FURR'S/BISHOP'S ANNOUNCES RESULTS
FURR'S/BISHOP'S ANNOUNCES RESULTS LUBBOCK, Texas, Nov. 12 /PRNewswire/ -- Furr's/Bishop's,
Incorporated (NYSE: CHI) announced today that revenues for the third fiscal quarter ended Sept. 28, 1991, were $68.7 million, a decrease of $3.0 million or 4.2 percent from the third quarter of 1990.
Revenues decreased primarily as a result of a net of four fewer restaurants being open and lower average weekly guest traffic which was partially offset by an increase in the average guest ticket. Net loss for the third quarter of 1991 was $2.2 million or $.36 per common share as compared to a net loss of $876,000 or $.24 per common share for the 13 weeks ended Sept. 29, 1990. Selling, general and administrative expense was lower by $1.3 million in the third quarter of 1991 compared with the same period in 1990. Revenues for the 39 weeks ended Sept. 28, 1991, were $201.9 million, a decrease of $14.5 million or 6.7 percent from revenues in the same period of 1990. Net loss for the 39 weeks was $9.7 million or $1.36 per common share as compared to net income of $2.1 million for the same period of 1990 or a net loss of $.31 per common share. The results of operations for the first 39 weeks of 1991 include non-recurring charges of $2.3 million. The war in the Persian Gulf, the national economic recession and intense competition in the food service industry negatively impacted revenues and earnings for the period. The company said that recent trends in most of October show sales in comparable cafeterias have exceeded prior year levels. Furr's/Bishop's also announced that Cafeteria Operators, L.P., an indirect subsidiary of Furr's/Bishop's, continues to be in negotiations with the holders of Cafeteria Operators' $60 million 10.25 percent Series A senior notes due 1997 and $90 million 10.75 percent Series B senior notes due 2007 and a commercial bank with respect to, among other things, restructuring Cafeteria Operators' indebtedness. In the restructuring under discussion, Cafeteria Operators would, among other things, defer interest payments on the Series A and Series B notes and the bank debt though at least Dec. 31, 1992, as well as defer principal payments for several years. Although it is contemplated that no outstanding debt would be forgiven or exchanged for equity, and equity security may be issued to the noteholders and to Cafeteria Operators' bank lender in connection with the proposed debt restructuring. In connection with such debt deferral, Cafeteria Operators would spend approximately $75 million during the next five years to expand Cafeteria Operators' specialty restaurant operations, refurbish most of Cafeteria Operators' existing cafeterias and build new cafeterias. There can be no assurance that any debt restructuring will be effected. Furr's/Bishop's is one of the largest operators of cafeterias in the United States, based on the number of cafeterias operated, with 123 cafeterias in ten states in the Southwest, West and Midwest under the name Furr's and 22 cafeterias in seven states in the Midwest under the name Bishop's. FURR'S/BISHOP'S INCORPORATED FINANCIAL DATA (UNAUDITED) (Amounts in thousands except per share amounts) Thirteen Weeks Ended Thirty-Nine Weeks Ended Sept. 28, Sept. 29, Sept. 28, Sept. 29, 1991 1990 1991 1990 Revenues $ 68,738 $ 71,785 $ 201,871 $ 216,385 Net income (loss) $ (2,166) $ (876) $ (9,722) $ 2,130 Preferred stock dividend requirement (1,870) (1,870) (5,609) (5,609) Net income (loss) allocable to common stock $ (4,036) $ (2,746) $ (15,331) $ (3,479) Total number of common shares outstanding 11,326,291 11,326,291 11,326,291 11,326,291 Net income (loss) per share of common stock $ (0.36) $ (0.24) $ (1.36) $ (0.31) All per share amounts are after a provision for dividends on the preferred shares and were made using the outstanding common shares of Furr's/Bishop's at Sept. 28, 1991, as though the shares had been outstanding for all of the periods reported. The comments relating to the results of operations for the 39 weeks relate to the combined operating results of Furr's/Bishop's Cafeterias, L.P. (and its operating subsidiaries), Cavalcade Holdings, Inc. and Cavalcade & Co., Inc. (together the Predecessor Entities) for the first quarter of 1991 and Furr's/Bishop's for the second and third quarters of 1991 compared to the results of operations for the Predecessor Entities for 1990. The comments relating to the results of operations for the 13 weeks ended Sept. 28, 1991, relate to the operating results of FBI for the third quarter of 1991 compared to the operating results of the Predecessor Entities for the third quarter of 1990. NOTE: The results of operations of each period have been restated to reflect the results of operations of Furr's/Bishop's Cageterias, L.P. an its operating subsidiaries, Cavalcade Holdings, Inc. and Cavalcade & Co., Inc. under the pooling of interest method of accounting. -0- 11/12/91 /CONTACT: Alton Smith, chief financial officer of Furr's/Bishop's, 806-792-7151/ (CHI) CO: Furr's/Bishop's, Incorporated ST: Texas IN: LEI SU: ERN PS -- NY101 -- 3706 11/12/91 19:29 EST
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|Date:||Nov 12, 1991|
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