-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Pzbm5130hVJ0pYAckZ9CgF3Ul5H7RWPY2B47gF2EkBKXsoByycsGaWRqEGVQzuuq uQtnsSw3oiAup8y0Y36jaA== 0000899078-98-000397.txt : 19981123 0000899078-98-000397.hdr.sgml : 19981123 ACCESSION NUMBER: 0000899078-98-000397 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19981004 FILED AS OF DATE: 19981116 DATE AS OF CHANGE: 19981120 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SPAGHETTI WAREHOUSE INC CENTRAL INDEX KEY: 0000775298 STANDARD INDUSTRIAL CLASSIFICATION: 5812 IRS NUMBER: 751393176 STATE OF INCORPORATION: TX FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-10291 FILM NUMBER: 98754262 BUSINESS ADDRESS: STREET 1: 402 WEST I 30 CITY: GARLAND STATE: TX ZIP: 75043 BUSINESS PHONE: 2142266000 MAIL ADDRESS: STREET 1: 402 WEST I 30 CITY: GARLAND STATE: TX ZIP: 75043 FORMER COMPANY: FORMER CONFORMED NAME: OLD SPAGHETTI WAREHOUSE INC DATE OF NAME CHANGE: 19901113 10-Q 1 FORM 10-Q FOR SPAGHETTI WAREHOUSE, INC. FORM 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 (MARK ONE) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly period ended October 4, 1998 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to ---------------- --------------- Commission file number: 1-10291 Spaghetti Warehouse, Inc. (Exact name of registrant as specified in its charter) Texas 75-1393176 (State or other jurisdiction of (IRS Employer Identification incorporation or organization) Number) 402 West I-30, Garland, Texas 75043 (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: 972/226-6000 Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X . No . ------- ------- Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of October 4, 1998: 5,689,301 shares of common stock, par value $.01. - 1 - PART 1 - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS SPAGHETTI WAREHOUSE, INC. AND SUBSIDIARIES
Consolidated Balance Sheets ASSETS 6/28/98 10/4/98 ------ ------- ------- (Unaudited) Current assets: Cash and cash equivalents........................ $ 942,622 $ 916,237 Accounts receivable.............................. 569,349 734,478 Inventories...................................... 642,379 648,773 Prepaid expenses................................. 333,779 288,214 Deferred income taxes............................ 273,934 8,227 ----------- ----------- Total current assets..................... 2,762,063 2,595,929 ----------- ----------- Property and equipment, net........................ 47,923,834 48,605,676 Trademark and franchise rights, net................ 2,641,235 2,518,535 Pre-opening costs, net............................. 109,977 72,493 Deferred income taxes.............................. 3,553,571 3,837,692 Other assets....................................... 747,936 710,326 ----------- ----------- $57,738,616 $58,340,651 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY ------------------------------------ Current liabilities: Current portion of long-term debt................ $ 1,359,837 $ 1,813,116 Accounts payable................................. 2,451,987 2,306,962 Accrued payroll and bonuses...................... 1,683,173 1,384,558 Other accrued liabilities........................ 813,428 797,742 ----------- ----------- Total current liabilities................ 6,308,425 6,302,378 ----------- ----------- Long-term debt, less current portion............... 4,079,507 4,522,949 Deferred compensation.............................. 155,641 170,266 Commitments and contingencies...................... - - Stockholders' equity: Preferred stock of $1.00 par value; authorized 1,000,000 shares; no shares issued............................... - - Common stock of $.01 par value; authorized 20,000,000 shares; issued 6,717,759 shares at 6/28/98 and 6,746,642 shares at 10/4/98................ 67,178 67,466 Additional paid-in capital....................... 37,508,055 37,698,555 Accumulated other comprehensive income (loss).... (829,325) (974,505) Retained earnings................................ 17,946,524 18,050,931 ----------- ----------- 54,692,432 54,842,447 Less cost of 1,057,341 shares at 6/28/98 and 10/4/98 of common stock held in treasury... (7,497,389) (7,497,389) ----------- ----------- 47,195,043 47,345,058 ----------- ----------- $57,738,616 $58,340,651 =========== ===========
See accompanying notes to condensed consolidated financial statements. - 2 -
