Angelo and Maxie's Reports Third Quarter Results, Announces Series A Preferred Stock Dividend and Share Repurchase Program and Provides Strategic Alternatives Review Update.Business Editors CHICAGO--(BUSINESS WIRE)--Nov. 8, 2002 Angelo Angelo externally austere but inwardly violent. [Br. Lit.: Measure for Measure] See : Hypocrisy Angelo asked by Isabella to cancel her brother’s death sentence, Angelo agrees if she will yield herself to him. [Br. and Maxie's, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :AGMX AGMX Agammaglobulinemia, X-Linked ) has reported the 38 Chart House restaurants and one Peohe's restaurant that were sold as of July July: see month. 30, 2002 as discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. in its financial statements for the third quarter of 2002. Accordingly, the comparative statements of operations for the 2001 periods have been reclassified. Total revenues for the thirteen-week period ended September September: see month. 30, 2002, were $5.6 million, as compared with total revenues of $6.3 million in the comparative period of 2001. The decrease in revenues is primarily due to the disposition of two restaurants in the third and fourth quarters of 2001. Same store sales Same Store Sales A statistic used in retail industry analysis. It compares sales of stores that have been open for a year or more. Notes: This statistic allows investors to determine what portion of new sales has come from sales growth and what portion from the opening of for the thirteen-week period ended September 30, 2002, increased by 4.7% compared with the comparative period of 2001. For the thirteen-week period ended September 30, 2002, the Company incurred a net loss applicable to common shares of ($1,203,000), or ($0.61) net loss per common share. The net loss applicable to common shares for the comparative period of 2001 was ($14,482,000), or ($7.35) net loss per common share. Results for the 2002 quarter include asset impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. and restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of $497,000 and a reduction in the previously estimated loss on sale of discontinued operations of $1,092,000. Results for the 2001 quarter included asset impairment and restructuring charges of $5,520,000 for the evaluation of the carrying values Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of long-lived long-lived adj. 1. Having a long life: a long-lived aunt. 2. Lasting a long time; persistent: a long-lived rumor. 3. assets, a $5,380,000 increase in the valuation allowance related to the Company's deferred tax asset and a charge of $942,000 for the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of deferred financing costs as a consequence of a material modification of the Company's debt. For the thirty nine-week period ended September 30, 2002, the Company incurred a net loss applicable to common shares of ($12,716,000) or ($6.42) net loss per common share. The net loss applicable to common shares for the comparative period of 2001 was ($18,997,000), or ($9.65) net loss per common share. Kenneth R. Posner Prominent people with the surname Posner or Pozner include:
A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: in this particularly challenging revenue environment. Although disappointed with the revenues for the quarter, our continued vigilance VIGILANCE. Proper attention in proper time. 2. The law requires a man who has a claim to enforce it in proper time, while the adverse party has it in his power to defend himself; and if by his neglect to do so, he cannot afterwards establish such claim, the over restaurant costs resulted in an acceptable level of profitability at the restaurants in what is typically our weakest quarter of the year." The Company also announced that its Board of Directors has declared a dividend on each share of the Company's Series A Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. (OTCBB:AGMXP) outstanding on November November: see month. 12, 2002. Holders of record on that date will receive a dividend of $.1125 per share, payable in cash on December December: see month. 2, 2002. The Company further announced that its Board of Directors has authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: a program to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. up to 1,000,000 shares of the Company's Series A Preferred Stock. The repurchase of the Company's Series A Preferred Stock will be accomplished through periodic purchases at prevailing prices on the open market. The Company will fund the repurchases with existing cash resources. The repurchased shares are expected to be retained as treasury stock to be used for corporate purposes. The repurchases may be commenced or suspended sus·pend v. sus·pend·ed, sus·pend·ing, sus·pends v.tr. 1. To bar for a period from a privilege, office, or position, usually as a punishment: suspend a student from school. at any time without prior notice, depending on market conditions and other factors. The Company had 4,134,736 shares of preferred stock outstanding as of November 8, 2002. Mr. Posner concluded, "We believe the Company's preferred stock is undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. and that the repurchase of shares represents a good investment and an appropriate use of our cash resources." As previously reported, subsequent to the sale of the Chart House and Peohe's restaurants, the Company has been continuing its review of strategic alternatives, focusing on a sale of the entire Company. Although the Company has engaged in discussions with potential interested parties, no definitive agreements have been reached and no assurances can be given that a sale will be consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. . Headquartered in Chicago Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. , Angelo and Maxie's, Inc. currently operates six Angelo and Maxie's Steakhouses in the continental United States United States territory, including the adjacent territorial waters, located within North America between Canada and Mexico. Also called CONUS. . Certain of the statements contained in this press release may be forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include financial projections, estimates and statements regarding plans, objectives and expectations of the Company and its management. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Information on significant potential risks and uncertainties is set forth more fully in the Company's filings with the Securities and Exchange Commission, including quarterly reports on Form 10-Q Form 10-Q See 10-Q. , reports on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. and annual reports 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. .
