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RECOVERY ENGINEERING REPORTS THIRD QUARTER RESULTS; 128-PERCENT GAIN IN NET INCOME FOR NINE MONTHS

 MINNEAPOLIS, Oct. 20 /PRNewswire/ -- Recovery Engineering, Inc. (NASDAQ: REIN) today reported net income of $267,000, equal to 8 cents per share, on sales of $2,227,000 for its third quarter ended Sept. 30, 1993. This compares with net income of $216,000, or 8 cents per share, on sales of $1,857,000 for the third quarter last year. Weighted average shares outstanding for the quarter increased 35 percent over the comparable period last year, largely as a result of the public offering of 661,250 shares in March 1993.
 Net income for the nine-month period increased 128 percent to $976,000, or 30 cents per share, on sales of $7,295,000. This compares with net income of $427,000, or 17 cents per share, on sales of $4,973,000 for the first nine months of 1992.
 Operating income for the third quarter increased to 16 percent of sales, at $355,000, compared with $276,000, or 15 percent of sales, in 1992. Nine-month operating income was $1,387,000, improving to 19 percent of sales, compared with $563,000, or 11 percent of sales, for the same period last year.
 "As expected, Recovery Engineering's sales and net income for the first three quarters of this year exceeded our performance for all of 1992," said Brian F. Sullivan, president and CEO. "Third quarter sales increased 20 percent over last year, largely due to the Air Force contract we signed in July. As indicated in our second quarter report, the third quarter historically is not as strong as the rest of the year, because it falls between the peak sales periods of the outdoor recreation and commercial marine markets. The year-to-date sales and income trend is nonetheless strongly positive, leading us to anticipate substantial gains for the full year."
 Operating and net income continue to benefit from efficiency improvements. Research and development spending for the nine-month period more than doubled over 1992 levels and is up as a percentage of sales, consistent with the company's product development plans.
 Recovery Engineering, based in Minneapolis, designs, develops, manufactures and markets proprietary small-scale water purification and desalination systems for marine and recreational applications.
 RECOVERY ENGINEERING, INC.
 Statements of Income
 (Unaudited -- In thousands, except per-share amounts)
 Three months ended Nine months ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 Sales $ 2,227 $ 1,857 $ 7,295 $ 4,973
 Gross Profit 1,139 867 3,772 2,224
 Income From Operations 355 276 1,387 563
 Earnings Before Income Taxes 404 331 1,478 600
 Net Income 267 216 976 427
 Earnings Per Share .08 .08 .30 .17
 Average Common and Common
 Equivalent Shares Outstanding 3,454 2,561 3,261 2,515
 -0- 10/20/93
 /CONTACT: John Swenson of Swenson/Falker Associates, 612-371-0000 or Jeff Mathiesen of Recovering Engineering, 612-541-1313/
 (REIN)


CO: Recovery Engineering, Inc. ST: Minnesota IN: SU: ERN

DS-AL -- MN021 -- 4798 10/20/93 17:11 EDT
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Publication:PR Newswire
Date:Oct 20, 1993
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