Java Centrale Reports Third Quarter Sales Growth
SACRAMENTO, Calif. -- Java Centrale, Inc. (Nasdaq: JAVC), an operator and franchisor of European-style gourmet coffee cafes and kiosks, and its subsidiary Paradise Bakery & Cafe, reported a third quarter increase in revenue of over 66%. Revenues for the quarter ended December 31, 1996, totaled $3,539,000, versus $2,128,000 for the same period last year. Revenues for the nine months ended December 31, 1996, were $12,020,000 versus $4,674,000 for the same period last year. The additional revenue of $7,346,000 represents an increase of 157%. The Company reported a third quarter loss of $648,000, or $.05 per share. This compares to a net loss of $835,000 or $.12 per share reported in the third quarter last year. For the nine months ended December 31, 1996, the Company reported a net loss of $2,159,000, or $.20 per share, as compared to a net loss of $2,834,000, or $.47 per share for the same period last year. This represents a continued improvement in the Company's performance for both the quarter and the year end.
Java Centrale, Inc., President and Chief Executive Officer, Gary C. Nelson said, "The Company recently began marketing Paradise Bakery & Cafe franchises to qualified individuals and multi-unit developers across the United States." Mr. Nelson further stated, "The newly designed interiors and graphic identity of the Paradise Bakery & Cafe concept, along with a new expanded menu, have been well received. Sales per square foot increases have been beyond our expectations in the recently opened bakery cafes in the Park Meadows Mall in Denver, Colorado; the Sky Harbor International Airport and the Metro Center in Phoenix, Arizona; and the Sunvalley Mall in Concord, California.
There are currently a total of 52 Paradise Bakery & Cafes, of which 17 are Company-owned and 35 franchisees operating in the states of Arizona, California, Colorado, Hawaii, Oklahoma, Oregon, Texas and Washington. New Paradise Bakery & Cafe locations are scheduled to open in Sacramento, San Diego and San Mateo, California and Honolulu, Hawaii.
Java Centrale, currently franchises 34 cafes and espresso carts nationwide, with new locations scheduled to open in Hermosa Beach, Long Beach, Placentia and Redondo Beach, California. In addition, there are numerous locations now in the site selection process across the United States. The Company is also pursuing international expansion and is currently negotiating to develop Java Centrale cafes throughout Korea.
JAVA CENTRALE, INC. AND SUBSIDIARY
Third Quarter Ended December 31 1996 1995
Revenues $ 3,538,535 $ 2,128,350
Operating Expenses $ 4,204,592 $ 2,967,514
Operating Loss $ (666,057) $ (839,164)
Net Loss $ (648,037) $ (835,376)
Per Share Loss $ (.05) $ (.12)
Weighted Average Shares 12,836,365 6,872,912
Nine Months Ended December 31 1996 1995
Revenues $12,019,849 $ 4,673,634
Operating Expenses $14,238,986 $ 7,563,170
Operating Loss $(2,219,137) $(2,889,536)
Net Loss $(2,159,288) $(2,830,966)
Per Share Loss $ (.20) $ (.47)
Weighted Average Shares 10,920,142 5,984,102
/CONTACT: Steven J. Orlando, Chief Financial Officer of Java Centrale
Inc., 916-568-2310/
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