-----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,
AWRzMSfD0UJv7RzK5mvrJKFeDiqk3ClEd7V9wGmTNbmDdleu2nXnV96hR+/ZzKNw
8EPQMPKsgYgMp7iNofLPVw==
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) March
21, 2003
Eateries, Inc. (Exact name of registrant as specified in its charter) Oklahoma
0-14968
73-123048 (State of other jurisdiction
(Commission
(IRS Employer of incorporation)
File Number)
Identification No.) 1220 S. Santa Fe Avenue, Edmond Oklahoma
73003 (Address of principal executive offices)
(Zip Code) Registrants telephone number, including area code
405-705-5000
Not Applicable
(Former name or former address, if changed since last report.) Item 1. Eateries, Inc. Reports Year End Results Garcias Sale Results in non-cash loss of $7,908,000 EBITDA before One-Time Charges Increases $393,000 Oklahoma City, Oklahoma, March
Due to the sale of Garcias, Company revenues decreased to $96,254,000 or 3.2% in 2002 from $99,483,000 in 2001. However, system-wide sales for the fiscal year ended December 29, 2002 increased $773,000 or 0.7% to $108,648,000 from $107,875,000 for the same period ending December 30, 2001. The increase is a result of the Companys continuing success and growth of its Garfields franchise program. Again as a result of the disposition of 14 restaurants, Company revenues for the Fourth-quarter of 2002 were $24,487,000, a decrease of 7.3% versus the $26,403,000 in the same quarter of 2001. Likewise, system-wide sales (including all franchised locations) decreased ($553,000) or 1.9% to $28,191,000 for the Fourth-quarter of 2002 compared to $28,744,000 for the same quarter of 2001.
The Companys Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") for 2002 decreased to $632,000 versus $4,147,000 in 2001. Fourth quarter EBITDA decreased to ($3,037,000) versus $1,890,000 for the same period in 2001. However, EBITDA before one-time charges from disposals of assets and SFAS 121 impairment for 2002 increased $393,000 or 8.8% to $4,878,000 from $4,485,000 in 2001.
"Having won our lawsuit against J.R. Simplot, resulting in an $8.9 million judgment (currently in appeal) from the food contamination for which J.R. Simplot Company admitted liability, management decided to dispose of Garcias and incur the $8.5 million in losses. J.R. Simplot Company has already paid Eateries Inc. $516,000 for attorneys fees and costs related to the trial as part of the $8.9 million judgment. The reimbursement for attorney fees and expenses had been included in accounts receivable at year-end 2001. No other amounts related to the judgment have been received or are reflected in the Companys financial statements" said Orza.
"We are now able to focus on Garfields without distraction. Despite the nations sluggish economy, Company owned Garfields same store sales increased .5% in 2002. Our current franchisees opened five new locations in 2002 and we have begun development of eight additional units (5 franchise and 3 Company) in 2003. We also hope to announce the signing of a number of new franchise partners in 2003" said Orza.
Continuing franchise royalties from Garfields increased to $440,000 in 2002 from $311,000 in 2001, an increase of 41.5%. System-wide Garfields sales increased $4,397,000 or 5.6% to $82,313,000 from $77,916,000 in the prior year. Continuing franchise royalties from Garfields increased to $131,000 in the fourth quarter 2002 from $77,000 in same quarter in 2001, an increase of 70.1%. System-wide Garfields sales increased $1,054,000 or 4.8% to $22,879,000 from $21,825,000 in the same quarter of 2001.
Eateries, Inc. owns, operates, franchises and licenses 63 restaurants under the names of Garfields Restaurant and Pub, Garcias Mexican Restaurants and Pepperoni Grill and Italian Bistro Restaurants in 19 states. For additional information, contact James M. Burke or Bradley L. Grow at 1220 S. Santa Fe Ave., Edmond, Oklahoma, 73003 or call 405.705.5000 or FAX: 405.705.5001.
From time to time, the Company may publish forward-looking statements relating to certain matters including anticipated financial performance, business prospects, the future opening of Company-owned and franchised restaurants, anticipated capital expenditures, and other matters. All statements other than statements of historical fact contained in this press release or in any other report of the Company are forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. In order to comply with the terms of that safe harbor, the Company notes that a variety of factors, individually or in the aggregate, could cause the Companys actual results and experience to differ materially from the anticipated results or other expectations expressed in the Companys forward-looking statements including, without limitation, consumer spending trends and habits; competition in the casual dining restaurant segment; weather conditions in the Companys operating regions; laws and government regulations; general business and economic conditions; availability of capital; success of operating initiatives and marketing and promotional efforts; and changes in accounting policies. In addition, the Company disclaims any intent or obligation to update those forward-looking statements.
