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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Tummus1 who wrote (3387)	4/20/1998 11:35:00 AM
From: Amigo Mike	Respond to of 29382

EATS !!!! Eateries Inc. Reports Record 1st Quarter Results; Net Income Increases 134% OKLAHOMA CITY, April 20 /PRNewswire/ -- Vincent F. Orza, Chairman and President of Eateries, Inc. (Nasdaq: EATS - news), today announced the results of operations for the first quarter ended March 29, 1998. Net income for the quarter increased 134% to $534,000 ($0.14 per common share on 3.9 million shares; $0.13 per common share assuming dilution on 4.1 million shares) compared with $229,000 ($0.06 per common share on 3.9 million shares; $0.06 per common share assuming dilution on 4.0 million shares) for the quarter ended March 30, 1997. The Company's cash flow from operations (EBITDA) increased by 74% to $1,627,000 compared with $933,000 for the same period in 1997. Revenues for the quarter ended March 29, 1998 increased 66% to $23,546,000 as compared to $14,203,000 for the same period a year ago. During the first quarter, Eateries opened two new Garfield's restaurants, (one Company-owned and one franchise) and one new Garcia's Mexican Restaurant. One additional Company-owned Garfield's was opened subsequent to the end of the first quarter. The Company, under its subsidiary, Fiesta Restaurants, is also in the process of converting its two Carlos Murphy's and one remaining Casa Lupita Mexican restaurants to Garcia's Mexican Restaurants. Development plans call for up to two additional new restaurants (one Garfield's and one Garcia's) by year end. ''Our first quarter results reflect the continuing operational improvements we have been enjoying in our Garfield's restaurants. In addition, the acquisition of Garcia's Mexican Restaurants has had a very beneficial impact on the Company's overall performance. Our 1998 first quarter results of operations were the best in the Company's history, reaching record levels for revenues, earnings and cash flow. Indeed, we hope 1998 will be another record year for Eateries. Our goal is to continue to enhance shareholder value through stronger restaurant earnings and additional acquisitions,'' said Orza. In November 1997, Eateries, Inc. acquired 17 Mexican restaurants from Famous Restaurants, Inc. for approximately $8.6 million and the assumption of certain payables. In February 1998, Eateries sold three of these restaurants for $5.3 million to Chevy's Mexican Restaurants. The proceeds received from this transaction were used to pay down debt from the acquisition. In connection with this transaction, the Company entered into an agreement to sell one additional unit subject to the transfer of the liquor license associated with that restaurant. Management anticipates this sale will be finalized in the second quarter. Eateries, Inc. Chairman & President, Vincent Orza, noted, ''The sale of these four restaurants to Chevy's presented Eateries the opportunity to return to a nearly debt free status in 1998. As a result of the strength of the Company's balance sheet, management is aggressively pursuing another acquisition. It is our desire to acquire another 20-50 unit American, Mexican or Italian chain restaurant concept that will fit well with our existing operations.'' Eateries, Inc. owns, operates and franchises 73 restaurants under the names Garfield's Restaurant and Pub, Garcia's Mexican Restaurants, and Pepperoni Grill and Italian Bistro Restaurants in 26 states. For additional information, contact Vincent F. Orza, Jr. or Corey Gable at 3240 W. Britton Road, Oklahoma City, Oklahoma 73120 or call 405/755-3607 or FAX: 405-751-7348.