JENNY CRAIG ANNOUNCES FIRST QUARTER GAINS
JENNY CRAIG ANNOUNCES FIRST QUARTER GAINS DEL MAR, Calif., Nov. 11 /PRNewswire/ -- Jenny Craig Inc.
(NYSE: JC) announced today that total revenues for the first quarter ended Sept. 30, 1991 increased 19 percent to $120,447,000 from the operation of 643 centres compared to revenues of $101,113,000 from 543 centres for the same quarter last year. Operating income increased 49percent to $19,949,000 from $13,358,000 for the same quarter in the prior year. Net income for the quarter increased 78 percent to $10,520,000, or $.44 per share, compared to net income of $5,909,000, or $.25 per share for the same quarter in the prior year.
Sid Craig, chairman and chief executive officer, said that the income improvement resulted from cost control programs inaugurated last year, lower net interest expense and from the increase in revenues attributable to the 18 percent increase in the total number of centres in operation. "Since the end of fiscal 1991, we have opened 16 company- owned and seven franchise centres, primarily in the United States, including centres in two new markets -- Cincinnati and Pittsburgh. Because of the encouraging first quarter results and the general uptrend in revenues over the last three quarters, we plan to increase the rate of expansion over the balance of fiscal 1992," Craig stated. Earnings per share for the quarter were based on the 24,000,000 shares then outstanding. As a result of the initial public offering completed in November 1991, there are 27,500,000 shares currently outstanding. Jenny Craig Inc. is one of the four largest weight loss service companies in the United States. JENNY CRAIG, INC. AND SUBSIDIARIES Consolidated Statements of Income (Unaudited) Three Months Ended (Amounts in Thousands Except Per Share Data) September 30, 1991 1990 Revenues: Company-owned operations $97,460 $86,391 Franchise operations 22,987 14,722 Total revenues 120,447 101,113 Operating costs and expenses: Company-owned operations 80,091 74,011 Franchise operations 15,130 9,960 General and administrative expenses 5,277 3,784 Operating income 19,949 13,358 Interest expense net 2,716 3,474 Income before taxes 17,233 9,884 Provision for income taxes 6,713 3,975 Net income $10,520 $ 5,909 Net income per share $ .44 $ .25 Shares outstanding 24,000 24,000 JENNY CRAIG, INC and SUBSIDIARIES Consolidated Balance Sheets (Amounts in Thousands) September 30, June 30, 1991 1991 (Unaudited) Cash $50,418 $29,243 Accounts receiveable, net 16,434 15,603 Inventories 20,612 21,673 Other current assets 1,994 2,266 Total current assets 89,458 68,785 Property and equipment, net 21,300 20,409 Other assets 5,798 $ 6.081 Total $116,556 $95,275 Accounts payable and accrued liabilities $29,739 $18,464 Current portion of long term debt 14,123 14,123 Deferred service revenues 8,003 7,902 Total current liabilities 51,865 40,489 Long term debt, net 60,369 62,734 Deferred income taxes 3,628 2,260 Stockholder's equity (deficit) 694 (10,208) Total $116,556 $95,275 -0- 11/11/91 /CONTACT: James Mallen, chief financial officer, Jenny Craig, Inc., 619-259-7000, or Dick Brodrick of Hill and Knowlton, Inc., 213-937-7460, for Jenny Craig/ (JC) CO: Jenny Craig Inc. ST: California IN: SU: ERN SE -- LA012 -- 2871 11/11/91 08:31 EST
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|Date:||Nov 11, 1991|
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