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The following is an excerpt from a S-4/A SEC Filing, filed by FAVORITE BRANDS INTERNATIONAL INC on 12/28/1998.
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FAVORITE BRANDS INTERNATIONAL INC - S-4/A - 19981228 - FINANCIAL_DATA

SELECTED CONSOLIDATED HISTORICAL FINANCIAL DATA

                                  PREDECESSOR(1)                                COMPANY(2)
                          ------------------------------- ---------------------------------------------------------
                           FISCAL   FISCAL     JULY 1,
                            YEAR     YEAR       1995      40 WEEKS  52 WEEKS  52 WEEKS    13 WEEKS      13 WEEKS
                           ENDED    ENDED      THROUGH     ENDED     ENDED     ENDED        ENDED         ENDED
                          JUNE 30, JUNE 30, SEPTEMBER 24, JUNE 29,  JUNE 28,  JUNE 27,  SEPTEMBER 27, SEPTEMBER 26,
                            1994     1995       1995        1996      1997      1998        1997          1998
                          -------- -------- ------------- --------  --------  --------  ------------- -------------
                                                          (DOLLARS IN THOUSANDS)
STATEMENT OF OPERATIONS
 DATA:
Net sales...............  $144,881 $151,488    $36,133    $127,629  $652,538  $763,921    $203,570      $ 196,640
Costs and expenses:
Cost of sales...........    82,600   87,436     20,943      74,289   433,707   493,095     129,407        123,508
 Selling, marketing and
  administrative........    44,376   46,439     10,897      38,110   176,506   237,147      53,827         69,004
 Amortization of
  intangible assets.....       --       --         --        7,454     9,540    13,670       3,061          3,004
 Restructuring and
  business integration
  costs(3)..............       --       --         --          --        --     39,689       3,445          1,047
                          -------- --------    -------    --------  --------  --------    --------      ---------
                           126,976  133,875     31,840     119,853   619,753   783,601     189,740        196,563
                          -------- --------    -------    --------  --------  --------    --------      ---------
Income (loss) from oper-
 ations.................    17,905   17,613      4,293       7,776    32,785   (19,680)     13,830             77
 Interest expense(7)....       --       --         --        8,589    33,463    54,581      12,745         14,577
                          -------- --------    -------    --------  --------  --------    --------      ---------
Income (loss) before
 income taxes,
 extraordinary charge
 and cumulative effect
 of change in accounting
 principle..............    17,905   17,613      4,293        (813)     (678)  (74,261)      1,085        (14,500)
 Provision (benefit) for
  income taxes..........     7,162    7,045      1,717        (305)      960   (27,419)        908         (5,356)
                          -------- --------    -------    --------  --------  --------    --------      ---------
Income (loss) before
 extraordinary charge
 and cumulative effect
 of change in accounting
 principle..............    10,743   10,568      2,576        (508)   (1,638)  (46,842)        177         (9,144)
Extraordinary charge--
 early debt
 extinguishment, net of
 income tax benefit(4)..       --       --         --          --        --      8,591       4,154            --
Cumulative effect of
 change in accounting
 principle, net of
 income tax benefit(5)..       --       --         --          --        --        --          --           2,503
                          -------- --------    -------    --------  --------  --------    --------      ---------
Net income (loss).......  $ 10,743 $ 10,568    $ 2,576    $   (508) $ (1,638) $(55,433)   $ (3,977)     $ (11,647)
                          ======== ========    =======    ========  ========  ========    ========      =========
OTHER FINANCIAL DATA:
Adjusted EBITDA(6)......  $ 20,055 $ 19,813    $ 4,801    $ 17,978  $ 61,874  $ 61,306    $ 27,062      $  11,234
Net cash provided by
 (used in) operating
 activities.............       N/A      N/A        N/A      22,480    32,550    12,559      (2,360)       (30,741)
Net cash used in
 investing activities...       N/A      N/A        N/A    (212,932) (367,209)  (27,313)     (4,662)        (5,592)
Net cash provided by
 financing activities...       N/A      N/A        N/A     191,388   336,900    18,017      17,276         32,467
Depreciation and amorti-
 zation.................     2,150    2,200        508      10,202    29,089    41,297       9,787         10,110
Capital expenditures....     1,900    2,400        692       8,544    31,018    27,010       4,584          5,592
Ratio of earnings to
 fixed charges(7)(8)....       N/A      N/A        N/A         --        --        --          --             --
BALANCE SHEET DATA (END
 OF PERIOD):
Cash and cash equiva-
 lents..................  $    --  $    --     $   --     $    936  $  3,177  $  6,440    $ 13,431      $   2,574
Total assets............    32,500   37,301     26,529     208,692   807,053   809,556     841,946        829,776
Total debt, including
 current portion........       --       --         --      134,800   533,367   557,390     556,898        590,440
Divisional/stockholder's
 equity.................    23,012   33,580     36,156      59,492   176,912   137,745     172,935        126,098


