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DOSKOCIL ANNOUNCES SALE OF COMMON STOCK AND YEAR-END EARNINGS REPORT

 HUTCHINSON, Kan., Feb. 17 /PRNewswire/ -- Doskocil Companies Incorporated (NASDAQ: DOSK) announced today that it has signed a stock purchase agreement with the investment firm of Joseph Littlejohn & Levy (JLL). Under the agreement, JLL would purchase from the company two million newly-issued shares of common stock at $15 a share. The company intends to use the proceeds from the sale to restructure its long-term financing arrangements. As a result of this purchase JLL will own approximately 25 percent of the company's outstanding common stock and may increase its holdings to 33 percent by purchasing additional shares in open-market transactions from time to time. JLL will hold the company's common stock subject to certain restrictions. The transaction is expected to close within 30 days and is subject to approval by the company's bank group and expiration of federal regulatory notice periods, among other preclosing conditions. Seven individuals selected by JLL will join the current directors of the company as member of an expanded 15-person board of directors.
 John T. Hanes, chairman and CEO of Doskocil, stated: "The company welcomes JLL as a partner in the future of Doskocil. With the financial strength and flexibility that results from this equity investment we believe that the company will be in a position to expand its presence in the processed meat industry, capitalize on the synergies inherent in our existing businesses, and explore expansion opportunities in complementary business lines."
 JLL's Paul S. Levy stated: "JLL is delighted to make this investment in a quality company and looks forward to working with the management of the company to build the company's business and maximize shareholder value."
 The company also announced fourth quarter 1992 operating results today. For the fourth quarter of 1992, the company posted a net loss of $28.6 million, or $4.94 per share, which includes the effects of a provision for plant closing of $32.0 million, as previously announced. The plant closing provision is related to the elimination of the company's last remaining slaughter operation and the restructuring of its Logansport, Ind., processing operations. The closing of the Logansport slaughter operation is the final step in the company's plan to improve operating results by withdrawing from the low margin slaughter and fresh meat business and concentrate on higher margin processed meat operations.
 Without the effects of the plant closing provision, fourth quarter income before taxes would have been $3.4 million compared to $5.0 million for the prior year. This decline in pre-tax profit of $1.6 million is primarily attributed to the difficult environment that existed in the fresh pork market during the fourth quarter of 1992. Net income for the fourth quarter of the prior year was $3.9 million.
 Sales increased $9.4 million, or 4.5 percent, in the fourth quarter of 1992 to $218.1 million from $208.7 million for the same period last year. This increase in sales is primarily due to increased volume partially offset by the pricing pressures in the fresh pork market. For the year ended Jan. 2, 1993, annual sales totaled $770.7 million compared to $820.2 million for the full, combined twelve months of 1991. The decline in annual sales is primarily attributable to a decrease in sales price per pound resulting from decreases in raw material costs during 1992, partially offset by increased sales volume.
 For 1992, the company's net loss, including the effects of the provision for plant closing, was $26.8 million, or a per share net loss of $4.63. For the 1991 twelve month period, which reflected items related to the company's third quarter 1991 reorganization under Chapter 11 of the U.S. Bankruptcy Code, including an extraordinary gain of $113.8 million as explained below, the company posted net income of $69.3 million for the combined pre-confirmation and post-confirmation periods.
