JB'S RESTAURANTS ANNOUNCES FOURTH QUARTER AND FISCAL YEAR RESULTS
JB'S RESTAURANTS ANNOUNCES FOURTH QUARTER AND FISCAL YEAR RESULTS SALT LAKE CITY, Nov. 9 /PRNewswire/ -- JB's Restaurants Inc. (NASDAQ: JBBB), announced today net income of $414,000 or 9 cents per share for its fiscal fourth quarter ended Sept. 28, 1992 and $1,371,000 or 30 cents per share for the full year prior to a restructuring charge, net of tax, of $1,928,000 or 42 cents per share and the impact of the adoption of the new accounting standard for income taxes, as described below, of $214,000 or 5 cents per share. The restructuring charge is primarily related to the sale of 23 JB's Restaurants in Oregon and western Washington to IHOP Corp. (NASDAQ-NMS: IHOP) which was previously announced on July 22, 1992. These results compare with net income of $273,000 or 6 cents per share for the like quarter last year and net income of $1,225,000 or 27 cents per share for the prior year prior to a restructuring charge net of tax, of $2,216,000 or 48 cents per share. Including the restructuring charge and the impact of the adoption of the accounting standard for income taxes, the current year net loss for the fourth quarter was $1,728,000 or 37 cents per share and $771,000 or 17 cents per share for the full year as compared with the prior year net loss, including a restructuring charge, of $1,943,000 or 42 cents per share for the fourth quarter and a net loss of $991,000 or 22 cents per share for the full year. "The divestiture of the 23 restaurants in Oregon and western Washington, which have historically generated low profits, enhances the profit potential of the company and makes us the dominant family-style restaurant in each of the remaining markets in which we operate the JB's Restaurant concept," commented David E. Pertl, vice president and chief financial officer. "In addition, the proceeds from the sale provides the company with capital to help fund development of the 10 HomeTown Buffet restaurants scheduled to open in fiscal 1993." As noted above, during the fourth quarter, the company elected to adopt Statement of Accounting Standards Number 109, "Accounting for Income Taxes." Statement Number 109 resulted in remeasurement of balance sheet amounts of recorded assets (future tax benefits) and liabilities (future tax obligations).
The cumulative effect of this change in accounting for income taxes of $214,000 was determined as of Oct. 1, 1991 and is reported separately in the consolidated statements of operations for the fourth quarter and the year ended Sept. 28, 1992.
Revenues for the fourth quarter were $31.1 million, a decrease of 5.9 percent over the like quarter last year. For the fiscal year, revenues decreased 2.6 percent to $124.0 million compared with $127.3 million last year. The prior year quarter contained 13 weeks compared to 12 weeks in the current quarter. In addition, there were fewer restaurants open during the quarter primarily due to the restaurants sold to IHOP. The company operated 109 JB's Restaurants at the end of the year compared to 136 at the end of the prior year. During the fiscal year the company opened one company-operated JB's Restaurant, eight Sbarro restaurants, four HomeTown Buffet restaurants, franchised two JB's Restaurants, and closed or sold 28 JB's Restaurants. "Despite the continued weak economic environment, the company was able to show a modest profit improvement versus a year ago before restructuring charges," said Fred P. Gonzales, president and chief executive officer. "We are extremely confident in the JB's Restaurant concept and are very enthusiastic about the prospects for our HomeTown Buffet restaurants where sales are exceeding our expectations with annualized per store volumes in excess of $2.0 million. We now have four HomeTown Buffet restaurants in operation, one of which opened in the fourth quarter in Denver, Colorado." JB's Restaurants has restaurant operations in 11 western states in which it operates 109 and franchises five JB's family-style restaurants, operates 12 franchised Sbarro restaurants and operates four franchised HomeTown Buffet restaurants. The company also owns an approximately one-fourth interest in Americana Entertainment Group Inc., the parent company of HomeTown Buffet which currently operates four HomeTown Buffet restaurants in California and Oregon. JB'S RESTAURANTS INC. Consolidated Statements of Operations Fourth Quarter Ended Fiscal Year Ended Sept. 28, Sept. 30, Sept. 28, Sept. 30, 1992 1991 1992 1991 Total revenues $31,066,000 $33,020,000 $124,045,000 $127,294,000 Costs and expenses Food cost 9,401,000 10,601,000 37,519,000 41,032,000 Operating, selling and administrative expenses 18,921,000 19,997,000 74,935,000 75,437,000 Depreciation and amortization 1,702,000 1,824,000 7,505,000 7,570,000 Restructuring charge 3,175,000(a) 3,058,000(b) 3,175,000(a) 3,058,000(b) Deferred compensation revaluation --- 442,000 --- 442,000 Total costs and expenses 33,199,000 35,922,000 123,134,000 127,539,000 Income (loss) from operations (2,133,000) (2,902,000) 911,000 (245,000) Interest and other income (expense), net (581,000) (264,000) (2,218,000) (1,441,000) Loss before income taxes (2,714,000) (3,166,000) (1,307,000) (1,686,000) Income taxes (benefit) (1,200,000) (1,223,000) (750,000) (695,000) Loss before cumulative effect of change in accounting principle (1,514,000) (1,943,000) (557,000) (991,000) Cumulative effect of change in accounting principle (214,000)(c) --- (214,000)(c) --- Net loss $(1,728,000) $(1,943,000) $(771,000) $(991,000) Net loss per common share before cumulative effect of change in accounting principle $(0.32) $(0.42) $(0.12) $(0.22) Cumulative effect of change in accounting principle (0.05) --- (0.05) --- Net loss per common share $(0.37) $(0.42) $(0.17) $(0.22) Weighted average shares outstanding 4,626,000 4,603,000 4,625,000 4,583,000 (a) Primarily related to the sale of 23 JB's Restaurants in Oregon and western Washington to IHOP Corp. (b) Non-recurring charge to write-down certain non-operating assets and close and write-down certain underperforming restaurants. (c) Adoption of Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes." -0- 11/9/92 /CONTACT: David E. Pertl of JB's Restaurants, 801-974-4300/ (JBBB IHOP) CO: JB's Restaurants Inc. ST: Utah IN: FOD SU: ERN
MC-BB -- DV006 -- 8887 11/09/92 16:26 EST
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|Date:||Nov 9, 1992|
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