Printer Friendly

KETTLE RESTAURANTS ANNOUNCES 1991 EARNINGS

 KETTLE RESTAURANTS ANNOUNCES 1991 EARNINGS
 HOUSTON, Jan. 30 /PRNewswire/ -- Kettle Restaurants, Inc. today


announced the company reported a net profit for the fiscal year ended Oct. 31, 1991, of $1,875,000 or $1.63 per share compared to a net loss of $3,419,000 or ($2.98) per share for fiscal 1991. The net profit for the quarter ended Oct. 31, 1991 was $279,000 or $.24 per share compared to a net loss of $3,867,000 or ($3.37) per share for the comparable 1990 period.
 The losses reported for fiscal 1990 were the effect, primarily, of implementation of a lease termination agreement on 20 properties which resulted in the expensing of certain items previously carried as assets and the accruing of related estimated carrying costs in the amount of $4,004,000. Also contributing to the losses was the accrual of additional workers' compensation premiums of approximately $1,004,000 resulting from a workers' compensation rate modification in the state of Texas.
 The company appealed the rate modification and during the first quarter of fiscal 1991, the company was notified that the rate modification was rescinded, therefore, a reversal of the additional premiums was recognized as a credit to earnings in the first quarter of fiscal 1991. Additionally, the rescission of the rate modification resulted in a net refund of premiums paid during fiscal 1989 of $442,000, which was recognized as a credit to earnings in the second quarter of fiscal 1991.
 Although approximately half of the operating income of $2,880,000 (compared to an operating loss of $4,865,000 in fiscal 1990) resulted from the workers' compensation rate modification, the improvement in operational net income has been significant. The positive results of operations are attributable to management's ability to focus on operations after consummation of the management-led tender offer during fiscal 1989 and the termination of leases on certain non-productive restaurants in fiscal 1990 and 1991. This focus resulted in a reduction in restaurant operating expenses as a percentage of restaurant sales from 68.6 percent in fiscal 1990 to 61.4 percent in fiscal 1991.
 Total revenues decreased from $47,029,000 in fiscal 1990 to $43,749,000 in fiscal 1991, primarily related to a decrease in franchise fees and lease rental income of $1,386,000 and industrial catering revenues of $1,909,000. The decrease in franchise fees and lease rental income resulted, in part, from the net decrease of 17 franchised stores during fiscal 1991 and 1990. Although the company continues to have contracts for industrial catering services, the conditions precedent to their performance did not materialize in fiscal 1991.
 The company, aided by a marketing firm, is finalizing the developmental stages of a marketing program which will focus on creating as identifiable image for the company designed to broaden the existing customer base. The program will soon be implemented in selected test markets and management believes that it will further enhance the increase in weighted average sales reflected in fiscal 1991 compared to 1990 per company operated restaurants and franchised restaurants of .6 percent and 2.1 percent, respectively.
 The company presently has no plans for adding any new units to the system during the current fiscal year.
 Kettle Restaurants, Inc. is principally engaged in the operation and franchising of 24-hour full-service, family-oriented restaurants. The restaurants offer a wide selection of moderately priced menu items for all meal periods. Kettle and its franchisees operate 163 restaurants in 15 states, primarily in the Sunbelt region.
 More details are available in the company's Annual Report on Form 10-K currently on file at the Securities and Exchange Commission.
 KETTLE RESTAURANTS, INC.
 (Dollars and shares in thousands, except per share data)
 Periods ended: Fourth quarter Fiscal years
 10/31/91 11/1/90 10/31/91 11/1/90
 Operating data:
 Restaurant sales $ 8,540 $ 8,371 $32,040 $32,309
 Franchise fees 1,026 1,001 4,160 4,376
 Lease income 1,467 1,894 6,083 7,253
 Cash flow-operating
 activity -- -- 1,107 1,165
 Operating income
 (loss) 427 (5,642) 2,880 (4,865)
 Net income (loss) 279 (3,867) 1,875 (3,419)
 Earnings (loss) per
 share .24 (3.37) 1.63 (2.98)
 Weighted average
 common and common
 equivalent shares
 outstanding 1,148 1,148 1,148 1,147
 Number of restaurants
 at end of period:
 Company operated 64 73
 Franchised 99 111
 Total 163 184
 -0- 1/30/92
 /CONTACT: C. Doyle Smith, chief financial officer and treasurer of Kettle Restaurants, 713-534-3464/ CO: Kettle Restaurants Inc. ST: Texas IN: LEI SU: ERN


TS -- NY026 -- 5123 01/30/92 09:48 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 30, 1992
Words:779
Previous Article:NFS FINANCIAL CORPORATION REPORTS BETTER 1991 PERFORMANCE
Next Article:GROUND-BREAKING CEREMONY FOR CENTRAL AND SOUTH WEST CORPORATION $23 MILLION OFFICE COMPLEX SCHEDULED FOR FRIDAY
Topics:


Related Articles
KETTLE RESTAURANTS ANNOUNCES FIRST QUARTER EARNINGS FOR 1992
KETTLE RESTAURANTS ANNOUNCES FINANCIAL RESULTS
COOKER RESTAURANT CORPORATION ANNOUNCES 51.5 PERCENT INCREASE IN EARNINGS
KETTLE RESTAURANTS ANNOUNCES FINANCIAL RESULTS
KETTLE RESTAURANTS, INC. ANNOUNCES 1992 EARNINGS
KETTLE RESTAURANTS, INC. ANNOUNCES 1993 EARNINGS
KETTLE RESTAURANTS, INC. ANNOUNCES FIRST QUARTER LOSS FOR 1994
KETTLE RESTAURANTS, INC. ANNOUNCES 1994 EARNINGS
KETTLE RESTAURANTS, INC. ANNOUNCES FIRST QUARTER LOSS FOR 1995
KETTLE RESTAURANTS, INC. ANNOUNCES SECOND QUARTER EARNINGS FOR 1995

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters