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REVCO SALES, OPERATING PROFIT INCREASE IN FIRST QUARTER FY93

 REVCO SALES, OPERATING PROFIT INCREASE
 IN FIRST QUARTER FY93
 TWINSBURG, Ohio, Sept. 29 /PRNewswire/ -- Revco D.S., Inc. (NYSE: RXR) today reported results for the first quarter of its 1993 fiscal year.
 -- Sales advanced to $472.9 million, a 7.8 percent increase from last year's first quarter sales of $438.6 million. Comparable store sales increased 7.2 percent for the quarter.
 -- Operating profit rose to $6.1 million from last year's operating profit
of $1.7 million; this increase was due in part to a lower depreciation and amortization charge from the adoption of reorganization accounting, as discussed further below.
 Ignoring the impact of this lower depreciation and amortization expense, operating profit increased approximately $2.7 million, a 19.9 percent increase over last year's reported operating profit for the quarter.
 -- Earnings before interest, income taxes, depreciation, amortization and reorganization expenses ("EBITDA") were $16.2 million, an improvement of almost 20.0 percent over the $13.5 million reported for last year's first quarter.
 -- Net loss for the quarter was reduced to $1.5 million, an improvement of $12.5 million from last year's first quarter net loss of $14.0 million. The net loss for the current year included a tax benefit of $3.0 million.
 -- Cash reserves remained high at $81.0 million and there were no borrowings under Revco's $100.0 million working capital credit facility through the entire first quarter.
 On June 1, 1992, Revco emerged from Chapter 11 of the U.S. Bankruptcy Code. As a result of its plan of reorganization, the company, as required by generally accepted accounting principles, adjusted property, goodwill and leasehold interests downward by $321.1 million to fair market values, resulting in lower depreciation charges subsequent to June 1, 1992.
 D. Dwayne Hoven, Revco president and chief operating officer, said, "Revco's performance continues to improve, with growth in sales, operating profit and EBITDA over last year's first quarter. Revco is not immune to the economic softness all retailers have experienced this summer. We are, however, in one of the steadier segments of retailing, and will continue to manage our business within this weak economy to build sales and improve our cost structure."
 Revco's first quarter, which falls in the summer, is seasonally its lightest. Hoven attributed the performance improvements to Revco's use of systems to enhance marketing and customer service, thereby enabling the company to offer more value to its customers while better controlling costs.
 On July 27, 1992, Revco's board of directors named Hoven, formerly executive vice president of marketing and stores, to be president and chief operating officer, replacing Boake A. Sells. Effective Aug. 27, 1992, Hoven was named to Revco's board of directors.
 Revco operates approximately 1,150 drug stores in 9 contiguous eastern states,filling more than 46 million prescriptions yearly. Revco is based in Twinsburg, Ohio.
 Revco D.S., Inc. and Subsidiaries
 Consolidated Results of Operations
 (dollars in thousands)
 First Quarter (unaudited)
 12 Weeks Ended 12 Weeks Ended
 8/22/92 8/24/91
 Sales $472,874 $438,567
 Cost of sales and
 operating expenses 456,716 425,090
 Depreciation and amortization 10,035 11,745
 Operating profit 6,123 1,732
 Interest expense, net 10,619 10,025
 Loss before reorganization
 items and income taxes (4,496) (8,293)
 Reorganization items 0 5,702
 Pre-tax loss (4,496) (13,995)
 Income tax benefit 2,953 0
 Net loss ($1,543) ($13,995)
 Earnings (loss) per share ($.04) (a)
 Supplementary Data:
 Average number of shares
 outstanding 35,630,601 (a)
 Earnings before income taxes,
 reorganization items,
 interest, depreciation and
 amortization $16,158 $13,477
 Number of drug stores
 at end of period 1,147 1,153
 (a) Earnings per share data are not presented for fiscal 1992, due to the general lack of comparability as a result of the revised capital structure of the company.
 The company will file its 10Q document with the SEC on or about Oct. 6, 1992.
 -0- 9/29/92
 /CONTACT: Diana Lueptow of Revco D.S., Inc., 216-425-9811, ext. 6145, or 216-487-1060/
 (RXR) CO: Revco D.S., Inc. ST: Ohio IN: REA SU: ERN


KK -- CL001 -- 4234 09/29/92 09:03 EDT
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Publication:PR Newswire
Date:Sep 29, 1992
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