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AMERICAN STUDIOS, INC. ANNOUNCES THIRD QUARTER RESULTS

 CHARLOTTE, N.C., Oct. 27 /PRNewswire/ -- American Studios, Inc. (NASDAQ-NMS: AMST), the principal provider of portrait photography services in Wal-Mart Stores, Inc. (Wal-Mart) (NYSE: WMT) today announced that net sales for the third quarter of 1993 increased 40 percent to $22.8 million from $16.3 million for the third quarter of 1992. Net income for the third quarter of 1993 was $0.8 million as compared to $1.1 million for the third quarter of 1992. Net income per share for the third quarter of 1993 was $0.04 per share as compared to $0.06 per share for the third quarter of 1992.
 Net sales for the first three quarters of 1993 increased 58 percent to $62.7 million from $39.7 million for the first three quarters of 1992. Net income for the first three quarters of 1993 was $0.8 million as compared to $0.1 million for the first three quarters of 1992. Net income was $0.04 per share for the first three quarters of 1993 as compared to $0.01 per share for the first three quarters of 1992. Net income for the first three quarters of 1992 was affected by a nonrecurring charge of $1.1 million for stock bonuses issued to employees in the second quarter of 1992, as well as $1.8 million of interest expense incurred in 1992 prior to the retirement of the company's outstanding debt from the proceeds of the company's initial public offering in September 1992.
 R. Kent Smith, president, stated that "given the intense competitive pressures, less than anticipated customer volume, and increased costs associated with larger portrait packages, the company is satisfied with the results of the third quarter." Smith further stated that "the company is extremely pleased with the results of operations in the recently opened Wal-Mart Supercenter in Mexico City and looks forward to future expansion of service for Wal-Mart in Mexico."
 As of the end of the third quarter of 1993, American Studios, Inc. provided portrait photography services in over 1,700 Wal-Mart stores in 36 states, Puerto Rico and Mexico.
 AMERICAN STUDIOS, INC. AND SUBSIDIARY
 CONSOLIDATED STATEMENT OF OPERATIONS
 (Dollars in thousands, except per share data)
 Thirteen Thirty-nine
 Weeks Ended Weeks Ended
 Oct. 3, Sept. 27, Oct. 3, Sept. 27,
 1993 1992 1993 1992
 Net sales $22,808 $16,272 $62,694 $39,735
 Cost of sales 18,386 11,514 50,518 28,146
 Gross profit 4,422 4,758 12,176 11,589
 General and
 administrative expenses 3,025 2,808 10,265 7,645
 Amortization of non-
 compete agreements and
 other intangible assets 153 226 606 850
 Compensation under grants
 of ownership interests - - - 1,134
 Income before interest 1,244 1,724 1,305 1,960
 Interest 3 538 23 1,759
 Income before income taxes 1,241 1,186 1,282 201
 Income tax expense 480 78 496 78
 Net income $761 $1,108 $786 $123
 Net income per
 common share $0.04 $0.06 $0.04 $0.01
 Cash dividends per common
 share $0.02 $0.06 $0.01
 Weighted average number
 on shares outstanding
 and common stock
 equivalents 21,634,397 18,007,740 21,688,844 17,671,458
 End of Period
 Statistical Data
 - U.S. Operations:
 Number of Wal-Mart
 stores served 1,763 1,546
 Number of permanent
 studios 346 64
 Number of customers 1,655,000 1,039,800
 -0- 10/27/93
 /CONTACT: R. Kent Smith, president, or A. Allen Henderson, CFO, both of American Studios, 704-588-4351/
 (AMST WMT)


CO: American Studios, Inc. ST: North Carolina IN: REA SU: ERN

SB-DF -- CH011 -- 7598 10/27/93 18:55 EDT
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Publication:PR Newswire
Date:Oct 27, 1993
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