Worldwide Restaurant Concepts, Inc. Announces Second Quarter Fiscal
2005 Results HIGHLIGHTS: SHERMAN OAKS, Calif., Nov. 23
/PRNewswire-FirstCall/ -- Worldwide Restaurant Concepts, Inc.
(NYSE:SZ) today reported financial results for the second quarter
ended October 17, 2004. The Company reported revenues of $79.4
million for the second quarter of fiscal 2005, an increase of 4.0
percent over the $76.3 million reported in the second quarter of
the prior year. Net income for the second quarter of fiscal 2005
was $0.9 million, or $0.03 per diluted share, compared to net
income of $0.3 million, or $0.00 per diluted share, in the same
period a year ago. Strengthening sales at Pat & Oscar's and
Sizzler USA and continued strong sales growth at Sizzler Australia
and KFC drove overall results. A 7.4 percent increase in the
Australian dollar exchange rate compared to last year contributed
$3.3 million to 2005 second-quarter revenues and $0.2 million to
net income. Total revenues at Sizzler USA declined $3.3 million
from last year's quarter due to having 12 fewer company operated
restaurants reflecting the successful sale and conversion of nine
Company-owned stores to franchisees. Revenue and Cost Trends The
Company's 4.0 percent increase in revenues in the second quarter
reflected an aggregate 3.7 percent increase in same store sales
across all company-owned restaurants. Same store sales growth of
6.6 percent at KFC and 10.1 percent at Sizzler Australia
(company-owned only) were offset by declines of 1.4 percent for
Sizzler USA company owned units and 1.3 percent for Pat &
Oscar's. Pat & Oscar's sales increased $0.5 million over the
second quarter of last fiscal year and same store sales comparisons
benefited from annualizing over the food borne illness incident
that occurred in the last week of the second quarter of fiscal 2004
and to having two more stores. At quarter end same store sales
reached the level they were at prior to the incident due to the
successful television advertising campaign in San Diego and a new
catering sales force put in place in the first quarter. Same store
sales trends have now turned positive in the first few weeks of the
third quarter of fiscal 2005 due in part to annualizing over the
food borne illness incident. Pat & Oscar's earnings also
improved in the second quarter and was flat with the loss last
year. Menu price increases taken during the middle of the quarter
helped improve operating margins along with a continued strong
focus on controls. "We're pleased with the strides Pat &
Oscar's has made in rapidly recovering from last year's E.coli
event, but recognize further sales improvements are needed to
continue to move the brand forward," said Charles Boppell, CEO of
Worldwide Restaurant Concepts. "We have the right programs and
initiatives in place to grow the top line and to bring those
results to the bottom line and expect that Pat & Oscar's will
continue to improve in the third and fourth quarters." Sizzler
system-wide same store sales were up 2.0 percent in the second
quarter of fiscal 2005 compared to the same period of last year.
Profitability was up 36.3 percent, helped by margin improvements
and lower operating expenses in the U.S. and to continued strong
performance of our international operations. "We believe we are now
very close to finally exiting the New York market's company
operations which have continued to burden the division's same store
sales growth and profitability. Once we have exited this market I
am confident we will see stronger growth in our core California
operations," said Mr. Boppell. KFC same store sales and operating
profit were up 6.6 and 39.5 percent, respectively, compared to the
second quarter of fiscal 2004 due to strong promotions and
continued strong operations. The Company's provision for income tax
this quarter, which primarily relates to income from our Australian
operations, was 51.6 percent of consolidated pre-tax income due to
a pre-tax loss from domestic operations and corporate general and
administrative overhead expenses. Minority interest expense for the
second quarter of 2005 includes 19.1 percent of the international
division's net income attributed to the ownership by local
management. Building on Strategic Initiatives The company continues
to execute against its growth strategies and the improved results
this quarter over the prior year are a continued indication that
the strategies at both domestic divisions are working and will
continue to add to the strong performance of the Sizzler Australia
and KFC operations. In line with the evaluation of the remodel and
training programs at Sizzler in the U.S., all company and franchise
restaurants are being updated with key branding elements that will
bring consistency to the chain as a whole by the end of the current
fiscal year. In addition, re-training is nearly complete and
employees are being re-certified on updated procedures that
directly tie independent guest satisfaction surveys to manager pay
incentives. Pat & Oscar's is expected to open two new stores by
the summer of 2005 and another four by the end of fiscal 2006. All
locations are in Southern California, outside San Diego County.
