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WARNACO REPORTS FOURTH QUARTER AND FULL YEAR GAINS IN OPERATING INCOME

WARNACO REPORTS FOURTH QUARTER AND FULL YEAR GAINS IN OPERATING INCOME
 NEW YORK, Feb. 13 /PRNewswire/ -- Warnaco Inc., a leading designer, manufacturer and marketer of women's intimate apparel and men's shirts, sportswear and accessories, today reported gains in operating income of 16.3 percent for the fourth quarter of 1991 and operating income before non-recurring items of 18.1 percent for the year ended Jan. 4, 1992.
 Revenues were up 1.9 percent in the fourth quarter and 2.6 percent for the full year, resulting from increased intimate apparel revenues of 10 percent in both the fourth quarter and full year, partially offset by lower menswear revenues due to the downsizing of the company's knitwear division, which charges were taken in the third quarter 1991.
 For the fourth quarter of 1991, Warnaco's operating income of 21.5 million increased from 18.5 million for the prior year. This resulted from a strong 3 percent increase in gross margins from 34.3 percent in 1990 to 37.2 percent in 1991 on slightly higher revenues. Similarly, operating income before non-recurring items for the fiscal year ended Jan. 4, 1992, of $70.8 million compared with $59.9 million for the fiscal year ended Jan. 5, 1991. This resulted from higher gross profit of $4.6 million and a reduction in selling, general and administrative expenses of $6.3 million.
 EBITA before non-recurring items for fiscal year 1991 of $91.6 million or 16.3 percent of net revenues increased 12 percent from $81.7 million or 14.9 percent of net revenues for fiscal year 1990.
 The company generated income from continuing operations of $1.5 million in the fourth quarter of 1991 vs. a loss from continuing operations of $0.1 million in the fourth quarter of 1990.
 For the full year 1991, loss from continuing operations of $19.5 million includes $13 million of non-recurring charges related to the downsizing of the men's knitwear manufacturing facilities and $15.6 million of acquisition related non-cash amortization and depreciation which declines to $10 million over the next five years. For the full year 1990, loss from continuing operations of $7.9 million included $3.5 million of non-recurring gain relating to the early retirement of long- term debt and $16.5 million of acquisition related non-cash amortization and depreciation. Without these items, 1991 would have generated income from continuing operations of $9.1 million compared to 1990 income from continuing operations of $5.1 million.
 THE WARNACO GROUP, INC.
 Consolidated Statements of Operations
 Periods ended Quarter Pct. Year Pct.
 1/4/92 1/5/91 Inc/ 1/4/92 1/5/91 Inc/
 (Dec) (Dec)
 Net revenues $158,268 $155,340 1.9 $562,529 $548,125 2.6
 Cost of goods sold 99,407 101,987 -- 367,135 357,300 --
 Gross profit 58,861 53,353 -- 195,394 190,825 --
 S,G&A 37,368 34,868 -- 124,623 130,900 --
 EBIT before non-
 recurring 21,493 18,485 16.3 70,771 59,925 18.1
 EBIT percent of sales 13.6 11.8 -- 12.6 10.9 --
 Amortization and
 depreciation 5,482 4,598 -- 20,827 21,821 --
 EBITDA before non-
 recurring 26,975 23,083 16.9 91,598 81,746 12.1
 EBITDA percent sales 17.0 14.9 -- 16.3 14.9 --
 Non-recurring (income)
 expense -- -- -- 13,003(A) (3,500)(B)
 Adjusted operating
 income 21,493 18,485 -- 57,768 63,425 --
 Interest expense 16,836 17,280 -- 72,276 68,033 --
 Income (loss) from
 cont. opers. before
 income taxes 4,657 1,205 -- (14,508) (4,608) --
 Provision for
 income taxes 3,169 1,344 -- 5,006 3,263 --
 Income (loss) from
 continuing opers. 1,488 (139) -- (19,514) (7,871) --
 Extraordinary item (1,059) -- -- (2,859)(C) -- --
 Income (loss) from
 discontinued opers. -- (2,962) -- (6,076)(D) (8,855) --
 Net income (loss) 429 (3,101) -- (28,449) (16,726) --
 Preferred dividend (1,375) (1,375) -- (5,500) (5,500) --
 Net income (loss)
 to common (946) (4,476) -- (33,949) (22,226) --
 (A) -- Restructuring charge of the company's men's knitwear operations associated with the downsizing of manufacturing facilities and write-off of certain trademarks and licenses, as outlined on page 12 of the prospectus.
 (B) -- Reflects a non-recurring gain from the retirement of long- term debt for less than face value.
 (C) -- Reflects the write-off of deferred financing costs associated with the early extinguishment of debt, as outlined on page 17 of the prospectus.
 (D) -- Represents the company's discontinued women's sportswear and activewear divisions as outlined on page F-7 of the prospectus.
 -0- 2/13/92
 /CONTACT: Dariush Ashrafi, 212-370-8248, for Warnaco/
 (WAC) CO: Warnaco, Inc. ST: New York IN: TEX SU: ERN


CK-OS -- NY041 -- 9725 02/13/92 11:57 EST
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Date:Feb 13, 1992
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