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JENNY CRAIG INC. ANNOUNCES FOURTH QUARTER AND YEAR-END RESULTS

 DEL MAR, Calif., Aug. 5 /PRNewswire/ -- Jenny Craig Inc. (NYSE: JC) said today that in its fourth quarter ended June 30, 1993, revenues increased 9 percent to $125.3 million from $115.2 million in the prior year's quarter. The increase in revenues for the quarter was because of the addition of 100 Centres since June 1992.
 Jenny Craig said that company-owned Centres experienced a 9 percent decline in average revenue per Centre in the fourth quarter vs. the fourth quarter of fiscal 1992. The company said the decrease in average revenue per Centre was significantly influenced by the 22 percent revenue decline of Jenny Craig's 83 Southern California Centres, comprising 14 percent of the company-owned operations, as compared to the 5 percent decline of the remainder of the company-owned Centres.
 Jenny Craig reported that operating income and net income each declined 9 percent in the quarter ended June 30, 1993. Operating income declined from $17.0 million in the prior year's fourth quarter to $15.5 million, and net income for the quarter ended June 30, 1993, was $9.7 million vs. $10.7 million for the quarter ended June 30, 1992. Net income per share, aided by the reduction in shares outstanding because of the repurchase of 999,600 shares during fiscal 1993, declined 5 percent from $.39 per share for the fourth quarter of 1992 to $.37 per share for the comparable 1993 quarter.
 For the year ended June 30, 1993, total revenues were $490.5 million, a gain of 6 percent over last year's revenues of $461.1 million. Average revenue per company-owned Centre fell 10 percent during this fiscal year compared to last fiscal year. Operating income was $59.2 million for 1993, off 19 percent from $72.9 million in 1992. Income before extraordinary item for 1993, aided by the elimination of interest expense, decreased 15 percent to $36.8 million from $43.1 million in 1992. Income before extraordinary item per share, impacted by the increased number of shares outstanding after the company's initial public offering in October 1991, was $1.35 for 1993 vs. $1.64 for 1992.
 Sid Craig, chairman and chief executive officer, said, "The results of this fiscal year reflect reduced demand for the company's services throughout fiscal 1993, which in large measure, we attribute to the difficult economic environment. Nevertheless, in this fiscal year, our 10th anniversary in business, the company continued its unbroken history of profitable operations and met its target of adding 100 Centres, bringing the total number of Centres in operation to 794 at June 30,
1993. Also, the company continues to operate debt-free and has a very favorable cash position with cash and cash equivalents totaling $63 million at June 30, 1993."
 Jenny Craig Inc., founded in 1983, is one of the largest weight management companies in the United States. The company provides consumers with a comprehensive weight loss program, as well as an ongoing weight maintenance program through a chain of company-owned and franchised Centres located in the United States, Canada, Mexico, Australia and New Zealand. At June 30, 1993, there were 794 Jenny Craig Weight Loss Centres, of which 579 were company-owned.
 JENNY CRAIG INC. AND SUBSIDIARIES
 Consolidated Balance Sheets
 ($ in thousands)
 June 30, June 30,
 1993 1992
 (Unaudited)
 Assets
 Cash and cash equivalents $63,228 51,847
 Accounts receivable, net 6,721 17,355
 Inventories 14,984 17,677
 Other current assets 3,181 2,210
 Total current assets 88,114 89,089
 Property and equipment, net 26,056 22,993
 Other assets 9,266 3,082
 Total $123,436 115,164
 Liabilities and Stockholders' Equity
 Accounts payable and accrued liabilities 34,716 28,171
 Deferred service revenues 3,944 4,333
 Total current liabilities 38,660 32,504
 Deferred taxes payable 233 843
 Stockholders' equity 84,543 81,817
 Total $123,436 115,164
 JENNY CRAIG INC. AND SUBSIDIARIES
 Consolidated Statements of Income
 (Unaudited)
 ($ in thousands, except per share data)
 Twelve Months Ended Three Months Ended
 June 30, June 30,
 1993 1992 1993 1992
 Revenues:
 Company-owned operations $413,654 373,442 107,283 92,616
 Franchise revenues 76,895 87,711 18,047 22,624
 Total revenues 490,549 461,153 125,330 115,240
 Operating costs and expenses:
 Company-owned operations 358,966 309,511 93,335 77,021
 Franchise operations 50,714 57,580 11,523 15,400
 General and administrative
 expenses 21,691 21,212 4,926 5,772
 Operating income 59,178 72,850 15,546 17,047
 Interest income (expense),
 net 2,395 (1,959) 666 561
 Income before taxes 61,573 70,891 16,212 17,608
 Provision for income taxes 24,813 27,796 6,491 6,943
 Income before extraordinary
 item 36,760 43,095 9,721 10,665
 Extraordinary item:
 Charge on early repayment
 of debt, net --- 6,280 --- ---
 Net income $36,760 36,815 9,721 10,665
 Per share amounts:
 Income before extra-
 ordinary item $1.35 1.64 .37 .39
 Extraordinary item --- .24 --- ---
 Net income 1.35 1.40 .37 .39
 Shares outstanding at
 end of period 26,500 27,500 26,500 27,500
 -0- 8/5/93
 /CONTACT: James Mallen, senior VP and CFO, or Jan Strode, VP- Corporate Communications, of Jenny Craig, 619-259-7000/
 (JC)


CO: Jenny Craig Inc. ST: California IN: HEA SU: ERN

LS-BP -- SD001 -- 9719 08/05/93 09:02 EDT
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Date:Aug 5, 1993
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