Company Press Release
ICH Corporation Announces 1999 Results of Operations
SAN DIEGO--(BUSINESS WIRE)--Feb. 24, 2000--
1999 Highlights:
-- Income from continuing operations up 74.7%
-- Diluted EPS from continuing operations up 45.5% To $1.47
-- Revenues up 74.9%
-- 15 new Arby's built during 1999, 20 additional new units expected
during 2000
I.C.H. Corporation (ICH or the Company) (AMEX:IH - news) today announced its results of operations for 1999. ICH is a Delaware holding corporation which, through its principal operating subsidiaries, operated 188 ``Arby's' restaurants located primarily in Texas, Michigan, Pennsylvania, New Jersey and Florida, as well as 72 family dining restaurants under the ``Lyon's' name located in California and Oregon, as of December 31, 1999.
Results for the Twelve Months ended December 31, 1999 Net income from continuing operations increased 74.7%, from $2.9 million, or $1.11 per common share ($1.01 per diluted common share) in the prior year comparable period to $5.1 million, or $1.82 per common share ($1.47 per diluted common share) in the twelve months ended December 31, 1999. Net income including discontinued operations increased by 54.2%, from $3.3 million or $1.26 per common share ($1.14 per diluted common share) in the prior year comparable period to $5.1 million or $1.82 per common share ($1.47 per diluted common share) in the twelve months ended December 31, 1999. 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 twelve-month period ended December 31, 1999 were $244.9 million, an increase of $104.8 million or 74.9% over the prior year comparable period. Sybra's sales for the twelve-month period ended December 31, 1999 were $144.5 million, an increase of $13.2 million or 10.1% over the prior year comparable period. The sales increase is a result of new store openings, acquisitions and a same store sales increase of 2.4%, offset by the sale of nine of the Company's Arby's units early in the fourth quarter of 1999. Sales from the Company's Lyon's restaurants for the twelve-month period ended December 31, 1999 were $99.9 million.
The Company's operating margin for the period was $31.8 million, or 13.0% of sales, an increase of $12.3 million or 62.7% over the prior year comparable period. Sybra's operating margin for the period was $22.9 million, or 15.9% of sales, an increase of $4.6 million over the prior year comparable period. Operating margin from the Company's Lyon's restaurants for the period was $8.9 million or 8.9% of sales.
Results for the Three Months
Net income from continuing operations increased 7.7%, from $1.6 million, or $.61 per common share ($.56 per diluted common share) in the prior year comparable period to $1.7 million, or $.62 per common share ($.51 per diluted common share) in the quarter ended December 31, 1999.
The Company's revenues for the three-month period ended December 31, 1999 were $62.7 million, an increase of $15.8 million or 33.6% over the prior year comparable period. Sybra's sales for the three month period ended December 31, 1999 were $38.1 million, a decrease of $846,000 or 2.2% from the prior year comparable period, primarily as a result of the fact that the 1998 comparable period consists of 14 weeks while the fourth quarter of 1999 included only 13 weeks, as well as the sale of nine of the Company's Arby's units located in California early in the fourth quarter of 1999, offset by sales from new store openings and store acquisitions. Sales from the Company's Lyon's restaurants for the three-month period ended December 31, 1999 were $24.5 million.
The Company's operating margin for the period increased $2.0 million, or 27.9%, to $9.4 million from the prior year comparable period. Operating margin as a percent of restaurant sales decreased by 1.0% to 15.0% due to the inclusion of the casual dining, lower margin Lyon's Restaurant concept. Sybra's operating margin for the period was 18.0%. That operating margin represented an increase of $733,000, or 11.9%, from the prior year comparable period operating margin of $6.1 million due to continued improved restaurant operating efficiencies. Operating margin from the Company's Lyon's restaurants was $2.5 million or 10.3%.
The Company also announced that it has entered into a $12.5 million credit facility with Newcourt Commercial Financial Corporation to finance the construction of new Arby's units.
Commenting on the Company's results, James R. Arabia, Chairman and Chief Executive Officer of ICH stated ``We are pleased with the company's operating results during 1999, which reflect both the continuing strong performance and growth of our Arbys' restaurants and the first full year of our ownership of the well-established Lyon's restaurant chain. Those results are particularly strong given the factors affecting the comparability of the fourth quarter of 1999 with the fourth quarter of 1998, lower than expected sales at our Lyon's restaurants and the fact that the majority of the new Arby's units that we opened during 1999 were opened in December. The performance of our new Arby's restaurants is generally exceeding expectations and we look forward to continuing to develop new Arby's restaurants within the company's exclusive development territories throughout 2000 and beyond. At the same time, we need to improve sales and sales trends at our Lyon's restaurants and we therefore continue to develop and refine our operational and marketing strategies for the chain, including a focus on the food quality, value and service that customers have come to associate with the Lyon's brand.'
ICH is a Delaware holding corporation which, through its principal operating subsidiaries, currently operates 191 Arby's restaurants located primarily in Texas, Michigan, Pennsylvania, Florida and New Jersey and 72 full-service family dining restaurants doing business under the ``Lyon's' name and located in California and Oregon. |
