RALLY'S NET INCOME UP 41 PERCENT FOR THIRD QUARTER
RALLY'S NET INCOME UP 41 PERCENT FOR THIRD QUARTER LOUISVILLE, Ky., Oct. 26 /PRNewswire/ -- Rally's Inc.
(NASDAQ: RLLY), America's largest double drive-thru hamburger chain, reported record third quarter earnings.
Net income of $2.7 million grew 41 percent compared with net income of $1.9 million for the quarter ended a year ago. Earnings per share of $.22 advanced 29 percent from earnings per share of $.17 for the same quarter in the prior year. Wayne Albritton, president and chief operating officer, said: "Same store sales grew 4 percent for the quarter and 6 percent for the year to date. The growth in same store sales in 1992 represents real growth in customer counts because Rally's has lowered prices." Albritton also noted that company-owned store level operating margins improved in the quarter to 17 percent of sales compared with 16 percent in the prior year even with the company lowering its prices. Systemwide sales for the third quarter of 1992 increased 37 percent to $79.8 million compared with $58.4 million a year ago. Systemwide sales for the first nine months of 1992 were $217.9 million, or a 36 percent increase over the same period a year ago. Net income of $6.5 million for the first nine months of 1992 grew 54 percent compared with $4.2 million for the same period a year ago. Earnings per share of $.54 for the first nine months of 1992 grew 42 percent compared with earnings per share of $.38 a year ago. During the third quarter, 25 new Rally's restaurants were opened. For the first nine months, 49 new restaurants have been opened and 46 restaurants have been added to the chain through acquisitions. Albritton said, "Our plans were to grow the chain by 90 to 95 new stores in 1992, exclusive of acquisitions and we will meet our goal." In August, the company completed an offering of 575,000 shares of common stock at $25.25 per share. The proceeds of this offering were used to repay interim financing incurred to finance the Zipps acquisition and for costs incurred in converting those restaurants to Rally's. The company declared a three-for-two stock split which was paid on Sept. 10, 1992, in the form of a 50 percent stock dividend to holders of record on Aug. 28, 1992. At Oct. 19, 1992, there were 427 restaurants in operation in 25 states. RALLY'S INC. Consolidated Statements of Income(a) (Dollars in thousands, except per share information) 13 Weeks Ended 40 Weeks Ended Oct. 4, Sept. 29, Oct. 4, Sept. 29, 1992 1991 1992 1991 Systemwide sales $79,834 $58,448 $217,922 $159,734 Total revenues $32,401 $25,332 $86,643 $69,228 Total costs and expenses 28,206 22,001 76,247 62,155 Income from operations 4,195 3,331 10,396 7,073 Total other income (expense) (35) (135) (320) (267) Income before income taxes 4,160 3,196 10,076 6,806 Provision for income taxes 1,438 1,269 3,597 2,607 Net income $2,722 $1,927 $6,479 $4,199 Weighted average shares outstanding(b)(c) 12,418 11,099 12,029 11,082 Earnings per share(b) $.22 $.17 $.54 $.38 (a) Unaudited, subject to year-end review. (b) The company declared a 3-for-2 stock split which was paid on Sept. 10, 1992, in the form of a 50-percent stock dividend to holders of record on Aug. 28, 1992. The effects of this stock split have been reflected for all periods presented. (c) In August, the company completed an offering of 575,000 shares of common stock at $25.25 per share. The proceeds of this offering were used to repay interim financing incurred to finance the Zipps acquisition and for costs incurred in converting those restaurants to Rally's. -0- 10/26/92 /CONTACT: Donald C. Moore, senior VP and CFO of Rally's, 502-245-8900/ (RLLY) CO: Rally's Inc. ST: Kentucky IN: REA LEI SU: ERN
EH-BB -- LA020 -- 4662 10/26/92 10:21 EST
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|Date:||Oct 26, 1992|
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