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GIBSON GREETINGS, INC. SECOND QUARTER AND FIRST HALF 1992 RESULTS

 GIBSON GREETINGS, INC.
 SECOND QUARTER AND FIRST HALF 1992 RESULTS
 CINCINNATI, July 30 /PRNewswire/ -- Gibson Greetings, Inc. (NASDAQ: GIBG) today announced results for the second quarter and first half of 1992.
 Revenues for the second quarter ended June 30, 1992 were $78.7 million, down 8.3 percent from the comparable period in 1991. Income before income taxes was $2.1 million, down 23.7 percent from the second quarter of 1991. Net income of $1.3 million was 29.2 percent below the like period of 1991, with net income per share of $.08 versus $.11, down 27.3 percent. The effective tax rate was 38.7 percent compared to 34.0 percent in the second quarter of 1991.
 For the six months ended June 30, 1992, revenues were $158.2 million, down 7.0 percent, while income before income taxes was $6.3 million, down 33.6 percent from the first half of 1991. Net income was $3.8 million, down 36.4 percent from the like period in 1991, with net income per share of $.23 versus $.37, down 37.8 percent. The effective tax rate was 40.0 percent compared to 37.4 percent for the first half of 1991.
 Benjamin J. Sottile, chairman, president and chief executive officer, stated that the decrease in revenues in the second quarter was attributable primarily to certain seasonal gift wrap products in the month of June. Later requested shipping dates for certain seasonal products adversely effected revenues for June, however, will benefit the third quarter. Efforts to reduce future returns of unsold seasonal cards have continued and resulted in more conservative shipment levels. In addition, a sluggish retailing environment has adversely effected shipments of everyday products to some accounts.
 For both the second quarter and first half, the decline in revenues was partially offset by a lower cost of product sold ratio and decreased interest expense, net. Howver, operating expense ratios increased due to the start-up costs associated with the United Kingdom based subsidiary and the elimination of the credit associated with the excess of fair value of assets acquired in 1982 over their cost. Also, in anticipation of increased sales of Christmas gift wrap products in the fourth quarter of 1992, related expenses were incurred which exceeded similar expenses in the first half of 1991. A higher effective tax rate also adversely affected the net income comparisons.
 Sottile commented that the first half typically generates a relatively small percentage of the total year's net income and that results in the last half should improve significantly over the first half. For the balance of the year, the company expects to maintain its historical highly seasonal quarterly patterns with the fourth quarter generating the largest percent of annual revenues and net income.
 Compared to June 30, 1991, the company's trade receivables decreased 43.6 percent to $33.7 million reflecting, in part, improved collections while inventories increased 4.9 percent to $183.8 million. Long-term debt decreased $1.6 million to $69.8 million while debt due within one year decreased $28.6 million to $1.6 million. Cash and equivalents increased to $15.5 million.
 Sottile added that the company's strengthened balance sheet was encouraging and emphasized that stockholders' equity at June 30, 1992 increased 13.8 percent to $303.1 million compared to $266.4 million on the year ago date.
 A regular quarterly cash dividend of $.10 per share, representing an 11.1 percent increase, was paid on June 12th to shareholders of record on May 29, 1992.
 GIBSON GREETINGS, INC.
 SUMMARY CONSOLIDATED INCOME STATEMENT DATA
 (Amounts in thousands, except per share amounts - Unaudited)
 Three Months (A)
 Ended June 30,
 1992 1991
 Revenues $ 78,736 $ 85,855
 Income Before Income Taxes 2,083 2,730
 Net Income 1,276 1,803
 Net Income Per Share $.08 $.11
 Average Common Shares and
 Equivalents Outstanding 16,132 16,059
 Six Months (A)
 Ended June 30,
 1992 1991
 Revenues $158,164 $170,043
 Income Before Income Taxes 6,293 9,483
 Net Income 3,776 5,939
 Net Income Per Share $.23 $.37
 Average Common Shares and
 Equivalents Outstanding 16,148 16,031
 (A) - Because the company's business is seasonal in nature, the results of interim periods are not necessarily indicative of yearly results.
 -0- 7/30/92
 /CONTACT: Ward A. Cavanaugh, vice president-finance of Gibson Greetings, Inc., 513-841-6675/
 (GIBG) CO: Gibson Greetings, Inc. ST: Ohio IN: REA PAP SU: ERN


BM -- CL012 -- 5045 07/30/92 11:24 EDT
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Publication:PR Newswire
Date:Jul 30, 1992
Words:750
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