Advantica Reports First-quarter Increase In EBITDA.SPARTANBURG Spartanburg, city (1990 pop. 43,467), seat of Spartanburg co., NW S.C., in the Piedmont (see under piedmont) near the N.C. line; inc. 1831. The city is noted for its textile production. , S.C.--(BUSINESS WIRE)--May 14, 1998-- -Company Signs Definitive Agreement to Sell Quincy's- Advantica Restaurant Group, Inc. (Nasdaq: DINE) today reported a 26 percent increase in EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become for the first quarter ended April 1, 1998 to $57.7 million from $45.7 million in the prior year quarter. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. before amortization of excess reorganization The process of carrying out, through agreements and legal proceedings, a business plan for winding up the affairs of, or foreclosing a mortgage upon, the property of a corporation that has become insolvent. value increased to $29.9 million versus $20.1 million in the first quarter of 1997. Revenue for the quarter was $473.8 million compared with $538.2 million in the prior year period. The Company also announced that it has signed a definitive agreement to sell its Quincy's Family Steakhouse steak house or steak·house n. A restaurant that specializes in beefsteak dishes. steakhouse Noun a restaurant that specializes in steaks Noun 1. division to Buckley Buck·ley , William Frank, Jr. Born 1925. American writer and editor known especially for his caustic, polysyllabic wit. Acquisition Corp. (BAC BAC abbr. blood alcohol concentration ) for a total sales price of $85.7 million. The sales price is comprised of $81.5 million in cash, the assumption of $4.2 million in capital leases, plus the assumption of certain other liabilities other liabilities Small and relatively insignificant liabilities. For financial reporting purposes, firms often combine small liabilities into this single category rather than listing each liability separately. . BAC is led by Gregory M. Buckley, who served as president of Quincy's from 1993-1995. The parties anticipate that the transaction will be completed within the next few weeks. Advantica Chairman and Chief Executive Officer James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. B. Adamson “Adamson” redirects here. For other uses, see Adamson (disambiguation).
The Adamson was an English car manufactured in Enfield, Middlesex, from 1912 to 1925. said, "The divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of Quincy's is consistent with our strategic desire to focus on the family dining and specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. chicken segments of the restaurant industry. This sale is for an attractive price and will provide the Company with additional capital for reinvestment Reinvestment Using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash. 1. In terms of stocks, it is the reinvestment of dividends to purchase additional shares. . We are also pleased that BAC will continue to employ all 8,000 restaurant employees and field leaders." Commenting on the financial results, Adamson said, "Strong growth in EBITDA for the quarter was driven primarily by increased earnings at our largest concept, Denny's Denny's is the largest full-service family restaurant chain in the United States. It operates over 2,500 restaurants in the United States (including Puerto Rico), Canada, Curaçao, Costa Rica, El Salvador, Japan, Mexico, and New Zealand. . While Denny's comparable store sales were somewhat lower than the prior year quarter, the trend line has improved during the past two quarters, as well as into the second quarter of 1998. In fact, through the first five weeks of the second quarter, Denny's quarter-to-date comparable store sales are ahead of the prior year period. We are beginning to see affirmation A solemn and formal declaration of the truth of a statement, such as an Affidavit or the actual or prospective testimony of a witness or a party that takes the place of an oath. An affirmation is also used when a person cannot take an oath because of religious convictions. of the decision we made in late 1996 to move Denny's away from a low price point strategy to a total guest value strategy. "We are very excited about a number of initiatives underway at Denny's, including a new image repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery. program to be tested in three markets during 1998. This program is intended to give Denny's a more distinct brand positioning with an upbeat look and feel, while generating an attractive investment return for the Company and its franchisees. The Company will evaluate the results of the test later this year and formulate formulate /for·mu·late/ (for´mu-lat) 1. to state in the form of a formula. 2. to prepare in accordance with a prescribed or specified method. a rollout plan for the system. Additionally, Denny's continues to test its new Classic Diner diner, restaurant resembling the railroad dining car that is its source. In the mid-19th cent., the first dining cars that appeared on trains were nothing more than an empty car with a fastened-down table. George M. concept, which features a nostalgic nos·tal·gi·a n. 1. A bittersweet longing for things, persons, or situations of the past. 2. The condition of being homesick; homesickness. diner atmosphere at a relatively low investment cost. Sales results in two franchise test units which opened last year have been impressive thus far, showing sales-to-investment ratios substantially higher than previous building prototypes. Denny's plans to open 15 more company-owned and franchised Classic Diners Diners can mean:
