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SIZZLER INTERNATIONAL INC. REPORTS LOWER REVENUES AND NET INCOME IN ITS SECOND QUARTER

 LOS ANGELES, Nov. 20 ~PRNewswire~ -- Sizzler International Inc. (NYSE: SZ) reported lower revenues and net income in its second quarter.
 For the 12 weeks ended Oct. 18, 1992, net income was $1,482,000, or 5 cents per share, down from $5,556,000, or 19 cents per share in last year's second quarter. Revenues for the quarter were $118,459,000, as compared to $124,471,000 in the same period a year ago. Stated on a percentage basis, the company's 5 percent decline in revenues during the second quarter resulted in a 73 percent decline in net income when compared to operating results in the second quarter a year ago. The decline in revenues was attributable primarily to an approximate 13 percent decrease in comparable domestic restaurant sales and customer counts caused by the continuing impact of the recession in a highly competitive marketplace, especially on the West Coast.
 The material decline in net income during the second quarter was attributable primarily to declining comparable restaurants sales as well as increases in food and labor costs. These cost increases are, in part, because of the company's efforts to re-establish its quality image in order to regain former customers and reverse declines in customer counts. Such efforts include the retraining of restaurant operating staff, new product introductions and higher cost promotional programs.
 For the 24 weeks, a loss of $7,614,000, or 26 cents per share, was recorded, compared to net income of $12,594,000, or 42 cents per share, in the prior year. Revenues were $241,201,000 in the first 24 weeks of this fiscal year vs. $250,974,000 in the corresponding period last fiscal year. The loss for the 24 weeks resulted from an after-tax charge of $12.2 million, or 42 cents per share, taken in the first quarter of this year. The charge was related to the closure of certain underperforming Sizzler restaurants and the costs of developing a new, full-service restaurant concept.
 Richard P. Bermingham, president and chief executive officer, commented: "Internationally, we achieved modest growth in Australia despite weakness in the economy there. However, these gains were more than offset by an 8 percent decrease in the value of the Australian dollar. International expansion continues to be a key element in Sizzler's strategy. Since the second quarter last year, we have added nine company-operated Sizzlers, three joint ventured Sizzlers, 17 franchised Sizzler restaurants in 10 countries, including Australia, and eight Kentucky Fried Chicken restaurants in Australia. At the end of the most recent quarter, our international division included 96 company-operated, joint ventured and franchised Sizzlers and 78 KFC restaurants.
 "On the domestic front, we are upgrading quality of product and service, along with carefully targeted new promotional strategies. For example, a campaign to build our lunch business, featuring appealing, high-value menu specialties, has met with encouraging success. We intend to continue promoting actively as we make further refinements in our menu and operations and continue to close unprofitable restaurants as announced at the end of the first quarter.
 "Also, development of the new concept continues to progress with prototype restaurants opening in each of the third and fourth quarters. As previously announced, the new concept is part of a strategy to introduce a full-service, higher check average restaurant into existing Sizzler locations that will complement, rather than cannibalize, other nearby Sizzler restaurants."
 The board of directors declared the regular quarterly cash dividend of 4 cents per share, payable Jan. 11, 1993, to shareholders of record Dec. 21, 1992.
 Sizzler International Inc. operates or licenses 722 Sizzler restaurants worldwide, consisting of 280 company-operated, seven joint-ventured, and 435 franchised restaurants. In addition, the company operates 78 Kentucky Fried Chicken restaurants in Queensland, Australia.
 SIZZLER INTERNATIONAL INC.
 Summary of Results
 Consolidated Statements of Income
 (Unaudited)
 (Dollars in thousands, except per share data)
 For the 12 weeks ended Pct. Increase
 Oct. 18, 1992 Oct. 13, 1991 (Decrease)
 Systemwide sales $249,475 $257,537 (3.1) pct.
 Revenues $118,459 $124,471 (4.8) pct.
 Net income $1,482 $5,556 (73.3) pct.
 Net income per
 common share $0.05 $0.19 (73.7) pct.
 Common and common
 equivalent shares 29,194,000 29,748,000 (1.9) pct.
 Common shares,
 assuming full
 dilution 29,194,000 29,753,000 (1.9) pct.
 For the 24 weeks ended Pct. Increase
 Oct. 18, 1992 Oct. 13, 1991 (Decrease)
 Systemwide sales $503,802 $524,209 (3.9) pct.
 Revenues $241,201 $250,974 (3.9) pct.
 Net income (loss) ($7,614)(a) $12,594 (160.5) pct.
 Net income (loss) per
 common share ($0.26)(a) $0.42 (161.9) pct.
 Common and common
 equivalent shares 29,178,000 29,793,000 (2.1) pct.
 Common shares,
 assuming full
 dilution 29,178,000 29,795,000 (2.1) pct.
 (a) Includes an after-tax reserve of $12.2 million, 42 cents per share, related to the closure of underperforming Sizzler restaurants and the costs of developing a new full-service restaurant concept.
 -0- 11~20~92
 ~CONTACT: Christopher R. Thomas, executive VP-finance of Sizzler, 310-827-2300~
 (SZ)


CO: Sizzler International Inc. ST: California IN: LEI SU: ERN DIV

JB-LS -- LA005 -- 3239 11~20~92 08:32 EST
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Date:Nov 20, 1992
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