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IHOP CORP. POSTS RECORD RESULTS FOR FOURTH QUARTER AND YEAR END

 GLENDALE, Calif., Feb. 24 /PRNewswire/ -- IHOP Corp. (NASDAQ: IHOP) today reported record net income and sales for the fourth quarter and year ended Dec. 31, 1993.
 For the quarter, IHOP's net income rose to $4,464,000, a 59 percent increase over last year's $2,810,000. Net income per share was $.48 vs. $.31 for the comparable 1992 period. Earnings before extraordinary item were $4,464,000, or $.48 per share, a 23 percent increase over the prior year's $3,643,000, or $.41 per share.
 For the year, net income increased 35 percent to $10,733,000, compared to last year's $7,931,000. Net income per share was $1.15 vs. $.89. Income before extraordinary item was $10,733,000, or $1.15 per share compared to last year's $8,764,000, or $.98 per share. The results include a non-recurring charge of $2.5 million, taken in the second quarter of 1993, for the resolution of two legal proceedings unrelated to the company's prior or ongoing restaurant and franchising business. The impact of the non-recurring charge, net of income tax benefit, was $1.5 million or $.16 per share.
 Richard K. Herzer, chief executive officer, stated, "By almost every standard, IHOP showed significant gains over the previous year's financial results. This confirms the soundness of our growth strategy. During the year we also made a substantial investment in property and equipment, opening 64 new IHOPs in order to strengthen our competitive position in the marketplace. Our focus remains on the performance of each International House of Pancakes restaurant and the pleasurable dining experience of each one of our guests."
 System-wide sales, the retail sales of all International House of Pancakes restaurants, increased 10.2 percent to $143 million for the fourth quarter of 1993, and 15.1 percent to $552 million for the year ended Dec. 31, 1993, vs. comparable periods in the prior year.
 System-wide comparable sales per restaurant increased 4.0 percent for the fourth quarter of 1993, and 4.6 percent for the year ended Dec. 31, 1993, vs. comparable periods in the prior year.
 The company develops, franchises and operates International House of Pancakes restaurants, one of America's best-known national family restaurant chains. As of Dec. 31, 1993, the company had 572 restaurants, of which 407 were operated by franchisees, 51 by the company and 114 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)
 Fourth Quarter
 Ended Dec. 31,(a)
 1993 1992
 Revenues $38,613 $33,656
 Income before income taxes
 and extraordinary item $7,635 $6,154
 Income before extraordinary
 item $4,464 $3,643
 Extraordinary item net of
 income taxes --- ($833)(b)
 Net income $4,464 $2,810
 Income per share
 Before extraordinary item $.48 $.41
 Extraordinary item --- ($.09)(b)
 Net income $.48 $.31(c)
 Weighted average shares
 outstanding 9,355 8,967
 Twelve Months
 Ended Dec. 31,(a)
 1993 1992
 Revenues $142,545 $113,951
 Income before income taxes
 and extraordinary item $18,616(d) $14,804
 Income before extraordinary
 item $10,733(d) $8,764
 Extraordinary item net of
 income taxes --- ($833)(b)
 Net income $10,733(d) $7,931
 Income per share
 Before extraordinary item $1.15(d) $.98
 Extraordinary item --- ($.09)(b)
 Net income $1.15(d) $.89
 Weighted average shares
 outstanding 9,310 8,945
 (a) The fiscal fourth quarter of 1993 consisted of 13 weeks and the fiscal fourth quarter of 1992 was made up of 14 weeks; the fiscal year 1993 consisted of 52 weeks and the fiscal year 1992 was made up of 53 weeks.
 (b) Costs related to early extinguishment of debt.
 (c) Does not add due to rounding.
 (d) Includes a 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.
 IHOP CORP. AND SUBSIDIARIES
 Consolidated Statements of Operations
 (In thousands, except per share amounts)
 Three Months Ended Twelve Months Ended
 Dec. 31,(a) Dec. 31,(a)
 1993 1992 1993 1992
 Revenues
 Franchise operations $18,667 $16,590 $71,451 $61,178
 Company operations 11,003 10,484 47,557 38,204
 Other 8,943 6,582 23,537 14,569
 Total revenues 38,613 33,656 142,545 113,951
 Costs and expenses
 Franchise operations 8,579 7,504 33,775 28,164
 Company operations 9,652 9,764 43,791 35,301
 Field, corporate and
 administrative 5,728 4,593 21,004 18,637
 Depreciation and
 amortization 1,580 1,246 5,738 5,014
 Interest 1,496 1,202 5,641 4,762
 Other 3,943 3,193 11,480 7,269
 Nonrecurring charge --- --- 2,500 ---
 Total costs and
 expenses 30,978 27,502 123,929 99,147
 Income before income
 taxes and extraordinary
 item 7,635 6,154 18,616(c) 14,804
 Provision for income
 taxes 3,171 2,511 7,883 6,040
 Income before
 extraordinary item 4,464 3,643 10,733(c) 8,764
