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GIBSON GREETINGS THIRD QUARTER AND NINE MONTHS 1992 RESULTS

 GIBSON GREETINGS THIRD QUARTER AND NINE MONTHS 1992 RESULTS
 CINCINNATI, Nov. 4 /PRNewswire/ -- Gibson Greetings, Inc., (NASDAQ: GIBG) today announced results for the third quarter and first nine months of 1992. The results reflect the major negative impact of Phar-Mor, Inc.'s (Phar-Mor) Chapter XI filing in August, 1992. Phar-Mor was the company's largest and fastest growing customer. In 1991, Phar- Mor accounted for approximately 13 percent of total revenues.
 For the third quarter ended Sept. 30, 1992, revenues were $115.6 million, down 24.2 percent, with a loss before income taxes of $20.1 million, compared to income before income taxes of $21.2 million for the comparable period last year. The net loss was $12.3 million, or $.75 per share compared to net income of $13.0 million or $.81 per share for the like period last year.
 Included in the third quarter were one-time expenses related to the Phar-Mor bankruptcy which aggregated $27.4 million before income taxes and $17.0 million after income taxes or $1.05 per share. These expenses included a bad debt provision for the outstanding pre-petition account receivable balance, the write-off of the unamortized cost of greeting card fixtures and long-term sales agreements. Additionally, shipments to Phar-Mor in the third quarter of 1992 were more than 40 percent below the comparable 1991 period. Subsequent shipment levels have increased under "cash-in-advance" payment programs. In addition, work force restructuring charges of $1.4 million were incurred primarily related to reductions in 1992 sales to Phar-Mor, the impact of its announced store closing program on previously anticipated 1993 sales and other charges designed to streamline operations.
 For the nine-month period ended Sept. 30, 1992, revenues were $273.7 million, down 15.1 percent, while the loss before income taxes and cumulative effect of accounting change (extraordinary charge) was $14.0 million, compared to income before income taxes of $30.6 million for the comparable period last year. The net loss before extraordinary charge was $8.7 million, compared to net income of $19.0 million from the like period last year.
 An extraordinary charge of $2.5 million, or $.15 per share, net of income taxes, reflects the cumulative impact of FAS 106 concerning the one-time cost of accumulated plan benefit obligations associated with retiree's medical benefits. Under the existing plan, ongoing annual expenses are expected to be approximately $.5 million. The net loss after extraordinary charges was $11.2 million or $.69 per share versus net income of $19.0 million or $1.18 per share for the like period last year.
 Benjamin J. Sottile, chairman, president and chief executive officer, stated that decreases in revenues for the third quarter and first nine months of 1991 were principally attributable to the impact of the Phar-Mor bankruptcy. However, revenues of seasonal gift wrap were also below the prior periods.
 Sottile added that the loss before income taxes and extraordinary charge for the third quarter and nine months also reflected expenses incurred in establishing a U.K. based subsidiary, Gibson Greetings International Limited. Interest expenses declined $.8 million during the third quarter and $1.4 million for the nine months due to lower interest rates and decreased levels of borrowings.
 Sottile emphasized that the company's balance sheet remained very strong and that its credit ratings for commercial paper borrowings remained at A2P2, the second highest category.
 At Sept. 30, short-term debt was $29.5 million compared to $84.5 million for the like period last year reflecting decreased capital expenditures, lower working capital requirements related to decreased sales and decreased expenditures for other assets. Shareholders' equity was $287.0 million, up 3.1 percent from the year ago period, equaling $17.86 per share.
 Sottile added that savings resulting from recent work force restructuring programs are expected to contribute to the company's return to profitability, particularly in 1993. Also, since Phar-Mor has recently obtained "debtor-in-possession" bank financing, shipments are expected to return to more normal levels to the stores remaining open.
 In order to take advantage of the expanding economy in Mexico, the company has initiated plans to acquire certain assets of its former distributor, Paginaonce, based in Mexico City. Existing management will be retained and initial marketing efforts have commenced as Gibson de Mexico S.A. de C.V.
 GIBSON GREETINGS, INC.
 SUMMARY CONSOLIDATED INCOME STATEMENT DATA
 (Amounts in thousands except per share amounts - Unaudited)
 Three Months (A) Nine Months (A)
 Ended Sept. 30 Ended Sept. 30
 1992 1991 1992 1991
 Revenues $115,566 $152,508 $273,720 $322,551
 Income (Loss) Before
 Income Taxes and
 Cumulative Effect of
 Accounting Change $(20,065) $ 21,160 $(14,013) $ 30,643
 Cumulative Effect of
 Accounting Change,
 Net of Income Taxes $ -- $ -- $ (2,487) $ --
 Net Income (Loss) $(12,329) $ 13,049 $(11,187) $ 18,988
 Net Income (Loss) Per
 Share Before Cumulative
 Effect of Accounting
 Change $ (.75) $ .81 $ (.54) $ 1.18
 Net Income (Loss) Per
 Share $ (.75) $ .81 $ (.69) $ 1.18
 Average Common Shares
 and Equivalents
 Outstanding 16,065 16,026 16,121 16,029
 (A) -- Because the company's business is seasonal in nature, the results of interim periods are not necessarily indicative of yearly results.
 -0- 11/4/92
 /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 -- CL008 -- 2423 11/04/92 11:14 EST
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Date:Nov 4, 1992
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