Printer Friendly

CARL KARCHER ENTERPRISES REPORTS INCREASED EARNINGS FOR THIRD QUARTER

 ANAHEIM, Calif., Dec. 2 /PRNewswire/ -- Carl Karcher Enterprises Inc. (NASDAQ: CARL) today reported an 18 percent increase in net income for its third fiscal quarter.
 For the 12 weeks ended Nov. 1, 1993, net income advanced to $1.5 million, or $.08 per share. The company earned $1.3 million, or $.07 per share, for the comparable period last year. Pretax profit for the third quarter increased 38 percent to $1.9 million from $1.3 million. The current quarter results included a $1.7 million charge for the previously announced future retirement benefits granted to Carl N. Karcher. Exclusive of other income and post-employment benefits in both periods, pretax profit improved $3.9 million during the third quarter over the same period a year ago.
 Sales by company-operated restaurants and revenues from franchised and licensed restaurants for the third quarter amounted to $106.4 million, compared with $112.6 million for the same period last year. Recessionary factors throughout California continued to impact sales, which declined 7.4 percent on a same-store basis. This is an improvement from the 9.2 percent decline in the preceding second quarter. Customer transaction trends also improved during the third quarter, registering a 1.8 percent decline vs. a 3.1 percent decline in the second quarter.
 For the most recent year-to-date period, net income was $4.5 million, or $.25 per share, on revenues of $354.5 million. For the comparable period a year ago, net income was $5.3 million, or $.28 per share, on revenues of $396.9 million. Results for the prior year period were restated to include a $2.5 million charge, equal to $.13 per share, reflecting a change in accounting for income taxes to comply with Statement of Financial Accounting Standards No. 109.
 Donald E. Doyle, president and chief executive officer, said the earnings growth in the third quarter was attributable to the progress being made with the company's restructuring plan. He noted margins from company-store operations improved 30 percent, or $3.8 million, during the third quarter, reflecting significant improvements in labor and benefit costs, repairs and maintenance costs, and other store operating costs.
 "The company's core earnings growth is a significant, positive indicator that management's strategic plan is taking hold," said Doyle. "We are pleased by the 30 percent increase in company-store margins. And, while same-store sales performance continues to be a challenge, we are encouraged by the gradual improvement in the trends in this area."
 During the quarter, Doyle said the company expanded its testing of value pricing programs aimed at making Carl's Jr. more competitive in the marketplace. He said in those restaurants where the tests are being conducted, customer counts are consistently outperforming the rest of the system. Doyle also said the company is making progress on several new products for introduction in 1994.
 Carl Karcher Enterprises Inc. operates Carl's Jr. restaurants, a regional quick-service chain known for its varied menu and healthful, premium quality products. Founded in 1941, the company, its franchisees and licensees operate 649 restaurants primarily in California, Nevada, Oregon, Arizona, and Mexico.
 CARL KARCHER ENTERPRISES INC.
 Statement of Income
 (In thousands except per share data)
 (Unaudited)
 12 Weeks Ended
 Nov. 1, 1993 Nov. 2, 1992
 $ Pct $ Pct
 Revenues:
 Sales by company-
 operated restaurants $88,586 83.2 pct $94,387 81.8 pct
 Revenues from
 franchised and
 licensed restaurants 17,850 16.8 18,175 15.8
 Revenues from other
 outside parties --- --- 2,788 2.4
 Total revenues 106,436 100.0 115,350 100.0
 Operating costs
 and expenses:
 Company-operated
 restaurants:
 Food and packaging 27,434 25.8 29,360 25.4
 Payroll and other
 employee benefits 26,747 25.1 30,900 26.8
 Occupancy and other
 operating expenses 17,912 16.8 21,427 18.6
 Total 72,093 67.7 81,687 70.8
 Franchised and
 licensed restaurants 16,148 15.2 16,632 14.4
 Other outside parties --- --- 2,696 2.3
 Advertising expenses 4,977 4.7 4,381 3.8
 General and
 administrative
 expenses 8,282 7.8 8,004 7.0
 Post-employment
 benefits 1,668 1.6 --- ---
 Total operating
 costs and expenses 103,168 97.0 113,400 98.3
 Operating income 3,268 3.0 1,950 1.7
 Interest expense (2,443) (2.3) (3,368) (2.9)
 Other income, net 1,029 1.0 2,762 2.4
 Income before income
 taxes and cumulative
 effect of change in
 accounting principle 1,854 1.7 1,344 1.2
 Income tax expense 377 0.3 91 0.1
 Income before cumulative
 effect of change in
 accounting principle 1,477 1.4 1,253 1.1
 Cumulative effect of change
 in accounting principle --- --- --- ---
 Net income $1,477 1.4 pct $1,253 1.1 pct
 Net income per share:
 Income before cumulative
 effect of change in
 accounting principle $0.08 $0.07
 Cumulative effect of change
 in accounting principle --- ---
 Total $0.08 $0.07
 Weighted average shares 18,468 18,578
 40 Weeks Ended
 Nov. 1, 1993 Nov. 2, 1992
 $ Pct $ Pct
 Revenues:
 Sales by company-
 operated restaurants $293,819 82.9 pct $326,904 82.4 pct
 Revenues from franchised
 and licensed restaurants 60,709 17.1 58,361 14.7
 Revenues from other
 outside parties --- --- 11,622 2.9
 Total revenues 354,528 100.0 396,887 100.0
 Operating costs and expenses:
 Company-operated restaurants:
 Food and packaging 90,783 25.6 100,415 25.3
 Payroll and other
 employee benefits 92,375 26.1 107,521 27.1
 Occupancy and other
 operating expenses 64,210 18.1 72,000 18.1
 Total 247,368 69.8 279,936 70.5
 Franchised and licensed
 restaurants 54,834 15.4 52,653 13.3
 Other outside parties --- --- 11,291 2.8
 Advertising expenses 15,290 4.3 14,942 3.8
 General and administrative
 expenses 26,662 7.5 28,754 7.3
 Post-employment benefits 1,668 0.5 --- ---
 Total operating
 costs and expenses 345,822 97.5 387,576 97.7
 Operating income 8,706 2.5 9,311 2.3
 Interest expense (7,991) (2.3) (11,225) (2.8)
 Other income, net 4,988 1.4 12,250 3.1
 Income before income taxes
 and cumulative effect
 of change in
 accounting principle 5,703 1.6 10,336 2.6
 Income tax expense 1,156 0.3 2,629 0.7
 Income before cumulative
 effect of change in
 accounting principle 4,547 1.3 7,707 1.9
 Cumulative effect of change
 in accounting principle --- --- 2,450 0.6
 Net income $4,547 1.3 pct $5,257 1.3 pct
 Net income per share:
 Income before cumulative
 effect of change in
 accounting principle $0.25 $0.41
 Cumulative effect of change
 in accounting principle --- ($0.13)
 Total $0.25 $0.28
 Weighted average shares 18,451 18,517
 -0- 12/2/93
 /CONTACT: Loren Pannier, CFO, Carl Karcher Enterprises, 714-778-7109; or Roger Pondel of Pondel Parsons & Wilkinson, 310-207-9300/
 (CARL)


CO: Carl Karcher Enterprises Inc. ST: California IN: FOD SU: ERN

LS-LM -- LA031 -- 9971 12/02/93 16:39 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Dec 2, 1993
Words:1186
Previous Article:UNIVERSAL STUDIOS FLORIDA NAMES FRED J. LOUNSBERRY EXECUTIVE VICE PRESIDENT OF MARKETING
Next Article:RIVERWOOD INTERNATIONAL DECLARES COMMON STOCK DIVIDEND
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters