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SUNRISE MEDICAL ANNOUNCES RECORD EARNINGS AND 2-FOR-1 STOCK SPLIT

SUNRISE MEDICAL ANNOUNCES RECORD EARNINGS AND 2-FOR-1 STOCK SPLIT
 TORRANCE, Calif., Aug. 26 /PRNewswire/ -- Sunrise Medical Inc. (NYSE: SMD) announced today record sales, net income and earnings per share for the fourth quarter and year ended July 3, 1992. Sunrise also announced that its Board of Directors has declared a 2-for-1 stock split.
 Sales for the fourth quarter reached $76.7 million, a 35 percent increase over the same quarter last year. Net income jumped 52 percent to $4.6 million, and fully diluted earnings per share advanced 46 percent to $.70 vs. $.48 in fiscal 1991. On a post-split basis, fully diluted earnings per share were $.35 vs. $.24 last year. This marks the fourteenth consecutive quarter of record sales, net income and earnings per share vs. comparable prior year periods.
 For the fiscal year, sales grew 20 percent to $244 million, while net income rose 49 percent to $12 million. Fully diluted earnings per share gained 32 percent to $1.88 compared to $1.43 last year. (The post-split comparison is $.94 vs. $.71 per share.) 1992 marks the fifth consecutive year Sunrise Medical has delivered record sales and earnings from continuing operations.
 The strong fourth quarter results were attributed to the excellent market reception of 62 new products introduced during the year, the better-than-expected contributions of recent acquisitions, and a pattern of consistent performance improvement across all of the Company's core businesses. Sunrise paid down $6.4 million in long term obligations during the quarter and ended at a debt to capital ratio of 38 percent vs. 42 percent at the beginning of the quarter.
 The Rehabilitation Group enjoyed sales growth of 47 percent in the quarter, about half of which came from acquisitions. Group operating profits rose 58 percent. Within the group, sales of Quickie wheelchairs in North America were up 42 percent, led by a 225 percent jump in power wheelchair sales vs. 1991, while Guardian sales advanced 12 percent. The Recovery Group achieved 14 percent sales growth in the quarter, and also delivered a 58 percent increase in operating profits, as margins improved at both Bio Clinic and Joerns.
 For the year as a whole, Rehabilitation Group sales increased 27 percent to $168 million, while operating income rose 33 percent. The Recovery Group had a smaller sales gain of 6 percent, but margin improvement led to a 21 percent growth in operating profit. Corporate expenses and goodwill amortization dropped from 2.3 percent of sales last year to 2.2 percent this year.
 Commenting on the quarter, Richard H. Chandler, chairman and president of Sunrise Medical Inc., said, "The fourth quarter was the best in our Company's history, as all divisions contributed positively, most well beyond our expectations. Custom wheelchairs are continuing to drive our growth, but other factors are also at work. New products, the result of the year's 39 percent increase in R & D expenditures, have been especially well received. Acquisitions and our entry into the standard wheelchair market in May gave sales an extra lift. Margins were aided by Bio Clinic's growing rental business of BioMedx and
Orthoderm air flotation systems. And finally, the Joerns division turned the corner in sales and profitability."
 "Looking at 1992," Chandler continued, "the last half clearly showed accelerating momentum in both sales and earnings. It also demonstrated the increased international mix of our business, with 33 percent of sales coming from outside the U.S. in the fourth quarter. We view 1992 as the culmination of a five year effort to establish Sunrise Medical as a consistent growth company. Over the period from 1987 to 1992, sales have grown at a compound annual rate of 16 percent, net income at 42 percent and earnings per share at 31 percent."
 On August 25, 1992, the Board of Directors authorized a 2-for-1 stock split to be effected in the form of a 100 percent stock dividend payable on September 10, 1992, to all stockholders of record on September 3, 1992. The stock split doubles Sunrise's outstanding shares from 6.35 million to 12.7 million shares.
 "We view the stock split and our recent NYSE listing as two important moves which will enhance stockholder value by making our stock attractive to a broader group of investors and improving its liquidity," stated Ted N. Tarbet, vice president and chief financial officer.
 Sunrise Medical designs, manufactures and markets internationally medical products used in the rehabilitation and recovery phases of patient care. Products include custom manual and power wheelchairs, ambulatory and bath safety aids, patient-room beds and furnishings, and therapeutic mattresses for the management of pressure sores. Sunrise products are designed to meet the special needs of three groups of people: the disabled, the elderly, and the recovering patient. SUNRISE MEDICAL INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars and shares in thousands, except per share amounts)
 Three Months Ended Twelve Months Ended
 July 3, June 28, Growth July 3, June 28, Growth
 1992 1991 Percent 1992 1991 Percent
 (unaudited)
 Net sales $76,729 $56,700 35 $243,920 203,825 20
 Cost of
 sales 47,649 36,381 31 157,702 133,916 18
 Gross profit 29,080 20,319 43 86,218 69,909 23
 Divisional
 operating
 expenses 18,450 13,608 36 57,642 47,984 20
 Corporate
 expenses 1,128 778 45 3,701 3,125 18
 Amortization
 of goodwill
 and other
 intangibles 585 354 65 1,772 1,472 20
 Corporate
 operating
 income 8,917 5,579 60 23,103 17,328 33
 Other (expense)
 income:
 Interest
 expense (1,222) (485) 152 (2,908) (3,656) (20)
 Interest
 income and
 other, net (22) 62 (a) 49 (2) (a)
 Income before
 taxes 7,673 5,156 49 20,244 13,670 48
 Income taxes 3,105 2,156 44 8,217 5,602 47
 Net income $4,568 $3,000 52 $12,027 $8,068 49
 Earnings per
 share (after
 2-for-1 stock
 split)(b):
 Fully diluted
 Net income $0.35 $0.24 46 $.94 $.71 32
 Weighted
 average
 number of
 shares
 outstanding 13,086 12,410 5 12,786 12,390 3
 Supplemental
 Information
 Fully diluted
 earnings per
 share before
 2-for-1 stock
 split:
 Net income $0.70 $0.48 46 $1.88 $1.43 32
 Weighted
 average
 number of
 shares
 outstanding 6,543 6,205 5 6,393 6,195 3
 (a) Percentage not meaningful.
 (b) For the fourth quarters of fiscal 1991 and 1992, primary and fully diluted earnings were the same. Primary EPS for the year ended June 28, 1991, was $.79. Weighted average number of shares outstanding was 10,246.
 -0- 8/26/92 R
 /CONTACT: Ted N. Tarbet (financial), or Lisa Riordan (media), of Sunrise Medical, 310-328-8018; or Susan Noonan of Noonan/Russo Communications, 212-979-9180, for Sunrise Medical/
 (SMD) CO: Sunrise Medical Inc. ST: California IN: HEA SU: ERN


KD-JL -- LA008 -- 3339 08/26/92 09:18 EDT
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Date:Aug 26, 1992
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