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 INDIANAPOLIS, Feb. 16 /PRNewswire/ -- E.W. Kelley, chairman, presided over Consolidated Products, Inc.'s (NASDAQ: COPIC) 59th annual shareholders' meeting held at its corporate offices. He proudly reported continued record earnings before interest and income taxes for this fiscal year even with the many negative factors facing today's economic and business climate. He continued his remarks by attributing the continued highly favorable results to the company's marketing and advertising programs.
 He highlighted his remarks by stating that the addition of Alan Gilman as president and chief executive officer has complemented the management strength with Gilman's strong management and marketing background and proven abilities. This combination of management talent has been the backbone of the aggressive franchising expansion effort in that four new franchisees have been added and it is expected that this trend will continue.
 The company plans to open thirteen Steak n Shake restaurants in 1993, including five franchise units. A Steak n Shake restaurant opened in Indianapolis today and a new unit will open Feb. 17 in St. Louis. Additionally, five Steak n Shake units are under construction including two franchise units. One of the units is located in South Bend which represents the company's first restaurant in this market. Steak n Shake's expansion plan in Northern Indiana includes two additional restaurants in the South Bend/Mishawaka/Elkhart area and another unit in Fort Wayne.
 Kelley introduced Gilman who stated in his comments that the company's strong results and successful marketing efforts have encouraged management to pursue an aggressive new store development program over the next 5 years. He added "our successful experience with television has helped sharpen our new store strategic thinking regarding market expansion. In the 1993 calendar year, we will open 3 new units in the South Bend television market. Northern Indiana is a new market for us, but a very logical extension." He confirmed that the company expects to add 13 new restaurants in fiscal 1993 and 81 restaurants in the coming five years, including 42 franchise units. He concluded his statements by commenting on the newly instituted Employee Stock Purchase Plan which was approved by shareholders.
 Jim Bear, senior vice president and treasurer, reported that fiscal 1992 was an outstanding year for the company as revenues and operating earnings (earnings before interest and income taxes) reached record levels for the sixth consecutive year. Revenues increased to $127 million and net earnings increased 28 percent to $4.2 million. Primary earnings per share were $.74 up 21 percent and fully diluted earnings per share were $.53, an increase of 15 percent. He stated that these record results are attributable to the continuing double digit comparable unit sales gains in the Steak n Shake restaurants arising from ongoing marketing programs, particularly television advertising, and tight management operating controls.
 Steak n Shake's operating profit before general and administrative expenses as a percentage of revenues was 21.2 percent in 1993. "We believe this percentage is among the best in the industry," he strongly stated. Fiscal 1993 is off to another record year as revenues and operating earnings for the first quarter reached record levels for the twenty-seventh consecutive quarter. Net earnings increased 32 percent over the prior year. Bear added that the board of directors declared a 10 percent stock dividend to shareholders of record on Dec. 31, 1992. Another important event for the company was that 26 percent of all eligible employees chose to enroll in the company's newly adopted Employee Stock Purchase Plan.
 James E. Richmond, vice president of real estate and franchising, discussed the company's plan to open ten Steak n Shake restaurants within the next twelve months in the following markets: three units in South Bend/Mishawaka/Elkhart; two units in Indianapolis; Florence, Ky.; Anderson, Ind.; Fort Wayne, Ind.; Paducah, Ky.; and Ocala, Fla.
 Richmond stated that four new Steak n Shake franchisees have been added within the last eight months. The company's expansion plan provides for the opening of 42 franchise units over the next five years including five units in 1993. Existing franchise commitments include the opening of 21 restaurants during the next five years as follows: seven units in Atlanta; four units in Charlotte, N.C.; four units in the Louisville and Bowling Green, Ky. market; and four units in the Jonesboro and Little Rock, Ark. market. He concluded by stating that the company has formed a finance subsidiary whose mission is to assist with Steak n Shake's franchise growth program. This entity is expected to become an additional profit center for the company.
 Gary Reinwald, vice president of operations for the Steak n Shake organization, continued with enthusiasm for the opportunities that growth is bringing to the company. He emphasized that the continuation of training and leadership development programs are essential to the company's expansion plans. Reinwald discussed the effectiveness of the in-depth training programs in molding employees into the Steak n Shake culture. He highlighted his comments by stating that the company has established an intern program with Purdue University's Hotel and Restaurant School which will provide a great source of management talent. He concluded his comments by stating "the depth of our organization and the effectiveness of our training programs provide a solid foundation on which to support the new store growth programs we have undertaken."
 Richard C. May, president of the Specialty Group, ended the meeting with a brief overview of the 13 theme restaurants. He stated that the strategic plan calls for the near term closing of 2 unsuccessful operations. He added "the corporate strategic plan calls for the identification of a single concept that will position this Group to compete successfully in the fast growing, middle upscale, casual dining segment."
 The meeting ended with Kelley suggesting that the latest updated report by Roger Lipton of Ladenburg Thalmann & Co., Inc. be reviewed by all shareholders. He also encouraged participants to read the two recently published articles in the Individual Investor, both articles being highly favorable about the company and emphasizing the undervalued stock price. Stuart Skalka, the business writer, reported on the positive net worth of the company and spoke highly of the potential of the SnS Investment Company which was formed to assist future franchisees with financing and therefore encourage franchisee expansion.
 -0- 2/16/93
 /CONTACT: James W. Bear, senior vice president, Consolidated Products, Inc., 317-633-4100/

CO: Consolidated Products, Inc. ST: Indiana IN: LEI SU:

BM -- CL017 -- 6897 02/16/93 15:26 EST
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Date:Feb 16, 1993

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