Three D Bed and Bath, COSTA MESA

Nature of Business: Retail bed and bath specialty stores in New England, Southern California and Arizona.

Total Employees: 430

In Orange County: 185

Stock Listing in The Times: On Amex as “ThrD”

Ticker Symbol: “HOME”

Friday’s Close: $2.63

One-Week Change: Up $0.13

Analyst Review: “It looks as if Three D has pulled out of their earnings slide. For awhile the ’89 and ’90 numbers looked a little grim. The company was able to shift their debt from short term to long term--that makes their current assets-to-liability ratio go from less than 2:1 to almost 3:1. Cash flow is pretty good because they have quite a bit of depreciation. I calculated that at 41 cents a share, and when you add the 19-cent per share earnings, that’s 60 cents a share for fiscal ’91. A good rule of thumb is that if the stock price is below 5 times cash flow--which this is--that’s a good value. Sales have been steadily climbing about 10% annually over the last four years. Three D’s biggest drawback is its liquidity--it just doesn’t trade very much. But I like the fact that the company is buying back shares. That means they have faith in themselves. That gives me more confidence as an investor. After all, they’re the ultimate insider, and if they’re willing to use corporate money to buy their own stock, they must think things are going to go reasonably well in the future, or they wouldn’t do it.” --Mark Matheson, director of research Cruttenden & Company, Irvine

SALES VS. PROFITS

Fiscal year ending Aug. 1 July 30 July 29 July 28 Aug. 3 1987 1988 1989 1990 1991 Net Sales $34.7 $35.0 $38.2 $41.6 $45.8 Net Profit (Loss) $.728 $.719 $.600 $.296 $.536

Corporate Outlook: “Three D has attacked the challenging economic environment head-on. We trimmed costs in store payroll and advertising, reduced inventories and eliminated several senior positions. As a result we were able to hold our own during the first year of a stubborn recession and set the stage for future healthy growth. Sales increased in fiscal 1991 by 10%, and we opened new stores in Laguna Niguel and Scottsdale, Arizona. For fiscal 1992, we are considering additional sites in Arizona and have plans to open new stores in Mission Viejo and Anaheim Hills. As economic conditions continue to be uncertain, we are focusing on obtaining exciting and different merchandise to encourage recession-weary customers to favor our stores over the competition.” --Donald L. Abrams, president

5-YEAR SUMMARY: RETURN ON STOCKHOLDER INVESTMENT

Fiscal year ending Aug. 1 July 30 July 29 July 28 Aug. 3 1987 1988 1989 1990 1991 52-Week High $4.38 $4.25 $5.13 $5.25 $4.63 52-Week Low $3.00 $2.75 $3.25 $4.25 $2.63 Price Per Share $3.25 $3.50 $5.00 $4.50 $2.75 Book Value $4.57 $4.85 $4.96 $4.98 $5.09 Net Earnings (Loss) Per Share $0.22 $0.24 $0.19 $0.10 $0.19 Price-to-Earnings Ratio 15:1 15:1 26:1 45:1 14:1 Average Return to Investor 5% 5% 4% 2% 4%

Source: Three D Departments, Inc. For more information call or write, Three D Departments Inc.: P.O. Box 19773, Irvine, Calif., 92713-9773. (714) 662-0818.