California Culinary Academy Reports 10.4 Percent Revenue Growth for the Second Quarter, Fiscal 1997.SAN FRANCISCO--(BUSINESS WIRE)--Feb. 24, 1998--California Culinary cu·li·nar·y adj. Of or relating to a kitchen or to cookery. [Latin cul  n Academy (Nasdaq:COOK), one of the three largest providers of
fully-accredited culinary arts education and professional training in
the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Tuesday reported 10.4 percent revenue growth for the
second fiscal quarter, and 10.9 percent growth for the six months ended
Dec. 31, 1997.
For the second quarter ended Dec. 31, 1997, the company reported revenues of $4,182,000 compared with revenues of $3,789,000 a year ago, reflecting an increase of 10.4 percent. The net loss for the quarter ended Dec. 31, 1997, was $132,000, or 4 cents per basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, as compared with net income of $126,000, or 3 cents per basic and diluted share, recorded a year earlier. For the sixth months ended Dec. 31, 1997, the company reported revenues of $8,117,000, compared with revenues of $7,318,000 a year ago, reflecting an increase of 10.9 percent. The net loss for the current six-month period was $293,000 or 9 cents per basic and diluted share, as compared with a net income of $171,000, or 4 cents per basic and diluted share, recorded a year earlier. The increase in revenues for the quarter and the sixth-month period was largely due to expanded marketing efforts which facilitated new admissions, bringing total enrollment to 702 students for the second quarter. Food and beverage F&B is a common abbreviation in the United States and Commonwealth countries, including Hong Kong. F&B is typically the widely accepted abbreviation for "Food and Beverage," which is the sector/industry that specializes in the conceptualization, the making of, and delivery of foods. operations, contributing $908,000 this quarter, reflects 46 percent sequential growth over last quarter and 25 percent year-to-year. The College of Foods division contributed an additional $83,000 for the quarter after reaching enrollment of 58 students -- its highest level to date. And finally, new revenue streams from the company's student housing program, launched in September 1997, also began to provide recognizable revenue support. While several revenue centers are now contributing to total revenues and providing a notable boost, management has also controlled costs associated with these sales as exhibited by the 12 percent expansion in gross profits for the quarter and 10.8 percent for the six months as compared with prior year periods. The net loss for the quarter was the result of a number of increases in operating costs operating costs npl → gastos mpl operacionales that include occupancy, employee compensation and non-recurring legal expenditures. The rise in occupancy costs Occupancy costs are the whole life costs of buildings and their associated land from occupancy until disposal. These costs may be incurred on a regular or irregular basis. Occupancy costs are those costs related to occupying a space including; rent, real estate taxes, personal stems primarily from the company's new student housing program of which carrying costs Carrying costs Costs that increase with increases in the level of investment in current assets. will diminish in near-term quarters as student occupancy and rent revenues ramp up Ramp Up To increase a company's operations in anticipation of increased demand. Notes: A company might 'ramp up' operations if they just signed a contract creating substantially more demand for their product. See also: Demand, Economies of Scale . Compensation, benefits and payroll expenses have risen due to the internalizing of the entire marketing function as well as additional faculty staffing in the College of Foods division level. The non-recurring legal and settlement expenses of $227,000 composed of $196,000 in final costs to mitigate mit·i·gate v. To moderate in force or intensity. mit  i·ga tion n. last August's labor dispute and
$31,000 for certain other legal expenses related to impending im·pend intr.v. im·pend·ed, im·pend·ing, im·pends 1. To be about to occur: Her retirement is impending. 2. business opportunities of the company. Highlights of the quarter and current events primarily center around the College of Food Division and include the opening of the company's second extension campus unit on Feb. 3 in San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. on the San Diego State University San Diego State University (SDSU), founded in 1897 as San Diego Normal School, is the largest and oldest higher education facility in the greater San Diego area (generally the City and County of San Diego), and is part of the California State University system. campus. Its first session is fully enrolled. From the Salinas Salinas, city, United States Salinas (səlē`nəs), city (1990 pop. 108,777), seat of Monterey co., W Calif.; inc. 1874. It is the shipping and processing center of a fertile valley famous for its grain and lettuce. , Calif. campus, the division recently completed its training contract with Monterey County's Department of Corrections and secured a new contract with the U.S. Marine Corps at Okinawa. Commenting on the quarterly results, Keith Keogh, president and COO (Cell Of Origin) See mobile positioning. of California Culinary Academy  This article or section needs copy editing for grammar, style, cohesion, tone and/or spelling.You can assist by [ editing it] now. , stated: "The consistency of the first six months top line growth can be attributed to investments made in the new businesses of the Colleges of Food and student housing. As these business sectors continue to ramp-up and revenues begin to reflect the January 1998 tuition For tuition fees in the United Kingdom, see . Tuition means instruction, teaching or a fee charged for educational instruction especially at a formal institution of learning or by a private tutor usually in the form of one-to-one tuition. increase, we look forward to continued top line growth for the remainder of the year." "Having settled outstanding lawsuits and expensed one-time legal charges in the first two quarters, we look forward to healthy contributions to the bottom line in the third and fourths quarters," Keogh continued. Founded in 1977, the California Culinary Academy is one of the largest culinary schools in the United States and a nationally known leader and innovator in culinary arts education. The Academy offers two fully-accredited professional programs as well as a series of continuing educational programs and vocational training. In addition, the Academy provides contract training and consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" to food service operations in the public and private sectors. Information on the company can be found on the Internet at http://www.baychef.com. -0- Statements in this news release that relate to future plans, financial results or projections, events or expected performance in future periods are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. and fall within the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Actual results and performance for such periods may differ materially. Such forward-looking statements involve risks and uncertainties, including risks of changing market conditions in the overall economy and the food industry, consumer demand, the success of the company's business strategies and other factors detailed from time to time in the company's annual and other reports filed with the Securities and Exchange Commission. -0-
CALIFORNIA CULINARY ACADEMY INC.
