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SIZZLER HAS HIGHER REVENUES AND NET INCOME, BUT LOWER EARNINGS PER SHARE IN FISCAL YEAR

             SIZZLER HAS HIGHER REVENUES AND NET INCOME,
             BUT LOWER EARNINGS PER SHARE IN FISCAL YEAR
    LOS ANGELES, June 17 /PRNewswire/ -- Sizzler International Inc. (NYSE: SZ) today announced that net income for the 53 weeks ended May 3, 1992 advanced 14 percent to $22,115,000 from $19,471,000 in fiscal 1991.  The increase resulted from the elimination of minority interest after last year's restructuring program.  Net earnings per share totaled 75 cents, a decrease of 12 percent from 85 cents a year ago which reflects the greater number of shares outstanding as a result of the restructuring.
    Revenues for the year increased 11 percent to $543,179,000 from $491,358,000 last year, reflecting the company's rapidly expanding international operations.  Systemwide sales (which consist of sales from both company-operated and franchised restaurants) rose five percent to $1,121,384,000.
    Net income for the last 13 weeks of the fiscal year ended May 3, 1992 totaled $4,947,000, equal to 17 cents per share, compared with $2,526,000, or 11 cents per share, in the prior year.  Fourth quarter revenues were $133,475,000, compared with $121,227,000, a year ago.  The current quarter's increase reflects the inclusion of an additional week in the period, compared with a 12-week period in fiscal 1991.  Also, last year's fourth quarter had higher administrative and bad debt expenses.
    Richard P. Bermingham, president and chief executive officer, said:  "The year was one of sharp contrasts.  Internationally, the successful strategy we put in place seven years ago continues to produce strong gains in revenues and profits.  On the domestic front, however, our performance was very disappointing due to weak restaurant sales.
    "Our international division increased revenues by 37 percent to a record $172 million, and profits rose sharply.  The gains reflected continued strong performances by both our Sizzler and Kentucky Fried Chicken restaurants.  We benefited from higher average restaurant sales, plus more restaurants in operation.
    "During the year, we continued the rapid expansion of our international operations with the opening of 31 restaurants, bringing year-end totals to 83 Sizzlers, outside the United States, plus 76 KFC units in the Australian state of Queensland.
    "We entered more new international markets than ever before. Sizzler now operates in 11 countries and U.S. possessions, with new openings in New Zealand, Indonesia, Thailand and Kuwait last year. The rapid development of international markets is a major segment of our future strategy, and in the coming year we will pursue our carefully-planned international expansion with a very active program of opening both new company-operated and franchised restaurants."
    He continued:  "Domestically, we continue to experience pressure on average restaurant sales and customer counts, with Southern California an especially difficult market.  As a management team, we are directing our efforts at the issue of increasing comparable restaurant sales.  We have completed extensive research with customers to identify Sizzler's strengths and weaknesses and have developed our strategy to improve restaurant performance.
    "New restaurant development in the United States has been slowed while we concentrate on operations.  A strong emphasis on quality is a cornerstone of our strategy.  We are currently testing service and menu refinements in a limited number of restaurants.  A simplified menu with appealing new products, and new marketing and advertising programs are all part of the process.  We especially want to achieve a consistent, high quality execution of our menu.
    "We believe that we have the right strategy.  However, time will be needed to refine and gradually implement our program throughout the Sizzler system, and we don't anticipate any benefits in our first quarter ending July 26, 1992.  Therefore, with continued weakness in Western sales, we expect that first quarter net earnings per share will be substantially below last year's 24 cents.  As the year progresses, our strategic program should provide increasing benefits. Meantime, we remain enthusiastic about the international outlook and will continue to aggressively drive the growth of our foreign business."
    The board of directors declared the regular quarterly cash dividend of 4 cents per share, payable July 16, 1992 to shareholders of record June 26, 1992.
    Sizzler International Inc. operates or licenses 721 Sizzler restaurants worldwide, consisting of 280 company-operated and 441 franchised restaurants.  In addition, the company operates 76 highly successful Kentucky Fried Chicken restaurants in Queensland, Australia.
                     SIZZLER INTERNATIONAL INC.
                         Summary of Results
                  Consolidated Statements of Income
            (Dollars in thousands, except per share data)
                          For the         For the
                          13 weeks       12 weeks
                           ended           ended       Pct. Increase
                        May 3, 1992   April 28, 1991     (Decrease)
    Systemwide sales      $280,029       $259,253          8.0 pct.
    Revenues              $133,475       $121,227         10.1 pct.
    Net income              $4,947         $2,526         95.8 pct.
    Net income per
     common share            $0.17          $0.11(a)      54.5 pct.
    Common and common
     equivalent shares  29,216,000     23,986,000(a)      21.8 pct.
    Common shares,
     assuming full
     dilution           29,216,000     23,989,000(a)      21.8 pct.
                          For the         For the
                          53 weeks       52 weeks
                           ended           ended       Pct. Increase
                        May 3, 1992   April 28, 1991     (Decrease)
    Systemwide sales     $1,121,384     $1,066,427          5.2 pct.
    Revenues               $543,179       $491,358         10.5 pct.
    Net income              $22,115        $19,471         13.6 pct.
    Net income per
     common share             $0.75          $0.85(a)     (11.8 pct.)
    Common and common
     equivalent shares   29,519,000     23,043,000(a)      28.1 pct.
    Common shares,
     assuming full
     dilution            29,523,000     23,045,000(a)      28.1 pct.
    (a) Share and per share data is presented on a historical combined basis using the outstanding shares of Collins Foods International Inc.
    -0-                      6/17/92
    /CONTACT:  Christopher R. Thomas, executive VP of Sizzler, 310-827-2300/
    (SZ) CO:  Sizzler International Inc. ST:  California IN:  LEI SU:  ERN CH-JL -- LA018 -- 1280 06/17/92 18:16 EDT
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Publication:PR Newswire
Date:Jun 17, 1992
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