Hi, FRED....
Well, I finally bit!....bought a small chunk at 4...
Here's the last quarter announcement...you can extrapolate the next earnings report from this... Good luck to all!!!....FRED
Friday March 21 6:30 AM EDT
Koo Koo Roo Announces Record Revenues for 1996 Fourth Quarter and
Full Year
LOS ANGELES, March 21 /PRNewswire/ -- Koo Koo Roo Inc announced today that it has achieved record revenues for
the fourth quarter and full-year ended December 31, 1996. Revenues for the fourth quarter increased 82% to $12.3 million in
1996, from $6.8 million in 1995. For the full year, revenues increased 90% to $39.8 million in 1996, from $20.9 million in
1995.
The Company reported a loss of $3.5 million for the quarter, or $0.22 per common share before preferred dividends, as
compared to a loss of $2.8 million, or $0.19 per common share for the same quarter last year on a lesser number of common
shares outstanding. The net loss for the current quarter after preferred dividends was $0.25 per common share. For the full
year, Koo Koo Roo reported a net loss of $9.3 million, or $0.62 per common share before preferred dividends, as compared
to a loss of $6.9 million, or $0.57 per common share for the prior year, also on a lesser number of common shares outstanding.
The net loss for the year after preferred dividends was $0.83 per common share.
Ken Berg, the Company's Chairman and Chief Executive Officer, commented, "1996 was an important transition year for Koo
Koo Roo. We accomplished our three primary goals: to maintain our strong top-line growth, continue to open new units and
enter new markets. During the year, we opened our first restaurants in New York, Colorado and Northern California. The loss
we reported reflects in part the expenses associated with entering these markets."
"In the fourth quarter, our same-store sales growth for all stores open at least 18 months was 3.3%, which demonstrates the
strength of our concept and our high customer acceptance rate at mature locations, many of which are operating near their
effective capacity. We also experienced a strong increase in store-level operating contribution, which continues to improve this
year," continued Mr. Berg.
Robert Kautz, president and Chief Financial Officer of Koo Koo Roo, Inc. said, "During 1996, we continued our efforts in a
number of areas which, although they are not currently generating operating income, are expected to become significant
contributors in the future. As an example, consistent with our strategic plan, we have organized our infrastructure to more
efficiently support significantly higher levels of units and revenues and to increase our rate of opening new locations. We also
have two stores under construction in our joint venture in Canada and are moving ahead with other international activities."
"Color Me Mine more than doubled its number of ceramics studios by opening nine new locations in the fourth quarter. The
associated opening expenses, together with the one-time costs of the relocation and expansion of the ceramic production
facility, the move to new corporate offices, and incremental corporate expenses contributed to the loss for the year.
"This year, we have already taken a number of steps to improve our profitability and to position the Company for faster store
openings. We have initiated programs to contain our corporate expenses; we completed a $29 million private placement of
convertible preferred stock to finance our 1997 store-opening schedule; and we announced our intention to acquire 14
Hamburger Hamlet restaurants currently operating on a positive cashflow basis," Mr. Kautz continued.
Koo Koo Roo also reported that it has sold its Koo Koo Roo and ice cream parlor located in Atlantic City, New Jersey and
opened in 1991, back to the landlord, the Taj Mahal Hotel. The locations were sold at a gain to the Taj Mahal, which required
the space for its casino expansion plans, for $1.4 million.
Koo Koo Roo operates 28 Koo Koo Roo California Kitchen restaurants, 24 of which are located in California, two in Florida,
one in Colorado, and one in New York, serving freshly prepared foods including its Original Flame Broiled Skinless
Chicken(R). The Arrosto Coffee Company, a subsidiary, operates a coffee bean micro-roastery which places over half of its
output into licensed locations in ten Koo Koo Roo restaurants. Color Me Mine, also a subsidiary, operates a 20,000 square
foot ceramics plant in California and has ten company-owned and six franchised paint-your-own ceramic studios located in
California, New Jersey and Florida.
Forward-looking statements and comments in this press release are made pursuant to the safe-harbor provisions of Section
21E of the Securities Exchange Act of 1934. Such statements relating to, among other things, the prospects for the Company to
complete the acquisition of certain assets and enhance operating results, are necessarily subject to risks and uncertainties, some
of which are significant in scope and nature. These risks are further discussed in the periodic reports and registration statements
filed by the Company from time to time with the Securities and Exchange Commission.
KOO KOO ROO, INC.
(In thousands, except share data) |
