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WAXMAN INDUSTRIES REPORTS RESULTS FOR SECOND QUARTER OF FISCAL 1993

 BEDFORD HEIGHTS, Ohio, Feb. 4 /PRNewswire/ -- Waxman Industries, Inc. (NYSE: WAX), a leading supplier to the home repair and remodeling market throughout the United States and Canada, today reported results for the company's second quarter and six months ended December 31, 1992.
 Sales for the quarter totaled $91,134,000, compared with $94,833,000 in the same quarter last year. Sales from U.S. operations increased 8.4 percent over the year-ago quarter, while sales in Canada declined 15.3 percent. The drop in Canadian sales is due to the continuing weak economy there, combined with a 10.0 percent decrease between periods in the average currency exchange rate used to translate the Canadian operations' revenues into U.S. dollars. Operating income for the second quarter was $6,762,000 versus $7,337,000 in the prior year. Operating cash flow (operating income before depreciation and amortization) for the quarter totaled $9,288,000, compared with $9,400,000 in the same period last year. Interest expense was $6,441,000 this year, compared with $6,574,000 last year. Net income for the quarter was $186,000, or $.02 per share, compared with $470,000, or $.05 per share, last year.
 For the first six months of fiscal 1993, sales were $192,457,000, compared with $194,584,000 last year. U.S. sales increased 10.5 percent over the prior year, while sales in Canada declined 11.6 percent. The decline in Canadian sales is partially due to a 7.3 percent decrease between years in the average currency exchange rate used to translate the Canadian operations' sales into U.S. dollars. Operating income for the six months totaled $13,821,000 versus $14,534,000 last year. Operating cash flow for the six months was $18,887,000, compared with $18,634,000 in the prior year. Interest expense totaled $12,768,000, compared with $12,689,000 last year. Net income was $608,000, or $.05 per share, for the first half of fiscal 1993, versus $1,095,000, or $.12 per share, last year.
 Commenting on the company's performance, Armond Waxman, president and co-chief executive officer, said "Our U.S. operations continue to show improved results in the current fiscal year. For the quarter, sales in the U.S. were up 8.4 percent, led by an increase of 10.1 percent from our Mail Order/Telemarketing Group. For the first six months of the fiscal year, U.S. sales increased 10.5 percent, again led by the Mail Order/Telemarketing Group with a 16.0 percent increase. Barnett Brass & Copper, the largest unit in the mail order group, continued to expand its national warehouse network with the opening of its 26th warehouse, located in St. Louis, during November 1992.
 "Despite the poor economic conditions in Canada, which continue to affect our sales there, our Canadian operations remain profitable. Sales in Canada for the second quarter and first six months declined 15.3 percent and 11.6 percent, respectively, after conversion to U.S. dollars. However, when expressed in Canadian dollars, sales declined only 5.8 percent and 4.6 percent for the quarter and six months, respectively, with the majority of these decreases attibutable to the closing of four branches in the second half of fiscal year 1992. We continue to see improvements in some regions of Canada. Fiscal year-to-date sales in both Eastern and Western Canada have increased in comparison to the prior year, however, these sales increases continue to be offset by decreases in Ontario and Quebec.
 Outlook
 "We are optimistic about the outlook for the second half of our fiscal year. We expect to see continued growth in our U.S. operations. There are indications that the Canadian economy is improving and we expect to see some benefits in our fourth quarter. However, the third quarter will continue to be our lowest revenue quarter, due to seasonally lower sales in Canada," he concluded.
 Waxman Industries, Inc. is a leading supplier to the home repair and remodeling market in the United States and Canada. In the U.S., the company's plumbing, electrical and hardware products are sold primarily to home improvement centers, warehouse home centers, mass merchandisers, hardware stores, lumber yards and, through its mail order and telemarketing operations, to approximately 35,000 independent retailers, repair and remodeling contractors, property managers and locksmiths. The company assembles, packages and markets many of these products under its proprietary trade names. In Canada, the company is one of the largest suppliers of plumbing and heating products, serving approximately 10,000 customers across Canada, including repair and remodeling contractors, residential and commercial construction contractors and retailers.
 WAXMAN INDUSTRIES, INC.
 CONSOLIDATED INCOME STATEMENTS
 Three Months Ended December 31,
 1992 1991
 (In Thousands, Except Per Share Amounts)
 Net Sales $ 91,134 $ 94,833
 Cost of Sales 63,957 66,185
 Gross Profit 27,177 28,648
 Operating Expenses 20,415 21,311
 Operating Income 6,762 7,337
 Interest Expense, net 6,441 6,574
 Income Before Income Taxes 321 763
 Income Taxes 135 293
 Net Income $ 186 $ 470
 Earnings Per Share:
 Primary $.02 $.05
 Fully Diluted $.02 $.05
 Average Shares Outstanding:
 Primary 11,662 9,513
 Fully Diluted 11,662 9,517
 WAXMAN INDUSTRIES, INC.
 CONSOLIDATED INCOME STATEMENTS
 Six Months Ended December 31,
 1992 1991
 (In Thousands, Except Per Share Amounts)
 Net Sales $192,457 $194,584
 Cost of Sales 135,450 136,132
 Gross Profit 57,007 58,452
 Operating Expenses 43,186 43,918
 Operating Income 13,821 14,534
 Interest Expense, net 12,768 12,689
 Income Before Income Taxes 1,053 1,845
 Income Taxes 445 750
 Net Income $ 608 $ 1,095
 Earnings Per Share:
 Primary $.05 $.12
 Fully Diluted $.05 $.12
 Average Shares Outstanding:
 Primary 11,662 9,459
 Fully Diluted 11,662 9,492
 -0- 2/4/93
 /CONTACT: Jerome C. Jacques of Waxman Industries, 216-439-1830/
 (WAX)


CO: Waxman Industries ST: Ohio IN: SU: ERN

BM -- CL018 -- 3151 02/04/93 16:05 EST
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Date:Feb 4, 1993
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