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CENTRAL SPRINKLER CORPORATION REPORTS INCREASE IN FOURTH QUARTER AND ANNUAL SALES AND EARNINGS

 LANSDALE, Pa., Dec. 14 /PRNewswire/ -- Central Sprinkler Corporation (NASDAQ: CNSP) reported today improved sales and earnings for the fourth quarter and fiscal year ended Oct. 31, 1993.
 Net sales for the 1993 fiscal year increased by 36 percent to $82,481,000 from $60,471,000 in 1992. Net income for fiscal 1993 rose to $2,376,000 compared to the $582,000 earned in 1992. Earnings per share for fiscal 1993 was $.50 compared to $.13 for 1992 reflecting the higher income and a higher number of shares outstanding in 1993. Fourth quarter 1993 sales and earnings also rose sharply. Fourth quarter sales of $26,358,000 increased more than 63 percent from $16,146,000 in the fourth quarter of 1992. Net income for the fourth quarter was $956,000 compared to $106,000 for the comparable 1992 period. Earnings per share was $.19 compared to $.03 for the fourth quarter 1992 period.
 The increase in sales and earnings for both the fourth quarter and full year 1993 reflects primarily the two business acquisitions completed by the company. The majority of the sales increase for fiscal 1993 is due to the November 1992 acquisition of a distributor of fire sprinkler equipment and the August 1993 acquisition of a manufacturer and distributor of pipe couplings, fittings and other products that are used in fire sprinkler systems. The company's high degree of emphasis on research and development also contributed to the overall sales increase through several new fire sprinklers and piping products that added incremental sales in the periods. Expanded sales and marketing and promotion programs along with better market conditions also played an important part of the sales increase. The very weak market conditions that existed for the last several years due to the low levels of new construction activity in the United States seems to have improved somewhat. The market in several areas of the country has improved particularly in residential and retrofit sprinkler usage. The company's overall gross profit margin percentage in 1993 remained virtually unchanged from the comparable quarterly and annual periods of 1992 and reflects the continued stiff price competition in the marketplace. Operating expenses increased in the fourth quarter and full year by 37 percent and 21 percent, respectively. These increases reflect primarily the company's expanded sales and marketing promotion programs along with higher research and development costs. The sharp rise in new income for both the fourth quarter and full year reflects the incremental profits associated with the sales increase. The company said it believes the recent business acquisitions along with new product introductions will improve the company's competitive position.
 Central Sprinkler Corporation is a manufacturer and distributor of components used in automatic fire sprinkler systems.
 CENTRAL SPRINKLER CORPORATION
 Summarized Financial Results
 (Amounts in thousands, except per share)
 Periods ended Three months Year
 Oct. 31 1993 1992 1993 1992
 Net sales $26,358 $16,146 $82,481 $60,471
 Gross profit 7,529 4,599 23,396 17,139
 Operating income (loss) 1,176 (44) 2,881 196
 Interest income, net 15 95 295 509
 Income before income taxes 1,191 51 3,176 705
 Net income 956 106 2,376 582
 Earnings per share $.19 $.03 $.50 $.13
 Average number of shares 5,019 4,260 4,710 4,479
 /delval/
 -0- 12/14/93
 /CONTACT: Al Sabol of Central Sprinkler, 215-362-0700/
 (CNSP)


CO: Central Sprinkler Corporation ST: Pennsylvania IN: SU: ERN

MK-JM -- PH009 -- 3562 12/14/93 10:22 EST
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Publication:PR Newswire
Date:Dec 14, 1993
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