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AMERICAN STUDIOS, INC. ANNOUNCES FOURTH QUARTER AND FULL YEAR RESULTS AND DIVIDEND INCREASE

 CHARLOTTE, N.C., Feb. 22 /PRNewswire/ -- American Studios, Inc. (NASDAQ: AMST), the principal provider of portrait photography services to Wal-Mart stores, today reported that net sales for the fourth quarter of 1992 increased 63 percent to $25.5 million from $15.6 million for the comparable period in 1991. Net income for the fourth quarter of 1992 increased to $3.7 million from a loss of $7.9 million for the comparable period in 1991. In the fourth quarter of 1991, charges to operations totaling $9.7 million were recognized in connection with a corporate restructuring and related transactions.
 The company also announced that its Board of Directors had declared on Feb. 16, 1993 its second quarterly dividend of $0.02 per share payable March 31, 1993, to shareholders of record March 15, 1993. This dividend represents a 50 percent increase over the amount paid in the prior quarter, after adjusting for the recent 3-for-2 stock split.
 Net income per share for the fourth quarter of 1992 increased to $0.17 per share from a pro forma net loss of $0.36 per share for the comparable period in 1991. Because the Company was a partnership prior to 1992, per share amounts for 1991 have been computed on a basis that adjusts the Company's capital structure prior to its initial public offering to a basis consistent with the structure after the offering, and that provides for pro forma income taxes for 1991 as if the Company had been subject to corporate income taxes for 1991. Net income and earnings per share for the fourth quarter of 1992 were favorably impacted by $0.66 million or $0.03 per share because of a non recurring tax item.
 Net sales for the 1992 year increased 51 percent to $65.3 million from $43.4 million for the 1991 year. Net income for the 1992 year was $3.8 million compared to a loss of $6.8 million for the 1991 year. After adjusting for the recent 3-for-2 stock split, net income per share for the 1992 year was $0.20 per share compared to pro forma net loss per share of $0.33 per share for the 1991 year.
 "We are pleased with the results for the fourth quarter of 1992 and for the full year of 1992 especially in light of the start-up costs associated with recruiting and training new associates for the approximately 66 percent increase during 1992 in the number of Wal-Mart stores served by both permanent and traveling studios, and the negative effect of a charge of $1.1 million during the second quarter of 1992 for compensation expense under stock bonuses to employees," said R. Kent Smith, President of American Studios, Inc.
 "The Company was operating 160 permanent studios in Wal-Mart stores at Dec. 31, 1992 and expects to have approximately 280 permanent studios in operation by June 30, 1993," he said.
 As of Dec. 31, 1992, American Studios, Inc. provided portrait photography services in 1,682 Wal-Mart stores in 34 states and Puerto Rico.
 AMERICAN STUDIOS, INC.
 UNAUDITED CONDENSED STATEMENTS OF OPERATIONS
 (Dollars in thousands, except per share data)
 Fourth Quarter Ended Year Ended
 Dec. 31, Dec. 31, Dec. 31, Dec. 31,
 1991 1992 1991 1992
 Net Sales $15,638 $25,522 $43,354 $65,257
 Cost of Sales 9,859 17,252 28,211 45,398
 Gross Profit 5,779 8,270 15,143 19,859
 General And
 Administrative
 Expenses 2,561 3,104 7,910 10,749
 Amortization Of
 Non-Compete
 Agreements
 And Other
 Intangible Assets 347 227 1,389 1,077
 Compensation Expense
 Under Grants Of
 Ownership Interests 547 -- 547 1,134
 Earnout Expenses 4,594 -- 5,372 --
 Payments To Former
 Equity Holders 2,950 -- 2,950 --
 Bonus To Chief
 Executive Officer 1,764 -- 1,764 --
 Expenses Associated
 With Corporate
 Restructuring 533 -- 533 --
 Income (Loss) Before
 Interest And Income
 Taxes (7,517) 4,939 (5,322) 6,899
 Interest 369 0 1,498 1,759
 Income (Loss) Before
 Income Taxes (7,886) 4,939 (6,820) 5,140
 Income Taxes -- 1,262 -- 1,340
 Net Income (Loss) ($7,886) $3,677 ($6,820) $3,800
 Pro Froma Actual Pro Forma Actual
 Income (Loss) Before
 Income Taxes ($7,886) $4,939 ($6,820) $5,140
 Income Taxes (Benefit) (940) 1,262 (525) 1,340
 Net Income (Loss) ($6,946) $3,677 ($6,295) $3,800
 Net Income (Loss) Per Share ($0.36) $0.17 ($0.33) $0.20
 Weighted Average Number Of
 Shares Outstanding And
 Common Stock
 Equivalents 19,067,454 21,740,224 19,067,454 18,731,061
 STATISTICAL DATA
 Number of Wal-Mart Stores
 Served, End Of Period 1,014 1,682
 Number Of Permanent Studios, End Of Period 21 160
 Number Of Customers, End Of Period 1,155,000 1,716,000
 -0- 2/22/93
 /CONTACT: R. Kent Smith, President, or A. Allen Henderson, CFO, American Studios, Inc., 704-588-4351/
 (AMST)


CO: American Studios, Inc. ST: North Carolina IN: REA SU: ERN

MM-SB -- CH002 -- 8933 02/22/93 11:43 EST
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Date:Feb 22, 1993
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