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GRAHAM-FIELD HEALTH PRODUCTS, INC. REPORTS RECORD REVENUES FOR THE THIRD QUARTER AND NINE MONTHS ENDING SEPTEMBER 30, 1992

 GRAHAM-FIELD HEALTH PRODUCTS, INC. REPORTS RECORD REVENUES
 FOR THE THIRD QUARTER AND NINE MONTHS ENDING SEPTEMBER 30, 1992
 HAUPPAUGE, N.Y., Nov. 12 /PRNewswire/ -- Graham-Field Health Products, Inc. (NYSE: GFI), a manufacturer and supplier of healthcare products, today reported record revenues for the third quarter ended Sept. 30, 1992. Revenues for the quarter were $24,421,000 as compared to $14,918,000 for the same period last year, a 64 percent increase. Income before income taxes was $1,449,000 as compared to $1,698,000 for the prior year. Net income was $875,000 or $.07 per share on 12,810,000 weighted average shares outstanding as compared to $1,487,000 or $.13 per share on 11,838,000 weighted average shares outstanding for the prior year. The income for the 1992 quarter was taxed at a rate of 40 percent versus the 1991 tax rate of 12 percent. The company has fully utilized all of its tax loss carryforwards for accounting purposes.
 For the nine months ended Sept. 30, 1992, revenues were a record $59,729,000 as compared to $40,658,000 for the same period last year, a 47 percent increase. Income before income taxes was $3,453,000 as compared to $3,157,000 for the same period last year, a 9 percent increase. Net income was $2,053,000 or $.16 per share on 12,683,000 weighted average shares outstanding as compared to $2,881,000 or $.32 per share on 9,071,000 weighted average shares outstanding for the prior year. The income for 1992 was taxed at the rate of 41 percent as compared to the 1991 tax rate of 9 percent.
 The record increase in revenues was primarily due to the increase in product lines resulting from the company's acquisition of Diamond Medical Equipment Corp. and National Health Care Equipment, Inc., on May 28, 1992, along with the continued growth and acceptance of the company's Consolidation Advantage Program (CAP), by its customers.
 The growth in revenues was primarily in the home healthcare marketplace, which historically has lower profit margins than in the hospital/physician market. The decrease was partially offset by increased sales and production levels, which resulted in increased Temco gross profit margins during the later part of the third quarter and is expected to continue into the fourth quarter. Therefore, the overall gross margin as a percentage of revenues earned by the company in the quarter was lower than last year's quarter.
 The company's St. Louis distribution facility, which will be its largest distribution facility, officially came on-line Oct. 1, 1992. Due to a delay in the original expected opening date, the company experienced significant inefficiencies in its warehousing/distribution operations, which resulted in increases in selling, general and administrative costs of at least $500,000, which included additional payroll, freight-out and other warehousing costs. Some of these additional costs will continue through the end of the year, until the St. Louis facility is fully stocked and manned. Full automation is expected to be completed by mid 1993.
 Irwin Selinger, chairman and chief executive officer stated, "although pre-tax profits were significantly below our expectations, the quarter did provide many bright spots. Most notably was Graham-Field's 64 percent increase in revenues. Our job now is to become operationally efficient and turn our increased revenues into profits. We believe that the St. Louis distribution facility, and the improvement at Temco will make that happen in fiscal, 1993."
 Graham-Field manufactures, markets and distributes approximately 19,500 healthcare products for hospital, physician and home use to approximately 16,000 home healthcare, physician, hospital supply and pharmaceutical distributors, retailers and wholesalers.
 CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
 GRAHAM-FIELD HEALTH PRODUCTS, INC. AND SUBSIDIARIES
 (Unaudited)
 Three Months Ended Nine Months Ended
 September 30, September 30,
 1992 1991 1992 1991
 Revenues $24,421,109 $14,918,293 $59,728,951 $40,657,746
 Cost and expenses:
 Cost of revenues 15,975,982 8,813,351 38,277,211 24,353,875
 Selling, general and
 administrative 6,509,087 4,318,678 16,790,263 12,052,732
 Interest expense 486,671 88,545 1,208,123 1,094,181
 Total 22,971,740 13,220,574 56,275,597 37,500,788
 Income before income
 taxes 1,449,369 1,697,719 3,453,354 3,156,958
 Income taxes 574,000 211,256 1,400,000 276,423
 Net income $ 875,369 $ 1,486,463 $ 2,053,354 $ 2,880,535
 Net income per share $ .07 $ .13 $ .16 $ .32
 Fully-diluted net
 income per share $ -- $ .12 $ -- $ .31
 Weighted average number of common and
 common equivalent shares outstanding
 Primary 12,810,000 11,838,000 12,683,000 9,071,000
 Assuming fully
 diluted -- 12,303,000 -- 10,062,000
 -0- 12/12/92
 /CONTACT: Gary M. Jacobs, chief financial officer of Graham-Field, 516-582-5900/
 (GFI) CO: Graham-Field Health Products, Inc. ST: New York IN: MTC SU: ERN


KD -- NY088 -- 0368 11/12/92 16:22 EST
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Copyright 1992 Gale, Cengage Learning. All rights reserved.

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Date:Nov 12, 1992
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