Samsonite Reports Third Quarter Results

Denver, Colorado (ots/PRNewswire) - SAMSONITE CORPORATION (OTC
Bulletin Board: SAMC) today reported revenues of US$231.4 million,
operating income of US$22.0 million and net income to common
stockholders of US$2.7 million, or US$0.01 per share, for the quarter
ended October 31, 2004. These results compare to revenue of US$202.4
million, operating income of US$17.1 million and net loss to common
stockholders of US$0.6 million, or less than US$0.01 per share, for
the third quarter of the prior year. The accrual of preferred stock
dividends in arrears of US$3.5 million for the current quarter and
US$3.3 million for the prior year period are reflected in the net
income (loss) to common stockholders.

Adjusted EBITDA (earnings before interest expense, taxes,
depreciation, amortization, and minority interest, adjusted for
certain items management believes should be excluded in order to
reflect recurring operating performance including restructuring
charges, executive severance, non-cash stock compensation
adjustments, asset impairment charges and to include realized
currency hedge gains and loses), a measure of core business cash
flow, was US$26.5 million for the three months ended October 31, 2004
compared to US$21.8 million for the third quarter of the prior year.

Revenues for the nine months ended October 31, 2004 were US$651.9
million compared to revenues of US$556.5 million during the same
nine-month period in the prior year. Operating earnings for the first
nine months of the year were US$42.4 million compared to US$46.1
million during the prior year. Net loss to common stockholders for
the first nine months of the year was US$26.0 million, or US$0.12 per
share, versus a net loss of US$31.5 million, or US$0.35 per share,
during the same period in the prior year. Net loss to common
stockholders includes charges of US$10.2 million in the current year
and US$27.8 million in the prior year for accrued preferred stock
dividends. Adjusted EBITDA for the first nine months of the current
year was US$69.4 million versus US$58.9 million for the same period
in the prior year.

Chief Executive Officer, Marcello Bottoli, stated: "The Company's
operating performance continues to improve with sales growth of 14.3%
(10.6% on a constant currency basis) for the quarter and Adjusted
EBITDA growth of 21.7% representing the Company's fourth consecutive
quarter of consistent year-over-year growth. Reflecting the positive
impacts of the Company's operational restructuring activities,
quarterly gross profit margins also improved increasing to 45.4% from
44.0% in the prior year. These results also reflect the Company's
commitment to support its brands and products in various markets
around the world. Advertising and marketing promotional expenses
during the quarter were US$15.5 million bringing the year-to-date
expense total through the third quarter to US$44.4 million or US$11.8
million more than the prior year."

Richard Wiley, Chief Financial Officer, commented: "In addition to
improved sales and profitability, the Company continues to improve
the efficiency of its working capital deployment and to reduce its
debt. Net working capital efficiency improved 290 basis points from
the prior year third quarter on a last twelve-month average balance
basis to 20.5% and debt net of cash balances was US$316.8 million at
quarter end or US$10.2 million lower than at the end of the second
quarter."

Samsonite Corporation will hold a conference call with securities
analysts to discuss this press release at 10:00 a.m. Eastern Daylight
Time on Friday, December 10, 2004. Investors and interested members
of the public are invited to listen to the discussion. The dial-in
phone numbers are +1 (877) 809-7599 in the U.S./Canada and
+1-(706)-679-6135 for international calls, the conference name is
Samsonite and the conference ID # is 2607296. The leader of the call
is Marcello Bottoli. If you cannot attend this call, it will be
played back through Thursday, December 30, 2004. The playback numbers
are +1 (800) 642-1687 in the U.S./Canada and +1-(706)-645-9291 for
international calls, and the conference ID # is 2607296.

Samsonite is one of the world's largest manufacturers and
distributors of luggage and markets luggage, casual bags, business
cases and travel-related products under brands such as SAMSONITE(R),
AMERICAN TOURISTER(R), LARK(R), HEDGREN(R), LACOSTE(R) and
SAMSONITE(R) black label.

A summary of the Company's calculation of Adjusted EBITDA, a
reconciliation of Adjusted EBITDA to net cash provided by (used in)
operating activities, and a summary of the Company's earnings
(losses) under generally accepted accounting principles are attached
as part of this release. The Company believes that disclosure of its
operating earnings before interest, taxes, depreciation and
amortization, as further adjusted to exclude goodwill and asset
impairment charges, restructuring charges and expenses, executive
severance and stock compensation expense and to include realized
currency hedge gains and losses ("Adjusted EBITDA"), provides useful
information regarding the Company's ability to incur and service
debt, but that it should not be considered a substitute for operating
income or cash flow from operations determined in accordance with
generally accepted accounting principles. Other companies may
calculate EBITDA, or derivations thereof, in a different manner than
the Company. Adjusted EBITDA does not take into consideration
substantial costs and cash flows of doing business, such as interest
expense, income taxes, depreciation, amortization, restructuring
charges and expenses, and stock compensation expense, and should not
be considered in isolation to or as a substitute for other measures
of performance. Adjusted EBITDA, as calculated by the Company, also
excludes extraordinary items, discontinued operations, minority
interest in earnings of subsidiaries, certain items of other income
and expense and preferred stock dividends. Adjusted EBITDA does not
represent funds available for discretionary use by the Company
because those funds are required for debt service, capital
expenditures, working capital, and other commitments and obligations.
Neither EBITDA nor Adjusted EBITDA is an accounting term used in
generally accepted accounting principles.

