Applebee's International Reports 23 Percent Increase in Third-Quarter Diluted Earnings Per Share of 37 Cents.Business Editors OVERLAND PARK Overland Park, city (1990 pop. 111,790), Johnson co., NE Kans., a residential suburb of Kansas City; inc. 1960. There is printing and publishing, and the manufacture of apparel, aircraft parts, cement, prepared foods, salt, chemicals, marine accessories, and signs. , Kan Kan, river, China: see Gan. .--(BUSINESS WIRE)--Oct. 30, 2002 Applebee's Applebee’s International, Inc. (NASDAQ: APPB) is a United States company which develops, franchises, and operates the Applebee's Neighborhood Grill and Bar restaurant chain. As of Feb. International, Inc. (Nasdaq:APPB APPB Array Processor with Pipelined Bus APPB Application Builder ) today reported net earnings of $21.0 million, or 38 cents and 37 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. on a basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis, respectively, for the third quarter ended September September: see month. 29, 2002. This represents an increase in earnings per share of 27 percent and 23 percent on a basic and diluted basis, respectively, as compared with 30 cents per share on both a basic and diluted basis for the third quarter of 2001. System-wide comparable sales exceeded the company's expectation of at least 2 percent, increasing 2.8 percent for the third quarter, the 17th consecutive quarter of comparable sales growth. Comparable sales increased 3.1 percent for franchise restaurants and 1.7 percent for company restaurants. System-wide comparable sales for the year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. period through September increased 3.1 percent, with franchise and company restaurant comparable sales up 3.6 percent and 1.5 percent, respectively. The company also reported comparable sales for the September fiscal period, comprised of the five weeks ended September 29, 2002. System-wide comparable sales increased 4.7 percent, reflecting a 5.0 percent increase for franchise restaurants and a 3.6 percent increase for company restaurants. The increase in comparable sales for company restaurants reflects an increase in guest traffic of 5.0 to 5.5 percent, offset in part by a lower average check. In addition, the company reported comparable sales for the October October: see month. fiscal period, comprised of the four weeks ended October 27, 2002. System-wide comparable sales increased 4.1 percent, including a 4.3 percent increase for franchise restaurants and a 3.3 percent increase for company restaurants. The increase in comparable sales for company restaurants reflects an increase in guest traffic of 2.0 to 2.5 percent as well as a higher average check. Lloyd L. Hill, chairman and chief executive officer, said, "We were excited that system-wide comparable sales for the quarter exceeded our expectations, reflecting a strong value proposition with our All You Can Eat Riblets A riblet is the usually boneless meat from the end of a rib, sometimes referred to as a rib tip. Riblets can be produced from beef, lamb, or veal, but the term is most often applied to pork rib tips. The tips are trimmed from the lower ribs when cutting a St. promotion in August and September. Our strong traffic results for the quarter and October are especially encouraging given uncertainty surrounding sur·round tr.v. sur·round·ed, sur·round·ing, sur·rounds 1. To extend on all sides of simultaneously; encircle. 2. To enclose or confine on all sides so as to bar escape or outside communication. n. the overall economy." Mr. Hill continued, "We believe that our To Go initiative will continue to contribute to driving sales by leveraging our position as the most conveniently located concept in casual dining. The roll-out of Phase I of this initiative was completed during the quarter, and we are pleased with the initial results which are exceeding our expectations. In addition, we currently have over 150 restaurants testing a variety of curbside curb·side n. 1. The side of a pavement or street that is bordered by a curb. 2. A sidewalk. adj. Located, operating, or occurring at or along the sidewalk or curb: alternatives. We will launch the curbside phase of our To Go initiative next year to continue building sales momentum surrounding this key convenience occasion for our guests." Mr. Hill concluded, "We believe that the strategies we outlined in May are on target to drive future sales growth. These strategies include the continued improvement of our food and menu, coupled with compelling promotions, effective advertising campaigns and our sizable siz·a·ble also size·a·ble adj. Of considerable size; fairly large. siz  a·ble·ness n. network television presence. Our operations excellence
initiatives surrounding supply chain, technology and people are gaining
momentum. We remain optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about our future." Other results for the third quarter and year-to-date periods ended September 29, 2002 included: -- Net earnings for the 39-week period ended September 29, 2002 were $62.7 million, or $1.12 and $1.10 per share, respectively, on a basic and diluted basis. This compares to net earnings in the same period of 2001 of $51.4 million, or 93 cents and 91 cents per share, respectively, on a basic and diluted basis. This represents an increase in basic and diluted earnings per share of 20 percent and 21 percent, respectively. -- System-wide sales for the Applebee's concept were a record $822.6 million for the third quarter, an increase of 10 percent over the prior year. System-wide sales for the 39-week period ended September 29, 2002 exceeded $2.4 billion, an increase of 11 percent. -- Operating revenues (comprised of company restaurant sales and franchise income) increased 11 percent for the third quarter and 10 percent