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CELEX GROUP FIRST QUARTER NET INCREASES 85 PERCENT; SALES UP 95 PERCENT

CELEX GROUP FIRST QUARTER NET INCREASES 85 PERCENT; SALES UP 95 PERCENT
 CHICAGO, Oct. 5 /PRNewswire/ -- CELEX Group, Inc., the publicly held creator and marketer f? proprietary products for personal and business motivation, today reported a substantial improvement in sales and earnings for the first quarter of its 1993 fiscal year.
 Major gains were reported in each of the company's operating divisions, reflecting implementation of the prior year's strategic planning.
 Sales for the quarter ended July 31, 1992, were up 95 percent to $1,958,839 from $1,001,947 in the year-ago period. Operating income for the quarter was $330,263 compared with a loss of $109,401 in the prior year's first quarter.


Net income for the recent quarter was $303,156, or 16 cents per share. This was up 85 percent from the year-earlier period's $163,602, or 8 cents per share, which included an extraordinary gain of $285,000 on the sale of an investment.
 In commenting on the influences affecting first quarter results, Mac Anderson, president and CEO, explained that CELEX consists of two businesses. Celebrating Excellence sells quotation books with business themes; wall decor, including lithographs, plaques, calligraphy and posters; desk accessories; recognition awards and motivational greeting cards. These proprietary products are marketed through a 48-page catalog and a telemarketing operation supported by national print advertising, as well as through direct sales. Successories is the company's new business-to-business franchise program that uses a retail- store format as a hub from which to help business owners and managers promote customer service, quality and teamwork through the customized marketing of the Celebrating Excellence products and other complimentary products.
 Anderson pointed out that Celebrating Excellence's catalog sales rose approximately 80 percent over a year ago due to a new strategy in direct marketing that resulted from successful testing in late 1991. Similarly, the company's new focus on Successories company-owned and franchised stores led to the awarding of 15 new Successories franchises in the first five months of the current fiscal year. These franchisees were selected from over 4,000 inquiries and 600 applications received from recent articles about Successories in nine publications, including Inc. Magazine, Nation's Business and the Chicago Tribune.
 Anderson said, "Although many additional franchises could have been sold, management felt that 15 was the optimum number to fine-tune the concept over the next six months."
 In addressing the company's ample profit margin of 15.5 percent, Anderson said operating expenses increased only 13 percent over last year while sales were up 95 percent.
 Anderson also noted that no income taxes were levied against profits in either period because of a net operating loss carryforward.
 "In 1993 we will have the opportunity to grow substantially by opening more
franchised and company-owned units," said Anderson. He noted the company had only one Successories store at the end of its 1992 fiscal year but was up to six by July and planned to reach 20 by the end of the current fiscal year. Anderson said he foresees 100 Successories stores by 1995. He repeated his earlier forecast that revenues would reach $11 million by April 30, 1993, the end of the current fiscal year.
 CELEX GROUP, INC.
 CONDENSED CONSOLIDATED STATEMENT OF OPERATING RESULTS
 Three months ended July 31 1992 1991
 Net Sales $1,958,839 $1,001,947
 Product Cost 781,768 360,577
 Operating Expenses 846,808 750,771
 Operating Profit (Loss) 330,263 (109,401)
 Interest Expense - Net (35,295) (14,403)
 Other Income 8,188 2,406
 Income Before Income Taxes
 and Extraordinary Credits 303,156 (121,398)
 Income Taxes 118,000 52,000
 Income Before Extra. Credits 185,156 (173,602)
 Extraordinary Credits
 Tax Loss Carry Forward 118,000 52,000
 Gain on Sale of Investment -- 285,000
 Net Income $303,156 $163,602
 Per Share of Common Stock -
 Income before Extra. Credits $.10 $(.06)
 Net Income $.16 $ .08
 Average Shares Outstanding 1,883,060 1,764,483
 CONDENSED CONSOLIDATED BALANCE SHEETS AT JULY 31,
 1992 1991
 Current Assets $1,891,308 $1,913,841
 Property & Equipment - Net 571,548 367,325
 Other Assets 735,714 299,014
 Total Assets 3,198,570 2,580,180
 Current Liabilities 1,603,800 1,599,473
 Long-Term Debt 519,914 357,057
 Stockholders' Equity 1,074,776 623,650
 -0- 10/5/92
 /CONTACT: Mac Anderson, president and CEO of CELEX Group, 708-953-8440; or Jim Tolan, senior vice president of O'Connor Biro & Associates, 708-498-2284, for CELEX Group/ CO: CELEX Group, Inc. ST: Illinois IN: SU: ERN


PS -- NY105 -- 6777 10/05/92 17:05 EDT
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Date:Oct 5, 1992
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