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JENNY CRAIG INC. ANNOUNCES THIRD QUARTER RESULTS

 DEL MAR, Calif., April 22 /PRNewswire/ -- Jenny Craig Inc. (NYSE: JC) said today that in its third quarter ended March 31, 1993, revenues increased 8 percent, to $130.8 million, from $121.2 million in the prior year's quarter. The increase in revenues for the quarter was because of the addition of 88 Centres since March 1992.
 Jenny Craig said that company-owned Centres experienced a 10 percent decline in average revenue per Centre in this fiscal year's third quarter vs. the third quarter of fiscal 1992. The company said the decrease in average revenue per Centre was significantly influenced by the 26 percent revenue decline of Jenny Craig's 83 Southern California Centres, which comprised 15 percent of the company-owned operations. Jenny Craig said that average revenues of the remainder of the company-owned Centres experienced a much smaller decline, approximately 5 percent.
 Jenny Craig reported that operating income declined 22 percent in the quarter ended March 31, 1993, to $17.0 million, from $21.8 million in the prior-year's third quarter. Net income for the quarter ended March 31, 1993, was $10.5 million, or $.38 per share, also a decline of 22 percent from $13.5 million, or $.49 per share, for the quarter ended March 31, 1992.
 For the nine months ended March 31, 1993, total revenues were $365.2 million, a gain of 6 percent over last year's revenues of $345.9 million. Average revenue per company-owned Centre fell 11 percent during this fiscal year's first nine months, compared to the same period last fiscal year. Operating income was $43.6 million for the nine-month period, off 22 percent from the prior-year period's $55.8 million. Income before extraordinary item, aided by the elimination of interest expense, decreased 17 percent, to $27.0 million, from $32.4 million, during the previous year's nine- month period. Income before extraordinary item per share, impacted by the increased number of shares outstanding after the company's initial public offering in October 1991, was $.98 for this year's nine-month period vs. $1.25 in the same period last year.
 Sid Craig, chairman and chief executive officer, said, "Although average revenues, especially in Southern California, remain below prior years' levels, the company's business and its expansion continues to be profitable." Craig said that the company opened 19 Centres during the quarter just ended, while 9 new franchise Centres opened, bringing to 79 the total number of Centres added for the first nine months of fiscal 1993. Craig also said, "The company continues to operate debt-free and has a very favorable cash position with cash and cash equivalents totaling $65 million at March 31, 1993."
 Jenny Craig Inc., founded in 1983, is one of the largest weight- management companies in the United States. The company provides consumers with a comprehensive weight-loss program, as well as an ongoing weight maintenance program through a chain of company-owned and franchised Centres located in the United States, Canada, Mexico, Australia and New Zealand. At March 31, 1993, there were 773 Jenny Craig Weight Loss Centres, of which 564 were company-owned.
 JENNY CRAIG INC. AND SUBSIDIARIES
 Consolidated Balance Sheets
 ($ in thousands)
 March 31, June 30,
 1993 1992
 (Unaudited)
 Assets
 Cash and cash equivalents $65,025 51,847
 Accounts receivable, net 6,135 17,355
 Inventories 15,891 17,677
 Other current assets 4,449 2,210
 Total current assets 91,500 89,089
 Property and equipment, net 26,113 22,993
 Other assets 9,509 3,082
 Total $127,122 115,164
 Liabilities and Stockholders'
 Equity
 Accounts payable and
 accrued liabilities 33,945 28,171
 Deferred service revenues 5,295 4,333
 Total current liabilities 39,240 32,504
 Deferred taxes payable 945 843
 Stockholders' equity 86,937 81,817
 Total $127,122 115,164
 JENNY CRAIG INC. AND SUBSIDIARIES
 Consolidated Statements of Income (unaudited)
 ($ in thousands, except per share data)
 Nine Months Ended Three Months Ended
 March 31, March 31,
 1993 1992 1993 1992
 Revenues:
 Company-owned operations $306,372 280,825 112,235 97,973
 Franchise operations 58,848 65,087 18,608 23,189
 Total revenues 365,220 345,912 130,843 121,162
 Operating costs and expenses:
 Company-owned operations 265,632 232,490 95,932 79,532
 Franchise operations 39,192 42,179 12,152 14,178
 General and administrative
 expenses 16,764 15,440 5,772 5,647
 Operating income 43,632 55,803 16,987 21,805
 Interest income (expense),
 net 1,729 (2,521) 471 447
 Income before taxes 45,361 53,282 17,458 22,252
 Provision for income taxes 18,322 20,853 6,961 8,734
 Income before extraordinary
 item 27,039 32,429 10,497 13,518
 Extraordinary item:
 Charge on early repayment
 of debt, net --- 6,280 --- ---
 Net income $27,039 26,149 10,497 13,518
 Per share amounts:
 Income before extraordinary
 item .98 1.25 .38 .49
 Extraordinary item --- .24 --- ---
 Net income .98 1.01 .38 .49
 Shares outstanding at end of
 period 26,989 27,500 26,989 27,500
 -0- 4/22/93
 /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: SU: ERN

BP-LS -- SD002 -- 9223 04/22/93 09:16 EDT
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Date:Apr 22, 1993
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