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DAMARK INTERNATIONAL, INC. ANNOUNCES RESULTS

 MINNEAPOLIS, April 20 /PRNewswire/ -- Damark International, Inc. (NASDAQ: DMRK) today reported results for the first quarter ended April 3, 1993. First quarter net sales increased 18.2 percent to $82.5 million from $69.8 million for the same period in 1992. Operating income was $1.1 million versus $94,000 in 1992. Net income was $610,000 versus a loss of $329,000 last year. On a per share basis, excluding the effect of a warrant valuation increase last year, the earnings were $0.08 versus a loss of $0.05 in the year ago quarter.
 In commenting on the results for the quarter, Mark A. Cohn, Damark's chairman and chief executive officer, said, "We are pleased with the results for the quarter. We saw a continuation of the pre-Christmas trend of renewed consumer interest. Our sales per catalog mailed increased to $3.47 from $2.76 a year ago, a 25.7 percent increase. During the first quarter 1993, we added approximately 66,000 new Preferred Buyers' Club members, bringing the total to 325,000 versus 279,000 a year ago. Our total proprietary customer list grew 270,000 to 3.6 million versus 2.9 million last year, our largest increase of new customers since the first quarter a year ago."
 Sales, general and administration expenses decreased as a percent of sales from 25.2 percent in 1992 to 23.1 percent, reflecting more efficient spending for new customer acquisition. The company's gross profit margins for the period decreased to 24.5 percent from 25.3 percent in the first quarter in 1992, due in large part to the impact of the Preferred Buyers' Club 10 percent discount begun in June of 1992.
 Founded in 1986, Damark International, Inc., headquartered in Minneapolis, has become a leading national direct merchandiser of "great deals," offering brand name and other quality merchandise at value- oriented prices.
 DAMARK INTERNATIONAL, INC.
 Statements of Operations
 (Dollar and share amounts in thousands except per share data)
 (Unt?ed)
 Quarter Ended Percent
 4/3/93 3/28/92 Change
 Net sales $82,511 $69,804 18.20
 Cost of sales 62,322 52,136 --
 Gross profit 20,189 17,668 --
 Selling, general &
 administrative expenses 19,048 17,574 --
 Operating income 1,141 94 --
 Interest expense, net 56 688 --
 Other expense, net 160 42 --
 Income (loss) before
 taxes and cumulative
 effect of change in
 accounting principle 925 (636) --
 Income tax expense (benefit) 315 (216) --
 Income (loss) before
 cumulative effect of a
 change in accounting
 principle 610 (420) --
 Cumulative effect of change
 in income tax accounting
 method, net of taxes 0 91 --
 Net income (loss) $610 $(329) 285.41
 DAMARK INTERNATIONAL, INC.
 Statements of Operations
 (Dollar and share amounts in thousands except per share data)
 (Unaudited)
 Quarter Ended Percent
 4/3/93 3/28/92 Change
 Income (loss) per
 common share and
 common share equivalents:
 Primary and fully diluted:
 Income (loss) before
 cumulative effect of
 change in accounting
 principle $0.08 $(0.96) --
 Cumulative effect of
 change in income tax
 accounting, net of
 taxes per 0.00 0.01 --
 Net income (loss) $0.08 $(0.95) --
 Weighted average common
 share and common share
 equivalents outstanding 8,029 5,504 --
 Supplemental income (loss)
 per common share and common
 share equivalents excluding the
 impact of the increase in
 the value of warrants of
 $4,891 in 1992:
 Net income (loss) $0.08 $(0.05) 240.03
 Weighted average common
 shares and common
 share equivalents 8,029 6,064 --
 -0- 4/20/93
 /CONTACT: James E. Tuller of Damark, 612-531-0066/
 (DMRK)


CO: Damark International, Inc. ST: Minnesota IN: REA SU: ERN

AL -- MN017 -- 8258 04/20/93 16:05 EDT
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Date:Apr 20, 1993
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