TCR_Public/970124.MBX




InterNet Bankruptcy Library - News for January 24, 1997






Bankruptcy News For January
24, 1997



  1. Morrison Knudsen Posts $5.6 Million Fourth Quarter Profit

  2. Advanced Promotion Technologies secures short-term
    financing

  3. In-Flight Phone Corporation Files Petition to Reorganize
    Under Chapter 11 of the U.S. Bankruptcy Code

  4. MCI Statement on In-Flight Filing Chapter 11

  5. Wellspring Associates Will Acquire SLM International,
    Manufacturer of CCM Hockey Equipment

  6. Black & Decker Reports Record Results in 1996

  7. KinderCare Announces Second Quarter Results




Morrison Knudsen Posts $5.6 Million Fourth Quarter Profit


BOISE, Idaho, Jan. 24, 1997 - Morrison Knudsen Corporation
(NYSE: MK) today announced its operating results for the fourth
quarter ended November 30, 1996. On September 11, 1996
Morrison Knudsen and Washington Construction Group, Inc.
merged and the combined company was renamed Morrison
Knudsen Corporation. The results announced today combine those
of the former Washington Construction Group from December 1,
1995 to November 30, 1996 and those of Morrison Knudsen from
September 12, 1996 to November 30, 1996.


For the quarter ended November 30, 1996, MK posted net income
of $5.6 million, $.11 per share, on revenue of $416.7 million
compared to net income of $2.9 million, $.10 per share, on
revenue of $68.3 million for the fourth quarter of 1995. Operating
income in the fourth quarter was $9.8 million compared to
operating income of $3.2 million for the fourth quarter of 1995.


"We are very pleased with our operating results in the fourth
quarter," said Robert A. Tinstman, MK president and chief
executive officer. "We ended the year in a strong financial position
and with our recent major new work bookings, we are well
positioned for the future."


Tinstman noted that Morrison Knudsen ended its fiscal year debt
free and with a net worth in excess of $300 million, unlimited
bonding capacity and a $200 million line of credit. Backlog of
uncompleted contracts at November 30, 1996 was $3.5 billion. In
addition to $200 million in new work booked in the fourth quarter
of the company's fiscal year, major new contracts in the first month
of the new fiscal year include two awards anticipated to provide
approximately $500 million in revenue: the Idaho National
Engineering Laboratory's Advanced Mixed Waste Treatment
Facility and a chemical demilitarization project in Russia.


The Company said that after-tax adjustments of $11.4 million in
the third quarter for write-downs on certain real estate properties
and other non-core assets held for sale resulted in a net loss for the
twelve months ended November 30, 1996 of $4.8 million, $.14 per
share, on revenue of $659.1 million compared to net income of
$8.2 million, $.28 per share, on revenue of $228.5 million for
1995.


MK also announced that the Company's annual meeting of
shareholders will be held on April 11, 1997 at 10:00 a.m. at MK's
world headquarters in Boise, Idaho.


Morrison Knudsen Corporation, founded in 1912, serves the
world's environmental, industrial, mining, operations and
maintenance, process, power, transportation and heavy
construction markets as an engineer and constructor.


                             MORRISON KNUDSEN CORPORATION
                    (formerly Washington Construction Group, Inc.)
                       CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS THREE
        AND TWELVE MONTH PERIODS ENDED NOVEMBER 30, 1996 AND 1995
        (UNAUDITED)
        

                         (In thousands except per share data)
        

                                           Three Months Ended     Twelve
        Months Ended
        

                                          November 30,            November 30,
                                      1996          1995        1996      1995
        

        Revenue                    $416,651       $68,275     $659,100  $228,537
            Cost of revenue            (397,617)      (61,040)    (625,756)
        (204,424)
        

        Gross profit                 19,034         7,235       33,344    24,113
        General and administrative
             expenses                    (8,421)       (3,974)     (21,074)
        (15,767)
        

        Losses for impairment of
         long-lived assets               --            --      (18,200)       --
        Reorganization expense           --            --       (1,500)       --
            Goodwill amortization          (769)         (105)      (1,164)
        (420)
        

        Operating income (loss)       9,844         3,156       (8,594)    7,926
        Investment income             1,467           979        3,679     4,061
            Interest expense               (429)         (124)        (993)
        (189)
        

        Other income, net               562           106          634       389
        Income (loss) before income
         taxes                       11,444         4,117       (5,274)   12,187
        Income tax (expense)
             benefit                     (5,828)       (1,197)         494
        (4,022)
        

        Net income (loss)         $   5,616     $   2,920    $  (4,780)  $ 8,165
        Income (loss) per share
         of common stock               $.11          $.10        $(.14)     $.28
        Common shares used to
         compute income (loss) per
          share                      50,889        29,478        34,821   29,478
        

                                                                November 30,
                                                            1996          1995
        

        Backlog                                         $3,519,700      $286,400
        

SOURCE Morrison Knudsen Corp./CONTACT: Brent D.
Brandon, V.P. Corporate Communications of Morrison Knudsen
Corp., 208-386-6611, or fax, 208-386-5065/




Advanced Promotion Technologies secures short-term financing


POMPANO BEACH, Fla.--Jan. 24, 1997--Advanced Promotion
Technologies Inc.
(NASDAQ:APTV), developer and marketer of
the Vision Value(tm) electronic marketing and financial services
network, Friday confirmed that it has secured its first external
funding since it filed Chapter 11 on Aug. 15, 1996.


