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NORTH STAR UNIVERSAL ANNOUNCES THIRD-QUARTER AND NINE-MONTH 1993 RESULTS

 MINNEAPOLIS, Oct. 29 /PRNewswire/ -- North Star Universal, Inc. (NASDAQ: NSRU) today announced results for the third quarter and nine months ended Sept. 30, 1993. For the quarter, net income was $288,000, or 3 cents per share, versus a loss of $135,000, or 1 cent per share, in the year-ago quarter. Consolidated revenues increased 7 percent to $24.0 million from $22.5 million in the previous year.
 For the nine-month period, net income was $364,000, or 4 cents per share, as compared to a net loss of $1.8 million, or 19 cents per share, in 1992. Consolidated revenues for the first nine months of 1993 were $80.2 million versus $61.8 million in 1992, an increase of 30 percent.
 "We are pleased with our quarterly performance which saw gains across all major contributing segments of the company," said Jeffrey J. Michael, president and chief executive officer of North Star Universal. "Each of our computer businesses achieved higher operating profits, and we benefited from higher equity in earnings of Michael Foods and CorVel Corporation. Earnings at Michael Foods were up 84 percent to $1.3 million. CorVel reported a 71 percent increase in earnings.
 "For our computer businesses, this was the second consecutive quarter of higher operating profits. C.E. Services, despite lower sales, contributed higher profits through improved margins on the sale of used mainframe systems and features. Strong product demand at Transition Engineering generated significant revenue and earnings growth. Americable achieved good growth and improved profitability, led by its U.S. operations, which had a 33 percent increase in sales. This performance has been adversely impacted by its Canadian operation, which has experienced difficult competitive factors and margin erosion during the past three years. This trend has intensified during 1993, resulting in losses of approximately $200,000 for the first nine months of the year."
 As a parent company, North Star Universal, Inc., provides management and financial resources for the development and growth of its operating businesses. North Star's direct and indirect wholly owned subsidiaries include Americable, Transition Engineering and C.E. Services. Americable is a provider of voice and data communications networking products, systems and services. Transition Engineering designs, manufactures and markets connectivity devices used in local area network ("LAN") applications. C.E. Services remarkets, reconfigures, refurbishes and warehouses mainframe computers and peripherals and provides related technical and maintenance services. As of Sept. 30, 1993, North Star also owned a 38 percent interest in Michael Foods (NASDAQ: MIKL), and a 41 percent interest in CorVel Corporation (NASDAQ: CRVL).
 NORTH STAR UNIVERSAL INC.
 CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
 (Unaudited)
 (In thousands, except per share amounts)
 Three Months Ended Nine Months Ended
 9/30/93 9/30/92 9/30/93 9/30/92
 Revenues $24,047 $22,516 $80,175 $61,836
 Operating and product
 costs 17,588 16,714 61,532 45,333
 Gross profit 6,459 5,802 18,643 16,503
 Selling, general and
 administrative
 expenses 5,797 5,691 17,363 16,787
 Operating income
 (loss) 662 111 1,280 (284)
 Interest expense, net (1,096) (1,088) (3,212) (3,281)
 Loss before income taxes and
 equity in earnings of
 unconsolidated
 subsidiaries (434) (977) (1,932) (3,565)
 Income tax benefit (160) (400) (710) (266)
 Loss before equity in
 earnings of unconsolidated
 subsidiaries (274) (577) (1,222) (3,299)
 Equity in earnings of
 unconsolidated
 subsidiaries 562 442 1,586 1,455
 Net income (loss) $288 $(135) $364 $(1,844)
 Income (loss) per
 share $0.03 $(0.01) $0.04 $(0.19)
 Weighted average shares
 outstanding 9,858,000 9,821,000 9,706,500 9,859,000
 -0- 10/29/93
 /CONTACT: Melissa Quinn of Padilla Speer Beardsley, 612-871-8877, for North Star Universal; or Peter Flynn, North Star Universal, 612-941-7600/
 (NSRU)


CO: North Star Universal, Inc. ST: Minnesota IN: FIN SU: ERN

DB-DS -- MN006 -- 8656 10/29/93 15:57 EDT
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Publication:PR Newswire
Date:Oct 29, 1993
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