-----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, DYH+GD9c0FMQcBm/D6Rzq/dvyfCjUXJmJRtuxXAaC21k37O+rwIDNe9RxXA+lenP bcnYMmhRSgNju2Gks4VLeQ== 0000784539-96-000004.txt : 19960816 0000784539-96-000004.hdr.sgml : 19960816 ACCESSION NUMBER: 0000784539-96-000004 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960703 FILED AS OF DATE: 19960814 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: FAMILY STEAK HOUSES OF FLORIDA INC CENTRAL INDEX KEY: 0000784539 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-EATING PLACES [5812] IRS NUMBER: 592597349 STATE OF INCORPORATION: FL FISCAL YEAR END: 1228 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-14311 FILM NUMBER: 96612232 BUSINESS ADDRESS: STREET 1: 2113 FLORIDA BLVD STREET 2: STE A CITY: NEPTUNE BEACH STATE: FL ZIP: 32266 BUSINESS PHONE: 9042494197 MAIL ADDRESS: STREET 2: 2113 FLORIDA BLVD STE A CITY: NEPTUNE BEACH STATE: FL ZIP: 32266 10-Q 1 August 14, 1996 OFIS Filer Support SEC Operations Center 6842 General Green Way Alexandria, VA 22312-2413 Dear Sirs: Pursuant to regulations of the Securities and Exchange Commission, submitted herewith for filing on behalf of Family Steak Houses of Florida, Inc. is the Company's Quarterly Report on Form 10-Q for the Fiscal Quarter ended July 3, 1996. This filing is being effected by direct transmission to the Commission's Edgar System. Very truly yours, Edward B. Alexander Secretary/Treasurer UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarter ended July 3, 1996 Commission File No. 0-14311 FAMILY STEAK HOUSES OF FLORIDA, INC. Incorporated under the laws of IRS Employer Identification Florida No. 59-2597349 2113 FLORIDA BOULEVARD NEPTUNE BEACH, FLORIDA 32266 Registrant's Telephone No. (904) 249-4197 Indicate by check mark whether the registrant 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_____ Title of each class Number of shares outstanding Common Stock 10,893,200 $.01 par value As of August 5, 1996 FAMILY STEAK HOUSES OF FLORIDA, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS July 3, 1996 (Unaudited) Note 1. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and the instructions to Form 10-Q, and do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the results for the interim periods have been included. Operating results for the thirteen and twenty-six week periods ended July 3, 1996 are not necessarily indicative of the results that may be expected for the fiscal year ending January 1, 1997. Effective January 4, 1996 the Company adopted Statement of Financing Accounting Standards No. 121 "Accounting For The Impairment of Long Lived Assets and For Long Lived Assets To Be Disposed Of". The adoption of this statement did not have a material effect on the consolidated financial statements. For further information, refer to the financial statements and footnotes included in the Company's Annual Report on Form 10-K for the fiscal year ended January 3, 1996. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany profits, transactions and balances have been eliminated. Note 2. Earnings Per Share Earnings per share for the thirteen and twenty-six weeks ended July 3, 1996 and June 28, 1995 were computed based on the weighted average number of common and common equivalent shares outstanding. Common equivalent shares are represented by shares under option and stock warrants. Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Results of Operations Quarter Ended July 3, 1996 versus June 28, 1995 The Company experienced a decrease in sales during the second thirteen weeks of 1996 as compared to the same period in 1995. Second quarter same-store sales decreased to $9,815,100 from $11,034,200 for the same period in 1995. Management believes that the decrease in same-store sales is primarily due to the effects of increasing competition, including several new or remodeled restaurants opened by competitors in areas close to Company restaurants. Management is seeking to improve sales trends by focusing on improved restaurant operations, increasing marketing expenditures, and devising competitive strategies to offset the effects of new competition. Historically, the third and fourth quarters of each fiscal year are less profitable for the Company than the first and second quarters. If year-to-date sales trends continue, it is possible that the Company will incur losses in the third and/or fourth quarters. The costs and expenses of the Company's restaurants include food and beverage, payroll and benefits, depreciation and amortization, repairs, maintenance, utilities, supplies, advertising, insurance, property taxes and rents. The Company's food, beverage, payroll and benefit costs are believed to be higher than the industry average as a percentage