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DIY HOME WAREHOUSE, INC. ANNOUNCES FOURTH CONSECUTIVE QUARTER OF RECORD SALES AND EARNINGS

 CLEVELAND, April 19 /PRNewswire/ -- Clifford L. Reynolds, President and Chief Executive Officer of DIY Home Warehouse, Inc. (NASDAQ-NMS: DIYH) today announced record sales and earnings for the first quarter of fiscal 1994 ended April 1, 1994.
 Sales for the first quarter of fiscal 1994 were $22,006,000 compared to $14,403,000 for the same period of 1993, a 53 percent increase, despite unusually harsh weather conditions throughout the month of January. Comparable store sales for the first quarter of 1994 rose 6 percent, despite anticipated cannibalization caused by the Company's new stores.
 Operating income rose 33 percent to $513,000 for the first quarter of 1994 as compared to $386,000 for the comparable period of 1993.
 Net income was $357,000 for the first quarter of fiscal 1994, or $.05 per share. The Company was taxed as an S corporation for the prior comparable period. Had the Company been taxed as a C corporation, pro forma net income for the first quarter of fiscal 1993 would have been $213,000 or $.04 per share. (See the Condensed Statement of Income.)
 DIY Home Warehouse, Inc. opened its eighth store location in Warren, Ohio, on January 16, 1994 and its ninth in Ontario, (Mansfield, Ohio) on March 6, 1994. The Company's tenth location is currently being prepared for an opening in late May of this year.
 DIY Home Warehouse, Inc. operates nine warehouse format home centers which sell primarily to do-it-yourself home repair and remodeling customers in the Northeastern Ohio marketplace. The company was ranked fifth out of 200 "best small companies in America," in the November 8, 1993 issue of Forbes Magazine.
 DIY HOME WAREHOUSE, INC.
 CONDENSED STATEMENT OF INCOME
 (Dollar amounts in thousands except per share data)
 For The
 Three Months Ended
 April 1, April 3,
 1994 1993
 Net sales $22,006 $14,403
 Cost of sales 15,103 9,880
 Gross profit 6,903 4,523
 Operating expenses 6,086 3,652
 Store preopening costs 304 485
 Operating income 513 386
 Other income
 (expense) net 92 (24)
 Income before
 income taxes(A) 605 362
 Taxes on Income(A) 248 --
 Net Income $ 357 $ 362
 Net Income Per Share $ 0.05 $ 0.07
 Weighted average common
 equivalent shares
 outstanding 7,625,000 5,150,000
 Pro forma data(A)
 Net income $ 357 $ 213
 Net income per share $ 0.05 $ 0.04
 (A) -- In connection with the company's initial public offering on May 18, 1993, the company revoked its election to be taxed as an S corporation whereby its shareholders were taxed directly, and on that date, began being taxed as a C corporation. Had the company been taxed as a C Corporation, assuming a 41 percent effective tax rate, pro forma net income would have been $213,000 or $0.04 per share for the three months ended April 3, 1993.
 DIY HOME WAREHOUSE, INC.
 CONDENSED BALANCE SHEET
 (Dollar amounts in thousands)
 April 1, January 1,
 1994 1994
 ASSETS
 Cash and cash equivalents $958 $6,236
 Merchandise inventories 28,685 16,744
 Accounts receivable, affiliate 0 2,496
 Other current assets 626 616
 TOTAL CURRENT ASSETS 30,269 26,092
 Property and equipment, net 13,257 10,077
 Other assets 117 117
 TOTAL ASSETS $43,643 $36,286
 Liabilities and Shareholders' Equity
 Notes payable, affiliate $900 $900
 Accounts payable 13,673 7,126
 Other current liabilities 2,846 2,384
 Total current liabilities 17,419 10,410
 Long-term debt and other 65 74
 Total shareholders' equity 26,159 25,802
 Total liabilities and
 shareholders' equity $43,643 $36,286
 DIY Home Warehouse, Inc. is traded on NASDAQ, National Market issues, and is quoted daily in the Wall Street Journal. Its NASDAQ symbol is DIYH.
 -0- 4/19/94
 /CONTACT: Clifford L. Reynolds, President and Chief Executive Officer of DIY Home Warehouse, 216-328-5100/
 (DIYH)


CO: DIY Home Warehouse, Inc. ST: Ohio IN: REA SU: ERN

BM -- CL044 -- 7202 04/19/94 17:27 EDT
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Publication:PR Newswire
Date:Apr 19, 1994
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