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WILLCOX & GIBBS 1992 RESULTS DECLINE

 NEW YORK, March 22 /PRNewswire/ -- John K. Ziegler, chairman of Willcox & Gibbs, Inc. (NYSE: WG) announced that 1992 sales totalled $438.1 million compared with $443.8 million a year ago.
 The company reported a 1992 net loss of $4.9 million, down from a net income of $0.2 million in 1991. The loss per share was .33 cents compared with earnings per share of .02 cents in 1991.
 On Nov. 12, 1992, the company issued approximately 6.3 million shares of Willcox & Gibbs' common stock to Compagnie de Distribution de Material Electrique (CDME) in exchange for approximately $10 million in cash and all of the stock of Southern Electric Supply Company, Inc. (SES), a distributor of electrical parts and supplies. 1992 sales included $14.9 million from SES from mid-November. In connection with this transaction, the company distributed Worldtex, Inc., its covered yarn manufacturing segment, as a dividend to its stockholders during the fourth quarter of 1992. The results of the covered yarn operation are included as discontinued operations in 1992 and 1991. Results for 1992 also included non-recurring charges of $15.3 million for costs incurred in connection with these transactions.
 1992 results also included $5.6 million in charges related to the completion of a two year program to restructure operations, including the disposal of certain operations previously announced that do not match the potential of the company's core businesses. These operations had 1991 sales of $27.3 million and a $4.0 million operating loss. Net income in 1991 included $6.4 million in restructuring charges and an after-tax extraordinary charge of $1.4 million resulting from the redemption of certain long-term debt.
 Excluding the 1992 and 1991 unusual items (transaction costs, restructuring items and extraordinary charge), earnings per share would have been $0.63 and $0.45, respectively, for 1992 and 1991.
 The quarter ended Dec. 31, 1992 had sales of $122.9 million (including the SES sales of $14.9 million) compared with $108.9 million a year ago. The net loss for the quarter was $12.1 million compared to a $2.7 million loss in the same quarter a year ago. Results for the fourth quarter of 1992 include the $15.3 million previously mentioned transaction costs, the $3.9 million of restructuring charges and the unfavorable impact on the company's fourth quarter effective tax rate as a result of these charges. The loss per share is impacted by the issuance of the shares to CDME. The fourth quarter of 1991 included the $6.4 million restructuring charge referred to previously.
 Willcox & Gibbs, Inc. is engaged in the distribution of electrical parts and supplies and the distribution of parts, supplies and equipment to apparel manufacturers.
 WILLCOX & GIBBS, INC.
 (000s omitted)
 Periods ended Year Three months
 Dec. 31 1992 1991 1992 1991
 Net sales $438,057 $443,848 $122,914 $108,920
 Income from continuing
 operations before
 transaction costs,
 restructuring charges,
 taxes and extraordinary
 charge 3,997 1,572 68 503
 Discontinued operations,
 net of taxes 7,174 5,515 1,235 1,843
 Extraordinary charge,
 net of taxes -- 1,436 -- 143
 Net (loss) income (4,875) 248 (12,078) (2,727)
 (Loss) income per common
 and common equivalent
 share ($.33) $.02 ($.70) ($.20)
 Average number of common
 and common equivalent
 shares 14,629 13,711 17,371 13,710
 -0- 3/22/93
 /CONTACT: John Ziegler, chairman of Willcox & Gibbs, 212-869-1800/
 (WG)


CO: Willcox & Gibbs, Inc. ST: New York IN: SU: ERN

AH-WBTS -- NY082 -- 9239 03/22/93 16:31 EST
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Publication:PR Newswire
Date:Mar 22, 1993
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