Mexican Restaurants Inc. Announces Record 3rd Quarter Revenues and Profits.HOUSTON--(BUSINESS WIRE)--Nov. 14, 1999-- Mexican Mexican named after or originating in Mexico. Mexican axolotl see ambystomamexicanum. Mexican beaded lizard (Heloderma horridum Restaurants Inc. (Nasdaq:CASA Ca´sa n. 1. A house or mansion. I saw that Enriquez had made no attempt to modernize the old casa, and that even the garden was left in its lawless native luxuriance. - Bret Harte. ) today announced results for the third quarter ended October October: see month. 3, 1999 and a conference call. The Company's revenues for the third quarter of fiscal 1999 were up 33.3% to $15.8 million over revenues of $11.8 million for the same quarter a year ago. Restaurant sales for the third quarter of 1999 were up 33.3% to $15.4 million compared with $11.6 million for the same quarter a year ago. La Senorita, which was acquired on April 30, 1999, contributed $2.2 million in restaurant revenues in the third quarter of 1999. Six restaurants were opened, one restaurant was acquired from a franchisee and two restaurants were closed (lease expirations) since the end of the third quarter of fiscal 1998. Total system sales System sales is a business term used in the franchising industry. Franchisors provide supplies, marketing and administration services to franchisees in return for a part of the franchisees' revenues. Some franchisors also operate some outlets directly. at restaurants operating in both fiscal quarters ("same stores") decreased 1.2%. Company-owned 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. decreased 2.5%. Franchised-owned same-store sales for the quarter increased 0.4%. Due to the Company's focus of its development of higher volume Tortuga Coastal Cantina can·ti·na n. Southwestern U.S. A bar that serves liquor. [Spanish, canteen, from Italian, wine cellar.] and La Senorita restaurants, company-owned average weekly unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. increased 9.3%. For the third quarter ended October 3, 1999, net income was $532,501 or $0.15 per share compared to $505,245 or $0.14 per share the same quarter a year ago. The prior year's third quarter, however, included a $60,000 one time recovery of previously taken special charges. The Company operates three restaurants in the State of Idaho and one restaurant in the State of Tennessee Tennessee, state, United States Tennessee (tĕn`əsē', tĕn'əsē`), state in the south-central United States. which it does not consider to be part of the Company's core business. Those four restaurants lost a combined $70,000 before taxes in the third quarter. Management is reviewing various options regarding these restaurants. Year to date net income was $1,685,431 or $0.47 per share compared to $1,484,952 or $0.41 per share the same period last year. Year to date net income for fiscal 1999 includes infrequently in·fre·quent adj. 1. Not occurring regularly; occasional or rare: an infrequent guest. 2. occurring income and expense items of $295,289 ($0.05 per share) and year to date net income for fiscal 1998 includes extraordinary net income of $39,975 ($0.01 per share). For the third quarter ended October 3, 1999, 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. increased $215,804 or 28.1% to $983,464 compared with the same quarter a year ago. Again, the prior year's third quarter included a $60,000 one time recovery of previously taken special charges. Year to date operating income increased $303,599 or 11.3% to $2,979,410 compared with the same period a year ago. Mr. Neeb, the Company's chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , added, "I continue to be pleased with the progress of Tortuga Coastal Cantina and the smooth integration of La Senorita, two key elements of our growth strategy. I am, of course, disappointed in the decline in the same-store sales of the core restaurants. But I think the marketing programs planned for next fiscal year will provide the necessary improvements for that part of our business." Mr. Glowacki, the Company's president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , commenting on the third quarter said, "We are extremely pleased with the continued increases in average weekly sales which reflects the change in our business to the higher volume Tortuga Coastal Cantinas and La Senorita concepts. Average weekly unit sales increased 9.3% compared with the third quarter a year ago. Since December 1998, the Company has opened five Tortuga Coastal Cantinas, with sales greater than expected." The Company has scheduled a conference call for Monday, November 15, 1999 to discuss the third quarter financial results. The call will last approximately 30 minutes, including the time allotted al·lot tr.v. al·lot·ted, al·lot·ting, al·lots 1. To parcel out; distribute or apportion: allotting land to homesteaders; allot blame. 