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KINARK REPORTS FIRST QUARTER RESULTS

 TULSA, Okla., May 5 /PRNewswire/ -- Kinark Corporation (AMEX, PSE: KIN) announced today that the company had achieved slightly higher sales for the first quarter of 1993. Kinark's sales for the quarter ended March 31 were $7,173,000, an increase of 1.8 percent over sales of $7,045,000 for the same quarter a year ago.
 Kinark's net earnings for the quarter were $1,756,000, or $.45 a share, after special charges and a one-time gain for a change in income tax accounting, compared with earnings of $516,000, or $.14 a share, for the same period in 1992. In announcing the results, Paul R. Chastain, chairman and chief executive officer of Kinark Corporation, reported on the special items included in earnings for the first quarter of 1993:
 -- Expenses of $458,000, or 6.4 percent of sales, were incurred by the company in connection with the Consent Solicitation contest for Kinark board seats.
 -- Mandated accounting changes for income taxes resulted in an increase to earnings of $1,920,000. This benefit arises from accumulated losses the company incurred in its discontinued hotel operations in prior years.
 Excluding the special items, earnings came to $294,000, or $.08 a share. Kinark earned $516,000, or $.14 aa?re, in the first quarter a year ago. The company's galvanizing business reported sales down 8.2 percent from the first quarter a year ago on a comparable percentage drop in the volume of tonnage. Mr. Chastain said, "The extended weakness in galvanizing continues to be concentrated almost entirely in the Texas markets served by Boyles Galvanizing's two largest plants. In response to this down market and the severe pricing competition, we are accelerating our marketing and sales efforts to increase near-term galvanizing business."
 Business improved in the first quarter for the Lake River Terminals and Kinpak chemicals units with their combined earnings up 43 percent on a 14 percent increase in sales. Lake River reported earnings slightly ahead of 1992 on a sales increase of 1 percent for specialty chemicals storage services. Lake River's business prospects for 1993 are favorable due to the steady demand from major chemical companies for bulk liquid storage. Kinpak contract packaging sales surged 87 percent on a sharply increased volume of windshield washer fluid for Wal-Mart. The resulting profit contribution narrowed Kinpak's first quarter loss from a year ago by 40 percent, and production for Wal-Mart is expected to continue into the second quarter because of unseasonable wet weather conditions.
 Mr. Chastain confirmed that the company expects to reschedule its delayed annual meeting soon. The annual meeting, normally held in May, was postponed pending court approval of the negotiated settlement reached by all the participants in the recent Consent Solicitation contest for board seats.
 Kinark Corporation, with corporate headquarters in Tulsa, operates chemical facilities in Chicago and Montgomery, Ala., and supports industrial/commercial construction and metals corrosion protection with galvanizing plants in Denver, Louisville, Nashville, St. Louis, Houston and Hurst, Texas.
 KINARK CORPORATION
 Consolidated Statements of Earnings (A)
 (Thousands of dollars except per share)
 Quarter ended March 31 1993 1992
 Sales $7,173 $7,045
 Cost of sales 5,359 4,978
 Selling, administrative expenses 1,056 925
 Depreciation 408 395
 Income from operations 350 747
 Interest expense, net 125 164
 Consent Solicitation expenses 458 --
 Income tax expense (benefit) (69) 67
 Earnings before cumulative effect
 of change in accounting method (164) 516
 Cumulative effect of change in
 accounting method 1,920 --
 Net earnings $1,756 $ 516
 Earnings per common share $.45 $.14
 Average shares outstanding 3,905,895 3,720,613
 (A) -- Unaudited interim statements.
 -0- 5/5/93
 /CONTACT: Carolyn A. Fredrich of Kinark, 918-494-0964/
 (KIN)


CO: Kinark Corporation ST: Oklahoma IN: CHM SU: ERN

GK-KW -- NY059 -- 4914 05/05/93 13:35 EDT
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Publication:PR Newswire
Date:May 5, 1993
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