Chart House to Take $4.2 Million Pre-Tax Write-Off in Shells' Purchase of Islands Florida Restaurants.SOLANA BEACH, Calif.--(BUSINESS WIRE)--Oct. 21, 1996--Chart House Enterprises, Inc. (NYSE NYSE See: New York Stock Exchange :CHT CHT Chart CHT Center for Health Transformation (Washington, DC) CHT Chittagong Hill Tracts (Bangladesh region) CHT Certified Hypnotherapist CHT Cylinder Head Temperature CHT Certified Hand Therapist ) announced today that Islands Florida LP has signed a definitive agreement for the sale of six Islands restaurant properties in Florida to Shells Seafood Restaurants, 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 :SHLL & SHLLW). Shells will pay a purchase price of $500,000 cash, plus a quarterly royalty payment of 1% of the 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. of the restaurants after they are converted to Shells restaurants. Shells will also assume the lease obligations for the six locations. Chart House sold six restaurants to Islands Florida LP in May 1996 for a $3 million note and a 25% limited partner interest and expects to recognize a $4.2 million pre-tax special charge against third quarter earnings in connection with the sale to Shells. The transaction, which is scheduled to close by year end, is subject to satisfactory completion by Shells of its due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. process and obtaining landlord consents and licenses and permits from local government agencies. There can be no assurance that the closing will occur as scheduled or that all of the six restaurants will be sold. After the sale of the Florida restaurants to Shells, Chart House will continue to have an interest in Islands California Arizona LP, a separate partnership which purchased 12 Islands restaurants in California and Arizona from Chart House in may 1996 for a $20 million note and a 25% limited partner interest. There are no current plans to sell the California and Arizona properties; however, the company is evaluating the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of its investment in the partnership. "The performance of Islands in Florida has deteriorated following the sale to the partnership in May," said Bill Kuntz, Chart House executive vice president and chief financial officer. "Chart House continues to have a stake in the success of Islands and this sale of the Florida restaurants to Shells will allow Islands management to focus their efforts on the California and Arizona restaurants." Chart House Enterprises, Inc. operates 64 restaurants in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , the U.S. Virgin Islands and Puerto Rico. CONTACT: Chart House Enterprises William R. Kuntz Jr., 619/755-8281 |
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