of sales as a result of the Company's philosophy of providing customers with high value of food and service for every dollar a customer spends. In total, food and beverage, payroll and benefits, depreciation and amortization and other operating expenses as a percentage of sales increased to 86.4% in the second quarter of 1996, from 84.9% in the same quarter of 1995, primarily due to an increase in payroll and benefits costs as a percentage of sales. Food and beverage costs as a percentage of sales decreased to 39.0% in the second quarter of 1996 from 39.6% in the same period of 1995, primarily due to lower beef costs and increased funding received under the Company's soft-drink purchase contract in 1996. Payroll and benefits as a percentage of sales increased to 27.6% in the second quarter of 1996 from 26.3% in the same quarter of 1995, primarily due to the decrease in same-store sales, which resulted in reduced efficiencies in labor scheduling. Other operating expenses as a percentage of sales increased to 15.6% in the second quarter of 1996 from 15.0% in 1995, primarily due to higher utilities costs as a percentage of sales. Depreciation and amortization increased as a percentage of sales in the second quarter of 1996 compared to 1995, as a result of the decline in same-store sales. General and administrative expenses as a percentage of sales were 5.9% in the second quarter of 1996, compared to 5.8% in the same quarter of 1995. Interest expense decreased from $414,800 during the second quarter of 1995 to $384,500 in 1996. The decrease was due primarily to lower outstanding principal balances, resulting from principal payments made throughout the last twelve months. The effective income tax rates for the quarters ended July 3, 1996 and June 28, 1995 were 0% and 17.8%, respectively. The rate of 0% for the second quarter of 1996 is a result of management's belief that the tax provision of $87,000 provided in the first quarter of 1996 will be sufficient to satisfy the necessary tax provision for the entire year. Net earnings for the second quarter of 1996 were $192,300, compared to $308,200 in 1995. Earnings per share were $.02 for 1996, compared to $.03 in 1995. Six Months Ended July 3, 1996 versus June 28, 1995 For the six months ended July 3, 1996, total sales decreased 9.8% compared to the same period of 1995, primarily due to increased competition. Food and beverage costs for the six month period ended July 3, 1996 was 39.5%, compared to 39.4% for the same period in 1995. Payroll and benefits increased from 26.0% in 1995 to 27.2% in 1996. The increase was primarily due to the decrease in same-store sales, which resulted in decreased efficiencies in labor scheduling. For the six months ended July 3, 1996, other operating expenses increased to 15.6% from 14.3% in 1995, primarily due to increased utilities costs and increased repair and maintenance costs as a percentage of sales. Depreciation and amortization increased as a percentage of sales for the six month period ended July 3, 1996, compared to the same period of 1995, due to the decline in same-store sales. For the six months ended July 3, 1996, general and administrative expenses decreased to 5.5% of sales from 5.6% for the same period in 1995. Interest expense decreased for the first six months of 1996 to $775,500 from $864,500 for the same period in 1995, due to reduced principal balances. The effective income tax rates for the six-month periods ended July 3, 1996 and June 28, 1995 were 16.1% and 16.0% respectively. Net earnings for the six months ended July 3, 1996 were $453,400 or $.04 per share, compared to net earnings of $886,800, or $.08 per share for the same period in 1995. The Company's operations are subject to some seasonal fluctuations. Revenues per restaurant generally increase from January through April and decline from September through December. Operating results for the quarter ended July 3, 1996 are not necessarily indicative of the results that may be expected for the fiscal year ending January 1, 1997. Recent Developments In April 1996, the Company signed a letter of intent to purchase land on which the Company intends to construct a Ryan's restaurant. The purchase of the property is contingent upon the Company's ability to obtain building permits for the construction. The Company believes the permits will be obtained in the third quarter of 1996 and that the new restaurant will be completed and become operational in the fourth quarter of 1996. The Company currently has a commitment from a lender to finance the restaurant using sales-leaseback financing. Liquidity and Capital Resources Substantially all of the Company's revenues are derived from cash sales. Inventories are purchased on