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KERR REPORTS THIRD QUARTER 1993 RESULTS

 LOS ANGELES, Nov. 2 /PRNewswire/ -- Kerr Group Inc. (NYSE: KGM), today reported net earnings from continuing operations applicable to common stockholders (after deduction for preferred stock dividends) of $345,000, or 9 cents per common share (primary and fully diluted), for the third quarter of 1993, compared to net earnings from continuing operations applicable to common stockholders (after deduction for preferred stock dividends) of $1,253,000, or 34 cents per common share (primary and fully diluted), for the third quarter of 1992.
 Net sales and earnings of the Plastic Products Business, the larger of the company's two businesses, increased in the third quarter of 1993 compared to the third quarter of 1992. Earnings of the Consumer Products Business decreased significantly in the third quarter of 1993 compared to the third quarter of 1992 due to lower sales as a result of adverse weather conditions in many areas of the country where the company markets home canning supplies.
 Net sales from continuing operations were $34,448,000 in the three months ended Sept. 30, 1993, compared to $36,813,000 in the year-ago period.
 Earnings from continuing operations applicable to common stockholders (after deduction for preferred stock dividends) for the nine months ended Sept. 30, 1993, were $1,034,000, or 28 cents per common share (primary and fully diluted), compared to earnings from continuing operations applicable to common stockholders (after deduction for preferred stock dividends) of $2,043,000, or 56 cents per common share (primary and fully diluted), for the nine months ended Sept. 30, 1992.
 Net sales and earnings of the Plastic Products Business increased in the nine months ended Sept. 30, 1993, compared to the year-ago period. Earnings for the Consumer Products Business decreased significantly in the nine months ended Sept. 30, 1993, compared to the year-ago period due to lower sales as a result of adverse weather conditions.
 Net sales from continuing operations for the nine months ended Sept. 30, 1993, were $99,235,000 compared to $100,370,000 in the year- ago period.
 As previously announced on Sept. 21, 1993, the company sold $50,000,000 principal amount of unsecured Senior Notes. A portion of the proceeds will be used to redeem all of the $40,000,000 principal amount of 13 Percent Subordinated Notes on Dec. 15, 1993. The company expects that the refinancing will result in annual pre-tax savings from lower net interest expense and lower bank and other financing fees of approximately $1,200,000 ($734,000 after-tax, or 20 cents per common share, primary and fully diluted). During the third quarter of 1993, the company incurred an after-tax loss of $1,300,000, or 35 cents per common share (primary and fully diluted), in connection with the refinancing of its 13 Percent Subordinated Notes and the termination of its revolving credit facility.
 Kerr, headquartered in Los Angeles, is a major producer of plastic packaging products and home canning supplies.
 KERR GROUP INC.
 Consolidated Statements of Earnings (Loss) for the
 Three Months and Nine Months Ended Sept. 30, 1993 and 1992
 (In Thousands)
 Three Months Ended Nine Months Ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 (Unaudited) (Unaudited)
 Net sales $34,448 $36,813 $99,235 $100,370
 Cost of sales 24,616 25,699 69,674 70,702
 Gross profit 9,832 11,114 29,561 29,668
 Selling, warehouse,
 general and
 administrative expense 7,594 7,453 22,915 21,743
 Interest expense 1,457 1,482 4,473 4,292
 Interest and other income (199) (339) (671) (944)
 Earnings from continuing
 operations before
 income taxes 980 2,518 2,844 4,577
 Provision for income taxes 428 1,058 1,189 1,913
 Earnings from continuing
 operations 552 1,460 1,655 2,664
 Net loss from discontinued
 operations(a) --- (566) --- (1,955)
 Extraordinary loss on
 retirement of debt(b) (1,300) --- (1,300) ---
 Net earnings (loss) ($748) $894 $355 $709
 Preferred stock dividends 207 207 621 621
 Net earnings (loss)
 applicable to
 common stockholders ($955) $687 ($266) $88
 Earnings (loss) per
 common share, primary
 and fully diluted:(c)
 Earnings per common
 share from continuing
 operations(d) $0.09 $0.34 $0.28 $0.56
 Loss per common share
 from discontinued
 operations(a) 0.00 (0.15) 0.00 (0.54)
 Extraordinary loss per
 common share on
 retirement of debt(b) (0.35) 0.00 (0.35) 0.00
 Net earnings (loss)
 per common share ($0.26) $0.19 ($0.07) $0.02
