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U.S. PAWN REPORTS HIGHER REVENUES AND LOWER EARNINGS FOR FIRST HALF

 DENVER, May 18 /PRNewswire/ -- U.S. Pawn (NASDAQ: USPN) today announced a 38 percent increase in total revenues for the second quarter and a 46 percent rise in revenues for the six months ended March 31, 1993, compared to a year earlier.
 In the second quarter, total revenues increased to $1,975,257 from $1,433,379 a year ago, including a 26 percent increase in pawn service charges and a 49 percent growth in merchandise sales.
 Operating earnings declined to $46,652 in the second quarter from $122,475 a year earlier. Net income, after accounting for preferred dividends and new tax treatments, was $21,373, or less than one cent per share, compared to $113,496, or one cent per share, in the year earlier quarter.
 For the six months, total revenues grew to $3,844,693 from $2,632,280 in the comparable year ago period. Pawn service charges rose 36 percent and merchandise sales increased 57 percent in the first half from 1992's comparable period.
 Operating earnings, before provision for income tax, dropped slightly in the first six months to $200,816 from $233,763 a year earlier. Net income, after accounting for preferred dividends and new tax treatments, declined to $106,558 from $215,805 in the comparable six month period. Total outstanding shares grew more than 10 percent during all periods.
 "USPN's revenue mix was slightly different in the second quarter due to higher than normal wholesaling and discount retailing of merchandise," said Melvyn Wedgle, chairman. "During the first half of fiscal 1993, the revenue mix was also altered due to new stores concentrating on merchandise sales over pawn loans during the holiday season. Thirty-seven percent of USPN's revenues came from five recently opened stores. However, during this period pawn loans only dropped by 6 percent.
 "The Company, in its attempt to increase cash flow, promoted merchandise discounting in all 10 stores to grow working capital for building USPN's store base. We anticipate adding four more new stores in fiscal 1993," he said. "In addition, USPN is working towards increasing gross profit margins back to over 20 percent through less discount retailing of merchandise."
 Regarding future start-up stores, Wedgle said, "The Company negotiated a one million dollar revolving line of credit with Central National Bank Association in April, an increase of $400,000 over our previous line. The Company's average pawn loan also increased to $78 from $73 in the first half of fiscal 1993. USPN's annual inventory turnover rate remains more than four times."
 U.S. Pawn is the largest publicly held pawn shop company based in Colorado. The Company lends money on a variety of goods primarily jewelry, plus electronics, musical instruments, household items, cars and boats.
 U. S. PAWN, INC.
 Statement of Operations
 (unaudited)
 Three Months Ended Six Months Ended
 March 31, March 31,
 1993 1992 1993 1992
 Revenues:
 Sales $1,135,009 $762,263 $2,136,585 $1,358,712
 Pawn charges 785,025 621,810 1,598,467 1,178,083
 Other income 55,223 49,306 109,641 95,485
 Total revenue 1,975,257 1,433,379 3,844,693 2,632,280
 Cost of sales and
 expenses:
 Cost of goods
 sold 978,262 589,526 1,788,833 1,058,949
 General selling
 expenses 553,704 343,100 1,068,529 632,292
 Corporate
 overhead 300,829 294,164 594,079 548,641
 Interest 52,247 52,260 105,227 96,003
 Depreciation 43,563 31,854 87,209 62,632
 Total cost of sales
 and expenses 1,928,605 1,310,904 3,643,877 2,398,517
 Income from
 operations before
 income taxes 46,652 122,475 200,816 233,763
 Provision for
 income taxes 16,300 --- 76,300 ---
 Net income 30,352 122,475 124,516 233,763
 Dividends on
 preferred stock (8,979) (8,979) (17,958) (17,958)
 Net income available
 for common stock $21,373 $113,496 $106,558 $215,805
 Earnings per common share
 and common share
 equivalents $(a) $0.01 $0.01 $0.02
 Weighted
 average shares
 outstanding 10,567,312 9,607,988 10,565,374 9,434,458
 (a) Less than $0.01 per weighted average share.
 U.S. PAWN, INC.
 Balance Sheet Highlights
 March 31, 1993 Sept. 30, 1992
 (unaudited)
 Assets:
 Cash $222,008 $320,101
 Accrued service charge 314,056 359,939
 Loans 1,943,695 2,071,592
 Inventory 850,315 846,858
 Property and equipment 967,109 872,604
 Other 959,992 713,570
 Total assets $5,257,175 $5,184,664
 Liabilities:
 Accounts payable $48,176 $39,988
 Customer layaway deposits 39,555 24,627
 Notes payable 931,747 1,204,244
 Bank debt 380,892 212,942
 Capital leases 94,038 116,366
 Deferred income taxes 76,300 0
 Other 93,673 103,465
 Total liabilities 1,664,381 1,701,632
 Stockholders' equity 3,592,794 3,483,032
 Total liabilities and
 stockholder equity $5,257,175 $5,184,664
 -0- 5/18/93
 /CONTACT: Fred Baker, CFO, U.S. Pawn, 303-571-4704; or Woody Wallace or Kathy Mattson, 708-564-5610, Mark Perlgut, 212-580-4141, or Earle Brown, 813-796-1452, all of The Investor Relations Company, for U.S. Pawn/
 (USPN)


CO: U.S. Pawn ST: Colorado IN: FIN SU: ERN

JG-KE -- DE017 -- 9828 05/18/93 13:34 EDT
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Date:May 18, 1993
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