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Lucor Reports Second Quarter Results

14 August 1998

Lucor Reports Second Quarter Results

    RALEIGH, N.C., Aug. 14 -- Lucor, Inc. , the
largest Jiffy Lube franchisee in the United States, today announced second
quarter 1998 net income of $224,368, or $0.07 per share, on net sales of
$15.0 million.
    These are the first positive results for the company since the third
quarter of 1995, and they compare with a net loss of $169,561, or $0.07 per
share, in last year's second quarter.
    Same-store sales were 5.9 per cent higher in this year's second quarter
than a year earlier.
    Jerry Conway, Lucor's president, said management is pleased with the
improved performance that is evident in the results being announced today.
    "Our sales are growing more rapidly than those of our industry generally,
which is always a good sign," Mr. Conway said.  "The operations and marketing
programs launched in the fourth quarter of 1997 are accelerating the
ramping-up of sales at our new stores."  Lucor has increased its number of
service centers from 36 in 1995 to 125 currently.
    Income from operations was $983,695 in the second quarter of 1998,
compared with $88,074 a year earlier.  This elevenfold increase occurred as
revenue per service center surpassed fixed costs by an increasing margin, so
that a greater proportion of revenue fell to the bottom line.
    Stephen P. Conway, chief executive officer, said Lucor's second quarter
1998 results surpass management's expectations.
    "We knew that the past three years of aggressive expansion and intense
marketing would put the company into the black by the fourth quarter," Stephen
Conway said.  "But we are pleasantly surprised to see it happening in the
second quarter."
    Lucor's second quarter 1998 results include sales and income generated by
23 service centers acquired on April 1 in Virginia and North Carolina.


                                 LUCOR, INC.
                      Consolidated Statements of Income
                                 (Unaudited)

                           Three Months Ended         Six Months Ended
                     June 30, 1998 June 30, 1997June 30, 1998 June 30, 1997

    Net sales          $14,966,493   $10,777,687  $25,694,976   $20,796,065

    Cost of sales        3,384,144     2,531,315    5,905,950     4,841,248

    Gross profit        11,582,349     8,246,372   19,789,026    15,954,817

    Costs and expenses:
        Direct           5,390,603     3,961,229    9,645,819     7,799,926
        Operating        2,817,039     2,232,817    5,169,987     4,332,306
        Depreciation       581,499       507,625      980,062     1,126,012
        Selling, general
         and
         administrative  1,809,513     1,456,627    3,412,467     2,824,839
                        10,598,654     8,158,298   19,208,335    16,083,083

    Income (loss) from
     operations            983,695        88,074      580,691      (128,266)
    Interest expense      (741,269)     (367,607)  (1,190,427)     (724,144)
    Other income           102,572        14,641      133,417        24,320

    Income (loss) before
     provision for
     income taxes          344,998      (264,892)    (476,319)     (828,090)

    Provision for
     income taxes          120,630       (95,331)    (161,948)     (298,112)

    Net income (loss)      224,368      (169,561)    (314,371)     (529,978)

    Preferred dividend
     accrued               (35,000)      (35,000)     (70,000)      (70,000)

    Net income (loss)
     available for common
     shareholders         $189,368     ($204,561)   ($384,371)    ($599,978)

    Weighted average
     number of shares
     outstanding         2,821,388     2,846,888    2,834,388     2,839,388

    Net income (loss)
     per common share
     outstanding             $0.07       ($0.07)       ($0.14)       ($0.21)