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E-Z SERVE REPORTS SECOND QUARTER 1992 RESULTS

 E-Z SERVE REPORTS SECOND QUARTER 1992 RESULTS
 HOUSTON, Aug. 18 /PRNewswire/ -- E-Z Serve Corporation


(AMEX: EZS) of Houston today reported a net loss of $1,535,000, or $0.16 per common share, for the second quarter and a net loss of $4,196,000, or $0.47 per common share, for the six months ended June 30, 1992. This compares to losses of $2,367,000, or $0. 40 per common share, and $1,869,000, or $0.50 per common share for the second quarter and six months ended June 30, 1991. The second quarter of 1992 included income of $1,782,000 from the settlement in the company's favor of an outstanding lawsuit, partially offset by an increase in the provision for asset impairment of $600,000; the first quarter of 1992 included $454,000 of restructuring expenses related primarily to the closing of the company's Kingsville, Texas office. The first quarter of 1991 included a gain of $5,000,000 related to the sale of the company's Hawaiian retail gasoline marketing subsidiary, partially offset by $584,000 of non-recurring expenses related primarily to bad debts. Excluding these adjustments, the company would have reported net losses of $2,717,000, or $0.28 per common share, and $4,924,000, or $$0.56 per common share, for the second quarter and six months ended June 30, 1992, respectively, as compared to net losses of $2,367,000, or $0.40 per common share, and $6,285,000, or $1.69 per common share, for the second quarter and six months ended June 30, 1991, respectively. Operating results in 1992 include the effects of the Taylor Petroleum acquisition since March 1, 1992, but do not include the acquisition of TOC Retail which was completed on July 31, 1992.
 Total operating revenues in the second quarter and six months ended June 30, 1992 were $80,744,000 and $135,702,000, respectively, representing increases of 34 and 16 percent from the $60,250,000 and $117,475,000 reported for the second quarter and six months ended June 30, 19912, respectively. These increases reflect the addition of the Taylor Petroleum operations, partially offset by reductions caused by the closing of marginal or non-strategic gasoline marketer locations.
 Retail motor fuel sales increased by 7.7 and 7.5 million gallons in the second quarter and six months ended June 30, 1992, respectively, as compared to the same 1991 periods due to the addition of Taylor Petroleum. Also, as compared to the same 1991 periods, gasoline sold per location per month increased by 8 and 10 percent to 30.6 and 29.0 thousand gallons per location in the second quarter and six months ended June 30, 1992, respectively, reflecting the addition of the higher volume Taylor Petroleum locations and the shutdown of lower volume marketer locations. Gross profit per gallon of $0.0972 and $0.1027 in the second quarter and six months ended June 30, 1992, respectively, represented declines of 7 and 5 percent from the similar 1991 periods due to the depressed market conditions in the industry in 1992.
 Convenience store merchandise sales doubled in 1992's second quarter and six months ended June 30, 1992 as compared to 1991, again reflecting the addition of Taylor Petroleum, but merchandise sales per location per month and gross profit per location per month declined because 39 of the 113 Taylor Petroleum locations are mini-marts and gas marts where the sales per location are lower. The average gross profit percentage, however, continued to improve from 1991 levels at 30.06 and 31.18 percent for the second quarter and six months ended June 30, 1992, respectively.
 Neil H. McLaurin, president and chief executive officer, commented, "The second quarter of 1992 was not good for gasoline margins and our operating results reflect it. Conditions have improved, however, in July and August. Also, as the assimilation of the Taylor Petroleum and TOC Retail acquisitions progress, we expect future cost reductions to have a very favorable effect on operating results. These savings, however, will not begin to appear in a major way until the beginning of 1993."
 E-Z SERVE CORPORATION
 Selected Operational Information


