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DAY RUNNER(R) ANNOUNCES INCREASED SALES AND EARNINGS FOR THE SECOND QUARTER OF 1992

 DAY RUNNER(R) ANNOUNCES INCREASED SALES AND EARNINGS
 FOR THE SECOND QUARTER OF 1992
 FULLERTON, Calif., July 29 /PRNewswire/ -- Day Runner Inc. (NASDAQ: DAYR) today reported increased sales and earnings for the second quarter of 1992. The company reported net income of $392,000, or $0.07 per share, compared with $188,000, or $0.05 per share, in the second quarter of 1991. Sales for the second quarter of 1992 were $13,381,000, compared with $9,742,000 for the second quarter of the prior year. Day Runner's financial results historically have exhibited significant seasonality due to its customers' and users' buying patterns, which have adversely affected sales and net income for the first two quarters of each year.
 Sales for the six months ended June 30, 1992 were $27,911,000, up 39.1 percent from $20,068,000 for the comparable period of the prior year. Net income for the six months was $833,000, or $0.15 per share, up 52.8 percent from $545,000 or $0.13 per share for the comparable period of 1991.
 Day Runner attributed the 37.4 percent growth in sales for the second quarter primarily to higher sales of personal organizers and refills (including calendars) to mass market, office products and wholesale club customers. Sales to mass market customers increased significantly from $94,000 for the second quarter of 1991 to approximately $2.0 million. Sales to office products customers were up 18.3 percent (amounting to approximately $8.4 million); and sales to wholesale clubs were up 46.8 percent (amounting to approximately $1.3 million).
 Gross profit was $6,684,000 for the 1992 second quarter, compared with $5,071,000 for the same period of 1991. Gross profit decreased as a percentage of sales, however, primarily as a result of the company's increased sales to mass market customers and product mix changes and pricing pressures associated with those sales and start- up costs associated with expanding capacity to meet increased demand.
 Total operating expenses for the 1992 second quarter declined as a percentage of sales from 47.8 percent to 44.9 percent. Selling, marketing and distribution expenses decreased as a percentage of sales primarily due to reduced selling expenses associated with certain large office products and mass market accounts. General and administrative expenses decreased as a percentage of sales primarily due to lower provision for losses on accounts receivable.
 In March 1992, the company completed its initial public offering, including 1,000,000 shares offered by the company at a price to the public of $15 per share, resulting in net proceeds of approximately $12.8 million. Primarily as a result of the public offering, the weighted average number of shares deemed outstanding for the second quarter increased to 6,018,000 compared with 4,853,000 for the second quarter of 1991.
 Mark Vidovich, chairman and chief executive officer, commented, "We continue to be pleased with Day Runner's performance. We are particularly gratified by our success in the mass market and also see continued opportunities for growth for the year in a number of our other channels of distribution, including the office products channel and wholesale clubs."
 Day Runner is the leading developer, manufacturer and marketer of paper-based personal organizers for the retail market. The company markets three lines of personal organizers, six planners and a wide variety of refills and accessories. Day Runner's products are carried by more than 6,000 retail stores across the United States, and its Day Runner System line of personal organizers is the nationwide best-selling line of paper-based organizers through retail stores.
 (R) Registered trademark of Day Runner Inc.
 DAY RUNNER, INC.
 (In thousands, except per share amounts)
 (unaudited)
 Three Months Ended Six Months Ended
 June 30, June 30,
 1991 1992 1991 1992
 Consolidated Income Statement Data:
 Sales $9,742 $13,381 $20,068 $27,911
 Cost of goods sold 4,671 6,697 9,619 13,856
 Gross profit 5,071 6,684 10,449 14,055
 Operating expenses:
 Selling, marketing
 and distribution 3,206 4,157 6,573 8,834
 General and administrative 1,211 1,438 2,316 2,847
 Product development 240 410 450 805
 Total operating expenses 4,657 6,005 9,339 12,486
 Income from operations 414 679 1,110 1,569
 Interest expense 91 3 172 133
 Income before income taxes 323 676 938 1,436
 Provision for income taxes 135 284 393 603
 Net income $188 $392 $545 $833
 Earnings per share $0.05 $0.07 $0.13 $0.15
 Weighted average number
 of common and common
 equivalent shares 4,853 6,018 4,853 5,589
 Dec. 31, June 30,
 1991 1992
 Consolidated Balance Sheet Data:
 (unaudited)
 Working capital $5,129 $18,305
 Accounts receivable - net 6,706 5,207
 Inventories 8,696 16,387
 Total assets 20,951 28,971
 Short-term debt 5,970 501
 Long-term liabilities 154 136
 Shareholders' equity 6,400 20,462
 DAY RUNNER INC.
 (unaudited)
 Product Category:
 Three Months Ended June 30,
 1991 1992
 Organizers $5,798 59.5 pct. $7,907 59.1 pct.
 Planners 1,499 15.4 1,078 8.1
 Refills (including
 calendars) 2,211 22.7 4,273 31.9
 Other 234 2.4 123 0.9
 Total $9,742 100.0 pct. $13,381 100.0 pct.
 Six Months Ended June 30,
 1991 1992
 Organizers $12,230 60.9 pct. $16,741 60.0 pct.
 Planners 3,003 15.0 2,574 9.2
 Refills (including
 calendars) 4,524 22.5 8,216 29.4
 Other 311 1.6 380 1.4
 Total $20,068 100.0 pct. $27,911 100.0 pct.
 Distribution Channel:
 Three Months Ended June 30,
 1991 1992
 Office products
 channel $7,137 73.2 pct. $8,440 63.1 pct.
 Mass market 94 1.0 1,987 14.8
 Wholesale clubs 869 8.9 1,276 9.5
 Gift/stationery and
 specialty stores 699 7.2 640 4.8
 International
 distributors 283 2.9 559 4.2
 Other channels 660 6.8 479 3.6
 Total $9,742 100.0 pct. $13,381 100.0 pct.
 Six Months Ended June 30,
 1991 1992
 Office products
 channel $14,616 72.8 pct. $17,506 62.7 pct.
 Mass market 115 0.6 4,508 16.1
 Wholesale clubs 1,995 10.0 2,586 9.3
 Gift/stationery and
 specialty stores 1,392 6.9 1,304 4.7
 International
 distributors 665 3.3 807 2.9
 Other channels 1,285 6.4 1,200 4.3
 Total $20,068 100.0 pct. $27,911 100.0 pct.
 -0- 7/29/92 R
 /CONTACT: Judy Tucker of Day Runner, 714-680-3500, ext. 171/
 (DAYR) CO: Day Runner Inc. ST: California IN: SU: ERN


CH -- LA026 -- 4805 07/29/92 17:14 EDT
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Date:Jul 29, 1992
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