CASH-FLOW MARGIN IMPROVES IN SEAWAY'S THIRD QUARTER

MAUMEE, Ohio -- Seaway Food Town here said its cash-flow margin improved in the third quarter ended May 28, despite a sales decline of 3.9%.

arter.

Operating cash flow (or net income plus taxes, interest expense, depreciation and an inventory charge) totaled $5.8 million, or 4.22% of sales, in the third quarter. This compared with cash flow of $3.8 million, or 2.67% of sales, in last year's third quarter.

The company said its improved operating results were due to slightly higher gross margins and lower expenses. Net income also increased significantly in the quarter, due in part to a one-time charge against earnings in last year's third quarter. Net totaled $893,000 in the recent quarter.

Income in the current quarter included an extraordinary charge of $70,000 related to early retirement of debt, while the year-ago total included a $736,000 charge related to the closing of one store and a bakery facility.

3rd-QUARTER RESULTS

Qtr. Ended 5/28/94 5/29/93

Sales $136.2 million $141.7 million

Change -3.9%

Same-store -4%

Net Income $893,000 $30,000

Inc/Share 39 cents 1 cent

39 Weeks 1994 1993

Sales $408.1 million $430.6 million

Change -5.2%

Same-store -4.8%

Net Income $1.4 million $1.6 million

Change -17.1%