Brazil Fast Food Corp. (NASDAQ
SmallCap: BOBS), the second largest fast-food chain operator in Brazil, with more
than 200 restaurants, today reported operating results for its second quarter
ended June 30, 2000.
Total operating revenue
for the six months ended June 30, 2000, increased to R$33.3 million, from R$30.2
million for the same period of the prior year. Earnings before interest, taxes,
depreciation and amortization (EBITDA) for the first half of 2000 were R$1.5
million versus R$672 million for the first six months of 1999. System-wide gross
sales for the chain increased 21.8 percent to R$71.4 million for the first half
of 2000, from R$58.6 million for the comparable period of the previous year.
Same store sales for the first six months of 2000 increased 11.9 percent from
the prior year’s first two quarters. The Company reported a net operating loss
of R$(210,000) for the first half of 2000 – an improvement of R$685,000 from
the R$(895,000) net operating loss of for the first six months of 1999. The
net loss for the six months ended June 30, 2000, was R$(1.4) million, or R$(.44)
per basic and diluted share, compared to R$(4.5) million, or R$(1.40) per basic
and diluted share for the first half of 1999.
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System-wide gross sales
for the chain increased 17.8 percent to R$34.8 million for the second quarter
of 2000, from R$29.6 million for the same period of the prior year. Same store
sales were up 8.8 percent for the second quarter of 2000 from the previous year’s
second quarter. Total operating revenue for the second quarter of 2000 rose
nine percent to R$15.8 million, from R$14.5 million for the same period of the
prior year. EBITDA were R$197,000 for the three months ended June 30, 2000,
versus R$158,000 for the second quarter of the previous year – an increase of
24.7 percent. The Company’s net loss was R$1.6 million, or R$.49 per basic and
diluted share, for 2000’s second quarter, compared with a net loss of R$781,000,
or R$(.24) per basic and diluted share, for the second quarter of 1999. The
breakdown of the net loss is as follows: For the second quarter of 2000 and
1999, respectively, the Company reported a loss from operations of R$(697) versus
R$(632), interest expense of R$(650) versus R$(953), and a foreign exchange
loss of R$(253) versus a gain of R$804. The decrease in the interest expense
is attributable to lower short-term debt and lower interest rates, and the foreign
exchange figures reflect a sharp swing in foreign exchange rates that resulted
in a gain in the second quarter of 1999. Excluding the impact of this rate swing,
the Company realized an improvement of R$238,000 from its second quarter 1999
net loss.
Peter van Voorst Vader,
president and CEO of Brazil Fast Food Corp., stated, "Brazil’s retail environment
has been gradually recovering from the devaluation of the Real in January 1999,
and, we believe we have positioned our Company well to benefit from the strengthening
economy. Our initiatives to cut our expenses, increase sales and seize strategic
opportunities to grow our chain are beginning to generate tangible results,
which we look forward to building upon throughout the second half of the year."
Mr. Van Voorst Vader continued,
"Our recently announced agreement with Petrobras Distribuidora (BR), the
largest gas station chain in Brazil, marked what we believe will be a milestone
for Brazil Fast Food. It not only will increase our point-of-sales locations
by 15 percent, but it also enhances our projected revenue growth rate. In addition,
it will allow us to greatly expand our presence in Brazil, while increasing
public recognition and the value of the Bob’s brand."
Under terms of this agreement,
Brazil Fast Food will, over the next 24 months, commit to opening a store-within-a-store
in BR Mania convenience stores or stand-alone drive-thru restaurants at 30 Petrobras
gas stations located predominantly in Rio de Janeiro and São Paulo. The
first location, which will be company-operated and situated near the Maracanã
Stadium, the world’s largest soccer stadium, will be opened within the next
six weeks. In addition, Brazil Fast Food and BR agreed to study the possible
expansion of the agreement to additional gas stations in Brazil operated by
BR.
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By GlobalDataPetrobras Distribuidora
(BR), with more than 7,200 service stations located in all the states of Brazil,
is a subsidiary of BR Petrobras, one of the world’s leading oil companies.
Brazil Fast Food currently
has more than 200 restaurant locations 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.
This 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, 1999.
BRAZIL FAST FOOD CORP.
Financial Highlights (Unaudited)¹
(In thousands, except shares and earnings per share)
|
For
the Three Months Ended |
For
the Six Months Ended |
|||
|
6/30/00
|
6/30/99
|
6/30/00
|
6/30/99
|
|
| System-Wide Sales |
R$34,829
|
R$29,569
|
R$71,371
|
R$58,578
|
| Net Operating Revenue |
15,777
|
14,474
|
33,269
|
30,157
|
| EBITDA² |
197
|
158
|
1,549
|
672
|
| (Loss) From Operations |
(697)
|
(632)
|
(210)
|
(895)
|
| Interest Expense |
(650)
|
(953)
|
(1,210)
|
(2,036)
|
| Foreign Exchange Gain (Loss) |
(253)
|
804
|
9
|
(1,595)
|
| Net Income (Loss) |
(1,600)
|
(781)
|
(1,411)
|
(4,526)
|
| Net (loss) Per Share, Basic and Diluted |
R$(.49)
|
R$(.24)
|
R$(.44)
|
R$(1.40)
|
| Weighted Average Shares Outstanding |
3,235,290
|
3,235,290
|
3,235,290
|
3,235,290
|
1. Expressed in Brazilian
Reais.
2. Earnings before interest, taxes, depreciation and amortization.
