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FRANKLIN QUEST REPORTS RECORD THIRD QUARTER RESULTS

 FRANKLIN QUEST REPORTS RECORD THIRD QUARTER RESULTS
 SALT LAKE CITY, June 29 /PRNewswire/ -- Franklin Quest Co. (NYSE: FNQ) today reported that third quarter revenue rose 46 percent and pro forma net income rose 49 percent compared with last year's third quarter ended May 31.
 Sales revenue for the quarter ended May 31, 1992 was $26.8 million, which represents an increase of $8.4 million compared to the like quarter a year ago. Sales revenue also reached record heights for the nine months ended May 31, 1992 of $91.5 million, up $30.6 million or 50 percent compared to the first nine months of the prior fiscal year. Pro forma net income for the quarter increased to $2.7 million or 16 cents per share on 16,898,777 shares, up from $1.8 million or 10 cents per share on 17,934,756 shares, an increase of 49 percent compared to the like quarter of fiscal 1991.
 Hyrum W. Smith, chairman, and Arlen B. Crouch, president, said that operating income increased 70 percent to $4.6 million in the third quarter from $2.7 million in 1991, and gross margins increased 58.1 percent from 56.8 percent. Year-to-date gross margin percentages were approximately the same as the preceding year.
 Sales improved as a result of increasing numbers of Franklin Day Planners sold and a larger number of Time Management seminars being presented. International sales comprised approximately $896,000, or 3 percent of total sales for the current quarter and Crouch indicated that he expects international sales to increase in future quarters.
 In June 1992, after the close of the third quarter, Franklin completed an initial public offering of 5,750,000 shares of its common stock at $15.50 per share; 4,025,000 shares were sold by the company and 1,725,000 shares were sold by existing shareholders. Proceeds to the company from the offering were approximately $58 million, which will be used to pay down debt, improve management information systems and for general corporate purposes, including the funding of the planned growth for the company. As a result of the company's initial public offering, the company is no longer treated as an S Corporation for tax purposes and, accordingly, pro forma net income and pro forma net income per share amounts for the interim periods assume the company had been taxed as a C Corporation. Earnings per share for the fourth quarter of fiscal 1992 and all of fiscal 1993 earnings per share will be impacted by the additional shares issued in the public offering.
 Franklin Quest is a provider of training seminars and the Franklin Day Planner, both designed to improve individual productivity through effective time management. The Franklin Day Planner is used by more than 1.9 million people and more than 15,000 people are trained monthly in the Franklin system. Franklin offers a variety of forms and accessories that allow users to expand and customize the Franklin Day Planner. Time Management seminars and Franklin Day Planners are sold by catalog and a growing number of company-owned stores across the United States.
 FRANKLIN QUEST CO.
 Consolidated Balance Sheets
 (in thousands, except per share data)
 Assets May 31, Aug. 31
 1992 1991
 Current assets:
 Cash and cash equivalents $1,765 $4,070
 Accounts receivable, less
 allowance for doubtful accounts of 10,803 8,540
 Inventories 13,710 11,679
 Other assets 594 1,720
 Total current assets 26,872 26,009
 Property and equipment, net 20,628 14,607
 Other assets 1,913 554
 $49,413 $41,170
 Liabilities and Shareholders' Equity
 Current liabilities:
 Accounts payable $8,028 $6,534
 Accrued liabilities 5,403 5,183
 Borrowings under lines of credit --- 2,250
 Current portion of long term debt
 and capital lease obligations 2,360 2,002
 Total current liabilities 15,791 15,969
 Long-term debt and capital lease
 obligations, less current portion 11,070 8,885
 26,861 24,854
 Shareholders' equity:
 Common stock, $0.05 par value,
 40,000,000 shares authorized;
 18,000,000 shares issued;
 15,862,500 and 15,952,500 shares
 outstanding 900 900
 Additional paid-in capital 607 257
 Retained earnings 25,220 19,084
 26,727 20,241
 Less 2,137,500 and 2,047,500 shares
 of treasury stock,at cost (4,175) (3,925)
 Total shareholders' equity 22,552 16,316
 $49,413 $41,170
 Consolidated Statements of Income
 (in thousands, except per share data)
 Three Months Ended Nine Months Ended
 May 31, May 31, May 31, May 31,
 1992 1991 1992 1991
 Sales:
 Direct sales:
 Seminars $7,350 $5,371 $20,484 $15,935
 Products 3,259 851 10,590 2,657
 Catalog 12,102 9,540 45,931 33,851
 Retail stores 4,062 2,575 14,490 8,485
 Total sales 26,773 18,337 91,495 60,928
 Cost of sales 11,211 7,914 37,957 25,486
 Gross margin 15,562 10,423 53,538 35,442
 Selling, general and
 administrative 10,383 7,324 30,080 20,459
 Depreciation and
 amortization 612 422 1,430 1,093
 Income from
 operations 4,567 2,677 22,028 13,890
 Interest income 86 73 197 132
 Interest expense (274) (302) (947) (940)
 Other income 49 331 135 418
 Income before
 provision for
 income taxes 4,428 2,779 21,413 13,500
 Provision for income
 taxes 89 46 436 243
 Net income $4,339 $2,733 $20,977 $13,257
 Unaudited pro forma
 data:
 Income before
 provision
 for income taxes $4,428 $2,779 $21,413 $13,500
 Provision for income
 taxes 1,727 966 8,351 4,693
 Net income $2,701 $1,813 $13,062 $8,807
 Net income per share $0.16 $0.10 $0.77 $0.49
 Weighted average number
 of common and common
 equivalent
 shares 16,898,777 17,934,756 16,917,829 17,983,722
 -0- 6/29/92
 /CONTACT: Arlen B. Crouch or Jay L. Atwood of Franklin Quest, 801-975-1776/
 (FNQ) CO: Franklin Quest Co. ST: Utah IN: SU: ERN


MC-BB -- DV006 -- 4868 06/29/92 16:19 EDT
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Date:Jun 29, 1992
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