Exhibit 99.3
NEWS BULLETIN RF: [LOGO
FROM: WRC]
FRB|WEBER SHANDWICK WORLDWIDE
FINANCIAL COMMUNICATIONS -------------------
RESTAURANT CONCEPTS
15301 Ventura Blvd., Bldg B, Suite 300
Sherman Oaks, CA 91403
(818) 662-9800
NYSE: SZ
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FOR FURTHER INFORMATION:
AT THE COMPANY: AT FRB|Weber Shandwick:
Keith Wall Kim Forster James Hoyne Tricia Ross
Vice President and CFO Vice President, Planning General Information Investor/Analyst Contact
(818) 662-9800 (818) 662-9800 (310) 996-7463 (310) 996-7454
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FOR IMMEDIATE RELEASE
November 20, 2001
WORLDWIDE RESTAURANT CONCEPTS, INC. ANNOUNCES
SECOND QUARTER FISCAL 2002 RESULTS
HIGHLIGHTS:
. Second quarter revenues increase to $59.9 million from $54.6 million.
. Excluding impact of decline in the Australian dollar, revenues would
have been $62.7 million, an increase of 14.7%.
. Revenue growth primarily due to increased contribution from Pat &
Oscar's subsidiary and increase in same store sales of 7.9% for Sizzler
Australia and 3.7% for KFC.
. Net income increases 14.5% for the quarter.
. Overall performance continues to be impacted by weakness in U.S. and
Australian economies and weakness in the Australian dollar.
. 12/th/ Pat & Oscar's opened during the quarter.
. Pat & Oscar's, acquired last year, is accretive to earnings for second
consecutive quarter.
SHERMAN OAKS, CA--November 20, 2001--Worldwide Restaurant Concepts, Inc. (NYSE:
SZ) today reported financial results for the second quarter of fiscal 2002 ended
October 14, 2001.
The Company reported revenues of $59.9 million for the quarter, an increase of
9.7% over the $54.6 million reported in the comparable period in fiscal 2001.
Net income for the quarter increased 14.5%, to $355,000, or $0.01 per diluted
share, compared with net income of $310,000, or $0.01 per diluted share in the
same period a year ago. This increase is the result of the Company's continued
focus on top line growth while maintaining cost controls.
These results were achieved in spite of continued weakness in the U.S. and
Australian economies and a 9.1% decline in the Australian dollar from last year.
Excluding the effect of the exchange rate decline, revenues would have been
$62.7 million, an increase of 14.7%.
For the six months ended October 14, 2001, the Company reported revenues of
$121.2 million, a 10.9% increase from revenues of $109.3 million in the same
period last year. Worldwide Restaurant Concepts reported net income of $2.0
million, or $0.07 per diluted share, a decline of 36.4% from net income of $3.2
million, or $0.11 per diluted share, reported in the year-ago period.
"In the weeks both before and after September 11th, we've operated in a tough
economic environment. Domestic and international consumers are experiencing
increasing uncertainty about the economy, their jobs, and their security.
Against this backdrop, we're very pleased to have increased our quarterly net
income by over 14.0%. We've been able to do this by running promotions and
selectively testing new products that offer great value to the consumer. This
translated into a 7.9% increase in same store sales for Sizzler Australia and a
3.7% increase for KFC," said Charles Boppell, President and CEO of Worldwide
Restaurant Concepts, Inc. "We've combined these initiatives with our continued
effort to manage expenses and generate strong returns on our investments in our
operations." The Company's investments have included the addition of new
restaurants, at both Pat & Oscar's and KFC, and the installation of MenuLink, a
restaurant system for managing inventories, purchasing and labor scheduling.
The Company's domestic operations were more directly affected by the events of
September 11th and the economic slowdown. Although Sizzler USA reported a 0.7%
decline in same store sales for the second quarter, this represents a
significant improvement over the decline of 3.2% reported in the first quarter,
and can be attributed to marketing and promotional initiatives that focused on
delivering value to our customers. Pat & Oscar's reported a 1.8% decline in same
store sales, which was the caused by the economic environment, which resulted in
fewer catering orders, and cannibalization of certain mature store sales by
recently opened restaurants.
Pat & Oscar's on Track with Growth and Profitability
The increase in second quarter revenues is largely due to the increased
contribution from the Company's Pat & Oscar's division. The division was
acquired midway during the second quarter of fiscal 2001 and has since been
expanded from eight to twelve restaurants. For the second consecutive quarter,
the division was accretive to the Company's earnings and is expected to be
accretive for the full fiscal year.
"We've now marked the one year anniversary of the Pat & Oscar's acquisition and
we're pleased to have achieved several major milestones. We opened our twelfth
restaurant during the quarter, giving us a 50% increase from the base of eight
restaurants just a year ago. At the same time, we've reduced prime costs from
64.7% a year ago to 59.5% in the second quarter. We expect to end the current
fiscal year with fifteen restaurants and continue the improvements in our
margins," said Mr. Boppell.
Update on Share Repurchase Program
During the second quarter, the Company purchased approximately 493,000 shares
under the previously announced stock repurchase program. This brings the total
shares repurchased under that program to 2.0 million, the amount authorized by
the Company's Board of Directors.
Outlook for Fiscal 2002
"We're very pleased with the success of our promotional efforts in attracting
customers in this tough business environment and of our ability to bring these
sales down to the bottom line by managing costs. We plan to continue these
efforts throughout this fiscal year and this gives a cautious optimism for the
coming quarters," concluded Mr. Boppell.
Investor Conference Call
Worldwide Restaurant Concepts will be holding an investor conference call to
discuss the Company's financial and operational results today at 11:00 a.m. EST.
