EAI profits attributed to investments School operations had 3-month loss

February 08, 1994|By Ian Johnson | Ian Johnson,New York Bureau of The Sun

Education Alternatives Inc., the Minneapolis company that runs 11 Baltimore schools, reported increased revenues and sharply higher profits but had an operating loss for the three months ending Dec. 31, 1993.

The increased revenues reflected contracts that EAI signed last fall to manage two new Baltimore schools on top of the original nine schools. Profits also were up, but the money was earned from the company's investments of money it raised from the stock market last year, not from operating the 11 schools.

The company lost $298,000 in running the schools, which accounts for virtually all the company's business. For the same period a year earlier, EAI showed an operating profit of $184,000. Company officials could not be reached for comment, but an analyst attributed the loss to investments made in the schools and difficulties in making money by running the schools.

The earnings also were less than analysts' predictions of 10 cents a share and come after the company's stock fell $4 a share on Friday.

Education Alternatives Inc.

A1 ... ... ... Ticker... ... ... ... Yesterday's ... ... ... ...Symbol... ... ... .. . Cls.... ..Chg.

... ... ...EAIN.. ... ... ... ... 33 3/8 ... ...- 3/8

Period ended

Dec. 31.. ... ... 2nd qtr.... ... Year ago... ... Chg.

Revenue ... ... ..$8,756... ... ..$7,986... ... . +9.6%

Revenue ... ... ..$8,756... ... . $7,986... ... . +9.6%

Net Income ... ... .$549... ... ... $235... ... . +133%

Primary EPS... ... $0.07... ... ... $0.04... .. . +75%

... ... ... ... ...6 mos. ... ... Year ago... ... Chg.

Revenue .. ... ...$14,137... ... . $13,141..... .. +7.6%

Net Income... ... .. $879... ... ... . $49.... +1,694%

Primary EPS ... ... ...$0.11... ... ... $0.01. +1,000%

Figures in thousands (except per share data.)

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