SIZZLER POSTS LOWER THIRD QUARTER EARNINGS
SIZZLER POSTS LOWER THIRD QUARTER EARNINGS LOS ANGELES, March 12 /PRNewswire/ -- Sizzler International Inc.
(NYSE: SZ) reported lower net income in the third quarter, although revenues increased by 11.4 percent.
For the 16 weeks ended Feb. 2, 1992, net income was $4,574,000, or 16 cents per share, compared to $5,877,000, equal to 26 cents per share in the same quarter a year ago. Revenues for the quarter increased to $158,730,000 from $142,509,000 in the prior year. Net income for the 40 weeks was $17,168,000, or 58 cents per share, compared to $16,945,000, or 74 cents per share in the like period last year. Revenues climbed to $409,704,000 from $370,131,000 in the same period a year ago. Richard P. Bermingham, chief executive officer, commented: "Our International Division continues to record strong growth and increased profits. Domestically, the environment of our business remains challenging due to the recession and highly competitive conditions. Our base of domestic Sizzlers experienced decreased average restaurant sales, with California the most difficult market. "International sales climbed 36 percent from the prior year, reflecting higher average sales and customer counts at both our Sizzler and Kentucky Fried Chicken restaurants. Since last year's third quarter, our International Division has added 9 company- operated Sizzlers, and franchisees opened 13 more. "On the domestic front, we are making a concerted effort to improve our performance. As announced last month, we have expanded our senior management team with the addition of Hugh Duncan, a multi- talented executive, who brings a strong marketing and advertising background to his new duties as chief operating officer and president of the Sizzler U.S.A. Division. "Also, as planned for over three years, Tom Gregory retires as Sizzler's president on April 30, 1992, becoming vice chairman of the board and an active consultant to the company. In the past 18 years, Tom has made major contributions to Sizzler, and we are pleased that he will remain very active with us." The company also announced that Bermingham, who continues as Sizzler's chief executive officer, will assume the additional post of president, subsequent to Gregory's retirement. James A. Collins continues to serve as chairman of the board. Bermingham concluded: "While we have a strong concept, we must continue to refine and enhance operations. We have introduced, or are currently testing, new programs with a key goal to achieve a more consistent high quality execution of our menu. To this end, we are simplifying our menu and adding appealing new items. New strategies are being tested and results are encouraging. "Our recent engagement of a new advertising agency, Dailey & Associates, will provide added momentum to our marketing and promotions. We intend to continue Sizzler's aggressive international growth while slowing domestic expansion to focus on operations." Sizzler International Inc. operates or licenses 712 Sizzler restaurants worldwide, consisting of 277 company-operated and 435 franchised restaurants. In addition, it operates 75 highly successful Kentucky Fried Chicken restaurants in Queensland, Australia. SIZZLER INTERNATIONAL INC. Summary of Results Consolidated Statements of Income (Unaudited) (Dollars in thousands, except per share data) For the 16 weeks ended Pct. Increase Feb. 2, 1992 Feb. 3, 1991 (Decrease) Systemwide sales $317,145 $305,602 3.8 pct. Revenues $158,730 $142,509 11.4 pct. Net income $4,574 $5,877 (22.2) pct. Net income per common share $0.16 $0.26(a) (38.5) pct. Common and common equivalent shares 29,275,000 22,725,000(a) 28.8 pct. Common shares, assuming full dilution 29,285,000 22,729,000(a) 28.8 pct. For the 40 weeks ended Pct. Increase Feb. 2, 1992 Feb. 3, 1991 (Decrease) Systemwide Sales $841,355 $807,174 4.2 pct. Revenues $409,704 $370,131 10.7 pct. Net income $17,168 $16,945 1.3 pct. Net income per common share $0.58 $0.74(a) (21.6) pct. Common and common equivalent shares 29,620,000 22,728,000(a) 30.3 pct. Common shares, assuming full dilution 29,625,000 22,731,000(a) 30.3 pct. (a) Share and per share data is presented on a historical combined basis using the outstanding shares of Collins Foods International Inc. -0- 3/12/92 /CONTACT: Christopher Thomas, executive VP of Sizzler International Inc., 310-827-2300/ (SZ) CO: Sizzler International Inc. ST: California IN: LEI SU: ERN
SE-JL -- LA003 -- 7626 03/12/92 08:30 EST
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|Date:||Mar 12, 1992|
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