San Francisco, CA -Oct. 15, 1997- California Culinary Academy (Nasdaq:COOK) Wednesday announced that it reported a 3 percent increase in revenues to a record $15.3 million and net income of $160,000, or 4 cents per share, for fiscal 1997. The year was marked by a number of substantial accomplishments providing the foundation for expansion in the near future.
For the fiscal year ended June 30, 1997, revenues increased 3 percent
to $15,339,000, compared with $14,882,000
for the prior year. Net income for fiscal 1997 was $160,000, or four cents per share, on 3,656,601 weighted average
shares outstanding, compared with a net loss of $999,000, or 32 cents per share, on 3,114,732 weighted average
shares outstanding for the previous year.
For the fourth quarter ended June 30, 1997, the company reported a 5.7
percent increase in revenues to $3,901,000,
compared with $3,691,000 reported for the same three-month period last year.
Net losses for the quarter were $126,000, or 4 cents per share, on 3,358,572
weighted average shares outstanding,
in comparison with a net loss of $638,000, or 20 cents per share, on 3,145,712 weighted average shares
outstanding for the three months ended June 30, 1996.
Revenues during the quarter were derived primarily from core admissions
of students in the company's full
two-year accredited program, with approximately $92,000 in incremental revenues contributed from the extension
campus and $589,000 from restaurant sales and off-site catering.
In isolating the operating performance of the company's core facility
in San Francisco from the $172,000
expansion and operating costs incurred to launch the Salinas, Calif., extension campus, the company would show
net income of $332,000, or 9 cents per share, for fiscal 1997.
Commenting on the fourth-quarter and year-end performance, President
Keith Keogh said: ``The financial results
achieved in our turnaround year was quite an accomplishment and reflects the leadership of the board, new
management and staff.
``Although delivering only moderate sales growth in 1997, the gain in
profitability represents the strongest
bottom-line performance in the past three years. Further, our monumental achievements in 1997 will provide the
foundation for expansion in the near future.
``The numerous achievements over the course of the year were marked
by the successful January opening of our
extension-campus prototype, `College of Food', in Salinas, Calif. This new division marks the first step in the
company executing on its business plan to pursue food-service employment markets other than fine dining,
which represents a mere 1 percent of the total industry. ``That broader market, not serviced by competitors, represents 99 percent of the industry and is comprised of mid-scale and quick-service restaurant employment.
The College of Food trains kitchen personnel at all levels and works closely with restaurant management to develop curriculum and schedules to fit their specific needs. ``Contract training and specialized consulting products developed for food companies will also be operated from the extension-campus division.''
Regarding other accomplishments, Keogh continued, saying: ``Earlier in the year, to grow revenues and improve operating efficiencies, we reorganized the enrollment model, went to a 364-day operation schedule, converted 15 traditional student holiday breaks into rotating breaks, launched a weekend skills program for those with full-time jobs, expanded classroom space, and extended food and beverage operations and offerings.
``In so doing, we broadened student capacity to 1,000, realized higher
retention rates among our degree-seeking
students, increased enrollment revenues, and elevated restaurant sales.
``In addition to market expansion and major operational improvements,
we implemented a new curriculum
emphasizing `global' cuisine to set the Academy apart from competitors, and embarked on an aggressive effort to
elevate awareness and broaden our presence throughout the food industry, thus improving the California
Culinary Academy brand.
``While citing those accomplishments occurring during the fiscal year,
we were just recently able to complete
milestone events started earlier in the year, including the conclusion of favorable renegotiations of the building
lease at the 625 Polk St. facility in May this year, resulting in enhanced profitability in the near term.
``Perhaps most importantly, was our lease of the Hotel Leslie for 68
dormitory rooms in August, and the purchase
of the Mayfair Hotel, adding another 70 rooms this October. The collective capacity of 133 rooms will house 266
students over the next two years as part of a multiphase housing program.''
Looking forward, Keogh added: ``From the foundation laid in fiscal 1997,
we expect to continue on a path to
growth and have recently demonstrated prospects of incremental growth through our extension-campus
Early this September, the California Culinary Academy announced that
a contract had been signed with the
Monterey County Department of Corrections, where the College of Food has been contracted to train
minimal-security residents in its food-services program.
``This is simply the beginning to our becoming `the' resource to the
food industry,'' concluded Keogh.
The California Culinary Academy is one of the largest culinary schools in the United States. The Academy offers
culinary-arts education through two fully accredited professional programs, as well as a series of continuing
professional educational programs and vocational training.
In addition, the Academy provides contract training, research and development,
and consulting services to the
food industry and food-services departments of government, the military and industry. Information on the
company can be found on the Internet at http://www.baychef.com
This release contains certain forward-looking statements regarding the
company's expected performance for
future periods, and actual results for such periods may differ materially. Such forward-looking statements involve
risks and uncertainties, including risks of changing market conditions in the overall economy and the food
industry, consumer demand, the success of the company's business strategies, and other factors detailed from
time to time in the company's annual and other reports filed with the Securities and Exchange Commission.