Planet Hollywood Reports 1997 Fourth Quarter And Year-End Results
PR Newswire - February 27, 1998 09:50
ORLANDO, Fla., Feb. 27 /PRNewswire/ -- Planet Hollywood International,
Inc. (NYSE: PHL) today announced financial results for the fourth quarter and
twelve months ended December 28, 1997.
The Company announced preliminary results of operations for its fourth
quarter and 1997 year-end in a separate press release issued on January 21,
1998. As expected and previously reported, the Company generated fourth
quarter revenues of $102.0 million compared to revenues of $99.1 million in
the fourth quarter last year. Income before tax was $1.3 million excluding a
charge in the fourth quarter. This compares to income before tax of $22.3
million in the fourth quarter of 1996. The Company recorded a pre-tax charge
of $71.2 million ($44.6 million after-tax) or $0.41 per share in the fiscal
1997 fourth quarter. Net income for the fourth quarter excluding the charge
was $0.8 million, or $0.01 per share, as also previously reported and
expected. The net loss for the fiscal 1997 fourth quarter including the
charge was $43.8 million or $0.40 per share. In the fourth quarter of 1996,
the Company reported net income of $14.2 million or $0.13 per share.
As announced on January 21, 1998, the 1997 fourth quarter charge was
primarily related to the writedown of impaired assets ($49.2 million pre-tax);
the elimination of certain development costs associated with the Company's
previous unit expansion strategy, corporate costs and, the write-off of
franchising costs due to the Company's change in business strategy and
financial uncertainties in certain international markets. ($22.0 million pre-
tax). The charge is reflected on the Company's statement of operations under
the categories cost of sales ($3.0 million pre-tax); general and
administrative expenses ($19.0 million pre-tax); provision for impaired assets
($48.7 million pre-tax); and, equity in income of unconsolidated affiliates
($0.5 million pre-tax).
For the fiscal year ended December 28, 1997, the Company reported revenues
of $475.1 million, an increase of 27% from revenues of $373.4 million in the
comparable period in 1996. Income before tax excluding the charge was $84.4
million, compared with income before tax of $75.7 million in the fiscal year
ended December 29, 1996. Income before tax including the charge was $13.2
million in fiscal 1997. As expected and previously announced, income, before
the charge was $52.9 million or $0.48 per share, compared to income before
extraordinary item of $48.1 million or $0.47 per share for fiscal 1996. Net
income for fiscal 1997 including the charge was $8.3 million, or $0.08 per
share, compared to net income of $37.7 million or $0.37 per share in the prior
year.
At year-end 1997, the Company had 78 total Planet Hollywood units in
operation including 46 company-owned units and 32 franchised units in 29
countries. Official All Star Cafe opened five units during the year including
four company-owned units and one franchised unit for a total of nine units
including seven company-owned units and two franchised units in three
countries.
Robert Earl, President and Chief Executive Officer, commented, "1997
fourth quarter results were primarily impacted by a further increase in
competition in the theme-dining sector which contributed to lower-than-
anticipated sales of food and merchandise at both Planet Hollywood and
Official All Star Cafe units; increased staffing and infrastructure-related
costs at both the corporate and unit levels associated with the Company's
rapid expansion in 1997, particularly outside the U.S.; and a shift in several
franchised restaurant openings from the fourth quarter of 1997 to the first
half of 1998."
"Our plan is to build increased operating efficiencies and performance
through each quarter of 1998. We expect to be well-positioned by summer to
take advantage of our seasonally highest period of business, and gain the
competitive advantages necessary to ensure more normalized profits in our
fourth quarter of 1998. Our operations are currently achieving performance
in-line with the company's previously announced, and analysts' revised
earnings expectations of $0.01 per share for the first quarter, and $0.43 -
$0.45 per share for the year. We are also committed to continuing our plans to
leverage the company's brands into new businesses within the lodging, movie
exhibition, gaming, and consumer products industries."
Planet Hollywood is a creator and worldwide developer of consumer brands
that capitalize on the universal appeal of movies, sports, music and other
leisure-time activities. The Company's worldwide operations offer products
and services in the retail, leisure, entertainment, lodging and gaming
sectors. The Company is organized under five operating divisions, Consumer
Products; Food & Beverage; Lodging & Gaming; Retail & Merchandise; and,
Theaters & Entertainment. Planet Hollywood International, Inc.'s Class A
common stock is listed under the symbol "PHL" on the New York Stock Exchange.
Certain statements contained herein are forward-looking statements that
are made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements involve known and
unknown risks and uncertainties which may cause the Company and its partners
actual results in future periods to differ materially from what is currently
anticipated. Those risks include, among others, risks associated with the
timing of and costs related to property improvements, financing commitments
and general competitive factors and a change in retailer or consumer
acceptance of the Company's and its partner's products and services.
Planet Hollywood International, Inc.
Condensed Consolidated Statements of Operations
Stated in thousands of U.S. Dollars, except per share amounts
Thirteen Weeks Ended Fifty-Two Weeks Ended
Dec. 28, Dec.29, Dec.28, Dec.29,
1997 1996 1997 1996
Revenues $101,988 $99,133 $475,125 $373,364
Cost and expenses:
Cost of sales 27,252 23,108 124,808 93,426
Operating expenses 54,197 42,553 208,484 156,893
General and
administrative
expenses 29,877 6,585 49,324 20,431
Depreciation and
amortization 12,534 6,525 38,825 27,295
Impairment of
longed-lived assets 48,699 --- 48,699 ---
172,559 78,771 470,140 298,045
Income (loss) from
operations (70,571) 20,362 4,985 75,319
Other expenses (income):
Interest expense --- 47 ---- 4,995
Interest income (100) (681) (1,327) (2,121)
Equity in income of
unconsolidated
affiliates (600) (1,300) (6,900) (4,308)
Minority interests --- --- --- 1,037
Income (loss) before
income taxes (69,871) 22,296 13,212 75,716
Provision for income
taxes (26,062) 8,138 4,954 27,636
Income (loss) before
extraordinary item (43,809) 14,158 8,258 48,080
Extraordinary item,
net (A) --- --- --- 10,421
Net income (loss) ($43,809) $14,158 $8,258 $37,659
Earnings (loss)
per share:
BASIC
Income (loss) before
extraordinary
item ($0.40) $0.13 $0.08 $0.47
Net income (loss) ($0.40) $0.13 $0.08 $0.37
Weighted average
shares
outstanding 108,884 107,555 108,465 100,741
DILUTED
Income (loss) before
extraordinary
item ($0.40) $0.13 $0.08 $0.47
Net income (loss) ($0.40) $0.13 $0.08 $0.37
Weighted average
shares
outstanding 109,890 109,762 109,761 102,384
(A) The Company incurred a one-time extraordinary charge of $10.4
million, net of $5.9 million in taxes, as a result of the early extinguishment
of long-term notes payable.
SOURCE Planet Hollywood International, Inc.
/CONTACT: Robert Weiner, Director of Investor Relations, Planet
Hollywood, 407-363-7827/
/Company News On-Call: prnewswire.com or fax,
800-758-5804, extension 116808/
(PHL) |
