ARC Recognizes Gain on Sale of Right Start Options.SACRAMENTO, Calif.--(BUSINESS WIRE)--June 17, 1996--American Recreation Centers Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :AMRC AMRC Association of Medical Research Charities AMRC Advanced Manufacturing Research Centre (UK) AMRC Association of Municipal Recycling Coordinators AMRC Accès Multiple par Répartition en Code (French) ) announced today it will recognize a $480,000, or $.10 per share after-tax gain on the sale of an option to repurchase 400,000 shares of The Right Start Inc.'s (NASDAQ:RTST RTST Roads to Space Travel (band) RTST Radio Technician Selection Test ) common stock. The option was granted to ARC on Aug. 4, 1995 by the buyers of its majority interest in The Right Start Inc. The option was granted with exercise prices ranging from $3.30 to $6.00 over a seven-year period. Right Start's stock closed at $6-3/8 on June 14, 1996. "While Right Start's current trading range Trading Range The spread between the high and low prices traded during a period of time. Notes: When a stock breaks through or falls below its trading range after several days of trading in a range, it usually means there is momentum (positive or negative) building. is at a 12-month high, the latest results reported by Right Stuff showed year-to-date losses of $1.4 million, or $.23 per share. Further, the option price was scheduled to rise to $3.70 per share in July and the Board of Directors felt it was the optimum time to realize the final value of our investment in Right Start," said Robert A. Crist, President and Chief Executive Officer. "The $800,000 in pre-tax cash we received from the sale of the option will be reinvested in restaging our bowling centers, our core operating business." The gain on sale of the option will be reported in the company's first fiscal quarter ending Aug. 28, 1996. In last year's first quarter ended Aug. 30, 1995, the company reported net income of $.33 per share. This represented a loss of $.13 from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the , a $.45 gain on the sale of The Right Start Inc. an $.01 from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. . American Recreation Centers Inc. is the largest public company in the United States, whose principal business is bowling. ARC operates 41 centers with 1,624 lanes in six states. CONTACT: American Recreation Centers Inc. Robert A. Crist or Karen B. Wagner, 916/852-8005 |
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