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ESKIMO PIE CORPORATION REPORTS SECOND QUARTER EARNINGS

 RICHMOND, Va., July 20 /PRNewswire/ -- Eskimo Pie Corporation (NASDAQ-NMS: EPIE) today reported consolidated sales for the quarter ended June 30, 1993 increased 3 percent to $22,927,000 compared to $22,340,000 for the same period in 1992. Net income increased 2 percent to $1,976,000 compared with $1,932,000 for the second quarter of 1992. For the second quarter of 1993, on average outstanding shares of 3,616,487, earnings per share increased 2 percent to $0.55 compared to $0.54 on average outstanding shares of 3,609,087 for the same period in 1992.
 Sales increased 9 percent for the first six months of 1993 to $40,701,000 from $37,445,000 for the same period in 1992. In the first quarter of 1993, the company adopted the mandatory accounting standard, FAS 106 (Employer Accounting for Postretirement Benefits other than Pensions), resulting in an after-tax charge of $1,350,000 or $0.37 per share. Before this charge, income for the six months ended June 30, 1993, increased 8 percent to $3,063,000 compared with $2,843,000 for the same period in 1992. Excluding the effect of the accounting charge, earnings per share for the first six months of 1993 increased 4 percent to $0.85 on average outstanding shares of 3,613,135 from $0.82 on average outstanding shares of 3,465,998 for the same period in 1992. However, the non-cash accounting charge resulted in net income of $1,713,000 and earnings per share of $0.48 for the first six months of 1993.
 David V. Clark, president and CEO, stated "we are pleased with our second quarter and six-month results. Despite continued sluggishness in the frozen novelty market, Eskimo Pie's second quarter sales were up 3 percent and six-month sales were up 9 percent compared to the same periods last year. These results are especially gratifying given that we have effectively replaced the 11 percent of sales represented by Heath, which ended its licensing agreement with Eskimo Pie earlier this year. Sales of ESKIMO PIE brand products to our licensed manufacturers are up approximately 16 percent year-to-date, while Welch's sales are up some 28 percent year-to-date. The Company has also introduced several new products, including Tootsie Pops and Ghirardelli bars, and recently entered into a licensing agreement to develop and market frozen novelties under the 7-Up brand."
 Headquarterd in Richmond, the Company markets branded frozen novelties, including its ESKIMO PIE line of products, through a national network of licensed manufacturers.
 Financial highlights follow.
 ESKIMO PIE CORPORATION
 Consolidated Condensed Statements of Income
 (Unaudited)
 (In thousands except per share data)
 Three Months Ended Six Months Ended
 June 30, June 30,
 1993 1992 1993 1992
 Net sales $22,927 $22,340 $40,701 $37,445
 Cost of sales 12,059 12,455 21,601 20,958
 Gross profit 10,868 9,885 19,100 16,487
 Advertising
 and sales promotion 5,128 4,619 9,132 7,649
 General
 and administrative 2,557 2,191 4,863 4,309
 Operating income 3,183 3,075 5,105 4,529
 Interest income 62 57 123 214
 Interest expense & other (3) (27) (136) (89)
 Income before income
 taxes and cumulative
 effect of accounting
 changes 3,242 3,105 5,092 4,654
 Income taxes 1,266 1,173 2,029 1,811
 Income before cumulative
 effect of accounting
 changes 1,976 1,932 3,063 2,843
 Cumulative effect
 of accounting changes
 net of applicable
 income taxes -- -- (1,350) --
 Net income $1,976 $1,932 $1,713 $2,843
 Per common share
 Weighted average number
 of common shares
 outstanding 3,616,487 3,609,087 3,613,135 3,465,998
 Income before
 cumulative effect of
 accounting changes $0.55 $0.54 $0.85 $0.82
 Cumulative effect of
 accounting changes -- -- (0.37) --
 Net income $0.55 $0.54 $0.48 $0.82
 Cash dividends (A) $0.05 -- $0.10 $4.52
 (A) On March 17, 1992, the Company paid a special cash dividend of $4.52 per share to stockholders of record on Feb. 28, 1992.
 ESKIMO PIE CORPORATION
 Consolidated Condensed Balance Sheets
 (Unaudited)
 (In thousands)
 June 30, 1993 Dec. 31, 1992
 ASSETS
 Current assets:
 Cash and cash equivalents $6,826 $4,972
 Receivables 8,258 3,048
 Inventories 3,426 2,492
 Prepaid expenses 974 599
 Total current assets 19,484 11,111
 Property, plant & equipment 9,418 9,650
 Other assets 2,637 2,725
 Total $31,539 $23,486
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities:
 Accounts payable $2,641 $1,722
 Accrued advertising and promotion 5,158 1,396
 Accrued compensation and other 1,950 1,666
 Income taxes 989 899
 Long-term debt maturing within one year 175 175
 Total current liabilities 10,913 5,858
 Long-term debt 131 219
 Postretirement medical benefits 2,310 --
 Deferred income taxes -- 690
 Stockholders' equity:
 Common stock 3,616 3,609
 Additional capital 6,845 6,727
 Retained earnings 7,659 6,309
 Foreign currency translation 65 74
 Total stockholders' equity 18,185 16,719
 Total $31,539 $23,486
 -0- 7/20/93
 /CONTACT: J.L. Cheatham of Eskimo Pie Corporation, 804-560-8446/
 (EPIE)


CO: Eskimo Pie Corporation ST: Virginia IN: FOD SU: ERN

KD-DS -- DC005 -- 6698 07/20/93 10:34 EDT
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Date:Jul 20, 1993
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