SIZZLER INTERNATIONAL, INC.
Page 1 of 8
EXHIBIT 99.4
N E W S B U L L E T I N
FROM:
[LOGO OF THE FINANCIAL RELATIONS BOARD] [LOGO OF SIZZLER
INTERNATIONAL, INC.]
RE: SIZZLER INTERNATIONAL, INC.
6101 W. Centinela Ave., Suite 200
Culver City, CA 90230
(310) 568-0135
NYSE: SZ
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AT THE COMPANY: AT THE FINANCIAL RELATIONS BOARD:
Charles Boppell Kim Forster Haris Tajyar Tricia Ross
President and CEO Vice President, Planning General Information Investor Contact
(310) 568-0135 (310) 568-0135 (310) 442-0599 (310) 442-0599
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FOR IMMEDIATE RELEASE
March 8, 2001
SIZZLER INTERNATIONAL REPORTS
THIRD QUARTER FINANCIAL RESULTS
HIGHLIGHTS:
. Total revenues increase over 7.0% to $76.9 million
. Earnings impacted by Australian exchange rate, store opening costs and E. coli
. Same-store sales growth of 5.5% at Oscar's
. Oscar's growth plan on-track with 10th store opening
. Sizzler USA opens first new company store in eight years and completes re-
imaging program as scheduled
CULVER CITY, CA--March 8, 2001--Sizzler International, Inc. (NYSE: SZ) today
reported financial results for the sixteen week and forty week periods of fiscal
2001 ended February 4, 2001.
For the third quarter of fiscal 2001, Sizzler reported revenues of $76.9
million, a 7.0% increase over revenues of $71.9 million reported for the same
period in fiscal 2000. Excluding the effect of the weakening Australian dollar
exchange rate, revenue would have been $84.3 million, an increase of more than
17% over prior year. The Company reported a net loss for the quarter of $1.4
million, or ($0.05) per diluted share, compared to a net loss of $4.9 million,
or ($0.17) per diluted share, for the same period last year. Excluding one-
time items, the Company posted net income of $1.3 million, or $0.05 per share
for the quarter last year.
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Financial Relations Board, Inc. serves as financial relations counsel to this
company is acting on the company's behalf in issuing this bulletin and
receiving compensation therefor. The information contained herein is furnished
for information purposes only and is not to be construed as an offer to buy or
sell securities
Sizzler International, Inc.
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"Operationally, we achieved several milestones during the quarter. We
successfully completed the re-imaging of our domestic Company-owned Sizzlers and
opened our first Company-owned Sizzler in eight years. In addition, Oscar's
continues to successfully execute its growth strategy and opened its tenth
unit," said Charles Boppell, President and CEO of Sizzler International.
"However, this quarter's operating results represent a short pause as we invest
in Sizzler's long term future with the Oscar's expansion and Sizzler USA
remodels. As expected, Oscar's accounted for $1.2 million in losses this
quarter. This is attributable in large part to costs associated with new store
openings and the infrastructure needed to support future unit growth. In
addition, we were affected by the dramatic decline in the Australian dollar
exchange rate, and residual negative perceptions due to the E.coli episode last
year," said Boppell.
Nine Month Results
For the forty weeks ended February 4, 2001, the Company reported revenues of
$186.2 million, an increase of 1.1% from $184.2 million for the same period last
year. Sizzler reported net income of $1.8 million, or $0.06 per diluted share,
compared with a net loss of $0.3 million, or ($0.01) per diluted share, for the
year-ago period.
Re-Imaging of Company-owned Sizzlers Completed on Schedule
"The re-imaging of our domestic stores is the foundation for the future growth
of the Sizzler brand in the U.S. We're proud of the on-time, successful
completion of this re-imaging at 56 locations, which represents our entire
company owned restaurant system, with the exception of the restaurants that we
recently acquired and units subject to short leases," said Thomas E. Metzger,
President and CEO of Sizzler USA. "In conjunction with the remodeling and
repositioning of Sizzler USA from a buffet to a grill and steakhouse concept,
we've also expanded our television advertising campaign to reach Hispanic
markets and have introduced the Sizzler Chef as a recurring theme."