Advanced Promotion Technologies Inc. received approval from its
Official Committee of Unsecured Creditors and the Bankruptcy
Court to accept post-petition financing from a group of existing
investors. The company has received financing of $200,000 with
the potential of an additional $200,000 within the next 15 days.
The loan allows the company to continue operations in the near
term while it pursues additional financing and develops its plan of
reorganization.


The company, the Creditor's Committee and the lender have also
reached an agreement in principle relative to the terms of the
reorganization plan. The plan of reorganization is not finalized,
although the parties foresee that the interests of existing common
shareholders will, in all likelihood, be extinguished if the
proposed plan is confirmed. Preferred shareholders may retain an
interest in the company if the plan is approved although the terms
of their participation, if any, have not been finalized.


Advanced Promotion Technologies provides merchandising
software and services to supermarkets for in-store promotion,
financial services and target marketing through its Vision Value
Network. The Vision Value Network is an interactive on-line
electronic loyalty marketing network linked to existing
point-of-sale scanning equipment in the supermarket checkout lane.
Shopper data is collected and analyzed so that future shopping
behavior may be changed based upon reward during and after the
shopping experience. The ability to change shopping behavior
offers a dramatic improvement to profits through increased
purchase of high margin products and greater shopper loyalty to
the retailer.


CONTACT: Advanced Promotion Technologies Inc., Pompano
Beach Mike Shanahan, 954/969-3000 http://www.apt.com




In-Flight Phone Corporation Files Petition to Reorganize Under
Chapter 11 of the U.S. Bankruptcy Code


OAKBROOK TERRACE, Ill., Jan. 24, 1997 - In-Flight Phone
Corporation
("IFPC"), a wholly-owned subsidiary of IFP
Holdings, Inc., today filed a petition to reorganize under chapter
11 of the United States Bankruptcy Code in the United States
Bankruptcy Court for the District of Delaware. IFPC has also
entered into an interim Service Agreement with MCI
Telecommunications Corporation ("MCI") under which IFPC will
receive sufficient funds from MCI to continue its normal
operations for 45 days. IFPC anticipates that post- interim funding
will be available and IFPC is in discussions to conclude the
necessary arrangements for the post-interim period. MCI, the
nation's second largest long distance carrier, through its interests
in IFP Holdings, Inc., owns approximately 66% of IFPC on a fully
diluted basis.


IFPC, founded in 1990, is headquartered in Oakbrook Terrace,
Illinois, and is a leading supplier and developer of air-to-ground
telecommunications, information and entertainment systems. IFPC
pioneered and developed "FlightLink," the first airborne system to
combine digital phone service with an interactive screen-based
information and entertainment system.


FlightLink comes with a video display monitor, individual
controls and a telephone at each seat, in both coach and first class.
With FlightLink you can do anything from checking your e- mail to
playing video games. This system allows you to check stock
quotes, access AccuWeather; play video games; make plane and
limo reservations; or even send flowers.


IFPC is in the final stages of development of its LiveTV system,
which would provide 12 to 24 channels of live television
programming to every seat on each airplane installed with this
modified FlightLink system.


SOURCE In-Flight Phone Corporation  /CONTACT: Neal Meehan
of In-Flight Phone Corporation, 630-573-2660/




MCI Statement on In-Flight Filing Chapter 11


WASHINGTON, DC - Jan. 24, 1997 - The following is a
statement by MCI on In-Flight filing Chapter 11:


MCI, which is a minority shareholder of In-Flight Phone
Corporation's parent, confirms In-Flight's filing for relief under
Chapter 11 today. Since its initial investments, MCI has not
invested nor does it intend to invest further equity or debt in In-
Flight.


SOURCE MCI Communications  /CONTACT: MCI News Bureau,
800-644-NEWS/




Wellspring Associates Will Acquire SLM International,
Manufacturer of CCM Hockey Equipment


NEW YORK, NY - Jan. 24, 1997 - Wellspring Associates L.L.C.
today announced that it will acquire a majority of the equity of
SLM International, Inc., a leading manufacturer and marketer of ice
and roller hockey equipment, primarily under the CCM brand
name. The acquisition follows the confirmation late yesterday of
SLM's Chapter 11 plan of reorganization. Financial terms of the
transaction were not disclosed.


Greg S. Feldman, a managing partner of Wellspring Associates,
said: "SLM International is an outstanding acquisition for
Wellspring. Its CCM brand is the most widely-recognized name in
hockey equipment. Ice and roller hockey are two of the fastest
growing sports in North America. The Company's potential to
appreciate dramatically as a result of new management is
consistent with our investment strategy. We look forward to
working closely with the new management team headed by Gerry
Wasserman to rebuild the Company and grow the CCM brand in
order to realize its full potential as an industry leader."


Gerald B. Wasserman was recruited as chief executive officer of
SLM during the Company's Chapter 11 proceedings. Mr.
Wasserman was most recently chief executive officer of Weider
Health and Fitness. Prior to that, he served as chief executive
officer of Canstar Sports, a competitor of SLM, which was
purchased by Nike Inc. in 1994.


The SLM transaction is Wellspring's second acquisition. In
October 1995, Wellspring acquired Lionel, the world's leading
manufacturer and marketer of model electric trains.


