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THE KENDALL COMPANY RELEASES QUARTERLY RESULTS

 THE KENDALL COMPANY RELEASES QUARTERLY RESULTS
 MANSFIELD, Mass., Nov. 13 /PRNewswire/ -- The Kendall Company, and


its parent, Kendall International, Inc., released its financial results for the three months ended Sept. 30, 1992, its first quarter since the completion of its financial restructuring effective June 30, 1992.
 Operating income for the three month period was $2.7 million, reflecting a $22.5 million nonrecurring, noncash charge related to a write-up of inventory value at June 30, 1992 required by restructure- related accounting rules. Excluding the nonrecurring charge, operating income for the quarter would have been $25.2 million, an increase of $7.7 million, or 44 percent over the third quarter of 1991.
 Operating results for periods before and after a pre-packaged Chapter 11 restructuring are not comparable due to a different basis of accounting. However, in the case of Kendall's reorganization, the nonrecurring inventory charge was the only material item impacting comparisons of operating profits to pre-restructuring periods.
 Total sales for the three months ended Sept. 30, 1992 were $200.5 million, $2.0 million or 1 percent above the comparable quarter of 1991, a growth rate affected by lower adhesive pipeline product sales to the former Soviet Union. Sales of health care business segment products, which represented 84 percent of consolidated net revenues for the quarter, increased $13 million, or 8.5 percent compared to the same quarter last year, mostly a result of volume gains, while sales in the industrial product segment decreased by $11 million, primarily as a result of lower shipments of adhesive pipeline products.
 The company reported a net loss of approximately $7.1 million or 38 cents per share for the three months ended Sept. 30, 1992, again primarily resulting from the negative operating profit impact of the noncash, nonrecurring inventory charge. Interest expense for the quarter ended Sept. 30, 1992 was approximately $9.8 million, $17.7 million or 64 percent less than the third quarter of 1991.
 Richard A. Gilleland, Kendall's chairman, president and chief executive officer, reported, "We are quite pleased with the quarter's operating results. Sales in our key product categories are exceeding both plan and prior year. Our margins are improving and we continue to reap rewards of cost saving measures adopted in the last two years. Our cash flow since the restructuring has been excellent. In addition to our required debt service, to date we've been able to make voluntary prepayments on our domestic bank term loans of nearly $40 million."
 KENDALL CORPORATION
 Financial Results
 (In Millions Except Per Share Data)
 The following table summarizes the company's operating results, for the three-month period ended Sept. 30, 1992, as well as predecessor periods.
 Successor Predecessor
 Three months ended Three Months Ended
 Sept. 30, 1992 Sept. 30, 1991
 Net sales $200.5 $198.5
 Income from continuing
 operations before
 nonrecurring inventory
 charge,depreciation,
 amortization, interest,
 taxes and reorganization
 items $33.7 $25.8
 Nonrecurring inventory charge 22.5 --
 Depreciation 4.2 4.9
 Amortization of intangibles 4.3 3.4
 Operating income 2.7 17.5
 Interest 9.8 27.5
 Reorganization items --- 1.9
 Income taxes --- 1.1
 Loss from continuing
 operations (7.1) (13.0)
 Extraordinary gain --- ---
 Discontinued operations --- ---
 Net income (loss) (7.1) (13.0)
 Earnings (loss) per share (38 cents) ---
 Predecessor
 Six Months Ended Nine Months Ended
 June 30, 1992 Sept. 30, 1991
 Net sales $381.6 $554.7
 Income from continuing
 operations before
 nonrecurring inventory
 charge, depreciation,
 amortization, interest,
 taxes and reorganization
 items $64.5 $72.1
 Nonrecurring inventory charge --- ---
 Depreciation 11.0 15.8
 Amortization of intangibles 6.3 10.2
 Operating income 47.2 46.1
 Interest 55.8 82.3
 Reorganization items 38.3 4.5
 Income taxes 1.9 3.0
 Loss from continuing
 operations (48.8) (43.7)
 Extraordinary gain 277.3 ---
 Discontinued operations --- 3.4
 Net income (loss) $228.5 $(40.3)
 Earnings (loss) per share --- ---
 The Kendall Company manufactures, markets and distributes disposable medical supplies and devices for the hospital, alternate site health care and home health care markets, as well as adhesive products and tapes for industrial and consumer markets.
 -0- 11/13/92
 /CONTACT: James S. Bacciocco of The Kendall Company, 508-261-8045/ CO: The Kendall Company ST: Massachusetts IN: MTC HEA SU: ERN


CH -- NE008 -- 0796 11/13/92 15:05 EST
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Date:Nov 13, 1992
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