K2 Inc. reports sales and earnings for the first quarter ended March 31, 1997.

LOS ANGELES--(BUSINESS WIRE)--April 22, 1997--K2 Inc. (NYSE:KTO) (formerly Anthony Industries Inc.) Tuesday reported record sales and earnings for the first quarter ended March 31, 1997.

Net income for the period rose 22 percent to $5.9 million, or 35 cents per share, from $4.8 million, or 29 cents per share, a year ago. Sales for the quarter advanced 8 percent to $171.5 million. Sales of sporting goods and other recreational products rose 13 percent, while sales of industrial products declined 2 percent.

Commenting on the first-quarter results, Richard M. Rodstein, president and chief executive officer, said: ''K2 in-line skates continued to lead our sales and earnings growth in the sporting-goods and other recreational-products segment.

''Sales of K2 skates increased nearly 150 percent from the prior year, reflecting overall market growth in Europe and expanded worldwide acceptance of our soft boot as the high-performance alternative in the in-line skate market.

''A strong domestic ski market and our continued focus on the higher-margin, high-performance sector of the worldwide ski market also contributed to the segment's earnings improvement. While sales of snowboards increased modestly, snowboard earnings were negatively impacted by sales of closeouts and increased marketing spending.

''Sales of our core fishing-tackle products also rose, although at a more moderate rate. Fishing-tackle sales worldwide, however, declined due to the absence of a special one-year fishing-tackle promotional program in effect a year ago.

''Profits of full-suspension mountain bikes declined due to the impact of bikes sold at closeout prices during the quarter. First- quarter sales of Stearns active water-sports products were soft due to shifts in the ordering patterns of several large customers; however, a favorable mix offset the margin impact of the reduced sales volume.''

Rodstein added: ''Our industrial-products group posted a modest decline in sales and profits because of lower shipments of Simplex residential-building products and higher raw-material costs. The overall impact, however, was substantially offset by process improvements achieved in the manufacture of our fiber-glass light poles.''

K2 is a leading designer, manufacturer and marketer of brand- name sporting goods and recreational and industrial products. The company's sporting goods and recreational products include well-known names such as K2 and Olin alpine skis, K2 snowboards, K2 Exotech and Endotech in-line skates, Stearns sports equipment, Shakespeare fishing tackle, ProFlex mountain bikes, Dana Design and K2 Outdoor backpacks and Hilton active apparel.

K2's industrial products include Thermo-ply residential insulative sheathing and, under the Shakespeare brand, extruded monofilaments, marine antennas and fiber-glass light and power-line poles. -0-

                              K2 Inc.
                       Summary of Operations
                            (unaudited)
            (in thousands except for per-share figures)

                                          First Quarter
                                         ended March 31,
                                        1997         1996

Net sales                            $ 171,541    $ 158,853
Cost of products sold                  125,160      117,470
 Gross profit                           46,381       41,383

Selling expenses                        22,391       19,132
General and administrative expenses     13,270       13,074
 Operating income                       10,720        9,177

Interest expense                         2,519        2,432
Other income, net                         (291)        (297)
 Income before provision for income
   taxes                                 8,492        7,042

Provision for income taxes               2,630        2,255

Net income                           $   5,862    $   4,787

Per-share data:
 Net income                           35 cents     29 cents
 Cash dividend                        11 cents     11 cents

Average shares outstanding              16,727       16,731

CONTACT: K2 Inc., Los Angeles

John J. Rangel, 213/890-5830