Same store sales for the sixteen weeks ended February 4, 2001 increased 0.1%
across Company-owned locations, compared to same period last year. "We continue
to see positive customer response to our remodels, in line with their
performance in the second quarter. Stores that were fully launched and
established in their markets before the E.coli incident continue to be our
strongest performers. The stores launched during and after the incident have
needed longer to attract new customers" said Metzger. "In addition, our domestic
stores did suffer from the impact of colder, wetter weather conditions than
during last year's winter."
Oscar's Growth Plan
"During the third quarter, Oscar's generated strong same store sales increases
of 5.5% versus last year," said Mr. Boppell. "In January, we also opened the
tenth Oscar's, in Orange County, California. Continuing with our regional
expansion strategy, we're planning to open an additional four to six units
during the course of the next twelve months," concluded Boppell.
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Sizzler International, Inc.
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Oscar's contributed $9.4 million in revenue in the third quarter and, as stated
at the time of the acquisition, is expected to be accretive to earnings in its
second full year.
Australian Operations Strong in Spite of Exchange Rate Weakness
The over 16% decline in the Australian exchange rate continues to negatively
affect reported revenue, but does not impact business fundamentals. Consumers
are gradually adjusting to the recently-imposed 10% goods and services tax
(GST). KFC experienced 2.6% sales same store growth, while the higher check
average Sizzler reported a modest 0.5% decrease in same stores sales compared to
the year-ago period.
During the third quarter, the Australian credit facility was reduced to $23.0
million. Approximately $1.9 million in debt payments were made in Australian
currency and were not affected by the exchange rate.
Investor Conference Call
Sizzler will be holding an investor conference call to discuss the Company's
financial and operational results Thursday, March 8, 2001 at 11:00 am EST. The
public will have the opportunity to listen to the live conference call over the
Internet through StreetEvents at www.streetevents.com. For those who cannot
listen to the live broadcast, a replay will be available shortly after the call.
About Sizzler
Sizzler International, Inc. operates, franchises or joint ventures 347
Sizzler(R) restaurants worldwide, in addition to 104 KFC(R) restaurants
primarily located in Queensland, Australia and 10 Oscar's in the southwest
United States.
To the extent that certain statements contained in this document may be deemed
under federal securities laws to be forward-looking statements, Sizzler intends
that they be subject to the safe-harbor applicable to forward-looking statements
under such laws. Such statements may include, but are not limited to,
statements regarding (i) the anticipated growth in sales at Sizzler locations;
(ii) the timing of the opening of new Oscar's restaurants; (iii) whether Oscar's
will be accretive to earnings in the second year; and (iv) sales and earnings
from Australian Sizzler(R) and KFC units. Sizzler cautions that these
statements are qualified by important factors that could cause actual results to
differ from those reflected by the forward-looking statements contained herein.
Such factors include, but are not limited to, (a) the continuing favorable
response to Sizzler's newly remodeled stores and/or new food offerings and
eliminating any residual impact from E.coli; (b) Oscar's ability to locate
suitable restaurant sites and open units as scheduled; (c) the performance of
new Oscar's units and the continued growth in sales at existing Oscar's
restaurants; (d) whether the Australian Goods and Services Tax (GST) will
continue to have any adverse impact on KFC and Sizzler; and (e) other risks as
detailed from
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Sizzler International, Inc.
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time to time in Sizzler's SEC reports, including Quarterly Reports on Form 10Q,
Current Reports on Form 8-K, and Annual Reports on Form 10-K.
For more information on Sizzler International, Inc. via facsimile at no cost,
simply call 1-800-PRO-INFO and dial client code "SZ."
[ tables to follow ]
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Sizzler Inernational, Inc.
