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SPECIALTY CHEMICAL THIRD QUARTER NET INCOME UP 114 PERCENT; NINE MONTH PRO FORMA NET INCOME $1,429,000 VERSUS LOSS OF $33,000

 SPECIALTY CHEMICAL THIRD QUARTER NET INCOME UP 114 PERCENT;
 NINE MONTH PRO FORMA NET INCOME $1,429,000 VERSUS LOSS OF $33,000
 CLEVELAND, Oct. 22 /PRNewswire/ -- Specialty Chemical Resources, Inc. (AMEX: CHM) today reported a 114 percent increase in net income for the quarter ended Sept. 30, 1992. Net sales of $12,847,000 and net income of $739,000 compared to $12,274,000 and $346,000 respectively, for the same period of the prior year. On a per share basis, the company earned 20 cents during the most recent quarter on 3,768,000 shares outstanding, versus 34 cents on 1,008,000 shares outstanding in the third quarter of 1991.
 For the nine months ended Sept. 30, 1992, the company reported net sales of $37,348,000 up from $32,142,000 during the same period of 1991, an increase of 16 percent. Earlier this year, the company retired all of its prior indebtedness and incurred non-cash, non-recurring charges associated with debt retirement of $945,000 for deferred financing costs and $191,000 for an original issue discount. After non-recurring charges, the company had net income of $688,000 or 22 cents per share on a weighted average of 3,095,000 shares outstanding, compared to a net loss of $33,000, or three cents per share on a weighted average of 1,008,000 outstanding shares for the first nine months of 1991. On a pro forma basis, excluding the non-recurring charges, the company's net income for the nine months ended Sept. 30, 1992 was $1,429,000, or 46 cents per share, compared to a net loss of $33,000, or three cents per share, for the same period of the prior year.
 Edwin M. Roth, chairman and chief executive officer, noted that sales were adversely affected during the third quarter by the weak economic outlook which caused customers to reduce inventories, as well as the elimination of sales to a deep discount retailer that had declared bankruptcy. He also noted that the company believed it had maintained market share while the gross profit margin improved from the second quarter.
 The company is conservatively capitalized with current assets of $13,619,000, current liabilities of $5,049,000 (current ratio 2.7), long-term debt of $6,803,000 and shareholders' equity of $29,668,000 as of Sept. 30, 1992.
 Specialty Chemical Resources is a leading formulator and packager of aerosol products primarily for industrial maintenance and automotive service professionals. The company's aerosol products include cleaners, sealants, gasket compounds, lubricants, waxes, adhesives, paints, coatings, degreasers, polishes, anti-statics and tire inflators.
 Specialty Chemical Resources, Inc. and Subsidiary
 Consolidated Income Statements Unaudited
 (Amounts in thousands except per share amounts)
 Three Months
 Periods ended September 30 1992 1991(A)
 Net sales $12,847 $12,274
 Gross profit 2,839 2,889
 Operating profit 1,214 1,373
 Interest expense 126 998
 Other (income) expenses:
 Write-off of original issue
 discount (B) --- ---
 Write-off of deferred financing
 costs (B) --- ---
 Other (income) (9) ---
 Income (loss) before taxes 1,097 375
 Taxes 358 29
 Net income (loss) $ 739 $ 346
 Earnings (loss) per share $.20 $.34
 Weighted average shares
 outstanding (C) 3,768 1,008
 Proforma (Excludes the write-off
 of original issue discount and
 deferred financing costs):
 Net income (loss) 739 346
 Earnings (loss) per share $.20 $.34
 Weighted average shares
 outstanding (C) 3,768 1,008
 Year-to-Date
 Periods ended September 30 1992 1991 (A)
 Net sales $37,348 $32,142
 Gross profit 7,851 7,332
 Operating profit 3,121 3,066
 Interest expense 964 3,059
 Other (income) expenses:
 Write-off of original issue
 discount (B) 191 ---
 Write-off of deferred financing
 costs (B) 945 ---
 Other (income) (25) (2)
 Income (loss) before taxes 1,046 9
 Taxes 358 42
 Net income (loss) $ 688 $ (33)
 Earnings (loss) per share $.22 $ (.03)
 Weighted average shares
 outstanding (C) 3,095 1,008
 Proforma (Excludes the write-off
 of original issue discount and
 deferred financing costs):
 Net income (loss) $1,429 $ (33)
 Earnings (loss) per share $.46 $ (.03)
 Weighted average shares
 outstanding (C) 3,095 1,008
 (A) -- Financial information excludes data related to operations discontinued in 1991.
 (B) -- Non-recurring, non-cash write-off of original issue discount and deferred financing costs related to retirement of debt with common stock offering proceeds.
 (C) -- Weighted average shares outstanding include common stock equivalents except in loss periods whereby they would be anti-dilutive.
 Specialty Chemical Resources, Inc. and Subsidiary
 Consolidated Balance Sheets, Unaudited
 (Dollars in Thousands)
 Sept. 30 Dec. 31
 1992 1991
 Assets
 Current assets
 Cash $24 $293
 Receivables 7,344 6,294
 Inventory 5,877 5,160
 Other 374 224
 Total Current Assets $13,619 $11,971
 Net fixed assets 3,836 3,760
 Other 24,065 26,088
 Total Assets $41,520 $41,819
 Liabilities
 Current liabilities
 Current debt $ -- $1,573
 Accounts payable 4,294 5,348
 Other 755 765
 Total Current Liabilities $ 5,049 $ 7,686
 Long-term debt 6,803 29,924
 Shareholders' equity 29,668 4,209
 Total Liabilities and
 Shareholders' Equity $41,520 $41,819
 -0- 10/22/92
 /CONTACT: Corey B. Roth of Specialty Chemical Resources, Inc, 216-468-1380/
 (CHM) CO: Specialty Chemical Resources, Inc. ST: Ohio IN: CHM SU: ERN


BM -- CL032 -- 3837 10/22/92 16:33 EDT
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Date:Oct 22, 1992
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