SPAGHETTI WAREHOUSE, INC. AND SUBSIDIARIES Consolidated Statements of Operations (Unaudited) 13-Week Period 14-Week Period Ended 9/28/97 Ended 10/4/98 -------------- -------------- Revenues: Restaurant sales....................................... $ 15,584,155 $ 17,213,997 Franchise.............................................. 175,134 157,079 Other.................................................. 172,178 208,817 ------------- ------------- Total revenues..................................... 15,931,467 17,579,893 ------------- ------------- Costs and expenses: Cost of sales.......................................... 4,035,882 4,840,262 Operating expenses..................................... 8,717,783 10,109,413 General and administrative............................. 1,377,812 1,454,663 Depreciation and amortization.......................... 928,708 967,345 ------------- ------------- Total costs and expenses........................... 15,060,185 17,371,683 ------------- ------------- Income from operations...................................... 871,282 208,210 Net interest expense........................................ 89,145 85,059 ------------- ------------- Income before income tax expense............................ 782,137 123,151 Income tax expense.......................................... 275,787 18,745 ------------- ------------- Net income.................................................. $ 506,350 $ 104,406 ============= ============= Net income per common share: Basic.................................................. $ .09 $ .02 ============= ============= Diluted................................................ $ .09 $ .02 ============= ============= Weighted average common shares outstanding: Basic.................................................. 5,655,494 5,665,660 ============= ============= Diluted................................................ 5,829,264 5,827,342 ============= =============
See accompanying notes to condensed consolidated financial statements. - 3 -
SPAGHETTI WAREHOUSE, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY For the 14 Weeks Ended October 4, 1998 (Unaudited) Common Stock Accumulated Treasury Stock other Total -------------------- Additional comprehensive Retained ---------------------- Compre- stockholders' paid-in capital income (loss) Earnings hensive equity --------------- ------------- -------- income ------------- (loss) Number of Number ------- shares Amount of Shares Amount --------- ------ --------- ------ Balances at June 28, 1998........ 6,717,759 $ 67,178 $37,508,055 $ (829,325) $17,946,525 1,057,341 $(7,497,389) $47,195,044 Comprehensive income: Net Earnings....... - - - - 104,406 - - $104,406 104,406 Other comprehensive income (loss), foreign currency adjustment......... - - - (145,180) - - - (145,180) (145,180) -------- Other comprehensive $(40,774) income (loss)...... ======== Employee ESP plan purchases and stock option exercises...... 28,883 288 172,500 - - - - 172,788 Stock options issued as compensation....... - - 18,000 - - - - 18,000 --------- ---------- ----------- ---------- ---------- --------- ----------- ----------- Balances at........... 6,746,624 $ 67,466 $37,698,555 $ (974,505) $18,050,931 1,057,341 $(7,497,389) $47,345,058 ========= ========== =========== ========== =========== ========= =========== ===========
See accompanying notes to condensed consolidated financial statements. - 4 -
SPAGHETTI WAREHOUSE, INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows (Unaudited) 13-Week Period 14-Week Period Ended 9/28/97 Ended 10/4/98 -------------- -------------- Cash flows from operating activities: Net income ............................................... $ 506,350 $ 104,406 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization expense.............. 928,708 967,345 Loss on disposal of property and equipment......... 4,110 3,598 Deferred income taxes.............................. 221,747 (16,393) Other, net......................................... (5,827) 33,113 Changes in assets and liabilities: Accounts receivable............................ 137,295 (168,904) Inventories.................................... 51,217 (6,394) Prepaid expenses............................... (49,844) 45,565 Other assets................................... (10,122) (404) Accounts payable............................... (362,152) (142,637) Accrued payroll and bonuses.................... (403,875) (298,615) Other accrued liabilities...................... 83,058 (15,685) -------------- -------------- Net cash provided by operating activities.......... 1,100,665 504,995 -------------- -------------- Cash flows from investing activities: Purchase of property and equipment.......................... (760,401) (1,580,421) Proceeds from sales of property and equipment............... 418,105 14,750 -------------- -------------- Net cash used in investing activities.............. (342,296) (1,565,671) -------------- -------------- Cash flows from financing activities: Net borrowings from long-term debt.......................... -- 896,721 Proceeds from employee stock plans.......................... -- 172,788 -------------- -------------- Net cash provided by financing activities.......... -- 1,069,509 -------------- -------------- Effects of exchange rate changes on cash and cash equivalents ............................................... 