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SYLVAN FOODS HOLDINGS, INC. REPORTS THIRD QUARTER AND NINE MONTH RESULTS

 SYLVAN FOODS HOLDINGS, INC. REPORTS THIRD QUARTER
 AND NINE MONTH RESULTS
 WORTHINGTON, Pa., Nov. 4 /PRNewswire/ -- Sylvan Foods Holdings, Inc. (NASDAQ: SYLN) today announced sales of $27.4 million for its third quarter ended Sept. 27, 1992, up 49 percent from third quarter 1991, on North American spawn sales growth and contributions from two European acquisitions. Net income for the quarter declined 10 percent from $850,000 ($.17 per common share) to $768,000 ($.12 per common share). The earnings decline stemmed primarily from weak production at Sylvan's Moonlight Mushrooms, Inc. fresh mushroom operation. For the nine months ended Sept. 27, 1992, sales were $80.1 million vs. $59.5 million for the prior year period. Nine month 1992 net income of $3.9 million ($.63 per common share) reflects a 39 percent increase over 1991's nine month net income of $2.8 million ($.55 per common share).
 North American spawn shipments continued to increase in the quarter, up 13 percent from the prior year's third quarter results, and 18 percent on a year-to-date comparative basis. European spawn sales, adjusted for the Hauser acquisition, grew slowly during the period, due to a temporarily reduced demand resulting from an unseasonably warm summer, and due to general economic conditions. The Quincy Farms unit's production rose 30 percent during the period, but experienced a temporary disruption in distribution due to Hurricane Andrew. Lower than expected mushroom production levels at Moonlight Mushrooms adversely affected cost of sales in the quarter. The shortfall is expected to continue into the fourth quarter, but may be partially offset by a strengthening of spawn demand.
 Sylvan announced that its actuaries have completed a preliminary review of the effect of Financial Accounting Standard No. 106 -- Employers' Accounting for Postretirement Benefits Other Than Pensions. The company's preliminary estimated range for the initial cumulative liability at the time of adoption is from $15,000,000 to $18,000,000, relating entirely to the Moonlight Mushrooms subsidiary. The company expects to account for this cumulative liability with a one-time charge to net income of from $9,900,000 to $11,900,000, net of deferred tax benefits. The future annual negative impact on net income is estimated in the $800,000 to $960,000 range. The amounts are estimated as of the end of 1991 and are subject to revision based on changes in future health care cost trends, benefit plan modifications and possible changes in discount factors. The company has not determined when it will adopt the statement, but is required to adopt it no later than the first quarter of 1993.
 Sylvan Foods Holdings, Inc. is the leading worldwide producer and distributor of mushroom spawn and other spawn related products and services and the third largest domestic grower and marketer of fresh mushrooms.
 SYLVAN FOODS HOLDINGS, INC. AND SUBSIDIARIES
 Condensed Consolidated Statements of Income
 (Unaudited, in millions - except share data)
 Period Three Months Nine Months
 Ended 9/27/92 9/29/91 9/27/92 9/29/91
 Net sales $27.4 $18.4 $80.1 $59.5
 Operating income 1.5 1.9 7.0 6.0
 Interest expense less
 other income .3 .3 .6 1.1
 Net income .8 .9 3.9 2.8
 Earnings per common
 share $.12 $.17 $.63 $.55
 Weighted average
 number of shares 6,222,039 5,109,350 6,159,680 5,101,891
 Condensed Consolidated Balance Sheet
 Sept. 27, 1992
 (Unaudited, in millions)
 Assets Liabilities and Equity
 Cash & equivalents $1.8 Short-term debt $4.0
 Accounts receivable 11.0 Accounts payable 3.9
 Inventories 9.2 Other current liabilities 6.6
 Other current assets 4.1
 Total current liabilities 14.5
 Total current assets 26.1
 Long-term debt 29.0
 Property, plant and
 equipment 43.9 Other long-term liabilities 12.3
 Other assets 15.8 Stockholders' equity 30.0
 Total assets 85.8 Total liabilities & equity 85.8
 -0- 11/4/92
 /CONTACT: Bill Mooney of Sylvan Foods, 412-297-3402/
 (SYLN) CO: Sylvan Foods Holdings, Inc. ST: Pennsylvania IN: FOD SU: ERN


CD-JT -- PG003 -- 2604 11/04/92 15:05 EST
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Date:Nov 4, 1992
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