Monday August 10, 1:09 pm Eastern Time
Company Press Release
SOURCE: Eateries Inc.
Eateries Inc. Reports Record 2nd Quarter Results
Second Quarter Net Income Soars, Revenues Increase 56% and Cash Flow from Operations
(EBITDA) Increases 81%
2nd Quarter Results
OKLAHOMA CITY, Aug. 10 /PRNewswire/ -- Vincent F. Orza, Jr., Chairman and Chief Executive Officer of Eateries, Inc.
(Nasdaq: EATS - news) today announced the results of operations for the second quarter ended June 28, 1998. Net Income
for the quarter increased 939% to $247,000 ($0.06 per common share on 3.9 million shares; $0.06 per common share
assuming full dilution on 4.2 million shares) compared to $24,000 ($0.01 per common share on 3.9 million shares; $0.01 per
common share assuming full dilution on 4.0 million shares) for the quarter ended June 29, 1997. Second quarter results
included a 56% increase in revenues to $21.3 million compared with $13.7 million for the same period in 1997. The
Company's cash flow from operations (EBITDA) increased by 81% to $1,111,000 compared to $614,000 for the same
period in 1997.
Year to Date Results
Net Income for the first twenty-six weeks of the year increased 209% to $780,000 ($0.20 per common share on 3.9 million
shares; $0.19 per common share assuming full dilution on 4.2 million shares) compared to $252,000 ($0.07 per common share
on 3.9 million shares; $0.06 per common share assuming full dilution on 4.0 million shares) for the twenty-six weeks ended
June 29, 1997. Revenues for the twenty-six weeks ended June 28, 1998 increased 61% to $44.9 million as compared to
$27.9 million for the same period in 1997. The Company's cash flow from operations (EBITDA) increased by 77% to
$2,735,000 compared to $1,547,000 for the same period a year ago.
Trailing Twelve Months Results
Net income for the trailing four quarters ended June 28, 1998 increased 100% to $1,927,000 ($0.50 per common share on
3.9 million shares; $0.47 per common share assuming full dilution on 4.1 million shares) as compared to $963,000 ($0.25 per
common share on 3.9 million shares; $0.24 per common share assuming full dilution on 4.0 million shares) for the trailing four
quarter period ended June 29, 1997. Revenues increased 38% for the trailing four quarters ended June 28, 1998 to $80.5
million compared to $58.1 million for the same period a year ago. Cash flow from operations (EBITDA) increased 61% to
$5,684,000 compared to $3,525,000 for the same trailing four quarter period in 1997.
''The Company's revenues, earnings and cash flow from operations (EBITDA) are once again at new highs. Our combined
results of operations for first and second quarters of 1998 were the best in the Company's history, as were the results of
operations for the trailing four quarters ended June 28, 1998.'' said Mr. Orza.
During the second quarter of 1998 the Company began the move of its Fiesta Restaurants, Inc. subsidiary corporate offices
from Phoenix, Arizona, to Oklahoma City, Oklahoma. Two new Company owned restaurants were opened in the second
quarter, a Garcia's in the new Arizona Diamond Back stadium in Phoenix, and a Garfield's restaurant in Asheville, North
Carolina. The Phoenix Garcia's operate under the Company's subsidiary Fiesta Restaurants, Inc. In addition to these locations
the Company acquired an additional Garcia's restaurant in Davie, Florida, during the quarter. It was completely remodeled and
reopened in July.
The Company's Chairman and CEO, Vincent Orza, stated ''We have brought Bradley L. Grow on board as our Chief
Financial Officer. Brad's background is not only in public accounting but includes experience in mergers and acquisitions. We
believe that we have a team in place that can grow the Company through acquisitions and internal expansion. In addition, we
expect there will be additional cost savings from consolidation of corporate management and facilities as a part of future
acquisitions, similar to what we have experienced in the recent acquisition of the Garcia's restaurants. Our goal remains to
enhance shareholder value through earnings growth and additional acquisitions. The Company is currently reviewing several
acquisition and business combination opportunities. With our financial strength and our team in place we will aggressively
pursue this avenue of expansion.'' said Orza.
Eateries, Inc., owns, operates and franchises 73 restaurants under the names Garfield's Restaurant & Pub, Garcia's Mexican
Restaurant, Carlos Murphy's and Pepperoni Grill & Italian Bistro Restaurants in 26 states. For additional information contact
Vincent F. Orza, Jr. or Bradley L. Grow at 3240 W. Britton Road, Oklahoma City, Oklahoma 73120 or call 405-755-3607
or FAX 405-751-7348.
Statements made in this press release include forward-looking statements made pursuant to the safe harbor provisions of the
Private Securities Litigation Act of 1995. Such statements involve certain risks and uncertainties that could cause actual results
to differ materially from those in the forward-looking statements including uncertainties regarding the effectiveness of initiatives
to lower selling, general and administrative expenses and to improve operations within the core businesses. Information on
significant potential risks and uncertainties that may cause such differences include, but are not limited to, those mentioned in the
Company's filing with the Securities and Exchange Commission, including its Form 10K a for the year ended December 28,
1997. |