Wellspring was instrumental in facilitating SLM's plan of
reorganization in conjunction with the Company's unsecured
creditors, who will now become minority shareholders.


Wellspring Associates L.L.C. is a privately-held investment firm
founded by Martin S. Davis and Greg S. Feldman with the
objective of acquiring controlling interests in undermanaged or
underperforming companies that present opportunity for substantial
long-term capital gains.


SLM International, Inc. manufactures and markets hockey products,
including skates, uniforms, protective equipment and licensed
apparel, primarily under the CCM brand name.


SOURCE Wellspring Associates /CONTACT: Mark A. Semer of
Kekst and Company, 212-593-2655/





Black & Decker Reports Record Results in 1996


TOWSON, Md., Jan. 24, 1997 - The Black & Decker Corporation
(NYSE: BDK) today announced record sales and earnings for
1996. Sales increased 3 percent (4 percent, excluding the effects
of foreign currency translation) to $4.91 billion from $4.77 billion
in 1995. Excluding non-recurring items, net earnings for the year
were $223.4 million compared to $189.9 million in 1995, and
earnings per share rose 15 percent to $2.32 from $2.01 in 1995.
On a fully comparable basis, i.e., excluding net results from the
discontinued PRC segment, earnings per share, excluding non-
recurring items, increased more than 20%.


Net debt decreased $653.3 million in 1996, reflecting the
proceeds from the sale of PRC Inc. and $235 million of free cash
flow. This debt reduction, coupled with the earnings improvement,
resulted in an eleven percentage-point reduction in debt to total
capitalization from 62 percent at the end of 1995 to 51 percent at
the end of 1996.


For the fourth quarter of 1996, sales increased 1 percent (2
percent, excluding the effects of foreign currency translation) to
$1.45 billion from $1.44 billion in the same period last year.
Excluding non-recurring items, net income was $87.8 million or
91 cents per share compared to $85.9 million or 90 cents per share
in 1995.


Including both non-recurring credits and charges and the results of
discontinued operations, net earnings for the full year were $229.6
million or $2.38 per share compared to $224.0 million or $2.37
per share in 1995. On the same basis, fourth quarter net earnings
were $90.6 million or 94 cents per share compared to $120.0
million or $1.26 per share in 1995. Non-recurring credits and
charges that affected 1996 income include:


- Net gain on the sale of PRC Inc. of $70.4 million (73 cents per
share), recorded in the first quarter;


- After-tax restructuring charges of $67.0 million (70 cents per
share) recorded in the first quarter, and $7.8 million (8 cents per
share) recorded in the fourth quarter (the full-year impact of
restructuring charges was 78 cents per share); and


- A non-cash tax credit of $10.6 million (11 cents per share for the
full year), recorded in the fourth quarter, associated with an
adjustment of the corporation's deferred tax asset valuation
allowance.


Commenting on the results, Nolan D. Archibald, chairman and
chief executive officer, said, "Sales for 1996 reached a record
level, reflecting more new product introductions than ever before.
As a result, most of our businesses strengthened their market
positions during the year. Earnings per share, excluding
non-recurring items, also set a new high, increasing 15 percent
over 1995, or more than 20 percent if the net contribution of PRC,
which has been sold, is excluded from 1995 results. Security
Hardware achieved record sales and profits for the year. Plumbing
Products, Fastening and Assembly Systems, Glass
Container-Forming and Inspection Equipment, and Recreational
Products also reported excellent results.


"While the combined Power Tools and Accessories business
achieved record sales, profitability declined, largely because of
manufacturing start-up costs, aggressive inventory reduction,
higher transportation costs, and selective price reductions.
Household Products reported a decline in sales and profits
compared to a very strong 1995, when the supply of
SnakeLight(TM) flexible flashlights still trailed the enormous
demand for this product line. SnakeLight price reductions in the
second half of 1996 had a significant impact on these declines.
Lower profitability in Power Tools and Accessories and in
Household Products was more than offset by the excellent
performance of all of our other businesses. In addition, both lower
interest expense, reflecting reduced debt, and a lower tax rate
improved our earnings.


"Excluding restructuring charges, operating income increased 5
percent for the year, reflecting lower selling, general and
administrative expense that more than offset a decline in gross
margin as a percentage of sales. Our return on sales, which
improved modestly over 1995, was affected by the issues that we
encountered in Power Tools and Accessories and in Household
Products.


"While manufacturing start-up costs and production delays
penalized us in 1996, manufacturing is now running much more
smoothly. Our cost base is significantly improved, and in 1997 we
expect to realize $30 million in benefits from restructuring actions
that we have taken in addition to the $10 million realized in 1996.


"With our businesses continuing to introduce a large number of
new products and operating at higher efficiency levels, we hope to
achieve a significant increase in pre-tax earnings in 1997. Having
used substantially all remaining benefits of our deferred tax assets,
however, our tax rate will rise from the mid-20 percent range in
1996 to the high-30 percent range. As a result, earnings per share
are likely to increase at a lower rate during this 'transition' year.


"Looking ahead, we remain confident about the fundamental
strength of each of our businesses and optimistic about the
prospects for a substantial growth in operating profitability over
the next several years."


Black & Decker is a global marketer and manufacturer of quality
products used in and around the home and for commercial
applications.


