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TPI ENTERPRISES, INC. ANNOUNCES IMPROVEMENT IN FOURTH QUARTER AND FULL YEAR 1992 RESULTS

 WEST PALM BEACH, Fla. and MEMPHIS, Tenn., March 4 /PRNewswire/ -- TPI Enterprises, Inc. (NASDAQ: TPIE) reported that its net income from continuing operations for the year ended Dec. 31, 1992 was $662,000 or $0.04 per share versus a loss of $12,053,000 or $0.63 per share in 1991. The $0.04 per share profit in 1992 was after recording a general and administrative charge of $1,148,000 relating to the early retirement of a company executive and net restructuring charges of $3,586,000 relating primarily to the closing of all of the company's Hungry Fisherman restaurants. These charges totalled $0.18 per share, net of taxes. In addition, the company chose to adopt Financial Accounting Standard 112, "Employers' Accounting for Post-Employment Benefits," and Financial Accounting Standard 109, "Accounting for Income Taxes," for its 1992 fiscal year, resulting in a one time charge of $2,838,000 or $0.16 per share, net of taxes. Expenses associated with the early extinguishment of debt in 1992 contributed to an extraordinary loss of $0.65 per share, net of taxes. Accordingly, the company's overall net loss for the year was $14,125,000 or $0.77 per share. Net income in 1991 was $10,667,000 or $0.55 per share, including income from discontinued operations of $22,720,000, or $1.18 per share. Net income in 1991 included restructuring charges of $4,317,000 relating to reserves for closed facilities and the estimated costs of consolidating corporate activities and relocating corporate headquarters.
 For the full year of 1992, TPI's revenues rose 6.4 percent, enhanced by a same store sales increase of 2.5 percent in the Shoney's division of 0.1 percent at Captain D's. Food, supplies, and labor costs declined from 61.3 percent of sales to 59.5 percent, other operating expenses fell from 14.0 percent of sales to 13.7 percent, and selling, general, and administrative expenses dropped from 13.2 percent of sales to 11.8 percent. Accordingly, operating income for the year was up close to $11,000,000 on a revenue increase of $17,000,000. Adjusted to eliminate reserves and special charges in both years, the company's operating profit as a percent of sales jumped from 1.9 percent to 5.4 percent. Interest expense fell from $18,210,000 to $14,302,000, resulting from the financial restructuring completed early in the third quarter of 1992.
 For the fourth quarter of 1992, TPI reported a loss from continuing operations of $2,491,000 or $0.14 per share, down from a loss of $5,974,000 or $0.33 per share in 1991. The fourth quarter 1992 loss of $0.14 included the early retirement charges of $1,148,000 referred to above and the net restructuring charges of $3,586,000. The fourth quarter of 1991 included restructuring charges of $4,317,000 referred to above. Fourth quarter 1992 revenues increased 9.6 percent, led by a 3.9 percent increase in same store sales at the Shoney's concept and 0.7 percent at Captain D's. Operating expenses before restructuring and early retirement charges as a percent of sales were lower, leading to operating income of $2,100,000 in the quarter versus a loss of $1,300,000 in 1991. Fourth quarter 1992 interest expense decreased from $4,242,000 in 1991 to $2,407,000 in 1992.
 The closing of the Hungry Fisherman, a concept which is not consistent with the long term strategy of the company, involves seven restaurants in Tennessee, Mississippi and South Carolina. Offers to purchase the two owned South Carolina locations are pending. The remaining five properties are leased. The company does not expect this action to have a significant impact on its cash position as it expects the proceeds of the proposed sale of the two owned properties to offset cash expenses of closing the division. "The Hungry Fisherman is an old concept developed by prior management," said J. Gary Sharp, president of TPI Restaurants, Inc. "We are closing these restaurants in order to devote our full time and resources to the continued growth and development of our Shoney's and Captain D's franchises."
 "We have been extremely pleased with our operating results in 1992," said Stephen R. Cohen, chairman and chief executive officer of TPI. "We constantly strive to provide the best value to our customers by increasing the quality of our food and service while controlling costs. We intend to continue to create value for our shareholders by bringing in sources of long term capital with which to enhance our expansion plans."
 During 1992, the company opened nine new Shoney's restaurants and acquired six additional units. One acquisition also included the purchase of exclusive territory for expansion in a portion of south Florida. Furthermore, the company entered into an agreement with Shoney's, Inc., to co-develop Shoney's restaurants in eastern Michigan. Three new Captain D's were opened during the year, and one was acquired. "These openings and acquisitions meet the development targets we set for ourselves which will keep us on track to implement our long term growth goals," Cohen said. "We currently have eight restaurants under construction. Our Shoney's and Captain D's operations should continue to expand in the future."
 TPI is one of the largest restaurant franchisees in the United States as well as the nation's largest franchisee of Shoney's and Captain D's restaurants. The company currently owns and operates 182 Shoney's and 69 Captain D's in the nine southern states.
 TPI ENTERPRISES, INC. AND SUBSIDIARIES
 Condenses Consolidated Statements of Operations
 (in thousands except per share data)
 Periods ended Fiscal year Quarter
 Dec. 31 1992 1991 1992 1991
 (unaudited) (unaudited)
 Restaurant revenue $ 279,430 $ 262,612 $ 61,092 $ 55,735
 Operating income 11,560 630 (1,488) (5,577)
 Inc. (loss) from cont.
 opers. bef. provisions
 for inc. taxes 936 (16,388) (3,521) (8,219)
 Provisions (benefit) for
 income taxes 274 (4,335) (1,030) (2,245)
 Inc. (loss) from cont.
 operations 662 (12,053) (2,491) (5,974)
 Discont. operations:
 Loss from discont.
 operations -- (2,727) -- (602)
 Gain on disposal of
 discont. operations -- 25,447 -- 17,525
 Total -- 22,720 -- 16,923
 Income before
 extraordinary item 662 10,667 (2,491) 10,949
 Extraordinary item:
 Loss on early extinguish-
 ment of debt (11,949) -- -- --
 Cumulative effect of
 accounting changes (2,838) -- -- --
 Net income (loss) (14,125) 10,667 (2,491) 10,949
 Net income (loss) per share:
 Cont. operations $ .04 $ (.63) $ (.14) $ (.33)
 Discont. operations -- 1.18 -- .93
 Extraord. item (.65) -- -- --
 Cumulative effect of
 accounting changes (.16) -- -- --
 Total (.77) .55 (.14) .60
 Wtd. avg. no. of common
 & common equiv. shares
 outstanding 18,293 19,196 18,161 18,109
 -0- 3/4/93
 /CONTACT: Frederick W. Burford of TPI Enterprises, 901-725-6400/
 (TPIE)


CO: TPI Enterprises, Inc. ST: Florida, Tennessee IN: LEI SU: ERN

SM-LS -- NY001 -- 2848 03/04/93 09:38 EST
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Date:Mar 4, 1993
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