Investor Conference Call Worldwide Restaurant Concepts will be
holding an investor conference call today at 11:00 a.m. EST to
discuss the Company's financial and operational results. Investors
will have the opportunity to listen to the conference call over the
Internet at http://www.wrconcepts.com/ or
http://www.fulldisclosure.com/. To listen to the live call, please
go to either web site at least fifteen minutes early to register,
download, and install any necessary audio software. For those who
cannot listen to the live broadcast, a replay, also at
http://www.wrconcepts.com/ and http://www.fulldisclosure.com/, will
be available shortly after the call ends. About Worldwide
Restaurant Concepts Worldwide Restaurant Concepts, Inc. operates,
franchises or joint ventures 306 Sizzler(R) restaurants worldwide,
112 KFC(R) restaurants located primarily in Queensland, Australia,
and 23 Pat & Oscar's(R) restaurants. Additional information
about the Company can be found at http://www.wrconcepts.com/.
Certain statements contained in this document may contain
forward-looking statements that are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. These statements may include but are not limited to
statements regarding: improving revenues and earnings; that Pat
& Oscar's sales trends will continue to improve and are
expected to turn positive in the third quarter of this fiscal year;
commencement of construction on additional remodels at Sizzler USA;
the opening of two new Pat & Oscar's restaurants by the summer
of 2005 and another four new restaurants by April 30, 2006; and the
transitioning of Company-owned Sizzler locations in New York and
other areas to franchisees or third parties. Worldwide Restaurant
Concepts cautions that these statements are qualified by important
factors that could cause actual results to differ materially from
those reflected in the forward looking statements contained herein.
Such factors include, but are not limited to: (a) the Company's
ability to implement its strategic plan and manage its costs and
expenses; (b) the ability to design marketing and product
initiatives resulting in same store sales growth; (c) the
availability of capital to upgrade the facilities at its domestic
Sizzler(R) locations and build new Pat & Oscar's restaurants;
(d) Pat & Oscar's ability to improve dine-in and catering sales
through the implementation of marketing and operational programs;
(e) Pat & Oscar's ability to acquire a sufficient number of
suitable sites to open the proposed number of new locations; (f)
the Company's ability to identify new and existing franchisees or
third parties to purchase New York area restaurants; (g) economic
conditions, both generally and as they affect the restaurant
industry in particular; and (h) other risks as detailed from time
to time in the Company's SEC reports, including Quarterly Reports
on Form 10-Q, Current Reports on Form 8-K and Annual Reports on
Form 10-K. For further information, please contact: Keith Wall,
Vice President and CFO, or Liz Baskerville, Director, Planning,
both of Worldwide Restaurant Concepts, Inc., +1-818-662-9800; or
General Information, Laurie Berman, +1-310-854-8315, or
Investor/Analyst Contact, Tricia Ross, +1-617-520-7064, both of
Financial Relations Board, for Worldwide Restaurant Concepts, Inc.
WORLDWIDE RESTAURANT CONCEPTS, INC. AND SUBSIDIARIES CONDENSED
CONSOLIDATED STATEMENTS OF INCOME FOR THE TWELVE WEEKS ENDED
OCTOBER 17, 2004 AND OCTOBER 12, 2003 (Unaudited) (In thousands,
except per share data) October 17, October 12, 2004 2003 Revenues
Restaurant sales $77,119 $74,304 Franchise revenues 2,297 2,038
Total revenues 79,416 76,342 Costs and Expenses Cost of sales
26,100 25,524 Labor and related expenses 21,022 20,605 Other
operating expenses 19,128 19,147 Depreciation and amortization
2,823 2,499 General and administrative expenses 6,906 6,763 Total
operating costs 75,979 74,538 Operating income 3,437 1,804 Interest
expense 667 699 Investment income 117 153 Income before income
taxes and minority interest 2,887 1,258 Provision for income taxes
