Max & Erma's Restaurants, Inc. Reports Third Quarter Results.COLUMBUS, Ohio Columbus is the capital and the largest city of the American state of Ohio. Named for explorer Christopher Columbus, the city was founded in 1812 at the confluence of the Scioto and Olentangy rivers, and assumed the functions of state capital in 1816. -- Max & Erma's Restaurants, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :MAXE): Third Quarter Highlights: --110 basis point restaurant margin improvement leads to $277,000 improvement in 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. for third quarter; --Net loss for quarter and YTD See Year-to-date. YTD See year to date (YTD). periods cut significantly; --One company-owned restaurant planned for fourth quarter of fiscal 2006; --Two to three Company-owned and seven to eight franchised restaurants planned for fiscal 2007; --$8.25 million sale-leaseback commitment for three new locations signed.
Financial Summary (Unaudited)
(In thousands, except per share data)
12 Weeks Ended 40 Weeks Ended
----------------- -------------------
8/6/06 8/7/05 8/6/06 8/7/05
-------- -------- --------- ---------
Revenues $40,646 $42,813 $141,045 $143,108
======== ======== ========= =========
Operating Income (Loss) $14 $(263) $1,001 $21
======== ======== ========= =========
Loss Before Taxes $(811) $(846) $(1,333) $(1,826)
======== ======== ========= =========
Net Loss $(295) $(946) $(165) $(1,236)
======== ======== ========= =========
Net Loss per Diluted
Common Share $(0.12) $(0.37) $( 0.06) $(0.49)
======== ======== ========= =========
Diluted Shares Outstanding 2,552 2,547 2,551 2,534
======== ======== ========= =========
Max & Erma's Restaurants, Inc. (Nasdaq:MAXE) today reported third quarter 2006 financial results. Revenues for the third quarter of 2006 declined 5% to $40.6 million from $42.8 million for the third quarter of 2005. Net loss and net loss per share decreased from ($946,000) or $(0.37) per diluted share for the third quarter of 2005 to $(295,000) or $(0.12) per diluted share for the third quarter of 2006. Third quarter 2006 results are after a $339,000 pre-tax asset impairment charge. Year-to-date revenues decreased 1.4% from $143.1 million for 2005 to $141.0 million for 2006. Year-to-date net loss and net loss per share declined from $(1,236,000) or $(0.49) per diluted share for 2005 to $(165,000) or $(0.06) per diluted share for 2006. Results for 2006 and 2005 include $844,000 and $1,450,000 asset impairment charges, respectively Todd Barnum, Chairman and Chief Executive Officer of Max & Erma's said that: "Both the quarter and year-to-date periods reflect significant margin improvement at both the restaurant and corporate level, but the soft sales environment has negated much of the effect of our efforts. Excluding the asset impairment charge recorded during the third quarter of 2006 operating income increased over $600,000 from the third quarter of last year. Mr. Barnum said that the third quarter 2006 impairment charge was primarily for the write-off of restaurant assets at two restaurants scheduled to close in anticipation of their leases ending within the next six months." Mr. Barnum added "It remains a difficult sales environment. Same-store sales Same-store sales is a business term which refers to the revenue generated by one of a retail chain's specific outlets during a certain period of time (often a fiscal quarter or a particular shopping season), compared to an identical period in the past, usually in the previous year. were off 5.4% for the third quarter of 2006 and 3.2% year-to-date. Much of the decline is a result of the loss of sales associated with reduced couponing cou·pon·ing n. The sending out or turning in of coupons, especially the regular redemption of a manufacturer's coupon for cash. and discounting and that those sales were not profitable. Higher gasoline prices, utilities and health care costs have also cut into our customer's discretionary income Discretionary Income The amount of an individual's income available for spending after the essentials have been taken care of. Notes: Essentials are things like food, clothing, and shelter. ." The Company has recently received a $8.25 million sale-leaseback commitment for three future restaurant locations. In addition to one opening scheduled for the fourth quarter of 2006, the Company plans to open two to three locations in 2007. Mr. Barnum said that even more exciting are the plans for franchised openings. In 2007, the Company anticipates seven to eight franchised openings. He said one, possibly two restaurants will open in Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. , Nevada. Franchisees are also expected to open locations in Merrillville, Indiana Merrillville (IPA: [ˈmɛ.ɹəlˌvɪl]) is a town in Lake County, Indiana, United States. The population was 30,560 at the 2000 census. Merrillville is located in the east-central portion of Lake County. ; Norfolk and Virginia Beach, Virginia Virginia Beach is an independent city located in the South Hampton Roads area in the Commonwealth of Virginia, on the shores of the Chesapeake Bay and the Atlantic Ocean. It is the most populous city in Virginia and the 41st largest city in the United States, with an estimated ; St. Louis, Missouri; and Findlay and Sharonville, Ohio Sharonville is a city in Butler and Hamilton counties in the U.S. state of Ohio. The population was 13,804 at the 2000 census. Geography Sharonville is located at (39.281259, -84.397253)GR1. during 2007. As of August 6, 2006, Max & Erma's owns and operates 77 casual dining full-service restaurants in Akron, Canton, Columbus, Cleveland, Cincinnati, Dayton, Niles, and Toledo, Ohio
