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DYANSEN CORPORATION ANNOUNCES RESULTS FOR 1991 AND FIRST AND SECOND QUARTERS OF 1992

 DYANSEN CORPORATION ANNOUNCES RESULTS FOR 1991
 AND FIRST AND SECOND QUARTERS OF 1992
 NEW YORK, Nov. 13 /PRNewswire/ -- Dyansen Corporation today reported results for the year and fourth quarter ended Dec. 31, 1991, as well as the first and second quarters of 1992.
 Net sales for 1991 were $24.7 million compared to $39.7 million recorded in the previous year. The company incurred a net loss for the year of $6,013,000 or $1.07 per share compared to a net loss of $2,143,000 or $.38 per share in 1990.
 Net sales for the fiscal 1991 fourth quarter were $4.4 million compared to $7.0 million reported in 1990. The net loss for the fourth quarter of 1991 was $4,202,000 or $.75 per share compared to a net loss of $3,398,000 or $.60 per share in the previous year. Fourth quarter charges for the write-off of certain intangible assets, inventory and leasehold improvements amounted to $2,100,000 in 1991 and $1,900,000 in 1990.
 Although the company achieved significant expense reductions in 1991, they were outpaced by the dramatic decline in sales and gross margins as a result of consumer weakness in spending for art during the current recession. This trend has continued in 1992.
 Net sales for the first and second quarters of 1992 were $3.5 million and $4.8 million, respectively, compared to $7.0 million and $6.4 million in the corresponding quarters in 1991. The company incurred net losses for the first and second quarters of 1992 of $1,800,000 or $.32 per share and $780,000 or $.14 per share, respectively. For the corresponding quarters of 1991, the company posted net losses of $369,000 or $.07 per share and $665,000 or $.12 per share, respectively.
 In August 1992, the company terminated the leases at and closed its Arlington, Va., gallery and one of its Hawaii galleries. These closings had no significant impact on the company's financial condition.
 In February 1992 the company defaulted on an interest payment under the borrowing agreement with Chrysler Capital Corporation. On March 27, 1992, an agreement was signed whereby Chrysler, subject to certain terms and conditions, agreed to forbear from exercising its remedies under the loan agreement. There have been several extensions and modifications to the forbearance agreement which is currently extended through Jan. 7, 1993. The parties have also entered into an inventory letter agreement on Oct. 29, 1992, whereby the company will segregate, on its premises, inventory aggregating $1.6 million on behalf of Chrysler, who will attempt to sell the inventory on its own or through the company. The company will retain title to the segregated inventory and as such inventory is sold, the loan balance will be reduced, accordingly.
 Since the signing of the forbearance agreement the company has made payments to Chrysler of approximately $2,200,000 and has reduced the loan balance to approximately $7,200,000.
 In April 1992 the company defaulted on an interest payment to the holders of its convertible subordinated notes. In May 1992 the noteholders indicated in writing that they will not proceed against the company at the present time.
 No assurance can be given that the company will be able to continue as a going concern in view of its weakened financial condition. The company's continued existence is dependent upon a turnaround in the economy, a capital infusion and the generation of sufficient cash flows to meet its obligations and sustain operations. Additionally, the company must continue negotiations with Chrysler to extend the forbearance agreement and to prevail upon the subordinated noteholders to forbear from exercising default remedies available to them.
 The company has been successful in negotiations with landlords and other creditors for reductions in or deferral of payments and will continue to explore these avenues.
 Concurrently, the company is engaged in negotiations with potential investors for the infusion of capital. No assurances can be given that any such negotiations will be successfully consummated by the company. In the absence of all or some of these events, the company may be forced to seek protection under the U.S. Bankruptcy Code.
 DYANSEN CORPORATION
 (Amounts in thousands, except per share data)
 Periods ended Quarter Year
 Dec. 31 1991 1990 1991 1990
 (Unaudited) (Audited)
 Sales $ 4,420 $ 7,041 $24,665 $39,655
 Loss before income
 tax benefit $(4,329) $(4,035) $(6,578) $(2,010)
 Net loss $(4,202) $(3,398) $(6,013) $(2,143)
 Loss per share $(.75) $(.60) $(1.07) $(.38)
 Weighted average common
 shares outstanding 5,618 5,618 5,618 5,643
 Quarter ended 3/31/92 3/31/91 6/30/92 6/30/91
 (Unaudited) (Unaudited)
 Sales $ 3,544 $7,026 $4,785 $6,425
 Loss before income
 tax benefit $(1,800) $ (544) $ (780) $ (838)
 Net loss $(1,800) $ (369) $ (780) $ (665)
 Loss per share $(.32) $(.07) $(.14) $(.12)
 Weighted average common
 shares outstanding 5,618 5,618 5,618 5,618
 -0- 11/13/92
 /CONTACT: Harris Shapiro, chairman, or Philip Dondiego Jr., chief financial officer of Dyansen, 212-627-6410/ CO: Dyansen Corporation ST: New York IN: SU: ERN


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Publication:PR Newswire
Date:Nov 13, 1992
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