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DWG REPORTS FOURTH QUARTER AND YEAR RESULTS (INCLUDES SIGNIFICANT AFTER TAX CHARGES ASSOCIATED WITH CHANGE IN CONTROL)

 NEW YORK, Aug. 13 /PRNewswire/ -- DWG Corporation (AMEX: DWG) today announced results of operations for the fourth quarter and year ended April 30, 1993.
 During the fourth quarter, the company recorded significant after tax charges associated with the reorganization and change in control, which was completed on April 23, 1993, aggregating $67.1 million. These charges included (i) $6.4 million representing the cumulative effect of changes in accounting principles recorded retroactively to the first quarter; (ii) $6.6 million of extraordinary charges associated with refinanced debt; (iii) $5.4 million of writedowns associated with the discontinuance of the company's utility and municipal services segment and other discontinued operations; and (iv) $48.7 million principally relating to the reorganization and change in control of the company which was completed on April 23, 1993. The charges associated with the change in control include: provision for the severance of employees; costs to relocate and restructure the headquarters of the company and three of its core businesses; write-off of uncollectible notes and other amounts due from former affiliated businesses; fees and expenses associated with the settlement of shareholder and other litigation; closing certain non-strategic restaurants and abandoned bottling facilities; and increases to the company's reserves for on-going Internal Revenue Service examinations. Including these significant after tax charges, the company reported a fourth quarter loss of $50.3 million ($1.97 per share) compared with after tax income of $1.6 million ($.06 per share) in the year earlier period. For the year, the company reported a loss of $60 million ($2.33 per share) compared with a prior year loss of $7.5 million ($.29 per share). Of the $67.1 million significant after tax charges recorded in the fourth quarter of 1993, approximately $55.0 million represents cash requirements of which $12.0 million has been paid to date, $12.0 million will be paid during the remainder of this year and $31.0 million will be paid thereafter.
 Revenues from continuing operations for the fourth quarter of fiscal 1993 were $258.3 million or 9.3 percent below last year's $284.8 million. Revenues for the year ended April 30, 1993 were $1.058 billion, 1.5 percent below last year's $1.074 billion. Revenues for the year from our four core businesses (textiles, fast food, soft drink and liquified petroleum gas) were 7.2 percent above prior year levels with all four segments reporting revenue growth. This was more than offset by the loss of revenues associated with non-core businesses sold in the prior year.
 Operating profits from continuing operations for the 1993 fiscal year were $34.4 million compared with operating profit of $58.5 million for the year ago period. The 1993 results include $56.9 million of significant charges (which include $51.7 million of pretax charges associated with the aforementioned reorganization and change of control) and represent a 16.3 percent increase over prior year as adjusted for similar significant items. Exceptional growth in operating earnings was reported by our textile business. Of the remaining core units, operating earnings of the fast food and liquified petroleum gas businesses grew at rates above 10 percent while operating earnings the soft drink business were slightly ahead of last year.
 Commenting on the company's results, Nelson Peltz, chairman and chief executive officer said: "We have completed our initial in-depth review of each of our core businesses and have taken the necessary restructuring charges. New senior operating management are in place and each are working to streamline their organizations while strengthening their staffs for the challenges and opportunities which lie ahead. With the new financings now in place, we have available liquidity to invest in our businesses. Our objective is to grow the company for the long term and to improve shareholder value."
 The company further acknowledged the completion, on Aug. 12, of the previously announced $275 million 9 3/4 percent Senior Secured Note financing for its subsidiary, Royal Crown Corporation, whose principal businesses are Royal Crown Cola and Arby's. Previously, a $180 million senior secured financing was completed for Graniteville.
 The company also announced that its 1993 Annual Meeting of Stockholders has been scheduled to be held on Oct. 27, 1993 and that Sept. 15, 1993 has been fixed as the record date for such meeting.
 DWG Corporation is a holding company which, through its direct and indirect operating subsidiaries, is engaged in four primary businesses: fast food (Arby's), soft drinks (Royal Crown Cola), textiles (Graniteville) and liquified petroleum gas (National Propane).
 DWG CORPORATION AND SUBSIDIARIES
 Condensed Consolidated Statement of Operations
 (in thousands except per share amounts)
 Fourth Quarter Year Ended
 Ended April 30, April 30,
 1993 1992 1993 1992
 Revenues $ 258,296 $ 284,783 $ 1,058,274 $ 1,074,703
 Operating
 Profit (Loss) $(22,686)(A) 20,876 34,459(A) 58,552(B)
 Income (Loss)
 From Continuing
 Operations (38,310) 2,589 (44,549) (10,207)
 Income (Loss)
 From
 Discontinued
 Operations (5,345)(C) (941) (2,430)(C) 2,705
 Cumulative Effect
 of Changes in
 Accounting
 Principles --- --- (6,388)(D) ---
 Extraordinary
 Item (6,611)(E) --- (6,611)(E) ---
 Net Income
 (Loss) $(50,266) $ 1,648 $ (59,978) $ (7,502)
 Income (Loss)
 Per Share:
 Continuing
 Operations $(1.50) $.10 $ (1.73) $(.39)
 Discontinued
 Operations (.21) (.04) (.09) .10
 Cumulative Effect
 of Changes in
 Accounting
 Principles --- --- (.25) ---
 Extraordinary
 Item (.26) --- (.26) ---
 Net Income
 (Loss) $(1.97) $.06 $ (2.33) $(.29)
 (A) -- During the fourth quarter the company recorded $51.7 million of significant pretax charges affecting operating profit associated with the reorganization and change of control which was completed on April 23, 1993. These charges include (i) provisions for the severance of employees, (ii) costs to relocate and restructure the headquarters of the company and three of its core businesses, (iii) write-off of uncollectible notes and other amounts due from former affiliated businesses, and (iv) provisions for the costs of closing certain non- strategic restaurants and abandoned bottling facilities.
 (B) -- Includes $20.0 million of significant pretax charges including facilities relocation and provision for doubtful accounts from former affiliates, net of incentive plan accrual reversals provided in prior years.
 (C) -- Reflects the operating losses, including writedowns in the fourth quarter, associated with the company's utility and municipal services segment and other discontinued operations.
 (D) -- Represents the retroactive restatement to the first quarter of 1993 for changes in accounting principles relating to income taxes and post-retirement benefits.
 (E) -- Represents the writeoff of unamortized deferred financing costs and payment of prepayment penalties associated with the early extinguishment of debt, net of related tax benefits.
 -0- 8/13/92
 /CONTACT: Leon Kalvaria, vice chairman of DWG Corporation, 212-230-3000/
 (DWG)


CO: DWG Corporation ST: Florida, New York IN: SU: ERN

AW-SS -- FL008 -- 2698 08/13/93 16:45 EDT
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Date:Aug 13, 1993
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