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CARR GOTTSTEIN'S SALES DIP IN QUARTER, YEAR-TO-DATE

ANCHORAGE, Alaska -- Carr Gottstein Foods here said last week the decision to shut down a food-service operation and discontinue a wholesaling venture in Russia resulted in lower sales for the third quarter and 39 weeks ended Sept. 28. However, operating cash flow improved for the fourth consecutive quarter. . The company said total sales were affected by its decision to close its YES Foods institutional

ANCHORAGE, Alaska -- Carr Gottstein Foods here said last week the decision to shut down a food-service operation and discontinue a wholesaling venture in Russia resulted in lower sales for the third quarter and 39 weeks ended Sept. 28. However, operating cash flow improved for the fourth consecutive quarter.

. The company said total sales were affected by its decision to close its YES Foods institutional food-service business and discontinue its wholesaling service to a Russian export business.

Operating cash flow -- earnings before interest, taxes, depreciation and amortization -- rose to $12.1 million in the quarter, or 8% of sales, compared with $11.5 million, or 7.3% of sales, a year ago.

For the nine months EBITDA rose to $33.3 million, or 7.5% of sales, compared with $31.7 million, or 6.9% of sales, a year ago -- excluding a onetime pretax charge of $8.9 million in the second quarter for expenses associated with a business restructuring.

Net income for the quarter was $339,000, compared with a net loss of $64,000, which the company said reflected improvements in gross margins coupled with a reduction in operating expenses and lower interest expenses.

3RD-QUARTER RESULTS

Qtr Ended 9/28/97 9/29/96

Sales $152.0 million $158.5 million

Change - 4.1%

Same-store - 2.1%

Net Income $339,000 ($64,000)

Inc/Share 4 cents (1 cent)

39 Weeks 1997 1996

Sales $444.5 million $462.3 million

Change - 3.8%

Same-store- 1.8%

Net Income ($5.8 million) ($2.1 million)

Inc/Share (73 cents) (27 cents)