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 WEST PALM BEACH, Fla., Oct. 28 /PRNewswire/ -- TPI Enterprises, Inc. (NASDAQ-NMS: TPIE) today reported earnings of $.03 per share, or $576,000, for the quarter ended Oct. 3, 1993. This compares to a net loss of $9,169,000 or $0.50 per share for the same period of 1992. The 1993 earnings include $85,000, or $0.01 per share, from a positive adjustment to the gain from the sale of the company's remaining 50 percent interest in its theater operations reported during the second quarter of the year. The 1992 figure includes a loss of $10,385,000, or $0.57 per share, from the early extinguishment of debt associated with the financial restructuring that took place last year.
 On a year-to-date basis, the company's earnings were $0.44 per share in 1993 vs. a loss of $0.64 per share in 1992. In 1993, the gain from the sale of the theater operations contributed $0.31 per share to these earnings, while 1992 was negatively impacted by $0.65 per share for the early extinguishment of debt and by $0.16 per share for the cumulative effect of accounting changes.
 Revenue increased 7.5 percent during the third quarter of 1993 and 3.9 percent year-to-date over last year. The 1992 figures include results from the company's Hungry Fisherman and Danver's restaurants (a total of 10 units) while 1993 does not, since these concepts were disposed of during 1993. Excluding the Hungry Fisherman and Danver's restaurants, sales grew by 11.6 percent in the third quarter and by 8.0 percent year-to-date over last year. Overall sales in the Shoney's division increased 12.6 percent in the third quarter while same store sales declined 2.7 percent vs. 1992. In the Captain D's division, overall sales were up 6.2 percent, with comparable store sales up 1.9 percent over the prior year.
 Stephen R. Cohen, chairman of TPI, commented, "Our third quarter earnings were impacted by the softness we continue to experience in comparable store sales at the Shoney's concept, which offset the strong gains at our Captain D's units. Changes to the advertising campaign across the entire Shoney's system are being instituted with a new ad agency, Martin/Williams of Minneapolis, chosen this fall. We anticipate that the release of the new ad program early next year will provide additional impetus for us to return to the solid increases in same store sales that we enjoyed over the last several years." Cohen added, "Despite the weakness in same store sales at the Shoney's level, our earnings before interest, tax and depreciation rose by 8.7 percent during the first nine months of the year to $25.9 million."
 "We have put specific programs in place to reverse the trends in the Shoney's concept," commented J. Gary Sharp, president and chief executive office of the company. "We are changing to an upgraded menu in all of our Shoney's units. This will be supplemented by a new advertising campaign that will roll out during the first quarter of 1994. And finally, we are participating in the broad re-training program instituted by Shoney's, Inc. for managers across the system." Sharp added, "We are pleased with the turnaround we've experienced in our Captain D's. An enhanced menu, a review of our marketing plans, and an aggressive remodeling program have spurred sales growth in this concept."
 Net income in the third quarter reflects the impact of a 58 percent tax rate compared with last year's 29 percent rate, which was partially due to the recently enacted tax law changes. Furthermore, shares outstanding rose by 14 percent reflecting the sale of additional equity, funds, along with corporate cash balances, are being used to enhance the store buildout schedule. Cohen stated, "We expect returns from these new unit openings to more fully impact our bottom line over the next few quarters, as their operations become normalized."
 Interest expense for the third quarter of 1993 declined by over $400,000, or 15 percent, over the same period last year. Year-to-date interest expense was 30 percent lower than last year. "This dramatic improvement is the result of the financial restructuring completed last year and other transactions that have further enhanced our balance sheet," Cohen stated. Interest expense was offset in 1992 by interest income of $3,074,000 due primarily to interest received on an income tax refund, while interest income totaled $479,000 in 1993. Cost control programs at the administrative level enabled general and administrative expense to decline as a percent of revenues in both the third quarter and the first nine months of 1993.
 During the third quarter of 1993, TPI opened three new Shoney's restaurants and acquired five additional units. The acquisitions involved three Shoney's in Palm Beach and Broward counties in Florida and two in Phoenix. Both acquisitions also included exclusive territory for expansion. During the quarter, one new Captain D's was also opened. other development activity included completing the major renovation of two Shoney's and two Captain D's. "We have opened two additional Shoney's since the close of the quarter, bringing us to a total of 200 Shoney's. There are currently six additional Shoney's under construction that we anticipated opening before the end of the year," said Cohen. "To date, we have developed a total of 20 Shoney's this year, putting us well on track to achieve our expansion plans for the year."
 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 200 Shoney's and 71 Captain D's in North Carolina, Tennessee, Arkansas, South Carolina, Alabama, Mississippi, Texas, Florida, Georgia, and Arizona.
 Consolidated Summary of Operations
 (Unaudited; in thousands, except per-share data)
 Twelve Weeks Ended: Forty Weeks Ended:
 10/3/93 10/4/92 10/3/93 10/4/92
 Restaurant Revenues $70,326 $65,407 $225,309 $216,822(A)
 Operating Income 3,413 4,236 12,424 13,065
 Income from continuing
 operations before
 income tax provision 1,168 1,719 4,551 4,457(B)
 Provision for income
 taxes 677 503 1,959 1,304
 Income from continuing
 operations 491 1,216 2,592 3,153
 Gain on disposal of
 discontinued operations,
 net of income tax 85 -- 6,200 --
 Extraordinary item -- (10,385) -- (11,949)
 Cumulative effect of
 accounting changes -- -- -- (2,838)
 Net income (loss) 576 (9,169) 8,792 (11,634)
 Net income (loss) per
 common share:
 Continuing operations $0.02 $0.07 $0.13 $0.17
 Gain on disposal of
 discontinued operations 0.01 -- 0.31 --
 Extraordinary item -- (0.57) -- (0.65)
 Cumulative effect of
 accounting changes -- -- -- (0.16)
 Net income (loss) per
 common share 0.03 (0.50) 0.44 (0.64)
 Weighted average number
 of common and common
 equivalent shares
 outstanding 20,771 18,195 20,100 18,206
 (A) -- Restaurant revenues for the third quarter of 1992 include $2,374,000 in sales from Hungry Fisherman and Danver's restaurants; on a year-to-date basis, 1992 sales include $8,286,000 from these restaurants. Sales from these concepts are not included in the 1993 figures.
 (B) -- Year-to-date 1992 includes $3,074,000 of interest income duo primarily to interest received on an income tax refund. Interest income in 1993 totaled $479,000.
 -0- 10/28/93
 /CONTACT: Frederick W. Burford of TPI, 901-725-6400/

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

CK -- NY128 -- 8229 10/28/93 18:24 EDT
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Publication:PR Newswire
Date:Oct 28, 1993

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