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

 DAY RUNNER(R) ANNOUNCES INCREASED SALES AND EARNINGS
 FOR THE THIRD QUARTER OF 1992
 FULLERTON, Calif., Nov. 2 /PRNewswire/ -- Day Runner, Inc. (NASDAQ: DAYR) today reported increased sales and earnings for the third quarter of 1992. The company reported net income of $1,728,000, or $0.29 per share, up 48.7 percent from $1,162,000, or $0.25 per share, in the third quarter of 1991. Sales for the third quarter of 1992 were $20,532,000, up 32.7 percent from $15,467,000 for the third 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 favorably affected sales and net income for the last two quarters of each year.
 Sales for the nine months ended Sept. 30, 1992, were $48,443,000, up 36.3 percent from $35,535,000 for the comparable period of the prior year. Net income for the nine months was $2,561,000, or $0.45 per share, up 50.0 percent from $1,707,000, or $0.38 per share, for the comparable period of 1991.
 Day Runner attributed the growth in sales for the third quarter primarily to higher sales of personal organizers and refills (including calendars) to mass market, office products, international and wholesale club customers. Sales to mass market customers increased significantly from $158,000 for the third quarter of 1991 to approximately $3.1 million for the third quarter of 1992. Sales to office products customers were up 10.5 percent (amounting to approximately $12.9 million); sales to international distributors were up 54.9 percent (amounting to approximately $1.5 million); and sales to wholesale clubs were up 32.4 percent (amounting to approximately $1.7 million).
 Gross profit was $10,669,000 for the 1992 third quarter, compared with $8,200,000 for the same period of 1991. Gross profit decreased from 53.0 percent to 52.0 percent as a percentage of sales, however, primarily as a result of start-up costs associated with expanding capacity to meet increased demand and secondarily as a result of the Company's increased sales to mass market customers and the product mix changes and pricing pressures associated with those sales.
 Total operating expenses for the 1992 third quarter declined as a percentage of sales from 39.0 percent to 37.3 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 the company's increased ability to absorb such expenses as a result of the growth in sales and 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 third quarter increased to 6,045,000, compared with 4,852,000 for the third quarter of 1991.
 Mark Vidovich, chairman and chief executive officer, commented, "We are pleased with the growth in Day Runner's sales and earnings and are especially gratified by our continued success in the mass market. We also see continued opportunities for growth 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 7,000 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.
 DAY RUNNER, INC.
 (In thousands, except per share amounts)
 Three Months Ended Nine Months Ended
 Sept. 30, Sept. 30,
 1991 1992 1991 1992
 (unaudited) (unaudited)
 Consolidated Income
 Statement Data:
 Sales $15,467 $20,532 $35,535 $48,443
 Cost of goods sold 7,267 9,863 16,886 23,719
 Gross profit 8,200 10,669 18,649 24,724
 Operating expenses:
 Selling, marketing
 and distribution 4,347 5,697 10,920 14,531
 General and
 administrative 1,371 1,566 3,687 4,414
 Product development 307 387 757 1,192
 Total operating
 expenses 6,025 7,650 15,364 20,137
 Income from operations 2,175 3,019 3,285 4,587
 Interest expense - net 174 39 346 172
 Income before
 income taxes 2,001 2,980 2,939 4,415
 Provision for
 income taxes 839 1,252 1,232 1,854
 Net income $1,162 $1,728 $1,707 $2,561
 Earnings per share $0.25 $0.29 $0.38 $0.45
 Weighted average
 number of common
 and common
 equivalent shares 4,852 6,045 4,852 5,744
 Sept. 30, Dec. 31, Sept. 30,
 1991 1991 1992
 (unaudited) (unaudited)
 Consolidated Balance
 Sheet Data:
 Working capital $3,797 $5,129 $19,876
 Accounts receivable - net 7,932 6,706 9,586
 Inventories 7,692 8,696 19,997
 Total assets 20,900 20,951 37,343
 Short-term debt 5,859 5,970 3,012
 Long-term liabilities 111 154 114
 Shareholders' equity 4,815 6,400 22,532
 Product Category:
 Three Months Ended Sept. 30,
 1991 1992
 (unaudited)
 Organizers $8,382 54.2 pct $11,494 56.0 pct
 Planners 1,573 10.2 1,766 8.6
 Refills (including
 calendars) 5,298 34.2 6,885 33.5
 Other 214 1.4 387 1.9
 Total $15,467 100.0 pct $20,532 100.0 pct
 Nine Months Ended Sept. 30,
 1991 1992
 (unaudited)
 Organizers $20,612 58.0 pct $28,235 58.3 pct
 Planners 4,576 12.9 4,340 9.0
 Refills (including
 calendars) 9,822 27.6 15,101 31.1
 Other 525 1.5 767 1.6
 Total $35,535 100.0 pct $48,443 100.0 pct
 Distribution Channel:
 Three Months Ended Sept. 30,
 1991 1992
 (unaudited)
 Office products channel $11,676 75.5 pct $12,901 62.8 pct
 Mass market 158 1.0 3,056 14.9
 Wholesale clubs 1,255 8.1 1,661 8.1
 Gift/stationery and
 specialty stores 1,188 7.7 1,075 5.2
 International distributors 936 6.1 1,450 7.1
 Other channels 254 1.6 389 1.9
 Total $15,467 100.0 pct $20,532 100.0 pct
 Nine Months Ended Sept. 30,
 1991 1992
 (unaudited)
 Office products channel $26,292 74.0 pct $30,407 62.8 pct
 Mass market 273 0.8 7,564 15.6
 Wholesale clubs 3,250 9.1 4,247 8.8
 Gift/stationery and
 specialty stores 2,580 7.3 2,379 4.9
 International distributors 1,601 4.5 2,257 4.6
 Other channels 1,539 4.3 1,589 3.3
 Total $35,535 100.0 pct $48,443 100.0 pct
 -0- 11/2/92
 /EDITOR'S NOTE: (R) Registered trademark of Day Runner, Inc./
 /CONTACT: Judy Tucker of Day Runner, 714-680-3500, ext. 171, or (fax) 714-680-0540/
 (DAYR) CO: Day Runner Inc. ST: California IN: HOU SU: ERN


JL-BT -- LA006 -- 7537 11/02/92 08:12 EST
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