SIZZLER REPORTS LOWER SECOND QUARTER PROFITS
SIZZLER REPORTS LOWER SECOND QUARTER PROFITS LOS ANGELES, Nov. 12 /PRNewswire/ -- Sizzler International Inc.
(NYSE: SZ) experienced a reduced level of earnings in the second quarter on revenues that were 9 percent higher than in the comparable period one year earlier.
For the 12 weeks ended Oct. 13, 1991, net income amounted to $5,556,000, equal to 19 cents per share, compared with $5,706,000 or 24 cents per share, in the prior year. Revenues for the period were $124,471,000, compared with $114,715,000 one year ago. Net income for the 24 weeks was $12,594,000, equal to 42 cents per share, as against $11,068,000, or 48 cents per share last year. The increase in net income reflects the elimination of Sizzler's minority interest as a result of a corporate restructuring completed in April, 1991. Revenues for the 24 weeks totaled $250,974,000, up 10 percent from $227,622,000 in the first half of the prior fiscal year. Richard P. Bermingham, chief executive officer, said: "Our results continued to be mixed, with strong gains being posted by our international restaurants, and weak results in the United States. The recession and highly competitive conditions continue to negatively impact our restaurants in California where a substantial number of Sizzlers are concentrated. Average restaurant sales, average check and customer counts were lower in the United States. "Our Sizzler and KFC restaurants in Australia performed very well. Earnings before interest and taxes from our international restaurants were more than 50 percent higher in the second quarter on a 34 percent revenue increase. Average restaurant sales for company- operated Sizzler restaurants in Australia increased by 11 percent. Internationally, we have added nine company-operated Sizzler restaurants, 13 franchised Sizzler restaurants and five new Kentucky Fried Chicken restaurants since the second quarter of last year. The company will continue to pursue its aggressive program of expansion throughout the Pacific Basin, with emphasis on Asia, New Zealand and Australia, via the development of both new company-operated and franchised Sizzler restaurants. "Recently, we announced a new joint venture with Scott's Hospitality Inc., one of Canada's pre-eminent restaurant companies, for the development of 10 Sizzler restaurants in the Toronto area, over the next 18 months. Sizzler continues to actively explore the expansion of its international business into other attractive markets, including Mexico and Europe, which we believe will be receptive to the Sizzler concept." Bermingham concluded: "We are working hard to enhance all aspects of our operations. Throughout our system, we are placing a renewed emphasis on customer service and satisfaction. Our ability to develop and market new higher quality grill items will also be a key to building higher check averages and profit margins. As a result of the implementation of these programs, we expect to see improvements in the financial performance of the company." Since announcing in August that the board of directors had authorized the repurchase of up to 2,000,000 shares of the company's stock, the company has purchased and canceled a total of 362,600 shares. Sizzler International Inc. operates or licenses 695 Sizzler restaurants worldwide, consisting of 267 company-operated and 429 franchised restaurants. In addition, it operates 70 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 12 weeks ended Pct. Increase Oct. 13, 1991 Oct. 14, 1990 (Decrease) Systemwide sales $257,537 $251,979 2.2 pct. Revenues $124,471 $114,715 8.5 pct. Net income $5,556 $5,706 (2.6 pct.) Net income per common share $0.19 $0.24(a) (20.8 pct) Common and common equivalent shares 29,748,000 22,727,000(a) 30.9 pct. Common shares, assuming full dilution 29,753,000 22,727,000(a) 30.9 pct. For the 24 weeks ended Pct. Increase Oct. 13, 1991 Oct. 14, 1990 (Decrease) Systemwide sales $524,209 $501,572 4.5 pct. Revenues $250,974 $227,622 10.3 pct. Net income $12,594 $11,068 13.8 pct. Net income per common share $0.42 $0.48(a) (12.5 pct.) Common and common equivalent shares 29,793,000 22,727,000(a) 31.1 pct. Common shares, assuming full dilution 29,795,000 22,727,000(a) 31.1 pct. (a) Share and per share data is presented on a historical combined basis using the outstanding shares of Collins Foods International Inc. -0- 11/12/91 /CONTACT: Christopher R. Thomas, executive VP of finance of Sizzler, 310-827-2300/ (SZ) CO: Sizzler International Inc. ST: California IN: SU: ERN AL-SE -- LA001 -- 3353 11/12/91 10:02 EST
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|Date:||Nov 12, 1991|
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