                   THE BLACK & DECKER CORPORATION AND
                   SUBSIDIARIES
                    CONSOLIDATED STATEMENT OF EARNINGS
                    (Unaudited) (Dollars in Millions Except
                    Per Share Amounts)

                                               Three Months
                                               Ended
                                          Dec. 31,           
                                          Dec. 31,
                                            1996              
                                             1995

        SALES                            $1,454.8           
        $1,440.4
          Cost of goods sold                947.1             
           913.2 Selling, general, and
           administrative expenses          366.1             
            378.7
          Restructuring costs                 9.7             
               -

        OPERATING INCOME                    131.9             
         148.5
          Interest expense
           (net of interest income)          29.1             
             42.4
          Other expense                       4.3             
             3.8

        EARNINGS FROM CONTINUING
         OPERATIONS BEFORE INCOME TAXES      98.5             
          102.3
          Income tax expense (benefit)        7.9             
          (34.7)

        EARNINGS FROM CONTINUING
         OPERATIONS                          90.6             
          137.0
          Earnings from discontinued
           operations (net of income taxes of
           $.6 for 1995)                        -             
             13.9

        EARNINGS BEFORE EXTRAORDINARY
         ITEM                                90.6             
          150.9
          Extraordinary loss from early
           extinguishment of debt
           (net of income
           tax benefit of $2.6)                 -             
           (30.9)

        NET EARNINGS                        $90.6             
        $120.0

        NET EARNINGS APPLICABLE
         TO COMMON SHARES                   $90.2             
         $117.1

        NET EARNINGS PER COMMON AND COMMON
         EQUIVALENT SHARE:
           PRIMARY:
             Earnings from continuing
              operations                     $.94             
               $1.51
             Earnings from discontinued
              operations                        -             
                0.16
             Extraordinary loss from early
              extinguishment of debt            -             
              (0.35)
               PRIMARY EARNINGS PER SHARE    $.94             
                $1.32
             Shares Used in Computing
              Primary Earnings
               Per Share (in Millions)       95.5             
                 89.0

           ASSUMING FULL DILUTION:
             Earnings from continuing
              operations                     $.94             
               $1.43
             Earnings from discontinued
              operations                        -             
                0.15
             Extraordinary loss from early
              extinguishment of debt            -             
              (0.32)
               FULLY DILUTED EARNINGS
                 PER SHARE                   $.94             
                  $1.26
             Shares Used in Computing Fully
              Diluted Earnings Per Share
               (in Millions)                 96.5             
                 95.4

                      THE BLACK & DECKER CORPORATION AND
                      SUBSIDIARIES
                            CONSOLIDATED STATEMENT OF EARNINGS
                      (Dollars in Millions Except Per Share
                      Amounts)

                                                   Year Ended
                                          Dec. 31,          
                                          Dec. 31,
                                            1996              
                                            1995

        SALES                            $4,914.4           
        $4,766.1
          Cost of goods sold              3,156.6            
          3,016.7 Selling, general, and
           administrative expenses        1,309.6            
           1,323.3
          Restructuring costs                91.3             
               -

        OPERATING INCOME                    356.9             
         426.1
          Interest expense
           (net of interest income)         135.4             
            184.4
          Other expense                      18.8             
            16.2

        EARNINGS FROM CONTINUING
         OPERATIONS BEFORE INCOME TAXES     202.7             
          225.5
           Income taxes                      43.5             
              9.0

        EARNINGS FROM CONTINUING

         OPERATIONS                         159.2             
          216.5
          Earnings from discontinued
           operations (net of income
           taxes of $55.6 for 1996
           and $8.7 for 1995)                70.4             
             38.4

        EARNINGS BEFORE EXTRAORDINARY
         ITEM                               229.6             
          254.9 Extraordinary loss from early
          extinguishment of debt
           (net of income tax
           benefit of $2.6)                     -             
           (30.9)

        NET EARNINGS                       $229.6             
        $224.0

        NET EARNINGS APPLICABLE
         TO COMMON SHARES                  $220.5             
         $212.4

        NET EARNINGS PER COMMON AND COMMON
         EQUIVALENT SHARE:
           PRIMARY:
             Earnings from continuing
              operations                    $1.64             
               $2.33
             Earnings from discontinued
              operations                     0.77             
                0.44
             Extraordinary loss from early
              extinguishment of debt            -             
              (0.35)
                PRIMARY EARNINGS PER SHARE  $2.41             
                 $2.42
             Shares Used in Computing
              Primary Earnings Per Share
               (in Millions)                 91.3             
                 87.9

           ASSUMING FULL DILUTION:
             Earnings from continuing
              operations                    $1.65             
               $2.29
             Earnings from discontinued
              operations                     0.73             
                0.41
             Extraordinary loss from early
              extinguishment of debt            -             
              (0.33)
                FULLY DILUTED EARNINGS
                 PER SHARE                  $2.38             
                  $2.37
             Shares Used in Computing Fully
              Diluted Earnings Per Share
               (in Millions)                 96.3             
                 94.7

                     THE BLACK & DECKER CORPORATION AND
                     SUBSIDIARIES
                                CONSOLIDATED BALANCE SHEET
                                   (Millions of Dollars)

