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ADVANCED MARKETING SERVICES INC. REPORTS EARNINGS GAIN ON RECORD SALES FOR FISCAL YEAR 1992

 ADVANCED MARKETING SERVICES INC. REPORTS EARNINGS GAIN
 ON RECORD SALES FOR FISCAL YEAR 1992
 SAN DIEGO, May 14 /PRNewswire/ -- Advanced Marketing Services Inc. (NASDAQ: ADMS) today reported record sales and a return to profitability for fiscal year 1992. For the fiscal year ended March 31, 1992, the company reported net income of $1,834,000, or $.34 per share, on sales of $218,148,000, which is a 24 percent increase over last year. This compares to an after-tax loss of $1,232,000, or $.21 per share, on net sales of $176,071,000 for the previous fiscal year. The company is a leading distributor of general interest books to membership warehouse club and office product superstore industries.
 For the fourth quarter ended March 31, 1992, the company reported net income of $38,000, or $.01 per share, on net sales of $46,797,000. This compares to a net loss of $1,138,000 or $.21 per share, on net sales of $31,774,000 for the fourth quarter of the previous fiscal year. Earnings benefited from the adoption of FASB 109 at March 31, 1992, which added $176,000 to net income for the quarter and fiscal year.
 Increased sales for the fiscal year were due in part to an exceptionally strong season for the "bestseller" category of hardcover books. The fourth quarter sales gain of 47 percent was due to increases in sales in most book categories. Excluding video products, comparative sales for the quarter (to customer locations that operated throughout the year) increased 33 percent.
 Gross profits for fiscal year 1992 increased $5.0 million, or 37 percent. As a percentage of net sales, gross profits were 8.5 percent in fiscal 1992 vs. 7.7 percent in fiscal 1991. The increase in gross profits as a percentage of sales resulted primarily from lower inventory markdown costs, which were offset in part, by lower margins due to product mix changes. Additionally, the company more aggressively priced several book categories to retain or expand the company's market share.
 For the fourth quarter of fiscal 1992, gross profits increased by 67 percent, compared to the prior year's quarter. As a percentage of net sales, gross profits were 8.6 percent compared to 7.6 percent in the fourth quarter last year. The increase in the gross profit percentage was largely due to lower markdown provisions on inventories and favorable resolution of certain vendor claims.
 Distribution and administrative expenses declined as a percentage of net sales to 7.2 percent for fiscal year 1992 from 8.7 percent in the previous fiscal year, primarily as a result of increased sales volume coupled with modest growth of expenses.
 Charles C. Tillinghast III, president, said, "Fiscal 1992 represents a significant turnaround year for Advanced Marketing Services. During the year the company improved its marketing capabilities, allowing AMS to achieve sales growth rates approximating those of its major customers. Additionally, the company made substantial progress in reducing its exposure to future inventory markdown costs. These actions returned AMS to profitability and increased its ability to compete effectively."
 Advanced Marketing Services Inc. provides product selection advice, specialized merchandising and product development programs, and distribution and handling services with respect to general interest books and related products sold primarily to membership warehouse clubs and office product superstores operating in the United States, Canada and Mexico.
 ADVANCED MARKETING SERVICES INC.
 Comparative Financial Results
 Statement of Operations
 (In thousands)
 Three Months Ended Year Ended
 March 31, March 31,
 1992 1991 1992 1991
 Net sales $46,797 $31,774 $218,148 $176,071
 Cost of goods sold 42,752 29,350 199,688 162,600
 Gross profit 4,045 2,424 18,460 13,471
 Distribution and
 administrative
 expenses 4,411 4,154 15,721 15,292
 Income (loss) from
 operations (366) (1,730) 2,739 (1,821)
 Interest and dividend
 income (expense), net 35 92 (96) 69
 Income (loss) before
 provision (benefit)
 for income taxes (331) (1,638) 2,643 (1,752)
 Provision (benefit) for
 income taxes (369) (500) 809 (520)
 Net income (loss) $38 ($1,138) $1,834 ($1,232)
 Net income (loss)
 per share $.01 ($.21) $.34 ($.21)
 Weighted average number
 of shares outstanding 5,355 5,495 5,354 5,760
 ADVANCED MARKETING SERVICES INC.
 Comparative Financial Results
 Condensed Balance Sheet
 (In thousands)
 As of March 31,
 1992 1991
 Assets
 Cash and short-term investments $13,960 $3,965
 Accounts receivable 15,809 9,796
 Inventories 63,772 69,980
 Other current assets 2,004 2,055
 Total current assets $95,545 $85,796
 Net property and equipment
 and other assets 2,345 2,725
 Total Assets $97,890 $88,521
 Liabilities and Stockholders' equity
 Accounts payable and other
 current liabilities $59,810 $52,286
 Stockholders' equity 38,080 36,235
 Total liabilities and
 stockholders' equity $97,890 $88,521
 -0- 5/14/92
 /CONTACT: Charles C. Tillinghast III, president, or Jon S. Fish, CFO, of Advanced Marketing Services, 619-457-2500/
 (ADMS) CO: Advanced Marketing Services Inc. ST: California IN: REA SU: ERN


JL -- SD007 -- 0415 05/14/92 16:23 EDT
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Date:May 14, 1992
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