Brazil Fast Food Reports Strongly Improved 4th Quarter and Yearly Results; Reports Net Operating Profit; Company Raises Nearly $2 Million in Private Placement Offer.Business Editors RIO DE JANEIRO Rio de Janeiro, city, Brazil Rio de Janeiro (rē`ō də zhänā`rō, Port. rē`  thĭ zhənĕē`r , Brazil--(BUSINESS WIRE)--April 3, 2001
Brazil Brazil (brəzĭl`), Port. Brasil, officially Federative Republic of Brazil, republic (2005 est. pop. 186,113,000), 3,286,470 sq mi (8,511,965 sq km), E South America. Fast Food Corp. (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 SmallCap: BOBS), the second largest fast-food chain operator in Brazil, with 231 points of sale, today reported operating results for its fourth quarter and year ended December 31, 2000. System-wide gross sales Gross Sales A measure of overall sales that isn't adjusted for customer discounts or returns, calculated simply by adding all sales invoices, and not including operating expenses, cost of goods sold, payment of taxes, or any other charge. for the chain increased 22.7 percent to R$44.9 million for the fourth quarter of 2000, from R$36.5 million for the same period of the prior year. Same store sales Same Store Sales A statistic used in retail industry analysis. It compares sales of stores that have been open for a year or more. Notes: This statistic allows investors to determine what portion of new sales has come from sales growth and what portion from the opening of were up 2.8 percent for the fourth quarter of 2000 compared with the previous year's fourth quarter. Total net operating revenue operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. for the fourth quarter of 2000 rose more than 20 percent to R$21.0 million, from R$17.4 million for the same period of the prior year. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Total net operating revenue for 2000 increased 15.1 percent to R$71.8 million from R$62.4 million for the prior year. EBITDA for 2000 were R$4.1 million versus R$1.1 million for 1999 - a four-fold increase. System-wide gross sales for the chain increased 22.8 percent to R$155.1 million for 2000 from R$126.3 million for the previous year. Same store sales for 2000 increased 8.0 percent from the prior year. The Company reported a net operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. of R$490,000 for 2000 - an improvement of R$2.9 million from the R$(2.4) million net operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of for 1999. The net loss for 2000 was R$(3.4) million, or R$(1.04) per 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. common share, compared to R$(10.9) million, or R$(3.37) per basic and diluted common share for 1999. Brazil Fast Food also announced that it has completed a private placement offering of 487,500 units at $4.00 per unit, each consisting of one share of common stock and a warrant, exercisable for 24 months at $5.00 per share. This equity placement, together with negotiated adjustments to certain supplier agreements, yielded an aggregate of $2.9 million, which will be used for working capital. Peter van Voorst Vader, 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. of Brazil Fast Food Corp., commented, "I am very proud of our Company's progress during 2000. Our aggressive growth and expansion strategy, successful new product and marketing initiatives, strict cost-control measures and a stronger economic environment in Brazil enabled us to expand our chain, boost sales, greatly improve EBITDA and slash our net loss. We anticipate continuing this progress throughout 2001 as we expand - principally through franchises - to an expected 270 points of sale by the end of the year. As always, our work will be equally divided between satisfying our customers' taste for great fast food and our investors' desire for profits." About Brazil Fast Food Brazil Fast Food currently has 231 points of sale in its chain. Brazil Fast Food Corp., 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., a limited liability company that conducts business under the trade name "Bob's," owns and operates (both directly and through franchisees) the second largest chain of hamburger fast food restaurants in Brazil. Operating highlights for 2000 include: -- Opening of 200th Bob's restaurant -- Agreement with Petrobras Distribuidora (BR), the largest gas station chain in Brazil, and subsidiary of Petrobras S.A., South America's leading oil company. Under terms of the agreement, Brazil Fast Food committed to opening a store-within-a-store in BR Mania convenience stores or stand-alone drive-thru restaurants at 30 Petrobras gas stations located predominantly in Rio de Janeiro and Sao Paulo. In addition, Brazil Fast Food and BR agreed to study the possible expansion of the agreement to additional gas stations in Brazil operated by BR. -- Brazil Fast Food began offering Brazilian Depository Receipts (BDRs) on the BOVESPA, the Brazilian stock exchange in Sao Paulo. -- Initiation of a test program in 16 Bob's restaurants in Rio de Janeiro, which enables customers to place food-delivery orders via the Internet. -- Master-franchise agreement to open 30 stores in Portugal, the first of which will be opened during the last quarter of 2001. The accompanying financial information has been prepared assuming that Brazil Fast Food will continue as a going concern. The Company has suffered recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. losses from operations and has a negative working capital that raises substantial doubt about its ability to continue as a going concern. Management's plans in relation to these matters are described in the Company's 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, 2000. This press release may contain certain 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. , which are subject to change. Actual results may differ from those described in any forward-looking statements. Additional information concerning potential factors that could affect the Company's financial results are included in the Company's Form 10-K for the year ended December 31, 2000.
BRAZIL FAST FOOD CORP.
Financial Highlights (Audited)(1)
(In thousands, except shares and earnings per share)
For the Three
Months Ended For the Year Ended
12/31/00 12/31/99 12/31/00 12/31/99
System-Wide Sales R$44,858 R$36,545 R$155,094 R$126,334
Net Operating Revenue 20,965 17,372 71,793 62,380
EBITDA(2) 1,623 85 4,100 1,071
Net Operating Profit (Loss) 686 (1,038) 490 (2,418)
Net (Loss) (1,116) (4,416) (3,351) (10,901)
Net (Loss) (0.34) (1.36) (1.04) (3.37)
Per Common Share,
Basic
Weighted Average
Common Shares
Outstanding, Basic 3,235,290 3,235,290 3,235,290 3,235,290
(1) Expressed in Brazilian Reais.
(2) Earnings before interest, taxes, depreciation and amortization.
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion