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Wednesday November 18, 10:12 am Eastern Time
Company Press Release
SOURCE: Restaurant Teams International, Inc.
Restaurant Teams International, Inc. Announces Financial Results for the Three Months and Nine Months Ending September 30, 1998
LONGVIEW, Texas, Nov. 18 /PRNewswire/ -- Curtis A. Swanson, Chief Financial Officer of Restaurant Teams International, Inc. (OTC Bulletin Board: RTIN - news; RTIN), today announced the results of operations for the nine month period ending September 30, 1998. The Company achieved revenues of $2,816,946, an increase of 19.8% from $2,351,110 in the same period of 1997. Net pre-tax income increased to $603,861 or $.093 per share compared to net income of $42,153 in the first nine months of 1997, a 1433% gain.
Curtis A. Swanson, Chief Financial Officer stated, ''We are very excited about the success we are realizing with the Street Talk Cafe concept. During the last quarter we opened the prototype Street Talk Cafe in Richardson, Texas and successfully converted the restaurants at 6150 Frankford Rd. in Dallas, Texas and 4701 Hwy 121 in The Colony from Fresh'n Lite Cafe & Grills to Street Talk Cafes.''
Henry Leonard, President and Chief Operating Officer stated, ''We're pleased with the momentum we are experiencing in our results. Operating Income for the nine months ending September 30, 1998 increased 234% to $301,686 up from $90,061 over the same period in 1997. The net income results for the third quarter were down compared to previous year due to a reduction in the number of operating weeks. Two Fresh'n Lite Cafe & Grill restaurants were closed for conversion to the Street Talk Cafe concept during the quarter. The latest conversion, in The Colony, has been well received and the restaurant in trending 150% ahead of previous volumes. We will incorporate many of the changes made to the Colony location to our newest location, at Montfort and Beltine in Addison, Texas.'' Mr. Leonard further stated ''We are also very proud of our pre-tax earnings of $603,861 for the year. After adjusting $263,330 for profits on the sale of assets, our $340,531 in pre-tax income represents a 700% increase in earnings over the $42,153 we experienced in the same period in 1997. During a time of unprecedented investment in our future growth, it is especially fulfilling to realize 12% of revenue in pre- tax income even after adjusting for the sale of the assets.''
Restaurant Teams International, Inc. is the developer of the Fresh'n Lite Cafe & Grill and Street Talk Cafe concepts. Both concepts are full service, casual dining operations that feature a variety of your favorite foods along with many choices of non-fat and low fat menu items without sacrificing taste, service, value, or atmosphere.
This press release contains forward-looking statements, which are generally preceded by words such as ''believes'', ''expects'', ''anticipates'', or ''intends''. Such statements are subject to risks and uncertainties, including but not limited to competitive conditions, real estate zoning and permitting complications, government regulations, and general conditions in the restaurant market.
Restaurant Teams International, Inc.
Condensed Income Statement
For the Three Month and Nine Month Periods Ended
September 30, 1997 and September 30, 1998
Three Months Ended Nine Months Ended
September 30, September 30,
1997 1998 1997 1998
(Restated) (Restated) (Restated)
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
SALES $827,288 $1,076,110 $2,351,110 $2,816,946
EXPENSES
Food and Beverage
Costs 225,244 303,374 651,621 776,985
Salaries and Contract
Labor 203,529 306,993 622,101 743,872
Payroll and other
Taxes 24,113 50,822 88,813 125,093
Professional Fees 4,182 12,590 86,001 40,105
Advertising and
Promotional 10,806 37,166 49,512 79,606
Rent 39,162 65,623 109,114 174,186
Insurance 15,382 21,691 38,149 56,400
Telephone 10,818 13,932 26,638 25,224
Travel 2,482 2,165 10,557 9,053
Utilities 19,863 27,437 66,116 74,386
Depreciation 51,515 38,800 141,680 109,568
Amortization 18,650 18,000 230,416 49,417
Interest 26,416 55,877 83,001 133,611
Linen and Laundry 6,649 12,008 22,879 35,625
Repairs and
Maintenance 16,312 10,924 50,795 46,578
Supplies 6,356 7,823 18,707 28,665
Miscellaneous 1,003 806 9,878 6,886
Total Expenses 682,482 986,031 2,308,968 2,515,260
OPERATING INCOME
(LOSS) 145,806 90,061 42,142 301,686
OTHER INCOME/(EXPENSE)
Profit / (Loss) on
Sale of Assets 11 1,763 11 263,330
Rental Income --- 10,758 --- 38,844
Income Tax (Expense)
Benefit:
Current --- --- --- ---
Deferred --- --- --- ---
NET INCOME 145,817 102,557 42,153 603,861
Basic Earnings Per
Share $.023 $.016 $.007 $.093
Diluted Earnings Per
Share $.021 $.013 $.006 $.074
SOURCE: Restaurant Teams International, Inc.
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