Planet Hollywood Q1 net off 91 pct, but optimistic
Reuters Story - May 04, 1998 17:28
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ORLANDO, Fla., May 4 (Reuters) - First-quarter profit at
Planet Hollywood International Inc. tumbled 91 percent,
but the restaurant franchiser said Monday that its stable of
celebrities should help boost the amount of patrons at its
movie memorabilia themed franchises and boost earnings.
Net income, which was nonetheless in line with analysts'
forecasts, fell to $900,000, or one cent per diluted share,
from the year-ago's $10.5 million, or 10 cents per share.
The company, which counts actors Arnold Schwarzenegger,
Bruce Willis and Demi Moore among its major shareholders, said
revenue slipped to $96.5 million, from $101.6 million.
President Robert Earl said Planet Hollywood was on track in
its efforts to boost profits. These goals include improving
same-store sales at its restaurant-retail units and achieving
1998 operating cash flow, or earnings before interest, taxes,
depreciation and amortization (EBITDA), of $115-$120 million.
"The company's fiscal first quarter performance was
according to plan...Our restaurant-retail operations are
positioned to benefit from the spring and summer months, which
historically have been our seasonally highest period of
business," Earl said in a statement.
He said the company's eight-point plan was not expected to
boost its financial performance immediately.
Planet Hollywood, which recently announced plans to build a
hotel/restaurant complex in New York City's Times Square, has
already gotten a vote of confidence from one major shareholder.
Just last week, Saudi Arabia's Prince Alwaleed bin Talal
said he raised his stake in the company to about 4 percent of
common shares from 1 percent. The prince and Planet Hollywood
formed a strategic pact last April in which the prince agreed
to develop up to 34 Planet restaurant-merchandise units in 23
countries.
At the end of the first quarter, the company had 83 Planet
Hollywood units in operation, including 46 Company-owned units
and 37 franchised units in 34 countries. |
