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DAY RUNNER(R) ANNOUNCES RECORD SALES AND EARNINGS FOR 1992

 FULLERTON, Calif., Feb. 10 /PRNewswire/ -- Day Runner Inc. (NASDAQ: DAYR) today reported record sales and earnings for the year ended Dec. 31, 1992. The company reported net income of $4,453,000, or $0.77 per share, up 35.3 percent compared with $3,292,000, or $0.72 per share, for 1991. The amount of the increase in net income per share was held down by the increase in the weighted average number of shares deemed outstanding to 5,799,000 for 1992 compared to 4,852,000 for 1991, an increase due primarily to the company's initial public offering in March 1992. 1992 sales were $71,241,000, up 34.0 percent from $53,160,000 for 1991.
 Day Runner attributed the growth in sales for the year primarily to higher sales of personal organizers and refills (including calendars) to mass market and office products customers. Sales to mass market customers increased significantly from $711,000 for 1991 to over $9 million for 1992, and sales to office products customers were up 20.0 percent to approximately $47.2 million.
 "We are pleased with the growth in Day Runner's 1992 sales and earnings," commented Mark Vidovich, chairman and chief executive officer, "and feel particularly good about our success in the mass market. We see opportunities for continued growth for 1993 in a number of our channels of distribution, including the mass market and office products."
 Gross profit for 1992 was $35,729,000, compared with $28,227,000 for 1991. Gross profit decreased from 53.1 percent to 50.2 percent as a percentage of sales, however, primarily as a result of the company's increased sales to mass market customers and the pricing pressures, product mix changes and start-up costs associated with those sales and secondarily as a result of expanding manufacturing capacity to meet increased demand.
 Total operating expenses for 1992 declined as a percentage of sales from 41.5 percent to 39.2 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 the fact that provision for losses on accounts receivable declined as a percentage of sales.
 Sales for the fourth quarter of 1992 were $22,798,000, up 29.4 percent from $17,625,000 for the fourth quarter of the prior year. Net income for the quarter was $1,892,000, up 19.4 percent from $1,585,000 for the fourth quarter of 1991. Primarily as a result of the company's March 1992 initial public offering, the weighted average number of shares deemed outstanding for the fourth quarter increased to 6,069,000 compared with 4,851,000 for the fourth quarter of 1992, causing net income per share to decline from $0.33 in the fourth quarter of 1991 to $0.31 in the fourth quarter of 1992.
 Gross profit for the fourth quarter of 1992 was $11,005,000, compared with $9,578,000 for the fourth quarter of the prior year, but decreased from 54.3 percent to 48.3 percent as a percentage of sales. This decrease was due primarily to increased inventory reserves and secondarily to the company's increased sales to mass market customers and the pricing pressures and product mix changes associated with those sales.
 Total operating expenses for the 1992 fourth quarter declined as a percentage of sales from 38.0 percent to 34.3 percent due primarily to reduced selling expenses associated with certain large office products and mass market accounts and secondarily to the company's increased ability to absorb selling, marketing and distribution expenses as a result of the growth in sales.
 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.
 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 over 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 Year Ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 (unaudited)
 Consolidated Income
 Statement Data:
 Sales $22,798 $17,625 $71,241 $53,160
 Cost of goods sold 11,793 8,047 35,512 24,933
 Gross profit 11,005 9,578 35,729 28,227
 Operating expenses:
 Selling, marketing
 and distribution 5,594 4,963 20,125 15,883
 General and
 administrative 1,853 1,384 6,266 5,071
 Product development 368 355 1,560 1,112
 Total operating
 expenses 7,815 6,702 27,951 22,066
 Income from operations 3,190 2,876 7,778 6,161
 Interest expense - net 57 147 229 493
 Income before
 income taxes 3,133 2,729 7,549 5,668
 Provision for
 income taxes 1,241 1,144 3,096 2,376
 Net income $1,892 $1,585 $4,453 $3,292
 Earnings per share $0.31 $0.33 $0.77 $0.72
 Weighted average
 number of common
 and common
 equivalent shares 6,069 4,851 5,799 4,852
 Dec. 31, Dec. 31,
 1992 1991
 Consolidated Balance
 Sheet Data:
 Working capital $22,875 $5,129
 Accounts receivable - net 7,734 6,706
 Inventories 18,567 8,696
 Total assets 35,955 20,951
 Short-term debt 499 5,970
 Long-term liabilities 96 154
 Shareholders' equity 25,686 6,400
 Product Category:
 Three Months Ended Dec. 31,
 1992 1991
 (unaudited)
 Organizers $13,700 60.1 pct $11,769 66.8 pct
 Planners 2,952 12.9 1,687 9.6
 Refills (including
 calendars) 5,877 25.8 3,960 22.4
 Other 269 1.2 209 1.2
 Total $22,798 100.0 pct $17,625 100.0 pct
 Year Ended Dec. 31,
 1992 1991
 (unaudited)
 Organizers $41,935 58.9 pct $32,381 60.9 pct
 Planners 7,292 10.2 6,263 11.8
 Refills (including
 calendars) 20,978 29.4 13,782 25.9
 Other 1,036 1.5 734 1.4
 Total $71,241 100.0 pct $53,160 100.0 pct
 Distribution Channel:
 Three Months Ended Dec. 31,
 1992 1991
 (unaudited)
 Office products channel $16,808 73.7 pct $13,066 74.1 pct
 Mass market 1,469 6.4 438 2.5
 Wholesale clubs 2,013 8.8 2,118 12.0
 Gift/stationery and
 specialty stores 813 3.6 1,068 6.1
 International distributors 650 2.9 802 4.5
 Other channels 1,045 4.6 133 0.8
 Total $22,798 100.0 pct $17,625 100.0 pct
 Year Ended Dec. 31,
 1992 1991
 (unaudited)
 Office products channel $47,215 66.2 pct $39,358 74.0 pct
 Mass market 9,033 12.7 711 1.3
 Wholesale clubs 6,260 8.8 5,368 10.1
 Gift/stationery and
 specialty stores 3,192 4.5 3,648 6.9
 International distributors 2,907 4.1 2,403 4.5
 Other channels 2,634 3.7 1,672 3.2
 Total $71,241 100.0 pct $53,160 100.0 pct
 -0- 2/10/93
 /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

EH-KJ -- LA024 -- 5368 02/10/93 17:03 EST
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Date:Feb 10, 1993
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