Kelsey's announces record first quarter results
-- Company achieves 45% earnings growth as
corporate sales increase 64% --
TSE Symbol: KSY
OAKVILLE, ON, Oct. 16 /CNW/ - Kelsey's International Inc. (''Kelsey's''),
a leading Canadian operator of casual dining restaurants, today announced
record first quarter financial performance. Corporate sales for the twelve
weeks ended September 27, 1998, increased 64% to $31.6 million, compared to
$19.2 million in the first quarter of fiscal 1998. Net earnings increased 45%
to $765,843, or $0.05 per share, compared with $527,954, or $0.03 per share,
in the same period a year ago. Kelsey's fiscal 1999 first quarter marks the
company's 17th consecutive quarter of year-over-year increasing sales and
earnings.
Cash flow from operations increased 60% to $3.1 million, or $0.19 per
share, in the first quarter of fiscal 1999, compared to $2.0 million, or $0.12
per share in the same period a year ago. In addition, Kelsey's operating
margins improved to 16.1% in the quarter, up from 15.7% in the first quarter
of fiscal 1998.
Nils Kravis, President and COO of Kelsey's International commented, ''It
is rewarding to see the positive impact of the implementation of our strategic
development plan, with this being the strongest first quarter in our
history.''
Kelsey's opened five new corporate restaurants during the past quarter,
including four new Montana's Cookhouse Saloons and one new corporate Kelsey's.
The predominance of Montana's restaurants opened in the quarter reflects
management's increased development emphasis for this highly successful
restaurant brand. Included in new store openings is the company's first
restaurant in the United States - a Montana's Cookhouse Saloon in Orchard
Park, New York.
''We are pleased with our initial results at our Orchard Park Montana's
Cookhouse Saloon. Sales volumes are in line with our expectations based on our
experience in operating our Canadian-based Montana's restaurants and as
expected, we are achieving stronger operating margins,'' said Bruce Smith, VP
Finance and CFO of Kelsey's International. ''We will continue to track our
performance as we open an adjacent Kelsey's restaurant in the coming year and
look forward to achieving improved results as we benefit from our growing
brand awareness.''
Kelsey's International Inc. (''Kelsey's'') is a leading Canadian operator
of casual dining restaurants. Its restaurant brands include Kelsey's
Neighbourhood Bar & Grill and Montana's Cookhouse Saloon, the company is also
a franchisee of U.S. based Outback Steakhouse, Inc. The company currently
operates 46 corporate and 23 franchised Kelsey's restaurants, 11 Montana's
Cookhouse Saloons and 6 Outback Steakhouses.
A summary of the financial statements for the fiscal periods ended
September 27, 1998 and September 28, 1997 are attached.
KELSEY'S INTERNATIONAL INC.
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Consolidated Statement of Earnings First Quarter
(unaudited) 1999 1998
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Sales from corporate restaurant operations $ 31,577,738 $ 19,197,391
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Net corporate restaurant earnings 5,067,895 3,013,644
Earnings from franchise operations 368,940 320,762
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Total earnings from operations 5,436,835 3,334,406
Corporate and operations overhead 1,827,806 1,082,916
Amortization of capital and intangible
assets 1,876,942 1,025,058
Interest expense 337,244 162,520
Loss on disposal of assets -- 97,958
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Earnings before taxes and non controlling
interest 1,394,843 965,954
Income taxes (626,000) (435,000)
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Earnings before non controlling interest 768,843 530,954
Non controlling interest (3,000) (3,000)
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Net earnings $ 765,843 $ 527,954
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Earnings per share $ 0.05 $ 0.03
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Consolidated Statement of Changes in
Financial Position First Quarter
(unaudited) 1999 1998
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Operating Activities
Cash from operations 3,115,285 1,951,985
Changes in working capital 384,704 1,271,250
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Cash provided by operating activities 3,499,989 3,223,235
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Investing Activities
Additions to capital assets (5,216,389) (3,264,427)
Additions to intangible assets (1,929,349) (1,232,282)
Increase in loans and notes receivable - net (3,421) (9,693)
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Cash consumed by investing activities (7,149,159) (4,506,402)
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Financing Activities
Issuance of share capital 6,847 24,492
Increase in long term debt 2,155,661 220,255
Increase in amounts due from directors -- 526
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Cash provided by financing activities 2,162,508 245,273
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Net change in cash for the year (1,486,662) (1,037,894)
Cash (Bank indebtedness), beginning of year (511,345) 2,182,232
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Cash (Bank indebtedness), end of year $ (1,998,007) $ 1,144,338
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Cash flow per share $ 0.19 $ 0.12
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Consolidated Balance Sheet (unaudited) Sept. 27, 1998 Sept. 28, 1997
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Current Assets 4,765,308 4,644,887
Capital Assets & Assets Under Development 37,300,941 20,492,593
Loans and Notes Receivable 819,500 817,250
Intangible Assets 9,245,211 5,587,278
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Total Assets $ 52,130,960 $ 31,542,008
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Current Liabilities 16,484,659 9,857,485
Long Term Debt 12,390,540 3,216,516
Deferred Taxes 2,731,666 887,378
Deferred Exchange Loss (63,930) --
Non Controlling Interest 83,834 50,510
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Total Liabilities 31,626,769 14,011,889
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Shareholders' Equity
Share capital 14,131,838 13,792,473
Retained earnings 6,372,353 3,737,646
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Total Shareholders' Equity 20,504,191 17,530,119
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Total Liabilities and Shareholders'
Equity $ 52,130,960 $ 31,542,008
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%SEDAR: 00000223E
-30-
For further information: Bruce Smith, VP Finance and Chief Financial
Officer, Tel No.: (905) 842-5510 |