                                          Dec. 31,          
                                          Dec. 31,
                                            1996              
                                             1995
        ASSETS
          Cash and cash equivalents        $141.8             
          $131.6 Trade receivables                 672.4      
                  651.3 Inventories                      
          747.8               855.7 Net assets of
           discontinued operations              -             
            302.4
          Other current assets              242.2             
           165.6
            TOTAL CURRENT ASSETS          1,804.2            
            2,106.6

        PROPERTY, PLANT AND EQUIPMENT       905.8             
         866.8 GOODWILL                          2,012.2      
              2,142.0 OTHER ASSETS                       
        431.3               429.9

                                         $5,153.5           
                                         $5,545.3

        LIABILITIES AND STOCKHOLDERS' EQUITY
          Short-term borrowings            $235.9             
          $599.2 Current maturities
           of long-term debt                 54.1             
             48.0
          Trade accounts payable            380.7             
           396.7 Other accrued liabilities         835.9      
                  743.0
            TOTAL CURRENT LIABILITIES     1,506.6            
            1,786.9

        LONG-TERM DEBT                    1,415.8            
        1,704.5 DEFERRED INCOME TAXES                67.5     
                  52.8 POSTRETIREMENT BENEFITS            
        310.3               307.8 OTHER LONG-TERM LIABILITIES
               220.9               270.1 STOCKHOLDERS' EQUITY
                    1,632.4             1,423.2

                                         $5,153.5           
                                         $5,545.3

                            SUPPLEMENTAL FINANCIAL INFORMATION
                                   (Millions of Dollars)

                                               Year Ended Dec.
                                               31,
                                            1996              
                                             1995

        Depreciation and amortization      $214.6             
        $206.7

        Capital expenditures --
         cash spending                     $196.3             
         $203.1

                   THE BLACK & DECKER CORPORATION AND
                   SUBSIDIARIES
                         THREE MONTHS ENDED DECEMBER 31, 1996
                ANALYSIS OF CHANGES IN SALES OF CONTINUING
                OPERATIONS
                               (in millions of dollars)

                                United
        CONSUMER                States        Europe        
        Other       Total

        Total Sales             $767.9        $319.6      
        $185.2      $1,272.7 Unit Volume                5 %   
               3 %          2 %           4 % Price           
                 (3)%          (1)%          2 %          (1)%
        Currency                   - %          (3)%        
        (1)%          (1)%
                                   2 %          (1)%         
                                   3 %           2 %
        ------------------------------------------------------
        ---------- COMMERCIAL

        Total Sales            $70.4         $80.7        
        $31.0       $182.1 Unit Volume               11 %     
           (11)%         (4)%          (2)% Price             
                1 %           2 %          - %           1 %
        Currency                   - %          (3)%        
        (6)%          (3)%
                                  12 %         (12)%       
                                  (10)%          (4)%
        ------------------------------------------------------
        ---------- CONSOLIDATED

        Total Sales             $838.3        $400.3      
        $216.2      $1,454.8 Unit Volume                6 %   
               - %          1 %           3 % Price           
                 (3)%           - %          2 %          (1)%
        Currency                   - %          (3)%        
        (2)%          (1)%
                                   3 %          (3)%         
                                   1 %           1 %
        ------------------------------------------------------
        ----------

                     THE BLACK & DECKER CORPORATION AND
                     SUBSIDIARIES
                               YEAR ENDED DECEMBER 31, 1996
                  ANALYSIS OF CHANGES IN SALES OF CONTINUING
                  OPERATIONS

                                 (in millions of dollars)

                                United
        CONSUMER                States        Europe       
        Other         Total

        Total Sales         $2,458.9     $ 1,158.2       
        $594.9     $4,212.0 Unit Volume                8 %    
              - %          - %           5 % Price            
                (1)%          (1)%          3 %          (1)%
        Currency                   - %          (2)%        
        (1)%          (1)%
                                   7 %          (3)%         
                                   2 %           3 %
        ------------------------------------------------------
        ---------- COMMERCIAL

        Total Sales           $267.2        $308.6       
        $126.6       $702.4 Unit Volume                4 %    
              2 %         10 %           4 % Price            
                 1 %           1 %          - %           1 %
        Currency                   - %          (3)%       
        (11)%          (3)%
                                   5 %           - %        
                                   (1)%           2 %
        ------------------------------------------------------
        ---------- CONSOLIDATED

        Total Sales          $2,726.1      $1,466.8       
        $721.5     $4,914.4 Unit Volume                8 %    
              - %          2 %           5 % Price            
                (1)%           - %          3 %          (1)%
        Currency                   - %          (2)%        
        (3)%          (1)%
                                   7 %          (2)%         
                                   2 %           3 %

SOURCE Black & Decker Corporation/CONTACT: Barbara B.
Lucas, senior v.p.-public affairs, 410-716-2980, or F. Robert
Hunter, director-investor relations, 410-716-3979, both of Black
& Decker/ /Black & Decker press releases available through
Company News On-Call by fax, 800-758-5804, ext. BDKFAX or
235329, or at http://www.prnewswire.com/





KinderCare Announces Second Quarter Results


MONTGOMERY, Ala., Jan. 24, 1997 - KinderCare Learning
Centers, Inc. (Nasdaq: KCLC), the nation's largest child care
company, announced that operating revenues increased $4.2
million, or 3.4%, to $128.3 million second quarter 1997 and $14.4
million, or 5.0%, to $299.8 million year-to-date 1997 versus the
comparable periods in 1996. The increase in revenues is
attributable to 4.7% and 4.2% weighted average tuition increases
implemented during the second quarter of fiscal 1997 and 1996,
respectively, and new centers opened or acquired during fiscal
1996 and first quarter 1997. These revenue increases were
partially offset by center closings during fiscal 1996 and first
quarter 1997 and declines in total company average occupancy in
second quarter 1997 and year-to- date 1997. Same center
revenues, defined as revenues from centers in operation during
both full periods, were up 1.2% over second quarter 1996, and up
2.9% over year-to-date 1996. Same center revenue increases
associated with the tuition increases for both second quarter 1997
and year-to-date 1997 were partially offset by same center
occupancy declines during second quarter 1997.


