DenAmerica reports third quarter results.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. , Arizona--(BUSINESS WIRE)--November 8, 1996-- - Black-eyed Black´-eyed` a. 1. Having black eyes. Pea Acquisition and Restaurant Conversion Program Make Positive Contributions To Results - 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 franchisee of 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. restaurants and the owner and franchisor of the Black-eyed Pea (BEP BEP Black Eyed Peas (band) BEP Brevet d’Études Professionnelles (French: vocational qualification) BEP Business Entry Point BEP Break-Even Point BEP Bit Error Probability BEP Bureau of Engraving & Printing ) restaurant chain, today announced results for the 13-week third quarter and 40-week nine month periods ended October 2, 1996. The comparable year-ago periods are the 13-week third quarter and 39-week nine months periods ended September 27, 1995. DenAmerica was formed by the March 29, 1996 merger of the nation's two largest Denny's franchisees, 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 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 ). The effective date of DenAmerica's acquisition of the BEP chain was June 24, 1996. Consequently, the third quarter of 1996 is DenAmerica's first reporting period which includes a full quarter's results for the BEP, AFR and DRC restaurant operations. The fiscal 1995 third quarter and nine month periods reflect only DRC operations and, accordingly, are not comparable to fiscal 1996. Earnings per share are calculated after deducting the preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. dividend and accretion The act of adding portions of soil to the soil already in possession of the owner by gradual deposition through the operation of natural causes. The growth of the value of a particular item given to a person as a specific bequest under the provisions of a will between the applicable to the preferred stock retired on the date of the DRC/AFR merger. For the third quarter period ended October 2, 1996, the Company reported revenues of $84.6 million, compared with revenues of $20.7 million for the comparable period ended September 27, 1995. Net income for the third quarter of 1996 was $1,782,000, or $0.13 per share, compared to net income of $588,000, or $0.08 per share, for the year-ago period. Per share results for the 1996 and 1995 third quarter periods are based on 13,299,000 and 6,937,000 weighted average shares outstanding, respectively, reflecting the March 1996 DRC/AFR merger. Year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. comparable same store Denny's sales decreased 2.2%, primarily as a result of the Breakaway break·a·way adj. 1. Designed to break, bend, or fall apart easily upon impact, especially to create an illusion, as with a theater prop, or for safety, as with a highway sign or barrier. 2. Breakfast value pricing For the strategic management concept, see . In public roads and transport, value pricing or road pricing is the practice of raising funds by charging users directly rather than via taxation. strategy implemented by Denny's, Inc. in January 1996. This strategy adversely affected operating results in the Company's non-media efficient markets, and was subsequently eliminated. Black-eyed Pea year-to-date comparable 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 increased 2.8% in its core Texas and Oklahoma market (65 restaurants), and same store sales for the entire chain rose 0.6% for the period. For the nine month period ended October 2, 1996, the Company had revenues of $163.8 million, compared to $53.8 million for the comparable year-ago period. For the nine month period, DenAmerica reported net income of $1,156,000, or $0.10 per share, compared to net income of $729,000, or $0.11 per share, in the comparable 1995 period. Per share results for the 1996 and 1995 nine month periods are based on 11,131,000 and 6,937,000 weighted average shares outstanding, respectively. Jack M. Lloyd, Chairman and Chief Executive Officer of DenAmerica, commented, "Our Company's results reflect the successful integration of the two significant transactions that were made earlier this year. The third quarter is the first reporting period to reflect the operations of both AFR and BEP. Since the American Family merger at the end of March, we have had a $0.05 and a $0.13 per share profit in our second and third quarters, respectively. "Digesting both AFR and BEP in only five months has been quite a challenge for our Company, and I am proud that our entire organization rose to the task of consolidating the 250 additional restaurants into DenAmerica. As further efficiencies and synergies are achieved, we believe that we can maintain our administrative expense level at or below the 4% level, a good benchmark for our industry. "As we convert 20 of our remaining unbranded restaurants to the Denny's and Black-eyed Pea concepts, we expect to continue generating per-unit sales and profitability gains due to the change in format. Through October 2, 1996, the unbranded restaurants have generated approximately $16.0 million in revenues and a slight 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. . Our goal is to focus exclusively on the Denny's and Black-eyed Pea concepts. "Our newly acquired BEP restaurants have been performing well, and we are fine-tuning the concept in order to expand it both within and outside of our current geographical market. In addition, we plan to begin offering franchising opportunities of this popular restaurant concept in the near future." Except for the historical information in this press release, it includes 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. that involve risks and uncertainties, including, but not limited to, competitive pressures from within the restaurant industry, quarterly fluctuations in results, the management of growth and other risks detailed from time to time in the Company's Securities and Exchange Commission filings. Actual results may differ materially from management expectations. 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 approximately 314 family-oriented and casual dining full-service restaurants, including 182 Denny's restaurants and 99 Black-eyed Pea restaurants. Company restaurants are located in 31 states, with the largest concentration in the West, Midwest and Southeast regions. -0-
DENAMERICA CORP. AND SUBSIDIARIES
Unaudited Consolidated Condensed Statements of Operations(a)
(In thousands, except per share data)
Third Quarter Ended Nine Months Ended
10/2/96 9/27/95 10/2/96 9/27/95
(13 weeks) (13 weeks) (40 weeks) (39 weeks)
Restaurant sales $ 84,599 $ 20,707 $163,772 $ 53,844
Restaurant Operating
Expenses:
Food 23,001 5,624 44,972 14,451
Payroll 28,069 6,565 55,485 17,591
Depreciation and
amortization 2,379 796 5,215 1,979
Other 22,030 5,144 42,104 13,796
Total operating expenses 75,479 18,129 147,776 47,817
Restaurant operating income 9,120 2,578 15,996 6,027
Administrative expenses 3,223 825 6,404 2,428
Operating income 5,897 1,753 9,592 3,599
Interest expense, net 2,930 629 6,581 1,649
Income before minority interest
in joint venture, income
taxes and extraordinary item 2,967 1,124 3,011 1,950
Minority interest (7) 56 4 176
Income before income taxes
and extraordinary item 2,974 1,068 3,007 1,774
Income tax expense 1,192 328 1,205 607
Income before extraordinary
item 1,782 740 1,802 1,167
Extraordinary item - loss on
debt extinguishment - - 497 -
Net income 1,782 740 1,305 1,167
Preferred stock dividend and
accretion - 152 149 438
Net income applicable to
common shareholders $1,782 $ 588 $1,156 $ 729
Net income per share $ 0.13 $ 0.08 $ 0.10 $ 0.11
Weighted average shares
outstanding 13,299 6,938 11,131 6,937
(a) Historical Company financial statements are those of Denwest
Restaurant Corp., and as a result of the reverse acquisition,
historical American Family Restaurants financials are not presented.
CONTACT: DenAmerica Corp. Jaffoni & Collins Incorporated 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 or Joseph N. Jaffoni Chief Financial Officer Robert L. Rinderman 602/483-7055 212/505-3015 or jci ir@aol.com |
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