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MARGO NURSERY FARMS, INC. ANNOUNCES THIRD QUARTER 1993 EARNINGS OF $4,429,000 OR $2.34 PER SHARE

 VEGA ALTA, Puerto Rico, Nov. 9 /PRNewswire/ -- Margo Nursery Farms, Inc. (NASDAQ: MRGO) and its subsidiaries (the company), today announced their sales and earnings for the third fiscal quarter ended Sept. 30, 1993.
 The company's consolidated sales for the third quarter decreased 16 percent to $475,000 compared to sales of $567,000 for the same period in 1992. Sales from continuing operations increased by 20 percent when compared to sales for the same period in 1992.
 The company's consolidated sales for the nine months ended Sept. 30, 1993 were $1,605,000, which represents a 30 percent increase vs. sales of $1,232,000 for the same period in 1992.
 For the third quarter of 1993, the company recorded a loss of $209,000, or $.11 per share, before recognizing an extraordinary gain of $4,638,000, or $2.45 per share. This extraordinary gain consists, in part, of $4,487,000 less $899,000 of related income taxes, arising from the inclusion of deferred sales as income. The deferred sales resulted from sales of plant material during 1991 and 1992, which may have been contaminated by the use of a defective fungicide. The $899,000 in income taxes arising from this portion of the extraordinary gain were paid during 1991 and 1992. The remaining $1,080,000 (net of $420,000 related expenses) less $30,000 of related income taxes (to be paid during 1994), represents a settlement of litigation. As a result of the above, net income for the third quarter of 1993 was $4,429,000 or $2.34 per share. For the third quarter of 1992, the company recorded an operating loss of $2,030,000 or $1.20 per share, before recognizing an extraordinary gain of $17,602,000 (net of interim assistance payments and related income taxes) or $10.44 per share, resulting from the settlement with the manufacturer of the allegedly defective fungicide. Net income for the third quarter of 1992 was $15,571,000 or $9.24 per share.
 For the nine months ended Sept. 30, 1993, the company recorded a loss of $261,000 or $.14 per share, before recognition of the extraordinary item previously mentioned of $2.45 per share and before applying a cumulative effect on prior years of an accounting change of $899,000 or $.47 per share. The cumulative effect on prior years of the accounting change complements the required presentation by Generally Accepted Accounting Principles, which require the portion of the extraordinary item regarding deferred sales to be presented net of related income taxes. Net income for the nine months ended Sept. 30, 1993 was $5,276,000 or $2.78 per share. For the nine months ended Sept. 30, 1992, the company recorded a loss of $2,907,000 or $1.73 per share, before recognition of an extraordinary gain of $18,632,000 (net of interim assistance payments and related income taxes) or $11.06 per share, also resulting from the main settlement with the manufacturer of the defective fungicide. Net income for the nine months ended Sept. 30, 1993 was $15,725,000, or $9.33 per share.
 The company is continuing the rebuilding and replanting of its Miami nursery facility which was destroyed by Hurricane Andrew last year. The company expects to begin selling small quantities of plant material late in 1993 or early 1994. During the third quarter of 1993, the company began production of its bedding plant and annuals business as well as importing and selling Italian terracotta pottery and ceramics to chain stores, garden centers and hotels in Puerto Rico, the U.S. virgin Islands and other islands in the Eastern Caribbean.
 MARGO NURSERY FARMS, INC. AND SUBSIDIARIES
 SUMMARY OF CONSOLIDATED FINANCIAL RESULTS
 Three months Nine months
 ended Sept. 30, ended Sept. 30,
 1993 1992 1993 1992
 Net sales $ 474,549 $ 566,646 $ 1,605,248 $1,232,188
 Loss before
 extraordinary
 item and cumu-
 lative effect
 on prior years
 of accounting
 change (208,964) (2,030,379) (261,136) (2,906,857)
 Extraordinary
 gain 4,637,820 17,601,690 4,637,820 18,631,953
 Cumulative
 effect on prior
 years of change
 in accounting
 for income taxes --- --- 899,220 ---
 Net earnings $4,428,856 $15,571,311 $5,275,904 $15,725,096
 Earnings per
 share before
 extraordinary
 item and cumu-
 lative effect
 on prior years
 of accounting
 change ($0.11) ($1.20) ($0.14) ($1.73)
 Extraordinary
 gain 2.45 10.44 2.45 11.06
 Cumulative effect
 on prior years
 of change in
 accounting for
 income taxes --- --- .47 ---
 Net earnings $ 2.34 $ 9.24 $ 2.78 $ 9.33
 Weighted
 average
 number of
 shares
 outstanding 1,895,322 1,685,200 1,895,322 1,685,200
 Margo Nursery Farms, Inc. is engaged in the business of growing and distributing a wide range of both indoor and outdoor tropical foliage and flowering plants in Miami and Vega Alta, Puerto Rico.
 -0- 11/9/93
 /Cfonso Ortega of Margo Nursery Farms, 809-883-2570/


CO: Margo Nursery Farms, Inc. ST: Florida IN: SU: ERN

AW-RK -- FL003 -- 2142 11/09/93 09:41 EST
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Date:Nov 9, 1993
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