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COLLINS & AIKMAN GROUP, INC. REPORTS FISCAL 1993 RESULTS

 CHARLOTTE, N.C., April 19 /PRNewswire/ -- Collins & Aikman Group, Inc. reported an operating loss of $80.8 million for the fiscal year ended January 29, 1994 compared to operating income of $48.0 million for the fiscal year ended January 30, 1993. Fiscal 1993 results include the write-down of goodwill of $144.8 million in the third quarter and a charge of $26.7 million related to the adoption of a management option plan in the fourth quarter. Fiscal 1992 results included a restructuring charge of $10 million in the fourth quarter. Excluding the goodwill write-down and management equity plan expense in fiscal 1993 and the fiscal 1992 restructuring charge, operating income increased 56.5% from $58.0 million in fiscal 1992 to $90.7 million in fiscal 1993. Sales from continuing operations were $1,305.5 million, an increase of 2.2% over the $1,277.5 million realized in the fiscal year ended January 30, 1993.
 The fiscal quarter and year ended January 30, 1993 each included one more week of operations than the comparable periods of the current year.
 As previously announced on January 28, 1994, the Company sold Kayser- Roth Corporation for approximately $100 million cash and a $70 million Senior Bridge Note from the purchaser. As a result of the sale of Kayser-Roth, which previously comprised the consumer legwear segment, the Company has redefined its operations into three new reporting segments; automotive products, interior furnishings, and wallcoverings. The automotive products segment includes four major interior trim products - automotive seat fabric, molded floor carpet, accessory floor mats and luggage compartment trim - and convertible top stacks. The interior furnishings segment, which is comprised of the Decorative Fabrics and Floorcoverings groups, designs and manufactures residential and commercial upholstery fabric and carpets for institutional and commercial customers. The wallcoverings segment manufactures wallcoverings principally for the residential sector.
 The automotive products segment had operating income of $55.3 million in
fiscal 1993 compared to operating income of $42.3 million in fiscal 1992. For the fifty-two week fiscal year ended


