Brazil Fast Food Corp. (NASDAQ SmallCap: BOBS), the second largest fast-food chain operator in Brazil, with 233 outlets, today reported operating results for its first quarter ended March 31, 2001.
Net operating revenue for the three months ended March 31, 2001, increased 22.8 percent to R$21.5 million, from R$17.5 million for the same period of the prior year. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the first quarter of 2001 rose 19.7 percent to R$1.6 million from R$1.4 million for the first three months of 2000. System-wide gross sales for the chain increased 22.3 percent to R$45.9 million for the first quarter of 2001, from R$37.6 million for the comparable period of the previous year. Same store sales for the first three months of 2001 increased 6.2 percent from the prior year’s first quarter. The Company reported net operating income of R$653,000 for the first quarter of 2001 – an improvement of 34.1 percent from the R$487,000 net operating income for the first three months of 2000. Net income for the three months ended March 31, 2001, was R$1.4 million, or R$0.13 per basic and diluted share, compared with R$191,000, or R$0.06 per basic and diluted share for the first quarter of 2000.
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The breakdown of our net income is as follows: For the first quarter of 2001 and 2000, respectively, Brazil Fast Food reported income from operations of R$653,000 versus R$487,000, interest income of R$1.4 million versus an interest expense of R$(560,000), and a foreign exchange loss of R$(665,000) versus a gain of R$264,000. The shift from interest expense to interest income is attributable to an amnesty period provided by the Brazilian Federal Government. By taking advantage of this amnesty period, our Company had its prior years’ accrued interest expenses forgiven. Our first-quarter foreign exchange figures reflect a sharp swing in foreign exchange rates.
Commenting on the results, Peter van Voorst Vader, president and CEO of the Brazil Fast Food, said, “We believe that our first-quarter results provide further evidence that our Company is on the right track for achieving its goals for long-term growth. During the quarter, we opened five new restaurants, moving closer to our goal of having 270 points of sale by the end of 2001. In addition, we are continuing our strategy of offering quality, flexibility and value to our customers, keeping a tight rein on our operating costs, and developing and launching unique and effective marketing campaigns.”
Mr. Vader continued, “I would also like to take this opportunity to comment on the current electricity shortage in Brazil. While we are unable to predict what impact, if any, the government’s proposed imposition of consumption quotas will have on our future business results, we have no evidence, at this point in time, that they will negatively impact our operations in any material way or significantly slow our projected growth for this year.”
About Brazil Fast Food
Brazil Fast Food currently has 233 outlets in its chain. Brazil Fast Food Corp., through its wholly owned subsidiary, Venbo Comercio de Alimentos Ltda., a limited liability company that conducts business under the trade name “Bob’s,” owns and operates (both directly and through franchisees) the second largest chain of hamburger fast food restaurants in Brazil.
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By GlobalDataThis press release may contain certain forward-looking statements, which are subject to change. Actual results may differ from those described in any forward-looking statements. Additional information concerning potential factors that could affect the Company’s financial results are included in the Company’s Form 10-K for the year ended December 31, 2000.
BRAZIL FAST FOOD CORP.
Financial Highlights (Unaudited)1
(In thousands, except shares and earnings per share)
For the Three Months Ended | ||
3/31/01 | 3/31/00 | |
| System-Wide Sales | R$45,941 | R$37,555 |
| Net Operating Revenue | 21,473 | 17,492 |
| EBITDA2 | 1,619 | 1,352 |
| Income From Operations | 653 | 487 |
| Interest Income (Expense) | 1,405 | (560) |
| Foreign Exchange Gain (Loss) | (665) | 264 |
| Net Income | 1,393 | 191 |
| Net (loss) Per Share, | ||
| Basic and Diluted | R$0.13 | R$0.06 |
| Weighted Average | ||
| Shares Outstanding | 3,327,373 | 3,235,290 |
1. Expressed in Brazilian Reais.
2. Earnings before interest, taxes, depreciation and amortization.
