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Pathmark Reports Fourth Quarter And Fiscal 1997 Results.

CARTERET, N.J.--(BUSINESS WIRE)--March 25, 1998--Pathmark Stores, Inc. reported results for its 1997 fourth quarter and fiscal year ended January 31, 1998.

Sales for the fourth quarter of fiscal 1997 were $940.7 million compared to $955.3 million the prior year. For fiscal 1997, sales were $3,695.9 million compared to $3,710.5 million in fiscal 1996. Same store sales increased 1.0% and 0.8% in the fourth quarter and the fiscal year, respectively.

Operating cash flow (FIFO EBITDA) for the fourth quarter of fiscal 1997 was $60.1 million compared to $64.9 million in the prior year and for fiscal 1997 was $201.2 million compared to $236.4 million in the prior year. Operating earnings for the fourth quarter of fiscal 1997 were $41.9 million compared to $22.7 million in the prior year and for fiscal 1997 were $119.3 million compared to $127.1 million in the prior year.

The company reported a net loss of $0.8 million in the fourth quarter of fiscal 1997 compared to a net loss of $10.0 million in the prior year and for fiscal 1997 a net loss of $35.7 million compared to a net loss of $20.8 million in the prior year. The comparisons of operating results were impacted by pretax LIFO credits of $4.6 million in the fourth quarter of fiscal 1997 compared to $3.0 million in the prior year and $5.4 million in fiscal 1997 compared to $1.3 million in the prior year. Current year results also include a $7.5 million extraordinary item representing a net loss on early extinguishment of debt, primarily related to the refinancing of the company's bank credit agreement. Operating results for the fourth quarter and fiscal year of 1996 included a $9.1 million pretax charge to record reorganization and restructuring costs, including early retirement and severance programs, an $8.8 million pretax charge related to unfavorable lease commitments of certain unprofitable stores held for sale in the company's southern region and a $5.4 million pretax charge to write down certain fixed assets held for sale to their estimated net realizable values. Fiscal 1996 results also included a $0.9 million extraordinary item representing a net loss on early extinguishment of debt.

Ron Marshall, Executive Vice President and Chief Financial Officer, stated, "We are encouraged by our improved same store sales for the fourth quarter which represents four consecutive quarters of same store sales growth."

Pathmark Stores, Inc. is a regional supermarket company currently operating 135 supermarkets primarily in the New York-New Jersey and Philadelphia metropolitan areas.

 PATHMARK STORES, INC.
 (Dollars in Millions)

 13 Weeks Ended 52 Weeks Ended
 1/31/98 2/1/97 1/31/98 2/1/97

Sales $940.7 $955.3 $3,695.9 $3,710.5
Operating Earnings $41.9 $22.7(b) $119.3 $127.1(b)
Interest Expense (41.3) (40.8) (164.2) (161.4)
Earnings (loss)
 before taxes 0.6 (18.1) (44.9) (34.3)
Income tax
 (provision) benefit (1.4) 8.1 16.7 14.4
Loss before
 extraordinary items (0.8) (10.0) (28.2) (19.9)
Extraordinary Items,
 net of tax (a) -- -- (7.5) (0.9)
Net loss $(0.8) $(10.0) $(35.7) $(20.8)
Operating cash flow (c) $60.1 $64.9 $201.2 $236.4
Operating cash flow
 (% to sales) 6.4% 6.8% 5.4% 6.4%
Memo: LIFO credit $4.6 $3.0 $5.4 $1.3


(a) Represents net loss on early extinguishment of debt.

(b) Includes a $9.1 million pretax charge to record reorganization
and restructuring costs, including early retirement and severance
programs, an $8.8 million pretax charge related to unfavorable lease
commitments of certain unprofitable stores held for sale in the
company's southern region and a $5.4 million pretax charge to write
down certain fixed assets held for sale to their estimated net
realizable values.

(c) Operating cash flow represents earnings from operations before
interest, income taxes, depreciation, amortization, LIFO, restructuring
charges and unusual transactions.




CONTACT: Pathmark Stores, Inc.

Ron Marshall

732/499-3205
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Publication:Business Wire
Date:Mar 25, 1998
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