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 DENVER, Jan. 12 /PRNewswire/ -- U.S. Pawn Inc. (NASDAQ: USPN) today announced total revenues advanced to record levels for its fiscal quarter ended Dec. 31, 1993. The company's strong growth resulted primarily from increasing the number of operating stores during the period as compared to the like quarter a year ago.
 Of the 10 stores owned by the company as of Dec. 31, 1993, six have been open for more than 24 months, one more than 18 months, and three have been open for less than 18 months.
 U.S. Pawn reported total revenues up 24 percent during the quarter to $2,323,458 compared to $1,869,436 in the comparable period one year ago. The increase reflects an improvement of 24 percent in merchandise sales to $1,317,919 from $1,006,754 and an improvement of 21 percent in pawn service charges to $979,089 from $808,264.
 Total expenses for the quarter increased by 26 percent to $2,169,257 compared to $1,715,271 in the previous fiscal year quarter. The increase in total expense was comprised of an increase in cost of goods sold as a direct result of increased sales and operating expenses. Operating expenses increased during the quarter by 20 percent to $618,916 over the previous year's quarter of $514,834 due to increases in the number of stores and increases in staffing. Administration expense for the quarter increased by 15 percent to $336,130 from $293,250 and tax expense was $53,970 compared to $60,000 in the previous year's quarter.
 Net income, after accounting for preferred dividends and tax effects, increased to $91,252 for the current quarter compared to $85,186 in the previous year's quarter. Total outstanding shares increased by 15 percent. This resulted in earnings per share of 3 cents compared to 3 cents in the previous year.
 The company's inventory turnover rate for the quarter was 3.8 times, compared to 3.8 times in the prior year's quarter, and gross profit margin on sales was 16 percent as compared to the prior year's quarter at 19 percent.
 The forfeiture rate for pawn loans increased to 36 percent during the quarter compared to 29 percent in the previous year quarter, the pawn loan balance decreased 3 percent during the quarter to $2,388,250 from $2,459,756 at Sept. 30, 1993, and the average pawn loan increased to $86 from $81 during the quarter.
 "After having gone through a year of difficulty in balancing available cash with unprecedented loan demand, and getting our newer stores up to speed, the company performed up to expectations during the first quarter," said Fred Baker, U.S. Pawn's chief financial officer. "In the coming months, the company will continue to strengthen the operations of its 10 existing locations, seek higher revenues, and implement cost efficiencies where possible to optimize earnings to our shareholders."
 U.S. Pawn is the largest publicly held pawn shop operation based in Colorado. The company lends money on a variety of goods including jewelry, electronics, musical instruments, household items, autos and boats.
 Balance Sheets
 Dec. 31, Sept. 30,
 1993 1993
 Current Assets:
 Cash $326,253 $178,868
 Service charges receivable 355,705 361,266
 Loans 2,388,250 2,459,756
 Accounts receivable, net 144,964 81,200
 Note receivable-related party 49,572 56,690
 Inventory 1,213,030 1,108,442
 Prepaid expense and other 189,427 254,897
 Total current assets 4,667,201 4,501,119
 Property and equipment, net of
 accumulated depreciation and
 amortization of $637,358 and
 $593,788, respectively 963,404 988,590
 Notes receivable-related parties 548,864 426,416
 Intangible assets, net of accumulated
 amortization of $25,176 and
 $21,365 respectively 165,016 168,828
 Other assets 75,326 65,220
 Total assets $6,419,811 $6,150,173
 Balance Sheets
 Liabilities and Stockholders' Equity
 Dec. 31, Sept. 30,
 1993 1993
 Current liabilities:
 Accounts payable $16,283 $18,690
 Customer layaway deposits 50,164 44,392
 Accrued expenses 128,142 144,727
 Notes payable 1,074,949 968,193
 Notes payable-related parties 373,588 497,905
 Current portion of long-term debt 70,530 51,752
 Current portion of capital
 lease obligations 51,945 61,161
 Total current liabilities 1,765,601 1,786,820
 Long-term liabilities:
 Notes payable-related parties 131,217 10,000
 Long-term debt, less current portion 188,507 161,607
 Capital lease obligations, less
 current portion --- 2,482
 Deferred income taxes 127,470 73,500
 Total long-term liabilities 447,194 247,589
 Total liabilities 2,212,795 2,034,409
 Commitments and contingencies:
 Stockholders' equity:
 Redeemable preferred stock, 9.5 percent,
 $10 par value, 1,000,000 shares
 authorized; 37,800 shares issued
 and outstanding 378,000 378,000
 Common stock, no par value 30,000,000
 shares authorized; 2,995,639
 issued, 2,943,639 outstanding 3,189,356 3,189,356
 Additional paid-in capital 830,692 830,692
 Accumulated (deficit) (106,915) (198,167)
 4,291,133 4,199,881
 Less cost of 52,000 common shares
 held in treasury (84,117) (84,117)
 Total stockholders' equity 4,207,016 4,115,764
 Total liabilities and
 stockholders' equity $6,419,811 $6,150,173
 Statements of Operations
 Three Months Ended
 Dec. 31,
 1993 1992
 Sales $1,317,919 $1,006,754
 Pawn service charges 979,089 808,264
 Other 26,440 54,418
 Total revenues 2,323,458 1,869,436
 Cost of sales and expenses:
 Cost of sales 1,105,178 810,562
 Operations 618,916 514,834
 Administration 336,130 293,250
 Interest 61,652 52,979
 Depreciation and amortization 47,381 43,646
 Total cost of sales
 and expenses 2,169,257 1,715,271
 Income from operations
 before income taxes 154,201 154,165
 Provision for income taxes 53,970 60,000
 Net income $100,231 $94,165
 Dividends on preferred stock (8,979) (8,979)
 Net income available for
 common stock 91,252 85,186
 Earnings per common share
 and common share equivalents $0.03 $0.03
 Weighted average number of
 common shares and common share
 equivalents outstanding 3,034,353 2,644,072
 -0- 1/12/94
 /CONTACT: Fred Baker of U.S. Pawn, 303-571-4704/

CO: U.S. Pawn Inc. ST: Colorado IN: SU: ERN

BB -- DV001 -- 1309 01/12/94 09:32 EST
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Publication:PR Newswire
Date:Jan 12, 1994

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