Casa Ole Restaurants Inc. Announces 1st Quarter Results and Conference Call.HOUSTON--(BUSINESS WIRE)--May 14, 1999-- Casa Ole Restaurants Inc. (Nasdaq:CASA) today announced results for the first quarter ended April 4, 1999 and a conference call. The Company's revenues for the first quarter of fiscal 1999 were up 4.0% to $12.3 million over revenues of $11.8 million for the same quarter a year ago. Restaurant sales for the first quarter of 1999 were up 3.6% to $11.9 million compared with $11.5 million for the same quarter a year ago. The increase in restaurant sales is due to a net increase of one restaurant compared with the same quarter a year ago. Total system sales System sales is a business term used in the franchising industry. Franchisors provide supplies, marketing and administration services to franchisees in return for a part of the franchisees' revenues. Some franchisors also operate some outlets directly. at restaurants operating in both fiscal quarters ("same stores") increased 0.3%. Company-owned and franchise-owned same stores also increased 0.3%, respectively. Net income was $394,305 or $0.11 per share compared to $464,366 or $0.13 per share the same quarter a year ago. The prior year's net income included extraordinary net income of $39,975 ($0.01 per share) related to an early extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt. Mr. Glowacki, the Company's president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , commenting on the first quarter said, "The recent quarter shows our continued improvements in restaurant operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: . Adding back the sale-leaseback sale-lease·back n. See leaseback. rent, which wasn't was·n't Contraction of was not. wasn't was not wasn't be part of last year's expenses, and 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. actually improved 80 basis points (as a percentage of revenues), and restaurant operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. improved 190 basis points. Last year's sale-leaseback transaction was a necessary part of refinancing Refinancing An extension and/or increase in amount of existing debt. the Company, allowing us to grow once again." Mr. Neeb, the Company's chairman 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. , added, "I'm I'm Contraction of I am. Our Living Language Speakers of some scattered varieties of American English sometimes use I'm instead of I've or I have in present perfect constructions, as in pleased with management's continuing progress in the overall improvement in restaurant operating performance. This is especially true in light of the shift of a strong New Year's Eve week into last year's fourth quarter and a shift of a weak Easter week In the Anglican and other Latin-rite churches, Easter Week is the week beginning with the Christian feast of Easter and ending a week later on Easter Saturday. In Eastern Orthodoxy, this week is known as Bright Week. into the first quarter 1999. Since the close of the first quarter, management has repositioned the three under performing Idaho restaurants to the Monterey's Little Mexico format, closed on the La Senorita acquisition, and opened one new Tortuga restaurant. The Company also has two Tortuga restaurants under construction." The Company has scheduled a conference call for Monday, May 17, 1999 to discuss the first quarter financial results. The call will last approximately 30 minutes, including time allotted al·lot tr.v. al·lot·ted, al·lot·ting, al·lots 1. To parcel out; distribute or apportion: allotting land to homesteaders; allot blame. 2. for taking questions from callers. It will begin at 3:00 p.m. central daylight time. Inquiries regarding the call should be directed to Teresa Atkinson at 713/943-7574. Casa Ole Restaurants Inc. operates and franchises 90 Mexican Mexican named after or originating in Mexico. Mexican axolotl see ambystomamexicanum. Mexican beaded lizard (Heloderma horridum restaurants. The current system includes 54 Company-operated restaurants and 36 franchisee-operated restaurants. Special Note Regarding 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. Certain statements in this release constitute "forward-looking statements" 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 "Reform Act"). Such forward-looking statements involve known and unknown risks, uncertainties and other facts which may cause the actual results, performance or achievements of Casa Ole Restaurants Inc., its area developers, market partners, franchisees and Casa Ole restaurants to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: general economic and business conditions; competition; 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; brand awareness; adverse publicity; acceptance of new product offerings; consumer trial and frequency; availability, locations and terms of sites for store development; changes in business strategy or development plans; quality of management; availability, terms and development of capital; business abilities and judgment of personnel; availability of qualified personnel; food, labor and employee benefit costs; changes in, or the failure to comply with government regulations; regional weather conditions; construction schedules; and other factors referenced in the Company's 1998 Annual Report and 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. . The use in this release of such words as "believes", "anticipates", "expects", "intends" and similar expressions are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. The success of the Company is dependent on the efforts of the Company, its employees and its area developers, market partners, and franchisees and the manner in which they operate and develop stores. -0-
Casa Ole Restaurants Inc.
Consolidated Statements of Income
(Unaudited)
13-Week 13-Week
Period Ended Period Ended
04/04/99 03/29/98
------------ ------------
Revenues:
Restaurant sales $11,936,794 $11,519,196
Franchise fees and royalties 251,483 257,638
Other 69,603 4,201
----------- -----------
12,257,880 11,781,035
----------- -----------
Costs and expenses:
Cost of sales 3,312,168 3,116,407
Labor 3,988,221 3,871,551
Restaurant operating expenses 2,662,434 2,473,812
General and administrative 1,210,201 1,033,799
Depreciation and amortization 359,706 359,171
Pre-open costs 50,051 63,543
----------- -----------
11,582,781 10,918,283
----------- -----------
Operating income 675,099 862,752
----------- -----------
Other income (expense):
Interest income 7,282 3,358
Interest expense (55,613) (214,905)
Other, net 14,902 38,861
----------- -----------
(33,429) (172,686)
----------- -----------
Income before income tax
expense and extraordinary item 641,670 690,066
Income tax expense 247,365 265,675
----------- -----------
Income before extraordinary item 394,305 424,391
Extraordinary item (net of tax
of $25,025) - 39,975
----------- -----------
Net income $394,305 $464,366
=========== ===========
Basic and diluted income per
share (before extraordinary item) $0.11 $0.12
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Basic and diluted income per share
(extraordinary item) $ - $0.01
=========== ===========
Basic and diluted income per
share 0.11 0.13
=========== ===========
Weighted average number of shares
(diluted) 3,597,705 3,597,705
=========== ===========
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