(In thousands except store counts, per gallon margins and percentages)
 Periods Ended June 30 Three Months Ended Six Months Ended
 1992 1991 1992 1991
 Motor Fuels-Retail
 Average number of
 open and operating
 locations (A) 600 557 571 580
 Gallons sold 55,029 47,366 99,421 91,896
 Gallons sold/location/
 month 30.6 28.3 29.0 26.4
 Revenues $57,920 $52,436 $102,166 $102,147
 Gross profit (B) $ 5,351 $ 4,924 $ 10,208 $ 9,953
 Gross profit per gallon $0.0972 $0.1040 $ 0.1027 $ 0.1083
 Gross profit/location/
 month $ 3.0 $ 2.9 $ 3.0 $ 2.9
 Convenience Store (C)
 Average number of open
 and operating locations 164 55 128 55
 Merchandise sales $12,651 $ 5,921 $ 20,172 $11,174
 Merchandise sales/
 location/month $ 25.7 $ 35.9 $ 26.3 $ 33.9
 Gross profit $ 3,803 $ 1,737 $ 6,289 $ 3,162
 Gross profit (pct.) 30.06 29.34 31.18 28.30
 Gross profit/location/
 month $ 7.7 $ 10.5 $ 8.2 $ 9.6
 Motor Fuels - Wholesale (D)
 Gallons sold 11,689 3,950 16,015 6,354
 Revenues $ 7,818 $ 1,515 $ 10,480 $ 3,247
 Gross profit $ 54 $ 273 $ 69 $ 514
 Gross profit per gallon $0.0046 $0.0691 $ 0.0043 $0.0809
 (A) Represents retail outlets and company-owned convenience stores that retail gasoline.
 (B) Gross profit is shown before deducting compensation paid to operators of locations not operated by the company of $1,242, $1,489, $2,636 and $3,178 for the three months and six months ended June 30, 1992 and 1991, respectively.
 (C) Represents revenues from merchandise related sales at company-owned locations.
 (D) 1992 represents transport-load wholesale business acquired in Taylor Petroleum transaction; 1991 represents product pipeline wholesale operations discontinued in September 1991.
 Selected Financial Information (A)
 (In thousands except per share amounts)
Periods Ended June 30 Three Months Ended Six Months Ended
 1992 1991 1992 1991
 Operating revenues $80,744 $60,250 $135,702 $117,475
 Cost of sales (69,177) (52,938) (116,296) (102,939)
 Gross profit 11,567 7,312 19,406 14,536
 Operating expenses (7,292) (4,676) (12,801) (10,264)
 Selling, general and
 administrative expenses (2,853) (2,224) (5,157) (4,764)
 Depreciation &
 amortization (1,430) (1,428) (2,752) (2,820)
 Interest expense:
 Bank (596) (949) (1,156) (2,035)
 Related parties (318) (301) (450) (1,200)
 Other (9) (5) (135) (58)
 Gain (loss) on sale of
 assets (4) (96) (10) 4,736
 Provision for asset
 impairment and
 restructuring costs (600) -- (1,054) --
 Loss before income
 taxes (1,535) (2,367) (4,109) (1,869)
 Income tax expense -- -- (87) --
 Net loss ($1,535) ($2,367) ($4,196) ($1,869)
 Loss attributable to
 common stock:
 Net loss ($1,535) ($2,367) ($4,196) ($1,869)
 Preferred stock
 dividends (153) -- (249) --
 Total ($1,688) ($2,367) ($4,445) ($1,869)
 Loss per common share ($0.18) ($0.40) ($0.50) ($0.50)
 Average shares
 outstanding 9,609,234 5,983,000 8,861,981 3,726,000
 (A) Certain amounts in 1991 have been reclassified to conform to
 the presentation used in 1992.
 E-Z Serve Corporation is a distributor of motor fuels through 417 retail outlets and 535 company-owned convenience stores located predominantly in rural areas in 21 states.
 -0- 8/18/92
 /CONTACT: John Miller, senior vice president of E-Z Serve Corporation, 1-800-256-0600 or 713-591-1111/
 (EZS) CO: E-Z Serve Corporation ST: Texas IN: OIL SU: ERN


TM -- NY085 -- 1165 08/18/92 20:16 EDT
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