Worldwide Restaurant Concepts (SZ) Inactive
Filed: 19 Sep 05, 12:00am
FOR FURTHER INFORMATION: | ||||
| ||||
| N E W S B U L L E T I N | RE: | |||
| FROM: | ||||
 | ||||
15301 Ventura Blvd., Bldg B, Suite 300 Sherman Oaks, CA 91403 (818) 662-9800 NYSE: SZ |
| AT THE COMPANY: | AT FINANCIAL RELATIONS BOARD: | |||||
Keith Wall | Liz Baskerville | Laurie Berman | Tricia Ross | |||
Vice President and CFO | Director, Planning | General Information | Investor/Analyst Contact | |||
(818) 662-9800 | (818) 662-9800 | (310) 854-8315 | (617) 520-7064 | |||
September 16, 2005
WORLDWIDE RESTAURANT CONCEPTS, INC. ANNOUNCES FIRST
QUARTER FISCAL 2006 RESULTS
HIGHLIGHTS:
| • | Total revenues in the first quarter increased by 5.3 percent over the same period in prior year. |
| • | An 8.0 percent increase in the Australian dollar exchange rate, as compared to last year, contributed $0.3 million to first quarter earnings. |
| • | Net income for the quarter of $1.9 million, or $0.06 per diluted share. |
| • | Stockholder meeting to approve Pacific Equity Partners and Worldwide Restaurant Concepts merger announced. Meeting date set for September 21, 2005. |
SHERMAN OAKS, Calif. — September 16, 2005 — Worldwide Restaurant Concepts, Inc. (NYSE: SZ) today reported financial results for the first quarter ended July 24, 2005.
The Company reported revenues of $86.3 million for the first quarter of fiscal 2006, an increase of 5.3 percent from the $82.0 million reported in the prior year period. Net income for the 2006 first quarter was $1.9 million, or $0.06 per diluted share, compared to net income of $0.5 million, or $0.02 per diluted share, in the same period a year ago. The strengthening of the Australian dollar compared to last year contributed $4.1 million to 2006 first quarter revenue and $0.3 million to net income.
Merger Transaction Continues to Move Forward. Special Meeting Announced.
On August 22, 2005, the Company announced a special meeting, on September 21, 2005, to consider and vote upon the proposed merger between affiliates of Pacific Equity Partners and Worldwide Restaurant Concepts. The Company and Pacific Equity Partners continue to finalize the steps
FRB serves as financial relations counsel to this company, is acting on the company’s behalf in issuing this bulletin and receiving compensation therefore.
The information contained herein is furnished for information purposes only and is not to be construed as an offer to buy or sell securities.
Worldwide Restaurant Concepts, Inc.
Page 2of 5
necessary to completing the merger transaction. “Our first quarter restaurant operations continued the strong momentum of the fourth quarter,” commented Chuck Boppell, President and CEO of Worldwide Restaurant Concepts. “Sizzler USA ended the quarter with strong results thanks to two successful promotions: Steak and Lobster, as well as, the Ultimate Sizzlin’ Trio; Pat & Oscar’s continues to focus on recovering its momentum after the food-borne illness incident of last year, and our Australian subsidiary continues to deliver solid results. We are happy with all our divisions this quarter,” continued Mr. Boppell. “Additionally, the merger transaction is moving ahead as planned. We have mailed our proxy and have announced the special meeting in September,” added Mr. Boppell. Rob Koczkar, Managing Director of Pacific Equity Partners, echoed Mr. Boppell’s comments. “We are pleased that the shareholders will soon be able to vote on this merger and look forward to finalizing this transaction by the end of September,” added Mr. Koczkar.
About Worldwide Restaurant Concepts
Worldwide Restaurant Concepts, Inc. operates, franchises or joint ventures 310 Sizzler® restaurants worldwide, 112 KFC® restaurants located primarily in Queensland, Australia, and 21 Pat & Oscar’s® restaurants. Additional information about the Company can be found at www.wrconcepts.com.
Certain statements contained in this document may contain forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements may include but are not limited to statements regarding: (i) improving revenues and earnings; and (ii) completion of the pending merger transaction.
Worldwide Restaurant Concepts cautions that these statements are qualified by important factors that could cause actual results to differ materially from those reflected in the forward looking statements contained herein. Such factors include, but are not limited to: (a) the Company’s ability to complete the proposed merger transaction; (b) economic conditions, both generally and as they affect the restaurant industry in particular; and (c) other risks as detailed from time to time in the Company’s SEC reports, including Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and Annual Reports on Form 10-K.
[tables to follow]
Worldwide Restaurant Concepts, Inc.
