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R.P. SCHERER REPORTS THIRD-QUARTER FINANCIAL RESULTS

 R.P. SCHERER REPORTS THIRD-QUARTER FINANCIAL RESULTS
 TROY, Mich., Jan. 28 /PRNewswire/ -- R.P. Scherer Corporation


(NYSE: SHR) today released the following:
 Sales and Backlog
 R.P. Scherer announced today sales of $85.0 million for the third fiscal quarter ended Dec. 31, 1991, and $247.6 million for the first nine months of fiscal 1992. These sales represent increases of 6 percent and 11 percent, respectively, over sales of the prior periods. Twelve-month sales backlogs worldwide remained very strong at $96.3 million as of Dec. 31, 1991, up 13 percent from a year ago.
 Pro Forma Results
 On a pro forma basis, giving effect to the successfully completed public stock offering in the third quarter, the company earned operating income of $19.1 million in the third fiscal quarter and $56.3 million for the first nine months, representing respective increases of 11 percent and 20 percent from the same periods last year. The company continues to achieve significant gains in operating profitability. Before expenses for research and development activities, operating margins increased to 25.3 percent of sales for the third quarter ended Dec. 31, 1991, as compared to 23.5 percent for the same quarter of last year. For the nine-month periods ended Dec. 31, 1991 and 1990, operating margins were 25.3 percent and 23.4 percent, respectively.
 Pro forma net income for the third quarter was $5.4 million, or $0.23 per share, and, for the nine-month period, $16.9 million or $0.70 per share. These pro forma net earnings represent increases of 16 percent and 34 percent, respectively, from earnings levels for the same periods last fiscal year. The pro forma results reflect the impact of the repayment of debt, the redemption of the company's 17-percent exchangeable preferred stock and other transactions related to the company's October 1991 public stock offering as if such transactions occurred at the beginning of each period reported.
 Commenting on these results, a company spokesperson stated, "The sales increases and operating margin improvements were achieved in spite of the adverse impact of the stronger U.S. dollar this fiscal year as compared with last year. On a constant exchange rate basis, sales and pro forma operating income increased by 11 percent and 16 percent, respectively, for the third quarter, and 16 percent and 25 percent, respectively, for the nine months ended Dec. 31, 1991, when compared to the same periods last year."
 Net Results of Continuing Operations
 The company reported losses from continuing operations of $10.0 million and $8.4 million for the quarter and nine-month period ended Dec. 31, 1991, respectively. The losses for both periods reflect a one-time $12.4 million non-cash charge for management stock and other compensation expense relating primarily to the accelerated vesting of certain stock options in connection with the public stock offering. In addition, the results include a $2.1 million extraordinary loss from the write-off of unamortized deferred financing costs associated with the debt retired with stock offering proceeds.
 R.P. Scherer Corporation, a leading international developer and manufacturer of drug delivery systems, is the world's largest producer of soft gelatin capsules ("softgels"). The company is currently developing and commercializing advanced drug delivery systems, including SCHERERSOL(R), ZYDIS(R), and PULSINCAP(TM) technologies. The company's proprietary drug delivery systems improve the efficacy of drugs by regulating the dosage, rate of absorption and place of release. The company operates a global network of 15 facilities in 12 countries.
 R.P. SCHERER CORPORATION AND SUBSIDIARIES
 SUMMARY OF FINANCIAL RESULTS
 (In thousands, except per-share data)
 Three Months Pct. Nine Months Pct.
 Ended Dec. 31 Change Ended Dec. 31 Change
 Pro Forma 1991 1990 1991 1990
 Financial
 Information:
 Net sales $85,015 $80,544 6 $247,563 $222,346 11
 Net income from
 continuing
 operations
 available for
 common shares 5,427 4,672 16 16,877 12,604 34
 Net income per
 common share from
 continuing
 operations $0.23 $0.19 $0.70 $0.52
 Average number
 of common
 shares 24,018 24,018 24,018 24,018
 Summary Income
 Statement Data:
 Net sales $85,015 $80,544 $247,563 $222,346
 Cost of sales
 & other
 operating
 costs 63,485 61,578 184,836 170,258
 Stock compensation
 expense &
 other 12,345 --- 12,345 ---
 Research &
 development
 expenses 2,416 1,775 6,399 5,118
 Operating
 income 6,769 17,191 43,983 46,970
 Interest expense
 & other 6,775 11,007 27,621 32,697
 Income (loss) from
 continuing
 operations before
 income taxes &
 minority
 interests (6) 6,184 16,362 14,273
 Income taxes &
 minority
 interests 7,948 6,873 22,712 17,962
 Loss from
 continuing
 operations
 before
 extraordinary
 charge (7,954) (689) (6,350) (3,689)
 Extraordinary
 loss on
 early debt
 extinguishment (2,067) --- (2,067) ---
 Loss from
 continuing
 operations (10,021) (689) (8,417) (3,689)
 Loss from
 discontinued
 operation --- (480) (16,538) (622)
 Net loss (10,021) (1,169) (24,955) (4,311)
 Preferred stock
 dividends 1,600 1,370 6,372 3,834
 Net loss
 attributable
 to common
 shares ($11,621) ($2,539) ($31,327) ($8,145)
 Net loss
 per common
 share ($0.58) ($0.29) ($2.49) ($0.92)
 Average number of
 common shares 19,899 8,887 12,571 8,887
 -0- 1/28/92
 /CONTACT: Nicole Williams of R.P. Scherer Corporation, 313-649-0900/
 (SHR) CO: R.P. Scherer Corporation ST: Michigan IN: MTC SU: ERN


SB-JG -- DE025 -- 4447 01/28/92 17:20 EST
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Date:Jan 28, 1992
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