New World Reports 450% Increase in First Quarter Earnings
PR Newswire - May 11, 1999 05:15
EATONTOWN, N.J., May 11 /PRNewswire/ -- New World Coffee-Manhattan Bagel, Inc. (Nasdaq: NWCI) today announced that first quarter 1999 earnings rose 450% over the comparable 1998 period on a 153% increase in revenues. Net income for the three months ended March 28 reached $342,883, or $0.02 per share, compared with $62,344, or $0.01 per share, in the first quarter of 1998. Total revenues increased to $9,579,837 from $3,785,220 in the corresponding 1998 period. Earnings before interest, income taxes, depreciation and amortization (EBITDA) rose 152% to $1,176,486 or 12.3% of revenues, from $466,286, or 12.3% of revenues, a year ago.
The 1999 quarter is the first three-month period to fully incorporate the combined results of New World and Manhattan Bagel Company. New World acquired Manhattan Bagel on November 24, 1998. With the addition of Manhattan Bagel's manufacturing facilities, revenue growth was led by a 50-fold increase in manufacturing revenues to $6,044,207 in the 1999 quarter from $119,082 a year earlier. Additionally, franchise revenues grew 116% to $1,205,628 from $557,093 in the
1998 period. Retail sales declined 25% to $2,330,002 from $3,109,045 a year earlier, primarily reflecting New World's move to convert Company-owned stores to franchises.
"We are pleased with our first quarter results, which reflect the addition of Manhattan Bagel," commented Ramin Kamfar, New World Chairman and CEO, "Strong performances were posted in both the manufacturing and franchising sides of our business, and we continue to make progress in our efforts to convert Company-owned stores to franchisees."
At the end of the 1999 quarter, there were a total of 305 franchised and 25 Company-owned stores operating under the Manhattan Bagel and New World Coffee names in 18 states, the District of Columbia, and overseas. This compared with seven franchised and 34 Company-owned New World stores a year earlier.
New World is vertically integrated in bagel dough and cream cheese manufacturing, and coffee roasting, with plants in New Jersey, California and Connecticut.
Certain statements in this press release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. The words "forecast," "estimate," "project," "intend," "expect," should," "would" and similar expressions and all statements which are not historical facts
are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which could cause
the Company's actual results, performance (financial or operating), or achievements to differ from the future results, performance (financial or operating), or achievements expressed or implied by such forward-looking statements. The above factors are more fully discussed in the Company's SEC filings.
NEW WORLD COFFEE & BAGELS, INC.
FINANCIAL HIGHLIGHTS
(In thousands, except per share data)
Quarter Ended 3/28/99 3/29/98
Revenues:
Manufacturing Revenues 6,044,207 119,082
Franchise Related Revenues 1,205,628 557,093
Retail Sales $2,330,002 $3,109,045
Total Revenues 9,579,837 3,785,220
EBITDA 1,176,486 466,286
Net Income 342,883 62,344
Net Income Per Share $0.02 $0.01
Weighted Average Common Shares 19,815,173 11,784,401
SOURCE New World Coffee-Manhattan Bagel, Inc.
/CONTACT: Ramin Kamfar of New World Coffee-Manhattan Bagel, Inc.,
732-544-0155, ext. 108, ramink@bgls.com; or Bill Parness of Parness &
Associates Public Relations, 732-290-0121, bparnes@netlabs.net, for New World Coffee-Manhattan Bagel/
/Web site: nwcb.com
(NWCI) |
