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AMRE, INC. ANNOUNCES THIRD QUARTER RESULTS AND DECLARES QUARTERLY CASH DIVIDEND

 DALLAS, Nov. 9 /PRNewswire/ -- AMRE, Inc. (NYSE: AMM), a Dallas- based direct consumer marketer of home improvement products, today announced results for its third quarter and nine months ended Sept. 26, 1993.
 Third Quarter Results
 For the quarter ended Sept. 26, 1993, revenues decreased 11.7 percent to $67.9 million down from $76.9 million for the same period last year.
 During the quarter, the company expensed approximately $3 million of startup marketing and selling costs as it began to market its new product, replacement windows. Contract revenues for the installation of replacement windows were approximately $2.3 million although the company had an additional $4.7 million of sales orders awaiting installation as of the end of the quarter.
 Income from operations was $41,000 compared to operating income of $6.4 million reported for last year's third quarter. The 1992 period benefited from an agreement with Sears, Roebuck and Co. for a temporary reduction in license fees. If the company had expensed license fees at the rate in effect in 1993, operating income for the 1992 period would have been reduced by approximately $5 million.
 Net income for the third quarter was $120,000 or $0.01 per share compared with $3.9 million or $0.27 per share for the same period last year.
 Nine Months Results
 For the nine months ended Sept. 26, 1993, revenues decreased 9.5 percent to $192.5 million from $212.8 million last year.
 The company and its licensor, Sears, have both made a number of changes which have affected comparisons with the prior year period. The company believes these changes have contributed to a decline in the response rates to the company's advertising. While it is impossible to quantify the individual impact of the various changes, the company has had 14 percent fewer customer appointments in the nine months ended Sept. 26, 1993 compared to the same period in 1992, although the impact on sales orders and contract revenues has been partially offset by improved closing ratios.
 The company has attempted to offset the decline in response rates by emphasizing a variety of alternative lead sources. The company continues to work with Sears to increase the number of referral leads from Sears retail stores. These referral leads have begun to increase, although they are still significantly below prior year levels. During the third quarter of 1993, the company also recruited both a new Vice President of Marketing and a new Director of Telemarketing and has increased its market and consumer research in order to improve its lead generation efforts.
 Loss from operations was $2.8 million compared to operating income of $6.8 million reported for the same period last year. The 1992 period benefited from an agreement with Sears for a temporary reduction in license fees. If the company had expensed license fees at the rate in effect in 1993, operating income for the 1992 period would have been reduced by approximately $1.3 million.
 Net loss for the nine months ended Sept. 26, 1993 was $584,000 or $0.04 per share compared to net income of $4.7 million or $0.33 per share for the same period last year.
 Cash
 At Sept. 26, 1993, AMRE had $24.1 million in cash and marketable securities compared with $21.9 million at June 26, 1993. During the third quarter, the company received approximately $3.5 million from the Internal Revenue Service resulting from the settlement of an audit covering the fiscal years 1986 through 1990.
 Quarterly Dividend
 At a regularly scheduled Board of Directors meeting on Nov. 9, 1993, AMRE, Inc., declared its quarterly cash dividend of $.03 per share. It will be payable on Jan. 10, 1994, to stockholders of record on Dec. 23, 1993. This marks the company's 25th consecutive quarterly cash dividend.
 AMRE, Inc.
 Condensed Consolidated Statement Of Operations
 (Unaudited, in thousands, except per share amounts)
 Three-month periods ended Sept. 26, 1993 Sept. 27, 1992
 Contract revenues $67,910 $76,895
 Gross profit 47,452 56,055
 Operating income 41 6,358
 Net income 120 3,893
 Net income per share $ 0.01 $ 0.27
 Weighted average shares outstanding 12,955 13,463
 Nine-month periods ended Sept. 26, 1993 Sept. 27, 1992
 Gross profit 136,482 155,805
 Operating (loss) income (2,846) 6,805
 Net (loss) income (584) 4,685
 Net (loss) income per share $ (0.04) $ 0.33
 Weighted average shares outstanding 13,272 14,047
 -0- 11/9/93
 /CONTACT: John Vanecko, vice president and CFO of AMRE, Inc., 214-819-7000/
 (AMM)


CO: AMRE, Inc. ST: Texas IN: REA HOU SU: ERN

LD -- NY134 -- 2495 11/09/93 18:05 EST
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Publication:PR Newswire
Date:Nov 9, 1993
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