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MICHAEL FOODS REPORTS HIGHER THIRD QUARTER AND NINE MONTH EARNINGS

 MINNEAPOLIS, Oct. 19 /PRNewswire/ -- Michael Foods, Inc. (NASDAQ-NMS: MIKL) today announced financial results for the third quarter and nine months ended Sept. 30, 1993.
 Net earnings for the three months ended Sept. 30, 1993 were $1.3 million versus $0.7 million. Reported net earnings per share were $0.07 versus $0.04, but were $0.13 prior to a one-time income tax adjustment. The quarter's unusually high tax rate (67 percent) reflects the impact of recently enacted federal tax legislation and reduced reported earnings per share by approximately $0.06. Third quarter net sales were $120.7 million versus $109.9 million in the prior year's third quarter, an increase of 10 percent.
 Net earnings for the nine months ended Sept. 30, 1993 were $4.0 million versus $2.7 million. Net earnings per share for the nine month period were $0.21 versus $0.14. Earnings per share for the nine months would have been $0.27 versus $0.14 without the one-time income tax adjustment in 1993's third quarter. Net sales for the first nine months of 1993 were $345.1 million versus $326.3 million in 1992, an increase of 6 percent.
 In commenting on the results, Chief Executive Officer Richard G. Olson said, "We are pleased to report our second consecutive quarterly earnings improvement. All four of our operating divisions showed good unit sales growth in the quarter. We saw particular strength in our Easy Eggs(R) line and in the Potato Products Division. Easy Eggs benefited from strong unit sales gains and production efficiencies. Higher unit sales, along with stronger industry pricing for french fries, resulted in much improved Potato Products Division earnings. Our Refrigerated Distribution and Dairy Products divisions also showed volume related operating improvements. Volumes for Simply Eggs(TM), our reduced cholesterol liquid whole eggs, remained well below break-even levels."
 Michael Foods is a diversified food processor and distributor with particular interests in egg products, refrigerated grocery products, frozen and refrigerated potato products, specialty dairy products and refrigerated soups and salads. Principal subsidiaries include M.G. Waldbaum Company, Crystal Farms Refrigerated Distribution Company, Northern Star Co., Kohler Mix Specialties, Inc., and Sunnyside Vegetable Packing, Inc.
 MICHAEL FOODS, INC.
 CONSOLIDATED STATEMENTS OF NET EARNINGS
 (NUMBERS IN THOUSANDS)
 Third Quarter Ended Nine Months Ended
 9/30/93 9/30/92 9/30/93 9/30/92
 Net sales $120,709 $109,878 $345,087 $326,314
 Cost of sales 105,004 97,332 301,332 288,131
 Gross profit 15,705 12,546 43,755 38,183
 Selling, general
 & administrative 9,626 8,993 29,183 26,617
 Operating profit 6,079 3,553 14,572 11,566
 Interest expense,
 net 2,002 2,420 6,360 7,343
 Earnings before
 income taxes 4,077 1,133 8,212 4,223
 Income tax expense 2,730 400 4,220 1,515
 NET EARNINGS $1,347 $733 $3,992 $2,708
 Earnings per share $.07 $.04 $.21 $.14
 Weighted average
 common shares
 outstanding 19,365,000 19,518,000 19,450,000 19,511,000
 -0- 10/19/93
 /CONTACT: Mark D. Witmer, director of corporate communications of Michael Foods, 612-546-1500/
 (MIKL)


CO: Michael Foods, Inc. ST: Minnesota IN: FOD SU: ERN

DB-CP -- MN023 -- 4094 10/19/93 15:06 EDT
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Publication:PR Newswire
Date:Oct 19, 1993
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