DenAmerica Reports First Quarter Results; Completes Conversion of Five Restaurants to Denny's Format.SCOTTSDALE Scottsdale, city (1990 pop. 130,069), Maricopa co., central Ariz.; settled in 1895 by Winfield Scott, inc. 1951. It is a resort and retirement center in the Phoenix metropolitan area. , Ariz.--(BUSINESS WIRE)--May 17, 1996--DenAmerica Corp. (AMEX AMEX See: American Stock Exchange : DEN (Directory Enabled Networks) The management of a network from a central depository of information about users, applications and network resources. Originally an initiative from Microsoft and Cisco, DEN was turned over to the DMTF in 1998, and its extensions were made ), the nation's largest Denny's Denny's is the largest full-service family restaurant chain in the United States. It operates over 2,500 restaurants in the United States (including Puerto Rico), Canada, Curaçao, Costa Rica, El Salvador, Japan, Mexico, and New Zealand. restaurant franchisee, today announced results for the quarter ended March 27, 1996. This is the first reported period since the Company completed its merger with privately held Denwest Restaurant Corp. ("DRC DRC Democratic Republic of Congo DRC Down (Stage) Right Center DRC Director(ate) of Reserve Components DRC Disability Rights Commission (United Kingdom) ") and changed its name from American Family American Family is a photographic artwork exhibition by Renée Cox. See also
AFR Australian Financial Review AFR Afrikaans (South African language) AFR Air France (ICAO code) AFR Alternate Frame Rendering AFR Applicable Federal Rate ") to DenAmerica Corp. Because the former shareholders of DRC owned approximately 53.0% of the outstanding voting power of the Company immediately following the merger, the merger has been accounted for as a reverse acquisition, with DRC considered the acquiring entity for accounting purposes, even though the Company is the surviving legal entity. As a result, the Company's fiscal year end has been changed to DRC's fiscal year end of on or about December December: see month. 31 of each year. In addition, as permitted under generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting , for accounting purposes the merger was deemed to have occurred on March 27, 1996, the last day of DRC's first quarter for fiscal 1996. Accordingly, the following quarterly data for the periods ended March 27, 1996 and March 29, 1995 reflect only DRC's operations and do not include the results of operations of AFR. The Company's historical financial statements for periods prior to the merger will be those of DRC exclusively and year-to-year comparisons will not accurately reflect the consolidated financial operations of AFR and DRC prior to the merger. Restaurant sales for the quarter ended March 27, 1996 were $20.2 million, an increase of 27.2% over sales of $15.8 million in the comparable period ended March 29, 1995. The increase is primarily attributable to acquisitions and new restaurants opened during fiscal 1995. 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 for the period approximated the prior year's results. The Company reported a loss from operations of $178,000 for the first quarter of fiscal 1996, compared with 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. of $613,000 in the first quarter of fiscal 1995. The net loss for the first quarter of fiscal 1996 was $1,323,000, or $0.19 per share, compared with a net loss of $97,000, or $0.01 per share, in the comparable period last year. The weighted average number of common shares and common equivalent shares outstanding for both periods was 6,937,500 shares, based upon the weighted average number of shares issued to the former shareholders of DRC in the merger. The first quarter loss reflects an increase in aggregate 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. to 95.7% of total restaurant sales during the first quarter of fiscal 1996, as compared with 91.1% in the comparable 1995 quarterly period. Costs for food and beverage F&B is a common abbreviation in the United States and Commonwealth countries, including Hong Kong. F&B is typically the widely accepted abbreviation for "Food and Beverage," which is the sector/industry that specializes in the conceptualization, the making of, and delivery of foods. , payroll, amortization, depreciation and other restaurant operating expenses all rose as a percentage of sales. In addition, first quarter results were adversely affected by several promotional programs which impacted margins and did not lead to a significant increase in restaurant traffic. As a result, these programs were discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: in April 1996. On a pro-forma basis, assuming the consolidation of AFR's operating results with DRC's operations, restaurant sales for the quarter were $48.6 million, an increase of 17.1% over sales of $41.5 million in the comparable period ended March 29, 1995. The increase is primarily attributable to acquisitions, conversions and new restaurants opened during fiscal 1995. Commenting on DenAmerica's first quarter results, Chairman of the Board Jeffrey D. Miller stated, "The loss for the quarter had been anticipated since expenses were high as a percentage of sales and we were not yet achieving the efficiencies and financial benefits expected from the merger. We view this as a transitional period for DenAmerica and expect a reduction in operating costs operating costs npl → gastos mpl operacionales as duplicative du·pli·cate adj. 1. Identically copied from an original. 2. Existing or growing in two corresponding parts; double. 3. functions are eliminated. "During the quarter, we continued to invest in expanding our Denny's restaurant base by opening two new Denny's restaurants and converting five of our existing restaurants to the Denny's format during the period. We expect to develop additional new Denny's restaurants and to make further conversions throughout this fiscal year." DenAmerica Corp., headquartered in Scottsdale, Arizona Scottsdale (O'odham Vaṣai S-vaṣonĭ) is a city in Maricopa County, Arizona, United States, adjacent to Phoenix. Scottsdale has become internationally recognized as a premier and posh tourist destination, while maintaining its own identity and culture as " , operates 241 family-oriented, full- service restaurants, 178 of which are Denny's restaurants, in 29 states in the West, Midwest and Southeast. In addition to Denny's restaurants, DenAmerica operates 63 other family-style restaurants throughout the nation. DenAmerica has developed more new Denny's restaurants over the past eight years than any other franchisee or the franchisor, Denny's, Inc., and is the operator of approximately 10 percent of the Denny's restaurants in the U.S. -0-
DENAMERICA CORP. AND SUBSIDIARIES
Unaudited Financial Highlights(a)
(In thousands, except per share amounts)
Summary Operating Information Three Months Ended
3/27/96 3/29/95
Restaurant sales:
Denny's restaurants $ 18,143 $ 15,843
Non-Denny's restaurants 2,005 -
Total restaurant sales $ 20,161 $ 15,843
Operating (loss) income $ (178) $ 613 (Loss) income before extraordinary item $ (677) $ 69 Extraordinary item - loss on extinguishment of debt (497) - Net (loss) income $(1,174) $ 69 Preferred stock dividends and accretion 149 166 Net (loss) applicable to common shareholders $ (1,323) $ (97) (Loss) before extraordinary item per common and common equivalent share $ (0.12) $ (0.01) Extraordinary item - loss on on extinguishment of debt per common and common equivalent share $ (0.07) $ - Net (loss) per common and common equivalent shares applicable to common shareholders $ (0.19) $ (0.01) Weighted average common and common equivalent shares outstanding 6,938 6,938 -0- Summary Balance Sheet Information March 27, 1996 December 27, 1995 Working capital (deficit) $ (30,097) $ (9,406) Total assets 136,827 53,785 Long-term debt, less current portion 34,792 10,371 Subordinated notes 20,840 - Obligations under capital leases, less current obligations 21,992 19,881 Shareholders' equity $ 17,623 $ 564 (a) Historical Company financial statements are those of Denwest Restaurant Corp., and as a result of the reverse acquisition, historical American Family Restaurants financials will no longer be presented. CONTACT: DenAmerica Corp. Jeffrey D. Miller Chairman Todd S Todd , Sir Alexander Robertus 1907-1997. British chemist. He won a 1957 Nobel Prize for his study of nucleic acids and nucleotide structures. . Brown Chief Financial Officer 602/483-7055 or Jaffoni & Collins Incorporated Joseph N. Jaffoni Robert L. Rinderman 212/505-3015 |
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