BOSTON CHICKEN REPORTS 96% INCREASE IN THIRD QUARTER NET INCOME; EARNINGS PER SHARE OF $0.26.GOLDEN, Colo.--(BUSINESS WIRE)--Oct. 30, 1996--Boston Chicken, Inc. (Nasdaq-NMS: BOST BOST Boston National Historic Park (US National Park Service) BOST Built Off-Chip Self Test ) today reported financial results for its third quarter and year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. ended October October: see month. 6, 1996. Highlights include: -0- Third Quarter -- Company revenue increased 92% to $74,310,000 from $38,671,000. -- Net income increased 96% to $17,300,000 from $8,814,000. -- Earnings per share increased 53% to $0.26 from $0.17. -- Boston Market Boston Market (known before 1995 as Boston Chicken), headquartered in Golden, Colorado, is a chain of American fast-food restaurants. Founded in December 1985 in Newton, Massachusetts, the chain grew rapidly in the early and mid-1990s, filed bankruptcy in the late 1990s, and (R) systemwide gross revenue increased 46% to $288,850,000 from $197,496,000. Year-to-date -- Company revenue increased 64% to $186,218,000 from $113,578,000. -- Net income increased 109% to $48,865,000 from $23,350,000. -- Earnings per share increased 57% to $0.74 from $0.47. -- Boston Market systemwide gross revenue increased 55% to $861,120,000 from $556,318,000. -0- Scott Beck, BCI BCI Bat Conservation International BCI Brain-Computer Interface BCI Business Continuity Institute BCI Business Cycle Indicators BCI Banco de Credito e Inversiones (Chilean bank) BCI Bell Canada International co-chairman and chief executive officer, said, "This was truly a quarter full of significant achievement. Store performance -- at both the top and bottom lines -- reached record levels; our area developers committed to build 2,700 more Boston Market stores; and $75 million in new private equity was raised at the financed area developer level to partially finance this expanded store development schedule." "Mirroring the accomplishments of Boston Market, Einstein/Noah Bagel Corp. is off to a great start. During the quarter, ENBC completed a successful initial public offering and related financings, raising $86 million. Development of both Einstein Ein·stein , Albert 1879-1955. German-born American theoretical physicist whose special and general theories of relativity revolutionized modern thought on the nature of space and time and formed a theoretical base for the exploitation of atomic energy. Bros BROS Brothers BROS Benefits and Retirement Operations Section (King County, Washington) BROS Barnes and Richmond Operatic Society (London, UK) . Bagels and Noah's New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Bagels stores is on target, and beginning this quarter, ENBC has establishing solid earnings momentum," Beck added. ENBC is a majority-owned subsidiary majority-owned subsidiary A firm in which more than 50% of outstanding voting stock is owned by the parent company. of Boston Boston, town, England Boston, town (1991 pop. 26,495), E central England, on the Witham River. Boston's fame as a port dates from the 13th cent., when it was a Hanseatic port trading wool and wine. Having recovered from a decline in the 18th and 19th cent. Chicken, Inc. Larry Lar´ry n. 1. Same as Lorry, or Lorrie. Zwain, president and chief executive officer of Boston Market, said, "Gross weekly per store average revenue increased 5.7% over last year to $24,716, driven by the success of our Boston Carver carver /car·ver/ (kahr´ver) a tool for producing anatomic form in artificial teeth and dental restorations. carver (carving instrument), n (TM) sandwiches and the Boston Market Feast feast, commemorative banquet symbolizing communal unity. Generally associated with primitive rituals and later with religious practices, feasts may also commemorate such events as births, marriages, harvests, and deaths. . Margins across the system continued to increase despite chicken costs being at a ten-year high. In addition, our company stores in the Philadelphia Philadelphia, ancient cities Philadelphia, name of several ancient cities. One was in Lydia, W Asia Minor (now W Turkey). At the foot of Mt. Tmolus and near the location of modern Alaşehir, it was founded in the 2d cent. B.C. area, which now number 95, also continue to perform well, achieving store-level cash flow margins of 18.9% in the third quarter." "We see additional opportunities to further increase store-level cash flow throughout the system as we and our area developers continue to implement productivity and labor-saving La´bor-sav`ing a. 1. Saving labor; adapted to supersede or diminish the labor of men; designed to replace or conserve human and especially manual labor; as, labor-saving machinery; initiatives. Operationally, we are very focused on implementing our F.A.S.T. (Faster Average Service Times) Track(TM) service system, which will be in all new Boston New Boston is the name of some places in the United States of America:
