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KETTLE RESTAURANTS ANNOUNCES FIRST QUARTER EARNINGS FOR 1992

 KETTLE RESTAURANTS ANNOUNCES FIRST QUARTER EARNINGS FOR 1992
 HOUSTON, March 18 /PRNewswire/ -- Kettle Restaurants, Inc. announced the company reported a net loss for the quarter ended Jan. 30, 1992, of $219,000 or ($.19) per share compared to a net profit of $805,000 or $.70 per share for the comparable 1991 period.
 In fiscal 1990, the company received notice of a workers' compensation rate modification in the state of Texas resulting in additional premium costs of approximately $1,004,000. Accordingly, that amount was charged to earnings for the year ended Nov. 1, 1990. Subsequent to the issuance of the company's 1990 annual report, the company successfully appealed the rate modification resulting in the rescission of additional premiums due. The removal of the charge to earnings, previously recognized in fiscal 1990, is reflected in the profits for the quarter ended Jan. 31, 1991, which substantially enhanced net income for that quarter.
 Total revenues increased 9.7 percent for the quarter compared to the same period the prior year, primarily due to an increase in restaurant sales. Restaurant revenues increased 17.9 percent for the quarter ended Jan. 30, 1992 compared to the same period in 1991 due, in part, to the acquisition of 13 franchise stores from franchisees during fiscal 1991 and the first quarter of 1992. The re-acquired franchise stores also contributed to the 6.1 percent increase in weighted average sales per restaurant for the quarter. The 4.8 percent decrease in franchise fees and the 7.1 percent decrease in lease rental income for the quarter reflects, in part, a net reduction of 14 franchised stores in the system during fiscal 1991 and the quarter ended Jan. 30, 1992, offset, in part, by an increase in weighted average sales per store of 5.3 percent.
 The company, aided by the advertising firm of Black Gillock & Langberg, and its public relations division, Black/Rives Public Relations, have created a marketing program which will focus on creating an identifiable image for the company as "America's Kitchen." The advertising/public relations campaign is designed to broaden the existing customer base and will utilize radio spots featuring Peg Phillips, who plays "Ruth Ann" on the popular CBS series "Northern Exposure." The spots have a warm, neighborly feeling and talk about Kettle founders Harry and Danny Chambers. Additional creative will be developed for outdoor, newspaper and direct mail campaigns. The advertising campaign is currently being implemented in selected test markets and management believes that it will further enhance the increase in weighted average sales reflected in fiscal 1991 and 1992.
 The company presently has no plans for adding any new units to the system during the current fiscal year.
 Kettle Restaurants, Inc. is principally engaged in the operation and franchising of 24-hour full-service, family-oriented restaurants. The restaurants offer a wide selection of moderately priced menu items for all meal periods. Kettle and its franchisees operate 163 restaurants in 15 states, primarily in the Sunbelt region.
 KETTLE RESTAURANTS, INC.
 Earnings Release
 (Amounts and shares in thousands, except per share data)
 First quarter ended
 1/30/92 1/31/91
 Operating Data:
 Restaurant sales $8,347 $7,082
 Franchise fees 935 982
 Lease rental income 1,476 1,588
 Operating income (loss) (381) 1,219
 Extraordinary item, net
 of income taxes of $17 33 --
 Net income (loss) (219) 805
 Earnings (loss) per share
 before extraordinary item (.22) .70
 Earnings (loss) per share (.19) .70
 Weighted average common
 and common equivalent
 shares outstanding 1,147 1,148
 Number of restaurants at
 end of period:
 Company operated 66 75
 Franchised 97 109
 Total 163 184
 -0- 3/18/92
 /CONTACT: C. Doyle Smith, chief financial officer and treasurer of Kettle Restaurants, 713-524-3464/ CO: Kettle Restaurants Inc. ST: Texas IN: LEI SU: ERN


SH -- NY019 -- 9141 03/18/92 10:18 EST
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Publication:PR Newswire
Date:Mar 18, 1992
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