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ADVANCED MARKETING SERVICES INC. REPORTS 61 PERCENT INCREASE IN EARNINGS FOR FISCAL YEAR 1993

 SAN DIEGO, May 14 /PRNewswire/ -- Advanced Marketing Services Inc. (NASDAQ: ADMS) today reported record sales and a 61 percent increase in earnings for fiscal year 1993. For the fiscal year ended March 31, 1993, the company reported net income of $2,952,000, or $.53 per share, on an 18 percent increase in net sales to $258,390,000. The prior-year's net income was $1,834,000, or $.34 per share, and fiscal 1992's net sales totaled $218,148,000. The company is a leading distributor of general interest books to membership warehouse club and office product superstore industries.
 For the fourth quarter ended March 31, 1993, the company reported net income of $126,000, or $.02 per share, on net sales of $55,482,000. This compares to a net income of $38,000, or $.01 per share, on net sales of $46,797,000 for the fourth quarter of the previous fiscal year. The prior-year's earnings benefited from the adoption of FASB 109 at March 31, 1992, which added $176,000 to net income for the fourth quarter and fiscal year.
 The increase in sales for the fiscal year was, in part, because of strong sales in many title categories including calendar, gift books, juvenile and computer books. Fourth quarter sales for gift books were especially strong compared to prior year. Comparative book sales for the fourth quarter (those to customer locations that operated throughout the year) increased 7 percent.
 Gross profit for the year increased $3.2 million or 17 percent. As a percentage of net sales, gross profit was 8.4 percent vs. 8.5 percent in fiscal 1992. Lower provisions for markdown costs were offset by more aggressive pricing, particularly in juvenile titles, designed to retain or expand market share.
 Distribution and administrative expenses increased 10 percent in fiscal 1993, compared to the prior year and declined as a percentage of sales to 6.7 percent from 7.2 percent, primarily as a result of increased sales volume, greater participation in publisher's promotional programs and modest growth in overhead costs. As a result of consolidation of its distribution center network, the company expects to limit the growth in its distribution costs over the next several years.
 Charles C. Tillinghast III, president, said, "AMS demonstrated in fiscal 1993 an ability to respond quickly and effectively to our customers' changing needs for books and related products. As the competitive, merchandising and marketing environments of our customers change, AMS' experienced product selection and marketing teams will continue to innovate new ways of assisting our customers with the sales and marketing of their books."
 Advanced Marketing Services Inc. provides product selection advice, specialized merchandising and product development programs, and distribution and handling services with respect to general interest books and related products sold primarily to membership warehouse clubs and office product superstores operating in the United States, Canada and Mexico.
 ADVANCED MARKETING SERVICES INC.
 Comparative Financial Results
 (in thousands)
 Three Months Ended Year Ended
 March 31, March 31,
 1993 1992 1993 1992
 Statement of Operations
 Net sales $55,482 $46,797 $258,390 $218,148
 Cost of goods sold 51,086 42,752 236,751 199,688
 Gross profit 4,396 4,045 21,639 18,460
 Distribution and
 administrative expenses 4,466 4,411 17,229 15,721
 Income (loss) from
 operations (70) (366) 4,410 2,739
 Interest and dividend income
 (expense), net 164 35 321 (96)
 Income (loss) before
 provision (benefit) for
 income taxes 94 (331) 4,731 2,643
 Provision (benefit) for
 income taxes (32) (369) 1,779 809
 Net income $126 $38 $2,952 $1,834
 Net income per common and
 common share equivalent:
 Primary $.02 $.01 $.53 $.34
 Fully diluted $.02 $.01 $.53 $.34
 Weighted average number of
 shares:
 Primary 5,594 5,355 5,548 5,354
 Fully diluted 5,610 5,355 5,604 5,354
 As of March 31,
 1993 1992
 Condensed Balance Sheet
 Assets
 Cash and short-term investments $17,631 $13,960
 Accounts receivable 23,035 15,809
 Inventories 65,474 63,772
 Other current assets 2,090 2,004
 Total current assets 108,230 95,545
 Net property and equipment and
 other current assets 4,001 2,345
 Total assets $112,231 $97,890
 Liabilities and stockholders' equity
 Accounts payable and other
 current liabilities $71,129 $59,810
 Stockholders' equity 41,102 38,080
 Total liabilities and stockholders'
 equity $112,231 $97,890
 -0- 5/14/93
 /CONTACT: Charles C. Tillinghast III, president, or Jon S. Fish, CFO, of Advanced Marketing Services, 619-457-2500/
 (ADMS)


CO: Advanced Marketing Services Inc. ST: California IN: PUB REA SU: ERN

LS-JL -- SD002 -- 8477 05/14/93 09:02 EDT
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Copyright 1993 Gale, Cengage Learning. All rights reserved.

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Date:May 14, 1993
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