Exhibit 99.2
NEWS BULLETIN
[LETTERHEAD OF FRB WEBER SHANDWICK FINANCIAL COMMUNICATIONS]
[LOGO OF WORLDWIDE RESTAURANT CONCEPTS, INC.]
FOR IMMEDIATE RELEASE
June 27, 2002
WORLDWIDE RESTAURANT CONCEPTS, INC. ANNOUNCES FOURTH
QUARTER AND FULL YEAR FISCAL 2002 RESULTS
HIGHLIGHTS:
... Total revenue growth of 7.5 percent in the fourth quarter and 8.9 percent
for the year
... Second consecutive quarter of same store sales increases at all divisions
... EPS grew by 167 percent in the fourth quarter and increased 60 percent for
the full year
... Pat & Oscar's opened fourth restaurant this year
SHERMAN OAKS, Calif.--June 27, 2002--Worldwide Restaurant Concepts, Inc. (NYSE:
SZ) today reported financial results for the fourth quarter and fiscal year
ended April 30, 2002.
For the fourth quarter, the Company reported revenues of $63.6 million, an
increase of 7.5 percent over the $59.1 million in the comparable period in
fiscal 2001. Net income for the fourth quarter was $2.1 million, or $0.08 per
diluted share, compared to net income of $0.9 million, or $0.03 per diluted
share in the same period a year ago. The increase in net income for the quarter
was primarily attributable to improvements in store level profitability in both
domestic and international Sizzler operations and Pat & Oscar's, and to a tax
benefit resulting from the utilization of tax loss carry-forwards.
The Company reported revenues of $267.2 million for the fiscal year ended April
30, 2002, an increase of 8.9 percent or $21.8 million over revenues of $245.3
million in fiscal 2001. Net income for the year increased by 64.5 percent to
$4.5 million, or $0.16 per diluted share, from $2.7 million, or $0.10 per
diluted share in the prior year.
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FRB|Weber Shandwick 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.
Worldwide Restaurant Concepts, Inc.
Page 2 of 7
Second Consecutive Quarter Of Same Store Sales Growth At All Divisions
For the second consecutive quarter, the Company reported same store sales growth
at all divisions and generated a 3.5 percent increase in weighted average same
store sales. Same store sales grew by 13.2 percent at Sizzler Australia, 0.1
percent for Sizzler USA, 5.2 percent for KFC, and 0.3 percent for Pat & Oscar's,
compared to the fourth quarter last year.
"We've continued the sales trends that began in the second quarter by paying
close attention to what our customers want and by designing promotions that
deliver on quality, value and taste," said Charles Boppell, President and Chief
Executive Officer of Worldwide Restaurants Concepts. "Sizzler Australia
continues to successfully run high value promotions featuring the salad bar with
protein add-ons, while KFC successfully boosted its check average through
multi-person dining packages, or `feasts'. Although smaller, Sizzler USA's
increase of 0.1 percent reflects the progress of our strategy of promoting high
value entrees in the $7.99 to $9.99 price range. We're generating excitement
about the brand that translated into a 1.8 percent increase in customer counts
in the fourth quarter," concluded Mr. Boppell.
Pat & Oscar's same store sales comparison for the fourth quarter was adversely
affected by the advertising and media coverage of the ten year anniversary
campaign and a 12,000 person catering order, both of which occurred in the
fourth quarter of fiscal 2001, and by some cannibalization in the San Diego
market. Excluding the cannibalization at one location, same store sales
increased more than 3 percent for the quarter.
Pat & Oscar's Expansion
During the fourth quarter, the Company announced the opening of the fifteenth
Pat & Oscar's restaurant, bringing the total number of fiscal 2002 restaurant
openings to four. "When we began the fiscal year, we established the goal of
opening four units in fiscal 2002. We've achieved that goal and now have set the
more ambitious target for fiscal 2003 of opening five to six new restaurants. We
believe that increasing our restaurant count by 30 percent to 40 percent per
year is a sustainable growth rate. With the San Diego market well served, we're
building a pipeline of future properties that spans a wide range of communities
in Southern California," commented Mr. Boppell.
Release Of Net Operating Losses
As of April 30, 2002, the Company had a deferred tax asset of $64 million,
primarily related to net operating losses, which is offset by a $56 million
valuation allowance. Under Generally Accepted Accounting Principles (GAAP), a
valuation allowance is reversed when it becomes "more likely than not" that the
Company will generate future taxable income. Based on the Company's past
performance and its projections of future taxable income, the Company released
$1.3 million of the valuation allowance in the fourth quarter. The Company will
continue to evaluate the appropriateness of the deferred tax assets on a
quarterly basis.
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Worldwide Restaurant Concepts, Inc.
Page 3 of 7
Outlook For Fiscal 2003
"In fiscal 2002, we focused our divisions on three key strategies that we'll
take to the next level in fiscal 2003. These strategies are first, the ongoing
development of the Sizzler brand domestically and internationally through
investment in our menu and our facilities. Second, we'll expand Pat & Oscar's
into new markets, and third, we'll strengthen our KFCs by remodeling existing
units and adding new units. We began the process of implementing these
strategies in fiscal 2002 and generated a $0.06 increase in EPS for the year.
