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MORRISON REPORTS THIRD QUARTER EARNINGS ANNOUNCES CEO SUCCESSION PLANS

 MORRISON REPORTS THIRD QUARTER EARNINGS
 ANNOUNCES CEO SUCCESSION PLANS
 MOBILE, Ala., March 26 /PRNewswire/ -- Morrison Incorporated (NASDAQ: MORR) today reported third quarter net income of $9,189,000, an increase of 24.2 percent from the same period last year.
 Revenue for the third quarter increased 5.7 percent to $261,400,000. Earnings per share for the third quarter were 55 cents versus 45 cents a year ago.
 For the first 39 weeks of fiscal 1992, net income was $23,759,000, or 20.4 percent ahead of last year. Revenue for the period increased 6 percent to $763,195,000. Earnings per share for the first 39 weeks were $1.43 compared to $1.19 last year.
 As previously announced, the Morrison Incorporated board of directors declared a 3-for-2 stock split and a cash dividend of 12 cents per share on the split shares, both payable on April 30 to shareholders of record on April 10. The dividend on the post-split shares represents a 12.5 percent increase in the cash dividend payment.
 "We had solid performances by all three divisions for the third quarter," said Eugene E. Bishop, chairman of the board and chief executive officer of Morrison Incorporated. "We achieved margin expansion for each division through careful cost management and increased sales volume. We continued to focus operations on getting effective results despite the sluggish economic climate.
 "Specialty Restaurants produced major gains in revenue and operating profit for the quarter. A strong performance by Ruby Tuesday and the continued growth of Silver Spoon Cafe led to the 22 percent increase in operating profit. During the third quarter, we opened six restaurants -- three Ruby Tuesday and three L & N Seafood. Overall, we had 26 additional restaurants in operation compared to a year ago. Operating profit margins expanded to 10.3 percent versus 9.8 percent last year.
 "Morrison's Custom Management achieved an operating profit increase of 10.5 percent due to increases in unit revenue coupled with effective administrative expense management. MCM's operating margins expanded to 4.0 percent from 3.8 percent a year ago.
 "Our Morrison's Cafeterias earned an operating profit gain of 6 percent despite a sales decline of 5.1 percent. We operated eight fewer units as compared to a year ago. Year-to-year operating margins grew to 4.9 percent from 4.5 percent. We will continue our back-to- the-basics approach coupled with effective cost management to deliver the highest possible price/value for our customers.
 "The completion of fiscal 1992 will mark a milestone for Morrison -- our first $1 billion-plus revenue year."
 CEO SUCCESSION
 The Board of Directors of Morrison Incorporated announced today that Eugene E. Bishop will retire as chief executive officer effective June 6, the close of the fiscal year. Bishop, 61, will remain chairman of the board and the executive committee.
 Bishop's career with Morrison spans 45 years. As CEO since 1980, he will have more than tripled annual revenues, doubled net income and earnings per share, and quadrupled aggregate stock market value. Morrison's strong financial position is widely recognized. Bishop has been frequently honored by the industry.
 Samuel E. Beall III, president and chief operating officer, was named chief executive officer. Beall, 42, founded Ruby Tuesday Restaurants in 1972, which Morrison acquired in 1982. He has 24 years experience in the food service industry.
 In 1985, Bishop selected Beall as president with the objective of developing his replacement. "It's been a very orderly and pleasant transition with the two of us working closely together to change the thrust of the company," Bishop said.
 During the defining decade of the 1980s, Bishop, through acquisitions, divestitures and operational restructuring, transformed Morrison from the most vertically integrated company in the food service business, operating in several industries, to a highly focused restaurant management company possessing two major brands -- Morrison's and Ruby Tuesday. Morrison has over 1,100 managed operations and over 35,000 employees. "The company will continue in a very focused direction, always listening and responding to our customers," Bishop said.
 Morrison Incorporated operations include: 151 Ruby Tuesday restaurants, 38 L & N Seafood restaurants, 15 Silver Spoon Cafes, Morrison's Custom Management, a nationally recognized contract food business specializing in health care, education and business feeding, and 162 Morrison's Cafeterias, the dominant cafeteria chain in the Southeast.
 MORRISON INCORPORATED
 CONDENSED OPERATING RESULTS
 FINANCIAL RESULTS FOR THE THIRD QUARTER OF FISCAL 1992
 (Unaudited)
 (Amounts in thousands except per share amounts)
 13 weeks ended 39 weeks ended
 2/29/92 3/2/91 2/29/92 3/2/91
 Revenues $261,400 $247,216 $763,195 $720,094
 Income before income taxes 14,470 11,812 37,415 31,101
 Income taxes 5,281 4,412 13,656 11,375
 Net income $ 9,189 $ 7,400 $ 23,759 $ 19,726
 Earnings per share:
 Net income $ 0.55 $ 0.45 $ 1.43 $ 1.19
 Common and common equivalent
 shares 16,859 16,404 16,579 16,642
 Earnings per common and common equivalent share adjusted for the 3-for-2 stock split declared Feb. 7 are $0.37 for the quarter and $0.96 for the 39 weeks ended Feb. 29. Common and common equivalent shares adjusted for the 3-for-2 stock split are 25,289 for the quarter and 24,868 for the 39 weeks ended Feb. 29.
 CONDENSED BALANCE SHEETS
 2/29/92 3/2/91
 Assets
 Cash and cash equivalents $ 49,764 $ 10,711
 Accounts and notes receivable 33,892 40,065
 Inventory 13,790 13,044
 All other current assets 16,289 17,393
 Total current assets $113,735 $ 81,213
 Property, plant and equip., net 197,992 197,033
 Costs in excess of net assets
 acquired 24,023 26,299
 Other assets 29,835 20,820
 Total assets $365,585 $325,365
 Liabilities
 Current liabilities $ 89,121 $ 75,827
 Long-term debt 36,740 38,097
 Deferred income taxes 20,232 19,913
 Other deferred liabilities 21,775 14,543
 Total liabilities 167,868 148,380
 Stockholders' equity 197,717 176,985
 Total liabilities and
 stockholders' equity $365,585 $325,365
 MORRISON INCORPORATED
 SEGMENT INFORMATION
 (000'S omitted)
 13 weeks ended 2/29/92 3/2/91
 Revenues:
 Specialty restaurant $ 89,796 34.4 pct. $ 76,764 31.0 pct.
 Contract services
 management 98,098 37.5 pct. 93,363 37.8 pct.
 Cafeteria 73,470 28.1 pct. 77,072 31.2 pct.
 Corporate and other 36 0.0 pct. (3) 0.0 pct.
 Total $261,400 100.0 pct. $247,216 100.0 pct.
 Contribution to income:
 Specialty restaurant $ 9,209 10.3 pct. $ 7,548 9.8 pct.
 Contract services
 management 3,891 4.0 pct. 3,521 3.8 pct.
 Cafeteria 3,630 4.9 pct. 3,454 4.5 pct.
 Total 16,730 6.4 pct. 14,523 5.9 pct.
 Corporate expenses (2,025) (0.8)pct. (1,963) (0.8)pct.
 Net interest income
 (expense) (235) (0.1)pct. (748) (0.3)pct.
 Income before income
 taxes 14,470 5.5 pct. 11,812 4.8 pct.
 Income taxes 5,281 2.0 pct. 4,412 1.8 pct.
 Net income $ 9,189 3.5 pct. $ 7,400 3.0 pct.
 Earnings per common and
 common equivalent shr.$ 0.55 $ 0.45
 Common and common
 equivalent shares 16,859 16,404
 39 weeks ended 2/29/92 3/2/91
 Revenues:
 Specialty restaurant $241,657 31.7 pct. $206,716 28.7 pct.
 Contract services
 management 295,136 38.7 pct. 282,311 39.2 pct.
 Cafeteria 226,187 29.6 pct. 231,153 32.1 pct.
 Corporate and other 215 0.0 pct. (86) 0.0 pct.
 Total $763,195 100.0 pct. $720,094 100.0 pct.
 Contribution to income:
 Specialty restaurant $ 21,320 8.8 pct. $ 17,030 8.2 pct.
 Contract services
 management 13,318 4.5 pct. 11,563 4.1 pct.
 Cafeteria 8,834 3.9 pct. 9,774 4.2 pct.
 Total 43,472 5.7 pct. 38,367 5.3 pct.
 Corporate expenses (5,271) (0.7)pct. (4,941) (0.7)pct.
 Net interest income
 (expense) (786) (0.1)pct. (2,325) (0.3)pct.
 Income before income
 taxes 37,415 4.9 pct. 31,101 4.3 pct.
 Income taxes 13,656 1.8 pct. 11,375 1.6 pct.
 Net income $ 23,759 3.1 pct. $ 19,726 2.7 pct.
 Earnings per common and
 common equivalent shr.$ 1.43 $ 1.19
 Common and common
 equivalent shares 16,579 16,642
 Earnings per common and common equivalent share adjusted for the 3-for-2 stock split declared Feb. 7 are $0.37 for the quarter and $0.96 for the 39 weeks ended Feb. 29. Common and common equivalent shares adjusted for the 3-for-2 stock split are 25,289 for the quarter and 24,868 for the 39 weeks ended Feb. 29.
 -0- 3/26/92
 /CONTACT: Robert G. Crankovic of Morrison Incorporated, 205-344-3000, ext. 2201/
 (MORR) CO: Morrison Incorporated ST: Alabama IN: LEI SU: ERN PER


EA-BR -- AT012 -- 2060 03/26/92 14:58 EST
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