Company Press Release
ICH Corporation Announces First Quarter 2000 Results
SAN DIEGO, Calif.--(BUSINESS WIRE)--May 5, 2000--
First Quarter Summary: ---------------------- - Diluted EPS $.10 vs. $.22 - Net income $317,000 vs. $707,000 - Sybra Operating Margin up $834,000 to $5.7 million - Revenues up 1.7% - 5 new Arby's opened during 2000 (to date)
I.C.H. Corporation (ICH or the Company) (AMEX:IH - news) today announced its results of operations for the first quarter of 2000. ICH is a Delaware holding corporation which, through its principal operating subsidiaries, currently operates 193 ``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.
Results for the Three Months ended March 31, 2000
Net income decreased 55.2% from $707,000, or $.27 per common share
($.22 per diluted common share) in the prior year comparable period to $317,000, or $.11 per common share ($.10 per diluted common share) for the three months ended March 31, 2000.
The Company's revenues for the three-month period ended March 31, 2000 were $60.8 million, an increase of $1.0 million or 1.7% over the prior year comparable period. Sybra's sales for the period were $37.9 million, an increase of $3.4 million or 9.8% over the prior year comparable period as a result of sales from new store openings and acquisitions. Sybra's same store sales were flat for the quarter. Sales from the Company's Lyon's restaurants for the period were $22.8 million, a decrease of $2.4 million or 9.6% below the prior year comparable period. This sales decrease is due to the closing of one under-performing Lyon's unit in the fourth quarter of 1999 and a same store sales decrease of 8.6%.
The Company's operating margin for the period was $6.6 million, or 10.9% of sales, a decrease of $146,000 or 2.2% from the prior year comparable period. Sybra's operating margin for the period was $5.7 million, or 15.1% of sales, an increase of $834,000 over the prior year comparable period. Operating margin from the Company's Lyon's restaurants for the period was $908,000 or 4.0% of sales, a decrease of $980,000 from the prior year comparable period.
The Company's EBITDA (earnings before interest, income taxes, depreciation and amortization) increased slightly to $4.6 million from $4.5 million or 1.0% over the prior year comparable period. Sybra's EBITDA for the period was $4.3 million, or 11.3% of sales, an increase of $836,000 over the prior year comparable period. EBITDA from the Company's Lyon's restaurants for the period was $303,000 or 1.3% of sales, a decrease of $929,000 from the prior year comparable period.
The Company also announced that Sybra has entered into a $10.0 million credit facility with FINOVA Capital Corporation. That credit facility consists of a $3.0 million term loan which will be used to refinance existing Sybra indebtedness, and a $7.0 million revolving credit facility which may be used for the development and acquisition of Arby's restaurants and for the refinancing of other existing Sybra indebtedness.
Commenting on the Company's results, James R. Arabia, Chairman and Chief Executive Officer of ICH stated, ``Our mixed results for the quarter highlight some challenges that the company is currently facing, particularly with respect to the operating results of our Lyon's restaurants. We are quite pleased by Sybra's increase in revenues, operating margins and EBITDA. Although we are not satisfied with Sybra's flat same store sales for the quarter, we believe they are attributable primarily to softness in sales at a small group of mall units in the eastern region along with the timing of this year's Easter season. Lyon's profitability during the quarter was adversely affected by an 8.6% decline in same store sales and by increased marketing expenditures that produced little, if any, positive impact for revenues at Lyon's. We remain committed to following through with our promise to improve the customer's experience at our Lyon's restaurants and we believe that some of the operating initiatives intended to achieve that end have already helped to stabilize the trend in sales. Additionally, our recently completed move and re-imaging of an existing Lyon's restaurant has shown very promising, albeit early, results. We intend to meet these challenges head on to produce the best possible results for the company and for our shareholders.'' |
