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DAY RUNNER(R) ANNOUNCES THIRD QUARTER RESULTS

 FULLERTON, Calif., Oct. 25 /PRNewswire/ -- Day Runner Inc. (NASDAQ: DAYR) today reported sales and earnings for the third quarter of 1993. The Company reported sales of $21,579,000, compared with $20,532,000 for the third quarter of the prior year. Net income was $1,320,000, or $0.22 per share, compared with $1,728,000, or $0.29 per share, in the third quarter of 1992.
 Sales for the nine months ended Sept. 30, 1993, were $49,604,000, compared with $48,443,000 for the comparable period of the prior year. Net income for the nine months was $2,393,000, or $0.40 per share, compared with $2,561,000, or $0.45 per share, for the first nine months of 1992. Net income for the 1993 nine-month period includes a one-time benefit of $350,000 ($0.06 per share) recorded in the first quarter of 1993 for the Company's change in its method of accounting for income taxes as required by Statement of Financial Accounting Standards No. 109.
 Sales in the third quarter of 1993 grew by 5.1 percent from the 1992 third quarter. Sales to office products customers increased 4.9 percent to $13.5 million in the third quarter of 1993 from $12.9 million in the third quarter of 1992, while sales to mass market customers rose slightly to $4.8 million in the third quarter of 1993 from $4.7 million in the 1992 third quarter.
 Mark Vidovich, Day Runner's chairman and chief executive officer, commented, "We believe that our third quarter results do not fully reflect the solid groundwork we've laid thus far during 1993, and we continue to be optimistic about our prospects for the year as a whole.
 "During the third quarter we began to see renewed growth in a number of key distribution channels, including national office products wholesalers and office products superstores, although growth in our sales to these customers has not yet returned to historical levels. As we've said, we believe the growth in our sales to office products superstores has been constrained during the year by the continued focus of larger retailers on minimizing the inventory they carry. We belive we are continuing to see a gradual lessening of the impact of the tightening of inventories on our sales. The fact that certain of our large office products customers have provided us with figures that show that their sales of our products were up significantly from the first nine months of 1992 gives us good reason to be optimistic.
 "We are also optimistic about the mass market channel. Our sales to mass market customers were up only slightly during the quarter," Mr. Vidovich continued, "primarily because of distribution changes that adversely affected the timing and flow of orders. We believe that these distribution changes should have a positive long-term effect on growth in our sales to the mass market.
 "In addition, we have just begun to ship two new lines of personal organizers: PRO Business System(TM), designed for business and professional users, and d'Affaires(TM), aimed at department and leather and luggage store customers. We believe these new products should stimulate sales in office products and specialty channels," Mr. Vidovich concluded.
 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 second two quarters of each year. Although past results may not hold true for the current year, from 1990 through 1992, sales for the third and fourth quarters represented from 61 percent to 64 percent of the year's total sales, and net income for those quarters accounted for 81 percent to 94 percent of the net income for the year.
 Gross profit was $10,588,000 for the 1993 third quarter, compared with $10,669,000 for the same period of 1992. Gross profit decreased as a percentage of sales from 52.0 percent to 49.1 percent primarily due to the Company's decreased ability to absorb certain fixed expenses as a result of lower levels of production.
