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DR PEPPER/SEVEN-UP COMPANIES REPORTS RECORD THIRD QUARTER, NINE MONTH RESULTS FOR SALES AND OPERATING PROFIT

 DR PEPPER/SEVEN-UP COMPANIES REPORTS RECORD THIRD QUARTER,
 NINE MONTH RESULTS FOR SALES AND OPERATING PROFIT
 DALLAS, Oct. 30 /PRNewswire/ -- Dr Pepper/Seven-Up Companies, Inc., the industry's third leading maker of soft drink concentrates and syrups, today reported record net sales and operating profit for the nine months and quarter ended Sept. 30, 1992.
 Net sales for the nine-month period increased 10 percent to $504.3 million compared to $459.8 million for 1991. Operating profit for the nine months increased 15 percent to $127.3 million. Net loss for the 1992 nine months was $6.6 million compared to a $23 million net loss for the same period in 1991. The 1992 net loss includes a $6 million charge for costs associated with the company's withdrawal of its initial public offering. The 1991 net loss includes an $18.6 million debt restructuring charge associated with the refinancing that occurred in August, 1991.
 Third quarter 1992 net sales of $168.8 million increased 5 percent compared to $160.5 million in the third quarter of 1991. Operating profit for the 1992 third quarter was $43 million, a 12 percent increase over the same period in 1991.
 Operating cash flow for the nine month period increased 11 percent to $142.4 million compared to $127.8 million for 1991. Third quarter 1992 operating cash flow of $48.2 million increased 11 percent compared to $43.3 million in the third quarter of 1991.
 Dr Pepper Company reported net sales for the nine months ended Sept. 30, 1992, of $335.3 million, a 13 percent increase compared to $296.5 million for the same period in 1991. Operating profit for the nine months increased 17 percent to $94.6 million.
 The Seven-Up Company reported net sales for the nine months ended Sept. 30, 1992, of $169.0 million, a 4 percent increase compared to $163.3 million for the same period in 1991. Operating profit for the nine months increased 8 percent to $32.7 million.
 On Oct. 27, 1992, the company successfully consummated its previously announced recapitalization plan. The plan included the public offering of $656,509,000 aggregate principal amount of its 11-1/2 percent Senior Subordinated Discount Notes and the merger of its two operating subsidiaries, Dr Pepper Company and The Seven-Up Company, into one operating subsidiary which was renamed Dr Pepper/Seven-Up Corporation. In addition to this merger, the objectives of the recapitalization plan were to reduce interest expense, redeem preferred stock and reduce associated dividend requirements.
 As part of the recapitalization, the company has called its 15-1/2 percent Senior Subordinated Discount Notes Due 1998 for redemption on Nov. 27, 1992, at 100 percent of their principal amount, plus accrued interest. Dr Pepper/Seven-Up Corporation has also called the 13-3/4 percent Senior Subordinated Debentures Due Nov. 30, 2001, of the former Dr Pepper Company for redemption on Nov. 30, 1992, at 104.5 percent of their principal amount, plus accrued interest and the 12-5/8 percent Senior Subordinated Notes due May 15, 1997 of the former The Seven-Up Company for redemption on Nov. 27, 1992, at 103.46 percent of their principal amount, plus accrued interest. As part of the merger, all outstanding Senior Preferred Stock of The Seven-Up Company was canceled and converted into the right to receive $28.44 in cash per share.
 Dr Pepper/Seven-Up Corporation also purchased $130,976,000 aggregate principal amount (99.79 percent of the total outstanding) of its 11-1/2 percent Guaranteed Senior Secured Notes Due 1996 and 3,731,126 shares (74.62 percent of the total outstanding) of its $1.375 Senior Exchangeable Preferred Stock validly tendered pursuant to its tender offers therefore.
 Through its operating subsidiary, the company manufactures, sells and distributes soft drink extracts, concentrates and fountain syrups. DR PEPPER, formulated in 1885, is the oldest nationally distributed soft drink brand. 7UP has been a market leader in the lemon-lime category of the soft drink industry for more than 60 years. Together, the brands of Dr Pepper/Seven-Up Corporation represent more than 10 percent of all soft drinks sold in the United States.
 DR PEPPER/SEVEN-UP COMPANIES, INC. AND SUBSIDIARIES
 Consolidated Statements of Operations
 For the Quarters and Nine Months Ended Sept. 30, 1992 and 1991
 (In thousands, unaudited)
 Third Quarter Nine Months
 1992 1991 1992 1991
 Net sales $168,768 $160,453 $504,280 $459,794
 Cost of sales 33,613 32,045 98,821 90,119
 Gross profit 135,155 128,408 405,459 369,675
 Operating expenses:
 Marketing 81,280 79,819 246,775 227,875
 General and administrative 7,108 6,467 20,015 19,282
 Amortization of intangible
 assets 3,789 3,789 11,367 1,367
 Total operating expenses 92,177 90,075 278,157 258,524
 Operating profit 42,978 38,333 127,302 111,151
 Other income (expense):
 Interest expense (39,253) (36,696) (117,504) (109,041)
 Preferred stock dividends
 of subsidiaries (4,611) (2,674) (13,833) (7,718)
 Interest income 1,443 714 4,583 1,035
 Other, net (145) 15 (6,148) 547
 Total other inc. (expense) (42,566) (38,641) (132,902) (115,177)
 Income (loss) before
 income taxes and
 extraordinary items 412 (308) (5,600) (4,026)
 Income tax expense 2,755 1,668 5,949 3,907
 Loss before extraordinary
 items (2,343) (1,976) (11,549) (7,933)
 Extraordinary items:
 Benefit from utilization of
 net operating loss
 carryforwards (2,437) (1,568) (4,968) (3,546)
 Debt restructuring charge - 18,566 - 18,566
 Net income (loss) $ 94 $(18,974) $ (6,581) $(22,953)
 Operating cash flow:
 Operating income $ 42,978 $ 38,333 $127,302 $111,151
 Depreciation 728 964 2,209 2,886
 Amortization and other 4,451 4,007 12,928 13,807
 Operating cash flow $ 48,157 $ 43,304 $142,439 $127,844
 -0- 10/30/92
 /CONTACT: Jim Ball, 214-360-7812, or Tom Bayer, 214-360-7817, both of Dr Pepper/Seven-Up/ CO: Dr Pepper/Seven-Up Companies, Inc. ST: Texas IN: FOD SU: ERN


MA -- NY070 -- 7185 10/30/92 14:21 EST
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Date:Oct 30, 1992
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