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RICHFOOD HOLDINGS ANNOUNCES RECORD THIRD QUARTER EARNINGS

 RICHFOOD HOLDINGS ANNOUNCES RECORD THIRD QUARTER EARNINGS
 RICHMOND, Va., Jan. 21 /PRNewswire/ -- Richfood Holdings, Inc. (NASDAQ: RCHF) today announced record net earnings for the third quarter of fiscal 1992.
 For the twelve-week period ended Jan. 4, 1992, the company reported net earnings of $3.6 million, an increase of 57.9 percent over net earnings of $2.3 million for the third quarter of fiscal 1991. Net earnings per share for the third quarter rose 54.5 percent to $0.34 per share, as compared to $0.22 per share for the comparable prior year quarter. The company operated at a record net after-tax margin of 1.42 percent, compared to 0.95 percent in the year earlier quarter. Net sales for the quarter were $251.3 million, a 5.1 percent increase over net sales of $239.1 million for the comparable prior year quarter. Excluding one-time sales of $3.0 million to Giant Foods in the quarter, sales increased 3.8 percent over the prior year quarter.
 Donald D. Bennett, president and chief executive officer, said: "Sales growth continues to be strong for the company in spite of current economic conditions. Our ongoing emphasis on retail customer development and the expansion of our IGA program have contributed significantly to the growth in our sales volume. We are actively pursuing new retail customer opportunities, while at the same time supporting our existing customers in expanding and enhancing their businesses."
 Bennett added: "Our after-tax net margin for the quarter of 1.42 percent and 1.19 percent year-to-date ranks among the highest in the industry. Increased sales from our single 1.2 million square foot distribution facility, coupled with increased productivity and efficiency in our warehouse and transportation operations, have led to this record net margin."
 For the 36 week period ended Jan. 4, 1992, the company reported net earnings of $8.7 million, an increase of 47.5 percent over net earnings of $5.9 million for the prior year period. Earnings per share for the thirty-six week period rose 48.2 percent to $0.83 per share, as compared to $0.56 per share for the comparable prior year period. Year-to-date sales increased to $729.6 million, as compared to sales of $712.2 million for the comparable period in fiscal 1991.
 Inventories at Jan. 4, 1992 were $76.4 million, compared to $68.0 million at Jan. 5, 1991. Institutional borrowings were $16.8 million at quarter-end, compared to $14.5 million at the prior year quarter-end.
 Bennett commented: "Taking advantage of buying opportunities offered by our vendors has resulted in higher inventory levels in specific categories of merchandise. We are committed to obtaining the best price on our purchases, in turn allowing our retail customers to be more competitive in the marketplace."
 Richfood Holdings, Inc. is the largest wholesale food distributor in its Mid-Atlantic operating region and the 12th largest wholesale food distributor in the United States. The company sells a complete selection of national brand and private label groceries, frozen foods, meat, produce, dairy and delicatessen products to approximately 400 customers that operate approximately 650 retail supermarkets in Virginia, Maryland, North Carolina, Delaware, West Virginia and the District of Columbia.
 RICHFOOD HOLDINGS, INC. AND SUBSIDIARIES
 Consolidated Statements of Earnings
 (Dollar amounts in thousands, except per share data)
 Periods ended: Third quarter Fiscal year to date
 1/4/92 1/5/91 1/4/92 1/5/91
 (12 Weeks) (36 Weeks)
 Net sales $251,328 $239,144 $729,609 $712,224
 Costs and expenses
 Cost of goods sold 231,353 221,084 673,232 659,912
 Operating and admin.
 expenses 14,226 13,622 41,581 40,777
 Interest expense 778 1,021 2,165 2,784
 Other income (702) (233) (1,163) (752)
 Earnings before
 income taxes 5,673 3,650 13,794 9,503
 Income tax provision 2,099 1,387 5,104 3,610
 Net earnings 3,574 2,263 8,690 5,893
 Net earnings per
 common share $0.34 $0.22 $0.83 $0.56
 Average common shares
 outstanding 10,439,356 10,432,451 10,434,753 10,432,451
 -0- 1/21/92
 /CONTACT: June Filingeri or Robert Borchert of Morgen-Walke Associates, 212-986-5900, for Richfood Holdings/
 (RCHF) CO: Richfood Holdings Inc. ST: Virginia IN: FOD SU: ERN


TS -- NY017 -- 1655 01/21/92 09:07 EST
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Publication:PR Newswire
Date:Jan 21, 1992
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