- table follows -
ANGELO AND MAXIE'S, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Reclassified
Thirteen weeks Thirteen weeks
ended ended
September 30, September 24,
2002 2001
--------------------------------
(See Note 1)
Revenues $ 5,634 $ 6,316
--------------------------------
Operating costs and expenses:
Cost of sales 2,041 2,415
Restaurant labor 1,442 1,975
Other operating costs 1,077 1,399
Rent 681 797
--------------------------------
Total restaurant costs 5,241 6,586
Selling, general and
administrative expenses 597 114
Depreciation and amortization 182 536
Impairment of assets and
restructuring charges 497 5,520
Pre-opening costs - -
(Income) loss on disposal of assets - (40)
--------------------------------
Total restaurant and operating costs 6,517 12,716
--------------------------------
Loss from operations (883) (6,400)
Interest expense, net 580 967
Other income (51) (45)
--------------------------------
Loss from continuing operations
before income taxes and
extraordinary item (1,412) (7,322)
Provision for income taxes - 5,380
--------------------------------
Loss from continuing operations
before extraordinary item (1,412) (12,702)
--------------------------------
Discontinued operations:
Income (loss) from operations (649) (625)
Gain (loss) on sale 1,092 -
--------------------------------
Income (loss) from discontinued
operations 443 (625)
--------------------------------
Net loss before extraordinary item (969) (13,327)
Extraordinary item, material
modification of debt - 942
--------------------------------
Net loss $ (969) $ (14,269)
Preferred dividends 234 213
--------------------------------
Net loss applicable to common shares $ (1,203) $ (14,482)
================================
Net income (loss) per common share -
Basic and diluted:
Continuing operations, before
extraordinary item $ (0.83) $ (6.55)
Discontinued operations .22 (0.32)
Extraordinary item, material
modification of debt - (0.48)
--------------------------------
$ (0.61) $ (7.35)
================================
Weighted-average shares outstanding 1,982 1,971
Reclassified
Thirty-nine Thirty-nine
weeks ended weeks ended
September 30, September 24,
2002 2001
--------------------------------
(See Note 1)
Revenues $ 19,690 $ 21,318
--------------------------------
Operating costs and expenses:
Cost of sales 7,044 7,984
Restaurant labor 4,802 6,251
Other operating costs 3,851 4,044
Rent 1,763 2,308
--------------------------------
Total restaurant costs 17,460 20,587
Selling, general and
administrative expenses 915 902
Depreciation and amortization 1,037 1,693
Impairment of assets and
restructuring charges 7,558 5,520
Pre-opening costs - 597
(Income) loss on disposal of assets 2 969
--------------------------------
Total restaurant and operating costs 26,972 30,268
--------------------------------
Loss from operations (7,282) (8,950)
Interest expense, net 2,617 3,612
Other income (151) (1,035)
--------------------------------
Loss from continuing operations
before income taxes and
extraordinary item (9,748) (11,527)
Provision for income taxes - 5,380
--------------------------------
Loss from continuing operations
before extraordinary item (9,748) (16,907)
--------------------------------
Discontinued operations:
Income (loss) from operations 302 (935)
Gain (loss) on sale (2,589) -
--------------------------------
Income (loss) from discontinued
operations (2,287) (935)
--------------------------------
Net loss before extraordinary item (12,035) (17,842)
Extraordinary item, material
modification of debt - 942
--------------------------------
Net loss $ (12,035) $ (18,784)
Preferred dividends 681 213
--------------------------------
Net loss applicable to common shares $ (12,716) $ (18,997)
================================
Net income (loss) per common share -
Basic and diluted:
Continuing operations, before
extraordinary item $ (5.27) $ (8.69)
Discontinued operations (1.15) (0.48)
Extraordinary item, material
modification of debt - (0.48)
--------------------------------
$ (6.42) $ (9.65)
================================
Weighted-average shares outstanding 1,980 1,969
Note 1 - In May 2002, the Company announced its intention to sell 38 Chart House restaurants and one Peohe's restaurant to a third party. The Company consummated the sale as of July 30, 2002. The operations for these restaurants have been presented as discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: , and the Company has reclassified its Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: Statements of Operations for the thirteen and thirty-nine weeks ended September 24, 2001, as a result of implementing Statement of Financial Accounting Standards No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets." |
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