EXHIBIT 99.7
[LETTERHEAD OF WORLDWIDE RESTAURANT CONCEPTS, INC.]
FOR IMMEDIATE RELEASE
March 18, 2003
WORLDWIDE RESTAURANT CONCEPTS, INC. ANNOUNCES THIRD
QUARTER FISCAL 2003 RESULTS
HIGHLIGHTS:
. Total revenues increased by 9.1 percent to $89.9 million
. Revenue growth resulted from continued expansion of Pat & Oscar's, same
store sales growth of 8.0 percent at KFC and 3.4 percent at Sizzler
Australia, and a 10.0 percent increase in the Australian dollar exchange
rate
. Earnings per share increased by 200 percent to $0.03 per diluted share on
revenue growth and favorable exchange rates
SHERMAN OAKS, Calif.--March 18, 2003--Worldwide Restaurant Concepts, Inc. (NYSE:
SZ) today reported financial results for the third quarter of fiscal 2003, ended
February 2, 2003.
For the third quarter, the Company reported revenues of $89.9 million, an
increase of 9.1 percent over the $82.4 million in the comparable period in
fiscal 2002. Net income for the quarter was $0.8 million, or $0.03 per diluted
share, compared to net income of $0.4 million, or $0.01 per diluted share in the
same period a year ago. The Company's increase in net income is primarily
attributable to continued same store sales growth from KFC and Sizzler
operations in Australia and strengthening of the Australian dollar exchange
rate. These factors were partially offset by higher workers compensation costs,
increased marketing spending and pre-opening costs at Pat & Oscar's for four new
units, two of which opened during the quarter, and asset write-downs of $0.3
million at Sizzler USA.
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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.
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Total revenues for the forty weeks ended February 2, 2003 were $222.0 million,
an increase of $18.4 million, or 9.0 percent, over the comparable period last
year. Year-to-date net income increased by $3.1 million, to $5.5 million, or
$0.20 per diluted share, compared to $0.09 in the prior year.
Continued Revenue Growth
For the third quarter, the Company reported a revenue increase of $7.5 million,
or 9.1 percent. On a weighted average basis, same store sales for all
Company-owned units, including both domestic and international units, increased
by 1.5 percent for the quarter. The Company's international operations
contributed to this result by posting same store sales growth of 8.0 percent at
KFC and 3.4 percent for Sizzler Australia. The 10.0 percent increase in the
Australian dollar exchange rate contributed $4.2 million to reported revenue and
$0.2 million to net income in the third quarter. The Company also recorded a
$0.7 million foreign exchange gain during the quarter in connection with its
decision to call a note from its Australian subsidiary.
At Pat & Oscar's, revenue for the quarter increased by $1.7 million compared to
the prior year. During the quarter, two new locations opened, including the
first location in Los Angeles County, a key market for the brand's near-term
expansion. "Pat & Oscar's is a new name in the Los Angeles market, and we're
pleased to be seeing week-on-week sales growth as people learn about the brand.
We've opened two additional locations in the Los Angeles area since the end of
the quarter, and with two more restaurants scheduled to open in the next several
weeks, we'll meet our goal of 30 to 40 percent annual unit growth for fiscal
2003," said Charles Boppell, President and CEO of Worldwide Restaurant Concepts.
Pat & Oscar's expects to continue to expand at this rate in fiscal 2004. Revenue
from new units was partially offset by a decline of 4.5 percent in same store
sales, attributable in part to the tough domestic economic environment and the
deployment of troops from San Diego County.
The domestic economic environment and uncertainty over war contributed to
Sizzler USA's 3.5 percent decline in same store sales for the quarter. Sizzler
USA continues to execute its strategy of offering quality food at value pricing
and has completed 18 of the 20 exterior remodels scheduled for this fiscal year.
"We're pleased with the results we've seen from these relatively inexpensive
exterior remodels and anticipate continuing the program in fiscal 2004," said
Mr. Boppell. The average cost per exterior remodel is less than $50,000.
Investor Conference Call
Worldwide Restaurant Concepts will be holding an investor conference call today
at 11:00 a.m. EST to discuss the Company's financial and operational results.
Investors will have the opportunity to listen to the conference call over the
Internet at www.wrconcepts.com or www.companyboardroom.com. To listen to the
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live call, please go to either 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.wrconcepts.com and
www.companyboardroom.com, will be available shortly after the call.
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Worldwide Restaurant Concepts, Inc.
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About Worldwide Restaurant Concepts
Worldwide Restaurant Concepts, Inc., formerly known as Sizzler International,
Inc., operates, franchises or joint ventures 319 Sizzler(R) restaurants
worldwide, 111 KFC(R) restaurants primarily located in Queensland, Australia,
and 19 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) completion of two to three additional exterior remodels at Sizzler USA by
the end of fiscal 2003 and continuation of the program into fiscal 2004; and
(iii) the opening of two additional Pat & Oscar's restaurants in fiscal 2003 and
30 to 40 percent unit growth in fiscal 2004.
