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SPECIALTY CHEMICAL RESOURCES, INC. REPORTS 65 PERCENT INCREASE IN OPERATING PROFIT ON 26 PERCENT SALES GAIN FOR THE FIRST QUARTER

 SPECIALTY CHEMICAL RESOURCES, INC. REPORTS 65 PERCENT INCREASE IN OPERATING PROFIT ON 26 PERCENT SALES GAIN FOR THE FIRST QUARTER
 CLEVELAND, April 20 /PRNewswire/ -- Specialty Chemical Resources, Inc. (AMEX: CHM) today reported a 65 percent increase in operating profit on a 26 percent increase in sales for the first quarter ended March 31, 1992 over the comparable period of the prior year. Sales for the current year first quarter were $11,199,000, up from $8,863,000 a year earlier. Operating profit for the three months ended March 31, 1992 was $938,000 in contrast to $570,000 in last year's first quarter. All financial information excludes data related to operations discontinued in 1991.
 The company sold 2,400,000 shares of its common stock at $10 per share in a public offering on Feb. 27, 1992. On March 27, 1992, the underwriters exercised an option to purchase an additional 360,000 shares at $10 per share to cover overallotments. On March 31, 1992, the company arranged a $10 million bank line of credit at the prime rate which, with proceeds from the public offering, enabled it to retire all of its prior indebtedness.
 In connection with its debt retirement in the first quarter of 1992, the company incurred non-cash, non-recurring charges of $945,000 for deferred financing costs and $191,000 for an original issue discount. In addition, first quarter 1992 interest expense amounted to $690,000.
 The company said that as a consequence of such non-recurring charges, it had a net loss for the first quarter 1992 of $886,000, or 51 cents per share on a weighted average of 1,740,000 shares outstanding. This compared to a net loss of $470,000 or 47 cents per share on a weighted average of 1,008,000 shares for the first quarter of the prior year.
 The company said that with the non-cash, non-recurring charges excluded, it would have recorded a net profit of $160,000, or $.08 per share for the first quarter 1992.
 Edwin M. Roth, chairman and chief executive officer, said, "First quarter sales and operating income suggest the year will be a strong one for the company." The sales gain was attributable to new products, new customers and core business growth. He noted, however, that first quarter 1991 sales, by comparison, were adversely impacted by the recession and the effects of the Gulf War.
 The company reported a significantly improved financial position. Shareholders' equity as of March 31, 1992 amounted to $28,080,000, in contrast to $4,209,000 as of Dec. 31, 1991. March 31, 1992 long-term debt was $7,385,000, down from $29,924,000 as of Dec. 31, 1991.
 Specialty Chemical Resources is a leading formulator and packager of aerosol products primarily for industrial maintenance and automotive service professionals. The company's aerosol products include cleaners, sealants, gasket compounds, lubricants, waxes, adhesives, paints, coatings, degreasers, polishes, anti-statics and tire inflators.
 CONSOLIDATED INCOME STATEMENTS (Unaudited)
 (Amounts in thousands except per share amounts)
 Three months ended March 31 1992 1991(A)
 Net sales $11,199 $8,863
 Gross profit 2,444 1,889
 Operating profit 938 570
 Interest expense 690 1,042
 Other (income) expenses:
 Write-off of original issue
 discount(B) 191 ---
 Write-off of deferred financing
 costs(B) 945 ---
 Other (income) (2) (2)
 Income (loss) before taxes (886) (470)
 Taxes --- ---
 Net income (loss) $(886) $(470)
 Earnings (loss) per share $(.51) $(.47)
 Weighted average shares
 outstanding(C) 1,740 1,008
 Proforma (excludes the write-off
 of original issue discount and
 deferred financing costs):
 Net income (loss) $160 $(470)
 Earnings (loss) per share $.08 $(.47)
 Weighted average shares
 outstanding(C) 1,914 1,008
 (A) Financial information excludes data related to operations discontinued in 1991.
 (B) Non-recurring, non-cash write-off of original issue discount and deferred financing costs related to retirement of debt with common stock offering proceeds.
 (C) Weighted average shares outstanding include common stock equivalents except in loss periods whereby they would be anti- dilutive.
 CONSOLIDATED BALANCE SHEETS (Unaudited)
 (Dollars in thousands)
 March 31 Dec. 31
 1992 1991
 Assets
 Current Assets
 Cash $ 460 $ 293
 Receivables 6,784 6,294
 Inventory 5,817 5,160
 Other 335 224
 Total current assets $13,396 $11,971
 Net fixed assets 3,888 3,760
 Other 24,372 26,088
 Total assets $41,656 $41,819
 March 31 Dec. 31
 1992 1991
 Liabilities
 Current Liabilities
 Current debt $ 4 $ 1,573
 Accounts payable 5,756 5,348
 Other 431 765
 Total current liabilities $ 6,191 $ 7,686
 Long term debt 7,385 29,924
 Shareholders' equity 28,080 4,209
 Total liabilities and
 shareholders' equity $41,656 $41,819
 -0- 2/14/92
 /CONTACT: Corey B. Roth of Specialty Chemical Resources, Inc, 216-468-1380/ CO: Specialty Chemical Resources, Inc. ST: Ohio IN: CHM SU: ERN


LC -- CL009 -- 9927 04/20/92 10:01 EDT
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Date:Apr 20, 1992
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