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CONTINENTAL MATERIALS REPORTS DRAMATIC IMPROVEMENT FOR FOURTH QUARTER AND YEAR

 CONTINENTAL MATERIALS REPORTS DRAMATIC IMPROVEMENT
 FOR FOURTH QUARTER AND YEAR
 CHICAGO, March 17 /PRNewswire/ -- Continental Materials Corporation (AMEX: CUO) today reported net income of $545,000, or 46 cents per share, for the fourth quarter and net income of $598,000, or 51 cents per share, for its fiscal year ended Jan. 3, 1992. These results reflect dramatic improvement from the net income of $78,000, or seven cents per share, in the year-ago fourth quarter and a net loss of $1,151,000 or 98 cents per share for the fiscal year ended Dec. 28, 1990.
 Net sales were up slightly to $73.5 million in 1991, from $73.1 million in 1990. Net sales improved to $20.3 million in the fourth quarter, from $17.3 million in the year-ago period. The increase was due mainly to mild weather and improved economic conditions in Colorado Springs which extended the construction season.
 Phoenix Manufacturing, Inc. of Phoenix, Ariz., enjoyed an increase in total sales and achieved record earnings, despite the sale of the salon hair dryer product line in June 1990. A major renovation of its finishing and water treatment systems in the fourth quarter of 1990 resulted in improved quality, increased plant efficiency and reduced costs. Fourth quarter sales improved slightly from the year-ago level, though earnings were modestly lower.
 The margins of the company's ready mix concrete, aggregates and construction materials subsidiaries, Transit Mix Concrete Co. and Castle Concrete Company of Colorado Springs, Colo., increased dramatically, as did their combined volumes. This was due to an improving local economy and the contract to supply sand and rock for the runway extension at the Colorado Springs Airport. The airport contract was completed during October 1991. Operating improvements and overhead reductions also contributed to their improved performance. Fourth quarter 1991 margins and volumes increased due to the above and mild weather, which enabled continued construction.
 Sales at Williams Furnace Co. of Colton, Calif., and at Imeco, Inc. of Polo and Dixon, Ill., declined in 1991 as a result of weak activity in the markets served, as well as the overall sluggish national economy. In spite of lower sales, Williams' earnings for the fourth quarter and 1991 were higher than the comparable prior-year periods. Imeco's 1991 profits declined, reflecting decreased volume and competitive market conditions. Imeco's fourth quarter sales improved as their markets strengthened somewhat; however, operating results remained flat.
 On Feb. 12, 1992, the company announced the negotiations with Hussmann Corp., a subsidiary of Whitman Corp., regarding the purchase of that company's Krack Corp. subsidiary, had been terminated. The company charged all costs incurred in connection with the terminated acquisition attempt against fourth quarter 1991 earnings. The after-tax charge for these costs amounted to approximately $560,000 or 48 cents per share.
 The provision for 1991 income taxes includes a $173,000 refund of state taxes and the reversal of tax contingencies reflecting the settlement, in favor of the company, of state tax audits for the years 1979 through 1981. In addition, the company received an interest payment of $360,000, which is reflected in 1991 earnings. This tax settlement increased 1991 net income by approximately $490,000, or 42 cents per share.
 Consolidated cash flow from operations was $5,132,000 in 1991, compared with $3,696,000 the previous year. The fourth quarter cash flow from operations increased to $3,918,000, compared with $3,382,000 in the fourth quarter of 1990.
 CONTINENTAL MATERIALS CORPORATION
 Summary of Sales and Earnings
 Three Months Ended Fiscal Year Ended
 1/3/92 12/28/90 1/3/92 12/28/90
 Net sales $20,273,000 $17,322,000 $73,544,000 $73,124,000
 Operating income 1,721,000 725,000 3,096,000 250,000
 Interest expense,
 net (163,000) (600,000) (1,976,000) (2,518,000)
 Write-off of
 terminated acquis-
 ition cost (900,000) -- (900,000) --
 Other income 202,000 106,000 418,000 517,000
 Income (loss)
 bef. inc. taxes $ 860,000 $ 231,000 $ 638,000 $(1,751,000)
 (Credit) provision
 for inc. taxes 315,000 1 53,000 40,000 (600,000)
 Net income (loss) $ 545,000 $ 78,000 $ 598,000 $(1,151,000)
 Net income (loss)
 per share $0.46 $0.07 $0.51 $0.98
 Average shares
 outstanding 1,174,000 1,174,000 1,174,000 1,173,000
 -0- 3/17/92
 /CONTACT: Keith Owens of Continental Materials, 708-291-1080/
 (CUO) CO: Continental Materials Corporation ST: Illinois IN: CST SU: ERN


AH -- NY064 -- 8802 03/17/92 13:24 EST
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Publication:PR Newswire
Date:Mar 17, 1992
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