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E-Z SERVE REPORTS THIRD QUARTER, 1992 RESULTS

 HOUSTON, Nov. 19 ~PRNewswire~ -- E-Z Serve Corp. (AMEX: EZS) (the company) of Houston today reported a net loss of $691,000, or $0.08 per common share, for the third quarter and a net loss of $4,887,000, or $0.55 per common share, for the nine months ended Sept. 30, 1992. This compares to losses of $2,555,000, or $0.32 per common share, and $4,424,000, or $0.86 per common share for the third quarter and nine months ended Sept. 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 $691,000, or $0.08 per common share, and $5,615,000, or $0.59 per common share, for the third quarter and nine months ended Sept. 30, 1992, respectively, as compared to net losses of $2,555,000, or $0.32 per common share, and $8,840,000, or $1.71 per common share, for the third quarter and nine months ended Sept. 30, 1991, respectively. Operating results in 1992 include the effects of the Taylor Petroleum Inc. (Taylor) acquisition since March 1, 1992, and TOC Retail Inc. (TOC) acquisition since Aug. 1, 1992.
 Total operating revenues in the third quarter and nine months ended Sept. 30, 1992 were $137,310,000 and $273,012,000, respectively, representing increases of 143 and 57 percent from the $56,406,000 and $173,881,000 reported for the third quarter and nine months ended Sept. 30, 1991, respectively. These increases reflect the addition of Taylor and TOC and are partially offset by reductions caused by the closing of marginal or non-strategic gasoline marketer locations.
 Retail motor fuel sales increased by 39.6 and 47.1 million gallons in the third quarter and nine months ended Sept. 30, 1992, respectively, as compared to the same 1991 periods because of the addition of Taylor and TOC. Also, as compared to the same 1991 periods, gasoline sold per location per month increased by 35 and 23 percent to 36.9 and 32.3 thousand gallons per location in the third quarter and nine months ended Sept. 30, 1992, respectively, reflecting the addition of the higher volume Taylor and TOC locations and the shutdown of lower volume marketer locations. Gross profit per gallon of $0.1101 and $0.1061 in the third quarter and nine months ended Sept. 30, 1992, respectively, represented declines of 8.5 and 5.5 percent from the similar 1991 periods, primarily because a significant portion of the TOC units operate in metropolitan areas which, because of competitive pressures, traditionally afford lower margins than those in the rural areas in which the company had previously concentrated.
 Convenience store merchandise sales showed dramatic increases in 1992's third quarter and nine months ended Sept. 30, 1992, as compared to 1991, again reflecting the addition of Taylor and TOC. Merchandise sales per location per month and gross profit per location per month declined primarily because of the higher proportion of mini marts and gas marts at Taylor and TOC. The average gross profit percentage, however, continued to improve from the 1991 levels as the company's redefined pricing and rebate programs took effect and because the TOC margins are generally higher than those of Taylor.
 "Although we reported a loss in the third quarter, it was a significant improvement over prior periods and reflects the company's renewed earnings potential due to the Taylor and TOC acquisitions," stated Neil H. McLaurin, president and chief executive officer. He continued, "We are completing the administrative consolidation and expect to benefit further from operational and administrative improvements in 1993."
 E-Z CORP.
 Selected Operational Information
 (In thousands except store counts,
 per gallon margins and percentages)
 Three Months Ended Nine Months Ended
 9~30~92 9~30~91 9~30~92 9~30~91
 MOTOR FUELS - RETAIL
 Average number of open
 and operating
 locations (A) 770 557 636 574
 Gallons sold 85,327 45,726 184,748 137,622
 Gallons sold~
 location~month 36.9 27.4 32.3 26.6
 Revenues $93,966 $50,317 $196,132 $152,464
 Gross profit (B) $9,397 $5,506 $19,605 $15,549
 Gross profit per
 gallon $0.1101 $0.1204 $0.1061 $0.1123
 Gross profit~
 location~month $4.1 $3.3 $3.4 $3.0
 CONVENIENCE STORE (C)
 Average number of
 open and operating
 locations 410 55 223 55
 Merchandise sales $34,854 $5,770 $55,026 $16,944
 Merchandise sales~
 location~month $28.3 $35.0 $27.4 $34.2
 Gross profit $10,870 $1,698 $17,159 $4,860
 Gross profit
 percentage 31.19 pct 29.43 pct 31.18 pct 28.68 pct
 Gross profit~
 location~month $8.8 $10.3 $8.5 $9.8
 MOTOR FUELS -
 WHOLESALE (D)
 Gallons sold 9,671 17 25,686 6,371
 Revenues $6,224 $23 $16,704 $3,270
 Gross profit $87 ($11) $156 $503
 Gross profit per
 gallon $0.0090 ($0.6471) $0.0061 $0.0790
 (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 $1,536, $1,801, $4,172 and $4,979 for the three months and nine months ended Sept. 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 the Taylor transaction; 1991 represents product pipeline wholesale operations discontinued in September 1991.
 Selected Financial Information (A)
 (In thousands except per share amounts)
 Three Months Ended Nine Months Ended
 9~30~92 9~30~91 9~30~92 9~30~91
 Operating revenues $137,310 $56,406 $273,012 $173,881
 Cost of sales (114,646) (48,917) (230,942) (151,856)
 Gross profit 22,664 7,489 42,070 22,025
 Operating expenses (15,769) (5,561) (28,570) (15,825)
 Selling, general and
 administrative
 expenses (4,636) (1,940) (9,793) (6,704)
 Depreciation &
 amortization (1,915) (1,414) (4,667) (4,234)
 Interest expense:
 Bank (858) (892) (2,014) (2,927)
 Related parties (164) (130) (614) (1,307)
 Other (10) (23) (145) (104)
 Gain (loss) on sale
 of assets (3) (84) (13) 4,652
 Provision for
 asset impairment
 and restructuring costs --- --- (1,054) ---
 Loss before income
 taxes (691) (2,555) (4,800) (4,424)
 Income tax expense --- --- (87) ---
 Net loss ($691) ($2,555) ($4,887) ($4,424)
 Loss attributable to
 common stock:
 Net loss ($691) ($2,555) ($4,887) ($4,424)
 Preferred stock
 dividends (150) --- (399) ---
 Total ($841) ($2,555) ($5,286) ($4,424)
 Loss per common share ($0.08) ($0.32) ($0.55) ($0.86)
 Average shares
 outstanding 10,899,060 8,009,234 9,545,964 5,169,562
 (A) Certain amounts in 1991 have been reclassified to conform to the presentation used in 1992.
 E-Z Serve Corp. is a distributor of motor fuels through 386 retail outlets and 534 company-owned convenience stores located in 21 states, predominantly in the Sunbelt.
 -0- 11~19~92
 ~CONTACT: John Miller, senior VP, E-Z Serve, 800-256-0600 or 713-591-1111~
 (EZS)


CO: E-Z Serve Corp. ST: Texas IN: OIL REA SU: ERN

JL -- LA036 -- 3188 11~19~92 19:39 EST
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Date:Nov 19, 1992
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