ICH Corporation Announces 1999 Third Quarter EPS Up 113%
Board Authorizes Share Buyback
Quarter Highlights:
SAN DIEGO, Calif.--(BUSINESS WIRE)--Nov. 3, 1999-- - Fully-diluted EPS from continuing operations up 113% to $.34 from
$.16 in 1998
- Net income from continuing operations up 154%
- Revenues up 85%
6 new Arby's built this year, 8 to 10 additional new units expected to be built by year end
I.C.H. Corporation (ICH or the Company) (AMEX: IH - news) today announced its results of operations for the third quarter ended September 30, 1999. ICH is a Delaware holding corporation which, through its principal subsidiaries, operated at September 30, 1999, 185 ''Arby's'' restaurants located primarily in Texas, Michigan, Pennsylvania, New Jersey, Florida and California, and 73 family dining restaurants under the ''Lyon's'' name in California and Oregon.
Results for the Three Months
Income from continuing operations increased 154% to $1.2 million, or $.43 per common share ($.34 per common share fully diluted) from $476,000, or $.18 per common share ($.16 per common share fully diluted), in the prior year comparable period. Net income including discontinued operations increased by 40% to $1.2 million, or $.43 per common share ($.34 per common share fully diluted), from $864,000, or $.32 per common share ($.30 per common share fully diluted) in the prior year comparable period. The prior year comparable period included a gain from the sale of discontinued operations of $388,000 related to the sale of a real estate development formerly owned by the Company.
The Company's revenues for the period were $61.3 million, an increase of $28.1 million, or 85%, over the prior year comparable period. Sybra's sales for the period were $36.2 million, an increase of $3.0 million, or 9%, over the prior year comparable period, due to a same store sales increase of 2% for the period, and sales from new store openings and store acquisitions. Sales from the Company's Lyon's restaurants for the period were $24.9 million.
The Company's operating margin for the period increased $3.1 million, or 71%, to $7.5 million from the prior year comparable period. Operating margin as a percent of restaurant sales was 12.2% versus 13.2% in the prior year comparable period. The modestly lower margin in the current period was due to the inclusion of operating results from the lower margin Lyon's Restaurant group. Sybra's operating margin for the period was $5.4 million or 14.8%, which represents an increase of $1.0 million, or 22.7%, from the prior year comparable period operating margin of $4.4 million, or 13.2%, due to the previously highlighted sales increases and improved operating efficiencies. The operating margin for the Company's Lyon's restaurants was $2.1 million or 8.6%.
Results for the Nine Months
Income from continuing operations increased 158% to $3.4 million, or $1.20 per common share ($.96 per common share fully diluted), from $1.3 million, or $.49 per common share ($.46 per common share fully diluted), in the prior year comparable period. Net income including discontinued operations increased by 99% to $3.4 million, or $1.20 per common share ($.96 per common share fully diluted), from $1.7 million, or $.64 per common share ($.59 per common share fully diluted), in the prior year comparable period. The prior year comparable period included a gain from the sale of discontinued operations of $388,000 related to the sale of a real estate development formerly owned by the Company.
The Company's revenues for the period were $182.2 million, an increase of $89.1 million, or 96%, over the prior year comparable period. Sybra's sales for the period were $106.5 million, an increase of $14.1 million, or 15%, over the prior year comparable period. The sales increase is a result of new store openings, acquisitions and a same store sales increase of 3.5% for the nine-month period. Sales from the Company's Lyon's restaurants for the period were $75.4 million.
The Company's operating margin for the period was $22.4 million, or 12.3% of sales, an increase of $10.2 million, or 84%, over the prior year comparable period. Sybra's operating margin for the period was $16.0 million, or 15.1%, of sales, an increase of $3.8 million over the prior year comparable period. Operating margin for the Company's Lyon's restaurants for the period was $6.4 million or 8.5% of sales.
Separately, the Company's board of directors has authorized, subject to capital availability, the repurchase, from time to time, of up to 250,000 shares of the Company's outstanding common stock or stock equivalents, through open market purchases and/or privately-negotiated transactions. The Company also announced the sale of its nine under-performing Arby's units located in Sacramento, California and the acquisition of two operating Arby's restaurants located within the Company's existing markets in Texas and Michigan.
Commenting on the Company's results, James R. Arabia, Chairman and Chief Executive Officer of ICH stated, ''The results for the quarter reflect that the Company's overall restaurant operations continue to perform well and that the Company is capitalizing on the increased operating efficiencies that it has achieved. Given the Company's current level of profitability and its anticipated earnings growth, we believe that the Company's current share price is dramatically undervalued relative to both the restaurant industry and the market as a whole. As a result, subject to capital availability, the Company believes that repurchasing its common stock is an excellent investment for our shareholders and highlights our confidence in ICH.'' |
