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DYNASTY CLASSICS CORP. ANNOUNCES SECOND QUARTER RESULTS

    CARSON, Calif., Sept. 13 /PRNewswire/ -- Dynasty Classics Corp. (NASDAQ: DNST) today announced the results of its operations for the second quarter ended June 30, 1993.  Net sales for the quarter amounted to $9,949,000 or a decrease of 43.4 percent from a year ago.  The majority of the decline is attributable to decreased Holiday Classics revenue.  Year to date net sales through the second quarter amounted to $19,096,000 compared to 1992 sales of $34,555,000, which results in a 44.7 percent decrease over the net sales for the same period of 1992.
    During the second quarter of 1993 Dynasty has effected some accounting treatments.  Among those treatments were to implement SFAs No. 109 into its Statement of Operations, and to return to a direct costing basis from a material burden costing basis.  The company also, at this time, felt it was necessary to write-off certain specific assets to their current realizable value.
    The company's deemphasis of the Holiday Classics Christmas products distribution, plus the economy's affect on the consumer goods business has depressed the company's market at this time.
    The company recently announced the hiring of a new President and Chief Executive Officer, Russell H. Schreck, and the resignation of its Vice President of Finance, Michael Simmons.
    The company will continue its efforts to expand its lighting products segment of its business and the bulk of the company's resources will be used to grow this area of the business.  The company is pleased with the current diversification of its current customer base.
    The net loss for the second quarter of 1993 is $14,956,000 vs. a loss of $922,000 for the second quarter 1992.  For the six months ended June 30, 1993 the company is showing a net loss of $17,632,000 vs. a loss of $1,903,000 during the first six months of 1992.  Included in this loss is approximately a $3,200,000 effect of transferring the tax loss carry forward off the balance sheet, although the great majority of the value to the company is undiminished.  Approximately $2,738,000 of the loss is reflective of the company's decision to eliminate material burden to increase future margins and more accurately reflect costs so that the company is in a stronger position to focus on its core business categories more aggressively.  The combination of increased reserves and cleansing the balance sheet also resulted in increases in the quarterly loss.
    The company has gone through a couple of downsizings, both on the expense level and on the personnel level, to size the operation to fit the level of business that is currently anticipated.  With these downsizings the company should be poised to grow and become a more competitive player in the lighting product business.
                DYNASTY CLASSICS CORP. AND SUBSIDIARIES
            Condensed Consolidated Statements of Operations
            (Dollars in Thousands, Except Per Share Amounts)
                                Three Months Ended    Six Months Ended
                                     June 30,              June 30,
                                  1993      1992        1993      1992
    Net sales                   $9,949   $17,587     $19,096   $34,555
    Net loss                  ($14,956)    ($922)   ($17,632)  ($1,903)
    Net loss per share          ($1.83)   ($0.11)     ($2.16)   ($0.23)
    Dynasty Classics designs and produces lighting products and home decor items for distribution through leading retail channels including major national retailers, home centers, discount mass merchants, warehouse clubs and catalogue showrooms.
    -0-                        9/13/93
    /CONTACT:  Russell Schreck, president and chief executive officer of Dynasty Classics Corp., 310-834-3637/
    (DNST)


CO: Dynasty An application development system for enterprise client/server environments from Dynasty Technologies, Inc., Houston, TX (www.dynasty.com). Introduced in 1993, it is a repository-driven system that supports Windows, Mac and Motif clients and NT, OS/2 and major Unix servers and databases.  Classics Corp. ST: California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W).  IN: HOU SU: ERN

JB-LM -- LA029 -- 1446 09/13/93 16:17 EDT EDT
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EDT Eastern Daylight Time

EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York

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Copyright 1993 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Sep 13, 1993
Words:595
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