for the year-to-date period. -- Applebee's ended the quarter with 1,458 restaurants system-wide (329 company and 1,129 franchise restaurants). During the third quarter of 2002, there were 37 new Applebee's restaurants opened system-wide, including 11 company and 26 franchised restaurants. -- As of September 29, 2002, the company had total debt outstanding of $39 million, with over $110 million available under its revolving credit facility. -- The company repurchased 835,000 shares of common stock in the third quarter at an average price of $21.31 for an aggregate cost of $17.8 million. During 2002, the company has repurchased 1,210,000 shares at an average price of $21.58 for an aggregate cost of $26.1 million. As of September 29, 2002, $69.5 million remains available under previous authorizations. BUSINESS OUTLOOK The company also provided guidance as to its business outlook for the remainder of fiscal year 2002. -- The company expects to complete the previously announced acquisition of 21 franchise restaurants located in the Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. , D.C. area from an existing franchisee in early November November: see month. . -- Excluding the cost of this acquisition, capital expenditures are now expected to be between $63 and $68 million in 2002. -- Consistent with current analyst estimates, diluted earnings per share for fiscal year 2002 are now expected to be in the range of $1.44 to $1.45, excluding any impact of additional stock repurchases Stock repurchase A firm's repurchase of outstanding shares of its common stock. . A conference call to review the third quarter 2002 results and the current business outlook will be held on Thursday Thursday: see week. morning, October 31, 2002, at 10:00 a.m. Central Time (11:00 a.m. Eastern Time). The conference call will be broadcast live over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the and a replay will be available shortly after the call on the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of the company's website (www.applebees.com). Applebee's International, Inc., headquartered in Overland Park, Kan., develops, franchises and operates restaurants under the Applebee's Neighborhood Grill Grill may refer to: In food:
Certain statements in this release are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. and based on current expectations. There are several risks and uncertainties that could cause actual results to differ materially from those described, including but not limited to the ability of the company and its franchisees to open and operate additional restaurants profitably, the continued growth of its franchisees and its ability to attract and retain qualified franchisees, the impact of intense competition in the casual dining segment of the restaurant industry, and its ability to control restaurant operating costs operating costs npl → gastos mpl operacionales which are impacted by market changes, minimum wage and other employment laws, food costs and inflation. For additional discussion of the principal factors that could cause actual results to be materially different, the reader is referred to the company's current report 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. filed with the Securities and Exchange Commission on July July: see month. 16, 2002. The company disclaims any obligation to update these 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. .
APPLEBEE'S INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(in thousands, except per share amounts)
13 Weeks Ended 39 Weeks Ended
-------------- --------------
Sept. 29, Sept. 30, Sept. 29, Sept. 30,
2002 2001 2002 2001
---- ---- ---- ----
Revenues:
Company restaurant
sales.................$182,807 $164,238 $536,673 $486,416
Franchise income....... 26,033 23,787 76,357 69,906
------- ------- ------- -------
Total operating
revenues............ 208,840 188,025 613,030 556,322
------- ------- ------- -------
Cost of company
restaurant sales:
Food and beverage...... 47,765 44,489 142,245 131,427
Labor.................. 60,054 52,864 176,392 155,297
Direct and occupancy... 47,009 41,459 134,172 123,322
Pre-opening expense.... 792 632 1,432 899
------- ------- ------- -------
Total cost of company
restaurant sales.... 155,620 139,444 454,241 410,945
------- ------- ------- -------
General and adminis-
trative expenses....... 20,049 19,197 58,848 54,448
Amortization of intangible
assets................. 95 1,463 285 4,388
Loss on disposition of
restaurants and
equipment.............. 458 329 1,479 1,087
------- ------- ------- -------
Operating earnings...... 32,618 27,592 98,177 85,454
------- ------- ------- -------
Other income (expense):
Investment income...... 346 479 1,124 1,251
Interest expense....... (414) (1,831) (1,602) (6,231)
Other income........... 513 322 1,096 797
------- ------- ------- -------
Total other income
(expense)........... 445 (1,030) 618 (4,183)
------- ------- ------- -------
Earnings before income
taxes.................. 33,063 26,562 98,795 81,271
Income taxes............ 12,068 9,776 36,060 29,908
------- ------- ------- -------
Net earnings............$ 20,995 $ 16,786 $ 62,735 $ 51,363
======= ======= ======= =======
Basic net earnings per
common share (a).......$ 0.38 $ 0.30 $ 1.12 $ 0.93
======= ======= ======= =======
Diluted net earnings per
common share (a).......$ 0.37 $ 0.30 $ 1.10 $ 0.91
======= ======= ======= =======
Basic weighted average
shares outstanding
(a).................... 55,654 55,366 55,801 55,470
======= ======= ======= =======
Diluted weighted average
shares outstanding
(a).................... 56,714 56,821 57,119 56,736
======= ======= ======= =======
(a) All earnings per share and weighted average share information
reflects a three-for-two stock split effective at the close of
business on June 11, 2002.