Total company average occupancy decreased to 72.9% second
quarter 1997 from 75.3% second quarter 1996 and to 74.2%
year-to- date 1997 from 75.6% year-to-date 1996. Same center
occupancy also decreased to 73.4% second quarter 1997 from
75.9% second quarter 1996 and to 74.8% year-to-date 1997 from
76.2% year-to-date 1996. The Company believes these declines in
occupancy were caused by a variety of factors, including in
particular, the following recently implemented initiatives: (a) a
reduced, lower cost marketing program, (b) an expanded employee
childcare discount program that may preclude the enrollment of
tuition paying children, and (c) changes in field operations
management which provide less direct center supervision. The
Company is in the process of evaluating such initiatives.


During year-to-date 1997, the Company opened 11 new centers:
ten community centers and one KinderCare at Work(R) center; and
closed 11 centers. During year-to-date 1996 (including the
conversion of one community center to a Kid's Choice(TM)
center), the Company opened 22 new centers: 11 community
centers, four KinderCare at Work(R) centers, and seven Kid's
Choice(TM) centers; and closed 17 centers. Since the end of
second quarter 1996, the Company has opened a total of 26 new
centers with an average building capacity of 177 children and has
closed 20 centers with an average building capacity of 100
children. Total center capacity has increased to approximately
142,000 at the end of second quarter 1997 from approximately
138,000 at the end of second quarter 1996.


Salaries, wages and benefits expense increased $3.9 million, or
6.0%, to $68.9 million second quarter 1997 and $11.4 million, or
7.6%, to $162.2 million year-to-date 1997 versus the comparable
periods in 1996. As a percentage of operating revenues, salaries,
wages and benefits expense increased to 53.7% second quarter
1997 from 52.4% second quarter 1996, and to 54.1% year-to-date
1997 from 52.9% year-to-date 1996. Approximately 40% and
58%, respectively, of the second quarter and year-to-date
increases are attributable to increased center staff hours. Average
hourly center staff wages increased approximately 4% for second
quarter 1997 and year-to-date 1997 versus the comparable periods
in 1996. As a percentage of operating revenues, a portion of the
increase in salaries, wages and benefits is due to an approximately
28% increase in employee- enrolled children (who are only
charged an administrative fee plus either a discounted tuition fee
or no tuition) in year-to-date 1997 versus year-to-date 1996,
which resulted in additional staffing costs without a commensurate
increase in operating revenues. The increase in employee-enrolled
children is due to an enhanced staff discount program initiated to
improve staff retention. Management has revised and continues to
evaluate this program. Further, benefit costs have increased
slightly due to the partial implementation of new employee health
insurance plans. Higher center labor costs associated with these
benefits have been partially offset by improvements in field
overhead and management reorganizations implemented during
1996.


Depreciation expense decreased to $7.4 million during second
quarter 1997 from $7.9 million second quarter 1996. This
decrease is due to certain assets reaching the end of their fully
depreciated lives during second quarter 1997, more than offsetting
the depreciation expense associated with new asset additions.
Depreciation expense increased to $19.2 million year-to-date
1997 from $18.0 million year-to-date 1996 due to asset additions
related to renovations of existing centers, purchases of short-lived
assets, and to the opening of 26 new centers, offset partially by the
closing of 20 centers since the end of second quarter 1996 and by
a reduction in depreciation expense related to the end of the
estimated depreciable lives of certain assets.


Rent expense decreased to $5.8 million second quarter 1997 from
$6.0 million second quarter 1996 and increased to $14.5 million
year- to-date 1997 from $14.4 million year-to-date 1996. Eleven
leased centers have been opened and 15 leased centers have been
closed since the end of second quarter 1996.


Other operating expenses decreased to $33.4 million second
quarter 1997 from $34.0 million second quarter 1996 and
increased to $81.2 million year-to-date 1997 from $80.8 million
year-to-date 1996. As a percentage of operating revenues, other
operating expenses decreased to 26.0% second quarter 1997 from
27.4% second quarter 1996 and to 27.1% year-to-date l997 from
28.3% year-to-date l996. These margin improvements are
principally due to a reduced, lower cost marketing program and
improved administrative and center support efficiencies from
re-engineering efforts initiated during fiscal 1996.


During first quarter 1996, the Company received the final cash
distribution of $11.3 million from The Enstar Group, Inc.
("Enstar"), the Company's former parent, in settlement of the
Company's $12.0 million claim against Enstar in U.S. Bankruptcy
Court in Montgomery, Alabama. During second quarter 1997, the
Company received a $1.5 million interest payment from Enstar in
connection with this claim.


