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FOXMEYER REPORTS RECORD EARNINGS FOR YEAR, FOURTH QUARTER NET INCOME UP 42.4 PERCENT FOR FISCAL 1992

 FOXMEYER REPORTS RECORD EARNINGS FOR YEAR,
 FOURTH QUARTER NET INCOME UP 42.4 PERCENT FOR FISCAL 1992
 DALLAS, May 5 /PRNewswire/ -- FoxMeyer Corporation (NYSE: FOX) capitalized on a strong fourth quarter to achieve record net income for its fiscal 1992, reporting $37.8 million in net earnings, a 42.4 percent increase over the previous year, according to Robert L. King, president and chief executive officer. Sales climbed 6.9 percent to $3.1 billion for the year ended March 31, 1992. FoxMeyer is the third-largest drug distribution company in the United States.
 Net earnings per share were $1.40 for the year, compared with $1.26 per share the previous year. Year-to-year comparisons of net income per share are affected by the 29.1 percent increase in the average number of shares outstanding for the year, which resulted from FoxMeyer's initial public offering in August 1991. Average shares outstanding for the current fiscal year were 27.1 million, versus average shares outstanding of 21.0 million for the previous year.
 Net income for fiscal 1992 included a $10.5 million gain from utilization of a net operating loss carryforward; for the previous year, the company recorded a $10.7 million gain from utilization of a net operating loss carryforward and a $1.9 million charge for cumulative effect of change in accounting principle.
 For the current year, income after tax but before extraordinary item was $27.4 million, or $1.01 per share. This represents a 53.8 percent improvement over last year's $17.8 million income after tax but before extraordinary items, or $0.84 per share.
 Operating income increased 39.2 percent for the year to $50.7 million from $36.4 million last year.
 "We had an outstanding year, finishing with an excellent fourth quarter," King said. "We steadily improved our earnings, and, for the fifth year in a row, we reduced operating costs as a percent of sales -- 4.8 percent versus 6.0 percent last year."
 "In spite of the change in supplier status with Kmart, we still moved ahead with a 6.9 percent increase in total sales. Our non-Kmart sales almost tripled this growth rate, increasing 20 percent," he said.
 The company plans to complete this week its acquisition of Harris Wholesale Company, the nation's seventh-largest drug distribution company. Melvyn J. Estrin and Abbey J. Butler, FoxMeyer co-chairmen, said, "We expect this acquisition to add to the momentum of our sales growth. This purchase once again demonstrates FoxMeyer's commitment to play a major role as the drug distribution industry expands. In terms of earnings, we anticipate Harris will be non-dilutive this year, then contribute to earnings going forward."
 Results for the Fourth Quarter
 FoxMeyer also achieved record results in its fourth quarter ended March 31, 1992. The company reported a 39.3 percent increase in net income to $14.6 million, or $0.47 per share, on sales of $840.6 million. This compares with fiscal 1991 net income of $10.5 million, or $0.50 per share, on sales of $778.1 million.
 Quarterly comparisons of net income per share are affected by the 49.3 percent increase in the average number of shares outstanding for the fourth quarter, which was the result of FoxMeyer's initial public offering in August 1991. Average shares outstanding for the current fourth quarter were 31.35 million, versus average shares outstanding of 21.0 million for the same period the previous year.
 Net income for the fourth quarter included a $4.1 million gain, or $0.13 per share, from utilization of a net operating loss carryforward; in fiscal 1991's fourth quarter, the company reported a $4.4 million gain, or $0.21 per share, from utilization of a net operating loss carryforward.
 Operating income for the fourth quarter was $18.4 million, 44.4 percent higher than operating income for the same period last year. Earnings after tax but before extraordinary item increased 71.2 percent to $10.5 million for the fourth quarter this year.
 FoxMeyer distributes pharmaceuticals and health and beauty aids to 37 states in the Midwest, Mid-Atlantic, South and Southwest. Headquartered in Dallas, the company serves independent pharmacies, chain stores, hospitals and other health care facilities.
 FOXMEYER CORPORATION AND SUBSIDIARIES
 Condensed Statements of Consolidated Income
 (Unaudited, in thousands, except for per share data)
 Year ended March 31 1992 1991 Percent change
 Net sales $3,077,695 $2,879,179 6.9
 Cost of goods sold 2,879,350 2,670,747
 Gross profit 198,345 208,432
 Operating costs 147,629 172,006 (14.2)
 Operating income 50,716 36,426 39.2
 Net financing costs 4,065 6,550
 Income before income tax
 provision and
 extraordinary item 46,651 29,876
 Income tax provision 19,287 12,086
 Income before
 extraordinary item 27,364 17,790 53.8
 Extraordinary item --
 utilization of net
 operating loss
 carryforward 10,450 10,691
 Cumulative effect of
 change in accounting
 principle, net of tax -- (1,932)
 Net income $37,814 $26,549 42.4
 Per share of common stock(A)
 Income before
 extraordinary item $1.01 $0.84 20.2(A)
 Extraordinary item 0.39 0.51
 Cumulative effect of
 change in accounting
 principle -- (0.09)
 Net income per share $1.40 $1.26 11.1(A)
 Average number of
 shares outstanding 27,103 21,000 29.1
 (A) -- Net income per share comparisons are affected by increase in the number of shares outstanding, resulting from the August 1991 initial public offering.
 Quarter ended March 31 1992 1992 Percent change
 Net sales $ 840,614 $ 778,062 8.0
 Cost of goods sold 784,373 720,062
 Gross profit 56,241 58,000
 Operating costs 37,838 45,258 (16.4)
 Operating income 18,403 12,742 44.4
 Net financing costs 712 2,133
 Income before income
 tax provision and
 extraordinary item 17,691 10,609
 Income tax provision 7,194 4,479
 Income before
 extraordinary item 10,497 6,130 71.2
 Extraordinary item --
 utilization of net
 operating loss
 carryforward 4,141 4,380
 Net income $14,638 $10,510 39.3
 Per share of common stock (B)
 Income before
 extraordinary item $0.34 $0.29 17.2(B)
 Extraordinary item 0.13 0.21
 Net income per share $0.47 $0.50 (6.0)(B)
 Average number of
 shares outstanding 31,350 21,000 49.3
 (B) -- Net income per share comparisons are affected by increase in the number of shares outstanding, resulting from the August 1991 initial public offering.
 Summarized Balance Sheet Data
 (Audited, thousands of dollars)
 March 31 1992 1992
 Net working capital $277,810 $252,976
 Properties -- net 50,658 51,204
 Other assets 213,378 199,817
 Long-term debt 29,049 43,008
 Deferred gain and
 other liabilities 5,477 5,544
 Stockholders' equity 507,320 455,444
 -0- 5/5/92
 /CONTACT: J. Warren Henry of FoxMeyer Corporation, 214-446-4270/
 (FOX) CO: FoxMeyer Corporation ST: Texas IN: MTC SU: ERN


TS -- NY018 -- 6511 05/05/92 11:31 EDT
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Date:May 5, 1992
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