ICH Corporation Announces Second Quarter 2000 Results
SAN DIEGO--(BUSINESS WIRE)--Aug. 9, 2000--I.C.H. Corporation (AMEX:IH - news)--
Second Quarter Summary:
-- EPS excluding non-recurring charge $.18 vs $.41
-- Net income excluding non-recurring charge $566,000 vs. $1.4 million
-- Revenues up 1.7%
-- Acquisition of 8 Connecticut Arby's units
-- 8 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 second quarter of 2000. ICH is a Delaware holding corporation which, through its principal operating subsidiaries, currently operates 204 ``Arby's'' restaurants located primarily in Texas, Michigan, Pennsylvania, New Jersey, Florida and Connecticut as well as 72 family dining restaurants under the ``Lyon's'' name located in California and Oregon.
Results for the three months ended June 30, 2000
Net loss for the three months ended June 30, 2000 includes a non-recurring, pre-tax charge of $4.9 million ($2.9 million after the affect of income taxes) primarily related to required payments associated with the recent departure of the former CEO of the Company. As previously disclosed, the Company estimates that the annual pre-tax savings in general and administrative expenses resulting from this charge will be approximately $700,000. As a result of the non-recurring charge, the company experienced a net loss of $2.4 million, or $(.82) per common share, compared to net income of $1.4 million, or $.51 per common share ($.41 per diluted common share) in the prior year period. Excluding the effects of the non-recurring charge, net income decreased 60.6% to $566,000, or $.20 per common share ($.18 per diluted common share), from $1.4 million, or $.51 per common share ($.41 per diluted common share) in the prior year comparable period.
The Company's revenues for the three month period ended June 30, 2000 were $62.1 million, an increase of $1.0 million, or 1.7%, over the prior year comparable period. Sybra's sales for the period were $38.5 million, an increase of $2.8 million, or 7.9%, over the prior year comparable period. This increase is a result of sales from new store openings and acquisitions, offset by a same store sales decrease of 2.1% and the disposition of 9 Arby's units in the fourth quarter of 1999. Sales from the Company's Lyon's restaurants for the period were $23.4 million, a decrease of $1.9 million, or 7.4% from the prior year comparable period, principally due to a same store sales decrease of 5.9%.
The Company's operating margin (restaurant sales less restaurant costs and expenses, depreciation and amortization) for the period, excluding the effects of the non-recurring charge, was $7.2 million, or 11.7% of sales, a decrease of $948,000, or 11.6%, from the prior year comparable period. Sybra's operating margin for the period was $5.8 million, or 15.1% of sales, equal with the prior year comparable period. Operating margin from the Company's Lyon's restaurants for the period was $1.4 million, or 6.1% of sales, a decrease of $947,000 from the prior year comparable period.
The Company's EBITDA (earnings before interest, income taxes, depreciation and amortization), excluding the effects of the non-recurring charge, decreased to $5.2 million from $5.8 million, a decrease of $597,000, or 10.3%, from the prior year comparable period. Sybra's EBITDA for the period was $4.3 million, or 11.2% of sales, a decrease of $23,000, or 0.5%, from the prior year comparable period. EBITDA from the Company's Lyon's restaurants for the period was $1.0 million, or 4.5% of sales, a decrease of $555,000 from the prior year comparable period.
Results for the six months ended June 30, 2000
Net loss for the six months ended June 30, 2000 includes a non-recurring, pre-tax charge of $4.9 million ($2.9 million after the affect of income taxes) primarily related to required payments associated with the recent departure of the former CEO of the Company. As previously disclosed, the Company estimates that the annual pre-tax savings in general and administrative expenses resulting from this non-recurring charge will be approximately $700,000. As a result, the company experienced a net loss of $2.0 million, or $(.71) per common share, compared to net income of $2.1 million, or $.77 per common share ($.65 per diluted common share), in the prior year comparable period. Excluding the effects of the non-recurring charge, net income decreased 58.8% to $883,000, or $.31 per common share ($.28 per diluted common share), from $2.1 million, or $.77 per common share ($.65 per diluted common share), in the prior year comparable period.
The Company's revenues for the six month period ended June 30, 2000 were $122.9 million, an increase of $2.0 million, or 1.7%, over the prior year comparable period. Sybra's sales for the period were $76.5 million, an increase of $6.2 million, or 8.8%, over the prior year comparable period. This increase is a result of sales from new store openings and acquisitions, offset by a same store sales decrease of 1.3% and the disposition of 9 Arby's units in the fourth quarter of 1999. Sales from the Company's Lyon's restaurants for the period were $46.2 million, a decrease of $4.3 million, or 8.5% from the prior year comparable period, principally due to a same store sales decrease of 7.3%.
The Company's operating margin for the period, excluding the effects of the non-recurring charge, was $13.9 million, or 11.3% of sales, a decrease of $1.1 million, or 7.3%, from the prior year comparable period. Sybra's operating margin for the period was $11.5 million, or 15.1% of sales, an increase of $883,000 over the prior year comparable period. Operating margin from the Company's Lyon's restaurants for the period was $2.3 million, or 5.1% of sales, a decrease of $1.9 million from the prior year comparable period. The Company's EBITDA, excluding the effects of the non-recurring charge, decreased $555,000, or 5.4%, to $9.8 million from $10.3 million in the prior year comparable period. Sybra's EBITDA for the period was $8.6 million, or 11.2% of sales, an increase of $813,000, or 10.5%, over the prior year comparable period. EBITDA from the Company's Lyon's restaurants for the period was $1.4 million, or 2.9% of sales, a decrease of $1.5 million from the prior year comparable period.
Commenting on the Company's results, Co-Chairmen and Chief Executive Officers John A. Bicks and Robert H. Drechsler stated: ``These most recent operating results reflect the slight decrease in same store sales at the Company's Arby's restaurants, a same store sales decrease of nearly 6% at the Company's Lyon's restaurants and the moderate inflation of various operating costs at both chains. On the Arby's side, the most pronounced sales declines have occurred at a handful of mall stores as a result of generally decreased levels of mall customer traffic. Overall, the Company's Arby's units, as well as the Arby's system generally, continue to fare well when compared to the same store sales declines recently reported by other major quick-serve restaurant chains. The Company is continuing to address the issues that we believe are responsible for the sales declines at our Lyon's restaurants, and the most recent sales figures demonstrate that this trend continues to improve. Customer response to our recently remodeled and reimaged Lyon's units has been very favorable, and the sales levels at those units continue to be encouraging. On the cost side, the company has experienced moderate inflation in a range of categories, including food, labor and utility costs at both its Lyon's and Arby's units.'' |
