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ROYAL APPLIANCE REPORTS SECOND QUARTER RESULTS

 CLEVELAND, July 26 /PRNewswire/ -- Royal Appliance Mfg. Co. (NYSE: RAM), maker of the Dirt Devil(R) vacuum cleaners, reported today that its net sales for the quarter ended June 30, 1993, were $53,242,000, down 31 percent from $77,580,000 for the comparable period in 1992, resulting in a net loss for the second quarter of $9,621,000 compared with net income of $902,000 for 1992. Net loss per share was $.40 for the quarter ended June 30, 1993, compared to earnings per share of $.04 for the comparable period in 1992. The second quarter loss was due primarily to lower net sales and a lower gross margin. Gross margin for the second quarter decreased from the comparable period in 1992 to 16 percent of net sales due to several factors, primarily a decrease in net sales, a decrease in the sale of higher margin products, lower production levels and higher product returns.
 Net sales for the six months ended June 30, 1993, were $123,604,000, down 20 percent from the corresponding period last year, resulting in a net loss for the six months ended June 30, 1993, of $16,403,000 compared with net income of $5,452,000 for 1992.
 Michael J. Merriman, vice president-finance, stated, "The company's sales have been and continue to be negatively affected by, among other things, the sluggish retail environment and heightened competition. It is unlikely that the company will make a profit for 1993."
 The company also announced it has completed an amendment to the terms of its secured revolving line of credit as of June 30, 1993. The secured revolving line of credit provides for borrowings up $120,000,000 subject to a borrowing base formula.
 The company develops, assembles, and markets a full line of vacuum cleaners for home and commercial use under the Dirt Devil(R) and Royal(R) brand names. The company's executive offices are located at 650 Alpha Drive, Cleveland, Ohio 44143.
 COMPARATIVE FINANCIAL RESULTS
 1992 1993
 3 months to June 30
 Net sales $ 77,580,000 $ 53,242,000
 Gross margin 26,469,000 8,469,000
 Advertising and promotion 17,481,000 14,986,000
 Net income (loss) 902,000 (9,621,000)
 Per share(A) $.04 $(.40)
 Weighted average number of
 common shares outstanding(A) 25,404,000 24,000,000
 6 months to June 30
 Net sales $154,739,000 $123,604,000
 Gross margin 55,660,000 24,554,000
 Advertising and promotion 31,584,000 32,706,000
 Net income (loss) 5,452,000 (16,403,000)
 Per share(A) $.21 $(.68)
 Weighted average number of
 common shares outstanding(A) 25,415,000 24,000,000
 (A) -- The above per share amounts reflect the 2-for-1 stock split that became effective on July 17, 1992.
 Due to the highly seasonal nature of the company's business, particularly the critical fourth quarter holiday season, it is the company's policy not to make any annual or quarterly sales or earnings projections for external use and not to endorse any analysts' sales or earnings estimates.
 -0- 7/26/93
 /CONTACT: Michael J. Merriman, vice president-finance, or Richard G. Vasek, controller, both of Royal Appliance Mfg. Co., 216-449-6150/
 (RAM)


CO: Royal Appliance Mfg. Co. ST: Ohio IN: MAC SU: ERN

BM -- CL008 -- 5662 07/26/93 11:38 EDT
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Publication:PR Newswire
Date:Jul 26, 1993
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