HOMESTYLE BUFFET REPORTS THIRD QUARTER LOSS
HOMESTYLE BUFFET REPORTS THIRD QUARTER LOSS PALM HARBOR, Fla., Nov. 9 /PRNewswire/ -- Homestyle Buffet, Inc.
(NASDAQ: HBUF) today reported sales of $16.2 million for the third quarter (16 weeks) ended Oct. 7, 1992, with a net loss of $760,000 or 13 cents per share. For the same quarter a year ago the company reported a net loss of $138,000 or two cents per share on sales of $16.1 million.
James H. Crivits, Homestyle president and chief executive officer, said the most recent quarter's results were adversely affected by several factors. These include long-term investments by the company in upgrading facilities and improving customer service and the cost of "substantial" marketing activity to support these improvements and maintain sales against competing restaurant promotions. The continuing impact of the troubled economy, particularly in the Northeast where the majority of the company's restaurants are located, was also an important factor, Crivits said. He added that sales have improved compared to a year ago as a result of the marketing activity. He said sales increases have not yet been sufficient to offset the promotional costs. Crivits said that Homestyle is proceeding with the plan to convert two of its buffet restaurants by the end of January 1993 from their straight, cafeteria-style food lines to eight scattered food-service bars. He said the investment in the conversions should have long-term benefits, borne out by the substantial evidence of the success of such conversions in buffet restaurants in other parts of the country. In the fourth quarter, Crivits said marketing activity will be reduced to more normal levels, emphasizing special food promotions. Crivits noted that the company continued to have a positive cash flow and very little debt. Homestyle Buffet owns and operates 34 buffet restaurants in Florida, New York, New Jersey, Pennsylvania, Maryland and Virginia compared to 33 restaurants a year ago. The restaurants offer a wide variety of quality foods comprising complete meals in a self-service, low fixed price buffet format. HOMESTYLE BUFFET, INC. CONSOLIDATED STATEMENT OF EARNINGS (Unaudited) 16 Weeks Ended 40 Weeks Ended 10/7/92 10/9/91 10/7/92 10/7/91 Sales $16,237,722 $16,054,966 $40,322,966 $38,128,584 Earnings (loss) before income taxes (1,016,797) (224,077) (1,196,772) 273,141 Net earnings (loss) (760,046) (138,166) (870,697) 168,401 Net earnings (loss) per share of common stock (.13) (.02) (.15) .03 Weighted average common and equivalent shares outstanding 5,961,979 6,005,790 5,988,691 6,031,493 Subject to Year-end Audit. -0- 11/9/92 /CONTACT: James H. Crivits, president, and chief executive officer of Homestyle Buffet, Inc. 813-785-1370/ (HBUF) CO: Homestyle Buffet, Inc. ST: Florida IN: LEI SU: ERN
JB-AW -- FL007 -- 8615 11/09/92 10:45 EST
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|Date:||Nov 9, 1992|
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