credit and are converted rapidly to cash. Therefore, the Company does not carry significant receivables or inventories. As a result, working capital requirements for continuing operations are not significant. At July 3, 1996, the Company had a working capital deficit of $2,382,000, compared to a working capital deficit of $3,284,900 at January 3, 1996. The decrease in the working capital deficit during the first six months in 1996 was due primarily to proceeds from the sale of a building previously owned by the Company's Wrangler's Roadhouse subsidiary and to net earnings generated in the first six months of 1996. Cash provided by operating activities increased 11.4% to $1,769,500 in the first six months of 1996 from $1,589,000 in the same period of 1995. This increase is primarily due to reductions in accrued liabilities as a result of timing differences in payments which occurred in 1995. The Company spent approximately $388,200 in the first six months of 1996 for restaurant renovation and equipment. Capital expenditures for 1996 and 1997, based on present costs and plans for expansion, are estimated to be $750,000 (not including the sales-leaseback financing for the new restaurant as discussed above) and $900,000 respectively. The Company projects that cash generated from operations will be sufficient to fund these improvements. In March 1995, the Company entered into an Amended and Restated Note Agreement, dated as of February 1, 1995, with The Travelers Insurance Company and certain of its affiliates (the "Note Agreement"), pursuant to which existing notes of the Company were renewed, amended and restated (as amended and restated, the "Notes"). In August 1995, the Note Agreement was sold to Cerberus Partners, L.P. The Notes are due May 30, 1998 and provide for an interest rate of 9.0% and principal payments of $65,000 per month. As of July 3, 1996, the outstanding balance due under the Notes was $11,217,800. The Note Agreement includes detachable Warrants for purchases of up to 1,750,000 shares of the Company's common stock at an exercise price of $.40 per share. The Notes are secured by second mortgages on twenty-two Company restaurant properties. The Note Agreement provides for various covenants including prepayment options, the maintenance of prescribed debt service coverages, limitations on the declaration of cash dividends, sale of assets, and certain other restrictions. Also in March 1995 the Company entered into an Amended and Restated Loan Agreement with The Daiwa Bank, Limited, and SouthTrust Bank of Alabama, National Association (the "Bank Loan") which extends the maturity date of the Bank Loan until May 30, 1998. The Bank Loan bears interest at prime rate plus 0.50%, with monthly principal payments of $41,250 beginning April 1, 1995 ($67,100 prior to April 1, 1995). The Bank Loan is secured by first mortgages on twenty-two of the Company's restaurant properties, and provides for various covenants substantially consistent with those of the Note Agreement. As of July 3, 1996, the outstanding balance under the Bank Loan was $3,915,500. Impact of Inflation Costs of food, beverage, and labor are the expenses most affected by inflation in the Company's business. Although inflation has not had a significant impact on the Company in the past, there can be no assurance that it will not in the future. A significant portion of the Company's employees are paid at the federally established statutory minimum wage. On August 8, 1996, President Clinton signed into law a bill which will raise the federally mandated minimum wage by $.50 per hour on October 1, 1996, and by an additional $.40 per hour on September 1, 1997. The Company will raise sales prices in order to offset the effect of higher payroll and benefit costs. Sales prices have not been increased to date in 1996, but were increased approximately 2.5% in 1995. PART II. OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS None ITEM 2. CHANGES IN SECURITIES None ITEM 3. DEFAULTS UPON SENIOR SECURITIES None ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS (a) On June 18, 1996, the Company held its annual meeting of shareholders to elect directors to serve for the upcoming year. (b) The following table sets forth the number of votes for and against each of the nominees for director. Nominee For Against Lewis E. Christman, Jr. 8,939,730 213,048 Robert J. Martin 8,929,858 222,960 Joseph M. Glickstein, Jr. 8,941,162 211,656 Richard M. Gray 8,940,312 212,506 All nominees for director were elected by the affirmative vote of a majority of the 9,152,818 shares of the Company's common stock represented in person or by proxy at the annual meeting of shareholders. (c) The following table sets forth the number of votes for, against or withheld, and number of abstentions and non- votes, regarding a proposal to change the Company's stock listing. For Against Abstain Non-Votes 8,177,195 377,848 116,871 480,904 (d) Not Applicable ITEM 5. OTHER INFORMATION None ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) The following exhibits are filed as part of this report on Form 10-Q, and this list comprises the Exhibit Index. No. Exhibit 10.01 Employment agreement between the Company and Robert J. Martin, dated as of June 20, 1996. 