ON THE BORDER CAFES ANNOUNCES RESULTS
ON THE BORDER CAFES ANNOUNCES RESULTS DALLAS, July 21 /PRNewswire/ -- On The Border Cafes, Inc.
(NASDAQ: OTBC), today released operating results for the second quarter of fiscal 1992, ended June 15. The company completed an initial public offering of its common stock during the quarter, following acquisition of restauarants earlier in the year which brought the number of operating units to eight.
Historical comparisons showed higher quarterly sales of 11.5 percent against 1991, and net income increased $38,733 or 12.7 percent over the prior year. Sales of $6.0 million exceeded the prior year pro forma figure by $96,442, as comparable store sales increased 1.6 percent for the quarter. Pro forma restaurant level operating profits improved to 17.1 percent from 16.0 percent in the 1991 quarter. Pro forma earnings per share were $.10 compared to $.13 a year earlier. Mike Fiori, president and CEO, stated, "The continued progress shown in the second quarter is very encouraging. The improving sales trend signifies a reversal of the decline experienced during 1991. The increase in restaurant level margins compounds the better sales figures and shows the advances being made in preparation for new unit openings." The second quarter marked the initial use of advertising media by the company. "The radio campaign in Dallas was very successful," Fiori commented further. "Our Dallas units increased sales by 3.4 percent in the quarter, and consumer awareness of On The Border was heightened. We plan on continued use of media advertising when warranted in the future." The company had previously announced the purchase of a site in Plano for a new On The Border restaurant. Current plans call for the Plano unit to open in November 1992. Negotiations are under way on additional sites both in and out of the state of Texas for further development. On The Border Cafes, Inc., operates eight full service restaurants featuring mesquite-grilled specialties of Texas and Mexico. ON THE BORDER CAFES, INC. Selected Results (000) Periods 12 Weeks 24 Weeks Ended 6/15/92 6/17/91 6/15/92 6/17/91 Sales $5,995 $5,377 $10,801 $10,047 Net income $ 345 $ 306 $ 322 $ 327 Earnings per share $ 0.14 $ 0.21 $ 0.16 $ 0.22 Average shares outstanding 2,519 1,470 2,026 1,470 PRO FORMA Periods 12 Weeks 24 Weeks Ended 6/15/92 6/17/91 6/15/92 6/17/91 Sales $5,995 $5,899 $11,099 $11,023 Earnings per share $ 0.10 $ 0.13 $ 0.13 $ 0.18 The pro forma information gives effect to (i) the acquisition of the minority interests of the two limited partnerships as well as the acquisition of the restaurant in which the company managed but had no ownership interest, (ii) the issuance of $1,200,000 of senior subordinated convertible debentures, (iii) the acquisition of Knox- Travis Corporation and the OTB 1990 Trust's rights to receive royalty fees and (iv) the initial public offering of 950,000 shares of the company's common stock and the retirement of approximately $2,100,000 in indebtedness as though all such transactions had occurred at the beginning of each pro forma period presented above. -0- 7/21/92 /CONTACT: Stephen D. Fenstermacher, senior vice president-finance and chief financial officer of On The Border Cafes, 214-905-7500/ (OTBC) CO: On The Border Cafes, Inc. ST: Texas IN: LEI SU: ERN
GK -- NY062 -- 1336 07/21/92 12:34 EDT
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|Date:||Jul 21, 1992|
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