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LADD REPORTS IMPROVED 1992 SALES AND EARNINGS

 HIGH POINT, N.C., Feb. 1 /PRNewswire/ -- LADD Furniture, Inc. (NASDAQ-NMS: LADF) today reported that net sales for the fourth quarter ended January 2, 1993 totaled $129.0 million, an increase of 26 percent over the same quarter of 1991. Fourth quarter 1992 net earnings were $1.5 million, or $.06 per share, compared to a year-earlier net loss of $10.6 million, or $(.56) per share. The 1992 fourth quarter net sales included Fournier Furniture, which LADD acquired last July.
 For the year ended January 2, 1993, net sales rose 16 percent, to $496.7 million, from 1991's $429.1 million. Fiscal 1992 net earnings totaled $5.2 million, or $.24 per share, compared to a net loss of $12.7 million, or $(.67) per share in the prior year. Average shares outstanding increased 21 percent in this year's fourth quarter and rose 13 percent for the full year, compared to the same periods of 1991, reflecting 4,025,000 shares of new common stock issued in LADD's May 1992 stock offering. The 1992 fiscal fourth quarter and full year contained 14 weeks and 53 weeks, respectively.
 Commenting on these results, LADD chairman and chief executive officer Richard R. Allen said, "We continue to be pleased with the sales growth achieved by LADD's various furniture businesses and by the corporation overall during 1992. Of special note is the contribution our international sales efforts made to 1992 sales, with LADD products being sold to customers in more than 40 countries around the world last year." He added, "While the strong sales gains are gratifying, competitive pricing pressures have remained intense and our 1992 operating margins, while higher than those of 1991, are still well below our goals."
 Allen continued, "We are encouraged by recent strength in U.S. retail furniture sales and expect this improved business climate to continue during 1993. The present environment of low interest rates - coupled with higher consumer confidence levels and increased housing turnover - should stimulate furniture sales over the next several quarters." He concluded, "Our plans for 1993 call for continued sales growth, further operating margin improvements and a significantly increased investment in technologically advanced equipment aimed at improving quality, increasing productivity and reducing manufacturing costs." He said he expects LADD's 1993 capital spending to exceed $20 million.
 LADD senior vice president and chief financial officer William S. Creekmuir said long-term debt totaled $91.5 million at January 2, 1993, down from $125.3 million at year-end 1991, and represented approximately 37 percent of total capitalization at the end of fiscal 1992, compared to 52 percent a year earlier. He noted that total debt, including current installments, stood at $92.6 million at the end of fiscal 1992, down from $138.1 million at the end of fiscal 1991 - a more than $45 million reduction during 1992. Creekmuir said "The significant strengthening of LADD's financial condition during 1992 which resulted from the May common stock offering and improved operating results has permitted us to arrange new bank financing for the corporation, as announced recently. The new financing agreement provides LADD with increased flexibility and almost $45 million of unused debt capacity with which to fund future growth." Moreover, Creekmuir concluded, "the new bank financing is unsecured and will result in a lower interest rate for LADD in the coming year which, at current debt levels, will save the corporation more than $1 million in annual interest expense."
 Headquartered in High Point, NC, LADD is the fourth largest North American manufacturer of residential furniture and a leading supplier of contract furniture to the guest room, government and health care markets domestically and abroad. LADD sells its broad range of wood, upholstered and metal furniture products under the major brand names American Drew, American of Martinsville, Barclay, Brown Jordan, Clayton Marcus, Daystrom, Design Horizons, Fournier, Lea Industries and Pennsylvania House, and markets these products worldwide through LADD International. LADD also owns and operates two support companies, Lea Lumber & Plywood and LADD Transportation. LADD's stock is traded on the over-the-counter National Market System under the NASDAQ symbol LADF.
 LADD FURNITURE, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 (PRELIMINARY AND UNAUDITED)
 Quarter Ended
 Jan. 2, 1993(A) Dec. 28, 1991
 Net Sales $ 129,016,000 102,666,000
 Earnings (loss) before interest
 and income taxes 4,617,000 (12,630,000)
 Interest Expense 1,631,000 2,409,000
 Earnings (loss) before income
 taxes 2,986,000 (15,039,000)
 Income tax expense (benefit) 1,483,000 (4,477,000)
 Net Earnings (loss) $ 1,503,000 (10,562,000)
 Net earnings (loss) per common
 stock $ 0.06 (0.56)
 Weighted average number of
 common shares outstanding 23,019,033 18,984,452
 Year Ended
 Jan. 2, 1993(A) Dec. 28, 1991
 Net Sales $ 496,679,000 429,110,000
 Earnings (loss) before interest
 and income taxes 16,433,000 (7,630,000)
 Interest Expense 7,502,000 10,413,000
 Earnings (loss) before income
 taxes 8,931,000 (18,043,000)
 Income tax expense (benefit) 3,755,000 (5,294,000)
 Net Earnings (loss) $ 5,176,000 (12,749,000)
 Net earnings (loss) per common
 stock $ 0.24 (0.67)
 Weighted average number of
 common shares outstanding 21,441,616 18,945,763
 (A) 1992 fourth quarter contained 14 weeks; 1992 year contained 53 weeks.
 -0- 2/1/92
 /CONTACT: John J. Ong of LADD Furniture, 919-888-6353/
 (LADF)


CO: LADD Furniture, Inc. ST: North Carolina IN: REA SU: ERN

CM -- CH008 -- 1371 02/01/93 12:19 EST
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