ARC announces year-end results.SACRAMENTO Sacramento, city, United States Sacramento (săkrəmĕn`tō), city (1990 pop. 369,365), state capital and seat of Sacramento co., central Calif. , Calif.--(BUSINESS WIRE)--Aug. 8, 1995--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 that revenue for the fiscal 1995 fourth quarter ended May 31, 1995 rose to $13.1 million, a 20 percent increase over $10.9 million in 1994's fourth quarter. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the quarter was $1.94 million vs. $1.99 million for the same quarter a year ago. For fiscal 1995, revenue rose 11 percent to $45.7 million vs. $41.2 million last year. Operating income declined 6 percent to $5.5 million compared to $5.9 million in fiscal 1994. Net income for the quarter was $656,000, or $.13 per share, against $853,000, or $.17 per share, last year. For the year, net income was $1.61 million, or $.32 a share, compared to $1.89 million, or $.38 per share, in fiscal 1994. As of the fiscal fourth quarter 1995 reporting period, ARC's revenue and income categories have been reclassified to reflect the sale announced yesterday, of the company's 62.5 percent interest in The Right Start, Inc. (NASDAQ:RTST RTST Roads to Space Travel (band) RTST Radio Technician Selection Test ). Kayne, Anderson Anderson, river, Canada Anderson, river, c.465 mi (750 km) long, rising in several lakes in N central Northwest Territories, Canada. It meanders north and west before receiving the Carnwath River and flowing north to Liverpool Bay, an arm of the Arctic Investment Management Inc. of Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. acquired ARC's stake for $11.8 million cash and an option to reacquire 400,000 shares of Right Start at varying prices over seven years. The sale closed on August 4, 1995, resulting in an after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. gain of approximately $2.3 million, or $.46 per share. The gain will be recorded in ARC's fiscal 1996 first quarter, ending August 30, 1995. The sale generated approximately $6.7 million in cash for ARC after taxes and expenses. Reflecting the sale, Right Start's revenue and net income are no longer consolidated in ARC's operating revenue operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. and operating income. For historic comparative purposes, ARC's share of Right Start's profit or loss are now shown as "Income 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. " in ARC's statement of income. Discontinued operations totaled a $57,000 loss in the most recent quarter compared to a $226,000 profit in the fourth quarter of fiscal 1994. For the year, the discontinued operations category -- ARC's share of Right Start's net loss for fiscal 1995 -- resulted in a $1.3 million loss against a $112,000 profit in fiscal 1994. "The sale concludes a very favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. investment for ARC. In addition to generating significant cash for us to use in expanding our family entertainment business, our option to reacquire 400,000 shares will enable us to participate in any upside potential Upside potential The amount by which analysts or investors expect the price of a security may increase. upside potential The potential price or gain that may be expected in a security or in a security average, generally stated as the dollar Right Start may have under Kayne, Anderson's ownership," Crist Crist is the title given to a group of Anglo-Saxon religious poems by the medieval poet Cynewulf, divided into Crist I, II, III (or A, B, C), and dealing with Christ's Advent, Ascension, and Last Judgment respectively. A total of 1664 lines are preserved. said. "During ARC's ownership, Right Start grew from a small company in 1988 into a leading company in its children's products catalog catalog, descriptive list, on cards or in a book, of the contents of a library. Assurbanipal's library at Nineveh was cataloged on shelves of slate. The first known subject catalog was compiled by Callimachus at the Alexandrian Library in the 3d cent. B.C. segment," Crist added. "In recent years, revenue from the subsidiary exceeded that of ARC's core bowling operations. However, Right Start's need for significant capital to grow its promising retail business, and the disappointing performance of its catalog operations, made Right Start a candidate for sale. We believe Right Start continues to have a bright future with Kayne, Anderson, an investment group with extensive retail expertise." For fiscal 1995, bowling revenue rose almost 13 percent to $44.7 million from $39.7 million the previous year. Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. was slightly higher to $6.18 million compared to $6.15 million. On comparable centers, operating profit declined 4.1 percent on a 5.6 increase in revenue. Income from other operations declined in fiscal 1995, primarily related to the disposition earlier in fiscal 1995 of the company's budget mini-warehouse project in Milpitas Milpitas (mĭl'pē`təs), city (1990 pop. 50,686), Santa Clara co., W Calif., a suburb of San Jose, southeast of San Francisco; inc. 1954. Manufactures include computers and paint. , CA. ARC's after-tax income from the sale of assets for fiscal 1995 was nearly $1.4 million. "We're anxious to pursue opportunities to grow the family entertainment formats we've been developing in California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). and Texas," Crist added. "If our new facilities have the broad appeal we believe they will have, we will be aggressive in expanding these operations throughout our 39-location bowling chain. Also, we continue to pursue acquisition candidates in bowling and family entertainment." American Recreation Centers, Inc. has been a public company since 1959 and is among the nation's largest bowling operators with 39 bowling centers aggregating 1,572 lanes in six states. -0-
American Recreation Centers, Inc.
Consolidated Statement of Income
(In thousands, except per share amounts)
Thirteen Weeks Ended Fiscal Year Ended
May 31, May 25, May 31, May 25,
1995 1994 1995 1994
Operating revenue:
Bowling $12,847 $10,491 $44,687 $39,690
Other 216 388 1,007 1,506
------- ------- ------- -------
13,063 10,879 45,694 41,196
Operating general
and administrative expenses:
Bowling 10,604 8,459 38,505 33,540
Other 128 195 535 770
Corporate 393 229 1,141 1,002
------- ------ ------- -------
11,125 8,883 40,181 35,312
Operating income (loss): Bowling 2,243 2,032 6,182 6,150 Other 88 193 472 736 Corporate (393) (229) (1,141) 1,002
Operating income 1,938 1,996 5,513 5,884
Interest expense (773) (682) (2,984) (2,759)
Interest and
other income 112 65 331 242
Gain on sale of
subsidiary's stock -- -- -- 297
Gain (Loss) on
property transactions -- (509) 2,483 (509)
Income from continuing
operations before provision
for income taxes and
minority interests 1,277 870 5,343 3,155
Provision for income taxes (451) (122) (1,867) (1,102)
Minority interests (113) (121) (549) (276)
Income from continuing
operations 713 627 2,927 1,777
Discontinued operations:
Income (loss) from
operations of The Right
Start, Inc. net of
applicable taxes (57) 226 (1,316) 112
Net income $656 $853 $1,611 $1,889
Earnings per share:
Continuing operations $0.14 $0.13 $0.58 $0.36
Discontinued operations ($0.01) $0.05 ($0.26) $0.02
------ ------ ------- -------
$0.13 $0.17 $0.32 $0.38
Weighted average shares outstanding 5,041,037 5,003,553 5,020,649 4,940,461 Prior year amounts have been reclassified to conform to current year presentation. CONTACT: American Recreation Centers, Inc. Robert A. Crist or Karen B. Wagner, 916/852-8005 |
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