v. ret·ro·fit·ted or ret·ro·fit, ret·ro·fit·ting, ret·ro·fits v.tr. 1. To provide (a jet, automobile, computer, or factory, for example) with parts, devices, or equipment not in of existing stores commencing in early 1997. We believe the F.A.S.T. Track system will significantly improve customer service times and allow us to more aggressively market our brands," Zwain said. Mark Stephens, BCI vice chairman and chief financial officer added, "BCI has contributed to the F.A.S.T. Track initiative, along with our area developers, by establishing 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 $15 million in equipment made obsolete OBSOLETE. This term is applied to those laws which have lost their efficacy, without being repealed, 2. A positive statute, unrepealed, can never be repealed by non-user alone. 4 Yeates, Rep. 181; Id. 215; 1 Browne's Rep. Appx. 28; 13 Serg. & Rawle, 447. by F.A.S.T. Track. The earnings impact of the program is offset by the $14.8 million gain BCI recognized as a result of the completion of Einstein/Noah Bagel Corp.'s initial public offering in August 1996." "The strength of store economics and the success of operating initiatives at Boston Market have enabled area developers to continue to attract new capital. During the quarter, Market Partners, L.L.C., a private fund formed by new and existing investors in Boston Market area developers, completed a $75 million private placement that will be used to make equity investments in area developers. Boston Market area developers issued 8% non-convertible 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. . In addition, fund investors have warrants to purchase a fixed amount of area developer common stock and warrants to purchase Boston Chicken common stock. The Market Partners fund, which raised 50% more capital than originally contemplated, was designed to be very attractive to both area developers and investors," Stephens concluded. Boston Chicken, Inc. franchises and operates Boston Market food service stores that specialize spe·cial·ize v. 1. To limit one's profession to a particular specialty or subject area for study, research, or treatment. 2. To adapt to a particular function or environment. in fresh, convenient meals featuring homestyle entrees, fresh vegetables, salads and side dishes side dish n. A dish served as an accompaniment to the main course. Noun 1. side dish - a dish that is served with, but is subordinate to, a main course entremets, side order , including mashed potatoes n. pl. 1. Potatoes which have been boiled and mashed to a pulpy consistency, usu. with sparing addition of milk, salt, butter, or other flavoring. It is a popular accompaniment to a meat course [U.S., 1900's], providing bulk and calories to a meal. made from scratch. Boston Market combines the freshness and quality of traditional home cooking with convenience and value. As of October 6, there were 1023 Boston Market stores in 38 states and the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). . As of October 6, Einstein/Noah Bagel Corp. operated and franchised 241 bagel stores in 19 states primarily under the Einstein Bros. Bagels and Noah's New York Bagels brand names. Certain statements in this release constitute "forward-looking" statements and involve risks, uncertainties, and other factors which may cause the actual performance of Boston Chicken, its area developers, Boston Market stores, and Einstein/Noah Bagel Corp. to be materially different from the performance expressed or implied by such statements. Such factors include, among others: competition; success of operating initiatives, including the implementation of the F.A.S.T. Track system; area developers adherence adherence /ad·her·ence/ (ad-her´ens) the act or condition of sticking to something. immune adherence to development schedules; advertising and promotional efforts; adverse publicity; changes in business strategy or development plans; availability and terms of capital; regional weather conditions; and other factors set forth in the Company's 10-K. The success of the companies is dependent on their respective area developers and franchisees and the manner in which they operate and develop their stores. -0-
