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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 Second Quarter Results
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For the quarter, Main Street Restaurant Group generated record revenues of $61.7 million, a 9% increase compared to the $56.6 million in revenue for the comparable period in 2004. |
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Main Street Restaurant Group, Inc. (NasdaqNM: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 second quarter ended June 27, 2005.
For the quarter, Main Street Restaurant Group generated record revenues of $61.7 million, a 9% increase compared to the $56.6 million in revenue for the comparable period in 2004. The sales gain was primarily due to higher customer traffic and a same-store sales increase of 10.8%, compared to negative same store sales of 1.6% for the second quarter of 2004.
For the second quarter, net income increased by 89% to $1.5 million, or $.09 per fully diluted share as compared to $.8 million (as restated), or $0.06 per fully diluted share in the same quarter last year.
The Company's operating cash flow, known as EBITDA, was $5.0 million for the three months ended June 27, 2005, as compared to $4.1 million in the second quarter last year. The computation of quarterly and year-to-date EBITDA can be found in Appendix A, attached to this press release.
On a year-to-date basis for the six months ended June 27, 2005, revenues were $123.1 million, an increase of 6.4% over the revenue of $115.6 million for the same period last year. Same store sales increased by 8.6%. Fully diluted earnings for the six month period were $0.19 per share on a higher share count versus $0.13 for the same period in 2004. EBITDA for the six months of 2005 was $10.0 million, nearly an 18% increase over the $8.5 million from the same period of 2004.
Bill Shrader, President and Chief Executive Officer, stated, "During the second quarter, we benefited from two successful promotions at our T.G.I. Friday's brand which helped drive double-digit same-store sales growth and record revenues. Our Bamboo Club restaurants also demonstrated encouraging trends, as customers were receptive to our three-course value meal offerings. On the cost side, we were able expand our operating margins for the period and we credit increased labor efficiencies and solid supply chain management. In addition, on the beverage side of our business, we increased prices and introduced our summer glass promotion late in the second quarter, with strong success. We look to continue this momentum in the second half of 2005 which should result in a second full year of profitability for our shareholders."
Michael Garnreiter, Chief Financial Officer, added, "Our strong second quarter results, coupled with our recent equity infusion, offers us the financial flexibility to restart our T.G.I. Friday's new restaurant development and remodel programs, while reducing our overall debt levels. We remain committed to this strategy, and ultimately, we believe it will lead to increased profitability and value for our shareholders going forward."
Recent Developments
On April 28, 2005, management announced that it closed on the sale of 2,325,581 shares of its common stock at $2.15 per share along with 581,395 warrants to purchase shares at $3.01 per share to Dallas-based CIC Partners LP, a private equity fund. The proceeds before expenses were approximately $5.0 million, are earmarked to reduce debt and fund future T.G.I. Friday's development.
On May 23, 2005, the Company announced that its Board of Directors adopted a Stockholder Rights Plan whereby the Company will make a dividend distribution of one Preferred Share Purchase Right for each outstanding share of the Company's common stock held by stockholders of record as of the close of business on May 31, 2005. The Rights are exercisable only if a person or group acquires 15% or more of the Company's common stock, and thus becomes an "Acquiring Person" under the Plan. Upon any such occurrence, each Right will entitle its holder to purchase a number of shares of Main Street Restaurant Group's common stock having a market value of twice the exercise price.
On June 13, 2005, Main Street Restaurant Group announced that its board of directors elected Michael Rawlings as a director. Rawlings, a principal and general partner of Dallas-based CIC Partners LP, a middle-market private equity firm, previously served as president of Pizza Hut from 1997 to 2003, and prior thereto was CEO of Tracy-Locke Advertising where he spent 18 years.
During the second quarter, the Company continued construction of its newest T.G.I. Friday's located in Surprise, AZ, which opened in July, 2005. Main Street currently has three additional T.G.I. Friday's locations identified and expects to begin construction of all three sites in 2005. In addition, the company closed a Bamboo Club location in Newport, KY, during the quarter and re-acquired a Friday's in Omaha, NE, which we had previously sold.
Expectations
Based on management's current outlook for the full year 2005, we have increased our guidance for the full year. Same stores sales are expected to increase between 5% and 6% for the full year and we expect fully diluted net income per share (before one-time items, if any) to range from $0.21 to $0.23 and EBITDA between $16 to $18 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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