DALLAS, Nov. 5, 2002 (PRIMEZONE) -- Romacorp, Inc. today announced results for its second quarter ended September 22, 2002.
Revenue for the quarter decreased $3.6 million, or 11.3% to $28.0 million as compared with the same quarter of the prior year. For the year-to-date, revenue decreased $6.8 million, or 10.5% to $58.3 million as compared with the same period of the prior year. Of this decrease, the closure of five restaurants during the prior fiscal year resulted in a sales decrease of $1.7 million for the quarter and $3.4 million for the year-to-date. The remaining decrease is due primarily to sales declines at comparable restaurants of 7.1% for the quarter and 6.0% for the year-to-date.
During the second quarter, franchisees opened restaurants in Primm Valley, Nevada; Seoul, Korea; Campinas, Brazil; and Caracas, Venezuela. One franchised restaurant in Puerto Rico was closed. The new restaurant in Venezuela represents the fourth mall-based Rib Express in that country.
For the quarter, EBITDA decreased 10.6% to $2.4 million from $2.7 million during the same quarter of the prior year while on a year-to-date basis, EBITDA of $4.9 million was 19.0% lower than the prior year amount of $6.1 million. For the quarter and year-to-date periods, the EBITDA decrease is due primarily to the sales shortfall, higher group insurance, workers' compensation insurance and repair and maintenance costs partially offset by lower cost of sales associated with lower rib prices during the current year.
The net loss for the quarter was $651,000 compared with a net loss of $634,000 during the same quarter of the prior year. On a year-to-date basis, the net loss was $1.1 million compared to a net loss of $635,000 during the prior year. During the quarter, the Company recorded a gain on the sale of one property of $118,000 versus a loss on sale of assets of $52,000 recorded during the same quarter of the prior year.
Frank H. Steed, Chief Executive Officer and President, commented, "The sales decrease experienced by our company during the second quarter is reflective of continued economic softness and our higher use of discount promotions during the same quarter of the prior fiscal year. We were excited to open the first Tony Roma's in Brazil during the quarter and the continued expansion of our franchise system is encouraging."
Romacorp, Inc. operates and franchises Tony Roma's restaurants, the world's largest casual dining restaurant chain specializing in ribs. The Company currently operates 56 restaurants and franchises 257 restaurants in 29 states and 26 countries and territories.
Forward-Looking Comments
Statements which are not historical facts contained herein are forward-looking statements that involve estimates, risks and uncertainties, including but not limited to: consumer demand and market acceptance risk; the level of and the effectiveness of marketing campaigns by the Company; training and retention of skilled management and other restaurant personnel; the Company's ability to locate and secure acceptable restaurant sites; the effect of economic conditions, including interest rate fluctuations, the impact of competing restaurants and concepts, new product introductions, product mix and pricing, the cost of commodities and other food products, labor shortages and costs and other risks detailed in filings with the Securities and Exchange Commission.
ROMACORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in Thousands)
(UNAUDITED)
Thirteen Weeks Ended Twenty-Six Weeks Ended
Sept. 22, Sept. 23, Sept. 22, Sept. 23,
2002 2001 2002 2001
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Net restaurant sales $25,561 $29,213 $53,349 $60,314
Net franchise revenue 2,485 2,411 4,954 4,825
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Total revenues 28,046 31,624 58,303 65,139
Cost of sales 8,215 9,705 17,224 20,081
Direct labor 8,793 9,870 18,199 20,254
Other 7,827 8,708 16,014 17,378
General and administra-
tive expenses 2,205 2,232 4,677 4,439
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Total operating
expenses 27,040 30,515 56,114 62,152
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Operating income 1,006 1,109 2,189 2,987
Other income (expense):
Interest expense (2,031) (2,107) (4,053) (4,256)
Miscellaneous income 204 20 309 290
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Loss before income taxes (821) (978) (1,555) (979)
Benefit for income taxes (170) (344) (426) (344)
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Net loss $ (651) $ (634) $(1,129) $ (635)
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Memo:
EBITDA $ 2,377 $ 2,659 $ 4,941 $ 6,097
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