EXHIBIT 99.1
NEWS RELEASE
| FOR IMMEDIATE RELEASE December 12, 2007 | For Further Information Contact: Michael L. Bowlin, Chairman (505) 266-5985 Rudy R. Miller, Chairman and CEO The Miller Group Investor Relations for the Company (602) 225-0504 |
BOWLIN TRAVEL CENTERS REPORTS RESULTS FOR
THIRD QUARTER OF FISCAL YEAR 2008
ALBUQUERQUE, NEW MEXICO, December 12, 2007 -- Bowlin Travel Centers, Inc. (OTCBB: BWTL) today reported third quarter fiscal year 2008 net sales of $6.663 million from continuing operations for the three months ended October 31, 2007, compared to net sales from continuing operations of $6.758 million for the three month period ended October 31, 2006. Net sales from continuing operations for the nine-month period ended October 31, 2007 was $21.608 million compared to net sales from continuing operations of $21.400 million for the nine months ended October 31, 2006. The company’s assets and stockholders’ equity has continued to grow in fiscal 2008 in part through the management of its marketable securities and other assets.
“The rising cost of fuel that reduces the disposable income for our traveling public as well as general concerns regarding a weakening economy effected sales at our travel centers in the third quarter,” commented Michael L. Bowlin, Chairman, President and Chief Executive Officer. “One operational focal point this year has been the implementation of upgrades in our inventory monitoring systems. We have invested in proprietary software and related equipment to tighten inventory controls and improve the movement of inventory, both major factors in controlling our cost of goods sold.
Bowlin Travel Centers Reports Results for Third Quarter of Fiscal 2008
December 12, 2007
“We recorded the previously announced second quarter sale of an underperforming location that added $549,000, net of taxes, to our third quarter net income. Two other underperforming locations remain on the market for sale,” Bowlin continued. “Our highly successful supervisory support and training programs will be ongoing throughout the remainder of fiscal 2008.”
Strategically located on major interstate highways, the Company operates travel centers that utilize co-branding agreements with national companies. The Company's current operations are located in the Southwestern United States.
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| Visit our web sites at: | www.bowlintc.com | and | www.shopbowlin.com |
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Certain statements contained herein with respect to factors which may affect future earnings, including management’s beliefs and assumptions based on information currently available, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements that are not historical facts involve risks and uncertainties, and results could vary materially from the descriptions contained herein. For more details on risk factors, see the company’s annual reports on Form 10-K, quarterly reports on Form 10-Q and other filings with the Securities and Exchange Commission.
Bowlin Travel Centers Reports Results for Third Quarter of Fiscal 2008
December 12, 2007
The following tables outline the company's financial results for fiscal 2008 and fiscal 2007.
Condensed Balance Sheets and Statements of Income
BALANCE SHEET
(in thousands)
Assets | | October 31, 2007 (Unaudited) | | | January 31, 2007 (Audited) | |
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| Cash and cash equivalents | | $ | 2,201 | | | $ | 2,308 | |
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| Marketable securities | | | 2,200 | | | | 453 | |
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| Other current assets | | | 4,496 | | | | 4,171 | |
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| Total Current Assets | | | 8,897 | | | | 6,932 | |
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| Property and equipment, net | | | 9,870 | | | | 9,706 | |
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| Assets held for sale | | | 1,136 | | | | 2,559 | |
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| Other assets | | | 619 | | | | 809 | |
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| Total Assets | | $ | 20,522 | | | $ | 20,006 | |
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Liabilities and Shareholders’ Equity | | | | | | | | |
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| Current liabilities | | $ | 1,750 | | | $ | 1,880 | |
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| Long-term debt | | | 4,509 | | | | 4,198 | |
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| Long-term debt of assets held for sale | | | — | | | | 521 | |
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| Deferred income taxes | | | 1,042 | | | | 759 | |
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| Total Liabilities | | | 7,301 | | | | 7,358 | |
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| Shareholders’ equity | | | 13,221 | | | | 12,648 | |
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| Total Liabilities and Shareholders’ Equity | | $ | 20,522 | | | $ | 20,006 | |
more....
Bowlin Travel Centers Reports Results for Third Quarter of Fiscal 2008
December 12, 2007
CONDENSED STATEMENTS OF INCOME
(Unaudited)
(in thousands, except share and per share data)
| | | Three Months Ended | | | Nine Months Ended | |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| | | 2007 | | | 2006 | | | 2007 | | | 2006 | |
| | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | |
| | | | | | | | | | | | | |
| Net sales | | $ | 6,663 | | | $ | 6,758 | | | $ | 21,608 | | | $ | 21,400 | |
| Cost of goods sold | | | (4,792 | ) | | | (4,676 | ) | | | (14,935 | ) | | | (14,529 | ) |
| General and administrative expenses | | | (1,849 | ) | | | (1,821 | ) | | | (5,756 | ) | | | (5,440 | ) |
| Depreciation and amortization | | | (205 | ) | | | (191 | ) | | | (594 | ) | | | (563 | ) |
| | | | (183 | ) | | | 70 | | | | 323 | | | | 868 | |
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| Interest expense | | | (83 | ) | | | (86 | ) | | | (298 | ) | | | (256 | ) |
| Other non-operating income | | | 106 | | | | 100 | | | | 295 | | | | 255 | |
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| Income (loss) from continuing operations before income taxes | | | (160 | ) | | | 84 | | | | 320 | | | | 867 | |
| Income tax benefit (expense) | | | 53 | | | | (43 | ) | | | (133 | ) | | | (350 | ) |
| Income (loss) from continuing operations | | | (107 | ) | | | 41 | | | | 187 | | | | 517 | |
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| Discontinued operations | | | | | | | | | | | | | | | | |
| Loss from operations of discontinued components | | | (68 | ) | | | (84 | ) | | | (270 | ) | | | (242 | ) |
| Income tax benefit | | | 28 | | | | 36 | | | | 107 | | | | 98 | |
| | | | (40 | ) | | | (48 | ) | | | (163 | ) | | | (144 | ) |
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| Income from disposal of discontinued operations, net of income tax expense | | | — | | | | — | | | | 549 | | | | — | |
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| Net income (loss) | | $ | (147 | ) | | $ | (7 | ) | | $ | 573 | | | $ | 373 | |
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| Earnings (loss) per share: | | | | | | | | | | | | | | | | |
| Basic and diluted, continuing operations | | $ | (0.02 | ) | | $ | (0.009 | ) | | $ | 0.04 | | | $ | 0.11 | |
| Basic and diluted, discontinued operations | | $ | (0.01 | ) | | $ | (0.01 | ) | | $ | (0.03 | ) | | $ | (0.03 | ) |
| Basic and diluted, disposal of discontinued operations | | | — | | | | — | | | $ | 0.12 | | | | — | |
| Basic and diluted, net income (loss) | | $ | (0.03 | ) | | $ | (0.001 | ) | | $ | 0.13 | | | $ | 0.08 | |
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Weighted average common shares outstanding | | | 4,583,348 | | | | 4,583,348 | | | | 4,583,348 | | | | 4,583,348 | |
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