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HECHINGER COMPANY ANNOUNCES FIRST QUARTER RESULTS

 LANDOVER, Md., May 25 /PRNewswire/ -- Hechinger Company (NASDAQ-NMS: HECHA and HECHB) today announced that net earnings for the first quarter ended May 1, 1993, were $3.2 million, 8 cents per share, compared to a net loss of $51.0 million, $1.22 per share last year. Earnings for the first quarter of 1992 reflect an after-tax Strategic Reserve of $57.3 million, $1.37 per share, which was recorded during the quarter to cover estimated costs associated with the repositioning of the Hechinger Stores division to the Home Project Center format.
 Sales for the first quarter were $479.1 million, compared to $439.9 million, an increase of 9 percent. Comparable store sales were down 3 percent for the first quarter.
 John Hechinger Jr., president and chief executive officer of the company, said: "The poor weather conditions during February and March adversely affected sales in substantially all the company's markets. Since late April, the sales trends in both the Hechinger Stores division and the Home Quarters Warehouse division have improved."
 During the quarter, the Hechinger Stores division celebrated the grand openings of newly converted Home Project Centers in Burke, Va.; Deptford, N.J.; and at Security Mall in Baltimore. In addition, in May the Hechinger Stores division celebrated the grand openings of a new Home Project Center at Fair Lakes Center in Fairfax, Va., and a newly converted Home Project Center at Montgomery Mall in Bethesda, Md.
 During the quarter, the Home Quarters Warehouse division opened its second store in Richmond, Va., and its seventh store in New England in Bangor, Maine. In addition, the Home Quarters Warehouse division broke ground for stores in the Detroit market in Roseville, Livonia and Madison Heights, Mich., and for a new store in North Little Rock, Ark. A fourth site in Detroit in Southgate, Mich., and a second site in Little Rock, Ark., have also been secured. A third Home Quarters Warehouse store is under construction in the Louisville, Ky., market in Clarkesville, Ind., and a fifth store in the St. Louis market is under construction in Manchester, Mo. The company plans to open a total of 10 Home Quarters Warehouse stores during fiscal 1993.
 At the end of the quarter, the company was operating a total of 122 home center stores: 50 traditional Hechinger stores, 21 Hechinger Home Project Centers, 45 Home Quarters Warehouse stores and six Triangle Building Centers.
 Hechinger Company is a leading specialty retailer currently operating home centers in 18 states and the District of Columbia. The company serves the growing home improvement industry through its two divisions: Hechinger Stores and Home Quarters Warehouse.
 HECHINGER COMPANY
 Consolidated Statements of Earnings
 (in thousands except per share data)
 13 Weeks Ended
 May 1, 1993 May 2, 1992
 Revenues
 Net sales $479,144 $439,876
 Other (principally interest) 2,413 3,091
 Total Revenues 481,557 442,967
 Costs and Expenses
 Cost of sales 371,289 335,675
 Selling, general and
 administrative expenses 99,066 94,254
 Interest expense 6,524 4,010
 Unusual charges 0 83,000
 Total Costs and Expenses 476,879 516,939
 Earnings (Loss) Before Income
 Taxes 4,678 (73,972)
 Income Taxes Expense (Benefit) 1,450 (22,931)
 Net Earnings (Loss) $ 3,228 $(51,041)
 Primary and Fully Diluted
 Earnings (Loss) per
 Common Share $ 0.08 $ (1.22)
 Average Number of Common and
 Common Equivalent Shares
 Outstanding 41,858 41,690
 -0- 5/25/93
 /CONTACT: Richard S. Gross, corporate controller, Hechinger, 301-341-0450/
 (HECH)


CO: Hechinger Company ST: Maryland IN: REA SU: ERN

MH-TW -- DC006 -- 2072 05/25/93 10:06 EDT
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Publication:PR Newswire
Date:May 25, 1993
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