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KASH N' KARRY THIRD QUARTER BRINGS FIRST PROFIT; RECORD CASH FLOW

 KASH N' KARRY THIRD QUARTER BRINGS FIRST PROFIT; RECORD CASH FLOW
 TAMPA, Fla., June 2 /PRNewswire/ -- Kash n' Karry Food Stores, Inc. reported Tuesday pre-tax net income for its third quarter ended May 3 of $2.8 million, on gross sales of $275.9 million, compared to a net loss of $2.8 million on sales of $276.4 million in the third quarter of 1991.
 Ron Floto, the chief executive officer of the Tampa-based supermarket chain, said in addition to posting its first quarterly profit since its leveraged buy out (LBO), Kash n' Karry generated record operating cash flow in the 13-week period -- $18.8 million, compared to $18.1 million in the comparable 1991 period. Operating cash flow is earnings before interest, taxes, depreciation and amortization.
 The strong profit and cash flow performance occurred despite a 0.2 percent drop in merchandise sales, comparing third quarter 1992 to third quarter 1991. Kash n' Karry operated two fewer stores in a food retailing market marked by a weak economy, price deflation in meat and produce, and 15 more stores operated by competitors, Floto said.
 By posting a profit in the third quarter, Kash n' Karry surpassed its financial performance timetable established during its LBO, Floto said. That timetable calls for the company to become profitable on an annual basis in fiscal 1994, and Floto said he expects the company to meet that goal. On an operating profit basis, Kash n' Karry has been consistently profitable since the LBO.
 For the 40-week period ended May 3, the company reported a net loss of $3.8 million on sales of $823.3 million, compared to a net loss of $14.2 million on sales of $797.6 million in the comparable 39-week period a year ago.
 A substantial cut in total bank debt was accomplished through a second quarter refinancing. Kash n' Karry now is scheduled to pay $1.7 million in bank principal payments in 1993, instead of $20.5 million. The second-quarter restructuring, which retired much of the company's bank debt, included the sale of $30 million in common stock and $50 million in senior notes.
 That move allowed Kash n' Karry to allocate an additional $12 million towards store construction and remodeling in 1992 and accelerate its store expansion program.
 -0- 6/2/92
 /CONTACT: Raymond P. Springer of Kash n' Karry, 813-621-0274/ CO: Kash n' Karry ST: Florida IN: REA SU: ERN


AW-JB -- FL006 -- 6239 06/02/92 13:00 EDT
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Publication:PR Newswire
Date:Jun 2, 1992
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