Rainforest Cafe, Inc. Reports First Quarter Earnings of $ 0.16 Per Share
MINNEAPOLIS--Rainforest Cafe, Inc. (RAIN-National Market) today announced results of operations for the fourteen-week period ended April 5, 1998. Revenues for the period were $44.6 million compared with $21.9 million for the thirteen-week period ended March 30, 1997. The Company reported record first quarter net income of $4.0 million or $0.16 per share, for the first quarter ended April 5, 1998. The $4.0 million in net income for the period represented an increase of 150% from $1.6 million, or $0.06 per share in the comparable fiscal quarter in 1997, which included a $1.9 million or $0.07 per share write-off of certain development costs.
Total revenues for the first quarter ended April 5, 1998, increased 104% over the same period one-year ago. This increase was the result of the addition of nine domestic and three international units and also reflects $2.8 million in revenue from inclusion of an additional week in the first quarter of 1998. The comparable store sales base, comprised of four units open more than 18 months, increased 1%, after adjustment for the additional week in the 1998 period. There were 13 company-owned units open during the entire period with the unit at Palisades Center in West Nyack, New York, open for 18 days of the period. The Company's Disney's Animal Kingdom(TM) theme park unit operated for seven weeks in a pre-opening stage prior to the grand opening to the public on April 22, 1998. Six units were open during the comparable quarter of 1997. Earnings per share amounts for the quarter reflect a three-for-two stock split which was effective January 15, 1998.
Commenting on the first quarter results, Rainforest Cafe Chairman and Chief Executive Officer Lyle Berman, said, "We are pleased with our financial results for the quarter. Our entire team has remained focused on delivering results and we will strive to continue to do so as we open seven additional domestic units and five international units this year. We recently opened our newest Rainforest Cafe at Disney's Animal Kingdom(TM) theme park. This is our second unit at Walt Disney World and is our most spectacular unit yet. We have also added a new meal period to our units at MGM Grand and Disney's Animal Kingdom(TM) theme park with the introduction of the Morning Rumblings breakfast menu."
Rainforest Cafe, Inc. develops, owns and operates combination restaurant/retail facilities offering a stimulating and entertaining rain forest theme providing visitors with "A Wild Place to Shop and Eat"(R). There are currently 18 Rainforest Cafe units open including 15 domestic locations and three international units. Rainforest Cafe, Inc. common shares are traded on the NASDAQ National Market under the symbol RAIN.
This news release (as well as information included in oral statements or other written statements made or to be made by the Company) may contain forward-looking statements, such as statements relating to future expansion, that involve risks and uncertainties relating to future events. Actual events or the Company's results may differ materially from the results discussed in the forward-looking statement. The Company does not expect to update forward-looking statements continually as conditions change. These risks and uncertainties include, but are not limited to, those relating to competition, fluctuations and changes in consumer preferences and attitudes, intellectual property protection, development and construction activities, and results of shareholder litigation. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements contained in the Company's Form 10-K filed with the Securities and Exchange Commission for the fiscal year ended Dec. 28, 1997.
RAINFOREST CAFE, INC.
Consolidated Statements of Operations
(Unaudited)
Fourteen Thirteen
weeks weeks
ended ended
April 5, Mar. 30,
1998 1997
(In Thousands, Except
Share Data) -------- --------
REVENUES:
Restaurant sales $35,007 $16,621
Retail sales 9,312 4,998
Licensing fees
and royalties 307 250
---------- ----------
Total revenues 44,626 21,869
COSTS AND EXPENSES:
Food and beverage costs 8,331 3,962
Cost of retail goods
sold 4,353 2,356
Restaurant operating
expenses 17,930 8,179
Retail operating
expenses 3,124 1,568
Depreciation and
amortization 2,554 1,169
Amortization of preopening
expenses 1,630 821
---------- ----------
Total costs and
expenses 37,922 18,055
---------- ----------
Income from unit
operations and
licensing 6,704 3,814
--------- ---------
Other (Income) Expense:
General, administrative
and development expenses 2,791 1,516
Interest income (2,208) (2,129)
Write-off of development and
debt offering costs - 1,935
Equity in earnings of
unconsolidated subsidiaries - -
Other - -
Total other (income) expense 583 1,322
---------- ----------
Income before Income
Taxes 6,121 2,492
Provision for Income
Taxes 2,083 886
--------- ---------
Net income $4,038 $1,606
========== ==========
Basic Earnings Per
Common Share: $0.16 $0.06
Basic Weighted Average Shares
Outstanding 25,986,973 25,797,738
========== ==========
Diluted Earnings Per Common
Share: $0.16 $0.06
Diluted Weighted Average
Shares Outstanding 26,037,619 26,643,590
CONTACT: Rainforest Cafe, Inc., Minneapolis
Mark Robinow, 612/945-5400
www.rainforestcafe.com
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