"El Pollo Loco El Pollo Loco is a fast-food restaurant chain and Mexican grilled chicken franchise. "El Pollo Loco" is Spanish for "The Crazy Chicken". Juan Francisco Ochoa started the restaurant in Guasave, Mexico, in 1975. also recorded growth in EBITDA performance during the quarter," continued Adamson. "We plan to increase the franchise development pace of this brand and resume development of company-owned restaurants this year. At Coco's and Carrows Carrows is a chain of casual dining restaurants operating in the western portion of the United States. As of 2004, the chain operates over 100 restaurants, mostly in California and with locations in New Mexico, Nevada, Oregon, Texas, and Washington. , we announced a change in leadership during the quarter. The new leadership team has already reduced the number of management layers to increase accountability The traceability of actions performed on a system to a specific system entity (user, process, device). For example, the use of unique user identification and authentication supports accountability; the use of shared user IDs and passwords destroys accountability. in the field and to enhance future profitability. Additionally, the marketing and menu strategies of Coco's and Carrows are being reviewed to assess the need and scope of potential brand positioning changes to increase market share. "The sale of the Hardee's division on April 1, 1998 enabled us to further reduce our debt load by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $223 million. With an improved capital structure, as well as substantial residual Residual See:Residual value cash resulting from the Hardee's sale and expected sale of Quincy's, Advantica is in a strong position to reinvest re·in·vest tr.v. re·in·vest·ed, re·in·vest·ing, re·in·vests To invest (capital or earnings) again, especially to invest (income from securities or funds) in additional shares. in its businesses. Specifically, we are allocating a significant portion of these proceeds to fund reimaging (1) To reinstall the operating system and applications on a computer. It implies formatting the hard disk and starting from scratch. (2) To preconfigure a new PC by overwriting the pre-installed operating system with the same or different one, but combined with of the Denny's brand. We will also pursue strategic acquisitions to fill underpenetrated markets and expand our existing brands. Most importantly Adv. 1. most importantly - above and beyond all other consideration; "above all, you must be independent" above all, most especially , Advantica will continue to focus on generating sales growth by providing customers with a restaurant experience that delivers the food quality and service they demand," concluded Adamson. On January January: see month. 7, 1998 (the "Effective Date"), the Company emerged from Chapter 11 and commenced operations as Advantica Restaurant Group, Inc. with $1.1 billion less debt, a new board of directors and newly issued common stock which began trading on the Nasdaq National Market on January 8, 1998. As of the Effective Date, the Company adopted fresh start reporting pursuant to the AICPA's Statement of Position 90-7. This method of accounting assumes that a new reporting entity is created, and accordingly, assets and liabilities are recorded at their estimated fair values, and the Company's accumulated ac·cu·mu·late v. ac·cu·mu·lat·ed, ac·cu·mu·lat·ing, ac·cu·mu·lates v.tr. To gather or pile up; amass. See Synonyms at gather. v.intr. To mount up; increase. deficit is eliminated. All financial statements for periods subsequent to the Effective Date are referred to as "Successor 1. SuccessoR - A language for distributed computing derived from SR. ["SuccessoR: Refinements to SR", R.A. Olsson et al, TR 84-3, U Arizona 1984]. 2. successor - daughter Company" and the related operating results are presented separately from those of the Company prior to the Effective Date due to the significant impact of fresh start reporting adjustments on the comparability of the periods before and after the Effective Date. The most individually significant item associated with fresh start reporting which affects comparability of the operating results of the Company is the "amortization of excess reorganization value." The related asset, which totaled $761.7 million, is being amortized over a five-year period, resulting in a significant noncash charge Noncash charge A cost, such as depreciation, depletion, and amortization, that does not involve any cash outflow. That is, this is treated as an accounting expense -- not a real expense that demands cash. to earnings. Due to the size of this noncash charge and Advantica's highly-leveraged position, the Company will continue to report EBITDA and will begin reporting net income and earnings per share in earnings release announcements on both a conventional and "adjusted" basis, which will exclude the charge for "amortization of excess reorganization value." For the 12 weeks ended April 1, 1998, the Company reported a net loss of $43.1 million, or $1.08 per common share. The adjusted net loss (which excludes amortization of excess reorganization value) for the same period was $8.2 million, or $0.20 per common share. For the one-week period ended January 7, 1998, the Company reported net income of $1.39 billion, consisting of an extraordinary gain of $612.8 million on the exchange of certain debt for equity, as well as reorganization items of $656.1 million, consisting primarily of gains and losses related to the adjustments of assets and liabilities to fair value. Net income (loss) per common share for periods prior to the Effective Date has not been presented because, due to the reorganization and implementation of fresh start reporting, it is not comparable to subsequent periods. Concept Results For