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NUTMEG RECORD THIRD-QUARTER INCOME OF $6.4 MILLION IS 14TH CONSECUTIVE QUARTERLY INCREASE

 TAMPA, Fla., Nov. 22 /PRNewswire/--Nutmeg Industries, Inc. (NYSE: NTM) today reported record net income of $6,367,000 or $.34 per share for the third quarter ended Oct. 30, 1993. It was the company's 14th consecutive quarter of record income and a 50 percent increase over net income of $4,257,000 or $.23 per share in the third quarter a year ago.
 Net sales for this year's third quarter were $66.1 million, also a record high for 14 consecutive quarters. Sales increased 11 percent over net sales of $59.8 million for the three months ended Oct. 24, 1992.
 For the nine months ended Oct. 30, 1993, net sales were $144.2 million, up 21 percent over the $118.9 million of last year's first three quarters. Nine-month net income this year grew by 38 percent to $10,963,000 or $.58 per share compared to last year's $7,955,000 or $.42 per share.
 Richard E. Jacobson, Nutmeg chairman and chief executive officer, said, "Despite a very mixed retail environment, we are pleased to report the highest quarterly sales and profits in our history. Gross profit margins improved from 31.1 percent in last year's third quarter to 35.6 percent this year. The gain is due mainly to greater utilization of our screenprint facilities, improved efficiencies in our embroidery operations and distribution center and more efficient and expanded vertical sourcing of blank garments.
 "Our sales reflect the continuing challenge of getting timely purchase commitments from cautious retailers," Jacobson added. "Most importantly, retail acceptance of our products continues to be good, as indicated by the 21 percent sales increase so far this year compared to a year ago."
 Jacobson added, "Our fourth quarter traditionally relies more on reorder business and Christmas sales. Our current backlog of $45 million compares to a $38 million backlog last year at this time. We are continuing to invest in new equipment, improved systems and expanded facilities. We have a very strong balance sheet with debt-to- total-capital of only .25 to 1. Our capital investments and financial health are important weapons in our fight for increased market share as intense consolidation of the industry continues."
 Jacobson said early bookings of Nutmeg's 1994 expanded line of more popularly priced jackets have been encouraging. "We have several other growth opportunities," he continued. "We hope to make continued progress in our cap business next year, possibly using lower-cost imports to complement our domestic manufacturing capabilities."
 New licenses -- NASCAR and some of its most important drivers and the World Cup -- are performing well, Jacobson said. The children's business, international markets, and expanded activity in the corporate, advertising specialty and golf markets "are also expected to grow in importance."
 Nutmeg designs, manufactures and markets high-quality sportswear under licenses granted by Major League Baseball, the National Basketball Association, the National Football League, the National Hockey League and their respective player associations. Nutmeg is also licensed by most major colleges and universities, various European soccer clubs and other licensors including World Cup and NASCAR. The licenses authorize Nutmeg to use team names, logos and other names and graphics in a wide variety of apparel.
 NUTMEG INDUSTRIES, INC.
 CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
 (In thousands, except per-share data)
 Three Months Ended Nine Months Ended
 Oct. 30, Oct. 24, Oct. 30, Oct. 24,
 1993 1992 1993 1992
 Net sales $ 66,091 $ 59,805 $144,215 $118,945
 Cost and expenses:
 Cost of merchandise sold 42,564 41,217 94,831 80,919
 Selling, general and
 administrative 13,223 11,849 31,421 25,620
 Interest 257 114 432 78
 Other (income) expense (28) 30 1 32
 Total costs and expenses 56,016 53,210 126,685 106,649
 Income before income taxes 10,075 6,595 17,530 12,296
 Income tax provision 3,708 2,338 6,567 4,341
 Net income $ 6,367 $ 4,257 $ 10,963 $ 7,955
 Net income per share $ .34 $ .23 $ .58 $ .42
 Weighted average number
 of common shares used
 in the calculation 18,940 18,841 18,903 18,774
 -0- 11/22/93
 /CONTACT: George N. Derhofer, senior vice president and chief financial officer, Nutmeg Industries, Inc., 813-963-6153, ext. 122/
 (NTM)


CO: Nutmeg Industries, Inc. ST: Florida IN: TEX SU: ERN

AW -- FL014 -- 6969 11/22/93 16:41 EST
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Publication:PR Newswire
Date:Nov 22, 1993
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