195 (35,218) -------------- -------------- Net increase (decrease) in cash and cash equivalents............. 758,564 (26,385) Cash and cash equivalents at beginning of period................. 1,916,983 942,622 -------------- -------------- Cash and cash equivalents at end of period....................... $ 2,675,547 $ 916,237 ============== ============== Supplemental information: Interest paid (net of amounts capitalized).................. $ 149,677 $ 202,554 ============== ============== Income taxes paid (net of refunds collected)................ $ 54,091 $ 37,159 ============== ==============
See accompanying notes to condensed consolidated financial statements. - 5 - SPAGHETTI WAREHOUSE, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1. Basis of Presentation In the opinion of management, the accompanying condensed consolidated financial statements contain all adjustments necessary for a fair presentation of the consolidated financial position as of October 4, 1998 and the consolidated results of operations and cash flows for the 14-week period ended October 4, 1998 and the 13-week period ended September 28, 1997. Operating results for the 14-week period ended October 4, 1998 are not necessarily indicative of the results to be expected for the full fisca year. 2. Accounting Policies During the interim periods the Company follows the accounting policies set forth in its consolidated financial statements in its Annual Report (Form 10-K) (File No. 1-10291). Reference should be made to such financial statements for information on such accounting policies and further financial details. 3. New Accounting Pronouncements In March 1997, the Financial Accounting Standard Board ("FASB") issued Statement No. 128 ("SFAS No. 128"), "Earnings per Share." This statement establishes new standards for computing and presenting earnings per share ("EPS"). SFAS No. 128 is effective for financial statements issued for periods ending after December 15, 1997. As a result, the Company's EPS for fiscal 1998 was calculated under SFAS No. 128. However, the adoption of this FASB Statement had no effect on the Company's previously reported EPS. In June 1997, the FASB issued Statement No. 130 ("SFAS No. 130"), "Report- ing Comprehensive Income." SFAS No. 130 establishes new rules for the re- porting and display of comprehensive income and its components in the financial statements. The Company adopted SFAS No. 130 in the first quarter of fiscal 1999. In April 1998, the American Institute of Certified Public Accountants issued Statement of Position 98-5 ("SOP 98-5"), "Reporting of the Costs of Start-up Activities." SOP 98-5 is effective for financial statements issued for years beginning after December 15, 1998; therefore, the Company will be required to implement its provisions by the first quarter of fiscal 2000. At that time, the Company will be required to change the method currently used to account for pre-opening costs. The application of SOP 98-5 will result in pre-opening costs on the Company's Consolidated Balance Sheet as of the date of adoption, net of related tax effects, being charged to operations as the cumulative effect of a change in accounting principle. Under the new requirements for accounting for pre-opening costs, the subse- quent costs of start-up activities will be expensed as incurred. - 6 - In June 1998, the FASB issued Statement No. 133 ("SFAS No. 133"), "Account- ing for Derivative Instruments and Hedging Activities." SFAS No. 133 establishes accounting and reporting standards for derivative instruments and hedging activities. SFAS No. 133 is effective for the Company's first quarter financial statements in fiscal 2000. The Company is currently not involved in derivative instruments or hedging activities and, therefore, will measure the impact of this statement as it becomes necessary. The Company does not expect that the adoption of the above standards will have a significant impact on its consolidated results of operation, finan- cial position or cash flows. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following table sets forth selected operating data as a percentage of total revenues for the periods indicated. All information is derived from the accompanying condensed consolidated statements of operations. 13-Week Period 14-Week Period Ended 9/28/97 Ended 10/4/98 -------------- -------------- Revenues................................... 100.0% 100.0% Costs and expenses: Cost of sales......................... 25.3 27.5 Operating expenses.................... 54.7 57.5 General and administrative............ 