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One Price Clothing Stores Announces Earnings For The Third Quarter

DUNCAN, S.C., Nov. 21 /PRNewswire/ -- One Price Clothing Stores, Inc. (Nasdaq: ONPR) today reported a net loss of $2,763,000 for the third fiscal quarter ended November 2, 1996 or $0.26 per share compared to a net loss of $2,275,000 or $0.22 per share for the same period of fiscal 1995. For the nine-month-period ended November 2, 1996, the Company reported net income of $1,414,000 or $0.14 per share compared to net income of $1,328,000 or $0.13 per share for the same period last year.

As previously announced, net sales for the fiscal quarter ended November 2, 1996 were $63,899,000 compared to $69,451,000 for the same period of 1995. Comparable store sales for the three months (adjusted for the calendar shift - to compare the 13 weeks ended November 2, 1996 to the 13 weeks ended November 4, 1995) decreased 7% compared to the same period last year. Net sales for the nine-month-period ended November 2, 1996 increased 2% to $227,643,000 compared to $223,330,000 for the same period last year. Comparable store sales for the nine-month-period (adjusted for the calendar shift) decreased 3% compared to the same period last year.

Three new stores were opened in the third quarter of 1996 and six stores were closed. This brings the total number of stores in operation at November 2, 1996 to 661 stores located in 28 states and Puerto Rico, 29 fewer stores than at quarter-end last year.

ONE PRICE CLOTHING STORES, INC.

Condensed Consolidated Balance Sheets
 November 2, December 30, October 28,
 1996 1995 1995
 (Unaudited) (1) (Unaudited)


Assets

CURRENT ASSETS
 Cash and cash equivalents $394,000 $ 668,000 $ 1,107,000
 Merchandise inventories 48,389,000 28,961,000 44,602,000


Prepaid Federal and state
 income taxes 2,971,000 1,363,000 2,317,000
 Deferred income taxes 2,454,000 2,093,000 2,267,000
 Other current assets 5,282,000 2,865,000 4,124,000
 TOTAL CURRENT ASSETS 59,490,000 35,950,000 54,417,000
 PROPERTY AND EQUIPMENT, at cost 58,058,000 58,759,000 57,154,000


Less accumulated
 depreciation 20,653,000 17,575,000 16,669,000
 37,405,000 41,184,000 40,485,000
 OTHER ASSETS 2,767,000 2,230,000 1,861,000
 $ 99,662,000 $ 79,364,000 $ 96,763,000


Liabilities and Shareholders' Equity

CURRENT LIABILITIES
 Accounts payable $ 24,955,000 $ 10,298,000 $ 17,411,000
 Note payable 10,865,000 412,000 15,238,000


Current portion of
 long-term debt 1,579,000 921,000 2,000,000
 Sundry liabilities 7,148,000 6,963,000 6,396,000
 TOTAL CURRENT LIABILITIES 44,547,000 18,594,000 41,045,000
 LONG-TERM DEBT 5,263,000 6,579,000 4,000,000


DEFERRED INCOME TAXES AND OTHER
 NONCURRENT LIABILITIES 2,829,000 2,310,000 2,043,000


SHAREHOLDERS' EQUITY

Preferred Stock, par value
 $0.01, -- authorized and
 unissued 500,000 shares


Common Stock, par value $0.01 --
 authorized 35,000,000 shares,
 issued and outstanding
 10,435,531, 10,335,031
 and 10,317,031 shares 104,000 103,000 103,000
 Additional paid-in capital 11,453,000 11,002,000 10,954,000
 Retained earnings 35,466,000 40,776,000 38,618,000
 47,023,000 51,881,000 49,675,000
 $99,662,000 $79,364,000 $96,763,000


(1) Derived from audited financial statements.

Condensed Consolidated Statements of Operations (Unaudited)
 Three Months Ended
 November 2, October 28,
 1996 1995
 NET SALES $ 63,899,000 $ 69,451,000


Cost of goods sold, distribution
 and buying costs 42,622,000 46,739,000
 GROSS MARGIN 21,277,000 22,712,000


Selling, general and administrative
 expenses 17,943,000 18,571,000
 Store rent and related expenses 6,363,000 6,332,000
 Depreciation and amortization expense 1,172,000 1,165,000
 Interest expense 390,000 383,000
 25,868,000 26,451,000
 Interest income 43,000 9,000
 NET EXPENSES 25,825,000 26,442,000
 LOSS BEFORE INCOME TAXES (4,548,000) (3,730,000)
 Benefit from income taxes (1,785,000) (1,455,000)
 NET LOSS $ (2,763,000) $ (2,275,000)
 Per share amounts $ (0.26) $ (0.22)
 Weighted average common shares 10,441,005 10,351,958


