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ZARING HOMES, INC. REPORTS RECORD THIRD QUARTER AND NINE MONTHS OPERATING RESULTS

 CINCINNATI, Oct. 28 /PRNewswire/ -- Zaring Homes, Inc. (NASDAQ-NMS: ZHOM) today announced record operating results for the third quarter and nine months ended Sept. 30, 1993. Pro forma net income increased 44 percent and 73 percent over the respective year- earlier third quarter and nine month periods. The sales value of new contracts signed during the third quarter of 1993 was $20.9 million (102 homes), as compared to $16.4 million (77 homes) signed in the same quarter of the previous year. The sales value of the company's backlog was $27.3 million (124 homes) at Sept. 30, 1993, as compared to a backlog of $23.2 million (97 homes) at Sept. 30, 1992.
 Allen Zaring III, chairman and CEO, stated, "We are very pleased with the company's operating performance through the first nine months of 1993 which was in line with its business plan." Robert Benkert, president and COO, went on to say, "Barring any unforeseen developments, we expect 1993 to be a record year in revenues and profits."
 For the third quarter of 1993, the company had net revenues of $29.8 million as compared to $20.4 million for the same period of the prior year, an increase of $9.4 million or 46 percent. Pro forma net income for the third quarter of 1993 was $2,320,000 as compared to $1,613,000 for the third quarter of 1992, an increase of $707,000 or 44 percent. The pro forma information reflects the effects on the historical income statement as if assuming a 40 percent combined effective rate. On an earnings per share basis, pro forma net income during the third quarter of 1993 and 1992 was $0.46 and $0.54, respectively. The third quarter 1993 earnings per share figures are based on an increase of 67 percent in the weighted average number of shares outstanding compared to the number of weighted shares outstanding during the third quarter of 1992 as a result of the initial public offering completed June 2, 1993.
 For the nine months ended Sept. 30, 1993, the company had net revenues of $66.9 million versus $44.4 million for the same period of the prior year, an increase of $22.5 million or 51 percent. Pro forma net income for the nine months of this year was $4,931,000 versus $2,843,000 during the same period of the prior year, an increase of $2,088,000 or 73 percent. On an earnings per share basis, pro forma net income during the nine months of 1993 and 1992 was $1.28 and $0.95, respectively, an increase of 35 percent based on an increase of 29 percent in the weighted average number of share outstanding during the 1993 period.
 Zaring Homes, Inc. completed its initial public offering of 2,000,000 common shares on June 2, 1993. The company is a leading regional builder of single-family homes in the Cincinnati and Nashville, Tenn., metropolitan areas. The company builds homes primarily for the move-up market in distinctive neighborhoods which incorporate a variety of models and architectural styles. Zaring Homes was founded in 1964 and has been profitable in each year of operation.
 ZARING HOMES, INC.
 SUMMARY STATEMENTS OF INCOME (UNAUDITED)
 Dollars in Thousands, Except per Share Amounts
 Three Months Nine Months
 Ended Sept. 30 Ended Sept. 30
 1993 1992 1993 1992
 Net revenues(A) $29,810 $20,383 $66,877 $44,380
 Cost of sales 23,054 15,436 51,134 33,973
 Gross profit 6,756 4,947 15,743 10,407
 Selling, general and
 administrative expenses 3,171 2,215 7,835 5,682
 Operating income 3,585 2,732 7,908 4,725
 Other income (expense) 283 (44) 268 13
 Income before provision
 for income taxes 3,868 2,688 8,176 4,738
 Provision for income taxes 1,548 --- 2,371 ---
 Net income 2,320 2,688 5,805 4,738
 Pro forma information(B):
 Income before provision
 for income taxes 3,868 2,688 8,176 4,738
 Provision for income taxes 1,548 1,075 3,245 1,895
 Net income 2,320 1,613 4,931 2,843
 Net income per share $0.46 $0.54 $1.28 $0.95
 Weighted average shares
 outstanding 5,000,180 3,000,180 3,866,847 3,002,074
 (A) -- Revenue from a sale is recognized upon the closing of the sale.
 (B) -- The pro forma income statement information reflects the effects on the historical income statement data for each of the periods presented as if the company had not been treated as an S corporation for income tax purposes (assuming a 40 percent combined effective rate). The company was an S corporation prior to the completion of its initial public offering.
 ZARING HOMES, INC.
 OTHER INFORMATION SUMMARY
 Dollars in Thousands
 Balance Sheet Data: At Sept. 30, 1993
 Cash and cash equivalents $10,857
 Inventories and properties held for
 development or sale 41,934
 Total assets 61,252
 Notes payable 15,755
 Shareholders' equity 36,077
 Three Months Ended
 Sept. 30,
 Operating Data: 1993 1992
 Sales (units)(A) 102 77
 Closings (units) 143 101
 Average revenue per closing $205 $200
 Backlog (units)(B) 124 97
 Sales value of backlog at end of period $27,289 $23,220
 (A) -- Sales represent total new home orders received during the period, net of cancellations.
 (B) -- Backlog includes sales orders which have not yet closed.
 -0- 10/28/93
 /CONTACT: Michelle Grigsby of Zaring Homes, 513-489-8849/
 (ZHOM)


CO: Zaring Homes, Inc. ST: Ohio IN: CST SU: ERN

AR-KL -- CL010 -- 7832 10/28/93 11:08 EDT
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Date:Oct 28, 1993
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