We change lives for a living.
Jenny Craig Reports Second Quarter Results
LA JOLLA, CA., February 14, 2002- Jenny Craig, Inc. today announced operating results for the quarter ended December 31, 2001.
The Company reported an operating loss of $578,000 on revenues of $68.9 million for the quarter ended December 31, 2001, compared with an operating loss of $4.0 million on revenues of $60.7 million for the same quarter last year. The operating loss in the quarter ended December 31, 2001 included a non-cash charge totaling $1.1 million related to the termination of the Balance Bar licensing agreement. Average revenue per Company-owned centre increased 15% to $117,000 for the quarter ended December 31, 2001 from $102,000 for the quarter ended December 31, 2000. The net loss was $387,000, or $0.02 per diluted share, for the second quarter of fiscal 2002 versus a net loss of $21.6 million, or $1.04 per diluted share, for the same quarter of fiscal 2001. The net loss for the quarter ended December 31, 2000 included a non-cash charge of $17.7 million to increase the deferred tax asset valuation allowance.
For the six months ended December 31, 2001, the Company reported operating income of $10.7 million on revenues of $142.9 million compared to an operating loss of $5.9 million on revenues of $127.1 million for the six months ended December 31, 2000. Operating income for the six months ended December 31, 2001 includes $9.2 million from the reversal of a significant portion of a litigation judgment accrual that was substantially overturned by an appellate court.
At December 31, 2001, the Company held cash and cash equivalents totaling $51.0 million, compared to $38.4 million at June 30, 2001. "I'm pleased that we were able to increase our revenues 14 percent over last year's December quarter, which reflects our continued focus on our core business and the dedication of thousands of Jenny Craig employees throughout our system," said President and Chief Operating Officer Patti Larchet.
On January 28, 2002, Jenny Craig announced that it had entered into a definitive merger agreement providing for the acquisition of the Company by an investor group led by ACI Capital Co., Inc., a private investment firm. DB Capital Partners, the private equity arm of Deutsche Bank, is ACI Capital's partner in the transaction. The investor group will also include Sid and Jenny Craig. The merger agreement calls for each Jenny Craig stockholder to receive $5.30 per share in cash. Completion of the transaction is subject to customary closing conditions, including approval by the stockholders of Jenny Craig, the securing of regulatory approvals and the receipt of financing. The transaction is expected to close in the second quarter of calendar 2002.