Cucos Issues Revision of Announcement of Write-Off of Its Alabama Restaurants.NEW ORLEANS--(BUSINESS WIRE)--May 27, 1999-- For the Third Quarter ending April 4, 1999, following FASB Statement FASB Statement A standard set by the Financial Accounting Standards Board regarding a financial accounting and reporting method. Essentially, FASB statements determine the acceptable accounting practices that Certified Public Accountants use in reporting No. 121, Accounting For Impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. Of Long-Lived long-lived adj. 1. Having a long life: a long-lived aunt. 2. Lasting a long time; persistent: a long-lived rumor. 3. Assets, Cucos (Nasdaq:CUCO The Cuco (Coco, coca, or cuca) is a mythical monster, a ghost, witch; equivalent to the boogeyman found in many Hispanic and Lusophone countries. Origin The myth of the Coco originated in Portugal and Galicia. ) reduced the value of assets associated with properties primarily located in Alabama Alabama, indigenous people of North America Alabama (ăləbăm`ə), indigenous people of North America whose language belongs to the Muskogean branch of the Hokan-Siouan linguistic stock (see Native American languages). and Meridian, Mississippi Meridian is a city located in, and the county seat of, Lauderdale County in Mississippi, a state of the United States of America. Meridian is the fifth largest city in Mississippi and the principal city of the Meridian, Mississippi Micropolitan Statistical Area. . This resulted in a non-cash one time charge of $1,860,000. In addition, the Company expensed certain other non-recurring items in the amount of $357,000. This primarily included items such as expenses relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc a lawsuit lawsuit: see procedure; tort. , expenses associated with abandoned sites, and marketing costs associated with commercial television production. Before incurring in·cur tr.v. in·curred, in·cur·ring, in·curs 1. To acquire or come into (something usually undesirable); sustain: incurred substantial losses during the stock market crash. 2. these one-time charges, the Company's 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. for the Third Quarter was $138,000. This brought the total loss for the Third Quarter to $2,355,593 or $0.89 per share. Sales on comparable restaurants declined 0.5%; total sales declined 6.4% due primarily to having one fewer restaurant (Pensacola). The Meridian, Mississippi, restaurant was closed near the end of the Third Quarter. In the first quarter of the current fiscal year, management began implementing its Guest Experience Enhancement Programs designed to improve guest satisfaction and, therefore, future traffic and cash flows. These programs significantly increased restaurant operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. and impaired year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. profits. Price increases were subsequently initiated to help recover these incremental costs Costs which are additional costs to the Service appropriations that would not have been incurred absent support of the contingency operation. See also financial management. . It was not until the current quarter, however, that the relationship between menu price yields and costs began to approach a more normal relationship, thus reducing operating losses and resulting in an improved outlook for profits over the near term. -0-
CUCOS INC.
STATEMENTS OF OPERATIONS
UNAUDITED
12 Weeks 12 Weeks 40 Weeks 40 Weeks
Ended Ended Ended Ended
April 4, April 5, April 4, April 5,
1999 1998 1999 1998
Restaurant Operations ----------- ----------- ----------- -----------
Sales of Food
and Beverages $ 4,594,000 $ 4,908,000 $15,539,000 $16,254,000
Restaurant Expenses:
Cost of Sales 1,256,000 1,280,000 4,367,000 4,304,000
Restaurant Labor
and Benefits 1,653,000 1,656,000 5,554,000 5,441,000
Other Operating
Expenses 745,000 866,000 3,017,000 2,921,000
Occupancy Costs 544,000 561,000 1,789,000 1,773,000
Preopening Costs -- 33,000 55,000 55,000
----------- ----------- ----------- -----------
Total Restaurant
Expenses 4,198,000 4,396,000 14,782,000 14,494,000
----------- ----------- ----------- -----------
Income from Restaurant
Operations 396,000 512,000 757,000 1,760,000
Royalties and
Franchise Revenues,
Net of Expenses of
$817 and $8,637;
$2,658 and $21,527 28,000 23,000 102,000 82,000
Commissary and
Other Income 23,000 27,000 89,000 109,000
----------- ----------- ----------- -----------
447,000 562,000 948,000 1,951,000
Operations Expenses 229,000 234,000 649,000 678,000
Corporate Expenses 598,000 361,000 1,433,000 1,092,000
Charges Related to
Closed Units and
Asset Impairment 1,860,000 -- 1,860,000 --
----------- ----------- ----------- -----------
Operating Income (2,240,000) (33,000) (2,994,000) 181,000
Interest Expense 114,000 130,000 376,000 385,000
----------- ----------- ----------- -----------
Loss Before Income
Taxes and
Extraordinary
Expenses (2,354,000) (163,000) (3,370,000) (204,000)
Income Taxes 2,000 -- 3,000 --
----------- ----------- ----------- -----------
Loss Before
Extraordinary
Expense (2,356,000) (163,000) (3,373,000) (204,000)
Extraordinary Item -
Debt Restructuring
Penalties -- -- -- (166,000)
----------- ----------- ----------- -----------
Net Loss $(2,356,000) $ (163,000) $(3,373,000) $ (370,000)
=========== =========== =========== ===========
Weighted Average
Number of Common
Shares and Common
Share Equivalents
Outstanding 2,652,000 2,400,000 2,652,000 2,400,000
=========== =========== =========== ===========
Net Loss Per Share
Before Extraordinary
Expenses $ (0.89) $ (0.07) $ (1.27) $ (0.09)
=========== =========== =========== ===========
Net Loss Per Share $ (0.89) $ (0.07) $ (1.27) $ (0.15)
=========== =========== =========== ===========
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