Printer Friendly

QUANTUM RESTAURANT GROUP REPORTS SECOND QUARTER AND YEAR-TO-DATE RESULTS; SALES RISE AND EARNINGS UP, LITIGATION SETTLED

 ROSLYN HEIGHTS, N.Y., July 27 /PRNewswire/ -- Quantum Restaurant Group, Inc. (NASDAQ: QRST) today reported net income of $869,000, or $.13 per share, for the second quarter ended June 30, 1993. This includes a nonrecurring charge of $.06 per share related to last week's settlement of a lawsuit brought against Quantum's subsidiary, Morton's of Chicago, Inc. Accordingly, without this charge, reported earnings would have been $.19 per share. For the comparable 1992 quarter, income before an extraordinary item was $492,000, or $.12 per share. A net loss of $3,826,000, or $.91 per share, for the 1992 second quarter reflects an extraordinary charge, net of income taxes, of $4,318,000, or $1.03 per share, related to the early extinguishment of debt paid with the proceeds from Quantum's initial public offering and a new credit facility. There were no extraordinary items in 1993.
 Revenues for the 1993 second quarter increased 27 percent to $27,821,000 from $21,863,000 for the comparable 1992 quarter.
 For the six months ended June 30, 1993, Quantum reported net income of $1,971,000, or $.30 per share. This reflects the nonrecurring charge of $.06 per share referred to above. For the comparable 1992 period, income before extraordinary items was $970,000, or $.25 per share. A net loss of $3,076,000, or $.80 per share, for the six months ended June 30, 1992 reflects an extraordinary benefit related to the utilization of a net operating loss carryforward of $272,000, or $.07 per share, and an extraordinary charge, net of income taxes, $4,318,000, or $1.12 per share, related to the early extinguishment of debt paid with the proceeds from Quantum's initial public offering and a new credit facility. There were no extraordinary items in 1993.
 Revenues for the six months ended June 30, 1993 were $55,683,000, a 28 percent increase over the $43,606,000 recorded during the comparable 1992 period.
 Revenues for the first three months of 1993 were adversely impacted by unusually severe March weather in the Southeast and the Mid-Atlantic regions. More than half of the company's restaurants, including the 20 in Atlanta, are located in these areas, and were forced to close for as long as three days.
 Reduced interest expense is a function of lower debt balances after the application of the net proceeds of the company's initial and second public offerings, which closed during June and December 1992, respectively.
 As Quantum's 1992 Annual Report noted, the lawsuit, which was settled last week, charged Morton's of Chicago, Inc. and certain current and former employees with sexual harassment. The action was filed in the U.S. District Court for Northern District of Illinois on Sept. 19, 1990.
 Quantum said that the settlement was entered into to avoid the cost of further litigation. The settlement provides that it is not to be construed or considered to be an admission of guilt or noncompliance with any federal, state or local statute, public policy, tort law, common law or of any other wrongdoing whatsoever.
 At June 30, 1993, Quantum owned and operated 48 full-service restaurants (four of which opened during the first six months of 1993), in 23 cities, under the names Morton's of Chicago, Mick's, Peasant Restaurants and Bertolini's.
 Morton's of Chicago restaurants are premium-quality classic steak houses, featuring U.S.D.A. prime aged beef, catering primarily to business-oriented clientele. Mick's are casual restaurants, which offer "fun food," such as hamburgers, pasta, salads, specialty sandwiches and impressive desserts. They are noted for their diverse menu and large portions of moderately-priced, high-quality food, served in attractive settings. The Peasant Restaurants are upscale "white tablecloth" dinner houses, offering well-prepared beef, fish, chicken and pasta dishes, and a variety of signature desserts, at reasonable prices, in elegant settings. Bertolini's is a white tablecloth restaurant, specializing in Northern Italian cuisine.
 During the first six months of 1993, Quantum opened four new restaurants; Morton's of Chicago steak houses in Las Vegas and in Sacramento and Mick's in Washington, D.C. and in Minneapolis/Edina.
 Quantum currently owns and operates restaurants in Atlanta' Baltimore/Towson, Md.; Beverly Hills; Boston; Chicago, Oakbrook/ Westchester and O'Hare/Rosemont, Ill.; Cincinnati, Cleveland and Columbus, Ohio; Dallas; Denver; Las Vegas; Minneapolis; Nashville; New Orleans; Palm Beach; Philadelphia; Sacramento; San Antonio; Southfield/Detroit, Mich.; Tysons Corner, Va.; and Washington, D.C.
 QUANTUM RESTAURANT GROUP, INC.
 (Amounts in Thousands, Except Per Share Data)
 Periods Ended Three Months Six Months
 June 30, 1993 1992 1993 1992
 Restaurant revenues:
 Food and beverage $27,677 $21,787 $55,314 $43,454
 Other 144 76 369 152
 Total restaurant revenues 27,821 21,863 55,683 43,606
 Restaurant expenses:
 Food and beverage costs 9,185 7,344 18,458 14,733
 Restaurant operating expenses 13,044 10,385 26,142 20,213
 Depreciation and other
 non-cash charges 534 316 1,013 624
 Total restaurant expenses 22,763 18,045 45,613 35,570
 General and administrative
 expenses 2,754 1,778 5,184 3,539
 Marketing and promotional
 expenses 365 299 694 568
 Other depreciation and
 amortization of intangibles 715 354 1,373 786
 Interest expense, net 10 607 24 1,603
 Income before income taxes
 and extraordinary items 1,214 780 2,795 1,540
 Income tax expense 345 288 824 570
 Income before extraordinary items 869 492 1,971 970
 Extraordinary benefit relating
 to utilization of net operating
 loss carryforward -- -- -- 272
 Extraordinary charge relating to
 early extinguishment of debt -- (4,318) -- (4,318)
 Net income (loss) after
 extraordinary items $869 ($3,826) 1,971 ($3,076)
 Income (loss) per share:
 Before extraordinary items $.13 $.12 $.30 $.25
 Extraordinary benefit relating
 to utilization of net operating
 loss carryforward -- -- -- .07
 Extraordinary charge relating
 to early extinguishment of debt -- (1.03) -- (1.12)
 After extraordinary items $.13 (.91) .30 ($.80)
 Weighted average shares
 outstanding 6,672 4,187 6,671 3,849
 Number of restaurants at:
 Beginning of period 46 37 44 36
 End of period 48 39 48 39
 QUANTUM RESTAURANT GROUP, INC.
 (Amounts in Thousands, Except Share Data)
 Periods Ended June 30, 1993 Dec. 31, 1992
 Current assets:
 Cash and cash equivalents $1,015 $710
 Restricted cash 55 54
 Accounts receivable 1,160 1,018
 Inventories 2,212 2,323
 Prepaid expenses and other current assets 4,232 2,624
 Total current assets 8,674 6,729
 Property and equipment, at cost:
 Furniture, fixtures, and equipment 9,880 8,853
 Leasehold improvements 7,736 7,530
 Construction in progress 1,350 1,023
 18,966 17,406
 Less accumulated depreciation and
 amortization 7,144 6,585
 Net property and equipment 11,822 10,821
 Intangible assets, net of accumulated
 amortization of $2,497 in 1993 and
 $2,204 in 1992 20,824 21,117
 Other assets and deferred expenses,
 net of accumulated amortization
 of $2,174 in 1993 and $1,161 in 1992 3,785 2,742
 $45,105 $41,409
 Current liabilities:
 Bank overdraft $956 $909
 Accounts payable and accrued expenses 7,489 8,008
 Accrued income taxes 1,222 931
 Total current liabilities 9,667 9,848
 Bank debt 2,725 1,492
 Other liabilities 2,391 1,719
 Total liabilities 14,783 13,059
 Stockholders' equity:
 Preferred stock, $.01 per share.
 Authorized 3,000,000 shares, no shares
 issued or outstanding -- --
 Common Stock, $.01 par value per share.
 Authorized 9,000,000 shares, issued and
 outstanding 6,360,093 and 6,357,413 shares
 in 1993 and 1992 64 64
 Nonvoting common stock $.01 par value per
 share. Authorized 3,000,000 shares,
 no shares issued or outstanding -- --
 Additional paid-in capital 61,330 61,329
 Accumulated deficit (31,072) (33,043)
 Total stockholders' equity 30,322 28,350
 $45,105 $41,409
 -0- 7/27/93
 /CONTACT: Thomas J. Baldwin, senior vice president, finance, and chief financial officer of Quantum Restaurant Group, Inc., 516-484-0777/
 (QRST)