January 29, 1994, sales increased 5.3% to $677.9 million as compared to the fifty-three week fiscal year ended January 30, 1993.
 Operating income for the interior furnishings segment increased 17.4% from $34.6 million for fiscal 1992 to $40.7 million in fiscal 1993 on a 3.9% sales increase from $391.8 million to $407.2 million.
 Excluding the write-down of goodwill in fiscal 1993 and restructuring costs in fiscal 1992, operating income for the wallcoverings segment increased 34.7% from $5.0 million in fiscal 1992 to $6.8 million in fiscal 1993 despite a 8.9% decrease in sales to $220.4 million.
 After interest expense and income taxes, the Company reported a loss from continuing operations of $176.7 million as compared with a loss from continuing operations of $41.4 million in the prior year.
 Loss from discontinued operations, including loss on disposal of discontinued operations, was $115.6 million as compared to a loss of $229.8 million last year. The fiscal 1993 loss is primarily attributable to an additional charge arising from the Company's determination as of the end of the second quarter that it would be unable to sell Builders Emporium as an ongoing entity. The fiscal 1992 loss principally reflected the expected loss on the anticipated sale of Builders Emporium.
 After the impact of discontinued operations, the Company reported a net loss of $292.3 million for the fiscal year ended January 29, 1994 compared to a net loss of $271.3 million for the prior year.
 Collins & Aikman Group, Inc., a wholly owned subsidiary of Collins & Aikman Holdings Corporation, owns Collins & Aikman Corporation. Collins & Aikman Holdings Corporation is jointly owned by Blackstone Capital Partners L.P. and Wasserstein Perella Partners, L.P. and their respective affiliates.
 COLLINS & AIKMAN GROUP, INC.
 Financial Highlights
 (in thousands)
 Thirteen Fourteen
 Weeks Ended Weeks Ended
 January 29, January 30,
 1994 1993
 Net sales $ 342,151 $ 323,426
 Cost of goods sold 257,047 241,863
 Selling, general and
 administrative expenses 50,177 66,867
 Management equity plan
 expense (a) 26,736 -
 Restructuring costs (b) (24,000) 10,000
 Goodwill write-down (c) - -
 309,960 318,730
 Operating income (loss) 32,191 4,696
 Interest expense, net (d) (20,933) (22,530)
 Income (loss) from continuing
 operations before income taxes 11,258 (17,834)
 Income taxes (benefit) 1,238 (7,058)
 Income (loss) from continuing
 operations 10,020 (10,776)
 Discontinued operations:
 Loss from discontinued
 operations, net of income
 taxes - (27,013)
 Loss on disposal, net of income
 taxes (e) - (184,000)
 Net income (loss) $ 10,020 $ (221,789)
 Fifty-Two Fifty-Three
 Weeks Ended Weeks Ended
 January 29, January 30,
 1994 1993
 Net sales $1,305,517 $1,277,500
 Cost of goods sold 995,790 978,473
 Selling, general and
 administrative expenses 219,028 241,057
 Management equity plan
 expense (a) 26,736 -
 Restructuring costs (b) - 10,000
 Goodwill write-down (c) 144,800 -
 1,386,354 1,229,530
 Operating income (loss) (80,837) 47,970
 Interest expense, net (d) (84,241) (87,075)
 Income (loss) from continuing
 operations before income taxes (165,078) (39,105)
 Income taxes (benefit) 11,614 2,299
 Income (loss) from continuing
 operations (176,692) (41,404)
 Discontinued operations:
 Loss from discontinued
 operations, net of income
 taxes (4,462) (45,849)
 Loss on disposal, net of income
 taxes (e) (111,137) (184,000)
 Net income (loss) $ (292,291) $ (271,253)
 (a) Represents expense related to stock option plan adopted by
 the Company on January 28, 1994.
 (b) During the third quarter ended October 30, 1993, the Company
 recorded restructuring costs aggregating $24 million,
 principally related to the write-down of certain surplus or
 underutilized assets of the Company's automotive and
 wallcoverings businesses and to provide for the obsolescence
 of certain manufacturing processes as a result of shifts in
 customer demand. During the fourth quarter, management
 reevaluated its plan to restructure these manufacturing
 facilities and based on changes in product mix and
 underlying improvement in certain of the Company's
 businesses, management has concluded that the assets and
 facilities identified previously can be utilized at a level
 of production that would not result in the impairment of the
 asset values. Accordingly, in the fourth quarter
 management has revised its estimate and reversed these
 charges. Restructuring costs during the fourth quarter of
 fiscal 1992 relate to the closure of certain manufacturing
 and distribution facilities in the wallcoverings segment.
 (c) The substantial losses of Builders Emporium and the
 inability of the Company to sell Builders Emporium as an
 ongoing entity left the Company with materially higher
 leverage and interest costs than previously anticipated.
 The inability of the Company to sell Dura at an acceptable
 price and the sale of Kayser-Roth at a price and on terms
 that were worse than management's prior expectations of
 value were additional adverse factors. Prior to the end of
 the third quarter, management explored debt recapitalization
 alternatives and the possibility of raising new equity
 capital. The indications from the financial community at
 that time were that a debt recapitalization was not likely
 to significantly reduce the Company's interest burden and
 that raising new equity capital to deleverage the Company
 was not feasible at that time. Based on projected future
 results, which management believed were the most likely
 scenario given the Company's capital structure at October
 30, 1993, management determined that its wallcoverings
 business would not support the amortization of its allocated
 portion of the Company's remaining goodwill balance.
 Accordingly, the Company recorded a write-down of $144.8
 million during the third quarter ended October 30, 1993 to
 reflect the portion of Wallcoverings' goodwill balance which is
 not forecasted to be recovered over the projection period.
 (d) Excludes interest expense related to discontinued operations
 of $18.9 million and $23.0 million for the fiscal years
 ended January 29, 1994 and January 30, 1993, respectively,
 and $3.7 and $6.3 million for the quarters ended January 29,
 1994 and January 30, 1993, respectively. Interest expense
 has been allocated to discontinued operations based upon the
 ratio of net book value of discontinued operations
 (including reserves for loss on disposal) to consolidated
 invested capital. Interest allocated to discontinued
 operations was $13.1 million and $19.7 million for the
 fiscal years ended January 29, 1994 and January 30, 1993,
 respectively, and $2.0 million and $5.4 million for the
 quarters ended January 29, 1994 and January 30, 1993.
 Interest expense is net of interest income of $4.3 million
 and $4.0 million for the fiscal years ended January 29, 1994
 and January 30, 1993, respectively, and $.8 million and $.9
 million for the quarters ended January 29, 1994 and January
 30, 1993, respectively.
 (e) Loss on disposal of discontinued operations for the fiscal
 year ended January 29, 1994 primarily includes the provision
 of additional reserves for losses and costs in connection
 with the sale or disposition of Builders Emporium inventory,
 real estate and other assets and to provide for employee
 severance and other costs. Loss on disposal for the fourth
 quarter ended January 30, 1993 principally included reserves
 for the disposition of Builders Emporium.
 -0- 4/19/94
 /CONTACT: Paul Meeks of Collins & Aikman, 704-548-2382/


CO: Collins & Aikman Group, Inc. ST: North Carolina IN: TEX CHM SU: ERN

CM -- CH016 -- 7195 04/19/94 17:20 EDT
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Date:Apr 19, 1994
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