Selected Financial Information
INCOME STATEMENT DATA: Three Months Ended Six Months Ended
Dec. 31, Dec. 31,
1997 1996 1997 1996
Revenues:
Culinary arts education $3,231,000 $3,022,000 $6,514,000 $6,032,000
Restaurants & catering 951,000 767,000 1,603,000 1,286,000
Total revenues 4,182,000 3,789,000 8,117,000 7,318,000
Cost of sales
Food & beverage 460,000 415,000 886,000 786,000
Other cost of sales 390,000 398,000 802,000 729,000
850,000 813,000 1,688,000 1,515,000
Gross Margin 3,332,000 2,976,000 6,429,000 5,803,000
Operating Expenses:
Occupancy 514,000 430,000 958,000 875,000
Depreciation
& amortization 282,000 299,000 551,000 564,000
Compensation
& benefits 1,684,000 1,308,000 3,305,000 2,639,000
Outside services 181,000 180,000 385,000 302,000
Advertising
& promotion 209,000 118,000 394,000 266,000
Legal & other 617,000 451,000 1,204,000 886,000
3,487,000 2,786,000 6,797,000 5,532,000
Interest income (expense) (11,000) 20,000 5,000 14,000
Income (loss) before
provision for
income taxes (166,000) 210,000 (363,000) 285,000
Income tax provision (34,000) 84,000 (70,000) 114,000
Net income (loss) $(132,000) $126,000 $(293,000) $171,000
Net income (loss)
per basic
and diluted share $ (0.04) $ 0.03 $ (0.09) $ 0.04
Weighted average
common shares and
equivalents 3,635,700 3,707,700 3,580,700 3,598,900
CALIFORNIA CULINARY ACADEMY INC.
Selected Financial Information
BALANCE SHEET DATA: Dec. 31, June 30, Dec. 31,
1997 1997 1996
ASSETS
Current Assets:
Cash and cash equivalents $ 1,293,000 $ 2,308,000 $ 2,264,000
Accounts receivable, net 3,397,000 2,847,000 3,378,000
Inventories 291,000 341,000 325,000
Prepaid expenses and
other assets 581,000 531,000 280,000
Total Current Assets 5,562,000 6,027,000 6,247,000
Property and
equipment, net 7,000,000 4,965,000 4,935,000
Other assets 646,000 634,000 1,082,000
TOTAL ASSETS $13,208,000 $11,626,000 $12,264,000
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable and
accrued liabilities $ 1,056,000 $ 1,188,000 $ 982,000
Deferred revenue 4,011,000 3,212,000 3,980,000
Current portion of
long-term debt 89,000 117,000 77,000
Other current liabilities 401,000 444,000 393,000
Total Current Liabilities 5,557,000 4,961,000 5,432,000
Long-term debt 1,324,000 148,000 226,000
Other non-current
liabilities -- -- 438,000
Convertible Preferred
stock 91,000 953,000 976,000
Common stock 10,635,000 9,649,000 9,144,000
Accumulated deficit (4,399,000) (4,085,000) (3,952,000)
Total Stockholders'
Equity 6,327,000 6,517,000 6,168,000
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 13,208,000 $11,626,000 $12,264,000
CONTACT: California Culinary Academy, San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden Keith Keogh, 415/771-3536 or Coffin Communications Group, Sherman Oaks, Calif. Steven Johnson There are several well-known people called Steven Johnson.
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