Certain statements contained herein constitute "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. They can often be recognized by words such as
"proposed," "may," "will," "anticipate," "believe," "estimate,"
"intend," "plan" and "expect" and similar expressions. Variations on
those or similar words, or the negative of those words, may also
indicate forward-looking statements. Forward-looking statements
involve numerous assumptions, known and unknown risks, uncertainties
and other factors that may cause actual and future performance or
achievements of the Company to be materially different from any
future estimated results, performance or achievements expressed or
implied by such forward-looking statements. These factors include,
among others, events which affect travel levels (such as the impact
of terrorist attacks, armed conflicts in the Middle East and other
regions, the incidence or spread of contagious diseases (such as
SARS), or other economic, political or public health or safety
conditions or events that impact consumer confidence and spending);
general economic and business conditions, including foreign currency
exchange rate fluctuations; industry capacity; changes in consumer
preferences; demographic changes; competition; changes in methods of
distribution and technology; changes in political, social and
economic conditions and local regulations; general levels of economic
growth in emerging market countries; the loss of significant
customers; completion of new product developments within anticipated
time frames; changes in interest rates; and other factors that are
beyond our control. More information on the risks, uncertainties and
other factors affecting Samsonite Corporation may be obtained from
the Company's filings with the United States Securities and Exchange
Commission. Forward-looking statements are believed to be accurate as
of the date of this release, and the Company undertakes no obligation
to update or revise said statements as a result of future events.

Samsonite Corporation Earnings Summary

October 31, 2004 and 2003

(in thousands, except per share data)

(Unaudited)

(All amounts in USD)

Three months ended  Nine months ended
                                          October 31,        October 31,
                                          2004     2003      2004     2003
    Net sales                          $231,369  202,421  $651,920  556,514
    Cost of goods sold                  126,420  113,282   356,198  310,853
      Gross profit                      104,949   89,139   295,722  245,661
    Selling, general and
         administrative expenses         82,337   71,700   246,783  198,635
    Amortization of intangible assets       588      320     1,767      967
    Provision for restructuring
     operations                             --       --      4,074      --
    Asset impairment charge                 --       --        671      --
      Operating income                   22,024   17,119    42,427   46,059
    Interest expense and amortization
      of debt issue costs                (8,042) (10,244)  (27,210) (33,546)
    Interest and other income (expense),
     net                                 (2,569)  (2,166)  (20,626)  (7,297)
    Income before income taxes, minority
      interest and extraordinary item    11,413    4,709    (5,409)   5,216
    Income tax expense                   (4,276)  (1,422)   (7,567)  (6,731)
    Minority interest in earnings of
     subsidiaries                          (967)    (662)   (2,922)  (2,159)
      Net income (loss)                   6,170    2,625   (15,898)  (3,674)
    Senior redeemable preferred stock
     dividends, paid
      and accrued, and accretion of
       discount                          (3,463)  (3,251)  (10,151) (27,790)
    Net income (loss) to common
     stockholders                        $2,707     (626) $(26,049) (31,464)
    Net income (loss) per common share -
     basic                              $0.01      -- (i)   $(0.12)   (0.35)
    Net income (loss) per common share -
     diluted                            $0.01      -- (i)   $(0.12)   (0.35)
    Weighted average shares outstanding
     - basic                            224,809  224,705   224,740   88,888
    Weighted average shares outstanding
     - diluted                          229,164  224,705   224,740   88,888
        (i) Less than $.01 loss per share
    Summary of Adjusted EBITDA
     Calculation
    Operating income                  $22,024   17,119   $42,427   46,059
    Depreciation expense                4,579    4,348    14,066   13,515
    Amortization expense                  588      320     1,767      967
    Asset impairment and restructuring
     charges and expenses                   543      (16)    7,765       --
    Stock compensation expense (benefit) (1,395)      --     2,738       --
    Realized gains/(losses) on foreign
     currency forward contracts             160        2       651   (1,618)
    Adjusted EBITDA                      26,499   21,773    69,414   58,923
    Adjustments to reconcile Adjusted
     EBITDA to net cash provided by
    operating activities
      Restructuring related expense, not
       previously accrued                (543)      16    (1,621)      --
      Cash provided (used) by changes in
       operating assets and liabilities  7,950   11,878    (8,438)  (1,218)
      Non-cash operating additions
       (subtractions)
        Amortization and write-off of
         debt issue costs and premium       636      568     5,871    2,539
        Provision for doubtful accounts   1,206      353     1,918      393
        Pension and other post-
         retirement plan losses (gains)     852     (156)    2,416      280
        Other, net                          402      (88)     (615)  (4,648)
      Income (expense) excluded from
       Adjusted EBITDA
        Interest income                      95       57       325      228
        Interest expense                 (8,042) (10,244)  (27,210) (33,546)
        Income tax expense               (4,276)  (1,422)   (7,567)  (6,731)
        Minority interest in earnings of
         subsidiaries                      (967)    (662)   (2,922)  (2,159)
        Other income (expense) items,
         net                             (2,864)  (2,170)  (23,744)  (7,899)
    Net cash provided by operating
     activities                         $20,948   19,903    $7,827    6,162

Web site: http://www.samsonite.com

Rückfragehinweis:
Richard Wiley of Samsonite Corporation, +1-303-373-6373

OTS-ORIGINALTEXT UNTER AUSSCHLIESSLICHER INHALTLICHER VERANTWORTUNG DES AUSSENDERS | PRN

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