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Roadhouse Grill, Inc. Announces Commencement Of Initial Public Offering

FT. LAUDERDALE, Fla., Nov. 26 /PRNewswire/ -- Roadhouse Grill, Inc. (Nasdaq: GRLL) today announced the pricing of its initial public offering of 2,500,000 shares of Common Stock at a per share purchase price of $6.00 per share. All of the 2,500,000 shares are being sold by the Company. The Company circulated a preliminary prospectus dated October 24, 1996 relating to the offering. Since the date of such prospectus, the Company priced the offering below the estimated price range in such prospectus of $9.00 to $11.00 per share.

The Company expects to receive approximately $13.4 million in net proceeds from the offering. The Company estimates that its capital expenditures during the balance of fiscal 1996 will aggregate $3.0 million. The Company further estimates that its capital expenditures during fiscal 1997, which will be used to open 15 new restaurants, will aggregate approximately $16 million. After repayment of certain indebtedness, the Company expects to have approximately $5.4 million of net proceeds from the offering remaining to be used to fund a portion of these capital expenditure requirements. Accordingly, the Company has revised its expectation set forth in such prospectus that cash from operations together with the net proceeds of the offering will be sufficient to fund the Company's capital requirements for the next six instead of eight months. As a result, the Company will be required to obtain additional financing to open the restaurants planned to be opened in fiscal 1997. There can be no assurance the Company will be able to obtain such financing on acceptable terms, if at all. During fiscal 1994 and 1995 the Company had negative cash flow from operations. In addition, the Company revised its proposed use of the net proceeds of the offering set forth in the preliminary prospectus to eliminate the planned repayment of $5.0 million owed to an affiliate of the Company.

The Company currently owns and operates 30 and franchises or licenses six full-service, casual dining restaurants under the name "Roadhouse Grill". The Roadhouse Grill concept offers a fun, value-oriented dining experience that features premium quality grilled entrees and friendly service consistent with the Company's motto: "Good Food and a Smile...That's Roadhouse Style!"(R). The comfortable, entertaining Roadhouse setting is designed to appeal to a broad range of customers, including business people, couples, singles and particularly families.

A copy of the prospectus relating to the Offering way be obtained from Piper Jafray, Inc., 222 South Ninth Street, Minneapolis, MN 55402 and Robertson Stephens & Company, 555 California Street, Suite 2600, San Francisco, CA 94104.

SOURCE Roadhouse Grill, Inc.
 -0- 11/26/96

/CONTACT: Dennis C. Jones, CFO/VP of Finance, Roadhouse Grill, Inc., 954-489-9699/


CO: Roadhouse Grill, Inc. ST: Florida IN: RST SU: OFR

RK-MS -- FLTU002 -- 4446 11/26/96 17:57 EST
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Publication:PR Newswire
Date:Nov 26, 1996
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