Salt Lake-based StratAmerica Corp. reports net income of $491,000 for the nine-month period ended Dec. 31, compared with $486,000 same period a year earlier.
Revenues for the period were $18.81 million, an increase of 10 percent compared with $17.07 million for the comparable nine-month period ended Dec. 31, 1987. Income from continuing operations for that period was $722,000, compared with $486,000 for the comparable period a year ago, an increase of 48 percent.Earnings per share for the period were 2.16 cents as compared with 2.15 cents for the year-ago period.
For the three months ended Dec. 31, 1988, net income was $89,000, or .39 cents per share, on revenues of $6.47 million compared with net income of $75,000, or .33 cents per share, on revenues of $6.75 million for the comparable period last year.
Last November, StratAmerica announced that it had signed a letter of intent to sell its restaurant subsidiary, Shari's Management Corp., to a Portland, Ore.-based group. Under the terms of the letter, the acquisition group will pay approximately $15.7 million for all of the outstanding shares of Shari's.
StratAmerica's share of that amount if approximately $11.8 million, which will be in the form of about $7.3 million in cash and $4.5 million pursuant to a subordinated note. StratAmerica's $4.5 million note will be convertible to the future, at the company's option into a 40 percent interest in Shari's, subject to certain terms, conditions and dilution.
The transaction will be submitted to shareholders for approval.
StratAmerica President Sam D. Battistone said the company intends to remain in the restaurant business through "selection acquisition" of restaurants from a chain based in Sacramento, Calif.
This chain includes two restaurant concepts, one as a licensee for Shari's restaurants in five states that include Utah, Arizona, California, Colorado and Wyoming.
Battistone said StratAmerica intends to implement anb expansion program of the acquired restaurants from that chain and planbs to become a major licensee of Shari's.
Recently, StratAmerica also acquired a 50 percent interest in B.B. O'Brien's Inc., a sports theme restaurant and bar concept that presently has two locations in California.