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ROCKING HORSE CHILD CARE CENTERS ANNOUNCES RESULTS

 ROCKING HORSE CHILD CARE CENTERS ANNOUNCES RESULTS
 CHERRY HILL, N.J., April 20 /PRNewswire/ -- The Rocking Horse Child


Care Centers of America, Inc. (NASDAQ: RHCC) today reported net income of $511,761 or $.04 per share in the first quarter of 1992 which represents a 52 percent increase over last year's first quarter net income of $337,391 or $.03 per share.
 The performance is attributable to revenue gains in its California and mid-Atlantic regions, and improved operating profit and operating profit margins, stemming from the company's continued implementation of its cost control programs and a 23 percent decrease in general and administrative expenses as the company continues to execute its strategic plan to divest its southeastern properties.
 Revenues for the first quarter ended March 31, 1992, were $8,885,179 compared to $9,286,739 in 1991 as several southeastern centers were sold or leased to third parties. Operating profit increased to $1,324,663 in 1992 from $1,113,616 in 1991, a 19 percent improvement. Operating profit margin, showing the effect of revenue gains and cost controls in the remaining centers, rose to 14.9 percent in 1992, a 24 percent increase from last year's 12.0 percent margin.
 Rocking Horse has entered into an agreement with an investment group for an equity investment to be made in the company. The company currently remains in default under its principal credit facilities. The company has been advised by its lenders that they will restructure these facilities by waiving existing defaults, establishing revised financial covenants and extending the maturity date of their loans until at least April 1994 with additional extensions through Dec. 31, 1998, in the event the company meets certain performance criteria. Completion of this restructuring is contingent upon satisfaction of various conditions, including completion of documentation satisfactory to the company's lenders. A May closing is anticipated.
 Rocking Horse remains the country's fifth largest proprietary child care provider, operating 86 centers in 11 states with licensed capacity in excess of 11,000 children.
 THE ROCKING HORSE CHILD CARE CENTERS OF AMERICA, INC.
 Consolidated Statement of Operations
 (Unaudited)
 Three months ended March 31 1992 1991
 Revenues $8,885,179 $9,286,739
 Operating profit 1,324,663 1,113,616
 Net income 511,761 337,391
 Earnings per share $.04 $.03
 Fourth quarter ended Dec. 31 1991 1990
 Revenue 8,462,271 9,012,631
 Net Loss 4,453,177(A) 5,913,461(B)
 Year ended Dec. 31 1991 1990
 Revenue 34,664,673 35,807,844
 Net loss 3,824,498(A) 6,405,165(B)
 (A) 1991 included charges of $4,820,918 primarily related to the divestiture of the southeast region and restructuring of its corporate organization. Of the $4,820,918 charge, $4,090,307 represented an additional real estate reserve taken in light of the company's intention to accelerate its southeast divestiture program and its assessment of the current market values of centers to be divested; $369,000 was related to costs associated with agreements with former executives; $157,000 is related to costs associated with closed centers and $204,611 is related to the write-off of a site improvement whose lease expires in May of 1992.
 Absent the 1991 restructuring charge, Rocking Horse posted net income for the fourth quarter of $367,741 and for 1991 of $996,420. Operating profit (before the restructuring charge) rose 78 percent for the year while G&A expenses were reduced 32 percent as the company continued to execute its strategic plan of divesting the southeastern operations.
 (B) 1990 included charges of $4,875,378 related to goodwill write- offs and discontinued operations.
 /delval/
 -0- 4/20/92
 /CONTACT: Douglas E. Carneal, chairman of Rocking Horse Child Care Centers, 609-482-9100/
 (RHCC) CO: The Rocking Horse Child Care Centers of America, Inc. ST: New Jersey IN: SU: ERN


JS-CC -- PH011 -- 9992 04/20/92 11:11 EDT
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Date:Apr 20, 1992
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