JENNY CRAIG, INC. ANNOUNCES EARNINGS
JENNY CRAIG, INC. ANNOUNCES EARNINGS DEL MAR, Calif., Aug. 4 /PRNewswire/ -- Jenny Craig, Inc.
(NYSE: JC) today announced that financial results for its fiscal year ended June 30, 1992 reached new all-time highs. For the year, income per share before extraordinary item increased 27 percent to $1.64 from $1.29 in the prior year. Income before extraordinary item increased 39 percent to $43,095,000 from $30,891,000. In the second quarter Jenny Craig, Inc. took a $6.3 million or $.24 per share one- time charge in connection with the Company's initial public offering for a debt prepayment penalty and a write-off of deferred financing costs related to the Company's elimination of all debt. The extraordinary, one-time charge resulted in net income of $36.8 million or $1.40 per share for the year.
Operating income for the full year increased 14 percent in fiscal 1992 to $72,850,000 from $64,138,000. Revenues for the full year increased 12 percent to $461,153,000 from $412,087,000 the year before. The Company said that its Centres at year-end, increased 11 percent to 694 from 628 the year before. In the fourth quarter, revenues increased three percent to $115,241,000 from $112,367,000 in the same period the year before. Operating income decreased 11 percent to $17,047,000 from $19,079,000 in the prior year's comparable period. Net income increased seven percent to $10,666,000 from $9,954,000 in the prior year. Additional shares issued in connection with the Company's initial public offering in November 1991 resulted in a decrease in net income per share in the fourth quarter to $.39 from $.41. "Our Company enters fiscal 1993 in its strongest financial position ever," said Sid Craig, Jenny Craig, Inc. chairman and chief executive officer. "As a result of our continued strong performance and the success of our initial public offering in November 1991, we are debt-free, have over $50 million in cash to finance future activities and currently have more than 175,000 active participants in the Jenny Craig Program." Despite the recession, Jenny Craig, Inc. added 36 new Company- owned Centres during fiscal 1992, including Centres in the new markets of Cleveland, Hartford and Buffalo and, since June 30, has opened Company-owned Centres in Detroit and Louisville. Additionally, the Company acquired 8 franchise Centres at year end. Overall, the Company experienced a net increase of 20 franchise Centres in fiscal 1992. Revenues from franchised operations grew 25 percent during the period to $87,711,000. "As one of the largest weight loss companies in the nation, we intend to capitalize on our financial strength and leadership to build upon our success," said James Mallen, Jenny Craig, Inc., vice president and chief financial officer. "In less than a decade, Jenny Craig, Inc. has grown from its first Centre in Australia to approximately 700 Centres in the U.S., Australia, New Zealand, Canada, Mexico and Puerto Rico," he said. "We believe that these markets have the potential for double that number or 1,400 Jenny Craig Centres. Our plan is to grow to that number as economic and market conditions permit." According to Jenny Craig, Inc. president and chief operating officer Ron Gerevas, "the consistently strong performance of this company, I believe, demonstrates the correctness of our reliance on certain fundamental disciplines, such as our commitment to providing the best training possible for all our employees and our uncompromising dedication to quality in every aspect of our business from customer service to the food products we offer. We intend to maintain this commitment to excellence as we continue to grow in the months and years ahead." JENNY CRAIG, INC. AND SUBSIDIARIES Consolidated Statements of Income (unaudited) (Amounts in Thousands except Per Share Data) Year Ended, Three Months Ended June 30, June 30, 1992 1991 1992 1991 Revenues: Company-owned operations $373,442 341,773 92,617 90,397 Franchise operations 87,711 70,314 22,624 21,970 Total revenues 461,153 412,087 115,241 112,367 Operating costs and expenses: Company-owned operations 309,511 285,779 77,021 74,748 Franchise operations 57,580 46,968 15,401 14,708 General and administrative expenses 21,212 15,202 5,772 3,832 Operating income 72,850 64,138 17,047 19,079 Interest (income)/expense, net 1,959 12,863 (562) 2,660 Income before taxes 70,891 51,275 17,609 16,419 Provision for income taxes 27,796 20,384 6,943 6,465 Income before extraordinary item $43,095 30,891 10,666 9,954 Extraordinary item: Charge on early repayment of debt, net 6,280 --- --- --- Net income $36,815 30,891 10,666 9,954 Per Share amounts Income before extraordinary item 1.64 1.29 .39 .41 Extraordinary item .24 --- --- --- Net income 1.40 1.29 .39 .41 Shares outstanding 27,500 24,000 27,500 24,000 -0- 8/4/92 /CONTACT: Michael Sitrick or Michael Kolbenschlag of Sitrick and Company, 310-788-2850, for Jenny Craig, Inc./ (JC) CO: Jenny Craig, Inc. ST: California IN: SU: ERN
KJ -- LA010 -- 6529 08/04/92 09:35 EDT
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|Date:||Aug 4, 1992|
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