8.7 8.3 Depreciation and amortization......... 5.8 5.5 ----- ----- Total costs and expenses......... 94.5 98.8 ----- ----- Income from operations..................... 5.5 1.2 Net interest expense....................... 0.6 0.5 ----- ----- Income before income taxes................. 4.9 0.7 Income tax expense......................... 1.7 0.1 ----- ----- Net income................................. 3.2% 0.6% ===== ===== Results of Operations - - --------------------- Difference in Length of Fiscal Quarters --------------------------------------- The Company reports on a fiscal year that ends on the Sunday nearest July 1. Accordingly, the current fiscal year will end July 4, 1999. Management has chosen to add the additional week to the first quarter, thereby making it a 14-week period ending on October 4, 1998. The first quarter last year was comprised of the 13-week period ended September 28, 1997. The comparative discussions below compare the current 14-week period to the prior year 13-week period. - 7 - Revenues - - -------- Revenues increased $1.6 million, or 10.2%, during the quarter ended October 4, 1998 in comparison to the same quarter in the preceding year. This increase is attributable in part to the incremental sales of the two new Spaghetti Warehouse Italian Grill ("Italian Grill") units located in Mesquite and Irving, Texas, as well as the incremental sales resulting from the additional week in fiscal 1999. These increases were partially offset by a 3.0% decline in same-store sales (stores open the full quarter in both fiscal years). First quarter same-store sales in the Company's traditional Spaghetti Warehouse units declined 5.5% while the Company's repositioned Italian Grill units same-store sales declined 1.6% from the corresponding period last year. The decline in overall same-store sales was the result of a 2.8% decline in customer counts coupled with a 0.2% check average decrease. Management believes that same-store customer counts were negatively affected by the continued growth of casual dining competitors and by some temporary store closures this year as a result of severe weather in certain markets. The decrease in check averages is partially attributed to various operational initiatives instituted during the first quarter of fiscal 1999 aimed at improving long-term customer counts. These initiatives included the promotion of low-priced spaghetti entrees in the current quarter, the implementation of new menus focused on value and a test of reduced-price menus in selected units. Costs and Expenses - - ------------------ Cost of Sales ------------- Cost of sales as a percentage of total revenues was 27.5% for the current quarter as compared to 25.3% for the same quarter last year. The current quarter increase is largely attributable to the conversion, over the past year, of eleven existing units to the Italian Grill format since these units have higher cost of sales as a percentage of revenues than traditional units. Additionally, various initiatives to upgrade food quality instituted in the first quarter, including changes in certain suppliers, recipes and a change in bread service procedures, also contributed to the increase in the cost of sales as a percentage of total revenues in the current quarter. Due to the higher food costs associated with the Italian Grill, management anticipates that current year percentages will continue to exceed those of prior periods due to the increased number of Italian Grill units. Operating Expenses ------------------ Operating expenses as a percentage of total revenues were 57.5% for the current quarter as compared to 54.7% for the same quarter last year. The increase in operating expenses as a percentage of revenues was attributable to increases in hourly labor costs, repair and maintenance costs, direct costs and marketing expenses. Some of the increase in labor and direct costs is attributable to the conversion of two units to the Grill format this year compared to one last year. Additionally, the fixed nature of certain management labor and occupancy costs relative to the decline in same-store sales, also contributed to the increase in operating expenses as a percentage of total revenues. These increases were somewhat offset by reductions in unemployment taxes and insurance costs in comparison to prior year. - 8 - General and Administrative Expenses (G&A) ----------------------------------------- G&A expenses as a percentage of total revenues were 8.3% for the current quarter as compared to 8.6% for the first quarter of fiscal 1998. This decrease is primarily attributable to a reduction in corporate employee costs. These decreases were partially offset by increases in legal fees over the same quarter last year and current quarter costs associated with the auction process