California Culinary Academy reports fiscal 1996 third-quarter and nine-month financial results.

SAN FRANCISCO--(BUSINESS WIRE)--May 14, 1996--California Culinary Academy Inc. (NASDAQ:COOK) today reported financial results for its fiscal 1996 third quarter and first nine months, which ended March 31, 1996.

Total revenues increased one percent to $3,998,000 in the third quarter of fiscal 1996 from $3,958,000 in the comparable quarter of fiscal 1995. Revenues from culinary arts education, which account for nearly 80 percent of total revenues, were down less than one percent from the year-ago quarter primarily because of lower enrollment and total student population.

This situation was offset somewhat by tuition increases and a 3.2 percent increase to $812,000 from $787,000 in revenues from the company's restaurant, retail sales, media activities and other sources.

The company recorded net income of $58,000, or $0.02 per share, for the third quarter of fiscal 1996. In the prior year's comparable quarter, the company reported net income of $103,000, or $0.03 per share.

As announced last week, Keith H. Keogh has been promoted to president while continuing as COO.

"I feel well prepared to execute the new vision, strategic plan and educational programs of the California Culinary Academy. I look forward with great anticipation to the exciting, trend-setting time ahead as the Academy continues its leadership role as a resource to the food industry," stated Keogh.

"Enrollment continues to be a primary focus for the Academy," Keogh noted, "and we hope to increase enrollments substantially over the next two years.

"With our determination and efforts to implement continual improvements in our curriculum, our student services, our product offerings and our reputation as a leading source of trained culinarians to the growing food service industry, we are optimistic about the Academy's long-term outlook."

For the short-term, the Academy will aggressively cut costs through consolidation of certain functions and specific re-engineering of programmatic offerings. The Academy plans to complete its cost cutting efforts during the fourth quarter of fiscal 1996 and expects a loss in that quarter due to the restructuring.

"Our goal is to begin the new fiscal year as an exciting, streamlined operation," stated Keogh.

Total revenues in the first nine months of fiscal 1996 were down 1.5 percent to $11,191,000 from $11,365,000 in the comparable nine-month period of fiscal 1995. An increase of nearly five percent in revenues from the company's restaurants, retail sales, media activities and other sources was not enough to offset entirely the three percent decrease in culinary arts education.

A 17 percent increase in selling, general and administrative expense was the largest single component of a pretax loss of $520,000 through the first nine months of fiscal 1996 and a net loss of $362,000, or $0.11 per share. In the comparable nine-month period last year the company reported pre-tax income of $477,000 and net income of $272,000, or $0.08 cents per share.

The California Culinary Academy, 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 arts AOS degree program and a 30-week baking and pastry certificate program offered both full-time and part-time.

The Academy also offers a host of consumer classes for cooking and wine enthusiasts and a line of 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 and Nine Months Ended March 31, 1996 and 1995
    (in thousands, except share and earnings per share amounts)

                        Three Months Ended      Nine  Months Ended
                     March 31,   March 31,    March 31,    March 31,
                         1996        1995        1996          1995
Revenues:
Culinary arts
  education            $3,186      $3,171       $8,756        $9,041
Restaurant, retail
  & media                 812         787        2,435         2,324
                        -----       -----       ------        ------
                       $3,998      $3,958      $11,191       $11,365

Costs and Expenses     $3,898      $3,793      $11,711       $10,888
Income (Loss) before
   tax                    100         165        (520)          477
Net Income (Loss)        $ 58        $103     $  (362)        $(272)
Net Income (Loss) Per
   Share                $0.02       $0.03      $(0.11)         $0.08

Weighted Average Number
 of Outstanding
  Shares            3,318,958    3,356,156   3,294,630     3,284,515
Current Assets          -              -        $5,080        $5,872
Total Assets            -              -        10,389        11,252
Current Liabilities     -              -         5,055         5,481
Total Liabilities       -              -         5,461         6,024
Shareholders' Equity    -              -         4,928         5,228

CONTACT: California Culinary Academy

Christine E. Munson, 415/771-3536, ext. 248