Page 3of 5
WORLDWIDE RESTAURANT CONCEPTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THE TWELVE WEEKS ENDED JULY 24, 2005 AND JULY 25, 2004
(Unaudited)
(In thousands, except per share data)
July 24, 2005 | July 25, 2004 | |||||
Revenues | ||||||
Restaurant sales, net | $ | 84,038 | $ | 79,874 | ||
Franchise revenues | 2,292 | 2,078 | ||||
Total revenues | 86,330 | 81,952 | ||||
Costs, expenses and other | ||||||
Cost of sales (excluding depreciation and amortization reflected below) | 28,768 | 27,618 | ||||
Labor and related expenses | 22,077 | 21,596 | ||||
Other operating expenses | 20,006 | 20,153 | ||||
Depreciation and amortization | 2,799 | 2,805 | ||||
General and administrative expenses | 8,184 | 7,077 | ||||
Total operating costs, expenses and other | 81,834 | 79,249 | ||||
Operating income | 4,496 | 2,703 | ||||
Interest expense | 292 | 734 | ||||
Investment income, net | 186 | 124 | ||||
Income before income taxes and minority interest | 4,390 | 2,093 | ||||
Provision for income taxes | 1,822 | 1,164 | ||||
Minority interest expense | 708 | 440 | ||||
Net income | $ | 1,860 | $ | 489 | ||
Basic earnings per share | $ | 0.07 | $ | 0.02 | ||
Diluted earnings per share | $ | 0.06 | $ | 0.02 | ||
Worldwide Restaurant Concepts, Inc.
Page 4of 5
WORLDWIDE RESTAURANT CONCEPTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands)
July 24, 2005 | April 30, 2005 | |||||
| ASSETS | ||||||
Current Assets: | ||||||
Cash and cash equivalents | $ | 36,232 | $ | 34,379 | ||
Restricted cash | 5,341 | 5,330 | ||||
Receivables, net of an allowance of $451 at July 24, 2005 and $437 at April 30, 2005 | 3,933 | 2,760 | ||||
Inventories | 5,477 | 5,670 | ||||
Deferred income taxes | 5,485 | 5,485 | ||||
Prepaid expenses and other current assets | 3,522 | 4,371 | ||||
Assets related to restaurants held for sale | 2,232 | 2,232 | ||||
Total current assets | 62,222 | 60,227 | ||||
Property and equipment, net | 67,190 | 68,729 | ||||
Long-term notes receivable, net (including $151 related party receivables at July 24, 2005 and $160 at April 30, 2005) | 1,426 | 1,460 | ||||
Deferred income taxes | 6,971 | 7,192 | ||||
Goodwill | 1,723 | 1,723 | ||||
Intangible assets, net of accumulated amortization of $1,354 at July 24, 2005 and $1,322 at April 30, 2005 | 2,223 | 2,278 | ||||
Other assets | 536 | 925 | ||||
Total assets | $ | 142,291 | $ | 142,534 | ||
Worldwide Restaurant Concepts, Inc.
Page 5of 5
WORLDWIDE RESTAURANT CONCEPTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands, except par value)
| July 24, 2005 | April 30, 2005 | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
Current portion of long-term debt | $ | 7,021 | $ | 7,077 | ||||
Accounts payable | 17,590 | 16,426 | ||||||
Other current liabilities | 27,849 | 29,630 | ||||||
Income taxes payable | 3,831 | 4,327 | ||||||
Total current liabilities | 56,291 | 57,460 | ||||||
Long-term debt, net of current portion | 6,461 | 7,496 | ||||||
Deferred gains, rent and landlord incentives | 18,602 | 18,917 | ||||||
Pension liability | 13,668 | 13,817 | ||||||
Total liabilities | 95,022 | 97,690 | ||||||
Minority interest | 32,533 | 32,028 | ||||||
Stockholders’ Equity: | ||||||||
Preferred, authorized 1,000 shares, $5 par value; no shares issued or outstanding | — | — | ||||||
Common, authorized 50,000 shares, $0.01 par value; issued and outstanding 29,880 and 27,880 shares and 29,880 and 27,880 shares at July 24, 2005 and April 30, 2005, respectively | 299 | 299 | ||||||
Additional paid-in capital | 256,238 | 256,066 | ||||||
Accumulated deficit | (224,176 | ) | (226,036 | ) | ||||
Treasury stock, 2,000 shares at July 24, 2005 and at April 30, 2005, at cost | (4,135 | ) | (4,135 | ) | ||||
Accumulated other comprehensive loss | (13,490 | ) | (13,378 | ) | ||||
Total stockholders’ equity | 14,736 | 12,816 | ||||||
Total liabilities and stockholders’ equity | $ | 142,291 | $ | 142,534 | ||||