PERCENT OF SALES
 Net sales 100.0% 100.0%


Cost of goods sold, distribution and
 buying costs 66.7% 67.3%
 Gross margin 33.3% 32.7%
 Selling, general and administrative expenses 28.1% 26.7%
 Store rent and related expenses 10.0% 9.1%
 Depreciation and amortization expense 1.8% 1.7%
 Interest expense 0.6% 0.6%
 Interest income 0.1% 0.0%
 Net expenses 40.4% 38.1%
 Loss before income taxes -7.1% -5.4%
 Benefit from income taxes -2.8% -2.1%
 Net loss -4.3% -3.3%


Condensed Consolidated Statements of Income (Unaudited)
 Nine Months Ended
 November 2, October 28,
 1996 1995
 NET SALES $ 227,643,000 $ 223,330,000


Cost of goods sold, distribution
 and buying costs 146,419,000 144,750,000
 GROSS MARGIN 81,224,000 78,580,000


Selling, general and administrative
 expenses 54,888,000 53,760,000
 Store rent and related expenses 19,200,000 18,541,000
 Depreciation and amortization expense 3,520,000 3,185,000
 Interest expense 1,388,000 953,000
 78,996,000 76,439,000
 Interest income 121,000 35,000
 NET EXPENSES 78,875,000 76,404,000
 INCOME BEFORE INCOME TAXES 2,349,000 2,176,000
 Provision for income taxes 935,000 848,000
 NET INCOME $ 1,414,000 $ 1,328,000
 Per share amounts $ 0.14 $ 0.13
 Weighted average common shares 10,405,422 10,356,280
 PERCENT OF SALES
 Net sales 100.0% 100.0%


Cost of goods sold, distribution
 and buying costs 64.3% 64.8%
 Gross margin 35.7% 35.2%
 Selling, general and administrative expenses 24.1% 24.1%
 Store rent and related expenses 8.4% 8.3%
 Depreciation and amortization expense 1.5% 1.4%
 Interest expense 0.6% 0.4%
 Interest income 0.1% 0.0%
 Net expenses 34.6% 34.2%
 Income before income taxes 1.0% 1.0%
 Provision for income taxes 0.4% 0.4%
 Net income 0.6% 0.6%


Condensed Consolidated Statements of Cash Flows (Unaudited)
 Nine Months Ended
 November 2, October 28,
 1996 1995


OPERATING ACTIVITIES:
 Net income $ 1,414,000 $ 1,328,000


Adjustments to reconcile net income
 to net cash provided by (used in)
 operating activities:
 Depreciation and amortization 3,520,000 3,185,000
 Decrease (increase) in other
 noncurrent assets 483,000 (134,000)
 Deferred income taxes 623,000 (300,000)
 Loss on disposal of property and
 equipment 672,000 442,000
 Changes in operating assets and
 liabilities (3,479,000) (10,679,000)
 NET CASH PROVIDED BY (USED IN)
 OPERATING ACTIVITIES 3,233,000 (6,158,000)


INVESTING ACTIVITIES:
 Purchases of property and equipment (2,113,000) (7,336,000)
 Purchases of other noncurrent assets (231,000) (416,000)
 NET CASH USED IN INVESTING ACTIVITIES (2,344,000) (7,752,000)


FINANCING ACTIVITIES:

Net (repayments of) borrowings from
 revolving credit facility (1,950,000) 7,175,000


Proceeds from issuance of long-term
 debt 7,500,000 6,000,000
 Repayment of long-term debt (6,158,000) --
 Debt financing costs incurred (710,000) (85,000)
 Decrease in amount due to related party (33,000) (30,000)


Proceeds from exercise of Common Stock
 options 452,000 52,000
 NET CASH (USED IN) PROVIDED BY FINANCING
 ACTIVITIES (899,000) 13,112,000
 DECREASE IN CASH AND CASH EQUIVALENTS (10,000) (798,000)


Cash and cash equivalents at beginning of
 period 404,000 1,905,000
 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 394,000 $ 1,107,000


SUPPLEMENTAL CASH FLOW INFORMATION:
 Interest paid $ 1,281,000 $ 869,000
 Income taxes paid 65,000 455,000


SOURCE One Price Clothing Stores, Inc.
 -0- 11/21/96


/CONTACT: Stephen A. Feldman, Executive Vice President & Chief Financial Officer, One Price Clothing Stores, Inc., 864-433-8888, Ext. 489/

(ONPR)

CO: One Price Clothing Stores, Inc. ST: South Carolina IN: REA SU: ERN

JB -- CHTH007 -- 5551 11/21/96 16:02 EST http://www.prnewswire.com
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Date:Nov 21, 1996
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