___ Investors will have the ___ opportunity to listen to the conference call
over the Internet at www.streetevents.com. To listen to the live call, please go
to the web site at least fifteen minutes early to register, download, and
install any necessary audio software. For those who cannot listen to the live
broadcast, a replay will be available shortly after the call.
About Worldwide Restaurant Concepts
Worldwide Restaurant Concepts, Inc., formerly known as Sizzler International,
Inc., operates, franchises or joint ventures 341 Sizzler(R)restaurants
worldwide, 107 KFC(R)restaurants primarily located in Queensland, Australia, and
13 Pat & Oscar'sSM restaurants.
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 Act of 1995. These statements may include but are not
limited to, statements regarding: (i) continuing growth in revenues and
earnings; (ii) further expansion of the Pat & Oscar's division; (iii) Pat
&Oscar's profitability in the third and fourth quarters and the fiscal year as a
whole; and (iv) continued improvement in Sizzler USA sales.
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 implement its
strategic plan and manage its costs and expenses; (b) the Company's ability to
continue to support the expansion of additional Pat & Oscar's units, minimize
any cannibalization, and identify suitable new sites; (c) whether Sizzler USA
can continue to attract customers with its new food offerings; (d) the Company's
ability to achieve further cost savings at Pat & Oscar's; (e) general economic
conditions, including recovery from the adverse consequences of the September
11th attacks; and (f) 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. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE TWELVE WEEKS ENDED OCT 14, 2001 AND OCT 15, 2000
(In thousands, except per share data)
Oct 14, Oct 15,
2001 2000
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(Unaudited) (Unaudited)
Revenues
Restaurant sales $ 58,025 $ 52,454
Franchise revenues 1,918 2,183
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Total revenues 59,943 54,637
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Costs and Expenses
Cost of sales 19,866 18,733
Labor and related expenses 16,687 15,029
Other operating expenses 14,480 12,761
Depreciation and amortization 2,198 2,109
General and administrative expenses 5,300 4,917
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Total operating costs 58,531 53,549
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Interest expense 1,052 933
Investment income (440) (452)
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Total costs and expenses 59,143 54,030
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Income before provision for income taxes 800 607
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Provision for income taxes 445 297
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Net income $ 355 $ 310
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Basic and diluted earnings per share $ 0.01 $ 0.01
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WORLDWIDE RESTAURANT CONCEPTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE TWENTY-FOUR WEEKS ENDED OCT 14, 2001 AND OCT 15, 2000
(In thousands, except per share data)
Oct 14, Oct 15,
2001 2000
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(Unaudited) (Unaudited)
Revenues
Restaurant sales $ 117,298 $ 104,766
Franchise revenues 3,917 4,529
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Total revenues 121,215 109,295
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Costs and Expenses
Cost of sales 40,067 37,676
Labor and related expenses 33,586 29,263
Other operating expenses 28,754 24,692
Depreciation and amortization 4,358 3,914
General and administrative expenses 10,777 9,229
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Total operating costs 117,542 104,774
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Interest expense 2,171 1,680
Investment income (912) (1,012)
Gain on Sale of Assets (412) -
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Total costs and expenses 118,389 105,442
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Income before provision for income taxes 2,826 3,853
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Provision for income taxes 807 678
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Net income $ 2,019 $ 3,175
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Basic and diluted earnings per share $ 0.07 $ 0.11
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WORLDWIDE RESTAURANT CONCEPTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
October 14, April 30,
ASSETS 2001 2001
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(Unaudited) (Audited)
Current Assets:
Cash and cash equivalents $ 18,399 $ 9,997
Restricted cash 3,339 7,852
Receivables, net of reserves of $739 at
October 14, 2001 and $965 at April 30, 2001 2,911 2,464
Inventories 4,116 4,211
Current tax asset 3,680 3,324
Prepaid expenses and other current assets 2,417 2,554
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Total current assets 34,862 30,402
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Property and equipment, net 60,023 60,011
Property held for sale, net 3,864 3,996
Long-term notes receivable, net of reserves of $3
at October 14, 2001 and $17 at April 30, 2001 833 994
Deferred income taxes 2,397 2,425
Goodwill, net of accumulated amortization of
$659 at October 14, 2001 and $659 at April 30, 2001 19,562 19,491
Intangible assets, net of accumulated amortization of
$967 at October 14, 2001 and $913 at April 30, 2001 2,220 2,208
Other assets 2,669 3,035
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Total assets $ 126,430 $ 122,562
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WORLDWIDE RESTAURANT CONCEPTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
October 14, April 30,
LIABILITIES AND STOCKHOLDERS' INVESTMENT 2001 2001
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(Unaudited) (Audited)
Current Liabilities:
Current portion of long-term debt $ 4,627 $ 5,597
Accounts payable 10,045 9,078
Other current liabilities 11,934 9,626
Income taxes payable 1,544 1,870
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Total current liabilities 28,150 26,171
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Long-term debt, net of current portion 25,217 24,085
Deferred gains and revenues 8,074 8,307
Pension liability 9,289 9,482
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;
outstanding 27,205,005 shares at October 14, 2001
and 27,744,799 shares at April 30, 2001 293 291
Additional paid-in capital 279,880 279,846
Accumulated deficit (215,027) (217,046)
Treasury stock, 2,000,000 shares at October 14, 2001
and 1,363,800 shares at April 30, 2001, at cost (4,135) (3,189)
Accumulated other comprehensive loss (5,311) (5,385)
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Total stockholders' investment 55,700 54,517
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Total liabilities and stockholders' investment $ 126,430 $ 122,562
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