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FINGERHUT REPORTS 16 PERCENT INCREASE IN REVENUES & EARNINGS; DECLARES QUARTERLY DIVIDEND

 FINGERHUT REPORTS 16 PERCENT INCREASE IN REVENUES & EARNINGS;
 DECLARES QUARTERLY DIVIDEND
 MINNEAPOLIS, July 15 /PRNewswire/ -- Fingerhut Companies, Inc. (NYSE: FHT) announced that second quarter 1992 net earnings increased 16.4 percent to $11.2 million or $.43 per share from $9.7 million or $.39 per share for the second quarter of 1991. Net revenues for the second quarter of 1992 increased 16.9 percent to $359 million, compared with $307 million for the same period in 1991. The first half 1992 net earnings increased to $20.8 million or $.80 per share from 1991 net earnings of $18.1 million or $.73 per share. Net revenues for the first half of 1992 were $668 million, compared with $621 million for the same period in 1991.
 Fingerhut net sales for the second quarter increased to $276 million from $244 million in 1991 primarily due to increased mailings to Fingerhut's customer list and sales from Fingerhut's new customer acquisition programs. Net sales from subsidiaries were $52 million, an increase of approximately $14 million over second quarter 1991.
 In the second quarter, administrative and selling expenses were 38.5 percent of net sales compared with 37.1 percent for the second quarter of 1991. The increase is primarily attributable to lower sales per advertising dollar spent on Fingerhut's customer list, partially offset by improved sales per advertising dollar spent on Fingerhut's new customer acquisition programs. The provision for uncollectible accounts in the second quarter was 13.2 percent of net sales compared to 14.9 percent last year, primarily due to improvements in the subsidiaries.
 Finance income, net, was $31.2 million in the second quarter of 1992, an increase of $6.7 million over the prior year due to an increase in the percentage of accounts receivable sold as well as increased sales from Fingerhut's customer list and new customer acquisition programs.
 "I am extremely pleased with the second quarter results, particularly since we achieved them in a very tough retail environment," said Ted Deikel, Fingerhut chairman and CEO. "However, we remain cautious in our forecasts of consumer trends for the balance of the year."
 To take advantage of low medium term interest rates, the company recently completed a $75 million private placement of unsecured notes. Proceeds were used to reduce bank borrowings.
 The company also announced that it has declared its quarterly cash dividend in the amount of $.08 per share payable on Aug. 20, 1992, to the shareholders of record at the close of business on July 29, 1992.
 Fingerhut Companies, Inc. is one of the nation's largest catalog marketing companies and sells brand name and private label merchandise to an active base of 13 million customers. The company employs approximately 8,000 people in locations in Minnesota, Wisconsin and Tennessee. Fingerhut Companies, Inc. common stock trades on the New York Stock Exchange under the symbol FHT.
 FINGERHUT COMPANIES, INC. AND SUBSIDIARIES
 Consolidated Statements of Financial Position
 (In thousands of dollars)
 ASSETS 6/26/92 12/27/91
 (unaudited)
 Current assets:
 Cash and cash equivalents $5,068 $9,226
 Customer accounts receivable, net 270,387 331,410
 Inventories, net 142,020 120,461
 Promotional material 52,511 43,529
 Deferred and other income taxes 61,812 78,491
 Other 7,856 8,003
 Total current assets 539,654 591,120
 Property, plant and equipment, net 162,252 141,956
 Excess of cost over fair value of
 net assets acquired, net 48,422 48,822
 Customer lists, net 16,818 17,176
 Other assets 5,942 2,925
 -- $773,088 $801,999
 LIABILITIES
 Current liabilities:
 Accounts payable $121,571 $127,520
 Accrued payroll and employee benefits 21,518 32,610
 Other accrued liabilities 51,963 57,299
 Revolving credit facility 36,000 57,000
 Current portion of long-term debt
 and capitalized lease 319 5,853
 Current income taxes payable 5,876 12,593
 Total current liabilities 237,247 292,875
 Long-term debt and capitalized lease,
 less current portion 127,330 119,164
 Deferred income taxes 2,330 1,990
 Other non-current liabilities 3,814 3,821
 STOCKHOLDERS' EQUITY
 Preferred stock, $.01 par value;
 5,000,000 shares authorized; none
 issued or outstanding -- --
 Common stock, $.01 par value;
 50,000,000 shares authorized;
 23,898,300 and 23,832,700
 issued and outstanding
 in 1992 and 1991, respectively 239 238
 Additional paid-in capital 255,475 254,261
 Earnings reinvested 146,653 129,650
 Total stockholders' equity 402,367 384,149
 -- 773,088 801,999
 FINGERHUT COMPANIES, INC. AND SUBSIDIARIES
 Consolidated Statements of Earnings
 (In thousands of dollars, except per share data)
 (Unaudited)
 13 Weeks Ended 26 Weeks Ended
 6/26/92 6/28/91 6/26/92 6/28/91
 Revenues:
 Net sales $327,875 $282,726 $612,810 $572,465
 Finance income, net 31,198 24,505 55,735 48,542
 -- 359,073 307,231 668,545 621,007
 Cost and expenses:
 Product cost 160,009 135,537 291,810 273,911
 Administrative and
 selling expenses 126,107 104,948 239,270 212,958
 Provision for uncollectible
 accounts 43,121 42,090 81,512 83,278
 Discount on sale of
 accounts receivable 5,315 4,074 9,265 12,141
 Interest expense, net 7,569 5,760 15,039 10,785
 -- 342,121 292,409 636,896 593,073
 Income before income
 tax provision 16,952 14,822 31,649 27,934
 Provision for income taxes 5,717 5,169 10,824 9,788
 Net income $11,235 $9,653 $20,825 $18,146
 Earnings per share of
 common stock and common
 stock equivalents $0.43 $0.39 $0.80 $0.73
 Weighted average shares
 of common stock and
 common stock
 equivalents 26,020,228 24,968,101 26,064,054 24,727,810
 FINGERHUT COMPANIES, INC. AND SUBSIDIARIES
 (In thousands, except per share data)
 (Unaudited)
 13 Weeks Ended 26 Weeks Ended
 6/26/92 6/28/91 6/26/92 6/28/91
 Revenues $359,073 $307,231 $668,545 $621,007
 Net income $11,235 $9,653 $20,825 $18,146
 Earnings per share of
 common stock and common
 stock equivalents $0.43 $0.39 $0.80 $0.73
 Weighted average shares
 of common stock and
 common stock
 equivalents (000s) 26,020 24,968 26,064 24,728
 -0- 7/15/92
 /CONTACT: Theodore Deikel of Fingerhut, 612-936-5410/
 (FHT) CO: Fingerhut Companies, Inc. ST: Minnesota IN: REA SU: ERN


AL -- MN002 -- 9339 07/15/92 05:46 EDT
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Date:Jul 15, 1992
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