 Total operating expenses for the 1993 third quarter increased as a percentage of sales from 37.3 percent to 38.7 percent. Selling, marketing and distribution expenses decreased slightly as a percentage of sales from 27.8 percent to 27.4 percent. General and administrative expenses increased as a percentage of sales from 7.6 percent to 9.0 percent primarily as a result of increases in miscellaneous general and administrative costs, and product development expenses increased as a percentage of sales from 1.9 percent to 2.3 percent primarily due to higher personnel costs.
 Day Runner is the leading developer, manufacturer and marketer of paper-based personal organizers for the retail market. The Company also markets planners and a wide variety of refills and accessories. Day Runner's products are carried by over 10,000 retail stores across the U.S., 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,
 1993 1992 1993 1992
 (Unaudited) (Unaudited)
 Consolidated Income
 Statement Data:
 Sales $21,579 $20,532 $49,604 $48,443
 Cost of goods sold 10,991 9,863 25,266 23,719
 Gross profit 10,588 10,669 24,338 24,724
 Operating expenses:
 Selling, marketing
 and distribution 5,914 5,697 14,676 14,531
 General and
 administrative 1,944 1,566 4,797 4,414
 Product development 485 387 1,397 1,192
 Total operating
 expenses 8,343 7,650 20,870 20,137
 Income from
 operations 2,245 3,019 3,468 4,587
 Interest expense 9 39 6 172
 Income before
 income taxes
 and cumulative
 effect of
 accounting change 2,236 2,980 3,462 4,415
 Provision for
 income taxes 916 1,252 1,419 1,854
 Income before
 cumulative effect of
 accounting change 1,320 1,728 2,043 2,561
 Cumulative effect
 of change in accounting
 for income taxes 0 0 350 0
 Net income $1,320 $1,728 $2,393 $2,561
 Earnings per
 common and common
 equivalent share:
 Income before
 cumulative effect of
 accounting change $0.22 $0.29 $0.34 $0.45
 Cumulative effect
 of change in
 accounting for
 income taxes 0 0 0.06 0
 Earnings per share $0.22 $0.29 $0.40 $0.45
 Weighted average
 number of common
 and common
 equivalent shares 6,078 6,045 6,058 5,744
 Sept. 30, Dec. 31, Sept. 30,
 1993 1992 1992
 (Unaudited) (Unaudited)
 Consolidated Balance
 Sheet Data:
 Working capital $24,973 $22,875 $19,876
 Accounts receivable - net 11,238 7,734 9,586
 Inventories 18,216 18,567 19,997
 Total assets 40,111 35,955 37,343
 Short-term debt 225 499 3,012
 Long-term liabilities 294 96 114
 Stockholders' equity 28,916 25,686 22,532
 Three Months Ended Sept. 30,
 1993 1992
 (Unaudited)
 Product Category:
 Organizers $11,691 54.2 pct $11,494 56.0 pct
 Refills, including
 calendars 8,009 37.1 6,885 33.5
 Planners 1,621 7.5 1,766 8.6
 Other 258 1.2 387 1.9
 Total $21,579 100.0 pct $20,532 100.0 pct
 Nine Months Ended Sept. 30,
 1993 1992
 (Unaudited)
 Product Category:
 Organizers $28,990 58.4 pct $28,235 58.3 pct
 Refills, including
 calendars 16,012 32.3 15,101 31.1
 Planners 4,154 8.4 4,340 9.0
 Other 448 0.9 767 1.6
 Total $49,604 100.0 pct $48,443 100.0 pct
 Three Months Ended Sept. 30,
 1993 1992
 (Unaudited)
 Distribution Channel:
 Office products channel $13,531 62.7 pct $12,901 62.8 pct
 Mass market 4,794 22.2 4,717 23.0
 International

 customers 1,019 4.7 1,450 7.1
 Other channels 2,235 10.4 1,464 7.1
 Total $21,579 100.0 pct $20,532 100.0 pct
 Nine Months Ended Sept. 30,
 1993 1992
 (Unaudited)
 Distribution Channel:
 Office products channel $30,155 60.8 pct $30,407 62.8 pct
 Mass market 11,209 22.6 11,811 24.4
 International
 customers 2,300 4.6 2,257 4.6
 Other channels 5,940 12.0 3,968 8.2
 Total $49,604 100.0 pct $48,443 100.0 pct
 (R)Registered trademark of Day Runner Inc.
 -0- 10/25/93
 /CONTACT: Judy Tucker of Day Runner Inc., 714-680-3500, ext. 171, or Doug Sherk or Jenifer Kirtland, 415-296-7383, or Betsy Brod or Miriam Adler, 212-850-5600, all of Morgen-Walke Associates Inc./
 (DAYR)


CO: Day Runner Inc. ST: California IN: HOU SU: ERN

JB-MF -- LA035 -- 6481 10/25/93 16:04 EDT
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Date:Oct 25, 1993
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