Boston Chicken Reports Second Quarter Results.GOLDEN, Colo.--(BUSINESS WIRE)--Aug. 6, 1997--Boston Chicken, Inc. (NASDAQ/NMS:BOST BOST Boston National Historic Park (US National Park Service) BOST Built Off-Chip Self Test ) today reported the following financial results for its second 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 July July: see month. 13, 1997, compared with results for the second quarter ended July 14, 1996. -0-
Second Quarter
-- Company revenue increased 81% to $116,596,000 from
$64,561,000.
-- Net income increased 33% to $19,678,000 from $15,916,000, and
earnings per share rose 24% to $0.29 from $0.24, excluding
one-time charges related to organizational streamlining.
-- After the one-time charges, net income was up 8% to
$17,238,000 and earnings per share rose 8% to $0.26.
-- Boston Market(R) systemwide gross revenue increased 20% to
$311,912,000 from $260,472,000.
Year-to-date
-- Company revenue increased 108% to $233,360,000 from
$111,908,000.
-- Net income increased 30% to $41,126,000 from $31,565,000, and
earnings per share increased 27% to $0.61 from $0.48,
excluding the one-time charges.
-- After the charges, net income was up 23% to $38,686,000 and
earnings per share rose 19% to $0.57.
-- Boston Market systemwide gross revenue increased 27% to
$727,150,000 from $572,270,000.
-0- The increase in company revenue is due to an increase in the number of company-operated stores from 79 to 227 at the end of the second quarter of 1997, in addition to greater royalties and franchise fees on a larger base of systemwide sales. Scott Beck, chairman and chief executive officer 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., said, "The second quarter marked the start of a transition period for our company -- we began to shift our marketing slowed development enabling them to focus on the existing store base, and we and our area developers streamlined the organization which reduced costs." The Bosany also announced during the quarter that it an0 for 1998, from earlier expectations of about 300 stores per year. "As 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 has a significant cthe current stores as productive as they can be.dded Beck. Mark Stephens Ste·phens , Alexander Hamilton 1812-1883. American politician who was vice president of the Confederacy (1861-1865) under Jefferson Davis. , vice chairman aive functions. "These actions resulted in performance. We expect that the during the third quarter we should see the store sales decline bottom out, and as a result of those lower sales and their corresponding effect on store margins, earnings in the third quarter could be lower than anticipated. "In addition, lower store sales and margins could mean aggregate losses for Boston Market financed area developers will increase in 1997 over 1996 levels. However, as we return to our roots and implement a unified marketing A unified market is the economic term for a single market where goods, services, capital and people can move freely without regard to national boundaries. These "four freedoms" are implemented by, among other things, removal of tariffs on the transfer of goods and services among and advertising program that focuses on the core strengths of our brand, we expect to see improvement in store performance later in the year," Stephens added. "Although we had drifted off strategy, we've taken the corrective cor·rec·tive adj. Counteracting or modifying what is malfunctioning, undesirable, or injurious. n. An agent that corrects. corrective, n steps necessary to get back to our core strategy of serving the home meal replacement market with great food and great service supported with marketing programs that emphasize quality, value and convenience at dinner. We're also confident in the solid asset base we have -- the unique positioning of the brand, a base of approximately 1200 stores, clear leadership in the home meal replacement category and the opportunities we have to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the trends in the way consumers are buying food today," Beck concluded. Boston Chicken, Inc. franchises and operates retail food service stores under the Boston Market brand name 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 meal solutions, featuring homestyle entrees, fresh vegetables, sandwiches, 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 . Boston Market combines the freshness and quality of traditional home cooking with convenience and value. On July 13, 1997, the end of the company's second quarter, there were 1,208 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). . Boston Chicken also owns a majority interest in Einstein/Noah