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Restaurant Industry News
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Sunday June 11th, 2006 |
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Main Street Restaurant Group Inc. Announces Its 2005 First Quarter Results
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Main Street Restaurant Group Inc. (NASDAQ: MAIN), the world's largest franchisee of T.G.I. Friday's restaurants, the owner and operator of the Bamboo Club - Asian Bistro, the Redfish Seafood Grill and Bar, and Alice Cooper'stown restaurant concepts, today announced its operating results for the first quarter ended March 28, 2005. |
Click here for financial tables
For the quarter Main Street Restaurant Group generated record revenue of $61.4 million, a 4% increase compared with the revenue of $59.1 million for the comparable quarter in 2004. The sales increase was primarily due to a stronger economy and increased customer traffic. Same-store sales increased by 6.3% for the quarter compared with an increase of 5.0% for the comparable quarter in 2004.
For the first quarter, net income increased by 29% to approximately $1.5 million, or $0.10 per fully diluted share as compared to $1.1 million, or $0.08 per fully diluted share in the same quarter last year.
Our measure of operating cash flow, known as EBITDA, for the quarter was $5.1 million, also a quarterly record, as compared to $4.4 million in the first quarter last year. The computation of our quarterly EBITDA can be found in Appendix A, attached to this press release.
Bill Shrader, president and chief executive officer, stated, "We are pleased with the results of the quarter and credit a strong media strategy for the Friday's brand. These national spots, which ran frequently during the three-month period, featured our new value promotion, as well as our sizzling platters. As a complement to the media effort, we also focused on operations, where our company's supply chain group was able to sustain strong margins."
Michael Garnreiter, chief financial officer, added, "The economy was strong during the first quarter, which is a very important component of our financial progress. We are excited by our same store sales momentum and in spite of higher gasoline prices and rising interest rates, we remain optimistic. We are holding our G&A costs in line with our expectations and have seen a decrease in interest expense this quarter reflecting the progress of our plan to lower our debt level. The focus of managing our debt and staying on course with our Friday's development strategy will, we believe, reward our shareholders over the long run."
Recent Developments
In April 2005, the company completed a $5 million sale of its common stock to a private equity fund. The proceeds from the equity raise will allow for Main Street to continue reducing its debt level, and speed up the new restaurant development and remodel programs of our Friday's restaurants.
During the first quarter, Main Street began construction on its newest Friday's located in Surprise, Ariz. Management expects the restaurant to be open early in the third quarter 2005. Main Street currently has three additional Friday's locations identified and expects to begin construction on all three sites later in 2005. Also, the company has scheduled two locations for remodeling in 2005.
During the first quarter the company closed a Bamboo Club location in Aventura, Miami, Fla., and expects to close an additional Bamboo Club in Newport, Ky., in the second quarter. The costs to close and terminate the lease were accrued in a prior quarter.
Expectations
Based on management's current outlook for the full year 2005, same stores sales are expected to increase between 3% and 4%. Accordingly, fully diluted net income per share guidance (before any one-time writeoffs or other non-cash charges) is expected to range from $0.16 to $0.18, with EBITDA of $15 to $17 million.
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| Last: |
6.34 |
| Time: |
6/9/2006 3:40pm |
| Change: |
-0.01 |
| Opened: |
6.35 |
| Day: |
6.36 - 6.33 |
| Volume: |
24205 |
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