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GOLDEN EAGLE GROUP FIRST QUARTER NET REVENUE UP 52 PERCENT

 MIAMI, May 14 /PRNewswire/ -- Golden Eagle Group, Inc. (NASDAQ: GEGP), today reported for the first quarter ended March 31, 1993, a 52 percent growth in net revenue and a 32 percent increase in pre-tax income.
 Net revenue (total revenue less freight consolidation costs) and pre-tax income increased from $512,873 and $52,845 for the quarter ended March 31, 1992, to $781,493 and $71,387, respectively, for the quarter ended March 31, 1993. Growth was attributed to an increase in the various business segments of the company's operations, and was fueled by the company's recent move into a larger warehouse facility in Medley, Fla., the hiring of new salespeople, and an increase in the number of customers (including new GOLD System users).
 Total revenue decreased from $2,285,181 to $2,017,838 for the first quarter comparative periods due to a mix change between collect freight and pre-paid freight agency business. "In the freight forwarding business, net revenue, as opposed to gross revenue, is the more accurate measure of a firm's activities because of the manner in which freight costs are passed on to customers," said Gary Goldfarb, the company's CEO. "If a transaction is pre-paid by the customer, the shipping charges are included in revenue and freight consolidation expenses; however, if a transaction is paid at the port of destination, Golden Eagle will bill for its commissions only and the shipping charges are paid directly by the customer."
 Net income for the first quarter amounted to $49,387 or $.03 per share, after a $22,000 provision for income taxes, compared with $52,845 or $.05 per share a year earlier, when there was no provision for income taxes.
 Since the company's initial public offering in November of 1992, the company has expanded its sales force including the hiring of industry veterans, and has added a variety of multi-national client accounts in various industries. New customers using the company's just-in-time inventory management system (the "GOLD System") include distributors of tires, generators, and toys.
 The company also announced that its newly leased Laredo, Texas, facility was recently opened for customers and the company's second largest GOLD System customer in Miami has started using Golden Eagle for its Laredo traffic in a similar fashion as in Miami. "This reinforces our view that future success in this industry will primarily be based on a freight forwarder's ability to offer its customers a fully integrated solution to their transportation needs," said Goldfarb.
 Golden Eagle Group, Inc., through its wholly owned subsidiaries, provides international ocean and air freight forwarding as well as transportation logistics and related services, principally for shipments from the United States to Central and South America and the Caribbean. The company is also a licensed customs broker.
 GOLDEN EAGLE GROUP, INC. AND SUBSIDIARIES
 Consolidated Statements of Income (Unaudited)
 Three months ended March 31 1993 1992
 Revenue $2,017,838 $2,285,181
 Freight consolidation costs 1,236,345 1,772,308
 Net revenue 781,493 512,873
 Operating expenses:
 Salaries and related costs 339,860 224,777
 General and administrative 370,246 235,251
 Total operating expenses 710,106 460,028
 Income before income taxes 71,387 52,845
 Provision for income taxes 22,000 --
 Net income $ 49,387 $ 52,845
 Income per common share:
 Primary $0.03 $0.08
 Fully diluted $0.03 $0.05
 Weighted average number of shares
 used in computing income per share:
 Primary 1,436,493 666,666
 Full diluted 1,948,787 1,166,666
 -0- 5/14/93
 /CONTACT: Gary Goldfarb, CEO of Golden Eagle, 305-888-1600; or Mark Cohen of Cameron Associates, 212-644-9560, for Golden Eagle/
 (GEGP)


CO: Golden Eagle Group, Inc. ST: Florida IN: TRN SU: ERN

GK-OS -- NY074 -- 8805 05/14/93 16:56 EDT
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Publication:PR Newswire
Date:May 14, 1993
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