Solid earnings folks!
Wednesday April 26, 4:41 pm Eastern Time
Company Press Release
Applebee's International Reports 25 Percent Increase in First Quarter Earnings Per Share of 55 Cents
First Quarter Comparable Sales Increase 5.0 Percent for Company Restaurants; System-Wide Up 4.1 Percent
OVERLAND PARK, Kan.--(BUSINESS WIRE)--April 26, 2000-- Applebee's International, Inc. (Nasdaq:APPB - news) today reported net earnings of $14.8 million, or 55 cents per share on both a basic and diluted basis, for the first quarter ended March 26, 2000. This represents a 25 percent increase in earnings per share as compared with 44 cents per share on both a basic and diluted basis for the first quarter of 1999 (excluding a $5.7 million or 19 cent per share loss on the disposition of restaurants in 1999).
Comparable sales for company restaurants increased 5.0 percent for the first quarter. System-wide comparable sales increased 4.1 percent for the first quarter, while comparable sales for franchise restaurants increased 3.8 percent. (In calculating comparable restaurant sales, restaurants open for at least 18 months are compared from period to period.)
Commenting on the quarter, Lloyd L. Hill, chief executive officer, said, ``We had outstanding results in the first quarter on all fronts. Our same store sales trends remained strong and margins were in line with our goals. EPS growth of 25 percent and annualized return on equity of 22 percent both exceeded our strategic targets by significant amounts.
Hill added, ``In January we introduced our new advertising campaign, ''As American as Applebee's,`` and customer response has been favorable. As we approach 1,200 restaurants system-wide, we are well poised to further strengthen our leadership position in the casual dining segment and continue to build the Applebee's brand as an American icon.''
Other highlights for the first quarter ended March 26, 2000 included:
System-wide sales for the Applebee's concept were a record
$637.2 million for the first quarter ended March 26, 2000, a
13 percent increase over the prior year. (System-wide sales
include franchisee sales as reported to Applebee's
International, as well as sales from company restaurants.)
Operating revenues for the Applebee's concept (comprised of
company restaurant sales and franchise income) increased 9.5
percent for the first quarter. The first quarter of 1999
included $28.4 million of operating revenues related to the
Rio Bravo Cantina and specialty restaurants that were sold
in April 1999.
Applebee's ended the quarter with 1,185 restaurants
system-wide (266 company and 919 franchise restaurants).
During the first quarter of 2000, there were 19 new
Applebee's restaurants opened system-wide, including 5
company and 14 franchised restaurants. New openings in 2000
are expected to be at least 115 restaurants, including 25 to
27 company restaurants and 90 to 100 franchise restaurants.
As previously announced, in December 1999 the company's
board of directors authorized an additional program to
repurchase up to $32.5 million of the company's common stock
through the year 2000, subject to market conditions and
pursuant to applicable restrictions under the company's debt
agreements. During the first quarter, 185,000 shares of the
company's common stock were purchased in open market
transactions at an aggregate cost of $5.0 million.
Applebee's International, Inc., headquartered in Overland Park, Kan., currently develops, franchises and operates restaurants under the Applebee's Neighborhood Grill and Bar brand, the largest casual dining concept in the world. There are currently 1,195 Applebee's restaurants operating system-wide in 49 states and eight international countries. Additional information on Applebee's International can be found at the company's website (www.applebees.com).
The statements contained in this release regarding earnings per share growth and new restaurant development in 2000 are forward looking and based on current expectations. There are several risks and uncertainties that could cause actual results to differ materially from those described. For a discussion of the principal factors that could cause actual results to be materially different, the reader is referred to the company's current report on Form 8-K filed with the Securities and Exchange Commission on February 9, 2000. The company does not intend to update these forward-looking statements.
APPLEBEE'S INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(in thousands, except per share amounts)
13 Weeks Ended
March 26, March 28,
2000 1999
--------- ---------
Revenues:
Company restaurant sales................ $ 145,451 $ 161,760
Franchise income........................ 19,799 17,540
---------- ---------
Total operating revenues............... 165,250 179,300
---------- ---------
Cost of Company restaurant sales:
Food and beverage....................... 40,058 44,765
Labor................................... 46,168 51,786
Direct and occupancy.................... 35,660 41,004
Pre-opening expense..................... 296 378
---------- ---------
Total cost of Company restaurant sales. 122,182 137,933
---------- ---------
General and administrative expenses...... 16,007 16,133
Amortization of intangible assets........ 1,451 1,533
Loss on disposition of
restaurants and equipment............... 353 9,288
---------- ---------
Operating earnings....................... 25,257 14,413
---------- ---------
Other income (expense):
Investment income....................... 349 180
Interest expense........................ (2,364) (3,055)
Other income............................ 118 168
---------- ---------
Total other expense.................... (1,897) (2,707)
---------- ---------
Earnings before income taxes............. 23,360 11,706
Income taxes............................. 8,597 4,331
---------- ---------
Net earnings............................. $ 14,763 $ 7,375
========== =========
Basic net earnings per common share...... $ 0.55 $ 0.25
========== =========
Diluted net earnings per common share.... $ 0.55 $ 0.25
========== =========
Basic weighted average
shares outstanding...................... 26,670 29,526
========== =========
Diluted weighted average
shares outstanding...................... 26,788 29,648
========== =========
The following table sets forth, for the periods indicated,
information derived from the Company's consolidated statements of
earnings expressed as a percentage of total operating revenues, except
where otherwise noted. Percentages may not add due to rounding.
13 Weeks Ended
March 26, March 28,
2000 1999
--------- ---------
Revenues:
Company restaurant sales................ 88.0% 90.2%
Franchise income........................ 12.0 9.8
------ ------
Total operating revenues............... 100.0% 100.0%
======= ======
Cost of sales (as a percentage of
Company restaurant sales):
Food and beverage....................... 27.5% 27.7%
Labor................................... 31.7 32.0
Direct and occupancy.................... 24.5 25.3
Pre-opening expense..................... 0.2 0.2
------ ------
Total cost of sales.................... 84.0% 85.3%
======= ======
General and administrative expenses...... 9.7% 9.0%
Amortization of intangible assets........ 0.9 0.9
Loss on disposition of
restaurants and equipment............... 0.2 5.2
------ ------
Operating earnings....................... 15.3 8.0
------ ------
Other income (expense):
Investment income....................... 0.2 0.1
Interest expense........................ (1.4) (1.7)
Other income............................ 0.1 0.1
------ ------
Total other expense.................... (1.1) (1.5)
------ ------
Earnings before income taxes............. 14.1 6.5
Income taxes............................. 5.2 2.4
------ ------
Net earnings............................. 8.9% 4.1%
======= ======
Contact:
Applebee's International, Inc., Overland Park, Kan.
George Shadid, Chief Financial Officer
913/967-4035 |
