EAGLE SAYS EXPENSES HURT NET

LISA A. TIBBITTS

MILAN, Ill. -- Eagle Food Centers here said higher expense levels caused reduced operating margins, resulting in a $4.5 million net loss for the first quarter ended April 29.

That compared to a $361,000 net loss the previous year, which included $1.1 million of non-recurring expenses, primarily due to start-up costs of its targeted marketing program.

Net sales for the quarter decreased 1.8% to $245.5 million from $250.1 million. Same-store sales dropped 0.8% for the quarter.

The company said it has signed a commitment letter with Congress Financial Corp., Chicago, for a new $40 million revolving credit facility.

"Effectively, we're moving from a $32 million credit facility to a $40 million facility," said Herbert Dotterer, senior vice president and chief financial officer. "It will replace the existing facility and get us a higher line of credit for the same amount of collateral with less restriction."

In the months ahead, the company will focus on improvements in individual markets, Dotterer told SN.

1ST-QUARTER RESULTS

Qtr Ended 4/29/95 4/30/94

Sales $245.5 million $250.1 million

Change - 1.8%

Same Store - 0.8%

Net Income ($4.5 million) ($361,000)

Inc/Share (41 cents) (3 cents)