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SMART & FINAL SALES, INCOME UP IN 1ST QUARTER

LOS ANGELES -- Smart & Final here said the acquisition of a Miami-based foodservice distributor helped it increase sales and earnings for the first quarter ended March 26.sales were impacted by heavy rainfall during the quarter, "and they have strengthened in the second quarter as the weather improved," a spokesperson said.Sales at Smart & Final's 148 stores rose 4.5% during the quarter to $190.2

LOS ANGELES -- Smart & Final here said the acquisition of a Miami-based foodservice distributor helped it increase sales and earnings for the first quarter ended March 26.

sales were impacted by heavy rainfall during the quarter, "and they have strengthened in the second quarter as the weather improved," a spokesperson said.

Sales at Smart & Final's 148 stores rose 4.5% during the quarter to $190.2 million, while foodservice distribution sales rose 268.4% to $61.9 million following the acquisition of Henry Lee Co., Miami, during the fourth quarter of 1994.

According to Roger M. Laverty 3rd, president and chief executive officer, "The addition of Henry Lee Co. has brought geographic and seasonal diversification to the company and will facilitate store expansion in Florida later this year.

"We are also very excited about the new state-of-the-art northern California distribution center that commences operations this month."

Costs related to the new distribution center reduced first-quarter earnings by 2 cents per share, Laverty said. The prior year's quarter included a loss of approximately 2 cents per share due to the January 1994, earthquake.

The company said its average comparable transaction size fell 1.1% to $31.63.

Jonathan Ziegler, a securities analyst with Salamon Bros., New York, said he was very impressed with the sales gains at store level, attributing the increases to the 15 new stores the company opened last year.

The small increase in same-store sales was a result of a drop in restaurant dining during periods of heavy rain, Ziegler said.

During the quarter the company opened two new stores in southern California and one in northern California. Another new store opened in Yuba City, Calif., in the northern part of the state just after the end of the first quarter.

1st-QUARTER RESULTS

Qtr Ended 3/26/95 3/27/94

Sales $252.1 million $198.9 million

Change +26.8%

Same store +0.3%

Net Income $3.5 million $2.6 million

Change +34.7%

Inc/Share 17 cents 13 cents