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ACTION PERFORMANCE COMPANIES ANNOUNCE REVENUES AND EARNINGS FOR THE THIRD QUARTER AND NINE-MONTH PERIOD ENDED JUNE 30, 1993

 PHOENIX, Aug. 20 /PRNewswire/ -- Action Performance Companies Inc. ("Action") (NASDAQ-NMS: ACTN, ACTNW) announced today its operating results for the three- and nine-month periods ended June 30, 1993.
 Revenues for the three- and nine-month periods ended June 30, 1993, were $3,042,000 and $7,590,000, respectively. This represents a 40 percent and 31 percent increase from $2,177,000 and $5,807,000 for the three- and nine-month period ended June 30, 1992. Action experienced a net loss for the three- and nine-month periods ended June 30, 1993, of $100,000, or $.03 per share, and $336,000, or $.17 per share, respectively. In July 1992, Action commenced the marketing of die-cast collectibles which were previously marketed by Action Performance Sales Inc. ("APS"). For comparative purposes, the results of operations of APS were combined with Action's for the three- and nine-month periods ended June 30, 1992, to more accurately reflect the results of operations.
 Revenues and earnings were adversely affected by Action's strategic decision to develop, manufacture and market its own proprietary line of die-cast collectibles and eliminate its dependence on Racing Champions Inc., manufacturer of the product line previously marketed by Action. As a result of Action's decision to develop, manufacture and market its own proprietary line of die-cast collectibles, it has experienced significant product supply disruptions. These supply disruptions, combined with Action's intentional reduction in inventory levels of the Racing Champions product line in anticipation of introducing its own proprietary line, resulted in die-cast collectible revenues decreasing from $1,541,000 and $5,182,000 for the three- and nine-month periods ended June 30, 1992, to $781,000 and $3,040,000 during the comparable periods ended June 30, 1993.
 In May 1993, Action commenced an aggressive tooling program which will result in the introduction of a proprietary line consisting of 39 new products, many of which are not currently available from any other manufacturer. Action's new proprietary die-cast collectible products will be introduced beginning September 1993. Action anticipates that revenues generated from die-cast collectible sales will substantially increase in the quarter ended Dec. 31, 1993.
 In July 1993, Action completed its acquisitions of Racing Collectibles Inc. ("RCI") and Racing Collectables Club of America Inc. ("RCCA"). The RCI and RCCA acquisitions will both be accounted for using the pooling-of-interest method in accordance with Accounting Principals Board Opinion No. 16. Under the pooling-of-interest method of accounting the historical operating results of RCI and RCCA will be combined with Action's for all periods presented. This accounting treatment will begin in Action's fourth quarter ended Sept. 30, 1993. If RCI and RCCA's historical operating results were combined with Action's for the three- and nine-month periods ended June 30, 1992 and 1993, the results would be as follows: Revenues for the three- and nine-month periods ended June 30, 1993, would be $4,871,000 and $12,475,000, respectively. This represents a 40 percent and 48 percent increase from $3,483,000 and $8,416,000 for the three- and nine-month periods ended June 30, 1992. Net income for the three- and nine-month periods ended June 30, 1993, would be $154,000, or $.05 per share, and $59,000, or $.02 per share, respectively.
 ACTION PERFORMANCE COMPANIES INC.
 Table of Operating Results
 (In thousands except EPS numbers)
 Three Months Nine Months
 Ended June 30, Ended June 30,
 1993 1993
 Action Combined Action Combined
 Revenues $3,042 $4,871 $7,590 $12,475
 Gross profit 842 2,024 2,056 4,806
 Net income (loss) ($100) $154 ($336) $59
 Earning per share ($.03) $.05 ($.17) $.02
 -0- 8/20/93
 /CONTACT: Edward M. Topham of Action Performance Companies, 602-894-0100, ext. 107; or James S. Cole of Kachina Capital Corp., 602-264-0018, for Action Performance Companies/
 (ACTN ACTNW)


CO: Action Performance Companies ST: Arizona IN: HOU SU: ERN

LS-MF -- LA011 -- 4709 08/20/93 14:10 EDT
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Publication:PR Newswire
Date:Aug 20, 1993
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