purposes of providing a meaningful comparison of the Company's operating performance, the discussion of concept results and certain financial data for the quarter ended April 1, 1998 have been prepared on a "combined basis," reflecting operations of the "Predecessor predecessor - parent Company" for the week ended January 7, 1998 plus operations of the "Successor Company" for the 12-week period ended April 1, 1998. Additionally, results for the first quarter of 1997 have been restated to reflect the Hardee's division as a discontinued operation discontinued operation A segment of a business that has been abandoned or sold or for which plans for one or another of these actions have been approved. See also continuing operations. . Denny's first-quarter EBITDA increased 23% to $44.3 million compared with $36.1 million in the prior year quarter. The increase in EBITDA was largely driven by gains on sales of company-owned restaurants to franchisees and improved margins on menu items, but was partially offset by the impact of five fewer reporting days and higher labor costs versus the prior year quarter. Comparable store sales declined 2.9 percent due to lower guest counts, which were partially offset by an increase in average guest check. The Denny's system opened 14 new restaurants and sold or closed eight restaurants during the quarter. El Pollo Loco recorded a 16% increase in EBITDA to $5.0 million from $4.3 million in the prior year quarter. The increase was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to improved food costs. Comparable store sales declined 1.6 percent versus the prior year quarter, due in part to adverse weather conditions on the West Coast, where the majority of El Pollo Loco restaurants are located. The El Pollo Loco system opened five new restaurants and sold or closed one restaurant during the quarter. Coco's first-quarter EBITDA was $8.1 million compared with $8.4 million in the prior year period. The year-over-year EBITDA comparison was adversely impacted by six fewer reporting days versus the prior year quarter. Additionally, comparable store sales declined slightly by 0.2 percent during the quarter. Coco's opened one restaurant and sold or closed five restaurants during the quarter. Carrows recorded first-quarter EBITDA of $4.4 million compared with $6.2 million in the prior year quarter. The year-over-year EBITDA comparison was adversely impacted by six fewer reporting days, a 19-unit decrease in the number of company-owned restaurants and increased labor costs versus the prior year quarter. Operating results were also affected by a 1.4 percent decline in comparable store sales during the quarter. The Carrows system opened one new restaurant during the quarter. Quincy's first-quarter EBITDA of $3.2 million was essentially flat compared with the prior year quarter, despite a 9.5 percent decline in comparable store sales. Improved food costs and the closure of 71 underperforming restaurants, pursuant to Quincy's previously announced restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). plan, offset the impact of lower comparable store sales on EBITDA. Effective January 1, 1997, the Company changed its fiscal year end from December December: see month. 31 to the last Wednesday Wednesday: see week. of the calendar year. Concurrent At the same time. It implies that multiple processes are taking place simultaneously. See concurrent operation. with this change, the quarterly closing calendar was changed to a four-four-five week cycle, which generally results in four 13-week quarters during the year with each quarter ending on a Wednesday. Due to the timing of the change, the first quarter of 1997 includes more than 13 weeks of operations. Carrows and Coco's include an additional six days, Denny's an additional five days, El Pollo Loco an additional week and Quincy's an additional day. The 1998 comparable quarter consisted of 13 weeks. Advantica Restaurant Group, Inc. is one of the largest restaurant companies in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , operating approximately 2,700 moderately-priced restaurants in the mid-scale and quick-service dining segments. Advantica owns and operates the Denny's, Carrows, Coco's, El Pollo Loco and Quincy's Family Steakhouse restaurant brands. Advantica news releases, links to SEC filings and other financial information are also available, at no charge, through Business Wire's Corporate News on the Net web site at: http://www.businesswire.com/cnn/dine.htm. Certain matters discussed in this release constitute forward looking statements and involve risks, uncertainties, and other factors that may cause the actual performance of Advantica Restaurant Group, Inc., its subsidiaries and underlying concepts to be materially different from the performance indicated or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such statements. Such factors include, among others: the competitive pressures from within the restaurant industry; the level of success of the Company's operating initiatives and advertising and promotional efforts, including the initiatives and efforts specifically mentioned above; adverse publicity; changes in business strategy or development plans; terms and availability of capital; regional weather conditions; overall changes in the general economy, particularly at the retail level; and other factors from time to time set forth in the Company's SEC reports, including but not limited to the discussion in Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial in the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 1997 (and in the Company's subsequent quarterly reports on Form 10-Q Form 10-Q See 10-Q. ). -0-
ADVANTICA RESTAURANT GROUP, INC.
