Boston Restaurant Associates Announces 87-Percent Increase in Third-Quarter Profits.BOSTON--(BUSINESS WIRE)--March 16, 1999-- Company Projects Further Increases in Revenues With Roll-out of New Stores BOSTON--(BUSINESS WIRE)--March 16, 1999--Boston Restaurant Associates, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : BRAI, BRAIW) (BSE See Bombay Stock Exchange. BSE See Boston Stock Exchange (BSE). : BNR BNR Bulgarian National Radio BNR Banca Nationala a României (National Bank of Romania) BNR Biological Nutrient Removal (sewage treatment) BNR Bell Northern Research BNR Body Not Recovered BNR Big Nerd Ranch , BNRW) today announced operating results for the thirteen weeks and nine months ended January January: see month. 24, 1999. Net income for the thirteen weeks increased by 87 percent to $51,081 compared with $27,298 for the period ended January 24, 1998. Total revenues for the thirteen weeks increased to $3,175,151, compared with $2,818,548 for the same period in 1998. Commenting on the company's steady increases in sales and income, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. George George, river, c.345 mi (560 km) long, rising in a lake on the Quebec-Labrador boundary, E Canada. It flows N through Indian Lake (125 sq mi/324 sq km) to Ungava Bay (an arm of Hudson Strait). Chapdelaine said: "We are enthusiastic about the company's fiscal 1999 third-quarter results, which do not yet reflect the increases in revenues and profit that will result from franchise and lease agreements that have only recently been finalized See finalization. . With these agreements now in place, we expect fiscal 2000 to be a breakthrough year for 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. Restaurant Associates." In December December: see month. 1998, Boston Restaurant International, Inc., a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of the company, entered into a joint venture agreement with Italian Ventures, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control . The newly formed company, Regina Regina (rĭjī`nə), city (1991 pop. 179,178), provincial capital, S Sask., Canada, on Wascana Creek. The city is the distribution and service center for one of the world's largest wheat-growing areas. Ventures, LLC, has launched a franchise program and currently has one franchisee under agreement. In January 1999, Boston Restaurant Associates entered into a franchise agreement with Shining Sea, LLC for the development of Pizzeria Regina food court kiosks in Seoul Seoul (sā`  l, sā` l, sōl), city (1995 pop. 10,229,262), capital of South Korea, NW South Korea, on the Han River. , Korea Korea (kôrē`ə, kə–), Korean Hanguk or Choson, region and historic country (85,049 sq mi/220,277 sq km), E Asia. .
In addition, Boston Restaurant Associates is on schedule to open three company-owned Polcari's restaurants before the end of fiscal 2000. Boston Restaurant Associates Inc. owns and operates a chain of ten pizzerias under the name of Pizzeria Regina in Florida, Massachusetts Florida is a town in Berkshire County, Massachusetts, United States. It is part of the Pittsfield, Massachusetts Metropolitan Statistical Area. The population was 676 at the 2000 census. , New Jersey and Virginia Virginia, state, United States Virginia, state of the south-central United States. It is bordered by the Atlantic Ocean (E), North Carolina and Tennessee (S), Kentucky and West Virginia (W), and Maryland and the District of Columbia (N and NE). , and an Italian restaurant, Polcari's North End. Statements about the company's future expectations, including future expansions, franchising, revenues and earnings, and all other statements in the press release other than historical facts are "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 the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. The Company intends that such forward-looking statements be subject to the safe harbors Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. create thereby. Since these statements involve risks and uncertainties and are subject to change at any time the company's actual results could differ materially from expected results. -0-
ITEM 1. FINANCIAL STATEMENTS
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
JAN 24 APRIL 26
1999 1998
ASSETS
Current:
Cash and cash equivalents $1,715,923 $1,788,361
Accounts receivable $39,070 $46,958
Inventories $231,672 $212,071
Prepaid expenses and other $95,758 $49,152
Total current assets $2,082,423 $2,096,542
Net property and equipment $3,381,096 $3,345,273
Other assets $1,322,420 $1,323,160
Total assets $6,785,939 $6,764,975
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $283,846 $314,124
Accrued liabilities $419,455 $490,525
Current maturities:
Notes payable-stockholder $4,770 $4,495
Long-term debt $119,272 $200,000
Obligations under capital leases $82,984 $74,206
Total current liabilities $910,327 $1,083,350
Long-term obligations:
Notes payable, stockholder, less
current maturities $116,620 $121,336
Long-term debt, less current
maturities $419,200 $425,000
Obligations under capital leases,
less current maturities $298,164 $361,548
Subordinated debentures $1,500,000 $1,500,000
Deferred Rent $103,261 $85,662
Total liabilities $3,347,572 $3,576,896
Commitments and contingencies
Stockholders equity:
Common stock, $.01 per value;
25,000,000 shares authorized,
7,024,170 and $70,242 $70,220
7,021,970 shares issued
Additional paid in capital $10,895,021 $10,846,333
Accumulated deficit ($7,526,896) ($7,728,474)
Total stockholders' equity $3,438,367 $3,188,079
Total liabilities and stockholders'
equity $6,785,939 $6,764,975
BOSTON RESTAURANTS ASSOCIATES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Thirteen Weeks Ended Thirty-nine Weeks Ended
January 24 January 25 January 24 January 25
1999 1998 1999 1998
Net sales $3,175,151 $2,818,548 $9,237,834 $8,654,253
Cost of food,
beverages and
liquor $677,865 $570,668 $1,934,217 $1,747,761
Payroll $875,059 $844,099 $2,607,586 $2,567,632
Other operating
expenses $923,446 $871,489 $2,708,253 $2,627,784
General and
administrative $444,827 $330,435 $1,186,183 $1,035,537
Depreciation and
amortization $137,873 $107,434 $415,622 $331,102
Total costs and
expenses $3,059,070 $2,724,125 $8,851,861 $8,309,816
Operating income $116,081 $94,423 $385,973 $344,437
Other income ($1,273) ($2,018) ($3,714) ($4,539)
Interest income ($17,122) ($3,876) ($55,733) ($18,877)
Interest expense $83,395 $73,019 $243,816 $222,046
Net Income $51,081 $27,298 $201,604 $145,807
Income per share-
basic $0.01 $0.01 $0.03 $0.03
Income per share-
diluted $0.01 $0.01 $0.03 $0.03
Weighted average number
of common shares
outstanding
- basic 7,024,170 5,015,693 7,023,928 5,015,693
Weighted average number
of dilutive
common shares
outstanding 7,024,170 5,308,348 7,196,468 5,283,146
Boston Restaurant Associates Inc. and Subsidiaries.
Condensed Consolidated Statements of Cash Flows
(unaudited)
Thirty-nine Weeks Ended
Jan. 24. Jan. 25
1999 1998
Cash flows provided by operating activities $522,259 $335,425
Cash flows from investing activities:
Capital expenditures ($449,121) ($861,242)
Cash flows used for investing activities ($449,121) ($861,242)
Cash flows from financing activities:
Repayments of long-term debt ($625,000) ($150,003)
Repayments of capital lease obligations ($54,606) ($22,701)
Repayments of stockholder loans ($4,442) ($3,154)
Proceeds from subordinated debentures $0 $218,750
Proceeds from long-term debt $538,472 $0
Cash flows provided by (used for)
financing activities ($145,576) $42,892
Increase (decrease) in cash
and cash equivalents ($72,438) ($482,925)
Cash and cash equivalents at
beginning of period $1,788,361 $726,054
Cash and cash equivalents at end of period $1,715,923 $243,129
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