CO: Quantum Restaurant Group ST: New York IN: LEI SU: ERN

TM-LD -- NY004 -- 5988 07/27/93 06:46 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 27, 1993
Words:1334
Previous Article:BAROID CORPORATION AND BJ SERVICES ANNOUNCE BUSINESS ALLIANCE
Next Article:AMEX TO LAUNCH OPTIONS ON VIDEO LOTTERY TECHNOLOGIES, INC.
Topics:


Related Articles
QUANTUM RESTAURANT GROUP REPORTS SECOND QUARTER AND YEAR-TO-DATE RESULTS: SALES AND EARNINGS UP
PEPSICO REPORTS RESULTS
HALLWOOD GROUP REPORTS FISCAL 1995 SECOND QUARTER RESULTS
QUANTUM RESTAURANT GROUP REPORTS 1995 THIRD QUARTER RESULTS, INCLUDES ONE-TIME $2.6 MILLION CHARGE FOR LITIGATION SETTLEMENT
QUANTUM RESTAURANT GROUP REPORTS 1996 FIRST QUARTER REVENUES AND NET INCOME UP 11%; INCOME BEFORE INCOME TAXES UP 39%
RUDY'S RESTAURANT GROUP 2ND QUARTER PROFIT UP OVER 100% ON 29% REVENUE RISE
Taco Cabana Reports 2nd Quarter Results
Frisch's Reports Higher Sales and Earnings in Second Quarter.
Consolidated Products, Inc. Reports Record Revenues and Earnings for the 52nd Consecutive Quarter.
Elmer's Restaurants, Inc. Expects Strong Second Quarter Earnings; Announces New Restaurant Opening.

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