The following table sets forth, for the periods indicated, information derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from the Company's 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 earnings expressed as a percentage of total operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. , except where otherwise noted. Percentages may not add due to rounding.
13 Weeks Ended 39 Weeks Ended
-------------- --------------
Sept. 29, Sept. 30, Sept. 29, Sept. 30,
2002 2001 2002 2001
---- ---- ---- ----
Revenues:
Company restaurant
sales................. 87.5% 87.3% 87.5% 87.4%
Franchise income....... 12.5 12.7 12.5 12.6
------- ------- ------- -------
Total operating
revenues............ 100.0% 100.0% 100.0% 100.0%
======= ======= ======= =======
Cost of sales (as a
percentage of company
restaurant sales):
Food and beverage...... 26.1% 27.1% 26.5% 27.0%
Labor.................. 32.9 32.2 32.9 31.9
Direct and occupancy... 25.7 25.2 25.0 25.4
Pre-opening expense.... 0.4 0.4 0.3 0.2
------- ------- ------- -------
Total cost of sales.. 85.1% 84.9% 84.6% 84.5%
======= ======= ======= =======
General and administrative
expenses............... 9.6% 10.2% 9.6% 9.8%
Amortization of intangible
assets................. -- 0.8 -- 0.8
Loss on disposition of
restaurants and
equipment.............. 0.2 0.2 0.2 0.2
------- ------- ------- -------
Operating earnings...... 15.6 14.7 16.0 15.4
------- ------- ------- -------
Other income (expense):
Investment income...... 0.2 0.3 0.2 0.2
Interest expense....... (0.2) (1.0) (0.3) (1.1)
Other income........... 0.2 0.2 0.2 0.1
------- ------- ------- -------
Total other income
(expense)........... 0.2 (0.5) 0.1 (0.8)
------- ------- ------- -------
Earnings before income
taxes.................. 15.8 14.1 16.1 14.6
Income taxes............ 5.8 5.2 5.9 5.4
------- ------- ------- -------
Net earnings............ 10.1% 8.9% 10.2% 9.2%
======= ======= ======= =======
APPLEBEE'S INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands, except share amounts)
September 29, December 30,
2002 2001
---- ----
ASSETS
Current assets:
Cash and cash equivalents.....$ 7,522 $ 22,048
Short-term investments, at
market value (amortized cost
of $478 in 2002 and
$677 in 2001)................ 504 699
Receivables (less allowance
for bad debts of $5,443 in
2002 and $4,343 in 2001)..... 25,207 22,827
Inventories................... 7,070 10,165
Prepaid and other current
assets....................... 13,782 12,260
------- -------
Total current assets....... 54,085 67,999
Property and equipment, net.... 353,730 330,924
Goodwill, net.................. 78,614 78,614
Franchise interest and rights,
net........................... 1,551 1,800
Other assets................... 20,864 21,074
------- -------
$ 508,844 $ 500,411
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term
debt.........................$ 375 $ 43
Notes payable................. 3,500 --
Accounts payable.............. 28,106 22,196
Accrued expenses and other
current liabilities.......... 63,894 71,551
Accrued dividends............. -- 2,977
Accrued income taxes.......... 1,919 979
------- -------
Total current liabilities... 97,794 97,746
------- -------
Non-current liabilities:
Long-term debt - less current
portion...................... 35,192 74,525
Franchise deposits............ 1,182 1,515
Deferred income taxes......... 2,026 1,442
------- -------
Total non-current
liabilities................ 38,400 77,482
------- -------
Total liabilities........... 136,194 175,228
------- -------
Stockholders' equity:
Preferred stock - par value
$0.01 per share: authorized -
1,000,000 shares; no shares
issued....................... -- --
Common stock - par value $0.01
per share: authorized -
125,000,000 shares;
issued - 72,336,788 shares... 723 723
Additional paid-in capital.... 186,055 180,802
Retained earnings............. 417,652 354,950
Accumulated other comprehensive
income, net of income
taxes........................ 17 14
------- -------
604,447 536,489
Treasury stock - 17,123,011
shares in 2002 and 16,522,099
shares in 2001, at cost...... (231,797) (211,306)
------- -------
Total stockholders'
equity.................... 372,650 325,183
------- -------
$ 508,844 $ 500,411
======= =======
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion