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HOOK-SUPERX, INC. ANNOUNCES THIRD QUARTER RESULTS

 HOOK-SUPERX, INC. ANNOUNCES THIRD QUARTER RESULTS
 CINCINNATI, June 25 /PRNewswire/ -- Hook-SuperRx, Inc. ("HSI" or the "Company") (NYSE: HSX) announced today that its net income for the third quarter which ended May 31, 1992 was $5.1 million as compared with $1.7 million for the same period of the prior year, an increase of 200 percent.
 Sales increased 7.6 percent for the quarter ended May 31, 1992 from $501.3 million for the same three months of the prior year to $539.2 million, with same store sales increasing by 5.3 percent. Gross profit increased by 9.1 percent from $149.6 million to $163.1 million. The gross margin improved from 29.8 percent to 30.2 percent. Operating income increased by 16.5 percent from $15.8 million to $18.4 million. The operating margin improved from 3.1 percent to 3.4 percent.
 For the nine months ended May 31, 1992, net income increased from $3.0 million for the same nine months period of the prior year to $13.2 million, an increase of 340 percent. Sales increased by 7.7 percent to $1,597.4 million with same store sales increasing by 5.9 percent, gross profit increased by 8.2 percent to $487.3 million and operating income increased by 14.8 percent to $52.4 million.
 Philip E. Beekman, Chairman and Chief Executive Officer of HSI, commented that, "Our operating results are in line with our expectations. We are pleased with our results for the first three quarters of fiscal 1992 particularly in light of the difficult economic environment as well as the significant constraints which we have had to live with prior to completion of our recapitalization plan. We are very excited about the increased business flexibility that the recently completed recapitalization plan provides us."
 On June 10, 1992, HSI completed an initial public offering of 7.9 million shares of common stock and sold $145 million in Senior Notes. The Company also entered into a revised bank credit agreement. Proceeds of the common stock offering and senior notes offering will be used to reduce currently outstanding debt. Beekman stated that, "Our lower debt level and reduced cost of borrowing mean that more money will be available to invest in the growth of HSI."
 On June 10, 1992, HSI issued a redemption notice on its currently outstanding subordinated debentures. The debentures will be redeemed on July 10, 1992 at a price of 106.5 percent of par value plus accrued interest through the redemption date. This redemption combined with other costs associated with the previously announced recapitalization plan will result in an extraordinary charge to the fourth quarter earnings.
 At May 31, 1992, the Company operated 1,128 drug stores and 32 home health care centers as compared to 1,098 drug stores and 31 home health care centers at May 31, 1991.
 Digest of Earnings
 (dollars in thousands
 except per share amounts)
 (unaudited)
 Three Months Ended May 31,
 1992 Pct. 1991 Pct.
 Sales $ 539,197 --- $ 501,311 ---
 Gross Profit 163,130 30.2 149,536 29.8
 Selling, general
 and administrative
 expense (a) 144,691 26.8 133,703 26.7
 Operating income 18,439 3.4 15,833 3.1
 Interest 11,931 2.2 13,330 2.7
 Income before
 income tax and
 extraordinary item 6,508 1.2 2,503 .4
 Income taxes 1,706 .3 843 .1
 Income before
 extraordinary item 4,802 .9 1,660 .3
 Extraordinary item (b) 280 --- --- ---
 Net income $ 5,082 .9 1,660 .3
 Average shares (c) 13,773,684 12,929,572
 Earnings per share
 Income before extra-
 ordinary item (d) $.18 $.11
 Extraordinary item .02 ---
 Net income (d) $.20 $.11
 Pro Forma Earnings per share (to reflect the elimination of the change in redemption value of redeemable common stock and options held by management investors -- see Note c)
 Income before extra-
 ordinary item $.35 $.13
 Extraordinary item .02 ---
 Net Income $.37 $.13
 Digest of Earnings
 (dollars in thousands,
 except per share amounts)
 (unaudited)
 Nine Months Ended May 31,
 1992 Pct. 1991 Pct.
 Sales $ 1,597,396 --- $ 1,483,543 ---
 Gross profit 487,307 30.5 450,584 30.4
 Selling, general
 and administrative
 expense (a) 434,938 27.2 404,963 27.3
 Operating Income 52,369 3.3 45,621 3.1
 Interest 36,733 2.3 40,765 2.8
 Income before
 income tax and
 extraordinary item 15,636 1.0 4,856 .3
 Income taxes 4,521 .3 1,852 .1
 Income before
 extraordinary item 11,115 .7 3,004 .2
 Extraordinary item (b) 2,100 .1 --- ---
 Net income $ 13,215 .8 $ 3,004 .2
 Average shares (c) 13,751,435 12,923,013
 Earnings per share
 Income before
 extraordinary
 items (d) $.58 $.25
 Extraordinary item .15 --
 Net income (d) $.73 $.25
 Pro Forma Earnings per share (to reflect the elimination of the
 change in redemption value of
 redeemable common stock and options
 held by management investors --
 see Note C)
 Income before extra-
 ordinary item $.81 $.23
 Extraordinary item .15 --
 Net income $.96 $.23
 (a) Includes rent expense of $15,236, $14,415, $44,102 and $41,569 for the respective periods and depreciation and amortization of $7,302, $8,787, $23,825 and $26,966 for the respective periods.
 (b) Tax benefit from utilization of tax loss carryforward.
 (c) Reflects a 1-for-3 reverse stock split which was effective May 19, 1992.
 (d) Includes the (increase) decrease in redemption value of redeemable commonstock and options held by management investors of ($2,274) and ($146) for the three months ended May 31, 1992 and 1991, respectively, and ($3,143) and $260 for the nine months ended May 31, 1992 and 1991, respectively, due to provisions in the company's stockholders agreement which allows management investors the right, under certain circumstances, to put these shares back to the company at formula prices. Upon consummation of the initial public offering on June 10, 1992, the stockholders agreement, which provides for the management investor put rights, terminated pursuant to its terms. If these put rights were not in effect net income per share would have been $.37 and $.13 for the three months ended May 31, 1992 and 1991, respectively, and $.96 and $.23 for the nine months ended May 31, 1992 and 1991, respectively.
 -0- 6/25/92
 /CONTACT: Chris Beseler of Hook-SupeRx, Inc., 317-353-1458, ext. 3501 (Indianapolis); 513-782-3115 (Cincinnati)/ CO: Hook-SupeRx, Inc. ST: Ohio IN: REA SU: ERN


LC -- CL008 -- 3656 06/25/92 09:50 EDT
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