1,491 980 Minority interest expense (benefit) 535 (40) Net income
$861 $318 Basic earnings per share $0.03 $0.01 Diluted earnings per
share $0.03 $-- Weighted average common shares outstanding: Basic
27,554 27,365 Diluted 28,527 28,591 WORLDWIDE RESTAURANT CONCEPTS,
INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THE TWENTY-FOUR WEEKS ENDED OCTOBER 17, 2004 AND OCTOBER 12,
2003 (Unaudited) (In thousands, except per share data) October 17,
October 12, 2004 2003 Revenues Restaurant sales $156,993 $150,071
Franchise revenues 4,375 4,091 Total revenues 161,368 154,162 Costs
and Expenses Cost of sales 53,718 51,079 Labor and related expenses
42,618 41,103 Other operating expenses 39,219 37,812 Depreciation
and amortization 5,615 5,124 General and administrative expenses
13,983 12,171 Total operating costs 155,153 147,289 Operating
income 6,215 6,873 Interest expense 1,363 1,251 Investment income
241 261 Income before income taxes and minority interest 5,093
5,883 Provision for income taxes 2,660 2,050 Minority interest
expense (benefit) 977 (38) Net income $1,456 $3,871 Basic earnings
per share $0.05 $0.14 Diluted earnings per share $0.05 $0.12
Weighted average common shares outstanding: Basic 27,526 27,328
Diluted 28,519 28,385 WORLDWIDE RESTAURANT CONCEPTS, INC. AND
SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in
thousands) October 17, April 30, ASSETS 2004 2004 Current Assets:
Cash and cash equivalents $22,419 $24,755 Restricted cash 6,514
5,131 Receivables, net of an allowance of $454 at October 17, 2004
and $641 at April 30, 2004 3,176 2,042 Inventories 4,993 4,807
Deferred income taxes 3,169 3,169 Prepaid expenses and other
current assets 2,548 2,718 Assets related to restaurants held for
sale 3,014 5,417 Total current assets 45,833 48,039 Property and
equipment, net 74,536 74,232 Long-term notes receivable (including
$191 related party receivables at October 17, 2004 and $200 at
April 30, 2004) 1,727 912 Deferred income taxes 10,412 10,690
Goodwill, net 23,647 23,647 Intangible assets, net of accumulated
amortization of $1,159 at October 17, 2004 and $1,068 at April 30,
2004 2,049 2,090 Other assets 1,129 1,127 Total assets $159,333
$160,737 WORLDWIDE RESTAURANT CONCEPTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands,
except par value) October 17, April 30, LIABILITIES AND
STOCKHOLDERS' EQUITY 2004 2004 Current Liabilities: Current portion
of long-term debt $7,019 $7,125 Accounts payable 13,509 12,396
Other current liabilities 22,126 23,334 Income taxes payable 2,432
4,056 Total current liabilities 45,086 46,911 Long-term debt, net
of current portion 22,719 29,217 Deferred gains and revenues 8,292
8,738 Pension liability 13,751 14,031 Total liabilities 89,848
98,897 Minority interest 20,675 14 Stockholders' Equity: Capital
stock -- Preferred, authorized 1,000 shares, $5 par value; no
shares issued or outstanding -- -- Common, authorized 50,000
shares, $0.01 par value; issued and outstanding 29,614 and 27,614
shares and 29,438 and 27,438 shares at October 17, 2004 and April
30, 2004, respectively 296 294 Additional paid-in capital 265,720
280,442 Accumulated deficit (199,777) (201,233) Treasury stock,
2,000 shares at October 17, 2004 and at April 30, 2004, at cost
(4,135) (4,135) Accumulated other comprehensive loss (13,294)
(13,542) Total stockholders' equity 48,810 61,826 Total liabilities
and stockholders' equity $159,333 $160,737 DATASOURCE: Worldwide
Restaurant Concepts, Inc. CONTACT: Keith Wall, Vice President and
CFO, +1-818-662-9800, or Liz Baskerville, Director, Planning,
+1-818-662-9800, both of Worldwide Restaurant Concepts, Inc.; or
General Information, Laurie Berman, +1-310-854-8315, or
Investor/Analyst Contact, Tricia Ross, +1-617-520-7064, both of
Financial Relations Board, for Worldwide Restaurant Concepts, Inc.
Web site: http://www.fulldisclosure.com/ Web site:
http://www.wrconcepts.com/
Copyright
Worldwide Restaurant Concepts (NYSE:SZ)
Gráfica de Acción Histórica
De Jun 2024 a Jul 2024
Worldwide Restaurant Concepts (NYSE:SZ)
Gráfica de Acción Histórica
De Jul 2023 a Jul 2024