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U.S. PAWN REPORTS SHARPLY HIGHER REVENUES FOR THE FOURTH YEAR IN A ROW AT THE END OF FISCAL 1993

 DENVER, Dec. 31 /PRNewswire/ -- U.S. Pawn Inc. (NASDAQ: USPN) today announced total revenues advanced substantially for the fiscal year ended Sept. 30, 1993, compared to the prior year. The company's strong growth resulted primarily from increasing the number of operating stores during the year.
 U.S. Pawn reported total revenues up 30 percent to $7,505,666 from $5,785,154 in fiscal 1992. The increase reflects an improvement of 37 percent in merchandise sales to $4,039,195 from $2,944,278 and an improvement of 23 percent in pawn service charges to $3,276,765 from $2,654,740.
 Of the 10 stores owned by the company as of Sept. 30, 1993, six have been open for more than 24 months while four have been open for less than 18 months. Total expenses increased by 37 percent to $7,332,693 compared with $5,366,428 in the previous fiscal year. 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 by 60 percent to $2,342,817 over the previous year due to increases in the number of stores and increases in staffing from 68 to 88 employees. Administration expense increased by 15 percent to $1,332,046 from $1,154,004 and tax expense was $73,500 compared to zero in the previous year.
 Net income, after accounting for preferred dividends and tax effects, fell to $63,194 from $333,890 in the previous year. Total outstanding shares increased by 10 percent. This resulted in an earnings per share of 2 cents compared to 16 cents in the previous year.
 The company's inventory turnover rate for fiscal 1993 was 3.3 times, compared to 4.1 times in the prior year, and as a direct result gross profit margin on sales increased to 19 percent as compared to the prior year at 17 percent.
 The forfeiture rate for pawn loans decreased to 30 percent in fiscal 1993 compared to 31 percent in the previous year while the pawn loan balance increased to $2,459,756, or 18.7 percent in fiscal 1993 from $2,071,592 in fiscal 1992 and the average pawn loan increased to $80 from $78 in the previous year.
 "U.S. Pawn has had a difficult year in balancing available cash with unprecedented loan demand along with doubling the store count from five to 10 stores in nine months," said Fred Baker, chief financial officer. "The company expects to stay at 10 stores for the next fiscal year while optimizing earnings to shareholders. Management expects first quarter of fiscal 1994 to have revenues in excess of $2.2 million with earnings per share of 3 cents for the quarter."
 U.S. PAWN INC.
 Balance Sheets
 Assets
 Sept. 30,
 1993 1992
 Current Assets:
 Cash $178,868 $320,101
 Service charges receivable 361,266 359,939
 Loans 2,459,756 2,071,592
 Accounts receivable, net 81,200 92,195
 Notes receivable-related parties 56,690 17,602
 Inventory 1,108,442 846,858
 Prepaid expenses and other 254,897 120,458
 Total current assets 4,501,119 3,828,745
 Property and equipment, net of
 accumulated depreciation and
 amortization of $593,788 and
 $448,885, respectively 988,590 872,604
 Notes receivable-related parties 426,416 253,745
 Intangible assets, net of accumulated
 amortization of $21,365 and
 $6,117 respectively 168,828 184,075
 Other assets 65,220 45,495
 $6,150,173 $5,184,664
 U.S. PAWN INC.
 Balance Sheets
 Liabilities and Stockholders' Equity
 Sept. 30,
 1993 1992
 Current liabilities:
 Accounts payable $18,690 $39,988
 Customer layaway deposits 44,392 24,627
 Accrued expenses 144,727 103,465
 Notes payable 968,193 712,993
 Notes payable-related parties 497,905 209,000
 Current portion of long-term debt 51,752 21,942
 Current portion of capital
 lease obligations 61,161 52,000
 Total current liabilities 1,786,820 1,164,015
 Long-term debt:
 Notes payable-related parties 10,000 282,251
 Long-term debt, less current portion 161,607 191,000
 Capital lease obligations, less
 current portion 2,482 64,366
 Total long-term debt 174,089 537,617
 Deferred income taxes 73,500 ---
 Total liabilities 2,034,409 1,701,632
 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; 1993-2,995,639
 issued, 2,943,639 outstanding;
 1992-2,572,640 issued, 2,520,640
 outstanding 3,189,356 2,620,187
 Additional paid-in capital 830,692 830,692
 Accumulated (deficit) (198,167) (261,730)
 4,199,881 3,567,149
 Less cost of 52,000 common shares
 held in treasury (84,117) (84,117)
 Total stockholders' equity 4,115,764 3,483,032
 $6,150,173 $5,184,664
 U.S PAWN INC.
 Statements of Operations
 Years Ended
 Sept. 30,
 1993 1992 1991
 Revenues:
 Sales $4,039,195 $2,944,278 $1,959,681
 Pawn service charges 3,276,765 2,654,740 1,542,974
 Other 189,706 186,136 150,776
 Total revenues 7,505,666 5,785,154 3,653,431
 Cost of sales and expenses:
 Cost of sales 3,270,188 2,436,187 1,531,525
 Operations 2,342,817 1,464,414 937,670
 Administration 1,332,046 1,154,004 676,027
 Interest 212,838 194,323 146,165
 Depreciation and amortization 174,804 117,500 105,210
 Total cost of sales
 and expenses 7,332,693 5,366,428 3,396,597
 Income before income tax 172,973 418,726 256,834
 Income tax 73,500 --- ---
 Net income 99,473 418,726 256,834
 Dividends on preferred stock (35,910) (35,910) (35,910)
 Net income available for
 common stock $63,563 $382,816 $220,924
 Earnings per common share
 and common share equivalents $0.02 $0.16 $0.11
 Weighted average number of
 common shares and common share
 equivalents outstanding 2,681,280 2,369,581 1,973,010
 -0- 12/31/93
 /CONTACT: Fred Baker of U.S. Pawn, 303-571-4704/
 (USPN)


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

BB -- DV001 -- 8273 12/31/93 09:31 EST
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