EXHIBIT 99
Contact: Mark L. Mestayer
Chief Financial Officer
(225) 293-9440
PICCADILLY CAFETERIAS ANNOUNCES
AMENDED SENIOR CREDIT FACILITY
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DECLARES REGULAR QUARTERLY DIVIDEND
BATON ROUGE, LOUISIANA (November 18, 1999) -- Piccadilly Cafeterias, Inc.
(NYSE:PIC) today announced that it has reached an agreement with its
syndication of banks to amend certain financial covenants of the
Company's $100 million senior credit facility. The facility is to be
secured by substantially all of the Company's owned real estate.
Piccadilly also announced that its Board of Directors has declared a
quarterly cash dividend on the outstanding common stock of $0.12 per
share, payable January 4, 2000, to stockholders of record on December 3,
1999.
The Company stated that operating results through September 30, 1999
resulted in non-compliance with two financial covenants of the prior
credit facility. There had not been a payment default and the non-
compliance did not reflect an inability of the Company to pay its debts
as they became due in the ordinary course. The financial covenants have
been amended to be consistent with the Company's current business plan.
Management believes that its cash from operations, together with
remaining credit available under the amended facility, will be sufficient
to provide for the Company's operational needs through the term of the
credit facility.
Because the credit agreement amendment had not been completed when
the Company filed its Quarterly Report on Form 10-Q on November 15, 1999,
the Company was required to classify its outstanding borrowings under the
credit facility as current liabilities. The attached condensed
consolidated balance sheet shows the reclassification of these borrowings
that would have been made had the amendment been in place on November 15,
1999.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
PICCADILLY CAFETERIAS, INC.
(in thousands)
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Balances at September 30, 1999 June 30, 1999
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Current Assets $ 30,519 $ 32,247
Property, plant and equipment - net 174,260 176,250
Net goodwill and other assets 23,970 24,442
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TOTAL ASSETS $ 228,749 $ 232,939
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Current liabilities $ 49,986 $ 53,161
Long-term debt 76,825 74,226
Deferred income taxes 4,042 3,992
Accrued employee benefits, less current portion 9,583 9,465
Reserve for unit closings 11,787 12,693
Shareholders' equity 76,526 79,402
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 228,749 $ 232,939
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With the revised facility in place, the Board of Directors declared
the regular quarterly cash dividend on schedule. The Board of Directors
advised that the ability of the Company to sustain the dividend at
current levels would depend on its operating performance such that the
dividend could safely be paid out of earnings.
Piccadilly owns and operates a total of 235 cafeterias and 10 quick
service restaurants. Operating units are located primarily in the
southeastern and mid-Atlantic United States.
Forward-looking statements regarding management's present plans or
expectations for new unit openings, operating results, and its ability to
pay dividends, may differ materially from actual results. These plans
and expectations involve risks and uncertainties relative to certain
factors including return expectations, allocation of resources, changing
economic or competitive conditions, advertising effectiveness, the
ability to achieve cost reductions, and the ability to offset
inflationary pressures through increases in selling prices, among others,
any of which may result in material differences.
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