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DAMARK INTERNATIONAL REPORTS SECOND-QUARTER AND SIX-MONTH RESULTS

 DAMARK INTERNATIONAL REPORTS SECOND-QUARTER AND SIX-MONTH RESULTS
 MINNEAPOLIS, July 14 /PRNewswire/ -- DAMARK International, Inc. (NASDAQ: DMRK) today reported results for the second quarter and six months ended June 27, 1992. For the second quarter, net sales increased 22.6 percent to $55.7 million from $45.5 million for the same period in 1991. Operating income increased 48.4 percent to $1.4 million from $965,000 in 1991. Net income was up 186 percent to $726,000 from $254,000 last year. On a per share basis, net income was 9 cents versus 4 cents in the year-ago quarter.
 For the six-month period, net sales increased 35.8 percent to $125.6 million from $92.5 million reported in the year-ago period. Operating income grew 56.7 percent to $1.5 million from $974,000 last year. The company reported net income of $397,000, compared with a loss of $370,000 for the year-ago period. On a per share basis, excluding the effects of a warrant valuation increase of $4.9 million in the first quarter, net income was 6 cent versus a 7 cent loss for the prior-year period.
 In commenting on the results, Mark Cohn, DAMARK chairman and chief executive officer, said, "Given the sluggish retail environment, we are pleased with our second-quarter results, including the strong growth in net income. The smaller rise in earnings per share reflects the greater number of shares outstanding, following our initial public offering on April 1, 1992. More than 19.7 million catalogs were mailed during the quarter, up 32.9 percent from the year-ago quarter. Through the first six months of 1992, we continued to build our proprietary customer list, adding almost 550,000 new customers and bringing our list to more than 3 million names. We also continued to add new members to our Preferred Buyer's Club (PBC) that now totals 309,000 members, up 84,000 members this year. During June, we modified the PBC to make its benefits even more attractive."
 In the second quarter, selling, general and administrative expense continued to decrease as a percent of sales, reflecting more efficient spending for the acquisition of new customers. The company's gross profit margin improved to 29.8 percent versus 26.7 percent in the first quarter. The first quarter margin was reduced by a successful promotional strategy begun in the fourth quarter of 1991.
 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 general merchandise at value-oriented prices.
 DAMARK INTERNATIONAL, INC.
 STATEMENTS OF OPERATIONS
 (In thousands except per share data)
 (unaudited)
 Quarter Ended Sixth Months Ended
 June 27, June 29, June 27, June 29,
 1992 1991 1992 1991
 Net sales $55,748 $45,467 $125,552 $92,466
 Cost of sales 39,112 31,894 90,272 64,647
 Gross profit 16,636 13,573 35,280 27,819
 Selling, general and
 administrative expenses 15,204 12,608 33,754 26,845
 Operating income 1,432 965 1,526 974
 Interest expense, net 285 464 973 1,126
 Other expenses, net 30 36 72 90
 Income (loss) before taxes
 and cumulative effect of
 change in accounting
 principle 1,117 465 481 (242)
 Income tax expense 391 211 175 128
 Income (loss) before
 cumulative effect of
 change in accounting
 principle 726 254 306 (370)
 Cumulative effect of change in
 income tax accounting method,
 net of taxes -- -- 91 --
 Net income (loss) $726 $254 $397 $(370)
 Income (loss) per common
 share and common share
 equivalent:
 Income (loss) before
 cumulative effect of change
 in accounting principle per
 common share and common
 share equivalents $0.09 $0.04 $(0.67) $(0.07)
 Cumulative effect of change in
 income tax accounting, net of
 taxes per common share and
 common share equivalents -- -- 0.01 --
 Net income (loss) per common
 share and common share
 equivalents $0.09 $0.04 $(0.66) $(0.07)
 Weighted average common
 shares and common share
 equivalents outstanding 8,080 5,656 6,792 5,684
 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) per common
 share and common share
 equivalents $0.09 $0.04 $0.06 $(0.07)
 Weighted average common
 shares and common share
 equivalents 8,080 5,656 7,072 5,684
 -0- 7/14/92
 /CONTACT: John Mackay of Padilla Speer Beardsley, 612-871-8877, for DAMARK International, or James Tuller of DAMARK International, 612-531-0066/
 (DMRK) CO: DAMARK International, Inc. ST: Minnesota IN: REA SU: ERN


AL -- MN015 -- 9265 07/14/92 16:45 EDT
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Date:Jul 14, 1992
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