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SCOTTISH HERITABLE, INC. REPORTS THIRD QUARTER PROFIT

 FAIRFAX, Va., Nov. 4 /PRNewswire/ -- Scottish Heritable, Inc. (NASDAQ: SHER) today reported third quarter net earnings of $330,000 on revenues of $9,445,000. During the same period last year, the company reported net earnings of $11,126,000 and revenues of $9,426,000. For the nine months ended Sept. 30, 1993, the company reported a net loss of $214,000 on revenues of $24,566,000. For the same period last year, the company reported net earnings of $9,877,000 and revenues of $28,179,000.
 "Last year's earnings related almost entirely to the gain on the sale of the Virginia plant in July 1992," said Timothy W. Byrne, Scottish Heritable, Inc.'s vice-president and chief financial officer. "Revenues from the three remaining plants for the third quarter and first nine months of 1993, were ahead of the comparable figures for last year by 4.3 percent and 3.3 percent, respectively. This was achieved inspite of continued depressed market conditions in Pennsylvania and New Jersey.
 "In October, we entered into new financing agreements with a commercial bank and replaced our existing borrowings, which were scheduled to mature on Nov. 30, 1993. This new financing dramatically improves the company's financial condition," said Byrne.
 "We are continuing with our initiatives to control costs and improve operating efficiencies in a still difficult business environment. Any significant improvement in our performance can be achieved only with volume growth without price erosion. We are committed to improving our performance and, thereby, enhancing share value," said Robert F. Kizer, the new president and chief executive officer of Scottish Heritable, Inc.
 Scottish Heritable, Inc. is a lime and limestone producer with headquarters in Fairfax, Va., and operations in Arkansas, Pennsylvania and Texas.
 SCOTTISH HERITABLE, INC. AND SUBSIDIARIES
 Condensed Consolidated Statements of Operations
 (Unaudited, in thousands of dollars, except per share data)
 Periods ended Sept. 30 Three Months
 1993 (Pct.) 1992 (Pct.)
 Revenues $ 9,445 100.0 $ 9,426 100.0
 Cost of revenues:
 Labor and other operating
 expenses 6,324 67.0 6,356 67.5
 Depreciation and depletion 973 10.3 819 8.7
 Amortization of cost in excess
 of net assets acquired 164 1.7 164 1.7
 Total 7,461 79.0 7,339 77.9
 Gross profit 1,984 21.0 2,087 22.1
 Selling and administration
 expenses 1,603 17.0 1,285 13.6
 Operating profit 381 4.0 802 8.5
 Other deductions (income):
 Interest expense 202 2.1 341 3.6
 Gain on sale of VLC assets -- (11,320) -120.1
 Other, net (1) -0.0 (50) -0.5
 Total 201 2.1 (11,029) -117.0
 Earnings (loss) from continuing
 operations before
 income taxes 180 1.9 11,831 125.5
 Federal and state
 income taxes -- -- 685 7.3
 Earnings (loss) from
 continuing operations 180 1.9 11,146 118.2
 Earnings (loss) from
 discontinued operations 150 1.6 (20) -0.2
 Net earnings (loss) $ 330 3.5 $ 11,126 118.0
 Earnings (loss) per share of
 common stock:
 Continuing operations $ 0.05 $ 2.91
 Discontinued operations 0.03 (0.01)
 Net earnings (loss) $ 0.08 $ 2.90
 SCOTTISH HERITAGE, INC.
 Periods ended Sept. 30 Nine Months
 1993 (Pct.) 1992 (Pct.)
 Revenues $ 24,566 100.0 $ 28,179 100.0
 Cost of revenues:
 Labor and other operating
 expenses 16,537 67.3 19,603 69.6
 Depreciation and depletion 2,681 10.9 2,925 10.4
 Amortization of cost in excess
 of net assets acquired 492 2.0 492 1.7
 Total 19,710 80.2 23,020 81.7
 Gross profit 4,856 19.8 5,159 18.3
 Selling and administration
 expenses 4,587 18.7 4,148 14.7
 Operating profit 269 1.1 1,011 3.6
 Other deductions (income):
 Interest expense 581 2.4 1,573 5.6
 Gain on sale of VLC assets -- -- (11,320) -40.2
 Other, net 37 0.1 (124) -0.4
 Total 618 2.5 (9,871) -35.0
 Earnings (loss) from continuing
 operations before
 income taxes (349) -1.4 10,882 38.6
 Federal and state income taxes -- -- 685 2.4
 Earnings (loss) from
 continuing operations (349) -1.4 10,197 36.2
 Earnings (loss) from
 discontinued operations 135 0.5 (320) -1.1
 Net earnings (loss) $ (214) -0.9 $ 9,877 35.1
 Earnings (loss) per share of
 common stock:
 Continuing operations $ (0.09) $ 2.66
 Discontinued operations 0.03 (0.09)
 Net earnings (loss) $ (0.06) $ 2.57
 Pro Forma Restatement
 Effective July 15, 1992, substantially all of the assets and business of VLC, a wholly-owned subsidiary, were sold to Eastern Ridge Lime Company, L.P. for $19,700 in cash and the assumption of a lease obligation, subject to certain post-closing adjustments. To provide an historic perspective of the company's remaining operations, a pro forma restatement of the 1992 results excluding VLC is presented below. The pro forma consolidated statement of operations shown below assumes that the sale transaction described above occurred at the beginning of the period.
 The pro forma information has been prepared by the company's management based upon historical financial statements. These may not be indicative of the results that actually would have occurred if the sale had been in effect on the date indicated or which may be obtained in the future.
 For comparison purposes, certain non-recurring charges relating to resolution of the company's control and shareholder situation and a payment due under an employment agreement have been eliminated from the 1993 results.
 SCOTTISH HERITAGE, INC.
 (In thousands of dollars, except per share data)
 Periods ended Sept. 30 Three Months
 1993 (Pct.) 1992 (Pct.)
 Revenues
 Cost of revenues: $9,445 100 $9,057 100
 Labor and other operating
 expenses 6,324 67 6,190 68
 Depreciation and depletion 973 10 759 8
 Amortization of cost in excess
 of net assets acquired 164 2 164 2
 Gross profit 1,984 21 1,944 22
 Selling and administration
 expenses 1,278 14 1,258 14
 Operating profit 706 7 686 8
 Other deductions (income):
 Interest expense 202 2 247 3
 Other, net (1) -- (51) 0
 Net earnings from continuing
 operations before tax 505 5 490 5
 SCOTTISH HERITAGE, INC.
 Periods ended Sept. 30 Nine Months
 1993 (Pct.) 1992 (Pct.)
 Revenues
 Cost of revenues: 24,556 100 23,793 100
 Labor and other operating
 expenses 16,537 67 15,965 67
 Depreciation and depletion 2,681 11 2,281 10
 Amortization of cost in excess
 of net assets acquired 492 2 492 2
 Gross profit 4,856 20 5,055 21
 Selling and administration
 expenses 3,870 16 3,613 15
 Operating profit 986 4 1,442 6
 Other deductions (income):
 Interest expense 581 3 748 3
 Other, net 37 0 (111) (0)
 Net earnings from continuing
 operations before tax 368 1 805 3
 -0- 11/4/93
 /CONTACT: Timothy W. Byrne of Scottish Heritable, Inc., 703-207-9702/
 (SHER)


CO: Scottish Heritable, Inc. ST: Virginia IN: MNG SU: ERN

TM -- NY110 -- 0935 11/04/93 16:36 EST
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Date:Nov 4, 1993
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