Statements of Consolidated Operations
(Unaudited)
Successor Predecessor Company
Company
12 Weeks One Week Quarter
(in millions, except Ended Ended Ended
per share amounts) 4/1/98 1/7/98 4/2/97
Net company sales $ 417,916 $ 35,530 $ 519,348
Franchise and license
revenue 18,793 1,602 18,895
Operating revenue 436,709 37,132 538,243
Operating expenses:
Product costs 118,704 10,031 152,680
Payroll and benefits 172,910 15,134 214,414
Amortization of
excess reorganization
value 34,922 -- --
Depreciation and
amortization of property 22,086 1,836 23,026
Amortization of other
intangibles 3,778 24 2,531
Utilities expense 18,922 1,233 21,936
Other 78,936 300 103,510
450,258 28,558 518,097
Operating income (loss) (13,549) 8,574 20,146
Other charges:
Interest and debt
expense, net 28,269 2,745 53,383
Other, net 762 (74) 545
Income (loss) before
reorg. items and taxes (42,580) 5,903 (33,782)
Reorganization items -- (656,083) 4,006
Income (loss) before
taxes (42,580) 661,986 (37,788)
Provision for (benefit
from) income taxes 500 (17,547) 816
Income (loss) from
continuing operations (43,080) 679,533 $ (38,604)
Income (loss) from
discontinued operations -- 102,540 (13,124)
Income (loss) before
extraordinary item (43,080) 782,073 (51,728)
Extraordinary item -- (612,845) --
Net income (loss) $ (43,080) $ 1,394,918 $ (51,728)
Basic and diluted
income (loss) per
share:
Net loss $ (1.08)
Average outstanding
and equivalent shares 40,000
Supplemental data:
Adjusted net income
(loss) (a) $ (8,158)
Adjusted earnings
(loss) per share (a) $ (0.20)
NOTES:
(a) Adjusted net income (loss) and adjusted earnings (loss) per
share exclude the noncash charge for amortization of excess
reorganization value which the Company has elected to amortize over a
five-year period.
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ADVANTICA RESTAURANT GROUP, INC.
Consolidated Balance Sheets
(Unaudited)
(in thousands) Successor Predecessor
Company Company
4/1/98 12/31/97
ASSETS
Current Assets
Cash and cash equivalents $ 228,262 $ 54,079
Restricted investments securing
in-substance defeased debt 17,099 --
Other 86,546 321,200
331,907 375,279
Property and equipment, net 769,422 758,373
Restricted investments securing
in-substance defeased debt 184,614 --
Reorganization value in excess
of amounts allocable to identified
assets, net 723,379 --
Other assets 288,986 305,416
Total Assets $ 2,298,308 $ 1,439,068
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Current liabilities
Current maturities of notes and
debentures $ 23,314 $ 37,572
Current maturities of capital lease
obligations 19,347 19,657
Current maturities of in-substance
defeased debt 12,548 --
Accounts payable and other accrued
liabilities 379,659 324,464
434,868 381,693
Long-term liabilities
Long-term debt, less current maturities 1,065,670 598,236
In-substance defeased debt, less current
maturities 186,389 --
Other 237,134 209,189
1,489,193 807,425
Liabilities subject to compromise -- 1,612,400
Total liabilities 1,924,061 2,801,518
Shareholders' Equity (Deficit) 374,247 (1,362,450)
Total Liabilities and Shareholders'
Equity (Deficit) $ 2,298,308 $ 1,439,068
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ADVANTICA RESTAURANT GROUP, INC.
