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G&K SERVICES SAYS OPERATING INCOME ROSE 30 PERCENT ON AN 11 PERCENT REVENUE GAIN IN FISCAL 1992; OUTLOOK FOR FISCAL 1993 IS GOOD

G&K SERVICES SAYS OPERATING INCOME ROSE 30 PERCENT ON AN 11 PERCENT
 REVENUE GAIN IN FISCAL 1992; OUTLOOK FOR FISCAL 1993 IS GOOD
 MINNEAPOLIS, Aug. 25 /PRNewswire/ -- G&K Services, Inc. (NASDAQ: GKSRA) today reported higher revenues and earnings for the fiscal year ended June 27, 1992. The uniform leasing company said that sharply higher operating income from its U.S. business more than offset weak results from the Canadian division, which continued to be hurt by a recessionary economy. The company also said that it expects continued good results from its U.S. business in fiscal 1993, and a gradual improvement in Canada as its economy recovers.
 Total revenues for fiscal 1992 were $194,716,000, a gain of 11 percent over 1991's $176,233,000. Net earnings rose 10 percent to $8,582,000, or 64 cents per share, from the $7,771,000, or 58 cents per share, earned a year ago. Income from operations rose 30 percent to $21,540,000 for 1992 from $16,632,000 in 1991.
 The net income figure for 1991 included non-operating gains recorded in the fourth quarter from an insurance settlement and the cumulative effect of the Company's adoption of FASB 96 accounting for income tax purposes. Excluding the effects of these adjustments which added about 20 cents per share to fiscal 1991 results, net income in 1992 increased 68 percent over the prior year.
 For the fourth quarter of fiscal 1992, revenues were $48,906,000, marginally higher than the $48,411,000 recorded a year earlier. Net earnings were $2,163,000, or 16 cents per share, an increase of 35 percent from last year's results, after adjustments, of $1,606,000, or 12 cents per share.
 Chairman and CEO Richard Fink said, "G&K's U.S. operations had an exceptionally strong year and fourth quarter. Earnings benefited from improvements in virtually every area of operations including tighter control of textile inventories, more effective management of workers' compensation and other administrative costs, and continued progress at newer locations. Earnings also benefited from reduced interest expense due to lower rates and borrowing levels. Long-term debt (including current maturities) dropped to $78.4 million at June 27, 1992 from $88.5 million a year ago.
 "U.S. revenues rose 8.4 percent reflecting healthy demand for our products despite the lingering impact of recession. We also set records in both new accounts written and customer retention rates. The fourth quarter was an all-time record in terms of new accounts added, providing a strong start for fiscal 1993.
 "The gains we made in the U.S. were partially offset by disappointing results from our Canadian operations," Fink continued. "We have successfully completed our program to upgrade facilities and to install G&K systems in quality control, customer service and marketing. But the continuing deep recession and the costs of our integration program prevented us from converting operating improvements into earnings gains. Volume in fiscal 1992 increased by 16 percent from a year ago because we had a full year's revenue contributions from Canada versus nine months in 1991. But revenues declined on a quarter-to- quarter basis, with the fourth quarter down by 14 percent from the prior year. On a more positive note, the downward trend in revenues slowed in the fourth quarter, and now appears to have stabilized."
 Speaking about fiscal 1993, Fink said, "we expect continued good results from U.S. operations. All of our established locations continue to strengthen their performance, while our three most recent additions are moving closer toward breakeven. In Canada, our short term outlook will depend on the pace of economic recovery. If a meaningful pickup in demand materializes, the operating improvements that have been installed will begin to produce profit gains."
 G&K Services is one of North America's largest suppliers of uniforms and related textile products. In the United States, the company operates in 23 states, serving customers from 21 processing plants and 26 sales and service centers. In Canada, G&K serves customers from 22 locations, including 9 processing plants in the provinces of Ontario and Quebec.
 For more information on G&K Services, Inc. by FAX Dial 1-800-PRO- INFO, ext. 078.
 -0- 8/25/92
 /CONTACT: Richard Fink, chairman of G&K Services, 612-546-7440; or


Nick Farina, 312-266-7800, or Karen Griffiths, 212-661-8030, both of the Financial Relations Board, for G&K Services/
 (GKSRA) CO: G&K Services ST: Minnesota IN: TEX SU: ERN


AL -- MN009 -- 2952 08/25/92 10:40 EDT
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Date:Aug 25, 1992
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