 Extraordinary item, net
 of income tax benefit --- (833) --- (833)
 Net income $4,464 $2,810 $10,733(c) $7,931
 Income per common and
 common equivalent share
 Before extraordinary
 item $.48 $.41 $1.15(c) $.98
 Extraordinary item --- (.09) --- (.09)
 Net income $.48 $.31(b) $1.15(c) $0.89
 Weighted average
 common and common
 equivalent shares
 outstanding 9,355 8,967 9,310 8,945
 Consolidated Balance Sheets
 (In thousands)
 Dec. 31,
 1993 1992
 Current assets, net $19,928 $21,657
 Property and equipment, net 63,083 52,066
 Other assets 97,015 76,099
 Total assets $180,026 $149,822
 Current liabilities $16,584 $18,112
 Long-term debt 36,981 33,039
 Other long-term liabilities 55,283 40,679
 Shareholders' equity 71,178 57,992
 Total liabilities and
 shareholders' equity $180,026 $149,822
 (a) The fiscal fourth quarter of 1993 consisted of 13 weeks and the fiscal fourth quarter of 1992 was made up of 14 weeks; the fiscal year 1993 consisted of 52 weeks and the fiscal year 1992 was made up of 53 weeks.
 (b) Does not add due to rounding.
 (c) Includes a 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.
 IHOP CORP. AND SUBSIDIARIES
 Results of Operations
 (Dollars in thousands)
 Three Months Ended 12 Months Ended
 Dec. 31, Dec. 31,
 1993(a) 1992 1993(a) 1992
 Restaurant Data
 Effective restaurants(b)
 Franchise 397 356 379 346
 Company 52 49 55 51
 Area license 113 109 114 110
 Total 562 514 548 507
 System-wide
 Sales (c) $142,660 $129,397 $551,755 $479,458
 Percent increase 10.2% 25.8% 15.1% 15.9%
 Average sales per
 effective restaurant $254 $252 $1,007 $946
 Percent increase .8% 21.1% 6.4% 12.0%
 Comparable average sales
 per restaurant(d) $260 $240 $1,014 $936
 Percent increase 4.0% 9.2% 4.6% 7.7%
 Franchise
 Sales $108,786 $97,583 $407,346 $353,914
 Percent increase 11.5% 28.8% 15.1% 20.5%
 Average sales per
 effective restaurant $274 $274 $1,075 $1,023
 Percent increase 0.0% 21.2% 5.1% 12.5%
 Comparable average sales
 per restaurant(d) $266 $248 $1,044 $970
 Percent increase 3.6% 8.1% 4.1% 6.2%
 Company
 Sales $11,003 $10,484 $47,557 $38,204
 Percent change 5.0% 14.3% 24.5% (3.5%)
 Average sales per
 effective restaurant $212 $214 $865 $749
 Percent change (.9%) 25.9% 15.5% 13.5%
 Area License
 Sales $22,871 $21,330 $96,852 $87,340
 Percent increase 7.2% 19.0% 10.9% 8.9%
 Average sales per
 effective restaurant $202 $196 $850 $794
 Percent increase 3.1% 16.0% 7.1% 4.9%
 (a) The fiscal fourth quarter of 1993 consisted of 13 weeks and the fiscal fourth quarter of 1992 was made up of 14 weeks; the fiscal year 1993 consisted of 52 weeks and the fiscal year 1992 was made up of 53 weeks. The fiscal quarter and fiscal year comparable average sales per restaurant have been adjusted for comparability with the 1992 periods.
 (b) "Effective restaurants" are the number of restaurants in a given fiscal period adjusted to account for restaurants open only a portion of the period.
 (c) "System wide sales" are retail sales of franchisees, company- operated restaurants and area licensees as reported to the company.
 (d) "Comparable average sales" reflects sales for restaurants that are operated for the entire fiscal period indicated as well as the entire prior fiscal period but does not include data on area license restaurants located in Florida and Japan.
 IHOP CORP. AND SUBSIDIARIES
 Restaurant Development and Franchising Activity
 Three Months Ended 12 Months Ended
 Dec. 31, Dec. 31,
 1993 1992 1993 1992
 Restaurant Activity(a)
 IHOP - beginning of period 561 512 530 499
 New openings
 IHOP - developed 10 14 38 23
 Investor program 4 2 17 10
 Area license 4 2 9 7
 Total new openings 18 18 64 40
 Closings
 Company and franchised (7) --- (17) (6)
 Area license --- --- (5) (3)
 IHOP - end of period 572 530 572 530
 Other concepts - end of period --- 17 --- 17
 Total - end of period 572 547 572 547
 Summary - end of period
 IHOP
 Franchise 407 370 407 370
 Company 51 50 51 50
 Area license 114 110 114 110
 Total IHOP 572 530 572 530
 Other concepts --- 17 --- 17
 Total restaurants 572 547 572 547
 Restaurant Franchising
 Activity(a)
 IHOP - developed 12 8 30 15
 Investor program 4 2 17 10
 Rehabilitated and refranchised 3 7 12 16
 Reacquired by company (1) (1) (9) (6)
 Closed (5) --- (13) (3)
 Net increase 13 16 37 32
 (a) The company reports restaurants in Canada as franchise restaurants although eight of the nine restaurants are operated under an area license agreement.
 -0- 2/24/94
 /CONTACT: Frederick G. Silny, CFO, of IHOP, 818-240-6055/
 (IHOP)


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

JP-JB -- LA003 -- 5553 02/24/94 08:33 EST
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Date:Feb 24, 1994
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