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 ability to design
marketing and product initiatives resulting in same store sales growth; (c) the
availability of capital to upgrade the facilities at its domestic Sizzler(R)
locations and build new Pat & Oscar's restaurants; (d) Pat & Oscar's ability to
acquire a sufficient number of suitable sites to open seven to nine new
restaurants by year end fiscal 2004; (e) economic conditions, both generally and
as they affect the restaurant industry in particular; 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.
In the following financial tables, certain reclassifications have been made to
the prior year amounts to conform to current year presentation.
[tables to follow ]
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Worldwide Restaurant Concepts, Inc.
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WORLDWIDE RESTAURANT CONCEPTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THE SIXTEEN WEEKS ENDED FEB. 2, 2003 AND FEB. 3, 2002
(Unaudited)
(In thousands, except per share data)
February 2, February 3,
2003 2002
- ------------------------------------------------------------ ------------ ------------
Revenues
Restaurant sales $ 87,526 $ 79,907
Franchise revenues 2,382 2,486
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Total revenues 89,908 82,393
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Costs and Expenses
Cost of sales 29,804 27,429
Labor and related expenses 24,487 22,706
Other operating expenses (asset write downs of $255 21,954 19,966
in 2003 and $0 in 2002)
Depreciation and amortization 3,180 2,910
General and administrative expenses 7,406 7,498
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Total operating costs 86,831 80,509
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Operating income 3,077 1,884
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Interest expense 963 1,128
Investment income 143 227
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Income before provision for income taxes 2,257 983
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Provision for income taxes 1,421 610
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Net income $ 836 $ 373
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Basic and diluted earnings per share $ 0.03 $ 0.01
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Worldwide Restaurant Concepts, Inc.
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WORLDWIDE RESTAURANT CONCEPTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THE FORTY WEEKS ENDED FEB. 2, 2003 AND FEB. 3, 2002
(Unaudited)
(In thousands, except per share data)
February 2, February 3,
2003 2002
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Revenues
Restaurant sales $ 215,703 $ 197,205
Franchise revenues 6,331 6,403
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Total revenues 222,034 203,608
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Costs and Expenses
Cost of sales 73,152 67,271
Labor and related expenses 60,244 56,292
Other operating expenses (asset write downs of $355 53,219 48,945
in 2003 and $0 in 2002)
Depreciation and amortization 7,509 7,268
General and administrative expenses 18,240 18,275
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Total operating costs 212,364 198,051
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Operating income 9,670 5,557
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Interest expense 2,584 2,799
Investment income 612 639
Other income - 412
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Income before provision for income taxes 7,698 3,809
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Provision for income taxes 2,181 1,417
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Net income $ 5,517 $ 2,392
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Basic and diluted earnings per share $ 0.20 $ 0.09
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Worldwide Restaurant Concepts, Inc.
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WORLDWIDE RESTAURANT CONCEPTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands)
February 2, April 30,
ASSETS 2003 2002
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Current Assets:
Cash and cash equivalents $ 19,942 $ 25,943
Restricted cash 2,969 2,096
Receivables, net of an allowance of $793 at
February 2, 2003 and $814 at April 30, 2002 2,433 2,101
Inventories 4,445 4,367
Deferred income tax asset 2,653 2,191
Prepaid expenses and other current assets 2,450 1,686
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Total current assets 34,892 38,384
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Property and equipment, net 65,789 61,334
Property held for sale, net 2,357 2,632
Long-term notes receivable (including $200 of related party
receivables at February 2, 2003 and April 30, 2002), net of
an allowance of $3 at February 2, 2003 and April 30, 2002 846 974
Deferred income tax asset 7,234 7,198
Goodwill, net 23,636 20,940
Intangible assets, net of accumulated amortization of
$741 at February 2, 2003 and $602 at April 30, 2002 2,149 2,031
Other assets 1,162 1,866
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Total assets $ 138,065 $ 135,359
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Worldwide Restaurant Concepts, Inc.
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WORLDWIDE RESTAURANT CONCEPTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands, except share data)
February 2, April 30,
LIABILITIES AND STOCKHOLDERS' EQUITY 2003 2002
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Current Liabilities:
Current portion of long-term debt $ 6,415 $ 5,971
Accounts payable 8,791 11,304
Other current liabilities 20,754 16,383
Income taxes payable 1,892 2,669
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Total current liabilities 37,852 36,327
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Long-term debt, net of current portion 18,757 23,369
Deferred gains and revenues 9,416 8,737
Pension liability 11,346 11,725
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Total liabilities 77,371 80,158
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Stockholders' Equity:
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 29,232,469 and 27,232,469 shares
and 29,205,491 and 27,205,491 shares at February 2, 2003
and April 30, 2002, respectively 292 292
Additional paid-in capital 279,986 279,904
Accumulated deficit (207,049) (212,566)
Treasury stock, 2,000,000 shares at February 2, 2003
and 2,000,000 shares at April 30, 2002, at cost (4,135) (4,135)
Accumulated other comprehensive loss (8,400) (8,294)
- ------------------------------------------------------------ ------------ ------------
Total stockholders' equity 60,694 55,201
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Total liabilities and stockholders' equity $ 138,065 $ 135,359
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