Bagel Corp. -0- Certain statements in this release constitute 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. and involve risks, uncertainties and other factors which may cause actual results and the performance of Boston Chicken, Inc., its area developers and franchisees, and its and their Boston Market stores to be materially different from the results, performance or achievements expressed or implied by such statements. Such factors include, among others: availability and cost of capital to the restaurant industry in general and the company and its area developers in particular; success of operating initiatives; development and operating costs operating costs npl → gastos mpl operacionales ; 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; store performance; adverse publicity; changes in business strategy, including the possible integration of fresh, ready-to-heat prepared foods in the Bosfactors set forth in the company's filings with ds, except per share data) ____ July 14, July ,086 $26,738 $108,178 Royalties and franchise related fees...... 25,227 37,318 53,272 78,750 Interest income...... 13,910 21,192 31,898 46,432 ______ _______ _______ _______ Total revenue...... 64,561 116,596 111,908 233,360 Costs and Expenses: Cost of products sold............... 9,468 21,481 9,948 40,225 Salaries and benefits........... 9,328 23,302 16,837 45,213 General and administrative..... 15,905 31,967 26,716 62,055 ______ ______ ______ ______ Total costs and expenses......... 34,701 76,750 53,501 147,493 ______ ______ ______ ______ Income from Operations........... 29,860 39,846 58,407 85,867 Other Expense: Interest expense, net................ (3,435) (9,311) (6,335) (16,540) Gain (loss) on issuances of subsidiary s stock.......... - (619) - 82 Other income, net.... 203 1,667 312 1,641 ______ ______ ______ ______ Total other expense.......... (3,232) (8,263) (6,023) (14,817) ______ ______ ______ ______ Income Before Income Taxes and Minority Interest............. 26,628 31,583 52,384 71,050 Income Taxes........... 9,691 12,509 19,798 27,942 Minority Interest in (Earnings) of Subsidiaries...... (1,021) (1,836) (1,021) (4,422) ______ ______ ______ ______ Net Income............. $15,916 $17,238 $31,565 $ 38,686 ====== ====== ====== ====== Net Income Per Common and Equivalent Share..... $ 0.24 $ 0.26 $ 0.48 $ 0.57 ====== ====== ====== ====== Weighted Average Number of Common and Equivalent Shares Outstanding.......... 67,131 67,449 65,523 67,740 ====== ====== ====== ====== -0- BOSTON CHICKEN, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. (In thousands, except per share data) (Unaudited) April 20, July 13, 1997 1997 ________ _________ ASSETS ______ Current Assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. : Cash and cash equivalents........... $ 2,443 $ 176,132 Accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying , net............ 18,388 26,989 Due from affiliates................. 9,218 13,123 Inventories......................... 4,661 4,805 Prepaid expenses Prepaid Expense An asset that arises on a balance sheet because of the payment of something in advance (prepayment). Services for the payment will be received in the near future. and other current assets.................... 2,106 1,330 Deferred income taxes............... 10,248 5,068 ______ ______ Total current assets..............,130 395,374 Notes Receivable - Boston Chicken, Inc................. 635,835 769,343 Notes Receivable - Einstein/Noah Bagel Corp............ 216,999 262,595 Deferred Financing Costs, net......... 12,431 22,886 Goodwill, net......................... 259,58 expenses.................... 25,646 29,053 Deferred franchise revenue.......... 11,226 4,58ferred Franchise Revenue............ 6 ,761 ebt - Einstein/Noah Bagel Corp............ - 125,000 Liquid Yield Option Notes Liquid yield option note (LYON) Zero-coupon, callable, putable, convertible bond developed by Merrill Lynch & Co. ............. 4,768 Minority Interests.................... 175,211 179,746 Commitments and Contingencies Contingencies (ISSN 1048-9851) is the bimonthly magazine of the American Academy of Actuaries, providing a large and diverse readership with general interest and technical articles on a wide range of issues related to the actuarial profession. Stockho.. 839,304 850,747 Retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. .... _______ _______ Total liabilities and stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. ............$1,635,917 $2,005,771 ========= ========= CONTACT: Boston Chicken, Golden Melissa Marsden, 303/216-5652 (Analysts) Karen Rugen, 303/216-5076 (Media) |
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