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HORN & HARDART ANNOUNCES SECOND QUARTER RESULTS HANOVER DIRECT RETURNS TO PROFITABILITY

 HORN & HARDART ANNOUNCES SECOND QUARTER RESULTS HANOVER
 DIRECT RETURNS TO PROFITABILITY
 WEEHAWKEN, N.J., Aug. 6 /PRNewswire / -- The Horn & Hardart Company today reported a net loss for the second quarter ended June 27, 1992 of $390,000, or 1 cent a share, compared to a loss of $9.5 million, or 69 cents a share, in the 1991 period. The current quarter's loss included $700,000 of accrued dividends on Hanover 8 percent preferred stock and a $1.2 million extraordinary gain on the repurchase of debt. Revenues for the quarter were $143.1 million, down 4 percent from $149.1 million in the second quarter of 1991, due to a 22 percent planned reduction in catalog circulation that was substantially offset by higher response rates and average order size.
 Hanover Direct, the company's direct marketing subsidiary, reported a profit in the quarter of $437,000 compared to a loss of $3.8 million a year ago. Operating income increased to $3.2 million from a loss of $3.4 million a year ago. The improved performance was the result of the Oct. 1991 equity infusion and the availability of working capital under a new credit agreement which improved the company's short-term liquidity. These factors enabled the company to reduce outstanding indebtedness, eliminate many of the vendor-imposed trade credit restrictions and obtain sufficient levels of merchandise on a timely basis. This has resulted in a significant reduction in backorder levels and improved operating efficiencies as compared to the prior year.
 "The significant organizational and operational changes made in the fall of 1991 as well as the improved relationships with our vendors continue to positively impact the company's operations," said Jack E. Rosenfeld, president and CEO.
 In the six months ended June 27, 1992 the company's net loss was $2.9 million, or 10 cents per share, compared to $11.9 million in the prior year. The net loss in 1992 was after extraordinary gains of $1.2 million of 4 cents per share and accrued preferred dividends of $1.4 million. Operating income was $5.3 million in 1992 compared to a loss of $4.8 million in 1991. Revenue in 1992 was $273.1 million compared to $287.4 million in 1991.
 As previously reported, the company has commenced a rights offering to shareholders of record on July 28, 1992 as well as exchange offers to the holders of the company's 14 percent Senior Subordinated Debentures due Aug. 1, 1997 and the company's 7-1/2 percent Convertible Subordinated Debentures due March 1, 2007. The company's annual meeting of shareholders to approve the transactions will be held on Wednesday, Sept. 23, 1992 in Weehawken, N.J.
 The company, through Hanover Direct, is one of the largest specialty direct marketers in the U.S. It publishes catalogs in men's and women's fashion, general merchandise and home furnishings.
 THE HORN & HARDART COMPANY


(in thousands except per share data and number of shares, unaudited)
 13 Weeks Ended 26 Weeks Ended
 6/27/92 6/29/91 6/27/92 6/29/91
 Revenues $143,124 $149,074 $273,061 $287,370
 (Loss) before
 extraord. gain (899) (9,549) (2,722) (11,856)
 Extraordinary gain 1,209 -- 1,209 --
 Net income (loss) 310 (9,549) (1,513) (11,856)
 Dividend on preferred
 consolidated
 subsidiary 700 -- 1,400 --
 Net (loss) applicable
 to common
 shareholders ($390) ($9,549) ($2,913) ($11,856)
 Net (loss) per share
 applicable to common
 shareholders:
 (Loss) before
 extraord. gain ($.05) ($.69) ($.14) ($.85)
 Extraordinary gain 0.04 -- 0.04 --
 Net (loss) (0.01) (0.69) (0.10) (0.85)
 Weighted avg.
 no. of common
 shares 28,537,471 13,910,177 28,537,471 13,910,177
 -0- 8/6/92
 /CONTACT: Michael P. Sherman executive vice president, 201-319-3403, or Wayne P. Garten executive vice president, 201-319-3452, of Horn & Hardart Company, or Gregory W. Miller, 212-484-7404, of Robinson, Lake, Lerer & Montgomery/
 (HOR) CO: Horn & Hardart Company ST: New Jersey IN: REA SU: ERN


LD-KW -- NY095 -- 7784 08/06/92 17:30 EDT
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Date:Aug 6, 1992
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