Indianapolis (IPA: [ˌɪndiəˈnæpəlɪs]) is the capital city of the U.S. ; Detroit, Ann Arbor Ann Arbor, city (1990 pop. 109,592), seat of Washtenaw co., S Mich., on the Huron River; inc. 1851. It is a research and educational center, with a large number of government and industrial research and development firms, many in high-technology fields such as , Grand Rapids Grand Rapids, city (1990 pop. 189,126), seat of Kent co., SW central Mich., on the Grand River; inc. 1850. The second largest city in the state, it is a distribution, wholesale, and industrial center for an area that yields fruit, dairy products, farm produce, , and Lansing, Michigan “Lansing” redirects here. For other uses, see Lansing (disambiguation). Lansing is the capital city of the U.S. state of Michigan, and the state's sixth largest city. ; Pittsburgh and Erie, Pennsylvania “Erie” redirects here. For other uses, see Erie (disambiguation). Erie (pronounced IPA: /ˈɪəri/) is a major industrial city on the shore of Lake Erie in the northwestern corner of the U.S. ; Lexington, Louisville, and Crestview Hills, Kentucky Crestview Hills is a city in Kenton County, Kentucky, United States. The population was 2,889 at the 2000 census. Geography Crestview Hills is located at (39.026398, -84.566543)GR1. ; Chicago, Illinois; Charlotte, North Carolina “Charlotte” redirects here. For other uses, see Charlotte (disambiguation). Charlotte is the largest city in the state of North Carolina and the 20th largest city in the United States. ; Atlanta, Georgia; Virginia Beach Virginia Beach, resort city (1990 pop. 393,069), independent and in no county, SE Va., on the Atlantic coast; inc. 1906. In 1963, Princess Anne co. and the former small town of Virginia Beach were merged, giving the present city an area of 302 sq mi (782 sq km). and Norfolk, Virginia Norfolk is an independent city in the Commonwealth of Virginia, in the United States of America. With a population of 234,403 as of the 2000 census, Norfolk is Virginia's second-largest incorporated city. . The Company also currently franchises 21 restaurants in Cleveland, Columbus, Cincinnati, Wilmington, Chillicothe, Dayton, and Sandusky, Ohio Sandusky is a city in the U.S. state of Ohio and the county seat of Erie CountyGR6. The municipality is located in northern Ohio and is situated on the shores of Lake Erie, half-way between Toledo to the west and Cleveland to the east. ; St. Louis, Missouri; Green Bay, Wisconsin Green Bay is the county seat of Brown County in the U.S. state of Wisconsin. The city is located at the head of its namesake Green Bay, a sub-basin of Lake Michigan, at the mouth of the Fox River. ; Philadelphia, Pennsylvania; Edinburgh, Evansville, Seymour, and Mishawaka, Indiana Mishawaka (IPA: [ˈmɪʃ.ʌ.ˌwɒ.kʌ]) is a city on the St. Joseph river and a twin city of South Bend in St. Joseph County, Indiana, United States. The population was 46,557 at the 2000 census. ; Richmond, Virginia Richmond IPA: [ɹɯʒmɐnɖ] is the capital of the Commonwealth of Virginia, in the United States. ; and Detroit, Michigan. During 2006, Franchisees closed three locations, two of which were test locations on the Ohio Turnpike involving limited table service and no alcoholic beverages. A Company-owned restaurant is under construction in Springboro, Ohio. Franchised restaurants are under construction in Norfolk, Virginia and Findlay, Ohio. The Company's common shares are traded on the NASDAQ National Market System under the symbol MAXE. This release includes "forward-looking" information statements, as defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, including the statements relating to future restaurant openings. Actual performance may differ materially from that projected in such statements. Major factors potentially affecting performance include a significant change in the performance of any existing units, the ability to obtain locations for, and complete construction of, additional restaurants at acceptable costs and the ability to obtain the services of qualified personnel at acceptable wages. The Cautionary statements regularly filed by the Company in its most recent annual report to the Securities and Exchange Commission on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and its Quarterly Reports to the SEC on Forms 10-Q are incorporated herein by reference. Investors are specifically referred to such Cautionary statements for a discussion of factors which could affect the Company's operations and forward-looking statements made in this communication.
