California Culinary Academy reports fiscal 1996 first quarter financial results.

SAN FRANCISCO--(BUSINESS WIRE)--Nov. 14, 1995--California Culinary Academy Inc. (NASDAQ: COOK) today reported financial results for for its fiscal 1996 first quarter, which ended Sept. 30, 1995.

As previously described in fiscal 1995 year-end results, total first-quarter revenues decreased slightly to $3,450,000 in fiscal 1996 from $3,494,000 in fiscal 1995. Revenues from culinary arts education, which accounts for 80 percent of total revenues, were down three percent from the year-ago quarter, primarily because of lower enrollment and total student population. Restaurant, retail and media revenues rose 7 percent, from $643,000 to $686,000, with media revenues accounting for the largest part of the increase. Because total cost and expenses in the fiscal 1996 first quarter were nearly 20 percent higher than they were in the comparable period last year, the company recorded a net loss of $424,000 or 13 cents per share, versus a net profit of $51,000, or 2 cents per share, for the first quarter of fiscal 1995.

"Revenues from culinary arts education decreased due to lower enrollment in the late winter and spring classes. Management quickly determined that the lower enrollments were due to specific changes that had been made in our recruiting efforts," stated Alexander M. Hehmeyer, president and chief executive officer. "Subsequently, we hired an experienced professional as our director of admissions and as a result, our enrollments for August and October 1995 were at record highs. Also, we began airing two 30-second television advertisements to help us build even stronger enrollments," said Hehmeyer.

"In addition, to broaden our name recognition and recruit both domestic and international students," Hehmeyer continued, "we established our own World Wide Web Site at http://www.baychef.com. Our web site's on-line SPICE (Superior Pr0ducts In Culinary Education) describes our cooking programs and admissions procedures, profiles chef instructors, offers articles and practical cooking techniques for culinary enthusiasts and provides an interactive culinary help line. Also, media revenues increased from strong sales of our cookbook, Festive Favorites, the companion cookbook to our highly popular television program, Cooking at the Academy, airing on public television stations across the nation. We receive a royalty of $3.25 per book," he said.

"On the expense side, the combination of costs related to the proposed acquisition of New York Restaurant School Inc., increased the expense incurred from the conclusion of our Broadway relationship and costs incurred from the elimination of administrative staff positions to streamline back-office operations brought about a loss for the quarter. With our new highs in fall enrollments, we are looking ahead to expand our business opportunities and finishing fiscal 1996 on a much stronger position than we were in at the end of fiscal 1995," said Hehmeyer.

"The demand for graduates of the California Culinary Academy is very high," Hehmeyer noted. "Our placement rate is currently about 92 percent. As fiscal 1996 progresses, we will become more aggressive in our marketing efforts and expand and refine our curriculum to meet demand for both full-time and part-time programs to increase our enrollment by 30 percent over the next couple of years at the San Francisco location. We are developing part-time programs targeted directly at the student who can not leave full-time employment to come to school. The demand for part-time culinary education is very strong."

The California Culinary Academy Inc., established in 1977 and headquartered in San Francisco, is one of the largest, for-profit culinary schools in the United States. The Academy offers professional culinary education for aspiring and established culinarians, including two fully accredited professional education programs: a 16-month culinary art AOS degree program and a 30-week baking and pastry certificate program. The Academy also offers a host of consumer classes for cooking and wine enthusiasts and a line of high-quality merchandise, cookbooks and video tapes. In addition, the Academy operates two full-service restaurants, which are open to the public Monday through Friday for lunch and dinner, with banquet facilities generally available seven days a week. -0-

                  California Culinary Academy Inc.
                       Financial Highlights
        For the Three Months Ended Sept. 30, 1995 and 1994
   (in thousands, except share and earnings per share amount)

                             Quarter Ended           Quarter Ended
                               Sept. 30                Sept. 30,
                                 1995                    1994

Revenues                       $3,450                  $3,494
Net Income (Loss)               $(424)                    $51
Earnings (Loss) Per Share   (13 cents)                2 cents
Weighted Average Number
 of Outstanding Shares      3,308,805               3,213,021
Current Assets                 $5,658                  $6,060
Total Assets                  $10,914                 $11,485
Current Liabilities            $5,699                  $5,896
Total Liabilities              $6,111                  $6,477
Shareholders' Equity           $4,803                  $5,008
-0-

CONTACT: California Culinary Academy Inc.

Christine E. Munson, 415/771-3536