PLAYORENA INC. REPORTS '91 RESULTS
PLAYORENA INC. REPORTS '91 RESULTS ROSLYN HEIGHTS, N.Y., Feb. 28 /PRNewswire/ -- Playorena Inc.
(NASDAQ: PLEX) reported today that for fiscal 1991, participant registration fees increased 60.3 percent to $1,965,274 from $1,225,914 in fiscal 1990. The net loss for the year was $689,472 compared to a loss of $317,113 in the prior year. The company noted, however, that the prior year loss would have been significantly greater if it had not been for the completion of a Japanese master franchise agreement.
The fiscal 1991 fourth quarter net loss was $8,225 excluding depreciation and amortization of $37,957 down from a net loss of $148,301 excluding depreciation and amortization of $29,650 for the fiscal 1990 fourth quarter. Notwithstanding this fourth quarter improvement, the period was negatively affected by the dramatic downturn in consumer confidence and attitude toward spending during the pre- Christmas season. This downturn has continued in the first quarter of 1992 and the company has taken immediate steps to put into place a plan to reduce cost of both operations and overhead. Playorena has also reported that it has recently issued to certain of its directors approximately $400,000 principal amount of its 10 percent exchangeable notes due 1992 and reached agreement with one of such purchasers to acquire an additional approximately $100,000 principal amount at a later date. THe company is also negotiating with a shareholder who is not a director of the company to acquire common stock which would raise an additional $100,000 for the company. The exchangeable notes were issued in connection with the company's efforts to meet the new requirements for the continued listing of its common stock and warrants on the NASDAQ system and in order to increase the company's working capital to levels which the board determined were necessary in order for Playorena to meet its anticipated obligations in fiscal 1992. The exchangeable notes will be exchanged on a dollar for dollar basis for Playorena preferred stock, subject to stockholder approval of an amendment to Playorena's certificate of incorporation authorizing such preferred stock and a determination by the NASD that such issuance will enable Playorena to maintain its NASDAQ listing. The company was also advised by certain purchasers of the exchangeable notes that they intend from time to time to sell certain shares of the company's common stock owned by them in the open market in transactions subject to Rule 144. Based on Long Island, Playorena's parent-child play and exercise program was established in 1981. Playorena currently operates its own centers and franchises its program to others. -0- 2/28/92 /CONTACT: Fred Jaroslow of Playorena, 516-484-1230/ (PLEX) CO: Playorena Inc. ST: New York IN: SU: ERN SB-AH -- NY054 -- 3833 02/28/92 15:39 EST
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|Date:||Feb 28, 1992|
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