Scott and Bergner's store names.
 -0- 4/1/92
 /CONTACT: Edward P. Carroll of P.A. Bergner & Co., 414-347-5340; or Jerry Seeman of Burson-Marsteller, 212-614-5135, for P.A. Bergner & Co./ CO: P.A. Bergner & Co. ST: Wisconsin IN: REA SU: ERN


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Publication:PR Newswire
Date:Apr 1, 1992
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