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GAYLORD REPORTS FIRST QUARTER FISCAL 1993 RESULTS

 DEERFIELD, Ill., Jan. 27 /PRNewswire/ -- Gaylord Container Corporation (AMEX: GCR) had net income of $186.5 million, or $4.76 per share, for the first quarter of fiscal 1993 ended Dec. 31, 1992, which included a $201.5 million extraordinary gain on the restructuring of subordinated debt. For the first quarter of fiscal 1992, the company had a net loss of $23.8 million, or $1.54 per share. Net sales in the first quarter fiscal 1993 totaled $177 million, up from $169 million for the first quarter of fiscal 1992. The company had an operating loss of $1.6 million, compared with operating earnings of $3.8 million in the year-ago first quarter.
 Commenting on the quarter, Chairman and Chief Executive Officer Marvin A. Pomerantz said, "Mill production and container shipments increased significantly versus the year-ago quarter which had a positive impact on operating earnings of approximately $7 million. This benefit, however, was offset by lower converted product and unbleached kraft paper prices that reduced operating earnings by approximately $5 million. Operating earnings were also reduced by $8.6 million of debt restructuring expenses." Pomerantz noted that the restructuring was consummated last November; therefore, the company does not anticipate incurring additional restructuring expenses in fiscal 1993.
 Other Factors Affecting Financial Results
 Net interest expense declined by $15.8 million to $12.0 million in the first quarter of fiscal 1993. The company noted that, for financial reporting purposes, it did not begin accruing interest on its new senior subordinated debt until its reorganization plan was consummated on Nov. 2, 1992, which resulted in unusually low interest expense for the quarter. Consummation of the plan also resulted in a $201.5 million extraordinary gain on the early retirement of debt, which was recorded in the first quarter of fiscal 1993.
 Operating Results
 During the first quarter of fiscal 1993, the company produced 286,700 tons of containerboard, a 7-percent increase from 267,600 tons a year ago. Unbleached kraft paper production increased 14 percent to 58,700 tons for the current fiscal quarter compared with 51,300 tons in the first quarter of fiscal 1992. Corrugated container shipments increased 17 percent to approximately 2.7 billion square feet, and multiwall bag shipments rose 7 percent to approximately 48.5 million bags in the first quarter of fiscal 1993. Grocery bag and sack shipments declined 15 percent to approximately 28,200 tons in the current quarter, compared with 33,200 tons in the year-ago quarter.
 Gaylord Container Corporation is a major national manufacturer and distributor of corrugated containers, containerboard, unbleached kraft paper, multiwall bags and grocery bags and sacks.
 GAYLORD CONTAINER CORPORATION
 SELECTED FINANCIAL AND OPERATIONAL DATA
 First Quarter Ended Dec. 31,
 Percent
 1992 1991 Inc/(Dec)
 (In millions of dollars, except per-share amounts)
 Financial Summary
 Net sales $176.8 $168.9 4.7
 Debt restructuring expenses 8.6 3.0 186.7
 Operating earnings (loss) (1.6) 3.8 N/M
 Interest expense-net 12.0 27.8 (56.8)
 Loss before extraordinary
 item and accounting change (13.7) (23.8) N/M
 Extraordinary gain 201.5 --- N/M
 Accounting change (A) (1.3) --- N/M
 Net income (loss) 186.5 (23.8) N/M
 Loss before extraordinary
 item and accounting change
 per share (0.35) (1.54) N/M
 Net income (loss) per share 4.76 (1.54) N/M
 Weighted average common and
 common equivalent shares
 outstanding (B) 39.2 15.5 152.9
 Operating Summary
 Mill production
 (thousands of tons)
 Containerboard 286.7 267.6 7.1
 Unbleached kraft paper 58.7 51.3 14.4
 Corrugated shipments
 (billions of square feet) 2.7 2.3 17.4
 Multiwall bag shipments
 (millions of bags) 48.5 45.3 7.1
 Grocery bag and sack shipments
 (thousands of tons) 28.2 33.2 (15.1)
 (A) In the first quarter of fiscal 1993, the company adopted Financial Accounting Standard No. 106, "Accounting for Post-Retirement Benefits Other Than Pensions."
 (B) The weighted average share amount for the first quarter of fiscal 1993 reflects the approximately 37.8 million shares of Class A Common Stock issued on Nov. 2, 1992, pursuant to the restructuring. Of such shares, 31.8 million are held by a trustee for issuance upon exercise of a like number of warrants.
 N/M -- Not meaningful
 -0- 1/27/93
 /CONTACT: Kathryn J. Chieger of Gaylord Container Corporation, 708-405-5645/
 (GCR)


CO: Gaylord Container Corporation ST: Illinois IN: PAP SU: ERN

DH-ML -- DE010 -- 9721 01/27/93 13:49 EST
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Publication:PR Newswire
Date:Jan 27, 1993
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