On June 15, 1995, the Board of Directors appointed Dr. Sandra
Scarr, Chairman of the Board, to be Chief Executive Officer
("CEO"), replacing the former CEO whose resignation was
effective on the same date. Subsequent to this appointment, the
Company made substantial changes to its field operations
management and support functions. As a result of these changes,
the Company charged $4.0 million of restructuring costs, primarily
severance agreements, against fiscal 1996 earnings during first
quarter 1996.


Although substantial reorganization changes were implemented
during fiscal 1996, the Company continues to evaluate certain
other support functions and systems in an effort to improve future
operating effectiveness and efficiencies, as well as to improve the
quality of services.


During first quarter 1996, management limited Kid's Choice(TM)
development to contracts in process until the concept is more fully
developed, and recorded an impairment loss of $6.3 million,
consisting of a writedown of $5.3 million for the recoverability of
long lived assets, primarily leasehold improvements, and $1.0
million for anticipated lease termination costs.


Operating income increased $3.1 million, or 28.0%, to $14.4
million second quarter 1997 as compared to second quarter 1996
and increased $1.8 million, or 7.8% to $24.1 million year-to-date
1997 as compared to year-to-date 1996. Operating income before
litigation settlements and restructuring costs increased $1.6
million, or 14.4%, to $12.8 million as compared to second quarter
1996 and increased $1.2 million, or 5.8%, to $22.6 million
year-to- date 1997 as compared to year-to-date 1996 for the
reasons discussed above.


Second quarter 1997 EBITDA, defined as earnings before interest
expense, income taxes, depreciation, and amortization, of $16.5
million, was $2.6 million below second quarter 1996, and year-to-
date 1997 EBITDA of $36.9 million was $3.6 million below
year-to- date 1996. As a percentage of operating revenues,
EBITDA for second quarter 1997 was 12.8% versus 15.4% for
second quarter 1996 and EBITDA for year-to-date 1997 was
12.3% versus 14.2% for year-to-date 1996. Adjusted EBITDA,
defined as EBITDA excluding the effects of investment income;
litigation settlements and restructuring costs (income), net; and
extraordinary items, was $20.2 million second quarter 1997, an
increase of $1.1 million over second quarter 1996, and $41.8
million year-to-date 1997, an increase of $2.4 million over
year-to-date 1996. As a percentage of operating revenues,
Adjusted EBITDA improved to 15.7% second quarter 1997 from
15.4% second quarter 1996 and improved to 13.9% year-to-date
1997 from 13.8% year-to-date 1996. Neither EBITDA nor
Adjusted EBITDA is intended to indicate that cash flow is
sufficient to fund all of the Company's cash needs or represent cash
flow from operations as defined by generally accepted accounting
principles.


KinderCare is the largest preschool and child care provider in the
United States. At the end of the second quarter of fiscal 1997,
under the banners of KinderCare Learning Centers, Inc.,
KinderCare at Work(R) and Kid's Choice(TM) the Company
operated 1,148 centers in 38 states and the United Kingdom with
an enrollment of approximately 125,000 full-time and part-time
children and employed approximately 22,000 people. Children's
education programs include: toddler programs Look at Me(R) and
Let Me Do It(R); preschool programs My Window on the
World(R) and Once Upon a Time...(R); and the schoolage program
KC Imagination Highway(TM). The Company was founded in
1969 and is headquartered in Montgomery, Alabama.


        KINDERCARE LEARNING CENTERS, INC. AND SUBSIDIARIES
        CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in
        thousands except per share amounts) (Unaudited)

                                      Twelve Weeks Ended     
                                      Twenty-eight
        Weeks Ended

                                  Dec. 13      Dec. 15      
                                  Dec. 13      Dec 15
                                    1996         1995         
                                    1996        1995

        Operating revenues       $128,324     $124,079     
        $299,751    $285,392 Operating expenses:
         Salaries, wages
          and benefits             68,875       65,003      
          162,215     150,814
         Depreciation               7,351        7,864       
         19,208      18,053 Rent                       5,857  
              6,032        14,507      14,367 Provision for
         allowance
          for doubtful accounts       811        1,030        
          1,851       1,792
         Other                     32,591       32,928       
         79,380      79,022 Litigation settlements
          and restructuring
              costs (income), net      (1,527)         ---    
                 (1,527)
        (1,019)

           Total operating
            expenses              113,958      112,857      
            275,634     263,029

        Operating income           14,366       11,222       
        24,117      22,363 Net investment income          15  
                50            86         161 Interest expense
                  3,201        3,811         8,141       9,219
        Income before income
         taxes and extraordinary
         item                      11,180        7,461       
         16,062      13,305
        Income tax expense          4,360        2,910        
        6,264       5,189 Income before
         extraordinary item         6,820        4,551        
         9,798       8,116
        Extraordinary item
         -- loss on early
         extinguishment of debt,
             net of income tax benefit  5,251          ---    
                 6,480
        ---

            Net income                 $1,569       $4,551    
               $3,318
        $8,116

        Income per share:
        Income before
             extraordinary item         $0.33        $0.23    
                 $0.48
        $0.40

        Extraordinary item
         -- loss on early
             extinguishment of debt     (0.25)         ---    
                 (0.32)
        ---

            Net income                  $0.08        $0.23    
                $0.16
        $0.40

        Weighted average common
         shares and share
             equivalents               20,599       19,939    
                20,334
        20,285

        See notes to unaudited consolidated Form 1O-Q.