27.01 Financial Data Schedule. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. FAMILY STEAK HOUSES OF FLORIDA, INC. (Registrant) /s/ Lewis E. Christman Date: August 12, 1996 Lewis E. Christman, Jr. President and CEO /s/ Edward B. Alexander Date: August 12, 1996 Edward B. Alexander Secretary/Treasurer (Principal Financial and Accounting Officer) /s/ Michael J. Walters Date: August 12, 1996 Michael J. Walters Controller Exhibit 10.01 EMPLOYMENT AGREEMENT THIS EMPLOYMENT AGREEMENT (the "Agreement"), made and entered into as of this 20th day of June, 1996 by and between FAMILY STEAK HOUSES OF FLORIDA, INC., a corporation organized under the laws of the State of Florida (hereinafter referred to as the "Company") and ROBERT J. MARTIN (hereinafter referred to as "Employee"). W I T N E S S E T H: WHEREAS, Employee and the Company wish for Employee to serve in the position of Vice President of the Company; and WHEREAS, the Company and Employee have agreed upon an Employment Agreement and desire to reduce to writing its terms and conditions as hereinafter set forth, intending that this Employment Agreement will replace and supersede all prior agreements or understandings concerning Employee's employment. NOW, THEREFORE, in consideration of the premises, the parties hereto do hereby agree as follows: Section 1. Employment. Subject to the terms and conditions contained herein, the Company hereby employs Employee, effective upon the date hereof, as the Vice President of the Company and Employee hereby accepts such employment and agrees to devote his best efforts and as much time as may be necessary, during or after the regular working hours of the Company, to perform his duties hereunder. Section 2. Employment Duties. During the term of this Agreement, the Employee shall perform the duties typically performed by the Vice President of the Company, subject to direction of the President and Chief Executive Officer, according to such policies and procedures as may be adopted from time to time by the Board of Directors. The Employee shall report directly to the President and Chief Executive Officer. Section 3. Stock Option. In consideration of Employee's agreement to serve as Vice President, the Company may from time to time grant him options to acquire shares of the Company's common stock. The award of any options shall be evidenced by an agreement containing usual and customary provisions. In addition, Employee shall be entitled to receive the Stock Option previously granted under that certain Employment Agreement dated June 20, 1994. Section 4. Compensation 4.1 Salary. Employee shall receive a salary from the Company of Seventy Thousand Dollars ($70,000) per annum payable in semi-monthly installments, subject to increase at any time as determined by the Compensation Committee of the Board of Directors of the Company. 4.2 Reimbursement. Employee shall be entitled to receive bi-weekly reimbursement for, or seek direct payment by the Company of, such reasonable expenses incurred by Employee as are consistent with specific policies of the Company in the performance of his duties under this Agreement, provided that Employee accounts therefor in writing and that such expenses are ordinary and necessary business expenses of the Company for federal income tax purposes. 4.3 Vacation and Certain Fringe Benefits. Employee shall be entitled to reasonable paid vacation in accordance with the policies of the Company, and such other employee benefits as the Board may fix from time to time; provided, however, that, in the Employee's case, such employee benefits shall include comprehensive medical, hospitalization and disability insurance and other reasonable medical benefits in accordance with the policies of the Company, including the cost of an annual physical examination. Section 5. Term. 5.1 Duration. Unless sooner terminated in accordance with provisions for termination set forth under Subsections 5.2 or 5.3 below, this Agreement shall continue in full force and effect for a term ending on June 19, 1998, and shall thereafter renew for additional one year terms unless either party notifies the other at least 10 days prior to the end of any term. 5.2 Termination for