NE Restaurant Company, Inc. Announces 79% Increase In Second Quarter Operating Income.
MAYNARD, Mass., Aug. 4 /PRNewswire/ --
NE Restaurant Company, Inc. (NERCO NERCO North East Recorder Orchestra (England) ) reported total operating income Operating Income
The profit realized from a business' own operations.
This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. increased 79.2% to $3.2 million in the second quarter ended June 28, 2000 from $1.8 million for the same period last year. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (Earnings Before Interest, Taxes, Depreciation, Amortization and Preopening Expenses) increased 21.7% to $7.8 million in the second quarter compared to $6.4 million for the same period last year. For the six months ended June 28, 2000, operating income increased 83.8% to $4.7 million from $2.6 million and EBITDA increased 21.2% to $13.8 million from $11.4 million.
Total net sales Net Sales
The amount a seller receives from the buyer after costs associated with the sale are deducted.
This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight increased 5.5% to $71.3 million in the second quarter from $67.6 million for the same period last year. Exclusive of the 17 underperforming restaurants closed at Bertucci's as of January 31, 2000, total net sales increased 12.8% in the second quarter. Comparable restaurant net sales in the second quarter increased 7.7%: 10.2% at Bertucci's, 5.5% at Chili's and 1.2% at On The Border. For the six months, total net sales increased 5.9% to $138.4 million from $130.7 million and comparable restaurant net sales increased 6.7%: 7.7% at Bertucci's, 6.0% at Chili's and 1.6% at On The Border.
Ben Jacobson Ben Jacobson is the head men's basketball coach at the University of Northern Iowa. He took over after Greg McDermott left in 2006 to coach at Iowa State University. Head coaching record
Season Team Overall
Northern Iowa (Missouri Valley Conference) , Chairman and President of NERCO, stated "We are very pleased that our operating results have improved dramatically. The improvement at Bertucci's is especially important as we prepare for expansion of the concept later this year. The comparable restaurant net sales increases at Bertucci's are the result of new and exciting menu item introductions that will expand and enhance the dining experience of all of our guests, combined with innovative marketing programs and improved operations at our restaurants. We are also pleased to report that Chili's continues to generate strong comparable restaurant net sales increases with corresponding improvement in cash contribution."
During the second quarter, the Company opened one Chili's restaurant in Raynham, Massachusetts.
NERCO is a leading operator of full-service, casual dining restaurants in the Northeast. The Company's wholly owned subsidiary Wholly Owned Subsidiary
A subsidiary whose parent company owns 100% of its common stock.
In other words, the parent company owns the company outright and there are no minority owners. , Bertucci's Restaurant Corp., owns and operates restaurants under the name Bertucci's Brick Oven Pizzeria. The Company also develops and operates Chili's and On The Border restaurants under franchise agreements with Brinker International, Inc. The Company is the world's largest Chili's franchisee. There were 72 Bertucci's restaurants, 39 Chili's restaurants, seven On The Border restaurants and one Sal & Vinnie's Sicilian Steakhouse in operation as of June 28, 2000.
This press release is comprised of statements relating to future results of the Company (including development plans, projections and business trends) that are "forward-looking 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. Actual results may differ materially from those projected as a result of certain risks set forth in the Company's Form 10K filed with the Securities and Exchange Commission for the year ended December 29, 1999.
FINANCIAL SUMMARY (Unaudited Results)
NE RESTAURANT COMPANY, INC.
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Six Months Ended
June 28, June 30, June 28, June 30,
2000 1999 2000 1999
Net Sales 71,345 67,648 138,380 130,682
Cost of Sales and Expenses
Cost of sales 18,799 18,273 36,362 35,626
Operating expenses 40,614 39,224 79,572 76,217
expenses 4,135 3,743 8,623 7,432
expenses 4,559 4,601 9,089 8,833
Total cost of sales
and expenses 68,107 65,841 133,646 128,108
Income from operations 3,238 1,807 4,734 2,574
Interest expense, net 3,706 3,431 7,380 6,794
Loss before income
tax benefit (468) (1,624) (2,646) (4,220)
Income tax benefit (17) (461) (723) (1,406)
Loss before cumulative
effect of change in
accounting principle (451) (1,163) (1,923) (2,814)
Cumulative effect of
change in accounting
principle (net of tax) -- (678)
Net loss (451) (1,163) (1,923) (3,492)
Basic and diluted
loss per share $(0.15) $(0.39) $(0.64) $(1.17)
shares outstanding 2,981,281 2,977,026 2,983,966 2,977,026
Other Financial Data
EBITDA 7,797 6,408 13,823 11,408
Total Debt 139,800 134,820
Ratio of Total Debt to
Rolling 12-Month EBITDA 5.36:1.00 5.94:1.00
NE RESTAURANT COMPANY, INC.
CONSOLIDATED BALANCE SHEETS($000's)
As of As of
June 28, December 29,
Current Assets Current Assets
Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. :
Cash 5,577 7,579
Receivables 1,459 1,631
Inventories 2,088 1,804
Other current assets Other Current Assets
A balance sheet item that includes the value of non-cash assets due within one year.
Examples are things like prepaid expenses and accounts receivable. 594 2,516
Deferred income taxes 8,648 8,648
Total current assets 18,366 22,178
Net property and equipment 117,821 118,010
Other long term assets 46,762 49,390
TOTAL ASSETS $182,949 $ 189,578
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities Current Liabilities
Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. :
Accounts payable 7,841 13,721
Accrued expenses 25,278 23,338
Other current liabilities Other Current Liabilities
A balance sheet entry used by companies to group together current liabilities that are not assigned to common liabilities such as debt obligations or accounts payable. 1,328 1,328
Total current liabiliites 34,447 38,387
Long term debt 138,472 138,075
Other long term liabilities 4,498 5,590
Total liabilities 177,417 182,052
Stockholders' Equity 5,532 7,526
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $182,949 $189,578