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SIZZLER INTERNATIONAL, INC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE SIXTEEN WEEKS ENDED FEBRUARY 4, 2001 AND FEBRUARY 6, 2000
(In thousands, except for per share data)
SIXTEEN WEEKS ENDED
-------------------
FEBRUARY 4, FEBRUARY 6,
2001 2000
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(Unaudited)
Revenues
Restaurants $ 74,937 $ 69,828
Franchise operations 1,986 2,077
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Total revenues 76,923 71,905
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Costs and Expenses
Cost of sales 26,053 25,666
Labor and related expenses 21,692 19,177
Other operating expenses 18,603 15,574
Depreciation and amortization 3,131 2,652
Non-recurring items - 12,087
General and administrative expenses 7,754 6,713
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Total operating costs 77,233 81,869
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Interest expense 1,117 1,090
Investment income (315) (516)
Other income (350) (791)
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Total costs and expenses 77,685 81,652
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Loss before income taxes (762) (9,747)
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Provision (benefit) for income taxes 614 (4,896)
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Net loss $ (1,376) $ (4,851)
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Basic and diluted loss per share $ (0.05) $ (0.17)
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Sizzler International, Inc.
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SIZZLER INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE FORTY WEEKS ENDED FEBRUARY 4, 2001 AND FEBRUARY 6, 2000
(In thousands, except for per share data)
FORTY WEEKS ENDED
-----------------
FEBRUARY 4, FEBRUARY 6,
2001 2000
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(Unaudited)
Revenues
Restaurants $179,703 $177,878
Franchise operations 6,515 6,295
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Total revenues 186,218 184,173
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Costs and Expenses
Cost of sales 63,729 65,376
Labor and related expenses 50,955 48,554
Other operating expenses 43,292 38,846
Depreciation and amortization 7,045 6,884
Non-recurring items - 12,087
General and administrative expenses 16,983 15,465
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Total operating costs 182,004 187,212
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Interest expense 2,797 2,778
Investment income (1,327) (896)
Other income (347) (791)
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Total costs and expenses 183,127 188,303
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Income (loss) before income taxes 3,091 (4,130)
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Provision (benefit) for income taxes 1,292 (3,848)
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Net income (loss) $ 1,799 $ (282)
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Basic and diluted earnings (loss) per share $ 0.06 $ (0.01)
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Sizzler International, Inc.
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SIZZLER INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
FEBRUARY 4, APRIL 30,
ASSETS 2001 2000
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(Unaudited) (Audited)
Current Assets
Cash and cash equivalents $ 18,131 $ 38,789
Receivables, net of reserves of $737 at
February 4, 2001 and $847 at April 30, 2000 2,528 4,173
Inventories 4,235 4,333
Prepaid expenses and other current assets 5,134 3,676
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Total current assets 30,028 50,971
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Property and equipment, net 59,952 46,316
Property held for sale, net 7,438 8,931
Long-term notes receivable, net of reserves of $133
at February 4, 2001 and $73 at April 30, 2000 740 1,224
Deferred income taxes 3,367 3,405
Intangible assets, net of accumulated amortization of
$1,261 at February 4, 2001 and $889 at April 30, 2000 20,047 1,876
Other assets 4,777 3,157
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Total assets $ 126,349 $ 115,880
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Sizzler International, Inc.
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SIZZLER INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
FEBRUARY 4, APRIL 30,
LIABILITIES AND STOCKHOLDERS' INVESTMENT 2001 2000
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(Unaudited) (Audited)
Current Liabilities:
Current portion of long-term debt $ 5,968 $ 5,206
Accounts payable 8,182 8,196
Other current liabilities 13,703 10,209
Income taxes payable 926 2,530
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Total current liabilities 28,779 26,141
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Long-term Liabilities:
Long-term debt, net of current portion 27,784 21,198
Deferred gain 7,664 8,269
Pension liability 9,337 9,637
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Total long-term liabilities 44,785 39,104
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Stockholders' Investment
Capital stock-
Preferred, authorized 1,000,000 shares, $5 par value;
no shares issued - -
Common, authorized 50,000,000 shares, $0.01 par value;
issued and outstanding 27,637,186 shares at February 6,
2001 and 28,067,539 at April 30, 2000 288 288
Additional paid-in capital 279,491 278,408
Accumulated deficit (217,970) (219,769)
Treasury stock, 1,129,400 shares at cost at February 6, 2001
and 706,700 at April 30, 2000 (2,894) (1,948)
Accumulated other comprehensive income (6,130) (6,344)
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Total stockholders' investment 52,785 50,635
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Total liabilities and stockholders' investment $ 126,349 $ 115,880
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