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SYLVAN FOODS HOLDINGS, INC. ANNOUNCES THIRD QUARTER RESULTS

 SARVER, Pa., Nov. 15 /PRNewswire/ -- Sylvan Foods Holdings, Inc. (NASDAQ: SYLN) today reported net sales of $28.0 million and net income of $.6 million, or $.10 per common share, for the three-month period ended Oct. 3, 1993.
 For the comparable period in 1992, net sales were $27.4 million and net income was $.8 million, or $.12 per common share. Worldwide gains in the production and shipment of spawn products were led by an 83 percent gain in unit shipments of a recently introduced casing inoculum, a product which accelerates mushroom growth. A weak pricing environment for fresh mushrooms resulted in unfavorable comparative operating income performance at Sylvan's Moonlight Mushrooms, Inc., and Quincy Farms operations.
 For the nine-month period ended Oct. 3, 1993, sales of $79.4 million, 1 percent lower than the comparable 1992 period, and net income of $2.5 million (before the one-time cumulative effect of an accounting change) fell short of the $3.9 million net income for the comparable nine-month period in 1992. The adoption of the accounting principle change to provide for future post-retirement medical and other benefits at the Moonlight subsidiary resulted in an $.8 million noncash charge against earnings for the 1993 period.
 Moonlight's continuing losses, which have adversely affected consolidated results, are being addressed by a proposed new wage and benefit structure which would restore competitiveness to the business. The union workforce initially rejected the proposal, and Moonlight has commenced a phased shutdown of the facility. Sylvan continues its expansion in the spawn business, breaking ground on a new production facility in the Netherlands, and adding production capacity to its Dayton, Nev., plant, which opened in January 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)
 Periods Ended Three Months Nine Months
 10/3/93 9/27/92 10/3/93 9/27/92
 Net sales $28.0 $27.4 $79.4 $80.1
 Operating income 1.5 1.5 4.6 7.0
 Interest expense less
 other income 0.5 0.3 0.6 0.6
 Net income before
 income taxes and
 cumulative effect of
 change in accounting 1.0 0.8 4.0 6.4
 Cumulative effect of
 change in accounting
 (net of tax) -- -- (9.9) --
 Net income $0.6 $0.8 $(7.5) $3.9
 Earnings per common
 share $0.10 $0.12 $(1.20) $0.63
 Weighted average number
 of shares 6,234,776 6,222,039 6,255,712 6,159,680
 CONDENSED CONSOLIDATED BALANCE SHEET
 Oct. 3, 1993
 (Unaudited, in millions)
 Assets Liabilities and Equity
 Cash & Equivalents $6.3 Short-term debt $5.5
 Accounts receivable 11.0 Accounts payable 3.2
 Inventories 8.1 Other current
 liabilities 6.0
 Other current assets 3.0
 Total current
 liabilities $14.7
 Total current assets $28.4
 Long-term debt 30.9
 Property, plant &
 equipment 42.0 Other long-term
 liabilities 20.7
 Other assets 16.5 Stockholders' equity 20.6
 Total assets $86.9 Total liabilities
 and equity $86.9
 -0- 11/15/93
 /CONTACT: Bill Mooney of Sylvan Foods Holdings, 412-295-3910/
 (SYLN)


CO: Sylvan Foods Holdings, Inc. ST: Pennsylvania IN: FOD SU: ERN

CD-KR -- PG008 -- 4424 11/15/93 12:30 EST
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Publication:PR Newswire
Date:Nov 15, 1993
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