Brazil Fast Food Reports First Quarter Results; Company Nearly Doubles 1st Quarter Year-Over-Year Net Income and EPS.RIO DE JANEIRO Rio de Janeiro, city, Brazil Rio de Janeiro (rē`ō də zhänā`rō, Port. rē`  thĭ zhənĕē`r , Brazil -- Brazil Fast Food (OTCBB OTCBBSee OTC Bulletin Board (OTCBB). :BOBS.OB), a 393-outlet fast-food chain and the second largest fast-food chain operator in Brazil, today announced financial results for its first quarter ended March 31, 2005. System-wide sales for the first three months of 2005 increased 27 percent to R$81,449,704 from R$64,059,379 for the first quarter of 2004. Net franchise royalty fees were R$2.5 million for the three-month period ended March 31, 2005 - up 34 percent from 2004's first-quarter net franchise royalty fees of R$1.9 million. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the first quarter of 2005 was R$2.8 million, versus operating income of R$2.2 for the same period of 2004. Net income increased 94 percent from R$2.02 million, or R$.25 per share, 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. , for the first quarter of 2005, from net income of R$1.04 million, or R$.13 per share, basic and diluted, for the first quarter of 2004. Ricardo Figueiredo Bomeny, Chief Executive Officer of Brazil Fast Food Corp., commented on the results, "During the first quarter of 2005, Brazil's economy continued to provide our Company with a hospitable hos·pi·ta·ble adj. 1. Disposed to treat guests with warmth and generosity. 2. Indicative of cordiality toward guests: a hospitable act. 3. environment in which to expand and strengthen its presence. The effects of our intensive marketing efforts, our store modernization modernization Transformation of a society from a rural and agrarian condition to a secular, urban, and industrial one. It is closely linked with industrialization. As societies modernize, the individual becomes increasingly important, gradually replacing the family, project and the net expansion of our chain by five points of sale are evident in our significantly improved top- and bottom-line financial results for the first quarter of 2005. Although we still cannot guarantee our Company's ability to continue as a going concern, we have made meaningful progress across the board. During the first three months of 2005, our Company increased revenue and earnings, reduced its level of bank indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. - and thus its net interest income expense - and cut costs as a percentage of net restaurant sales of food, beverage and packaging. We believe that we are on the right track to rebuilding a solid, financially stable foundation for Brazil Fast Food - a foundation with the strength to support the full value of our Company." ABOUT BRAZIL FAST FOOD CORP. Brazil Fast Food Corp. owns and operates, both directly and through franchisees, the second largest chain of hamburger fast-food restaurants in Brazil, through its 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. , Venbo Comercio de Alimentos Ltda. Brazil Fast Food Corp. conducts business in Brazil under the trade name "Bob's." As of March 31 2005, the Company had 393 points of sale, which includes traditional restaurants, kiosks and re-locatable trailers. This press release contains 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 meanings of Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and Section 21E of the Securities and Exchange Act of 1934, as amended. Such statements involve known or unknown risks, uncertainties and other factors that may cause the actual results to differ materially from those expressed or implied by such forward-looking statements. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see the disclosures in the Company's filings with the Securities and Exchange Commission, including the risk factors contained in the Company's Annual Report 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. for the year ended December 31, 2004, filed with the Securities and Exchange Commission on April 15, 2005. BRAZIL FAST FOOD CORP. Financial Highlights, Unaudited In thousands, except per-share figures and % increases. All financial figures are expressed in Brazilian Reais R$.
R$000 Three Months Ended March 31
2005 2004 % Increase
---- ---- ----------
System-wide sales R$81,450 R$64,059 27%
Net Restaurant Sales 18,099 16,154 12
Net Franchise Royalty Fees 2,513 1,870 34
Operating Income 2,824 2,197 29
Net Income 2,018 1,040 94
Net Income Per Common Share,
Basic and Diluted R$0.25 R$0.13 92
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