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WARNACO REPORTS GAINS IN FIRST QUARTER OPERATING INCOME AND NET REVENUES

WARNACO REPORTS GAINS IN FIRST QUARTER OPERATING INCOME AND NET REVENUES
 NEW YORK, April 28 /PRNewswire/ -- The Warnaco Group, Inc. (NYSE: WAC), a leading designer, manufacturer and marketer of women's intimate apparel and men's shirts, sportswear and accessories, today reported a 15.3 percent increase in operating income on a 7.5 percent gain in net revenues for its first quarter of 1992.
 Net revenues for the first quarter ended April 4, 1992 increased to $130.5 million from $121.4 million for the comparable first quarter of 1991. Operating income was $20.7 million compared to $17.9 million in the first quarter of 1991.
 EBITDA for the first quarter of 1992 was $25.5 million, an increase of 11.0 percent from EBITDA of $23.0 million in the first quarter of 1991.
 The company's income from continuing operations applicable to common stockholders was $3.0 million or $.20 per share on a weighted average of 15.1 million shares outstanding compared to a loss of $1.0 million or a loss of $.13 per share on a weighted average of 7.9 million shares outstanding.
 Linda Wachner, chairman, president and chief executive officer stated that "The company's strong performance in the first quarter reflected revenue gains from all of Warnaco's divisions. Moreover, the profit increases also reflect higher gross margins as well as the revenue increases. We are especially pleased with our continued ability to generate increased sales and earnings in such a difficult economic climate."
 As stated in the prospectus dated March 26, 1992, as a result of the early retirement of debt and preferred stock, the company has accrued $46.5 million as an extraordinary one-time charge in the first quarter of 1992 representing $30.8 million of redemption premiums and $15.7 million non-cash write-offs of deferred financing costs associated with the refinancing. Net loss applicable to common stockholders after the extraordinary one-time charge was $43.4 million or $2.87 per share in the 1992 quarter compared to $1.4 million or $.17 per share in the 1991 quarter.
 As previously announced, the company successfully completed its common stock offering of 5 million shares and its senior debt refinancing on April 2, 1992. As part of that recapitalization, the company has called for early redemption on May 1, 1992 approximately $230 million of its high yield debt and redeemable preferred stock. The entire recapitalization will result in an annual savings of approximately $28 million in interest and preferred stock dividends.
 THE WARNACO GROUP, INC.
 Consolidated Statements of Operations
 First Quarter
 Quarter Ended: April 4 April 6 Percent
 1992 1991 Inc/(Dec)
 Net revenues $130,518 $121,447 7.5
 Cost of goods sold 81,256 78,553
 Gross profit 49,262 42,894
 Selling, general and admin. 28,601 24,969
 EBIT 20,661 17,925 15.3
 EBIT as a percent of sales 15.8 14.8
 Amortization and depreciation 4,862 5,073
 EBITDA 25,523 22,998 11.0
 EBITDA as percent of sales 19.6 18.9
 Operating income 20,661 17,925
 Interest expense 15,737 17,131
 Income (loss) from continuing
 operations before income taxes 4,924 794
 Provision for income taxes 509 425
 Income (loss) from cont. opers. 4,415 369
 Extraordinary item (46,454)(A) --
 Income (loss) from discont. opers. -- (353)
 Net income (loss) (42,039) 16
 Preferred dividend (1,375) (1,375)
 Net income (loss) to common (43,414) 1,359
 Net income (loss) applicable to
 common stock
 Continuing operations 3,040 (1,006)
 Total operations (43,414) (1,359)
 Earnings per share:
 Continuing operations $ 0.20 $(0.13)
 Total operations $(2.87) $(0.17)
 Weighted average number of
 common shares outstanding 15,140 7,867
 (A) -- Represents extraordinary charges in connection with the applicable of net proceeds from the 1992 stock offering and the 1992 senior financing.
 -0- 4/28/92
 /CONTACT: William Finkelstein, 212-370-8287, or Linda Wachner, 212-370-8204, both of Warnaco, or Lawrence Rand of Kekst & Co., 212-593-2655, for Warnaco/
 (WAC) CO: Warnaco Group Inc. ST: New York IN: TEX SU: ERN


TS-HM -- NY034 -- 3682 04/28/92 10:46 EDT
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Publication:PR Newswire
Date:Apr 28, 1992
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