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SYLVAN FOODS HOLDINGS, INC. REPORTS SECOND QUARTER RESULTS

 SARVER, Pa., Aug. 4 /PRNewswire/ -- For the three-month period ended July 4, 1993, Sylvan Foods Holdings, Inc. (NASDAQ: SYLN) today reported net sales of $24.8 million and net income of $1.0 million, or $.15 per common share.
 For the comparable period in 1992, net sales were $26.3 million and net income was $1.4 million, or $.22 per common share. A 32 percent sales gain by the North American spawn production subsidiaries as well as increases in European spawn sales were offset by production downsizing and quality difficulties of the Moonlight Mushrooms, Inc., subsidiary.
 For the six-month period ended July 4, 1993, sales of $51.3 million were 3 percent below the comparable 1992 period, and net income of $1.8 million (before the one-time cumulative effect of an accounting change) fell short of the $3.1 million net income for the comparable six- month period in 1992. The adoption of the accounting principle change to provide for future postretirement medical and other benefits at the Moonlight subsidiary resulted in a $9.9 million noncash charge against earnings for the 1993 period.
 North American spawn operations and the Quincy Farms mushroom operation posted income gains for the quarter ended July 4, 1993, vs. the same quarter of 1992, while the European spawn results were essentially unchanged despite an unsettled European economic environment. The decline in before tax income to $1.6 million was due almost exclusively to postretirement benefit costs and quality difficulties at Moonlight. Moonlight reported an operating loss in the second quarter of 1993 vs. an operating profit in the same period of 1992.
 Sylvan Chairman Dennis C. Zensen said, "We are pleased with the steady expansion of our spawn operations in North America and Europe and with the performance at our Quincy mushroom facility. We continue to strive for a long-term resolution of our problems at Moonlight."
 Sylvan Foods Holdings, Inc. is the leading worldwide producer and distributor of mushroom spawn and other spawn-related products and services and the third largest domestic grower and marketer of fresh mushrooms.
 SYLVAN FOODS HOLDINGS, INC. AND SUBSIDIARIES
 Condensed Consolidated Statements of Income
 (Unaudited, in millions - expect share data)
 Period ended Three Months Six Months
 7/4/93 6/28/92 7/4/93 6/28/92
 Net Sales $24.8 $26.3 $51.3 $52.7
 Operating Income 1.5 2.6 3.1 5.5
 Interest Expense Less
 Other Income (.1) .4 .1 .3
 Net Income Before Income
 Taxes and Cumulative
 Effect of Change in
 Accounting 1.6 2.2 3.0 5.2
 Cumulative Effect of
 Change in Accounting
 (net of tax) -- -- (9.9) --
 Net Income 1.0 1.4 (8.1) 3.1
 Earnings Per Common
 Share $.15 $.22 $(1.31) $.51
 Weighted Average
 Number of Shares 6,243,817 6,143,802 6,196,366 6,141,155
 Condensed Consolidated Balance Sheet
 July 4, 1993
 (Unaudited, in millions)
 Assets Liabilities and Equity
 Cash & Equivalents $ 5.3 Short-Term Debt $ 5.9
 Accounts Receivable 10.7 Accounts Payable 2.7
 Inventories 8.4 Other Current Liabilities 5.5
 Other Current Assets 2.5 Total Current Liabilities 14.1
 Total Current Assets 26.9
 Long-Term Debt 29.9
 Property, Plant & Postretirement Medical
 Equipment 42.4 Benefits 15.3
 Other Long-Term
 Other Assets 15.9 Liabilities 6.0
 Stockholders' Equity 19.9
 Total Assets 85.2 Total Liabilities and
 Equity 85.2
 -0- 8/4/93
 /CONTACT: Bill Mooney of Sylvan Foods, 412-295-3910/
 (SYLN)


CO: Sylvan Foods Holdings, Inc. ST: Pennsylvania IN: FOD SU: ERN

KC-CD -- PG005 -- 9354 08/04/93 11:58 EDT
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Publication:PR Newswire
Date:Aug 4, 1993
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