Printer Friendly

APPLEBEE'S REPORTS 70 PERCENT INCREASE IN NET EARNINGS FOR SECOND QUARTER OF 1993

 OVERLAND PARK, Kan., Aug. 2 /PRNewswire/ -- Applebee's International, Inc., (NASDAQ:APPB) today reported record net earnings of $2,185,000, or 15 cents per share, for its second quarter ended June 27, 1993. This is a 70 percent net earnings increase from $1,283,000, or 9 cents per share, for the second quarter of 1992. Earnings per share reflect a two-for-one stock split effected on June 25, 1993.
 Applebee's operating revenue (comprised of company restaurant sales and franchise income) was $28,431,000 for the second quarter of 1993, an increase of 111 percent over operating revenue of $13,458,000 in the second quarter of 1992. Second quarter operating revenue includes sales from 14 Minnesota restaurants acquired from a franchisee as of Feb. 26, 1993, and reflects both the continued growth of the Applebee's system and increased sales levels from existing restaurants during the quarter.
 Operating earnings increased 110 percent to $3,393,000 in this year's second quarter, compared with $1,616,000 for the same period in 1992.
 Total Applebee's system sales were $143.3 million in the second quarter of 1993, an increase of 49 percent over total system sales of $96.3 million for the same period in 1992. System-wide comparable restaurant sales increased 10.2 percent in the second quarter. Comparable sales of company-owned and operated restaurants (excluding the Minnesota restaurants) were up 14.6 percent in the quarter. Weighted average shares outstanding in the second quarter of 1993 increased to 14,543,000 from 13,519,000, primarily as the result of shares issued in connection with the acquisition of the Minnesota restaurants. Shares outstanding in both 1993 and 1992 have been adjusted to reflect the two-for-one stock split effected on June 25, 1993.
 For the 26 weeks ended June 27, 1993, net earnings were $4,064,000, or 29 cents per share, an 87 percent net earnings increase from $2,177,000, or 19 cents per share, for the comparable period in 1992.
 As of the date of this release, there are 295 Applebee's restaurants open in 37 states. At June 27, 1993, there were 287 restaurants open, compared with 217 restaurants at the end of the second quarter of 1992. There were also 36 new Applebee's restaurants under construction and 51 additional franchisee sites approved at June 27, 1993. The company pointed out that, while site approvals do not always result in new restaurant openings, the number of franchisee sites approved is a good indicator of new restaurant potential.
 Abe J. Gustin, Jr., Applebee's chairman and CEO, said, "Our system had 38 new restaurant openings in this year's first half, 23 of which were in the second quarter. This is the largest number of openings for a six month period in the history of the Applebee's concept.
 "System-wide average annualized unit sales during this year's first half have been nearly $2.1 million and, for new restaurants opening during the same period, average annualized unit sales have been $2.3 million. These sales volumes are approaching average restaurant unit capacity.
 "The continued expansion of our system is being driven by the acceptance of the Applebee's concept in virtually every community where we open, plus the increased availability of reasonably priced financing for our franchisees. These elements, as well as continued increases in comparable restaurant sales, have resulted in the earnings momentum we experienced in the first six months of 1993.
 "As many of our established restaurants reach their maximum sales capacity, comparable restaurant sales become less meaningful than they are currently. However, the combination of operating many restaurants in markets that are still experiencing strong sales growth, plus the continued rapid expansion of the Applebee's system with strong restaurant opening sales levels, point to continued revenue increases for the company."
 Applebee's International, Inc., headquartered in Overland Park, Kan., develops, franchises and operates a rapidly expanding national chain of restaurants under the trademark Applebee's Neighborhood Grill and Bar.
