Salt Lake-based StratAmerica Corp., former holding company for the Utah Jazz pro basketball franchise, had total revenues of $23.59 million for the year ended March 31 and net profit of $1.04 million, or 5 cents per share.
Comparable amounts for the same period last year wererevenues of $22.46 million and net profit of $8 million, or 34 cents per share. That figure included an $8.09 million gain on the sale of one-half of the Utah Jazz to Utah auto dealer Larry Miller.StratAmerica's main business comprises some 85 percent of Shari's Management Corp., owners and operators of 25 family oriented "Shari's" restaurants in Oregon and Washington.
Shari's Management Corp. contributed total revenues of approximately $23.1 million and a net income of approximately $508,000 to StratAmerica's earnings as compared to total revenues of approximately $21.1 million and a net income of approximately $201,000 for the previous year.
A StratAmerica spokesman said Shari's has shown substantial growth in earnings, and the expected turnaround, since its acquisition in early 1985, has been completed sooner than expected.
"Shari's improved operating results have provided the resources to implement its present expansion program that is supported by its established management and operational base," the spokesman said.
The company said operational profitability will be improved for fiscal year 1989 by the reduction of interest payments because subsequent to the end of the fiscal year Strat-America received $3.67 million as full prepayment on a discounted basis of a note issued when it sold its 50 percent interest in the Utah Jazz in 1986.
The funds were used to retire StratAmerica Corp.'s secured bank debt and to provide additional working capital.
As a condition of the sale StratAmerica Corp. retained the right to receive a one-half interest in any expansion franchise payments allocated to the Utah Jazz through the 1988-1989 season. The first payment of $1.30 million was received as the share which represents the two new NBA franchises in Charlotte, N.C., and Miami.
A similar amount is expected next spring for the two additional franchises, which will be located in Minneapolis and Orlando, Fla. The NBA's board of governors approved these four new expansion locations with each new franchisee paying a $32.5 million entry fee that is equally distributed to the 23 member franchises.