Morton’s Restaurant Group has reported 2001 fourth quarter revenues of US$61.49m, down 12% versus 2000 Q4 revenues of US$69.87m.
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Net income for the 2001 Q4 was US$1.73m, US$0.41/diluted share, which includes pretax costs of US$204,000, associated with the company’s evaluation of strategic alternatives, a pretax charge of US$1.62m, representing the write-down and exit costs associated with the Sydney, Australia restaurant closing and an income tax benefit of US$392,000. Net income for the Q4 of 2000 was US$3.98m, US$0.91/diluted share.
Revenues for the year, ended 30 December 2001, were US$237n, down 4.5% versus revenues of US$248.38m for the comparable 2000 period. For the year net income was US$989,000, or US$0.23/diluted share, which includes pretax costs of US$730,000, associated with Morton’s Q2 proxy contest and its evaluation of strategic alternatives, a pretax charge of US$1.62m, representing the write-down and exit costs associated with the Sydney, Australia restaurant closing and an income tax benefit of US$710,000. Net income was US$10m, US$2.12/diluted share, for the year ended 31 December 2000.
For the 2001 Q4 and FY periods, Morton’s of Chicago comparable restaurant revenues declined 14.8% and 10.7%, respectively. Last year, Morton’s of Chicago comparable restaurant revenues increased 4.5% and 9.5%, respectively. The company noted that, prior to this year, Morton’s of Chicago had not experienced a decline in quarterly comparable restaurant revenues since the Q1 of 1991.
Consistent with its previous announcements, Morton’s said that due to the severe nationwide impact of the World Trade Center terrorist attacks, the continuing impact of the troubled economy, unfavourable business conditions, corporate spending cutbacks and reduced business travel, it continues to experience weak revenue trends and negative comparable restaurant revenues. For the 2002 Q1, through 10 March 2002,
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By GlobalDataMorton’s of Chicago experienced negative comparable restaurant revenues of approximately 10.5%. These adverse operating conditions, unfavorable revenue trends, increased operating costs, and investment banking, legal and other costs associated with the company’s evaluation of strategic alternatives are expected to negatively impact results. Based on these factors, Morton’s expects to report 2002 Q1 income, excluding unusual items, below 2001 Q1 results.
Morton’s added that, if such unfavourable conditions continue, or worsen, future results will also be adversely affected, the full extent of which cannot be determined or forecasted at this time.
The company also said that it is continuing the process of exploring its strategic alternatives, including evaluating a potential sale of the company.
Allen J. Bernstein, chairman, president and CEO said, “2001 was the most difficult year in our company’s history. And, of course, it was a year like no other in the history of the US.
“Morton’s Restaurant Group’s extraordinary record of fifteen years of comparable restaurant revenue growth came to an abrupt end in the Q1 of 2001.
“Morton’s is determined to move forward and work hard to meet the challenges and address the obstacles of this new challenging business environment. Our non-negotiable commitment to offer only excellence in food and service and to continually exceed guest expectations remain at the core of our company.”
At 30 December 2001, Morton’s owned and operated 66 restaurants (62 Morton’s of Chicago steakhouses (currently 61) and 4 Bertolini’s Authentic Trattorias) in 57 cities and 27 states, in the continental US, Hawaii, Puerto Rico, Australia, Canada, Hong