 Commenting on operating results achieved during 1992, Theodore A. Myers, senior vice president and chief financial officer, said, "Excluding the impact of the provision for plant closing of $32.0 million relating to the closing of our Logansport slaughter operation and the withdrawal from the low margin slaughter and fresh meat business, our annual operating income for 1992 was approximately the same as combined results for 1991, which included both pre-confirmation and post-confirmation periods." Myers continued "Considering the highly competitive nature of the fresh pork market during the fourth quarter of 1992 and the greater than $4.0 million adverse impact from the strike in the second quarter, I believe that the company's operating results were a good indication of the strength of our continuing business."
 Due to the company's third quarter 1991 Chapter 11 reorganization, the 1991 operating results were impacted by an extraordinary gain from forgiveness of debt of $113.8 million and by Chapter 11-related reorganization expenses totaling $41.0 million. Therefore, comparisons of 1992's annual operating results and per share figures with 1991's should only be made with the understanding that the 1991 twelve month operating results include both the nine month pre-confirmation and three month post-confirmation amounts.
 Doskocil specializes in processing and marketing boneless hams, sausage, bacon and other branded and processed meat products for the foodservice, delicatessen and retail markets. The company also supplies pepperoni, beef and pork toppings to the pizza industries.
 DOSKOCIL COMPANIES INCORPORATED
 Condensed Consolidated Statements of Operations
 (Unaudited, in thousands, except per share figures)
 Three months ended Year Year ended 12/28/91
 ended Three Nine
 1/2/93 months months
 ended ended
 1/2/93 12/28/91 1/2/93 12/29/91 9/28/91
 (post-confirmation) (pre-
 confirmation)
 Net sales $218,131 $208,691 $770,687 $208,691 $611,529
 Cost of sales 186,782 175,947 661,349 175,947 533,543
 Gross Profit 31,349 32,744 109,338 32,744 77,986
 Operating expenses:
 Selling 16,811 16,341 58,920 16,341 44,201
 General and
 administrative 6,546 6,114 27,215 6,114 20,762
 Provision for plant
 closing 32,000 -- 32,000 -- --
 Total operating
 expenses 55,357 22,455 118,135 22,455 64,963
 Operating income (24,008) 10,289 (8,797) 10,289 13,023
 Other income (expense):
 Interest and
 financing costs (2,811) (3,795) (11,485) (3,795) (16,594)
 Amortization of
 intangible assets (1,666) (1,436) (6,307) (1,436) (3,963)
 Other, net (75) (40) 112 (40) 62
 Income (loss)
 before reorganization
 items (28,560) 5,018 (26,477) 5,018 (7,472)
 Reorganization items -- -- -- -- (40,952)
 Income (loss) before
 income taxes (28,560) 5,018 (26,477) 5,018 (48,424)
 Provision for
 income taxes (24) (1,075) (357) (1,075) --
 Income (loss) before
 extraordinary item (28,584) 3,943 (26,834) 3,943 (48,424)
 Extraordinary gain -
 forgiveness of debt -- -- -- -- 113,794
 Net income (loss) (28,584) 3,943 (26,834) 3,943 65,370
 Earnings (loss) per
 share - primary
 and fully
 diluted(A):
 Income (loss)
 before
 extraordinary
 item ($4.94) $0.68 ($4.63) $0.68 ($9.46)
 Extraordinary gain
 - forgiveness
 of debt -- -- -- -- 22.24
 Net income (loss) ($4.94) $0.68 ($4.63) $0.68 12.78
 Weighted average
 number of common
 and common
 equivalent shares
 outstanding -
 primary and
 diluted 5,791 5,790 5,790 5,790 5,116
 (A) -- The per share amounts for the period ended Sept. 28, 1991, do not provide meaningful comparisons due to the company's Chapter 11 reorganization effective Sept. 28, 1991.
 -0- 2/17/93
 /CONTACT: Theodore A. Myers, senior vice president and chief financial officer of Doskocil Companies Incorporated, 316-663-1005, or J. Desmond Towey or Bernadette McLaughlin of Desmond Towey & Associates, 212-888-7600, for Doskocil Companies Incorporated, or Yvonne V. Cliff, partner at Joseph Littlejohn & Levy, 212-644-8666, for Doskocil Companies Incorporated/
 (DOSK)


CO: Doskocil Companies Incorporated ST: Kansas IN: FOD SU: ERN

LD-TS -- NY001 -- 7117 02/17/93 08:04 EST
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Date:Feb 17, 1993
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