Cause. This Agreement may be terminated for cause as follows: (a) At the election of the Company, upon Employee's breach of any material provision of this Agreement; (b) At the election of Employee, upon the Company's breach of any material provision of this Agreement; (c) Upon the death of Employee; (d) At the election of either party, upon the total disability of Employee to perform his normal duties for a period of one hundred eighty (180) consecutive days, but only after the Company provides ten (10) days' prior written notice to Employee; (e) At the election of the Company, upon the indictment of Employee or upon Employee entering a plea of guilty or nolo contendere to the alleged commission by Employee, as principal, accomplice or accessory, of a crime involving moral turpitude, or an act of fraud, embezzlement or dishonesty; or (f) At the election of the Company, upon the occurrence of gross or willful misconduct by Employee in the performance of his responsibilities hereunder during the course of employment. In the event that the Company or the Employee elects to terminate this Agreement because of a breach of any material provision hereof pursuant to paragraph (a) or (b) of this Subsection 5.2, respectively, the party electing to terminate this Agreement shall give at least fourteen (14) days written notice to the other party or its intention to terminate this Agreement, which notice shall specify the breach of this Agreement upon which such termination is based, and no such termination shall occur if the other party cures the breach so specified within said fourteen (14) day period, except that a party shall only have the opportunity to cure a breach of a material provision on two occasions and thereafter that party need not be given the opportunity to cure any further material breaches. All obligations of the Company under this Agreement, including obligations under the stock option agreement contained in Section 3 hereof, shall immediately cease upon termination of this Agreement by the Company for cause by the Company. 5.3 Termination Without Cause. Either party may terminate this Agreement without cause upon giving 30 days written notice to the other. If the Company elects to terminate this Agreement without cause, then the parties agree that Employee shall be entitled to receive, in a lump sum, the payments due him under Section 4.1 for the remaining term of this Agreement, which amount shall be in full satisfaction of any and all claims of Employee as a result of his employment by the Company. Should the Employee elect to terminate this Agreement without cause prior to the expiration hereof, then all obligations of the Company hereunder shall cease as of the date of termination. Section 6. Notice. All notices provided for herein shall be in writing and shall be deemed to be given when delivered in person or deposited in the United States Mail, first class, registered or certified, return receipt requested, with proper postage prepaid and addressed as follows: (a) If to the Company: Family Steak Houses of Florida, Inc. 2113 Florida Boulevard Neptune Beach, Florida 32266 (b) If to the Employee: Robert J. Martin 2113 Florida Boulevard Neptune Beach, Florida 32266 Section 7. Miscellaneous. 7.1 If any provision or any part of any provision of this Agreement is found not to be valid for any reason, such provision shall be entirely severable from, and shall have no effect upon the remainder of this Agreement. 7.2 This Agreement shall inure to the benefit of the Company, its successors and assigns, and be binding upon the Employee, his executor, administrator, heirs and personal representatives. 7.3 This Agreement may be modified only by written instrument signed by each of the parties hereto. 7.4 This Agreement shall be construed under and governed by the laws of the State of Florida. 7.5 Any failure of either party, on one or more occasions, to enforce and require the strict compliance with and performance of any of the terms and conditions of this Agreement shall not constitute a waiver of any such terms or conditions at any future time and shall not prevent such party from insisting on the strict compliance with and performance of such terms and conditions at any later time. 7.6 This Agreement comprises the entire agreement between the parties hereto with respect to the subject matter hereof and there are no agreements, undertakings, covenants or conditions concerning the subject matter hereof, whether oral or written, express or implied, that are not merged herein or superseded hereby. 7.7 The captions or headings of the Sections or other subdivisions hereof are inserted only as a matter of convenience or for reference and shall have no effect on the meaning of the provisions hereof. 7.8 All payments to be made or benefits to be provided hereunder by the Company shall be subject to reduction for any applicable payroll-related or withholding taxes. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written. FAMILY STEAK HOUSES OF FLORIDA, INC. By: Lewis E. Christman, Jr., President Attest: Edward B. Alexander, Secretary EMPLOYEE: Robert J. Martin Financial Statements