involved in the solicitation of bids for the Company. Depreciation and Amortization (D&A) ----------------------------------- D&A as a percentage of total revenues was 5.5% for the current quarter as compared to 5.8% for the same quarter last year. Certain information system equipment items becoming fully depreciated contributed to the decline from the same period in the prior year. This decline was partially offset by increased depreciation expense and pre-opening cost amortization for the two new units in Mesquite and Irving, Texas. Net Interest Expense - - -------------------- Net interest expense decreased from $89,145 during the first quarter of fiscal 1998 to $85,059 during the current quarter. This decline is attributable to the decreased average debt outstanding under the Company's credit facilities in comparison to the same quarter last year. Income Taxes - - ------------ The Company's effective tax rate in the current quarter was 15.2% as compared to 35.3% in the same quarter last year. The decline in the current quarter's effective tax rate is attributable to a higher proportion of consolidated pre-tax earnings generated by the Company's Canadian operations in fiscal 1999 as compared to fiscal 1998. These Canadian earnings are taxed at a lower rate than the U.S. statutory rate thereby reducing the Company's overall effective tax rate. Liquidity and Capital Resources - - ------------------------------- The Company's working capital deficit increased from $3.5 million at June 28, 1998 to $3.7 million on October 4, 1998. The increase is primarily attributable to an increase in the amount of current debt outstanding in the current year as compared to the prior year. The Company is currently operating with a working capital deficit, which is common in the restaurant industry since restaurant companies do not normally require significant investment in either accounts receivable or inventory. Net cash provided by operating activities was $0.5 million during the current quarter as compared to $1.1 million during the same period last year. This decrease is attributable to the decline in net income in the current year as compared to the prior year. Long-term debt outstanding on October 4, 1998 consisted of amounts borrowed under the Company's existing bank credit facility including a $5.0 million fixed rate term loan and $1.4 million borrowed against its floating rate revolving credit facility. The Company had an additional $3.6 million available under this revolving credit facility on October 4, 1998. - 9 - Capital expenditures were $1.6 million for the quarter ended October 4, 1998 as compared to $0.8 million for the same period last year. Current year expenditures relate primarily to the purchase of the Corpus Christi, Texas, unit, the conversion of two traditional Spaghetti Warehouse restaurants to the Italian Grill format and the normal purchase of replacement restaurant equipment and decor. The Company plans to complete construction of its Corpus Christi unit, convert certain additional units to the Italian Grill format, open up to one additional new Italian Grill unit and to continue to make necessary replacements and upgrades to existing restaurants and information systems during the next 12 months. Total planned capital expenditures relating to all projects during the next 12 months are approximately $3.0 million. Cash flow from operations, current cash balances and amounts available under the Company's revolving credit facility are expected to be sufficient to fund planned capital expenditures and payment of required term loan maturities for the next 12 months. Year 2000 Compliance - - -------------------- In the past, a number of computer software programs were written using two digits rather than four to determine the applicable year. As a result, date-sensitive computer software may recognize a date using "00" as the year 1900 rather than the year 2000. This could result in major system failures or miscalculations, and is generally referred to as the "Year 2000" problem. An extensive review of the Company's information systems has been completed and a comprehensive program is currently in process to modify or replace those systems that are not Year 2000 compliant. Management believes that all Company systems are compliant, or will be compliant by June 1999. Additional validation of the Company's systems will be conducted through testing throughout 1999. In addition to the assessment of in-house systems, the Company is currently assessing the readiness of its vendors for the Year 2000 issue. To determine the status of third parties, letters inquiring as to their readiness have been sent to substantially all of the Company's vendors. The Company is currently assessing the vendors' responses and