 APPLEBEE'S INTERNATIONAL, INC. AND SUBSIDIARIES
 Consolidated Statements of Earnings
 (In thousands except per share amounts)
 (Unaudited)
 13 weeks ended 26 weeks ended
 6/27/93 6/28/92 6/27/93 6/28/92
 Company restaurant
 operations:
 Food and beverage sales $23,229 $9,666 $40,479 $18,820
 Cost of sales:
 Food and beverage 6,992 2,979 12,212 5,796
 Labor 7,528 3,464 13,408 6,622
 Direct and occupancy 5,387 2,257 9,408 4,355
 Amortization of
 pre-opening costs 141 8 265 8
 Total cost of sale 20,048 8,708 35,293 16,781
 Company restaurant
 operating earnings 3,181 958 5,186 2,039
 Franchise operations:
 Franchise income 5,202 3,792 9,928 6,784
 Franchise expense 1,146 993 2,139 1,698
 Amortization of
 franchise right 87 106 187 212
 Franchise operating earnings 3,969 2,693 7,602 4,874
 Corporate and
 operations overhead 3,359 1,884 6,101 3,649
 Amortization of goodwill and
 other intangible assets 398 151 637 301
 Operating earnings 3,393 1,616 6,050 2,963
 Other income (expense):
 Interest and
 dividend income 345 441 732 584
 Interest expense (49) -- (66) --
 Other income (expense) 66 7 106 3
 Total other income 362 448 772 587
 Earnings before
 income taxes 3,755 2,064 6,822 3,550
 Income taxes 1,570 781 2,758 1,373
 Net earnings $2,185 $1,283 $4,064 $2,177
 Net earnings per
 common share $0.15 $0.09 $0.29 $0.19
 Weighted average
 shares outstanding 14,543 13,519 14,229 11,528
 APPLEBEE'S INTERNATIONAL, INC. AND SUBSIDIARIES
 Consolidated Balance Sheets
 (In thousands except per share amounts)
 June 27, December 27,
 1993 1992
 (Unaudited) (Audited)
 Assets
 Current assets:
 Cash and invested cash $7,056 $2,100
 Short-term investments 6,000 20,666
 Interest and dividends receivable 285 844
 Accounts and notes receivable (less
 allowances for bad debts of $222
 in 1993 and 1992) 3,555 2,516
 Inventories 664 440
 Prepaid and other current assets 1,014 888
 Assets held for resale -- 725
 Total current assets 18,574 28,179
 Property and equipment, net 33,476 15,386
 Marketable securities (market value-
 $12,900 at June 27, 1993) 12,317 14,836
 Other assets:
 Goodwill 17,981 1,144
 Franchise interest and rights 7,589 7,939
 Other intangible assets 1,058 71
 Other 1,230 585
 Total other assets 27,858 9,739
 Total assets $92,225 $ 68,140
 Liabilities and Stockholders' Equity
 Current liabilities:
 Current portion of notes payable $436 $148
 Current portion of obligations under
 noncompetition and consulting agreement 245 --
 Accounts payable 5,798 2,823
 Accrued expenses and other
 current liabilities 6,634 4,353
 Accrued income taxes 458 39
 Accrued dividends -- 612
 Total current liabilities 13,571 7,975
 Non-current liabilities:
 Notes payable - less current portion 2,180 78
 Franchise deposits 1,268 1,074
 Obligations under noncompetition and
 consulting agreement - less
 current portion 880 --
 Deferred income taxes 500 --
 Total non-current liabilities 4,828 1,152
 Total liabilities 18,399 9,127
 Minority interest in joint venture 464 435
 Stockholders' equity:
 Common stock - par value $0.01 per share;
 authorized - 25,000,000 shares; Issued -
 14,736,384 shares in 1993 and 13,801,720
 shares in 1992 147 69
 Preferred stock - par value $0.01
 per share; authorized -
 1,000,000 shares; no shares
 issued in 1993 or 1992 -- --
 Additional paid-in capital 61,797 51,082
 Retained earnings 12,267 8,276
 Total 74,211 59,427
 Treasury stock - 187,848 shares in 1993
 and 1992, at cost (849) (849)
 Total stockholders' equity 73,362 58,578
 Total liabilities and
 stockholders' equity $92,225 $68,140
 -0- 8/2/93
 /CONTACT: Jack Falker of Swenson Falker Eilertsen Inc., 612-371-0000, for Applebee's; George Shadid or Sue Carroll of Applebee's International, 913-967-4000/
 (APPB)


CO: Applebee's International, Ltd. ST: Kansas IN: REA SU: ERN

AL -- MN025 -- 8594 08/02/93 18:23 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Aug 2, 1993
Words:1322
Previous Article:FOX INC. BASIC CABLE NETWORK MOVES FORWARD WITH SIX MAJOR MSO AGREEMENTS
Next Article:PORT AUTHORITY OF NY & NJ'S $100 MILLION VSOS RATED 'A+/F-1+' BY FITCH -- FITCH FINANCIAL WIRE --
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters