Planet Hollywood Reports 1996 Fourth Quarter And Year-End Results
1996 Fourth Quarter Earnings Per Share $0.13 vs. $0.00
Fourth Quarter Income From Operations More Than Tripled to $21.7 Million
1996 Income Increased 95% to $0.47 Per Share vs. $0.24 Per Share
ORLANDO, Fla., Feb. 11 /PRNewswire/ -- Planet Hollywood International,
Inc. (Nasdaq: PHII) today announced financial results for the fourth quarter
and twelve months ended December 29, 1996.
The Company generated fourth quarter revenues of $99.1 million, an
increase of 32% from revenues of $75.0 million in the fourth quarter last
year. Income from operations more than tripled to $21.7 million from
$6.0 million in the fourth quarter last year. Net income dramatically
increased to $14.2 million, or $0.13 per share, on a 27% increase in the
number of weighted average common shares outstanding. In comparison, in the
fourth quarter of 1995, the Company reported net income of $251,000, or
$0.00 per share. The increase in the number of weighted average common shares
outstanding reflects the issuance of new shares as part of the Company's
initial public offering completed on April 24, 1996, the proceeds of which
were used primarily to reduce outstanding long-term debt.
For the twelve months ended December 29, 1996, the Company achieved record
revenues of $373.4 million, an increase of 38% from revenues of $270.6 million
in the 1995 twelve-month period. Income from operations more than doubled to
$79.6 million compared to $35.9 million in the twelve-month period in 1995.
Income, before a one-time charge of $10.4 million associated with the early
extinguishment of debt, rose 132% to $48.1 million or $0.47 per share, on a
19% increase in the number of weighted average common shares outstanding,
compared to net income of $20.7 million or $0.24 per share in the same period
last year.
The Company noted that it achieved outstanding financial results in 1996
including more than a 82% increase in net income and an almost doubling of
earnings per share. These results were achieved despite a 19% rise in the
number of weighted average common shares outstanding. Net income, including a
one-time extraordinary charge of $10.4 million, increased to $37.7 million
from $20.7 million in the year ago.
In 1996, Planet Hollywood accelerated the pace of its expansion,
completing the year with more units in operation than had been forecasted; a
greater number of units franchised; and the emergence of significant licensing
agreements targeted to expand and enhance the Planet Hollywood brand. In the
fourth quarter, eleven new Planet Hollywood units were opened, and at year-
end, the total number of Planet Hollywood units in operation was 53 including
34 company-owned units and 19 franchised units in 19 countries worldwide.
Official All Star Cafe opened two units in the fourth quarter including a
company-owned unit in Las Vegas, Nevada, and a franchised unit in Australia
for a total of five units in three countries.
Robert Earl, President and Chief Executive Officer, commented, "Planet
Hollywood exceeded its expectations for 1996 financial performance and growth
in our businesses. In 1996, revenues were up 38%; earnings before taxes
increased by more than 250%; and net income excluding a one-time charge rose
over 130%. We strongly believe that these results affirm the worldwide
strength of our brands and our ability to execute our plans and effectively
manage our growth. We continue to expand and enhance the worldwide awareness
of our brands which have outstanding potential for sustainable growth over the
long-term. We are taking advantage of an increasing number of opportunities
to license our trademarks and expand our franchises to create greater value
for our shareholders.
"In 1997, we look forward to introducing our new Music and Chefs of the
World concepts and expect each to offer the uniqueness to the marketplace and
financial profitability that are characteristic of our Planet Hollywood and
Official All Star Cafe brands. We envision our Music concept having the same
if not greater potential as our existing brands while the Chefs of the World
concept will be more retail-merchandise driven with a handful of restaurants.
We will be announcing additional details of each concept in the coming months.
The Marvel Mania concept, our joint venture with Marvel Entertainment, is
proceeding with plans to open one unit in Universal Studios, Los Angeles later
this year. We are monitoring the progress of the joint venture, in terms of
funding for future development of new units, and are encouraged by the recent
release of funds dedicated to the joint venture.
"The Company initiated news businesses and licensing opportunities during
1996 including the development of Planet Hollywood casinos and Planet
Hollywood SuperStores as well as licensing agreements for toys and the Planet
Hollywood Visa card, which are just in their infancy stages. We continue to
believe that there will be a Planet Hollywood casino in Las Vegas. We are now
testing our new retail business opportunity, Planet Hollywood SuperStores, in
several locations, and will be evaluating their performance over at least the
next six months to determine our course for future expansion. The new "Planet
Hollywood -- The Game" board game was introduced to the public today at 1997
Toy Fair, and Planet Hollywood Barbie(R) also made its debut late last week.
We have teamed up with the two major toy developers, Hasbro and Mattel, which
will enhance the awareness of our Planet Hollywood brand in major markets
worldwide. These are some of the steps we are taking, together with the
recent strengthening of our senior management team, to expand and enhance the
Planet Hollywood brand, and look forward to repeating our success with our
emerging brands, particularly our Official All Star Cafe brand in 1997," Mr.
Earl concluded.
Planet Hollywood is the creator and worldwide developer of consumer
brands, most notably Planet Hollywood, that capitalize on the universal appeal
of movies, sports and other entertainment-based themes. To date, the Company
has promoted its brands primarily through the operation of theme restaurants,
which provide a unique dining and entertainment experience in a high-energy
environment, and their integral retail stores. In addition to Planet
Hollywood, the Company has created and it is continuing to develop such
consumer brand concepts as Official All Star Cafe, a sports-themed restaurant-
merchandise store, and Marvel Mania, a comic book-themed restaurant-
merchandise store.
Planet Hollywood International, Inc.
Condensed Consolidated Statements of Earnings
Stated in thousands of U.S. Dollars, except per share amounts
Thirteen Weeks Ended Fifty-Two Weeks Ended
Dec.29, Dec.31, Dec.29, Dec.31,
1996 1995 1996 1995
Revenues $99,133 $74,997 $373,364 $270,606
Cost and expenses:
Cost of sales 23,108 21,181 93,426 76,462
Operating expenses 42,553 35,210 156,893 116,805
General and administrative
expenses 6,585 6,268 20,431 20,057
Depreciation and amortization 6,525 6,643 27,295 22,182
Equity in unconsolidated
affiliates (1,300) (282) (4,308) (848)
77,471 69,020 293,737 234,658
Income from operations 21,662 5,977 79,627 35,948
Other expenses (income):
Interest, net (634) 4,491 2,874 11,229
Minority interests --- 855 1,037 3,728
Gain on sale of subsidiary
interests --- --- --- (611)
Income before income taxes 22,296 631 75,716 21,602
Provision for income taxes 8,138 380 27,636 875
Income before extraordinary
item 14,158 251 48,080 20,727
Extraordinary item, net (A) --- --- 10,421 ---
Net income $14,158 $251 $37,659 $20,727
Earnings per share:
Income before extraordinary
item $0.13 $0.00 $0.47 $0.24
Net income $0.13 $0.00 $0.37 $0.24
Weighted average shares
outstanding 110,364 86,814 103,055 86,814
(A) The Company incurred a one-time extraordinary charge of
$10.4 million, net of $5.9 million in taxes, as a result of the early
extinguishment of long-term notes payable.
SOURCE Planet Hollywood International, Inc. |