Results by Operating Entity
(Unaudited)
Quarter Quarter
(in millions) Ended Ended
4/1/98 4/2/97
Revenue:
Denny's $ 281.2 315.0
Coco's 65.3 71.5
Carrows 46.3 55.6
El Pollo Loco 31.3 32.0
Quincy's 49.7 64.1
Total revenue $ 473.8 $ 538.2
Operating income (loss):
Denny's (b) $ 27.8 $ 24.0
Coco's 4.4 4.3
Carrows 1.5 2.8
El Pollo Loco 3.3 2.9
Quincy's 0.3 0.3
Corporate and other (7.4) (14.2)
Operating income before
amortization of
excess reorganization value 29.9 20.1
Amortization of excess
reorganization value 34.9 --
Total operating income
(loss) $ (5.0) $ 20.1
EBITDA (c):
Denny's (b) $ 44.3 36.1
Coco's 8.1 8.4
Carrows 4.4 6.2
El Pollo Loco 5.0 4.3
Quincy's 3.2 3.3
Corporate and other (7.3) (12.6)
Total EBITDA $ 57.7 $ 45.7
Refranchising gains:
Denny's 7.7 0.1
Coco's -- --
Carrows -- --
El Pollo Loco -- --
Total gains $ 7.7 $ 0.1
NOTES:
(b) Operating income and EBITDA include refranchising gains.
(c) EBITDA is defined by the Company as operating income before
depreciation, amortization and charges for restructuring and
impairment.
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ADVANTICA RESTAURANT GROUP, INC.
Statistical Data by Operating Entity
(Unaudited)
Comparable Store Sales (company-owned) Quarter
(increase/(decrease) vs. prior year) Ended
4/1/98
Denny's (2.9%)
Coco's (0.2%)
Carrows (1.4%)
El Pollo Loco (1.6%)
Quincy's (9.5%)
Average Guest Check (company-owned)
(comparable store basis)
Quarter Quarter
Ended Ended Increase/
4/1/98 4/2/97 (Decrease)
Denny's $ 5.74 $ 5.39 6.5%
Coco's $ 6.99 $ 6.60 5.9%
Carrows $ 6.79 $ 6.37 6.6%
El Pollo Loco $ 6.82 $ 6.58 3.6%
Quincy's $ 6.11 $ 6.30 (3.0%)
Average Unit Sales Quarter Quarter
(in thousands) Ended Ended Increase/
4/1/98 4/2/97 (Decrease)
Denny's
Company-owned $ 302.9 $ 336.3 (9.9%)
Franchised $ 253.5 $ 276.3 (8.3%)
Coco's
Company-owned $ 364.9 $ 385.6 (5.4%)
Franchised $ 327.1 NM NM
Carrows
Company-owned $ 327.9 $ 349.3 (6.1%)
Franchised $ 284.2 NM NM
El Pollo Loco
Company-owned $ 281.2 $ 300.0 (6.3%)
Franchised $ 202.7 $ 220.9 (8.2%)
Quincy's $ 308.2 $ 322.5 (4.4%)
NM = Not Meaningful
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ADVANTICA RESTAURANT GROUP, INC.
Statistical Data by Operating Entity
(Unaudited)
Restaurant Units 4/1/98 4/2/97
Denny's
Company-owned 877 891
Franchised 763 698
Licensed 18 21
1,658 1,610
Coco's
Company-owned 176 184
Franchised 18 5
Licensed 295 281
489 470
Carrows
Company-owned 139 158
Franchised 16 1
155 159
El Pollo Loco
Company-owned 99 95
Franchised 148 139
Licensed 4 10
251 244
Quincy's 128 199
Hardee's -- 580
Total 2,681 3,262
CONTACT: Investor Contact: Larry Lar´ry n. 1. Same as Lorry, or Lorrie. Gosnell 864-597-8658 or Media Contact: Karen Karen Any member of a variety of tribal peoples of southern Myanmar (Burma). Constituting the second largest minority in Myanmar, the Karen are not a unitary group in any ethnic sense, as they differ among themselves linguistically, religiously, and economically. Randall Randall may refer to the following: In places:
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