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JENNY CRAIG INC. ANNOUNCES FIRST QUARTER RESULTS

 DEL MAR, Calif., Oct. 21 /PRNewswire/ -- Jenny Craig Inc. (NYSE: JC) said today that in its first quarter ended Sept. 30, 1993, revenues increased slightly to $115.7 million from $114.4 million in the prior- year's September quarter.
 Jenny Craig said that company-owned Centres experienced a 12 percent decline in average revenue per Centre in the first quarter of fiscal 1994 vs. the first quarter of fiscal 1993. The company said there continues to be a larger decrease in average revenue per Centre at Jenny Craig's California Centres, approximately 22 percent as compared to a 10 percent decline in the remainder of the company-owned Centres.
 Jenny Craig reported that operating income declined 18 percent from $15.6 million in the prior year's first quarter to $12.9 million. Net income declined 20 percent from $9.7 million for the quarter ended Sept. 30, 1992, to $7.8 million for the quarter ended Sept. 30, 1993. Net income per share, aided by the reduction in shares outstanding due to the purchase by Jenny Craig of 1,424,000 of its shares through Sept. 30, 1993, declined 14 percent from $.35 per share for the first quarter of fiscal 1993 to $.30 per share for the comparable fiscal 1994 quarter.
 Looking ahead, the company said it is preparing to launch its new weight management Program during the current quarter. "After much anticipation, we will launch our new weight management Program in December," Sid Craig, chief executive officer, said. "This Program combines the best of our previous Program with the most up-to-date recommendations for weight management by health and nutrition experts. We believe our new Program will be the most credible weight management Program on the market."
 Jenny Craig Inc., founded in 1983, is one of the largest weight management companies in the world. The company provides consumers with a comprehensive weight loss Program, as well as an ongoing weight maintenance Program through a chain of company-owned and franchised Centres located in the United States, Canada, Mexico, Australia, and New Zealand. At Sept. 30, 1993, there were 810 Jenny Craig Weight Loss Centres, of which 588 were company-owned.
 JENNY CRAIG INC. AND SUBSIDIARIES
 Consolidated Balance Sheets
 ($ in thousands)
 Sept. 30, June 30,
 1993 1993
 ASSETS
 Cash and cash equivalents $21,792 26,111
 Short-term investments 39,412 37,117
 Accounts receivable, net 7,662 6,721
 Inventories 16,956 14,984
 Other current assets 4,113 3,988
 Total current assets 89,935 88,921
 Property and equipment, net 26,420 26,056
 Other assets 9,058 9,266
 Total $125,413 124,243
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Accounts payable and accrued liabilities 40,665 35,756
 Deferred service revenues 3,191 3,944
 Total current liabilities 43,856 39,700
 Stockholders' equity 81,557 84,543
 Total $125,413 124,243
 JENNY CRAIG INC. AND SUBSIDIARIES
 Consolidated Statements of Income
 (Unaudited)
 ($ in thousands, except per share data)
 Three Months Ended
 Sept. 30,
 1993 1992
 Revenues:
 Company-owned operations $99,175 93,048
 Franchise operations 16,514 21,401
 Total revenues 115,689 114,449
 Operating costs and expenses:
 Company-owned operations 87,278 78,686
 Franchise operations 10,048 14,329
 General and administrative expenses 5,494 5,802
 Operating income 12,869 15,632
 Other income principally interest 438 615
 Income before taxes 13,307 16,247
 Provision for income taxes 5,485 6,527
 Net income $7,822 9,720
 Net income per share $.30 .35
 Shares outstanding at end of period 26,076 27,500
 -0- 10/21/93
 /CONTACT: James Mallen, senior VP/CFO, or Jan Strode, VP/corporate communications, of Jenny Craig Inc., 619-259-7000/
 (JC)


CO: Jenny Craig Inc. ST: California IN: HEA SU: ERN

JL-LS -- SD005 -- 4996 10/21/93 09:01 EDT
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Publication:PR Newswire
Date:Oct 21, 1993
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