Worldwide Restaurant Concepts (NYSE:SZ)
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SHERMAN OAKS, Calif., Sept. 16 /PRNewswire-FirstCall/ -- Worldwide Restaurant Concepts, Inc. (NYSE:SZ) today reported financial results for the first quarter ended July 24, 2005.
The Company reported revenues of $86.3 million for the first quarter of fiscal 2006, an increase of 5.3 percent from the $82.0 million reported in the prior year period. Net income for the 2006 first quarter was $1.9 million, or $0.06 per diluted share, compared to net income of $0.5 million, or $0.02 per diluted share, in the same period a year ago. The strengthening of the Australian dollar compared to last year contributed $4.1 million to 2006 first quarter revenue and $0.3 million to net income.
Merger Transaction Continues to Move Forward. Special Meeting Announced.
On August 22, 2005, the Company announced a special meeting, on September 21, 2005, to consider and vote upon the proposed merger between affiliates of Pacific Equity Partners and Worldwide Restaurant Concepts. The Company and Pacific Equity Partners continue to finalize the steps necessary to completing the merger transaction. "Our first quarter restaurant operations continued the strong momentum of the fourth quarter," commented Chuck Boppell, President and CEO of Worldwide Restaurant Concepts. "Sizzler USA ended the quarter with strong results thanks to two successful promotions: Steak and Lobster, as well as, the Ultimate Sizzlin' Trio; Pat & Oscar's continues to focus on recovering its momentum after the food-borne illness incident of last year, and our Australian subsidiary continues to deliver solid results. We are happy with all our divisions this quarter," continued Mr. Boppell. "Additionally, the merger transaction is moving ahead as planned. We have mailed our proxy and have announced the special meeting in September," added Mr. Boppell. Rob Koczkar, Managing Director of Pacific Equity Partners, echoed Mr. Boppell's comments. "We are pleased that the shareholders will soon be able to vote on this merger and look forward to finalizing this transaction by the end of September," added Mr. Koczkar.
About Worldwide Restaurant Concepts
Worldwide Restaurant Concepts, Inc. operates, franchises or joint ventures 310 Sizzler(R) restaurants worldwide, 112 KFC(R) restaurants located primarily in Queensland, Australia, and 21 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: (i) improving revenues and earnings; and (ii) completion of the pending merger transaction.
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 complete the proposed merger transaction; (b) economic conditions, both generally and as they affect the restaurant industry in particular; and (c) 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.
AT THE COMPANY:
Keith Wall Liz Baskerville
Vice President and CFO Director, Planning
(818) 662-9800 (818) 662-9800
AT Financial Relations Board:
Laurie Berman Tricia Ross
General Information Investor/Analyst Contact
(310) 854-8315 (617) 520-7064
[tables to follow]
WORLDWIDE RESTAURANT CONCEPTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THE TWELVE WEEKS ENDED JULY 24, 2005 AND JULY 25, 2004
(Unaudited)
(In thousands, except per share data)
July 24, July 25,
2005 2004
Revenues
Restaurant sales, net $84,038 $79,874
Franchise revenues 2,292 2,078
Total revenues 86,330 81,952
Costs, expenses and other
Cost of sales (excluding
depreciation and
amortization
reflected below) 28,768 27,618
Labor and related expenses 22,077 21,596
Other operating expenses 20,006 20,153
Depreciation and
amortization 2,799 2,805
General and administrative
expenses 8,184 7,077
Total operating costs,
expenses and other 81,834 79,249
Operating income 4,496 2,703
Interest expense 292 734
Investment income, net 186 124
Income before income taxes
and minority interest 4,390 2,093
Provision for income taxes 1,822 1,164
Minority interest expense 708 440
Net income $1,860 $489
Basic earnings per share $0.07 $0.02
Diluted earnings per share $0.06 $0.02
WORLDWIDE RESTAURANT CONCEPTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands)
July 24, April 30,
ASSETS 2005 2005
Current Assets:
Cash and cash equivalents $36,232 $34,379
Restricted cash 5,341 5,330
Receivables, net of an allowance of
$451 at July 24, 2005
and $437 at April 30, 2005 3,933 2,760
Inventories 5,477 5,670
Deferred income taxes 5,485 5,485
Prepaid expenses and other current
assets 3,522 4,371
Assets related to restaurants held
for sale 2,232 2,232
Total current assets 62,222 60,227
Property and equipment, net 67,190 68,729
Long-term notes receivable, net
(including $151 related party
receivables at July 24, 2005 and
$160 at April 30, 2005) 1,426 1,460
Deferred income taxes 6,971 7,192
Goodwill 1,723 1,723
Intangible assets, net of accumulated
amortization of
$1,354 at July 24, 2005 and $1,322
at April 30, 2005 2,223 2,278
Other assets 536 925
Total assets $142,291 $142,534
WORLDWIDE RESTAURANT CONCEPTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands, except par value)
July 24, April 30,
LIABILITIES AND STOCKHOLDERS' EQUITY 2005 2005
Current Liabilities:
Current portion of long-term debt $7,021 $7,077
Accounts payable 17,590 16,426
Other current liabilities 27,849 29,630
Income taxes payable 3,831 4,327
Total current liabilities 56,291 57,460
Long-term debt, net of current
portion 6,461 7,496
Deferred gains, rent and landlord
incentives 18,602 18,917
Pension liability 13,668 13,817
Total liabilities 95,022 97,690
Minority interest 32,533 32,028
Stockholders' Equity:
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 29,880
and 27,880 shares
and 29,880 and 27,880 shares at
July 24, 2005
and April 30, 2005, respectively 299 299
Additional paid-in capital 256,238 256,066
Accumulated deficit (224,176) (226,036)
Treasury stock, 2,000 shares at
July 24, 2005
and at April 30, 2005, at cost (4,135) (4,135)
Accumulated other comprehensive
loss (13,490) (13,378)
Total stockholders' equity 14,736 12,816
Total liabilities and
stockholders' equity $142,291 $142,534
DATASOURCE: Worldwide Restaurant Concepts, Inc.
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, Tricia Ross, +1-617-520-7064, both of Financial Relations
Board, for Worldwide Restaurant Concepts, Inc.
Web site: http://www.wrconcepts.com/