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WCI HOLDINGS CORP. REPORTS FIRST QUARTER OPERATING INCOME UP 9 PERCENT, ANNOUNCES NAME CHANGE OF SUBSIDIARY

 WCI HOLDINGS CORP. REPORTS FIRST QUARTER
 OPERATING INCOME UP 9 PERCENT, ANNOUNCES NAME CHANGE OF SUBSIDIARY
 SANTA MONICA, Calif., June 2 /PRNewswire/ -- WCI Holdings Corp. today reported operating income of $19.4 million on sales of $548.2 million for the first quarter ended April 25, 1992, compared with operating income of $17.8 million on sales of $507.6 million for the first quarter last year. The 8 percent increase in sales and 9 percent increase in operating income over the prior year are principally the result of performance improvements at the company's Collins & Aikman and Kayser-Roth Hosiery operations. Continuing operations lost $17.7 million compared with a loss of $18.2 million in the first quarter of the prior year. Net loss for the quarter was $17.7 million compared with a net loss of $58.3 million in the first quarter of the prior year. The first quarter of 1991 includes income from discontinued operations of $1.8 million, extraordinary gains on the repurchase of debt of $.4 million and cumulative effect of a change in accounting principle of $42.3 million.
 Separately, the company's wholly owned subsidiary, Wickes Companies Inc., announced that it intends to change its name from Wickes Companies Inc. to Collins & Aikman Group, Inc. The change is expected to be effective July 15, 1992.
 "This name change reflects the achievement of our principal strategic goal of streamlining Wickes down to a group of businesses that are leaders in their respective markets and, accordingly, have the best chance to excel in a low-growth, highly competitive economy. Under Wickes' new ownership there has been a growing identification of Wickes with textile-related businesses and, more particularly, Collins & Aikman, Wickes' largest business with annual sales in excess of $1.2 billion," said James R. Birle, co-chairman and co-chief executive officer of Wickes. Wickes was acquired in December 1988 by WCI Holdings Corp., which is jointly owned by Blackstone Capital Partners L.P. and Wasserstein Perella Partners L.P.
 "We are pleased with the results of our programs established when we acquired Wickes," said Robert B. McKeon, co-chairman and co-chief executive officer of Wickes. "The restructuring actions and cost- reduction programs coupled with the divestiture program and debt buyback efforts that took place," he continued, "allow us now to focus more narrowly on our remaining core businesses, Collins & Aikman, Kayser-Roth Hosiery and Builders Emporium. The timing of this name change coincides nicely, we believe, with this focus."
 Wickes Companies Inc. is a broad-based specialty manufacturing and retailing company whose businesses serve the automotive and industrial products, home improvement and wallcoverings and textiles markets.
 WCI HOLDINGS CORP.
 Financial Highlights
 (unaudited)
 13 weeks ended
 April 25, 1992 April 27, 1991
 Net sales $548,167,000 $507,615,000
 Operating income $19,436,000 $17,800,000
 Interest expense, net (a) (32,969,000) (32,970,000)
 Dividends on preferred stock
 of subsidiary (1,129,000) (1,129,000)
 Income (loss) from continuing
 operations, before income
 taxes (14,662,000) (16,299,000)
 Income taxes 2,993,000 1,885,000
 Income (loss) from continuing
 operations (17,655,000) (18,184,000)
 Income from discontinued
 operations, net of
 income taxes --- 1,766,000
 Income (loss) before
 extraordinary item (17,655,000) (16,418,000)
 Extraordinary item, net of
 income taxes (b) --- 441,000
 Cumulative effect on prior years
 (to Jan. 26, 1991) of change in
 accounting principle (c) --- (42,316,000)
 Net income (loss) ($17,655,000) ($58,293,000)
 (a) Interest expense is net of interest income of $1.2 million and $2.9 million for the quarters ended April 25, 1992 and April 27, 1991, respectively. Interest expense has been allocated to discontinued operations based on the ratio of net assets of discontinued operations to consolidated invested capital. Interest allocated was $1.0 million for the quarter ended April 27, 1991. No amounts were allocated in 1992.
 (b) Extraordinary item represents gains on retirement of indebtedness.
 (c) Represents cumulative adjustment for change to the accrual basis of accounting for postretirement benefits in accordance with Statement of Financial Accounting Standards No. 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions."
 -0- 6/2/92
 /CONTACT: Michael A. Jamieson of Wickes Companies, 310-452-0161; or Michael Sitrick of Sitrick & Co., 310-788-2850, for Wickes Companies/ CO: WCI Holdings Corp. ST: California IN: REA TEX SU: ERN


KJ-CH -- LA013 -- 6430 06/02/92 18:10 EDT
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Date:Jun 2, 1992
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