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STARBUCKS COFFEE REPORTS RECORD RESULTS FOR FY 1992; NET INCOME RISES 70 PERCENT ON 62-PERCENT INCREASE IN SALES

 STARBUCKS COFFEE REPORTS RECORD RESULTS FOR FY 1992;
 NET INCOME RISES 70 PERCENT ON 62-PERCENT INCREASE IN SALES
 SEATTLE, Nov. 12 /PRNewswire/ -- Starbucks (NASDAQ-NMS: SBUX) today announced financial results for the fourth quarter (13 weeks) and fiscal year ended Sept. 27, 1992, showing increases in sales, net earnings and earnings per share over the same periods in fiscal year 1991.
 For the fiscal year ended Sept. 27, 1992, net sales increased by 61.5 percent to $93,078,000 from $57,650,000 in 1991. Comparable store sales grew by 20.8 percent for the year. Starbucks did not have a general price increase during the year. Earnings before tax increased 128.0 percent to $6,580,000 from $2,886,000 in the prior year. Net earnings of $4,104,000, or 33 cents per share, improved 70.4 percent from the previous year's $2,409,000, or 24 cents per share. The effective tax rate for 1992 was 37.6 percent, compared to 16.5 percent in 1991, which reflected utilization of a tax loss carryforward.
 For the fourth quarter of fiscal 1992, net sales increased 67.1 percent to $26,855,000 from $16,070,000 in 1991. Retail sales increased 67.5 percent for the quarter to $23,525,000, wholesale sales increased 54 percent to $2,592,000 and direct mail sales increased 108.5 percent to $738,000. Earnings before tax increased 162.0 percent to $1,740,000 from $664,000 in the prior year. Net earnings of $1,056,000, or 7 cents per share, improved 172.2 percent from the previous year's $388,000, or 4 cents per share. The average number of shares outstanding increased from 10.4 million to 14.2 million, largely as a result of the company's private offering of 2.2 million shares of redeemable preferred stock in December 1991 and the completion of the company's initial public offering in July 1992.
 Retail sales increased as a result of strong same-store sales growth coupled with the rapid opening of new stores. Comparable store net sales for those 97 stores open 13 months or longer at the end of the period grew by 24.2 percent for the quarter, while new store sales accounted for a 43.3-percent increase in retail sales.
 The company opened 14 stores during the quarter and ended the period with 151 company-operated and three licensed airport stores. The total number of new stores opened during the year was 53 including one licensed store at Sea-Tac Airport. Management expects to open a total of 78 stores, including three airport kiosks, during fiscal 1993, with 16 scheduled for the first quarter, 21 for the second quarter and the balance over the rest of the year.
 The company's initial public offering closed on July 6, 1992, and, with the exercise of the underwriters' over-allotment option of 315,000 shares and the exercise of 252,700 warrants to purchase common stock, resulted in the company issuing 2,067,700 common shares. The offering was priced at $17 per share, and net proceeds to the company totaled $29 million. Concurrent with the closing of the offering, all 5,822,223 shares of the company's redeemable preferred stock converted to common stock on a one-for-one basis.
 In response to the many inquiries regarding the potential overhang of Starbucks shares at the termination of the underwriters' lock-up agreement with certain shareholders, the representatives of the underwriters have advised the company that from time to time they have released a portion of the shares subject to such agreements. As a result of these releases, only 6.7 million shares remain subject to the lock-up, versus 10.5 million shares originally. Of the 6.7 million shares still subject to the lock-up until December 1992, 2.1 million shares will be restricted from trading due to Rule 144 holding restrictions until December 1993. No officers or other affiliates have been released from the lock-up.
 Starbucks is America's largest roaster/retailer of highest quality specialty coffee, operating 151 stores in the metropolitan areas surrounding Seattle; Chicago; Vancouver, British Columbia, Canada; Portland, Ore.; Denver; and Los Angeles, San Diego, and San Francisco. In addition, the company has a national direct mail business with customers in every state as well as a specialty sales (wholesale) division serving a wholesale club, fine restaurants and institutions.
 The company's stock is traded over the counter on the NASDAQ National Market System under the symbol SBUX.
 STARBUCKS COFFEE CO.
 (In thousands, except earnings per share)
 Three Months Ended Fiscal Year Ended
 Sept. 27, Sept. 29, Sept. 27, Sept. 29,
 1992 1991 1992 1991
 Net sales $26,855 $16,070 $93,078 $57,650
 Earnings before taxes 1,740 664 6,580 2,886
 Net earnings 1,056 388 4,104 2,409
 Earnings per share $ 0.07 $ 0.04 $ 0.33 $ 0.24
 Weighted average
 shares outstanding 14,249 10,358 12,438 10,156
 -0- 11/12/92 R
 /CONTACT: Orin Smith of Starbucks, 206-447-7950, ext. 4520/
 (SBUX) CO: Starbucks Coffee Co. ST: Washington IN: REA SU: ERN


TS -- SE004R -- 0090 11/12/92 10:11 EST
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Date:Nov 12, 1992
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