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IHOP CORP. ANNOUNCES 44 PERCENT INCREASE IN THIRD QUARTER PROFITS

 GLENDALE, Calif., Oct. 29 /PRNewswire/ -- IHOP Corp. (NASDAQ: IHOP) today reported record net income and system-wide sales for the third quarter ended Sept. 30, 1993.
 For the quarter, IHOP's net income was $3,455,000, a 44.0 percent increase over last year's $2,400,000. Net income per common share was $.37 vs. $.26 for the comparable 1992 period.
 For the nine months ended Sept. 30, 1993, net income amounted to $6,269,000, a 22.4 percent increase over last year's $5,121,000. Net income per common share was $.67 vs. $.56 for the comparable 1992 period. The nine-month results reflect a nonrecurring charge of $2,500,000, taken in the second quarter of 1993, for the proposed resolution of two legal proceedings unrelated to the company's prior or ongoing restaurant and franchising business. The impact of the nonrecurring charge, net of income tax benefit, was $1.5 million, or $.16 per share.
 Richard K. Herzer, chief executive officer, stated, "Our growth programs are proceeding as planned and have resulted in continued improvements in IHOP's operating performance, despite a lackluster economy."
 He noted that during the third quarter, 14 new International House of Pancakes restaurants were opened, which brings the nine-month total to 46 new IHOP restaurants. For 1993, IHOP projects opening a total of 61 new restaurants, compared to 40 in 1992.
 Herzer also stated that the company had received very encouraging initial acceptance of its new Country Griddle Pancake, which is currently being introduced throughout the United States.
 System-wide sales, the retail sales of all International House of Pancakes restaurants, increased 17.0 percent to $145 million for the third quarter of 1993 and 16.9 percent to $409 million for the nine months ended Sept. 30, 1993, vs. the comparable periods in the prior year.
 System-wide comparable sales per restaurant increased 4.1 percent for the third quarter of 1993 and increased 4.5 percent for the nine months ended Sept. 30, 1993, vs. the comparable 1992 periods.
 The company develops, franchises and operates International House of Pancakes restaurants, one of America's best-known national family restaurant chains. As of Sept. 30, 1993, the company had 561 IHOP restaurants. Of these, 394 were operated by franchisees, 57 by the company and 110 by area licensees. IHOP restaurants are located in 35 states, Canada and Japan, with the greatest concentration of restaurants in California, New York, New Jersey, Florida and Texas.
 IHOP CORP. AND SUBSIDIARIES
 Selected Financial Data
 (In thousands, except per share data)
 Third Quarter Ended
 Sept. 30,
 1993 1992
 Revenues $38,200 $29,157
 Income before income taxes $6,228 $4,054
 Net income $3,455(a) $2,400
 Net income per common share $.37(a) $.26
 Weighted average shares outstanding 9,324 9,112
 Nine Months Ended
 Sept. 30,
 1993 1992
 Revenues $103,932 $80,295
 Income before income taxes
 and nonrecurring charge $13,481 $8,650
 Income before income taxes $10,981(b) $8,650
 Net income $6,269(a)(b) $5,121
 Net income per common share $.67(a)(b) $.56
 Weighted average shares outstanding 9,295 9,097
 (a) After the effect of the increase in income tax rate due to the Omnibus Budget Reconciliation Act of 1993 amounting to $.25 million, or $.03 per share.
 (b) After nonrecurring charge unrelated to the company's prior or ongoing restaurant activities pertaining to litigation of $2.5 million, or $1.5 million net of income tax benefit, or $.16 per share.
 -0- 10/29/93
 /CONTACT: Frederick G. Silny, CFO of IHOP, 818-240-6055/
 (IHOP)


CO: IHOP Corp. ST: California IN: LEI SU: ERN

JL-JB -- LA004 -- 8342 10/29/93 08:30 EDT
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Publication:PR Newswire
Date:Oct 29, 1993
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