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CONSUL RESTAURANT REPORTS THIRD-QUARTER RESULTS, PENDING SALE OF CANADIAN OPERATIONS

 CONSUL RESTAURANT REPORTS THIRD-QUARTER
 RESULTS, PENDING SALE OF CANADIAN OPERATIONS
 MINNEAPOLIS, April 17 /PRNewswire/ -- Consul Restaurant Corporation (NASDAQ: CNSLQ) today reported financial results for the third quarter and nine months ended Feb. 29, 1992, and the pending sale of its Canadian operations.
 Revenues for the third quarter decreased 20 percent to $16.0 million from $20.0 million a year ago. The decline in revenues was related to the closing of unprofitable restaurants. Comparable-unit revenues, from ongoing operations, increased almost two percent for the three months. The company had a loss for the quarter of $656,000, or 4 cents per share, compared with a year-ago loss of $549,000, also 4 cents per share based on a smaller number of shares outstanding. The loss in the recent quarter included $198,000 of reorganization expense.
 Revenues for the nine months declined 22 percent to $51.8 million from $66.5 million a year ago. The net loss totaled $1.6 million, or 10 cents per share, compared with a loss of $4.8 million, or 37 cents per share, for the year-ago period. The loss last year included a reserve for restaurant disposals of $3 million.
 During the 12 months ended Feb. 29, 1992, the company closed 14 restaurants: nine Chi-Chi's dinnerhouse restaurants in Canada, four el Pronto! quick-service units and a Magnolia full-service restaurant. During this period the company also sold its foodservice division, and was required to operate all but two of its Canadian units under the Canadian bankruptcy trustee's control for approximately four months. All of these factors contributed materially to the decline in revenues.
 During the third quarter, the company entered into an agreement to sell its remaining Canadian operations, and anticipates the sale will be completed by the end of April. The sale, for approximately $4.8 million (U.S.), has been approved by the U.S. Bankruptcy Court. Net of repayment of debt, closing costs and accrued expenses, the sale is expected to generate cash proceeds of $2.4 million plus notes for $1.2 million due within 12 months.
 Following the disposition of Canadian units, Consul will continue to operate 25 Chi-Chi's restaurants and three el Pronto! units in the U.S. Consul Restaurant Corporation April 17, 1992.
 CONSOLIDATED STATEMENTS OF OPERATIONS
 CONSUL RESTAURANT CORPORATION AND SUBSIDIARIES
 (Unaudited)
 Third Quarter Ended Nine Months Ended
 Feb. 29, Feb. 28, Feb. 29, Feb. 28,
 1992 1991 1992 1991
 REVENUES $16,040,000 $20,018,000 $51,776,000 $66,512,000
 COSTS AND EXPENSES:
 Cost of food
 and beverage 4,459,000 5,431,000 14,394,000 18,597,000
 Restaurant operating
 expenses 10,234,000 13,088,000 33,019,000 42,959,000
 Corporate
 expenses 1,023,000 1,063,000 2,928,000 3,691,000
 Franchise
 royalties 457,000 463,000 1,476,000 1,552,000
 Interest, net 280,000 477,000 1,191,000 1,396,000
 Reserve for
 restaurant disposals -- -- -- 3,002,000
 Reorganization
 expense 198,000 -- 198,000 --
 Total costs and
 expenses 16,651,000 20,522,000 53,206,000 71,197,000
 INCOME (LOSS) BEFORE
 INCOME TAXES (611,000) (504,000) (1,430,000) (4,685,000)
 Provision for income
 taxes 45,000 45,000 135,000 135,000
 NET INCOME
 (LOSS) $ (656,000) $ (549,000) $(1,565,000) $(4,820,000)
 Net earnings (loss)
 per common share $(0.04) $(0.04) $(0.10) $(0.37)
 Weighted average common
 shares
 outstanding 15,405,000 13,424,000 15,361,000 12,855,000
 -0- 4/17/92
 /CONTACT: Robert A. Lamp of Consul Restaurant, 612-851-3388; or John Beardsley of Padilla Speer Beardsley, 612-871-8877, or 212-752-8338, for Consul Restaurant/
 (CNSLQ) CO: Consul Restaurant Corporation ST: Minnesota IN: ENT SU: ERN


KH -- MN008 -- 9773 04/17/92 18:29 EDT
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Publication:PR Newswire
Date:Apr 17, 1992
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