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FABRI-CENTERS ANNOUNCES FISCAL SECOND QUARTER AND FIRST-HALF FINANCIAL RESULTS

 FABRI-CENTERS ANNOUNCES FISCAL SECOND QUARTER
 AND FIRST-HALF FINANCIAL RESULTS
 CLEVELAND, Aug. 13 /PRNewswire/ -- Fabri-Centers of America, Inc. (NYSE: FCA) today announced a net loss of $8,265,000, or $.84 per share, for the second quarter which ended Aug. 1, 1992, compared to a net loss of $385,000 or $.04 per share, a year ago. The second quarter is historically the weakest period of the year for the company and a loss is normally incurred.
 Sales for the quarter were $117,168,000, or 29.3 percent above last year's net sales of $90,589,000. Comparable store sales were up 2.5 percent over the same period a year ago.
 A shortfall in sales volume, lower than expected gross profit margin as a result of intense price competition and a $2.0 million one-time restructuring charge all contributed to the loss in the second quarter. The restructuring charge primarily represents severance and related costs associated with a work force reduction, which was recently completed at the company's headquarters. An additional 150 superstores with inherently higher fixed cost in the weakest quarter of the year also contributed to the loss in the quarter.
 For the six-month period the company had a net loss of $6,347,000, or $.65 per share, compared to a net profit of $1,043,000, or $.12 per share, a year ago. Sales for the six-month period were $248,737,000, up 31.0 percent from the prior year, with comparable store sales up 5.6 percent for the six-month period. A year ago, first half net sales were $189,880,000.
 The competitive retailing environment, along with lower gross operating margins, is expected to continue. Lower profit margins are likely to cause third quarter earnings to be weaker than the prior year's.
 The July sales were the strongest for the quarter, up 37.7 percent to $38,355,000 from $27,846,000 in the prior year. Comparable store sales were up 6.9 percent in the four weeks that ended Aug. 1, 1992, compared with the same period last year.
 The superstore conversion program is progressing on schedule with 74 larger stores opened in the first half of this year. For the full year, approximately 175 superstores will be opened while closing 120 smaller units.
 The company operates 682 fabric stores in 38 states and 29 Cargo Express housewares stores in Ohio and Michigan.
 FABRI-CENTERS OF AMERICA, INC.
 Consolidated Balance Sheet
 (Dollars in thousands)
 Aug. 1, 1992 Feb. 1, 1992
 (unaudited) (audited)
 ASSETS
 Current assets
 Cash $ 9,822 $ 8,573
 Merchandise inventories 240,973 191,889
 Prepaid expenses and other current
 assets 9,093 8,446
 Deferred income taxes 5,892 1,779
 Assets held for sale 9,776 10,053
 Total current assets 275,556 220,740
 Property and equipment, at cost
 Land 1,056 1,056
 Buildings 19,245 15,498
 Furniture and fixtures 61,197 53,774
 Leasehold improvements 24,014 18,281
 Total 105,512 88,609
 Less accumulated depreciation and
 amortization 36,108 33,519
 Total 69,404 55,090
 Other assets 10,789 9,705
 Total assets $355,749 $285,535
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current liabilities
 Accounts payable $ 87,987 $ 81,393
 Accrued expenses 12,790 11,786
 Accrued income taxes 0 5,818
 Total current liabilities 100,777 98,997
 Long-term debt 39,100 40,100
 Convertible subordinated debentures 74,750 0
 Deferred income taxes 3,618 3,618
 Other long-term liabilities 190 297
 Shareholders' equity
 Common stock 969 962
 Additional paid-in capital 69,752 67,976
 Other capital (4,297) (3,606)
 Retained earnings 74,866 81,213
 Total 141,290 146,545
 Treasury stock, at cost (3,976) (4,022)
 Total shareholders' equity 137,314 142,523
 Total liabilities and shareholders'
 equity $355,749 $285,535
 FABRI-CENTERS OF AMERICA, INC.
 Condensed Consolidated Statements of Income (Unaudited)
 (Dollars in thousands except per share data)
 Thirteen Weeks Ended
 Aug. 1, 1992 Aug. 3, 1991
 Net sales $117,168 $ 90,589
 Costs and expenses
 Costs of goods sold 69,759 49,545
 Selling, general and
 administrative expenses 59,049 40,755
 Interest expense, net 1,583 905
 Total 130,391 91,205
 Loss Before Income Taxes (13,223) (616)
 Income taxes (4,958) (231)
 Net loss $ (8,265) $ (385)
 Loss per common share $ (0.84) $ (0.04)
 Average shares and equivalents
 outstanding 9,830,657 9,522,292
 Twenty-Six Weeks Ended
 Aug. 1, 1992 Aug. 3, 1991
 Net sales $248,737 $189,880
 Costs and expenses
 Costs of goods sold 143,176 104,910
 Selling, general and
 administrative expenses 113,064 81,149
 Interest expense, net 2,652 2,152
 Total 258,892 188,211
 Earnings/(loss) before income taxes (10,155) 1,669
 Income taxes (3,808) 626
 Net earnings/(loss) $ (6,347) $ 1,043
 Earnings/(loss) per common share $ (0.65) $ 0.12
 Average shares and equivalents
 outstanding 9,795,597 8,750,045
 -0- 8/13/92
 /CONTACT: Robert Norton or Alan Rosskamm, 216-656-2600, both of Fabri-Centers of America, Inc./
 (FCA) CO: Fabri-Centers of America, Inc. ST: Ohio IN: REA SU: ERN


KK -- CL009 -- 9739 08/13/92 14:57 EDT
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Date:Aug 13, 1992
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