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NEW VALLEY CORPORATION REPORTS FIRST-QUARTER RESULTS

 UPPER SADDLE RIVER, N.J., May 12 /PRNewswire/ -- New Valley Corporation (NYSE: NVL) reported today that it recorded net income of $4.8 million for the three months ended March 31, 1993. This compares with a net loss of $4.0 million in the first quarter of 1992. After giving effect to undeclared dividends on preferred shares in the calculation of income or loss per-common-share, the first-quarter results were equal to a loss of 6 cents per share compared with a loss of 10 cents per share last year.
 Inasmuch as New Valley is now operating under the protection of Chapter 11 of the U.S. Bankruptcy Code, the corporation no longer is accruing interest on its defaulted debt. This change, which became effective Jan. 1, 1993, is the principal reason for the year-to-year improvement in the first-quarter results.
 Total revenues for the first quarter were $111 million, compared with $106 million in the first quarter of 1992.
 New Valley Corporation conducts its principal operations through its wholly owned subsidiary, Western Union Financial Services, Inc. (FSI). The North American unit of FSI provides Western Union Money Transfer, bill-payment and other financial services to consumers and businesses in the United States. It also provides money transfer service in Canada and between the U.S. and Canada and Mexico. The international unit of FSI provides Western Union Money Transfer service in countries outside of North America. A separate unit of FSI, Western Union Direct, was established at the end of 1992 initially to offer a secured MasterCard(R) credit card. In addition, the company provides Western Union Mailgram(R) and other messaging services to high-volume users through its Western Union Priority Services unit.
 NEW VALLEY CORPORATION
 Consolidated Statement of Operations
 (Unaudited, in thousands, except per-share amounts)
 Three months ended March 31 1993 1992
 Total revenues $ 111,407 $ 106,003
 Costs and expenses:
 Cost of services 65,566 62,219
 Marketing, general
 and administrative 31,622 26,510
 Retiree benefits and pension cost 5,558 6,982
 Depreciation 2,821 3,118
 Property and miscellaneous taxes 510 634
 Interest expense 918 15,136
 Restructuring credits (942) (5,501)
 Other income, net (2,201) (1,416)
 Total costs and expenses 103,852 107,682
 Income (loss) before state income taxes
 and financial restructuring costs 7,555 (1,679)
 Provision for state income taxes 200 343
 Financial restructuring costs 2,536 1,962
 Net income (loss) 4,819 (3,984)
 Dividends on preferred shares
 - undeclared (16,169) (14,218)
 Net loss applicable to common shares $ (11,350) $ (18,202)
 Net loss per common share $ (.06) $ (.10)
 -0- 5/12/93
 /CONTACT: Warren Bechtel of New Valley, 201-818-5790 or 212-868-8888/
 (NVL)


CO: New Valley Corporation ST: New Jersey IN: FIN SU: ERN

WB -- NY072 -- 7643 05/12/93 14:00 EDT
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Publication:PR Newswire
Date:May 12, 1993
Words:465
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