NE Restaurant Company, Inc. Announces 79% Increase In Second Quarter Operating Income.
NE Restaurant Company, Inc. (NERCO) reported total operating income 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, 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 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, 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, 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 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,
Cash 5,577 7,579
Receivables 1,459 1,631
Inventories 2,088 1,804
Other current assets 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
Accounts payable 7,841 13,721
Accrued expenses 25,278 23,338
Other current liabilities 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
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|Date:||Aug 4, 2000|
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