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THORN APPLE VALLEY REPORTS FY93 FIRST-QUARTER RESULTS: NET INCOME AND EPS DOWN COMPARED TO RECORD YEAR-AGO QUARTER

 THORN APPLE VALLEY REPORTS FY93 FIRST-QUARTER RESULTS:
 NET INCOME AND EPS DOWN COMPARED TO RECORD YEAR-AGO QUARTER
 Company Remains Optimistic to Achieve Record Earnings for Full Year
 SOUTHFIELD, Mich., Oct. 21 /PRNewswire/ -- Thorn Apple Valley (NASDAQ: TAVI) today reported a decline in earnings for its fiscal 1993 first quarter compared to year-ago record levels, but said that it is optimistic of achieving record earnings and earnings per share for its full fiscal year.
 "We are very pleased with the results which were attained in spite of industry-wide weaker margins in fresh meat operations," said Joel Dorfman, president and chief operating officer, in making the announcement. "Our Manufactured Products Division continues to show increases in unit volume and operating earnings, reflecting our continued emphasis on expanding higher-margin premium sales in this segment of our business."
 First-Quarter Financial Highlights
 For the 16 weeks ended Sept. 18, 1992 (Fiscal 1993), net sales dollars decreased 6.9 percent to $221.2 million from $237.6 million for the quarter ended Sept. 20, 1991 (Fiscal 1992). Lower raw material costs resulted in lower sales dollars. Unit volume increased for the period. Operating income, before income taxes, decreased 10.9 percent to $8.0 million from $9.0 million in the year-earlier period.
 Net income for the quarter was $5.2 million compared to $5.8 million for the prior year. Earnings per share, affected by an increase in outstanding shares as a result of a secondary offering, decreased 15.6 percent to $1.35 per share from $1.60 per share.
 Manufactured Products Performs Strongly
 "We are continuing to expand sales of all manufactured products with particular emphasis on premium branded products. These premium products are higher-margin and operating earnings continue to benefit from this focus." This division also benefited from the continued growth of total volume sales.
 As previously announced on June 26, 1992, the company purchased substantially all of the equipment, inventory, materials and supplies of Suzannah Farms, Inc., a producer of consumer packaged and deli cooked hams and related meat products which operated in Pennsauken, N.J. Suzannah Farms had net sales in the year ended Dec. 31, 1991, of approximately $38 million. "During the first quarter we fully integrated their production into our Smoked Meats & Deli Division located in Detroit. The Suzannah Farms products are fitting well into our product line and sales structure," noted Dorfman.
 Fresh Pork Division Update
 Despite lower operating results for the Fresh Pork Division in the first quarter of Fiscal 1993, Dorfman said the division was performing very well relative to the industry. Demand for fresh pork was not adequate relative to the supply and price of hogs to maintain last year's profit margins during this time period.
 The company has begun its expansion and renovation at its Frederick Division slaughter plant, with the first phase to be completed Feb. 1, 1993, and the final phase completed July 1, 1993. "The Frederick renovation will increase the company's slaughter capacity, add to the quality of our product and continue the improvements in our production yields, which will be instrumental in making this segment of our business more profitable in the years ahead," Dorfman said.
 Fiscal 1993 Outlook Remains Strong
 "Looking ahead to the balance of the 1993 fiscal year, we expect profitability at our Manufactured Products Division to continue to increase, primarily as a result of expanded unit volume of all product categories and a higher percentage of premium-branded products. Our Fresh Pork Division, despite occasional periods of lower margins, should continue to show earnings growth over the years.
 "Based on these expectations, as well as the results achieved during fiscal 1992, Thorn Apple Valley is well-positioned to attain record earnings and earnings per share for the current fiscal year."
 Thorn Apple Valley is a major producer of premium consumer packaged meat and poultry products sold to wholesalers, supermarkets, and food service operators, as well as a leading slaughterer of hogs. Common shares of the company are traded on the National Association of Securities Dealers Automated Quotation System over-the-counter market under the symbol TAVI.
 THORN APPLE VALLEY, INC.
 CONSOLIDATED STATEMENT OF INCOME
 (Fiscal 1993 vs. 1992)
 (Unaudited; in thousands except per-share data)
 16 Weeks Ended
 Sept. 18, Sept. 20, Percent
 1992 1991 Change
 Net sales $221,219 $237,595 -6.9
 Operating costs and expenses $212,612 $227,605 -6.6
 Interest expense $565 $964 -41.4
 Income from operations before
 income taxes $8,042 $9,026 -10.9
 Income taxes $2,810 $3,190 -11.9
 Net income $5,232 $5,836 -10.3
 Earnings per share of common stock $1.35 $1.60 -15.6
 Average shares outstanding 3,889 3,655 -6.4
 BALANCE SHEET HIGHLIGHTS
 Current assets $97,786 $93,329 4.8
 Total assets $141,360 $130,602 8.2
 Current liabilities $54,304 $63,751 -14.8
 Long-term debt $7,748 $16,241 -52.3
 Equity $77,885 $48,520 60.5
 Current ratio 1.80 1.46 23.0
 Working capital $43,482 $29,578 47.0
 -0- 10/21/92
 /NOTE: To receive more information on Thorn Apple Valley, at no cost, dial 1-800-PRO-INFO. Use company code 038.
 CONTACT: Louis Glazier, executive vice president, Thorn Apple Valley, 313-552-0700; or Daniel J. Reid, vice president, Financial Relations Board, 312-266-7800, for Thorn Apple Valley/
 (TAVI) CO: Thorn Apple Valley ST: Michigan IN: FOD SU: ERN


JG-SM -- DE024 -- 3093 10/21/92 16:27 EDT
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Date:Oct 21, 1992
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