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REVCO ANNOUNCES CONTINUED STRONG GAINS IN SALES AND PROFITS

 TWINSBURG, Ohio, Sept. 21 /PRNewswire/ -- First quarter results for fiscal year 1994 were announced at Revco D.S., Inc. (NYSE: RXR) stockholders' meeting today.
 Sales advanced to $521.0 million representing a 10.2 percent increase from last year's first quarter sales of $472.9 million. Comparable store sales increased 7.4 percent for the quarter.
 Operating profit rose to $11.1 million, an 80.9 percent improvement from last year's operating profit of $6.1 million. Earnings before interest, income taxes, depreciation and amortization ("EBITDA") were $22.8 million, an improvement of 41.1 percent over the $16.2 million reported for last year's first quarter.
 Net income for the quarter was $2.7 million or $0.05 per share (based on 50.0 million shares outstanding), an improvement of $4.2 million from last year's first quarter net loss of $1.5 million or $0.04 per share (based on 35.6 million shares outstanding).
 Excluding the impact of the non-cash charge for amortization of goodwill, Revco generated net income of $6.8 million or $.14 per share on 50.0 million shares compared to $2.5 million or $0.07 per share on 35.6 million shares last year.
 The company has not borrowed under its $150.0 million revolving credit facility. After prepaying an additional $7.5 million on its term loan reducing the balance to $127.5 million, the company's cash reserves remained strong at $21.0 million.
 D. Dwayne Hoven, president and chief executive officer of Revco, said, "The company's strong sales performance along with tighter controls on operating expenses resulted in a very healthy first quarter. Our first quarter 1994 continues the sales trend we began in January 1993. Since January, sales have improved 10.2 percent in total and 7.9 percent on a comparable store basis."
 Revco operates 1,190 drug stores in Georgia, Maryland, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Virginia and West Virginia. Revco trades on the New York Stock Exchange under the symbol RXR.
 Revco D.S., Inc. and Subsidiaries
 Consolidated Statements of Operations
 (dollars in thousands)
 (Unaudited)
 12 Weeks Ended
 Aug. 21, Aug. 22,
 1993 1992
 Sales $521,038 $472,874
 Cost of sales 365,375 333,238
 Operating expenses 132,865 123,478
 Depreciation and amortization 11,720 10,035
 Operating profit 11,078 6,123
 Interest expense, net 5,563 10,619
 Income (loss) before income taxes 5,515 (4,496)
 Income tax provision (benefit) 2,784 (2,953)
 Net income (loss) $2,731 ($1,543)
 Net income (loss) per share $0.05 ($0.04)
 Supplementary Data:
 Average number of shares outstanding 50,048,682 35,600,872
 Earnings before income taxes,
 interest, depreciation and
 amortization $22,798 $16,158
 Number of drug stores at end of period 1,194 1,147
 -0- 9/21/93
 /CONTACT: Carole McLeod, director of public relations of Revco, 216-425-9811/
 (RXR)


CO: Revco D.S., Inc. ST: Ohio IN: REA SU: ERN

KL-BM -- CL009 -- 4069 09/21/93 10:16 EDT
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Publication:PR Newswire
Date:Sep 21, 1993
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