Sales $9,815,100 $11,034,200 Cost and expenses: Food and beverage 3,824,800 4,366,400 Payroll and benefits 2,712,300 2,904,300 Depreciation and amortization 413,200 440,600 Other operating expenses 1,531,900 1,655,100 General and administrative expenses 578,000 636,400 Franchise fees 294,200 331,000 Loss on disposition of equipment 1,700 27,000 Equity loss in joint venture -- 18,800 ------------ ------------ 9,356,100 10,379,600 Earnings from operations 459,000 654,600 Interest and other income 117,800 135,100 Interest expense (384,500) (414,800) ------------ ------------ Earnings before income taxes 192,300 374,900 Provision for income taxes -- 66,700 ------------ ------------ Net earnings $192,300 $308,200 ============ ============ Net earnings per common and equivalent share: $0.02 $0.03 ============ ============ Weighted average common shares and equivalents 12,011,000 11,794,000 ============ ============ See accompanying notes to consolidated financial statements.
Family Steak Houses of Florida, Inc. Consolidated Statements of Earnings (Unaudited) For The Six Months Ended ------------ ------------ July 3, June 28, 1996 1995 ------------ ------------ Sales $20,174,800 $22,376,300 Cost and expenses: Food and beverage 7,975,000 8,810,200 Payroll and benefits 5,495,600 5,821,300 Depreciation and amortization 838,500 881,200 Other operating expenses 3,056,800 3,208,200 General and administrative expenses 1,106,800 1,242,700 Franchise fees 604,800 671,300 Loss on disposition of equipment 20,300 52,000 Equity loss in joint venture -- 45,500 ------------ ------------ 19,097,800 20,732,400 Earnings from operations 1,077,000 1,643,900 Interest and other income 238,900 276,100 Interest expense (775,500) (864,500) ------------ ------------ Earnings before income taxes 540,400 1,055,500 Provision for income taxes 87,000 168,700 ------------ ------------ Net earnings $453,400 $886,800 ============ ============ Net earnings per common and equivalent share: $0.04 $0.08 ============ ============ Weighted average common shares and equivalents 12,062,000 11,448,000 ============ ============ See accompanying notes to consolidated financial statements.
Family Steak Houses of Florida, Inc. Consolidated Balance Sheets (Unaudited) July 3, January 3, 1996 1996 ------------ ------------ ASSETS Current assets: Cash and cash equivalents $1,464,400 $711,400 Investments 1,154,300 600,300 Receivables 61,000 73,900 Current portion of note and mortgages receivable 125,700 155,700 Inventories 238,100 247,400 Prepaids and other current assets 225,300 256,600 ------------ ------------ Total current assets 3,268,800 2,045,300 Note and mortgages receivable 1,140,600 1,262,700 Property and equipment: Land 9,089,200 9,342,200 Buildings and improvements 18,550,300 18,774,500 Equipment 12,060,800 11,940,900 ------------ ------------ 39,700,300 40,057,600 Accumulated depreciation (13,882,800) (13,220,900) ------------ ------------ Net property and equipment 25,817,500 26,836,700 Property held for resale 552,800 552,800 Other assets, principally deferred charges, net of accumulated amortization 510,600 562,200 ------------ ------------ $31,290,300 $31,259,700 ============ ============ Family Steak Houses of Florida, Inc. Consolidated Balance Sheets CONTINUED (Unaudited) July 3, January 3, LIABILITIES AND SHAREHOLDERS' EQUITY 1996 1996 ------------ ------------ Current liabilities: Accounts payable $1,479,800 $1,250,700 Accrued liabilities 2,561,600 2,494,100 Income taxes payable 29,400 5,400 Current portion of long-term debt 1,580,000 1,580,000 ------------ ------------ Total current liabilities 5,650,800 5,330,200 Long-term debt 13,658,300 14,420,400 Deferred revenue 49,900 49,400 ------------ ------------ Total liabilities 19,359,000 19,800,000 Commitments and contingencies Shareholders' equity: Preferred stock of $.01 par; authorized 10,000,000 shares; none issued -- -- Common stock of $.01 par; authorized 20,000,000 shares; outstanding 10,893,200 in 1996 and 10,845,000 shares in 1995 108,900 108,500 Additional paid-in capital 8,141,100 8,123,300 Retained earnings 3,681,300 3,227,900 ------------ ------------ Total shareholders' equity 11,931,300 11,459,700 ------------ ------------ $31,290,300 $31,259,700 ============ ============ See accompanying notes to consolidated financial statements.