- FINANCIAL HIGHLIGHTS FOLLOW -
MAX & ERMA'S RESTAURANTS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Twelve Weeks Ended Forty Weeks Ended
------------------------- ---------------------------
August 6, August 7, August 6, August 7,
2006 2005 2006 2005
------------ ------------ ------------- -------------
REVENUES: $40,646,117 $42,812,593 $141,044,845 $143,108,284
COSTS AND
EXPENSES:
Costs of Goods
Sold 10,226,514 10,885,092 35,979,771 36,495,241
Payroll and
Benefits 13,325,262 14,199,428 45,273,003 46,049,942
Other Operating
Expenses 13,414,347 14,170,918 46,760,200 47,226,112
Pre-Opening
Expenses 28,139 173,728 36,288 297,766
Impairment of
Assets 339,000 843,524 1,450,000
Administrative
Expenses 3,298,643 3,646,076 11,151,354 11,567,774
------------ ------------ ------------- -------------
Total Operating
Expenses 40,631,905 43,075,242 140,044,140 143,086,835
------------ ------------ ------------- -------------
Operating Income
(Loss) 14,212 (262,649) 1,000,705 21,449
Interest Expense 806,152 564,284 1,276,207 1,808,519
Minority Interest
in Income of
Affiliated
Partnership 19,251 19,251 57,754 38,503
------------ ------------ ------------- -------------
LOSS BEFORE
INCOME TAXES (811,191) (846,184) (1,333,256) (1,825,573)
INCOME TAXES
(CREDIT) (516,000) 100,000 (1,168,000) (590,000)
------------ ------------ ------------- -------------
NET LOSS $(295,191) $(946,184) $(165,256) $(1,235,573)
============ ============ ============= =============
NET LOSS PER SHARE
Basic $(0.12) $(0.37) $(0.06) $(0.49)
============ ============ ============= =============
Diluted $(0.12) $(0.37) $(0.06) $(0.49)
============ ============ ============= =============
SHARES OUTSTANDING:
Basic 2,551,974 2,546,778 2,550,731 2,534,427
============ ============ ============= =============
Diluted 2,551,974 2,546,778 2,550,731 2,534,427
============ ============ ============= =============
MAX & ERMA'S RESTAURANTS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
August 6, 2006
ASSETS (UNAUDITED) October 30, 2005
------ ---------------- ----------------
Current Assets:
Cash $2,223,064 $2,910,889
Inventories 1,274,540 1,401,368
Other Current Assets 2,435,441 2,387,896
---------------- ----------------
Total Current Assets 5,933,045 6,700,153
Property - At Cost 103,482,974 104,292,729
Less Accumulated Depreciation and
Amortization 51,329,985 48,686,165
---------------- ----------------
Property - Net 52,152,989 55,606,564
Other Assets 13,409,524 11,550,568
---------------- ----------------
Total $71,495,558 $73,857,285
================ ================
LIABILITIES AND STOCKHOLDERS' EQUITY
-----------------------------------
Current Liabilities:
Current Maturities of Long-Term
Obligations $2,729,519 $4,227,282
Accounts Payable 4,426,117 5,589,058
Accrued Payroll and Related Taxes 2,536,881 2,718,540
Accrued Liabilities 5,450,156 6,197,616
---------------- ----------------
Total Current Liabilities 15,142,673 18,732,496
Long-Term Obligations - Less Current
Maturities 43,057,114 41,817,482
Stockholders' Equity:
Preferred Stock - $.10 Par Value;
Authorized 500,000 Shares - None
Outstanding
Common Stock - $.10 Par Value;
Authorized 5,000,000 Shares,
Issued and Outstanding 2,551,974
Shares At 08/06/06 and 2,546,778
Shares at 10/30/05 255,196 254,677
Additional Paid-In Capital 831,426 678,225
Retained Earnings 12,209,149 12,374,405
---------------- ----------------
Total Stockholders' Equity 13,295,771 13,307,307
---------------- ----------------
Total $71,495,558 $73,857,285
================ ================
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion