DALLAS, Feb. 3, 2003 (PRIMEZONE) -- Romacorp, Inc. today announced results for its third quarter ended December 22, 2002.
Revenue for the quarter decreased $2.1 million, or 7.2% to $27.1 million as compared with the same quarter of the prior year. On a year-to-date basis, revenues decreased $8.9 million, or 9.5%, to $85.4 million as compared with the same period of the prior year. Of this decrease, the closure of five restaurants during the prior fiscal year and one restaurant during the current quarter resulted in a sales decrease of $1.4 million for the quarter and $4.9 million for the year-to-date period. The remaining decrease is due to sales declines at comparable restaurants of 1.7% for the quarter and 4.7% for the year to date.
During the third quarter, franchisees opened two restaurants in Canada and restaurants in Leon, Mexico; Guayaquil, Ecuador; Maracaibo, Venezuela; and Madrid, Spain. Three franchise restaurants were closed during the quarter.
For the quarter, EBITDA decreased 28.0% to $1.9 million from $2.6 million recorded during the same quarter of the prior year while on a year-to-date basis, EBITDA of $6.8 million was 21.7% lower than the prior year amount of $8.7 million. For the quarter and year-to-date periods, the EBITDA decrease is due primarily to the sales decline, lower net franchise revenue and higher general and administrative expenses.
The net loss for the quarter was $1.1 million compared with a net loss of $581,000 during the same quarter of the prior year. On a year-to-date basis, the net loss was $2.2 million compared to a net loss of $1.2 million during the prior year.
Frank H. Steed, Chief Executive Officer and President, commented, "Although our sales continued soft during the quarter, our sales trends at comparable restaurants, while still negative, were moderately improved. We continue to focus on improving operations and developing new food items to complement our world famous ribs."
Romacorp, Inc. operates and franchises Tony Roma's restaurants, the world's largest casual dining restaurant chain specializing in ribs. The Company currently operates 55 restaurants and franchises 204 restaurants in 29 states and 26 foreign 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 Thirty-Nine Weeks Ended
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Dec. 22, Dec. 23, Dec. 22, Dec. 23,
2002 2001 2002 2001
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Net restaurant sales $ 24,696 $ 26,482 $ 78,045 $ 86,796
Net franchise
revenue 2,439 2,761 7,393 7,586
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Total revenues 27,135 29,243 85,438 94,382
Cost of sales 8,009 8,528 25,233 28,609
Direct labor 8,817 9,385 27,016 29,639
Other 7,505 8,045 23,519 25,423
General and
administrative
expenses 2,258 2,177 6,935 6,616
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Total operating
expenses 26,589 28,135 82,703 90,287
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Operating income 546 1,108 2,735 4,095
Other income (expense):
Interest expense (2,021) (2,057) (6,074) (6,313)
Miscellaneous income 0 52 309 342
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Loss before income
taxes (1,475) (897) (3,030) (1,876)
Benefit for income
taxes (406) (316) (832) (660)
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Net loss $ (1,069) $ (581) $ (2,198) $ (1,216)
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Memo:
EBITDA $ 1,904 $ 2,641 $ 6,845 $ 8,738
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