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DAY RUNNER(R) ANNOUNCES FIRST QUARTER 1993 RESULTS

 FULLERTON, Calif., April 27 /PRNewswire/ -- Day Runner Inc. (NASDAQ: DAYR) today reported sales and earnings for the first quarter of 1993. The company reported net income of $765,000, or $0.13 per share, compared with $441,000, or $0.08 per share, for the first quarter of 1992. Net income for the quarter includes a one- time benefit of $350,000 ($0.06 per share) recorded as of Jan. 1, 1993, for the company's change in its method of accounting for income taxes as required by Statement of Financial Accounting Standards No. 109. The weighted average number of common and common equivalent shares outstanding for the first quarter of 1993 was 6,050,000 compared with 5,234,000 for the first quarter of 1992.
 Sales for the first quarter of 1993 were $14,009,000, compared with $14,530,000 for the first quarter of the prior year. Day Runner attributed the 3.6 percent decline in sales primarily to timing of orders from certain large office products customers.
 Mark Vidovich, chairman and chief executive officer, commented, "Our market intelligence indicates that although our sales to these certain large office products customers declined, their retail sales of Day Runner products actually grew for the first quarter of 1993 compared with the first quarter of last year. Because of this, we are optimistic that as the year continues our sales to these customers will increase to more closely reflect consumer demand.
 "These customers tend to place relatively large orders, and the timing of these orders is not fully predictable," Mr. Vidovich continued. "We believe that this gap between our sales and consumer purchases of our products during the first quarter is related to the excellent customer service levels we have been achieving since mid- 1992, which we believe have been allowing some of our larger customers to manage their inventories more tightly. We see excellent opportunities for sales growth for the year in the office products channel as well as the mass market."
 Sales to office products customers declined 16.9 percent from approximately $9.1 million in the first quarter of 1992 to approximately $7.5 million in the first quarter of 1993. Sales to mass market customers, including wholesale clubs, increased 7.5 percent to approximately $4.1 million from approximately $3.8 million in the first quarter of 1992. The company attributed the relatively small size of the increase to the fact that the year- ago first quarter included Day Runner's initial shipments to approximately 1,000 Wal-Mart stores.
 The company's financial results historically have exhibited significant seasonality due to its customers' and users' buying patterns, which have adversely affected sales and net income for the first two quarters of each year.
 Gross profit as a percentage of sales decreased from 50.7 percent for the first quarter of 1992 to 49.2 percent for the first quarter of 1993 due primarily to the company's decreased ability to absorb certain fixed expenses as a result of lower levels of production. Total operating expenses declined as a percentage of sales from 44.6 percent to 44.2 percent primarily due to lower distribution expense.
 Day Runner is the leading developer, manufacturer and marketer of paper-based personal organizers for the retail market. The company markets three lines of personal organizers, nine planners and a wide variety of refills and accessories. Day Runner's products are carried by over 10,000 retail stores across the United States, and its Day Runner System line of personal organizers is the nationwide best-selling line of paper-based organizers through retail stores.
 DAY RUNNER, INC.
 (In thousands, except per share amounts)
 Three Months Ended
 March 31,
 1993 1992
 (Unaudited)
 Consolidated Income Statement Data:
 Sales $14,009 $14,530
 Cost of goods sold 7,123 7,159
 Gross profit 6,886 7,371
 Operating expenses:
 Selling, marketing and distribution 4,450 4,677
 General and administrative 1,292 1,409
 Product development 441 395
 Total operating expenses 6,183 6,481
 Income from operations 703 890
 Interest expense 0 130
 Income before income taxes and cumulative
 effect of accounting change 703 760
 Provision for income taxes 288 319
 Income before cumulative effect of
 accounting change 415 441
 Cumulative effect of change in accounting
 for income taxes 350 0
 Net income $765 $441
 Earnings per common and common
 equivalent share:
 Income before cumulative effect of
 accounting change $0.07 $0.08
 Cumulative effect of change in
 accounting for income taxes 0.06 0
 Net income $0.13 $0.08
 Weighted average number of common
 and common equivalent shares 6,050 5,234
 March 31, Dec. 31, March 31,
 1993 1992 1992
 (Unaudited) (Unaudited)
 Consolidated Balance
 Sheet Data:
 Working capital $23,883 $22,875 $17,969
 Accounts receivable - net 3,026 7,734 2,371
 Inventories 18,646 18,567 12,808
 Total assets 34,273 35,955 28,772
 Short-term debt 497 499 80
 Long-term liabilities 72 96 158
 Shareholders' equity 26,828 25,686 19,824
 Three Months Ended March 31,
 1993 1992
 (Unaudited)
 Product Category:
 Organizers $9,091 64.9 pct $8,834 60.8 pct
 Planners 1,210 8.6 1,496 10.3
 Refills (including
 calendars) 3,631 25.9 3,943 27.1
 Other 77 0.6 257 1.8
 Total $14,009 100.0 pct $14,530 100.0 pct
 Three Months Ended March 31,
 1993 1992
 (Unaudited)
 Distribution Channel:
 Office products channel $7,532 53.8 pct $9,066 62.4 pct
 Mass market 4,118 29.4 3,831 26.4
 Gift/stationery and
 specialty stores 510 3.6 664 4.6
 International distributors 410 2.9 248 1.7
 Other channels 1,439 10.3 721 4.9
 Total $14,009 100.0 pct $14,530 100.0 pct
 -0- 4/27/93
 /EDITOR'S NOTE: (R) Registered trademark of Day Runner Inc./
 /CONTACT: Judy Tucker of Day Runner Inc., 714-680-3500, ext. 171; or Doug Sherk or Jenifer Kirtland, 415-296-7383, or Betsy Brod or Miriam Adler, 212-986-5900, all of Morgen-Walke Associates Inc., for Day Runner Inc./
 (DAYR)


CO: Day Runner Inc. ST: California IN: HOU SU: ERN

MS-KJ -- LA039 -- 1563 04/27/93 16:10 EDT
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Date:Apr 27, 1993
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