        KINDERCARE LEARNING CENTERS, INC. AND SUBSIDIARIES
        CONSOLIDATED BALANCE SHEETS (in thousands, except per
        share amounts) (Unaudited)

                                               December 13    
                                                     May 31
        ASSETS                                     1996       
               1996 Current assets:
         Cash and cash equivalents             $  10,426      
            $  15,597 Receivables:
          Tuition (net of allowance
           for doubtful accounts
           of $2,234 and $1,884 at
           December 13, 1996 and
           May 31, 1996, respectively)            14,728      
                 14,566
          Other                                      439      
                   563
         Prepaid expenses and supplies            10,240      
                9,116 Deferred income taxes                   
          4,664              4,664
           Total current assets                   40,497      
                 44,506

         Property and equipment, at cost         580,349      
              561,189
          Less accumulated depreciation
           and amortization                      103,803      
                 92,664 Net property and equipment           
           476,546            468,525

         Deferred income taxes                     4,454      
                4,422

         Other assets                              7,941      
                8,023

         Total                                  $529,438      
             $525,476

        LIABILITIES AND
        SHAREHOLDERS' EQUITY
        Current liabilities:
         Accounts payable                       $  9,221      
             $ 14,330 Bank overdrafts                         
         11,328              9,768 Current portion of
         long-term debt         1,095                853
         Accrued expenses and
          other liabilities                       40,482      
                51,163

           Total current liabilities              62,126      
                 76,114

        Long-term debt                           167,668      
             145,764 Self-insurance liabilities               
        20,210             17,652 Other noncurrent liabilities
                     23,983             20,488

           Total liabilities                     273,987      
                260,018

        Shareholders' equity:
         Preferred stock, $.01 par value;
          authorized 10,000,000 shares;
          none outstanding                           ---      
                   ---
         Common stock, $.01 par value;
          authorized 40,000,000 shares;
          issued 19,414,367 and 19,981,807
          shares at December 13, 1996 and
          May 31, 1996, respectively;
          outstanding 19,414,367 and
          19,946,807 at December 13, 1996
          and May 31, 1996, respectively             191      
                   199
         Additional paid-in capital              190,119      
              204,003 Retained earnings                       
         65,117             61,799 Cumulative translation
         adjustment            24                (20) Less
         treasury stock, at cost
          (35,000 shares at May 31, 1996)            ---      
                  (523)

           Total shareholders' equity            255,451      
                265,458

         Total                                  $529,438      
             $525,476

        See notes to unaudited consolidated Form 10-Q.

        KINDERCARE LEARNING CENTERS, INC. AND SUBSIDIARIES
        CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in
        thousands) (Unaudited)

                                                 Twenty-eigbt
                                                 Weeks Ended
                                                December 13   
                                                    December
                                                15
                                                    1996      
                                                           

                                                    1995
        Cash flows from operations:
        Net income                              $  3,318      
           $   8,116 Operating activities not
         requiring (providing) cash:
         Depreciation                             19,208      
               18,053 Amortization of intangibles
          and other assets                           783      
                   734
         Writedown of Kid's Choice(TM)
          property and equipment                     ---      
                 5,312
         Gain on sales and disposals
          of property and equipment                  (34)     
                (1,178)
         Extraordinary item - loss on
          early extinguishment of debt             6,480      
                   ---
         Changes in operating assets
          and liabilities:
         Receivables                                  97      
               (2,446) Prepaid expenses and supplies          
          (1,124)            (2,388) Other assets             
                        (2,393)              (166) Accounts
         payable, accrued expenses
          and other liabilities                   (9,676)     
                 1,393
         Other, net                                  (48)     
                 (603)

           Net cash provided by operating
            activities                          $ 16,611      
                $ 26,827

        Cash flows from investing activities:
        Purchases of property and equipment     $(27,849)     
            $(38,933) Proceeds from sales of property
         and equipment                               518      
                3,366
        Proceeds from collection of
         notes receivable                             12      
                2,029
        Proceeds from sale of investment             ---      
               3,396 Other, net                               
           (22)               ---

        Net cash used by investing activities     (27,341)    
             (30,142)

        Cash flows from financing activities:
        Borrowings on revolving
         credit facility                          122,500     
                  ---
        Payments on long-term borrowings         (105,133)    
                (538) Purchase and retirement of
         treasury stock                           (14,251)    
              (10,000)
        Bank overdrafts                             1,560     
               8,970 Exercise of stock options
         and warrants                                 883     
                1,207

        Net cash provided (used)
         by financing activities                    5,559     
                 (361)

        Decrease in cash and cash equivalents      (5,171)    
              (3,676) Cash and cash equivalents at
         the beginning of the period               15,597     
               14,237

        Cash and cash equivalents at
         the end of the period                   $ 10,426     
             $ 10,561

        Supplemental cash flow information:
        Interest paid                            $ 11,774     
            $  7,601 Income taxes paid                       
        $    920          $  2,134

        See notes to unaudited consolidated Form 10-Q.

SOURCE KinderCare Learning Centers, Inc./CONTACT: Philip
L. Maslowe, Executive Vice-President and Chief Financial
Officer, 334-277-5090, or Thomas D. Johnson, Jr., Director of
Marketing and Investor Relations, 334-260-7668, both of
KinderCare Learning Centers/