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ADVANCED MARKETING SERVICES INC. REPORTS GAIN IN OPERATING RESULTS FOR THIRD FISCAL QUARTER

 ADVANCED MARKETING SERVICES INC. REPORTS GAIN
 IN OPERATING RESULTS FOR THIRD FISCAL QUARTER
 SAN DIEGO, Jan. 29 /PRNewswire/ -- Advanced Marketing Services Inc. (NASDAQ: ADMS), the leading supplier of general interest books to the membership warehouse club and office superstore industries, today reported a gain in net income to $2,011,000, or $.38 per share, for its third fiscal quarter ended Dec. 28, 1991 up from net income of $461,000, or $.08 per share, for the third fiscal quarter of the previous year. For the first nine months of fiscal 1992, the company reported net income of $1,796,000, or $.34 per share, compared to a loss of $94,000, or $.02 per share, in the same period of the prior year.
 Net sales during the third fiscal quarter ended Dec. 28, 1991 increased 24 percent to $84,833,000 from $68,457,000 in the third quarter of fiscal 1991. Excluding video product, comparative sales for the quarter (those to customer locations which were in operation throughout the entire third quarter of the current and previous fiscal year) were up 10 percent. The increases in the company's net sales and comparative store sales were due in part to the continuing strong sales of a number of major bestselling novels during the quarter. For the nine months ended Dec. 28, 1991, net sales were $171,351,000 compared to $144,296,000 in the prior year, a gain of 19 percent.
 Gross profits during the third quarter increased $3,093,000 from the prior year and as a percentage of net sales rose to 8.6 percent from 6.1 percent in the prior year's third quarter. Gross profits benefited from lower markdown costs compared to the prior year's quarter. However, this benefit was offset in part by lower margin percentages resulting from a larger percentage of sales in the bestseller category (which typically are sold at lower gross margin percentages than other categories of books) and from more aggressive pricing in several book categories designed to retain or expand the company's share of titles sourced by its major customers.
 Charles C. Tillinghast III, president, said, "We were encouraged by our Christmas season sales, particularly in light of the generally weak retail environment. The excellent values our warehouse club customers provide to their members, as well as the enduring demand for books, allowed AMS to outperform many segments of the retail market this Christmas."
 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 throughout the United States and Canada.
 ADVANCED MARKETING SERVICES INC.
 Unaudited Comparative Financial Results
 Statement of Operations
 (In thousands)
 Three Months Ended Six Months Ended
 Dec. 28 and 29, Dec. 28 and 29,
 1991 1990 1991 1990
 Net sales $84,833 $68,457 $171,351 $144,296
 Cost of goods sold 77,533 64,250 156,936 133,250
 Gross profit 7,300 4,207 14,415 11,046
 Distribution and
 administrative
 expenses 4,032 3,492 11,310 11,137
 Income (loss) from
 operations 3,268 715 3,105 (91)
 Interest expense,
 net 49 57 (131) (23)
 Income (loss)
 before provision
 (benefit) for
 income taxes 3,317 772 2,974 (114)
 Provision (benefit)
 for income taxes 1,306 311 1,178 (20)
 Net income (loss) $2,011 $461 $1,796 ($94)
 Net income (loss)
 per share $.38 $.08 $.34 ($.02)
 Weighted average
 number of shares
 outstanding 5,353 5,845 5,353 5,848
 ADVANCED MARKETING SERVICES INC.
 Unaudited Comparative Financial Results
 Condensed Balance Sheet
 (In thousands)
 As of Dec. 28 and 29,
 1991 1990
 Assets:
 Cash and short-
 term investments $16,895 $13,602
 Accounts receivable 28,308 16,008
 Inventories 70,149 67,177
 Other current assets 1,999 2,421
 Total current assets $117,351 $99,208
 Net property and
 equipment and other
 assets 2,451 2,838
 Total assets $119,802 $102,046
 Liabilities and
 stockholders' equity:
 Accounts payable and
 other current
 liabilities $81,771 $63,836
 Stockholders' equity 38,031 38,210
 Total liabilities and
 stockholders' equity $119,802 $102,046
 -0- 1/29/92
 /CONTACT: Charles C. Tillinghast III, president, or Jon S. Fish, VP finance of Advanced Marketing Services, 619-457-2500/
 (ADMS) CO: Advanced Marketing Services Inc. ST: California IN: PUB SU: ERN


DM-EH -- SD001 -- 4539 01/29/92 07:36 EST
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