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Monday April 27, 3:00 pm Eastern Time
Company Press Release
Roadhouse Grill, Inc. Reports Record Earnings for
Quarter
Net Income Increases Over 34% on $29M Quarterly Revenues
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--April 27, 1998--Roadhouse Grill, Inc.
(Nasdaq:GRLL - news) Monday reported that revenues for the quarter ended March 29, 1998
reached a record $28,716,000, up 25.0% over the prior year's $22,971,000.
Net income for the quarter was $1,700,000, up 34.4% over the prior year's $1,265,000, also a
company record for earnings. Earnings per share was $0.18, up 28.6% over last year's $0.14 per
share. Same store sales for Company-owned stores were 1.5% above the prior year.
Vincent Tan, Chairman of the Board of Roadhouse Grill, commented on performance, ''Roadhouse
Grill's board appointed Ayman Sabi as Chairman of its Executive Committee in the fourth quarter of
1997 and elected Mr. Sabi President and CEO in February of 1998. Our objective was to improve
real estate development activities, operations and profitability, which had declined under previous
management. We are very pleased that we are already seeing positive results.''
Mr. Sabi noted that improvements to company performance were related to a series of actions and
achievements. ''Our first effort,'' he noted, ''was to improve the real estate development process at
Roadhouse Grill. We began a more strategic identification of sites for new restaurants, clustering
development geographically to improve advertising, management and purchasing economies. We
also opened the construction process to competitive bidding, reducing costs and development
schedules. On this basis, we opened four new units in the fourth quarter of 1997, and an additional
two units from January through April 1998, bringing to 44 the total number of company owned
restaurants. Reflecting the increasing effectiveness of the real estate function, three units are currently
in the construction process. We have been fortunate to enjoy the financing support of Finova
Capital Corporation, which recently increased its lending commitment to the company from $15
million to $30 million for the development process.''
Mr. Sabi emphasized the fundamental review and improvement of operations and management that
Roadhouse Grill undertook, ''We reexamined - and continue to reexamine - all of our operations
and purchasing procedures, with a fresh and objective perspective. As a result, we have begun to
improve the efficiency of restaurant unit management and of purchasing. Reduced purchasing and
operating costs are becoming clear.
''Finally,'' continued Mr. Sabi, ''we launched a $3.5 million television and radio advertising
campaign that spotlights the fun, casual atmosphere at Roadhouse Grill restaurants. The campaign
uses a light approach to highlight the fun, 'rambunctious' style of Roadhouse Grill restaurants, as well
as the variety and quality of fresh grilled steaks and other entrees. This campaign was designed for
Roadhouse Grill by a new advertising agency -- WestWayne, Inc., of Tampa, Fla., which served
Outback Steakhouse Inc. [Nasdaq:OSSI - news] during a period in which that chain grew from 45
to more than 200 stores. Our new restaurant development plan is now coordinated with this
advertising program, with a priority given to new restaurants in existing markets. This increases
media efficiency in key Roadhouse Grill markets.''
Roadhouse Grill currently owns and operates 44 and franchises three full-service, casual dining
restaurants under the name ''Roadhouse Grill.'' The Roadhouse Grill concept offers a fun,
value-oriented dining experience that features premium quality grilled entrees and friendly service
consistent with the Company's motto: ''Eat, drink and be yourself.'' The comfortable, entertaining
roadhouse setting is designed to appeal to a broad range of customers, including business people,
couples, singles and particularly families.
Certain of the statements in this release are forward-looking statements that are made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking
statements involve known and unknown risks and uncertainties that may cause the Company's
actual results in future periods to differ materially from forecasted results. Those risks are described
in the Company's filings with the Securities and Exchange Commission (the ''SEC'') over the last 12
months, copies of which are available from the SEC or may be obtained upon request from the
Company.
ROADHOUSE GRILL INC.
($ in thousands, except per share data)
Quarter Ended
March 29, 1998 March 30, 1997
(Unaudited)
Statement of Operations Data:
Total revenues $ 28,716 $ 22,971
Cost of restaurant sales:
Food & beverage 9,204 7,677
Labor & benefits 7,934 6,790
Occupancy & other 6,072 4,639
Total cost of restaurant sales 23,210 19,106
Depreciation & amortization 1,606 1,076
General & administrative 1,735 1,335
Total operating expense 26,551 21,517
Operating income 2,165 1,454
Other income (expense):
Interest expense, net (519) (259)
Equity in net income of affiliates 19 21
Other, net 100 79
Total other income (expense) (400) (159)
Pretax income 1,765 1,295
Income tax (a) 65 30
Net income $ 1,700 $ 1,265
Net income per common share $ 0.18 $ 0.14
Weighted average number of shares 9,305,408 9,305,408
(a) Income tax represents state income tax and alternative minimum tax
expense. The Company has a net operating loss carryforward and,
therefore, has limited federal income tax expense.
Contact:
Roadhouse Grill Inc., Fort Lauderdale
Dennis C. Jones
Executive Vice President and CFO
954/489-9699
More Quotes
and News:
Outback Steakhouse Inc (Nasdaq:OSSI - news)
Roadhouse Grill Inc (Nasdaq:GRLL - news)
Related News Categories: leisure/travel, restraunt
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