Quality Dining (NASDAQ:QDIN)
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Quality Dining Reports Third Quarter Results
MISHAWAKA, Ind., Sept. 15 /PRNewswire-FirstCall/ -- Quality Dining, Inc.
(NASDAQ:QDIN) today announced total revenues of $56.9 million for the third
quarter of fiscal 2004 versus $52.0 million during the same period in fiscal
2003. For the 40 weeks ended August 1, 2004, the Company reported total
revenues of $173.2 million versus $166.9 million in the comparable period
during fiscal 2003.
The Company reported net income of $1,236,000, or $0.12 per diluted share, for
the third quarter of fiscal 2004 compared to a net loss of $133,000, or $0.01
per diluted share, for the same period in fiscal 2003. For the first 40 weeks
of fiscal 2004, the Company reported net income of $1,769,000, or $0.17 per
diluted share, compared to a net loss of $233,000, or $0.02 per diluted share,
for the comparable period in fiscal 2003.
The Company also reported that it has concluded that there was an error in the
calculation of the weighted average shares outstanding in the Company's
financial statements for the sixteen weeks ended February 15, 2004 included in
the Company's Form 10-Q for the quarterly period ended February 15, 2004, and
the Company's financial statements for the twelve and twenty-eight weeks ended
May 9, 2004 included in the Company's Form 10-Q for the quarterly period ended
May 9, 2004. The error in the calculation of weighted average shares
outstanding had no impact on the Company's previously reported financial
position or results of operations including net income but did affect the
calculation of basic and diluted net income (loss) per share for each reporting
period.
Specifically, the shares of the Company's common stock held by an affiliated
real estate entity should have been excluded from the calculation of weighted
average shares outstanding in the Company's financial statements for the
sixteen weeks ended February 15, 2004 and the twelve and the twenty- eight
weeks ended May 9, 2004. The affiliated real estate entity leases certain
Burger King restaurants to the Company and is owned by the Company's Chairman
and Chief Executive Officer. Beginning October 27, 2003, the Company has
consolidated the affiliated real estate entity pursuant to the guidance in FASB
Interpretation No. 46, "Consolidation of Variable Interest Entities", as
amended (FIN 46R). The Company appropriately reflected the common stock held
by the affiliated real estate entity as treasury stock on its consolidated
balance sheets at February 15, 2004 and May 9, 2004.
Accordingly, the Company will adjust the previously reported weighted average
shares outstanding and resultant net income (loss) per share data in its
financial statements for the sixteen weeks ended February 15, 2004 and the
twelve and twenty-eight weeks ended May 9, 2004, to reflect the proper weighted
average shares outstanding and the proper basic and diluted net income (loss)
per share. This adjustment will have the following effect:
Sixteen Weeks Ended February 15, 2004
-------------------------------------
As Restated As Previously Reported
------------------ ------------------
Basic net income per share:
Continuing operations $ 0.01 $ 0.00
Discontinued operations 0.02 0.02
--------- --------
Basic net income per share $ 0.03 $ 0.02
========= ========
Diluted net income per share:
Continuing operations $ 0.01 $ 0.00
Discontinued operations 0.02 0.02
--------- --------
Diluted net income per share $ 0.03 $ 0.02
========= ========
Weighted average shares outstanding:
Basic 10,163,000 11,311,000
Diluted 10,195,000 11,343,000
Twelve Weeks Ended May 9, 2004
------------------------------
As Restated As Previously Reported
------------------ ------------------
Basic net income (loss) per share:
Continuing operations $ 0.11 $ 0.10
Discontinued operations (0.09) (0.08)
--------- --------
Basic net income (loss)
per share $ 0.02 $ 0.02
========= ========
Diluted net income (loss)
per share:
Continuing operations $ 0.11 $ 0.10
Discontinued operations (0.09) (0.08)
--------- --------
Diluted net income (loss)
per share $ 0.02 $ 0.02
========= ========
Weighted average shares outstanding:
Basic 10,163,000 11,311,000
Diluted 10,189,000 11,337,000
Twenty-Eight Weeks Ended May 9, 2004
------------------------------------
As Restated As Previously Reported
------------------ ------------------
Basic net income (loss) per share:
Continuing operations $ 0.13 $ 0.11
Discontinued operations (0.08) (0.07)
--------- --------
Basic net income (loss)
per share $ 0.05 $ 0.04
========= ========
Diluted net income (loss) per share:
Continuing operations $ 0.13 $ 0.11
Discontinued operations (0.08) (0.07)
--------- --------
Diluted net income (loss)
per share $ 0.05 $ 0.04
========= ========
Weighted average shares outstanding:
Basic 10,163,000 11,311,000
Diluted 10,193,000 11,341,000
Quality Dining owns the Grady's American Grill(R), Papa Vino's Italian
Kitchen(TM) and Spageddies Italian Kitchen(TM) concepts and operates Burger
King(R) restaurants and Chili's Grill & Bar(R) restaurants as a franchisee. As
of September 15, 2004, the Company operates 124 Burger King restaurants, 39
Chili's Grill & Bar restaurants, six Grady's American Grill restaurants, six
Papa Vino's Italian Kitchen(TM) restaurants, three Spageddies Italian Kitchen
restaurants and one Porterhouse restaurant.