EATERIES, INC. SUMMARY FINANCIAL DATA ($ AMOUNTS IN THOUSANDS EXCEPT PER SHARE AMOUNTS) (UNAUDITED) |
|||||||||||||||
STATEMENT OF INCOME: | THIRTEEN WEEKS ENDED |
FIFTY-TWO WEEKS ENDED | |||||||||||||
December 29, 2002 |
December 30, 2001 |
December 29, 2002 |
December 30, 2001 |
||||||||||||
$ |
% |
$ |
% |
$ |
% |
$ |
% |
||||||||
REVENUES: | |||||||||||||||
RESTAURANT SALES | $24,195 |
98.8% |
$26,278 |
99.5% |
$95,167 |
98.9% |
$98,324 |
98.8% |
|||||||
FRANCHISE FEES AND ROYALTIES | 197 |
0.8% |
80 |
0.3% |
621 |
0.6% |
541 |
0.5% |
|||||||
OTHER INCOME | 95 |
0.4% |
45 |
0.2% |
465 |
0.5% |
618 |
0.6% |
|||||||
24,487 |
100.0% |
26,403 |
100.0% |
96,254 |
100.0% |
99,483 |
100.0% |
||||||||
COSTS AND EXPENSES: | |||||||||||||||
FOOD AND BEVERAGE SALES (1) | 6,592 |
27.2% |
6,986 |
26.6% |
25,784 |
27.1% |
26,845 |
27.3% |
|||||||
RESTAURANT OPERATING EXPENSES (1) | 14,722 |
60.8% |
15,518 |
59.1% |
59,778 |
62.8% |
61,725 |
62.8% |
|||||||
PRE-OPENING COSTS (1) | --- |
0.0% |
163 |
0.6% |
--- |
0.0% |
592 |
0.6% |
|||||||
GENERAL AND ADMINISTRATIVE EXPENSES | 1,571 |
6.4% |
1,507 |
5.7% |
5,814 |
6.0% |
5,835 |
5.9% |
|||||||
LOSS ON DISPOSAL OF ASSETS | 2,504 |
10.2% |
339 |
1.3% |
2,110 |
2.2% |
339 |
0.3% |
|||||||
SFAS 121 WRITE OFFS | 2,135 |
8.7% |
--- |
0.0% |
2,135 |
||||||||||
DEPRECIATION AND AMORTIZATION (1) | 1,104 |
4.6% |
1,105 |
4.2% |
4,183 |
4.4% |
4,245 |
4.3% |
|||||||
INTEREST EXPENSE | 157 |
0.6% |
219 |
0.8% |
706 |
0.7% |
986 |
1.0% |
|||||||
28,785 |
117.6% |
25,837 |
97.9% |
105,511 |
104.4% |
100,567 |
101.1% | ||||||||
INCOME (LOSS) BEFORE INCOME TAXES | (4,298) |
(17.6%) |
566 |
2.1% |
(4,257) |
(4.4%) |
(1,084) |
(1.1%) |
|||||||
PROVISION (BENEFIT) FOR INCOME TAXES | 2,058 |
8.4% |
136 |
0.5% |
2,070 |
2.2% |
(407) |
(0.4%) |
|||||||
NET INCOME | $(6,356) |
(26.0%) |
$430 |
1.6% |
$(6,327) |
(6.6%) |
$(677) |
(0.7%) |
|||||||
BASIC EARNINGS PER SHARE | $(2.13) |
$0.15 |
$(2.12) |
$(0.23) |
|||||||||||
DILUTED EARNINGS PER SHARE | $(2.13) |
$0.12 |
$(2.12) |
$(0.23) |
|||||||||||
EARNINGS BEFORE INTEREST, TAXES DEPRECIATION AND AMORTIZATION (EBITDA) |
$(3,037) |
$1,890 |
$632 |
$4,147 |
|||||||||||
RESTAURANTS OPEN AT END OF PERIOD |
|||||||||||||||
COMPANY |
53 |
67 |
53 |
67 |
|||||||||||
FRANCHISE |
11 |
7 |
11 |
7 |
|||||||||||
TOTAL SYSTEM-WIDE RESTAURANTS |
64 |
74 |
64 |
74 |
|||||||||||
SYSTEM-WIDE RESTAURANT SALES |
$28,191 |
$28,744 |
$108,648 |
$107,875 |
|||||||||||
(1) PERCENTAGES BASED UPON RESTAURANT SALES; ALL OTHERS ON TOTAL REVENUES. |