Creative Host Services, Inc. Announces Results for the Second Quarter of
1999, Revenues Increase 21.5%
SAN DIEGO, Aug. 11 /PRNewswire/ -- Creative Host Services, Inc. (Nasdaq: CHST - news) today announced results for the second quarter ended June 30, 1999. For the
three-month period the Company achieved gross revenues of $4,476,706 compared to $3,682,894 in the second quarter of 1998, an increase of 21.5%. Earnings for the 1999 three
month period were break even, versus a gain of $.06 cents per share in 1998. For the second quarter, net operating cash flow increased from $342,449 in the second quarter of 1998
to $956,812 in the same quarter of 1999. Interest for the 1999 second quarter was $163,383 versus $44,938 for the same period in 1998. Creative Host Services, Inc. has recorded
revenue increases for eleven consecutive quarters, having increased to $4,476,706 in Q-2 from $4,178,096 in the first quarter of 1999. The Company credits better operating results,
from -$.04 in the first quarter of 1999 to the current break even results for the second quarter, to management efficiencies introduced during the first half of the year.
For the six months ended June 30, 1999, Creative Host produced overall revenues of $8,654,802, up from $7,138,808 for the first six months of 1998. The Company earned $.10
cents per share during the first half of 1998, and reports a loss of -$.04 cents per share, to date, for this calendar year. The Company attributes the change in earning status to the high
costs of growth during the period of rapid expansion in late 1997 through March of 1999. During this time the company grew from 16 concessions on July 22, 1997, to 41
concessions at June 30, 1999. As interest and depreciation expenses decrease and as new locations reach their full operational potential over the upcoming periods, the company will
continue the increased economic growth and profitability realized during the second quarter. These improvements will also continue growing our already strong EBITDA numbers.
During the current break between concession build-outs, the Creative Host management team will continue concentrating on internal economies, which it intends to improve
statistically going forward. As a result of recent efforts, labor costs as a percentage of revenues were down over 3% for the second quarter of 1999, versus the first quarter of the year.
Overall G&A was down almost half a percent overall for the second quarter of this year versus the first quarter of 1999. In order to focus its efforts, management has created an
internal performance chart that forces itself to dedicate time to the efficiencies of virtually all aspects of its business over the preceding and coming weeks. As an example, the
Company is currently accepting bids from food vendors for its expanded National operations in order to save on overall food costs.
Sayed Ali, President and Chairman of the Company, said, ''Creative Host is currently concentrating on all aspects of managing the growth of our Company.'' He added, ''The recent
sale of Host Marriott Services at a high multiple was very encouraging and re-introduces the strength and value of our industry.''
Creative Host Services, Inc. is engaged in the business of acquiring, managing and operating airport concessions such as food and beverage, news and gift, and other concessions
throughout the United States. In addition, the Company also provides in-flight catering to certain national airlines at nine of its locations. The Company currently has 41 operating
facilities at 20 airports. Forty are company owned and one is franchised. Six of the Company's 41 operating concessions are food-courts; each consisting of several food and beverage
restaurants that are located within each court. To simplify accounting, the Company counts its various food-courts as only one concession.
Creative Host Services, Inc. enjoys co-branding relationships with several national and regional companies such as Carl's Jr., Taco Bell, Little Caesars Pizza, TCBY Yogurt, Mrs.
Fields Cookies, Nathan's Famous Hotdogs, Pretzelmaker, and Panache Coffees.
Certain of the matters discussed herein may contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from
expectations. These and other risks are set forth in the reports filed by the Company with the Securities and Exchange Commission. |
