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AMERICAN RECREATION CENTERS INC. ANNOUNCES THIRD QUARTER RESULTS

AMERICAN RECREATION CENTERS INC. ANNOUNCES THIRD QUARTER RESULTS
 SACRAMENTO, Calif., March 12 /PRNewswire/ -- American Recreation Centers Inc. (NASDAQ: AMRC) today announced that net income for the third quarter ended Feb. 26, 1992 was $698,000, or $.14 per share, compared with $1,025,000, or $.21 per share, last year. Revenues rose 8 percent to $16,006,000 from $14,768,000.
 The company's core business, the operation of bowling centers, achieved record sales and profits for the quarter. However, as anticipated, ARC's majority owned subsidiary, The Right Start Inc. (NASDAQ: RTST) posted disappointing results for the quarter. As announced in January, the catalog subsidiary suffered poor response rates from its 1991 holiday catalog mailing, a casualty of the recession. In a separate statement also released today, The Right Start Inc. reported that its results for the third quarter showed a net loss of $60,000. This compares to a profit of $294,000 a year ago.
 Despite Right Start's disappointing results for the quarter, ARC's net income for the nine-month period advanced 15 percent to $1,938,000, or $.38 per share, from $1,681,000, or $.34 per share, a year ago. Revenue climbed 21 percent to $48,845,000 from $40,345,000 in the year-earlier period.
 The bowling division, which generated more than half of the company's revenues and more than three-fourths of its operating income for the nine-months just ended, continues to have record results. Revenues for the latest quarter climbed 9 percent to $10,212,000 from $9,333,000 a year ago. Operating income rose to $1,954,000 from $1,920,000. While the rate of growth for operating income slowed to 2 percent in the current quarter due to higher operating expenses, it is expected these expenses will return to more normal levels in the fourth quarter. For the nine-months ended Feb. 26, 1992, operating income for the bowling division rose 17 percent to $3,956,000 on a 11 percent increase in revenues.
 Robert A. Crist, chief executive officer, said, "Unfortunately, Right Start's disappointing results for the quarter somewhat offset a record performance in the bowling division, which also contended with a tough economy. However, we believe the catalog is well situated for growth when the economy begins its recovery and catalog response rates return to pre-recession levels."
 Crist also said that during the fourth quarter the company will be closing two unprofitable bowling centers as their leases expire, and will be losing one profitable center through lease expiration. While the closure of these centers will reduce bowling revenues by slightly more than 10 percent, Crist said the anticipated impact on operating income for the division will be minimal.
 "We are actively pursuing the acquisition of bowling centers to replace these lanes and to further grow our bowling operations," stated Crist. "The Right Start is also pursuing growth opportunities and expects to complete negotiations soon to test a retail concept with a major department store chain."
 American Recreation Centers is a leader in both the bowling and direct marketing industries. The company's bowling division operates 27 bowling centers, 21 in California and 6 in Texas with an aggregate 1,134 lanes. In addition, the direct marketing division's The Right Start Inc. is one of the nation's leading direct marketers of top-quality products for infants and children.
 AMERICAN RECREATION CENTERS INC.
 Consolidated Statement of Income
 (In thousands except per share amounts)
 (Unaudited)
 13 weeks ended 39 weeks ended
 Feb. 26, Feb. 27, Feb. 26, Feb. 27,
 1992 1991 1992 1991
 Operating revenues:
 Bowling $10,212 $9,333 $27,405 $24,682
 Direct marketing 5,459 5,104 20,462 14,703
 Other 335 331 978 960
 Total 16,006 14,768 48,845 40,345
 Operating, general
 and administrative
 expenses:
 Bowling 8,258 7,413 23,449 21,296
 Direct marketing 5,670 4,693 19,705 13,197
 Other 237 206 697 538
 Corporate 407 343 967 875
 Total 14,572 12,655 44,818 35,906
 Operating income 1,434 2,113 4,027 4,439
 Interest income (603) (624) (1,828) (1,905)
 Other income 238 215 539 345
 Gain on sale of assets 78 --- 78 ---
 Gain on sale of stock
 by subsidiary --- --- 7,583 ---
 Losses of non-consolidated
 partnerships --- (59) (7,162) (168)
 Income before provision
 for income taxes 1,147 1,645 3,237 2,711
 Provision for income
 taxes 469 620 1,270 1,030
 Total 678 1,025 1,967 1,681
 Minority interest in
 consolidated subsidiary (20) --- 29 ---
 Net income $698 $1,025 $1,938 $1,681
 Earnings per share $.14 $.21 $.38 $.34
 Weighted average shares
 outstanding 5,053,206 4,911,518 5,071,971 4,908,664
 -0- 3/12/92
 /CONTACT: Robert A. Crist, president and CEO, American Recreation Centers Inc., 916-852-8005; or Elizabeth Gard or Roger S. Pondel of Rifkind Pondel & Parsons, 310-207-9300, for American Recreation Centers/
 (AMRC RTST) CO: American Recreation Centers Inc. ST: California IN: LEI SU: ERN


JL -- LA022 -- 7520 03/12/92 16:09 EST
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Date:Mar 12, 1992
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