prioritizing them in order of significance to the business of the Company. Contingency plans will be developed in the event that business-critical vendors d not provide the Company with satisfactory evidence of their readiness to handle Year 2000 issues. The Company intends to make every reasonable effort to assess the Year 2000 readiness of these critical partners and to create action plans to address the identified risks. The Company anticipates that it will have substantially completed an assessment of the Year 2000 compliance status of all information technology and non-information technology by December 31, 1998, and will then address the Year 2000 compliance of such equipment. All maintenance and modification costs will be expensed as incurred, while the cost of new software, if material, is being capitalized and depreciated over its expected useful life. The Company expects to incur total costs of approximately $275,000 related to the replacement and remediation of the Company's systems. Of these costs, approximately $216,000 was incurred through - 10 - October 4, 1998, with the remaining $59,000 to be incurred during the remainder of fiscal 1999 and in fiscal 2000. All estimated costs have been budgeted and are expected to be funded by cash flows from operations. The Company does not believe the costs related to the Year 2000 compliance project will be material to its financial position or results of operations. However, the cost of the project and the date on which the Company plans to complete the Year 2000 modifications are based on management's best estimates, which were derived utilizing numerous assumptions of future events including the continued availability of certain resources, third party modification plan, and other factors. Unanticipated failures by critical vendors as well as the failure by the Company to execute its own remediation efforts could have a material adverse effect on the cost of the project and its completion date. As a result, there can be no assurance that these forward-looking estimates will be achieved and the actual cost and vendor compliance could differ materially from those plans, resulting in material financial risk. Forward-Looking Information - - --------------------------- Statements contained in this Form 10-Q that are not historical facts, including, but not limited to, statements found in this Item 2, Management's Discussion and Analysis of Financial Condition and Results of Operations, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. The actual results of the future events described in such forward-looking statements in this Form 10-Q could differ materially from those stated in such forward-looking statements. The following factors, among others, could cause actual results to differ materially: adverse retail industry conditions, industry competition and other competitive factors, government regulation and possible future litigation, seasonality of business, as well as the risks and uncertainties discussed in this Form 10-Q. - 11 - PART II - OTHER INFORMATION ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS The Company held its annual meeting of shareholders on October 27, 1998. At such meeting the shareholders elected directors of the Company as follows: Name of Nominee For Against Withheld - - --------------- --- ------- -------- Robert R. Hawk 4,826,786 338,636 0 C. Cleave Buchanan, Jr. 4,845,633 319,789 0 Frank Cuellar, Jr. 4,854,833 310,589 0 John T. Ellis 4,853,241 312,181 0 Peter Hnatiw 4,855,233 310,189 0 James F. Moore 4,852,541 312,881 0 Cynthia I. Pharr 4,855,733 309,689 0 William B. Rea, Jr. 4,830,875 334,547 0 ITEM 6. EXHIBITS Exhibit Number Document Description ------- -------------------- 27.1 Financial Data Schedule - 12- SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Spaghetti Warehouse, Inc. Dated: November 17, 1998 By: /s/Robert R. Hawk ----------------- ----------------- Robert R. Hawk Chairman and Chief Executive Officer Dated: November 17, 1998 By: /s/Robert E. Bodnar ----------------- ------------------- Robert E. Bodnar Chief Financial Officer - 13 - EX-27 2 FDS -- SPAGHETTI WAREHOUSE, INC.
5 Financial Data Schedule for Spaghetti Warehouse, Inc. - This schedule contains summary financial information extracted from the accompanying condensed consolidated financial statements and is qualified in its entirety by reference to such financial statements. 0000775298 Spaghetti Warehouse, Inc. 1 U.S. Dollars 3-MOS JUL-4-1999 JUN-29-1998 OCT-4-1998 1 916,237 0 734,478 0 648,773 2,587,702 78,873,683 30,268,007 58,527,635 6,489,362 4,522,949 0 0 67,466 47,277,592 58,527,635 17,213,997 17,579,893 4,840,262 14,949,675 2,422,008 0 85,059 123,151 18,745 104,406 0 0 0 104,406 .02 .02
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