I'm optimistic that as we continue to follow our strategic plan, our
shareholders will be rewarded with additional growth in earnings," 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.companyboardroom.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, also at www.companyboardroom.com, 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 336 Sizzler(R)restaurants
worldwide, 107 KFC(R)restaurants primarily located in Queensland, Australia, and
15 Pat & Oscar's(SM) 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) continuation of same store sales growth at all divisions; (iii)
the opening of five to six additional Pat & Oscar's restaurants through the end
of the next fiscal year; (iv) the Company's review of tax loss carry-forwards;
and (v) growth in earnings per share in fiscal 2003 and beyond.
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 continuing successful
marketing and product initiatives resulting in positive same store sales; (c)
the availability of capital to upgrade the facilities at its domestic and
international Sizzler locations and its Australian KFCs; (d) Pat & Oscar's
ability to acquire a sufficient number of suitable sites to open five to six new
restaurants; (e) the Company's ability to generate sufficient future domestic
taxable income required for utilization of net operating loss carry-forwards;
(f) economic conditions, both generally and as they affect the restaurant
industry in particular; and (g) 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
Consolidated Statements of Operations
(In thousands, except per share data)
For the Twelve Weeks Ended April 30, 2002 2001
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Revenues
Restaurant sales $ 61,565 $ 56,962
Franchise revenues 2,014 2,161
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Total revenues 63,579 59,123
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Costs and Expenses
Cost of sales 21,318 19,593
Labor and related costs 17,184 16,152
Other operating expenses (asset write downs of $1,287 14,794 13,009
for 2002, $453 for 2001)
Depreciation and amortization 2,109 2,201
General and administrative expenses 6,308 5,310
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Total operating costs and expenses 61,713 56,265
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Interest expense 817 1,047
Investment income, net (181) (233)
Other income (90) -
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Total costs and expenses 62,259 57,079
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Income before income taxes 1,320 2,044
Provision (benefit) for income taxes (768) 1,120
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Net income $ 2,088 $ 924
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Basic and diluted earnings per share $ 0.08 $ 0.03
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Worldwide Restaurant Concepts, Inc.
Page 5 of 7
Worldwide Restaurant Concepts, Inc. and Subsidiaries
Consolidated Statements of Operations
(In thousands, except per share data)
For the Years Ended April 30, 2002 2001
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Revenues
Restaurant sales 258,770 236,665
Franchise revenues 8,417 8,676
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Total revenues 267,187 245,341
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Costs and Expenses
Cost of sales 88,960 83,322
Labor and related costs 73,476 67,107
Other operating expenses (asset write downs of $1,287 63,368 56,301
for 2002, $453 for 2001)
Depreciation and amortization 9,377 9,246
General and administrative expenses 24,583 22,293
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Total operating costs and expenses 259,764 238,269
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Interest expense 3,616 3,844
Investment income, net (820) (1,560)
Other income (502) (347)
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Total costs and expenses 262,058 240,206
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Income before income taxes 5,129 5,135
Provision for income taxes 649 2,412
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Net income $ 4,480 $ 2,723
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Basic and diluted earnings per share $ 0.16 $ 0.10
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Worldwide Restaurant Concepts, Inc.
Page 6 of 7
WORLDWIDE RESTAURANT CONCEPTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
April 30, April 30,
ASSETS 2002 2001
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Current Assets:
Cash and cash equivalents $ 23,388 $ 9,997
Restricted cash 4,651 7,852
Receivables, net of reserves of $814 at
April 30, 2002 and $965 at April 30, 2001 2,301 2,464
Inventories 4,367 4,211
Current tax asset 2,191 3,324
Prepaid expenses and other current assets 1,402 2,554
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Total current assets 38,300 30,402
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Property and equipment, at cost
Land 5,701 5,663
Buildings and leasehold improvements 78,371 71,488
Equipment 60,441 65,477
Capital leases 2,616 2,616
Construction in progress 1,215 1,873
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148,344 147,117
Less - Accumulated depreciation and amortization (87,010) (87,106)
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Total property and equipment, net 61,334 60,011
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Property held for sale, net 2,632 3,996
Long-term notes receivable, net of reserves of $3
at April 30, 2002 and $17 at April 30, 2001 774 994
Deferred income taxes 5,683 2,425
Goodwill, net of accumulated amortization of
$659 at April 30, 2002 and $659 at April 30, 2001 20,940 19,557
Intangible assets, net of accumulated amortization of
$1,038 at April 30, 2002 and $893 at April 30, 2001 2,031 2,208
Other assets 1,813 2,969
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Total assets $ 133,507 $ 122,562
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Worldwide Restaurant Concepts, Inc.
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WORLDWIDE RESTAURANT CONCEPTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
April 30, April 30,
LIABILITIES AND STOCKHOLDERS' INVESTMENT 2002 2001
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Current Liabilities:
Current portion of long-term debt $ 5,971 $ 5,597
Accounts payable 11,304 9,078
Other current liabilities 14,531 9,626
Income taxes payable 2,669 1,870
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Total current liabilities 34,475 26,171
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Long-term debt, net of current portion 23,369 24,085
Deferred gains and revenues 8,737 8,307
Pension liability 11,725 9,482
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Total liabilities 78,306 68,045
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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;
outstanding 27,205,491 shares at April 30, 2002
and 27,744,799 shares at April 30, 2001 292 291
Additional paid-in capital 279,904 279,846
Accumulated deficit (212,566) (217,046)
Treasury stock, 2,000,000 shares at April 20, 2002
and 1,363,800 shares at April 30, 2001, at cost (4,135) (3,189)
Accumulated other comprehensive loss (8,294) (5,385)
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Total stockholders' investment 55,201 54,517
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Total liabilities and stockholders' investment $ 33,507 $ 122,562
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