2. for taking questions from callers. It will begin at 10:00 central daylight time. Inquiries regarding the call should be directed to Teresa Atkinson at 713/943-7574. An online simulcast of the conference call will be made available on www.streetfusion.com, and an on demand replay of the call will be available one hour after the call. Mexican Restaurants Inc. operates and franchises 90 Mexican restaurants. The current system includes 55 Company-operated restaurants and 36 franchisee-operated restaurants. Third quarter restaurants opened were a Tortuga Coastal Cantina in San Marcos, Texas San Marcos is a city in Texas, USA. The population was 34,733 at the 2000 census. It is the county seat of Hays County.GR6 Texas State University-San Marcos (formerly Southwest Texas State University) is located in the city. , (Company-owned) and a Casa Ole in Tyler, Texas Tyler is the county seat of Smith County in East Texas, United States. The city is named for President John Tyler in recognition of his support for Texas's admission to the United States. (franchise-owned). Special Note Regarding 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. This Form 10-Q Form 10-Q See 10-Q. contains forward-looking statements within the meaning of 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. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: accelerating growth strategy; dependence on executive officers; geographic concentration; increasing susceptibility susceptibility the state of being susceptible. Refers usually to infectious disease but may be to physical factors such as wetting or to psychological factors such as harassment. to adverse conditions in the region; changes in consumer tastes and eating habits; national, regional or local economic and real estate conditions; demographic trends; inclement in·clem·ent adj. 1. Stormy: inclement weather. 2. Showing no clemency; unmerciful. in·clem weather; traffic patterns; the type, number and location of competing restaurants; inflation; increased food, labor and benefit costs; the availability of experienced management and hourly employees; seasonality and the timing of new restaurant openings; changes in governmental regulations; dram shop Dram shop or dramshop is a legal term in the United States referring to a bar, tavern or the like where alcoholic beverages are sold. Traditionally, it referred to a shop where spirits were sold by the dram, a small unit of liquid. exposure; and other factors not yet experienced by the Company. The use of words such as "believes", "anticipates", "expects", "intends" and similar expressions are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. Readers are urged to carefully review and consider the various disclosures made by the Company in this report and in the Company's Annual Report and 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. for the fiscal year ended January 3, 1999, that attempt to advise interested parties of the risks and factors that may affect the Company's business.
Mexican Restaurants Inc.
Consolidated Statements of Income
(Unaudited)
13-Week 13-Week 39-Week 39-Week
Period Ended Period Ended Period Ended Period Ended
10/03/99 09/27/98 10/03/99 09/27/98
------------ ------------ ------------ ------------
Revenues:
Restaurant sales $15,408,110 $11,561,378 $41,468,895 $34,758,437
Franchise fees
and royalties 343,592 262,585 965,521 782,576
Other 31,041 12,669 149,652 29,610
----------- ------------ ------------ ------------
15,782,743 11,836,632 42,584,068 35,570,623
----------- ------------ ------------ ------------
Costs and expenses:
Cost of sales 4,406,606 3,188,867 11,656,877 9,464,030
Labor 5,174,144 3,787,316 13,986,950 11,568,666
Restaurant
operating
expenses 3,468,365 2,670,493 9,175,114 7,526,042
General and
administrative 1,199,055 1,016,160 3,710,933 3,117,399
Depreciation and
amortization 443,538 303,735 1,125,301 987,362
Pre-open costs 107,571 102,401 244,772 231,312
----------- ------------ ------------ ------------
14,799,279 11,068,972 39,899,947 32,894,812
Infrequently
occurring income
(expense) items,
net -- -- 295,289 --
----------- ------------ ------------ ------------
Operating income 983,464 767,660 2,979,410 2,675,811
----------- ------------ ------------ ------------
Other income
(expense):
Interest income 3,121 9,826 14,580 21,593
Interest expense (128,529) 12,172 (334,656) (417,753)
Other, net 7,800 31,878 79,416 83,755
----------- ------------ ------------ ------------
(117,608) 53,876 (240,660) (312,405)
----------- ------------ ------------ ------------
Income before
income tax
expense and
extraordinary
item 865,856 821,536 2,738,750 2,363,406
Income tax
expense 333,355 316,291 1,053,319 918,429
----------- ------------ ------------ ------------
Income before
extraordinary
item 532,501 505,245 1,685,431 1,444,977
Extraordinary
item -- -- -- 39,975
----------- ------------ ------------ ------------
Net income $532,501 $505,245 $1,685,431 $1,484,952
=========== ============ ============ ============
Basic and diluted
income per share
(before
extraordinary
item) $0.15 $0.14 $0.47 $0.40
=========== ============ ============ ============
Basic and diluted
income per share
(extraordinary
item) $ -- $ -- $ -- $0.01
=========== ============ ============ ============
Basic and diluted
income per share $0.15 $0.14 $0.47 $0.41
=========== ============ ============ ============
Weighted average
number of shares
(diluted) 3,609,293 3,604,827 3,602,213 3,604,777
=========== ============ ============ ============
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