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STARCRAFT AUTOMOTIVE CORPORATION ANNOUNCES RESULTS FOR 4TH QUARTER & FULL YEAR

 GOSHEN, Ind., Nov. 8 /PRNewswire/ -- Starcraft Automotive Corporation (NASDAQ-NMS: STCR), a leader in the growing second-stage van conversion market, today announced a significant increase in net income for the fourth quarter ended Oct. 3, 1993.
 Net income for the fourth quarter increased 136 percent to $397,000 compared with $168,000 for the same period a year ago. Net sales decreased slightly to $17,398,000 from $17,439,000 a year earlier. Fourth quarter earnings per share increased 100 percent to $0.10 based on 3,941,124 weighted average shares outstanding, compared with $0.05 per share on 3,583,370 weighted average shares outstanding in the year earlier period.
 Net sales for the fiscal year increased 11.5 percent to $85,279,000 from $76,453,000 for the same period last year. Net income(A) increased to $3,335,000 from $3,135,000, a gain of 6.4 percent. Earnings per share(A) increased 9.2 percent to $0.95 per share based on 3,511,898 weighted average shares outstanding, compared with $0.87 per share based on 3,583,370 weighted average shares outstanding for Fiscal 1992.
 Kelly L. Rose, chairman and chief executive officer, said the company is experiencing increased demand domestically for light truck conversions and internationally for van and truck conversions.
 Operating margins during the fourth quarter were restored to year- earlier levels through a price increase on the company's entry level model. The price increase was effective in May 1993, but due to price protection of the order backlog, the price increase did not help gross margins until the fourth quarter, Rose said. Further improvement in operating margins was restrained by a 1.3 percent increase in selling and promotion expenses as a percentage of sales. Rose said the increased selling and promotion expense represented Starcraft's commitment to invest in building its sales and distribution network in Japan and Europe as well as continued commitment to its dealer training program.
 Looking ahead Rose said the company's backlog continues to grow at a faster rate than a year ago, which reflects a resurgence in positive U.S. consumer attitudes. A similar trend is apparent in international consumer demand, he said, but due to limited chassis availability, the company will not benefit from this growth until the second quarter.
 In other developments, Allen H. Neuharth, formerly chairman and CEO of Gannett Company, Inc., and the founder of USA Today, joined Starcraft's board of directors during the fourth quarter. In addition, Gregory B. Hardin, senior vice president of domestic sales, announced his resignation to pursue interests in a family business. His duties have been divided between the director of sales administration and the director of sales/dealer training, both of whom were recently hired.
 Starcraft Automotive Corporation is a leading second-stage manufacturer of custom van conversions. The company specializes in upscale custom vehicles and believes it is one of the five largest van conversion manufacturers in the United States.
 (A) -- The company effected its initial public offering of 2,150,000 shares of common stock. In connection with that offering, in July 1993 the company became taxable as a corporation. Net income and earnings per share figures reflect the tax that would have been paid by the company if it had been a taxable corporation during the periods reported.
 STARCRAFT AUTOMOTIVE CORPORATION
 Results:
 Unaudited and Dollars in ($000) except EPS
 Fourth Quarter Ended
 Oct. 3, Sept. 27, Percentage
 1993 1992 Change
 Net Sales $17,398 $17,439 (0.2)
 Cost of Goods Sold 14,074 14,897 (5.5)
 Gross Profit 3,324 2,542 30.8
 Selling, General &
 Administrative 2,534 2,193 15.6
 Operating Income 790 349 126.4
 Other Income (Expense) (44) 13 NM(B)
 Interest Expense (78) (82) NM(B)
 Total (122) (69) ---
 Net Income 668 280 138.6
 Pro Forma Income Taxes 271 112 142.0
 Pro Forma Net Income 397 168 136.3
 Pro Forma EPS $0.10 $0.05 100.0
 Weighted Average Shares 3,941,124 3,583,370
 Fiscal Year Ended
 Oct. 3, Sept. 27, Percentage
 1993 1992 Change
 Net Sales $85,279 $76,453 11.5
 Cost of Goods Sold 68,262 61,101 11.7
 Gross Profit 17,017 15,352 10.8
 Selling, General &
 Administrative 11,099 9,970 11.3
 Operating Income 5,918 5,382 10.0
 Other Income (Expense) 42 100 NM(B)
 Interest Expense (384) (257) NM(B)
 Total (342) (157) ---
 Net Income 5,576 5,225 6.7
 Pro Forma Income Taxes 2,241 2,090 7.2
 Pro Forma Net Income 3,335 3,135 6.4
 Pro Forma EPS $0.95 $0.87 9.2
 Weighted Average Shares 3,511,898 3,583,370
 (B) -- Not Meaningful.
 Starcraft Automotive Corporation is a leading second stage manufacturer of custom van conversions. The company specializes in upscale custom vehicles and believes it is one of the five largest van conversion manufacturers in the United States. The shares are traded on the NASDAQ National Market System under the symbol "STCR."
 -0- 11/8/93
 /CONTACT: Rikki F. Kain of Starcraft Automotive, 219-533-1105/
 (STCR)


CO: Starcraft Automotive Corporation ST: Indiana IN: AUT SU: ERN PER

KL-AR -- CL014 -- 1749 11/08/93 11:53 EST
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Date:Nov 8, 1993
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