BOSTON CHICKEN, INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
(In thousands, except per share data)
(Unaudited)
Three
Quarter Ended Quarters Ended
________________ ________________
Oct. 1, Oct. 6, Oct. 1, Oct. 6,
1995 1996 1995 1996
_______ _______ _______ _______
Revenue:
Royalties and
franchise-related
fees............... $26,566 $45,646 $73,163 $130,816
Company-operated
stores............. 12,105 28,664 40,415 55,402
______ ______ ______ _______
Total revenue...... 38,671 74,310 113,578 186,218
Cost and Expenses:
Cost of products
sold............... 4,510 10,567 15,111 20,515
Salaries and
benefits........... 6,930 12,862 22,958 29,699
General and
administrative..... 8,350 31,368 28,689 58,084
______ ______ ______ ______
Total cost and
expenses......... 19,790 54,797 66,758 108,298
______ ______ ______ ______
Income from Operations 18,881 19,513 46,820 77,920
Other Income (Expense):
Interest expense, net (4,593) (3,803) (9,090) (10,138)
Gain on sale of
subsidiary's stock - 14,778 - 14,778
Other income
(expense), net....... (56) 4 (22) 316
______ ______ ______ ______
Total other
income (expense) (4,649) 10,979 (9,112) 4,956
______ ______ ______ ______
Income Before
Income Taxes and
Minority Interest.. 14,232 30,492 37,708 82,876
Income Taxes........... 5,418 11,194 14,358 30,992
Minority Interest in
Earnings of
Subsidiary......... - (1,998) - (3,019)
_______ _______ _______ ________
Net Income............. $ 8,814 $17,300 $23,350 $ 48,865
====== ====== ====== ======
Net Income
per Common and
Equivalent Share..... $ 0.17 $ 0.26 $ 0.47 $ 0.74
====== ====== ====== ======
Weighted Average
Number of Common and
Equivalent Shares
Outstanding.... ..... 50,863 67,416 49,695 66,091
====== ====== ====== ======
Note: This information includes the results of operations for the
Company's majority owned subsidiaries; Einstein/Noah Bagel Corp. and
Mid-Atlantic Restaurant Systems, L.P.
BOSTON CHICKEN, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
7/14/96 10/06/96
________ _________
ASSETS
______
Current Assets:
Cash and cash equivalents........... $110,932 $ 59,358
Accounts receivable, net............ 18,002 18,907
Due from affiliates................. 13,741 10,462
Prepaid expenses and other
current assets.................... 4,088 2,680
Deferred income taxes............... 3,720 8,534
_______ _______
Total current assets.............. 150,483 99,941
Property and Equipment, net........... 354,429 358,567
Notes Receivable...................... 622,868 710,111
Deferred Financing Costs, net ........ 19,027 20,504
Excess Purchase Price Over Fair
Value of Net Assets Acquired, net... 171,605 180,468
Other Assets, net..................... 53,002 53,179
_______ _______
Total assets......................$1,371,414 $1,422,770
======= =======
LIABILITIES AND STOCKHOLDERS EQUITY
____________________________________
Current Liabilities:
Accounts payable.................... $ 16,472 $ 10,218
Accrued expenses.................... 18,892 29,547
Deferred franchise revenue.......... 9,842 10,327
_______ _______
Total current liabilities......... 45,206 50,092
Deferred Franchise Revenue............ 8,456 7,608
Revolving Credit Facility............. 42,650 1,200
Liquid Yield Option Notes............. 176,169 179,373
Convertible Subordinated Debt......... 129,862 129,862
Deferred Income Taxes................. 20,358 35,958
Other Noncurrent Liabilities.......... 9,807 7,258
Minority Interest..................... 33,185 99,090
Repurchase Common Stock and
Series A Preferred Stock............ 20,360 -
Commitments and Contingencies
Stockholders' Equity:
Preferred Stock--$.01 par value;
authorized 20,000,000 shares; no
shares issued and outstanding..... - -
Common Stock--$.01 par value;
authorized 100,000,000 shares;
issued and outstanding:
63,902,895 in July and
64,029,942 in October............. 639 640
Additional paid-in capital.......... 812,528 822,195
Retained Earnings................... 72,194 89,494
_______ _______
885,361 912,329
_______ _______
Total liabilities and
stockholders equity............$1,371,414 $1,422,770
======= =======
Note: This information includes the financial position of the
Company's majority owned subsidiaries; Einstein/Noah Bagel Corp. and
Mid-Atlantic Restaurant Systems, L.P.
CONTACT: Boston Chicken, Inc. Melissa Marsden, 303/216-5652 (analyst) Karen Rugen, 303/216-5076 (media) |
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