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IHOP CORP. ANNOUNCES SECOND QUARTER RESULTS, TAKES NONRECURRING CHARGE AGAINST EARNINGS

 GLENDALE, Calif., Aug. 4 /PRNewswire/ -- IHOP Corp. (NASDAQ: IHOP) today reported its net income and system-wide sales for the second quarter ended June 30, 1993. The company recorded a nonrecurring charge of $2,500,000 for the resolution of two legal proceedings unrelated to the company's prior or ongoing restaurant and franchising business. As a result, for the quarter, IHOP's net income was $1,371,000, or $.15 per share, compared to $1,749,000, or $.19 per share, for the comparable 1992 period. Net income for the six months ended June 30, 1993, was $2,814,000, or $.30 per share, compared with $2,721,000, or $.30 per share, a year ago. The impact of the nonrecurring charge, net of income tax benefit, was $1.5 million, or $.16 per share, on both the quarter and six months.
 System-wide sales, the retail sales of all International House of Pancakes restaurants increased 18.6 percent to $136 million for the second quarter of 1993 and 16.8 percent to $264 million for the six months ended June 30, 1993, vs. the comparable periods in the prior year. System-wide comparable sales per restaurant increased 5.2 percent for the second quarter of 1993 and increased 4.5 percent for the six months ended June 30, 1993, vs. the comparable 1992 periods.
 During the second quarter, IHOP opened 22 new restaurants, bringing the total for the first six months to 32. IHOP plans to open about 57 new restaurants in total in 1993. Richard K. Herzer, chief executive officer, stated, "The success of IHOP's planned expansion program and the increased productivity of our restaurants continue to bring gratifying results. Our new restaurants are receiving a strong reception from the dining public despite the continuing effects of a sluggish economy."
 Commenting on the nonrecurring charge, Larry Alan Kay, executive vice president-Administration and general counsel, stated, "The $2.5 million nonrecurring charge will result in an ultimate cash impact after taxes of about $200,000. There will be no significant impact on IHOP's liquidity, operations, development plans, credit facilities or corporate expenditures this year or thereafter. Furthermore, we will realize substantial savings in future legal fees and costs provided that these legal proceedings can be concluded."
 IHOP develops, franchises and operates International House of Pancakes restaurants, one of America's best-known national family restaurant chains. As of June 30, 1993, the company had 550 IHOP restaurants, of which 382 were operated by franchisees, 58 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)
 Second Quarter Ended June 30,
 1993 1992
 Revenues $35,496 $26,834
 Income before income taxes
 and nonrecurring charge $4,815 $2,954
 Income before income taxes $2,315(a) $2,954
 Net income $1,371(a) $1,749
 Net income per common share $.15(a) $.19
 Weighted average shares outstanding 9,320 9,086
 Six Months Ended June 30,
 1993 1992
 Revenues $65,732 $51,138
 Income before incomes taxes
 and nonrecurring charge $7,253 $4,596
 Income before income taxes $4,753(a) $4,596
 Net income $2,814(a) $2,721
 Net income per common share $.30(a) $.30
 Weighted average shares outstanding 9,281 9,080
 (a) After nonrecurring charge unrelated to the company's prior or ongoing restaurant and franchising activities pertaining to litigation of $2.5 million, or $1.5 million net of income tax benefit, or $.16 per share.
 -0- 8/4/93
 /CONTACT: Larry Alan Kay, executive VP, or Frederick G. Silny, CFO, of IHOP, 818-240-6055/
 (IHOP)


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

MF-JL -- LA013 -- 9196 08/04/93 08:36 EDT
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Publication:PR Newswire
Date:Aug 4, 1993
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