This press release contains and incorporates forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995, including
statements about the Company's development plans and trends in the Company's
operations and financial results. Forward-looking statements can be identified
by the use of words such as "anticipates," "believes," "plans," "estimates,"
"expects," "intends," "may," and other similar expressions. Forward-looking
statements are made based upon management's current expectations and beliefs
concerning future developments and their potential effects on the Company.
There can be no assurance that the Company will actually achieve the plans,
intentions and expectations discussed in these forward-looking statements.
Actual results may differ materially. Among the risks and uncertainties that
could cause actual results to differ materially are the following: the
availability and cost of suitable locations for new restaurants; the
availability and cost of capital to the Company; the ability of the Company to
develop and operate its restaurants; the ability of the Company to sustain
sales and margins in the increasingly competitive environment; the hiring,
training and retention of skilled corporate and restaurant management and other
restaurant personnel; the integration and assimilation of acquired concepts;
the overall success of the Company's franchisors; the ability to obtain the
necessary government approvals and third-party consents; changes in
governmental regulations, including increases in the minimum wage; the results
of pending litigation; and weather and other acts of God. The Company
undertakes no obligation to update or revise any forward-looking information,
whether as a result of new information, future developments or otherwise.
Quality Dining is not responsible for changes made to this document by wire
services or Internet services.
QUALITY DINING, INC.
Unaudited Financial Highlights
(in thousands, except per share amounts)
12 Weeks 12 Weeks 40 Weeks 40 Weeks
Ended Ended Ended Ended
August 1, August 3, August 1, August 3,
2004 2003 2004 2003
Restaurant sales:
Burger King $31,561 $27,851 $90,446 $87,244
Chili's Grill & Bar 20,634 19,028 65,787 61,160
Italian Dining
Division 3,581 3,864 12,473 13,671
Grady's American Grill 1,163 1,288 4,523 4,789
Total revenues 56,939 52,031 173,229 166,864
Operating expenses:
Restaurant operating expenses:
Food and beverage 16,011 13,893 47,867 44,742
Payroll and benefits 16,237 15,138 50,132 48,768
Depreciation and
amortization 2,153 2,260 7,119 7,620
Other operating
expenses 14,560 13,651 44,977 43,729
Total restaurant
operating expenses 48,961 44,942 150,095 144,859
Income from restaurant
operations 7,978 7,089 23,134 22,005
General and
administrative 3,675 3,861 12,354 12,841
Trademark amortization 25 100 144 302
Operating income 4,278 3,128 10,636 8,862
Other income (expense):
Recovery of note
receivable - - - 3,459
Interest expense (1,462) (1,561) (4,985) (5,554)
Loss on sale of
property and
equipment (26) (24) (101) (32)
Minority interest
in earnings (618) (604) (1,672) (1,974)
Stock purchase expense - (1,294) - (1,294)
Other income, net 15 125 165 872
Total other income
(expense), net (2,091) (3,358) (6,593) (4,523)
Income (loss) from
continuing operations
before income taxes 2,187 (230) 4,043 4,339
Income tax provision 784 181 1,343 777
Income (loss) from
continuing operations 1,403 (411) 2,700 3,562
Income (loss) from
discontinued
operations (167) 278 (931) (3,795)
Net income (loss) $1,236 $(133) $1,769 $(233)
Basic net income (loss) per share:
Continuing operations 0.14 (0.04) 0.26 0.32
Discontinued
operations (0.02) 0.03 (0.09) (0.34)
Basic net income
(loss) per share $0.12 $(0.01) $0.17 $(0.02)
Diluted net income
(loss) per share:
Continuing operations 0.14 (0.04) 0.26 0.32
Discontinued
operations (0.02) 0.03 (0.09) (0.34)
Diluted net income
(loss) per share $0.12 $(0.01) $0.17 $(0.02)
Weighted average shares:
Basic 10,163 10,805 10,163 11,142
Diluted 10,212 10,805 10,212 11,156
DATASOURCE: Quality Dining, Inc.
CONTACT: John C. Firth, Executive Vice President and General Counsel of
Quality Dining, Inc., +1-574-243-6616