N/A: Not available
(1) The periods ended and as of June 30, 1994, June 30, 1995 and September 24, 1995 reflect the unaudited results of the Predecessor. See "Risk Factors-- Uncertainty of Financial Information Related to the Kraft Business."

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(2) The Company's results of operations for the year ended June 28, 1997 include the results of Farley, Sathers and Kidd from the date of their acquisition on August 30, 1996, the results of Dae Julie from the date of its acquisition on January 27, 1997 and the results of Trolli from the date of its acquisition on April 1, 1997.

(3) The Company recorded restructuring and business integration costs during the year ended June 27, 1998 and the 13 weeks ended September 27, 1997 and September 26, 1998. These include, among other things, charges for impairment of property, plant and equipment, staff consolidation and related costs, incremental freight, distribution and warehousing consolidation expenses and manufacturing integration costs. See "Management's Discussion and Analysis of Financial Condition and Results of Operations" and Note 4 to the Company's Consolidated Financial Statements included elsewhere in this prospectus.

(4) The extraordinary charge relates to the early extinguishment of debt. See Note 10 to the Company's Consolidated Financial Statements included elsewhere in this prospectus.

(5) The cumulative effect of change in accounting principle relates to the Company's adoption of Statement of Position 98-5, "Reporting on the Costs of Start-up Activities" during the first quarter of fiscal 1999. See Note 16 to the Company's Consolidated Financial Statements, included elsewhere in this prospectus.

(6) Adjusted EBITDA is defined as income (loss) from operations before depreciation, amortization of goodwill and other intangibles, and restructuring and business integration costs. The Company believes that Adjusted EBITDA provides useful information regarding the Company's ability to service its debt, and the Company understands that such information is considered by some investors to be an additional basis for evaluating the Company's ability to pay interest and repay debt. Adjusted EBITDA does not, however, represent cash flow from operations as defined by generally accepted accounting principles and should not be considered as a substitute for net income as an indicator of the Company's operating performance or cash flow as a measure of liquidity. Because Adjusted EBITDA is not calculated identically by all companies, the presentation herein may not be comparable to other similarly titled measures of other companies. See the Company's Consolidated Financial Statements, and related notes thereto, included elsewhere in this prospectus.
(7) The Company's cash interest expense with respect to the Senior Subordinated Notes increased by one percent per annum beginning on October 1, 1998. See "Management's Discussion and Analysis of Financial Condition and Results of Operations--Liquidity and Capital Resources."

(8) The ratio of earnings to fixed charges has been calculated by dividing income (loss) before income taxes, extraordinary charge and cumulative effect of change in accounting principle and fixed charges by fixed charges. Fixed charges for this purpose include interest expense, amortization of deferred financing costs and the portion of rent expense deemed to be representative of the interest factor. The earnings described above were insufficient to cover fixed charges by $813 for the 40 weeks ended June 29, 1996, by $678 for the 52 weeks ended June 28, 1997, by $74,261 for the 52 weeks ended June 27, 1998 and by $14,500 for the 13 weeks ended September 26, 1998.

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