Family Steak Houses of Florida, Inc. Consolidated Statements of Cash Flows (Unaudited) For the Six Months Ende ----------------------- July 3, June 28, 1996 1995 ----------- ----------- Operating activities: Net earnings $453,400 $886,800 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 838,500 881,200 Directors' fees in the form of stock options 10,000 20,000 Loss from joint venture -- 45,500 Amortization of loan discount 27,800 46,900 Amortization of loan fees 44,900 39,100 Loss on disposition of equipment 20,300 52,000 Decrease (increase) in: Receivables 12,900 (39,900) Income tax receivable -- 145,200 Inventories 9,300 33,500 Prepaids and other current assets 31,300 230,700 Other assets -- (272,300) Increase (decrease) in:. Accounts payable 229,100 299,600 Accrued liabilities 67,500 (719,600) Income taxes payable 24,000 -- Deferred revenue 500 91,500 Other non-current liabilities -- (151,200) ----------- ----------- Net cash provided by operating activities 1,769,500 1,589,000 Investing activities: Proceeds from sale of property and equipment 555,300 106,600 Proceeds from notes receivable 152,100 30,600 Net proceeds from sale of land held for resale -- 496,000 Proceeds from sale of investments -- 110,400 Purchase of investments (554,000) -- Capital expenditures (388,200) (1,757,000) ----------- ----------- Net cash used by investing activities (234,800) (1,013,400) Financing activities: Payments on long-term debt (789,900) (743,300) Proceeds from the issuance of common stock 8,200 1,200 ----------- ----------- Net cash used by financing activities (781,700) (742,100) Net increase (decrease) in cash and cash equivalents 753,000 (166,500) Cash and cash equivalents - beginning of period 711,400 1,603,100 ----------- ----------- Cash and cash equivalents - end of period $1,464,400 $1,436,600 =========== =========== Supplemental disclosures of cash flow information: Cash paid during the period for interest $704,300 $802,000 =========== =========== Cash paid during the period for income tax $38,000 $35,000 Non-cash transactions: =========== =========== Mortgage receivable as partial proceeds on property sale $835,000 $835,000 =========== =========== Warrants issued -- $81,000 =========== =========== Accrued interest reclassed to long-term debt -- $100,000 =========== =========== See accompanying notes to consolidated financial statements.
EX-27 2
5 The schedule contains summary information extracted from the Company's 1996 2nd quarter 10-Q and is qualified in its entirety by reference to such financial statements. 3-MOS 6-MOS JAN-01-1997 JAN-01-1997 JUL-03-1996 JUL-03-1996 1464400 1464400 1154300 1154300 186700 186700 0 0 238100 238100 3268800 3268800 39700300 39700300 13882800 13882800 31290300 31290300 5650800 5650800 0 0 0 0 0 0 108900 108900 11822400 11822400 31290300 31290300 9815100 20174800 9815100 20174800 3824800 7975000 9356100 19097800 0 0 0 0 384500 775500 192300 540400 0 87000 192300 453400 0 0 0 0 0 0 192300 453400 .02 .04 .02 .04 Represents investments in Certificates of Deposits with maturities of less than one year
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