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SUN TELEVISION AND APPLIANCES, INC. REPORTS SECOND QUARTER NET INCOME INCREASES 75 PERCENT

 COLUMBUS, Ohio, Sept. 29 /PRNewswire/ -- Sun Television and Appliances, Inc. (NASDAQ: SNTV) today reported that net income rose 75.1 percent in its second quarter ending Aug. 31, 1993, to $3,763,000 versus $2,149,000 for the similar period last year. Earnings per share for the quarter rose 40.0 percent to $.21 versus $.15, notwithstanding an increase of 23.9 percent in Sun's average shares outstanding this quarter as compared to the similar period last year. Net sales and service revenues rose 53.2 percent in the second quarter ending Aug. 31, 1993 to $120,642,000 from $78,760,000 for the prior year. Comparable store sales increased 21.5 percent during the quarter versus the prior year. Increased sales of air conditioners due to the warmer summer weather this year contributed to this increase; however, even if the sales of air conditioners were excluded from the second quarter, comparable store sales would have increased by 14.0 percent. Sales from eight new stores opened the latter part of last year and early this year accounted for the remainder of the sales increase.
 For the six months ended Aug. 31, 1993, net income increased 71.1 percent to $5,794,000 versus $3,387,000 for the comparable prior year period. Earnings per share for the six month period rose 37.5 percent to $.33 per share versus $.24 per share last year notwithstanding an increase of 23.6 percent in Sun's average shares outstanding. Net sales and service revenues for the six month period this year rose 46.6 percent to $218,441,000 from $149,021,000 reported for the similar period last year. Comparable store sales increased by 15.2 percent during the six months this year versus the prior year.
 Robert E. Oyster, president, stated, "We are very pleased with our sales and earnings growth this quarter. All markets and major product categories contributed positively to this growth. We look forward to the positive contributions expected from our entrance into Johnstown, Pa., as well as Rochester and Buffalo, N.Y., during the third and fourth quarters."
 Income from operations improved by 0.4 percent to 5.1 percent of net revenues for the second quarter this year as compared to 4.7 percent for last year. This was the result of a 2.0 percent of net revenues improvement in selling general and administrative expenses offset by a decline of 1.7 percent in gross profit as a percentage of net revenues. Selling, general and administrative expenses, as a percentage of net revenues, declined due to efficiencies associated with an increased store base, particularly in payroll costs, while the decline in gross profit percentage reflects a highly competitive retail environment. For the six months ended Aug. 31, 1993, income from operations improved by 0.3 percent to 4.2 percent of net revenues from 3.9 percent last year and resulted from a decline in selling, general and administrative expenses of 1.5 percent as a percentage of net revenues offset by a 1.3 percent decline in gross profit as a percentage of net revenues primarily for the same reasons previously noted for the quarter.
 For the second quarter this year the income tax rate as a percentage of income before income taxes was 41.0 percent versus 38.7 percent for last year. The increased tax provision impacted this year's second quarter by $147,000. The increase is primarily due to the company providing for additional taxes under the recently passed federal tax legislation which is retroactive to the beginning of the year.
 During September the company opened stores in Johnstown, Pa., (its 33rd) and Henrietta, N.Y. (its 34th). During the remainder of the year the company anticipates opening one more new store in the Rochester, N.Y. metropolitan area, three new stores in the Buffalo, N.Y. area and a replacement store in Columbus, Ohio.
 Sun Television and Appliances, Inc., with 34 stores in Ohio, Pennsylvania, New York and West Virginia, is a leading specialty retailer of high quality, brand name consumer electronics, home appliances and home office products in its market areas. Sun TV's common stock is traded over the counter and is quoted on the NASDAQ National Market System under the symbol SNTV.
 SUN TELEVISION & APPLIANCES, INC.
 CONSOLIDATED STATEMENT OF INCOME
 For the three months ended Aug. 31, 1993 and 1992
 (In thousands, except per share amounts)
 (Unaudited)
 1993 1992
 Net sales and service revenues $120,642 $78,760
 Cost of sales 88,146 56,205
 Gross profit 32,496 22,555
 Selling, general and
 administrative expense 26,248 18,756
 Amortization of intangibles 124 124
 Income from operations 6,124 3,675
 Interest income 313 27
 Interest expense (57) (195)
 Income before income taxes 6,380 3,507
 Income taxes 2,617 1,358
 Net income $3,763 $2,149
 Net income per share $.21 $.15
 Common stock and equivalents 17,684 14,278
 SUN TELEVISION & APPLIANCES, INC.
 CONSOLIDATED STATEMENT OF INCOME
 For the six months ended Aug. 31, 1993 and 1992
 (In thousands, except per share amounts)
 (Unaudited)
 1993 1992
 Net sales and service revenues $218,441 $149,021
 Cost of sales 158,992 106,581
 Gross profit 59,449 42,440
 Selling, general and
 administrative expense 49,994 36,376
 Amortization of intangibles 247 247
 Income from operations 9,208 5,817
 Interest income 644 60
 Interest expense (114) (356)
 Income before income taxes 9,738 5,521
 Income taxes 3,944 2,134
 Net income $5,794 $3,387
 Net income per share $.33 $.24
 Common stock and equivalents 17,676 14,306
 -0- 9/29/93
 /CONTACT: Robert E. Oyster of Sun Television and Appliances, 614-445-8401/
 (SNTV)


CO: Sun Television and Appliances ST: Ohio IN: REA SU: ERN

KL-BM -- CL004 -- 6682 09/29/93 09:11 EDT
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Date:Sep 29, 1993
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