Mexican Restaurants Inc. (Nasdaq:CASA) yesterday announced results for the first quarter ended April 1, 2001.
The Company’s revenues for the first quarter of fiscal 2001 were down 0.7% to $15.8 million over revenues of $15.9 million for the same quarter a year ago. Restaurant sales for the first quarter of 2001 were down $94,446 to $15.5 million compared with same quarter a year ago. The decline was due to a decrease in the number of restaurants. Two restaurants were closed, one was converted to a franchise-owned restaurant and one new restaurant was opened since the end of the first quarter of fiscal 2000. Total system sales at restaurants operating in both fiscal quarters (“same-stores”) increased 2.5%. Company-owned same-store sales increased 2.8%. Franchise-owned same-store sales for the quarter increased 2.1%.
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For the first quarter ended April 1, 2001, net income was $384,643 or $0.11 per share compared to $382,585 or $0.11 per share the same quarter a year ago.
Mr. Glowacki, the Company’s president and chief executive officer, commenting on the first quarter said, “I’m very pleased with our results. The first quarter marks the fifth straight quarter of positive same-store sales. As of the end of April, the second quarter is trending positive as well. Profit margins came back into line as we increased management focus and adjusted menu prices to deal with inflationary pressures that impacted the third and fourth quarters of last year.”
The Company’s Chairman of the Board, Mr. Louis P. Neeb, in commenting on the board’s decisions regarding First Tennessee Securities Corporation (FTSC) said, “The process of exploring shareholder value is well under way. We are pleased with the initial indications of interest. However, I do not expect to have additional comments regarding this process until late summer.”
Mexican Restaurants Inc. operates and franchises 88 Mexican restaurants. The current system includes 52 Company-operated restaurants and 36 franchisee-operated restaurants.
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By GlobalDataSpecial Note Regarding Forward-Looking Statements
This Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: accelerating growth strategy; dependence on executive officers; geographic concentration; increasing susceptibility to adverse conditions in the region; changes in consumer tastes and eating habits; national, regional or local economic and real estate conditions; demographic trends; inclement weather; traffic patterns; the type, number and location of competing restaurants; inflation; increased food, labor and benefit costs; the availability of experienced management and hourly employees; seasonality and the timing of new restaurant openings; changes in governmental regulations; dram shop exposure; and other factors not yet experienced by the Company. The use of words such as “believes”, “anticipates”, “expects”, “intends” and similar expressions are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. Readers are urged to carefully review and consider the various disclosures made by the Company in this report and in the Company’s Annual Report and Form 10-K for the fiscal year ended Dec. 31, 2000, that attempt to advise interested parties of the risks and factors that may affect the Company’s business.
Mexican Restaurants Inc. and Subsidiaries
Consolidated Statements of Income
13-Week 13-Week
Period Ended Period Ended
04/01/01 4/02/00
———— ————
Revenues:
Restaurant sales $15,451,021 $15,545,467
Franchise fees and royalties 306,491 341,839
Other 20,489 5,402
———— ————
15,778,001 15,892,708
———— ————
Costs and expenses:
Cost of sales 4,249,537 4,410,447
Labor 5,111,579 5,214,059
Restaurant operating expenses 3,784,719 3,556,370
General and administrative 1,295,250 1,374,593
Depreciation and amortization 573,593 496,000
Pre-opening costs 254 50,901
Asset impairments and
restaurant closing costs — —
———— ————
15,014,932 15,102,370
———— ————
Operating income (loss) 763,069 790,338
———— ————
Other income (expense):
Interest income 10,674 4,416
Interest expense (191,752) (204,898)
Other, net 9,768 (1,271)
———— ————
(171,310) (201,753)
———— ————
Income before income
tax expense 591,759 588,585
Income tax expense 207,116 206,000
———— ————
Net income $384,643 $382,585
============ ============
Basic and diluted income
per share $0.11 $0.11
============ ============
Weighted average number of
shares (basic and diluted) 3,526,107 3,620,914
============ ============
3,530,718 3,620,953
============ ============
Mexican Restaurants Inc.
Consolidated Condensed Balance Sheets
ASSETS 4/1/00 12/31/00
———– ———–
(Unaudited)
Current assets:
Total current assets 3,245,506 2,820,274
Net property, plant and equipment 17,977,486 18,211,648
Other assets 10,584,637 10,476,904
———– ———–
Total assets $31,807,629 $31,508,826
=========== ===========
LIABILITIES AND STOCKHOLDERS’ EQUITY
Total current liabilities 4,886,744 4,740,113
Long-term debt, net of
current portion 8,100,000 8,300,000
Other liabilities 584,654 537,219
Deferred gain 2,981,975 3,042,832
Total stockholders’ equity 15,254,256 14,888,662
———– ———–
Total liabilities and
stockholders’ equity $31,807,629 $31,508,826
=========== ===========