 (a) The company sold its Metal Crown Business on Dec. 11, 1992, and its Commercial Glass Container Business on Feb. 28, 1992, and, accordingly, has reflected the results of these discontinued businesses for the three months and nine months ended Sept. 30, 1992, separately from continuing operations in the above table. The net loss from discontinued operations of $566,000, or 15 cents per common share, and $1,955,000, or 54 cents per common share, for the three months and nine months ended Sept. 30, 1992, respectively, is attributable to the Metal Crown Business. The presentation of these businesses in the 1992 period as discontinued operations had no effect on net earnings (loss), net earnings (loss) applicable to common stockholders and net earnings (loss) per common share from the amounts previously reported in the 1992 period.
 (b) On Sept. 21, 1993, the company sold $50 million principal amount of Senior Notes to a group of insurance companies consisting of John Hancock Mutual Life Insurance Company, New York Life Insurance Company and Massachusetts Mutual Life Insurance Company. The Senior Notes consist of $41,000,000 of 10-year notes with an interest rate of 9.45 percent and $9,000,000 of 6-year notes with an interest rate of 8.99 percent. Sinking fund payments begin under the 10-year notes in 1998 and under the 6-year notes in 1997. The Senior Notes are unsecured.
 A portion of the proceeds from that sale have been deposited with a trustee to provide for the redemption of all of the $40,000,000 principal amount of 13 Percent Subordinated Notes on Dec. 15, 1993, when they become redeemable at par. The remaining proceeds will be used for working capital.
 During the third quarter of 1993, the company incurred an after-tax loss of $1,300,000, or 35 cents per common share (primary and fully diluted), in connection with the refinancing of its 13 Percent Subordinated Notes and the termination of its revolving credit facility. The extraordinary loss included interest expense on the 13 Percent Subordinated Notes from Sept. 21, 1993, through Dec. 15, 1993, and the write-off of unamortized debt fees and related costs.
 Pursuant to FASB No. 76, Extinguishment of Debt, the company has reflected the in-substance defeasance of the 13 Percent Subordinated Notes in its Sept. 30, 1993, Condensed Consolidated Balance Sheet. Accordingly, the principal amount and related accrued interest payable on the 13 Percent Subordinated Notes have been offset against the funds deposited with the trustee to provide for the ultimate redemption of the 13 Percent Subordinated Notes.
 (c) Weighted average number of common shares outstanding for the three months and nine months ended Sept. 30, 1993, were 3,667,000 and 3,670,000, respectively, and for the three months and nine months ended Sept. 30, 1992, were 3,675,000. Fully diluted net earnings per common share reflect when dilutive, 1) the incremental common shares issuable upon the assumed exercise of outstanding stock options, and 2) the assumed conversion of the Preferred Stock and the elimination of the related Preferred Stock dividends. Antidilution occurred in the three months and nine months ended Sept. 30, 1993 and 1992.
 (d) Net earnings from continuing operations per common share is calculated by subtracting preferred stock dividends from earnings from continuing operations and dividing the result by the applicable weighted average number of common shares outstanding.
 KERR GROUP INC.
 Condensed Consolidated Balance Sheets as of
 Sept. 30, 1993, and Dec. 31, 1992
 (In Thousands)
 Sept. 30, 1993 Dec. 31, 1992
 (Unaudited) (Audited)
 Assets
 Cash and cash equivalents $15,188 $19,251
 Receivables 15,259 11,347
 Inventories 24,566 22,320
 Deferred income taxes and
 other current assets 3,232 2,081
 Total current assets 58,245 54,999
 Property, plant and equipment, net 36,563 36,383
 Goodwill and other intangibles 6,457 7,064
 Other assets 4,199 2,477
 Non-current net assets related to
 discontinued operations 3,972 4,309
 Total $109,436 $105,232
 Liabilities and Stockholders' Equity
 Current liabilities $14,707 $19,361
 Deferred income taxes and
 other liabilities 7,814 9,407
 Subordinated long-term debt(a) --- 40,000
 Senior long-term notes(a) 50,000 ---
 Preferred stock 9,748 9,748
 Common equity before reduction
 for ESOP 28,062 28,363
 Notes receivable from ESOP Trusts (895) (1,647)
 Total stockholders' equity 36,915 36,464
 Total $109,436 $105,232
 Selected Balance Sheet Data
 Working capital $43,538 $35,638
 Book value per common share $7.41 $7.27
 (a) See Note (b) to the Consolidated Statements of Earnings (Loss).
 -0- 11/2/93
 /CONTACT: D. Gordon Strickland, senior VP, Finance and CFO of Kerr, 310-284-2585/
 (KGM)


CO: Kerr Group Inc. ST: California IN: SU: ERN

JB-EH -- LA026 -- 9686 11/02/93 13:30 EST
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Date:Nov 2, 1993
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