Chart House Posts Second Quarter Results; 3% Same Store Sales Increase
CHICAGO--(BUSINESS WIRE) July 21, 1999--Chart House Enterprises, Inc. (NYSE:CHT) announced net income for the second quarter ended June 28, 1999 of $1,546,000, or $.13 per share on revenues of $37.3 million. Included in the results for this quarter are gains on the disposition of closed restaurants totaling $742,000, or $.06 per share. For the same quarter last year, the Company reported net income of $248,000, or $.02 per share, on revenues of $38.5 million.
Same store sales for the quarter were up just over 3%. Total revenues for the quarter decreased primarily as a result of closing previously under-performing restaurants and the disposition of the Solana Beach Baking Company. The results for this quarter, as in previous quarters, were negatively affected by strategic initiatives implemented by management in order to invest in the long-term revitalization of the Chart House concept. The initiatives involve transition costs associated with the new menu rollout, which was substantially completed during the second quarter of this year.
"I am pleased to have sales momentum begin to build and the results start to reflect the positive impact of the completed remodels, rollout of the new menu and dedication of our team" said Tom Walters, President and CEO of Chart House Enterprises, Inc. "With the new menu rollout completed, the total focus of the restaurants will continue to be outstanding customer service and flawless execution of the new menu."
Net income for the twenty-six week period ended June 28, 1999 was $1,670,000, or $.14 per share, on revenues of $72 million. Included in the year to date results are gains on the disposition of closed restaurants totaling $742,000, or $.06 per share. For the same period of last year, the Company reported net income of $1,024,000, or $.09 per share, on revenues of $75.7 million.
Headquartered in Chicago, Chart House Enterprises, Inc. currently operates 54 restaurants in the continental United States, the U.S. Virgin Islands and Hawaii. They include the California-inspired Chart House Restaurants, known for great seafood, spectacular locations, and breathtaking views, the South Pacific-inspired Peohe's Restaurant located in Coronado, California and Angelo and Maxie's, a popular New York steakhouse in Manhattan.
Certain of the statements contained in this press release may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include financial projections, estimates and statements regarding plans, objectives and expectations of the Company and its management. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Information on significant potential risks and uncertainties is set forth more fully in the Company's filings with the Securities and Exchange Commission, including quarterly reports on Form 10-Q, reports on Form 8-K and annual reports on Form 10-K.
CHART HOUSE ENTERPRISES, INC.
SECOND QUARTER YEAR TO DATE RESULTS OF OPERATIONS
(In Thousands, Except Per Share Data)
Twenty-Six Weeks Twenty-Six Weeks
Ended Ended
June 28, 1999 June 29, 1998
(Unaudited) (Unaudited)
Revenues $ 71,960 $ 75,674
Costs and Expenses:
Cost of Sales 22,909 24,129
Restaurant Labor 21,462 20,804
Other Operating Costs 16,059 17,767
Selling, General & Administrative
Expenses 6,128 7,437
Depreciation and Amortization 3,871 3,644
(Gain) Loss on Sales of Assets (742) 19
Interest Expense (net) 603 389
----------- ----------
Total Costs and Expenses 70,290 74,189
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Income Before Income Taxes 1,670 1,485
Provision for Income Taxes - 461
----------- ----------
Net Income $ 1,670 $ 1,024
=========== ==========
Net Income Per Common Share $ 0.14 $ 0.09
-Basic and Diluted =========== ============
Weighted Average Shares
Outstanding 11,763 11,729
=========== ============
CHART HOUSE ENTERPRISES, INC.
SECOND QUARTER RESULTS OF OPERATIONS
(In Thousands, Except Per Share Data)
Thirteen Weeks Thirteen Weeks
Ended June 28, 1999 Ended June 29, 1998
(Unaudited) (Unaudited)
Revenues $ 37,329 $ 38,522
Costs and Expenses:
Cost of Sales 11,810 12,172
Restaurant Labor 11,056 10,782
Other Operating Costs 8,155 9,351
Selling, General &
Administrative Expenses 3,142 3,851
Depreciation and Amortization 2,034 1,821
(Gain) Loss on Sales of Assets (742) 7
Interest Expense (net) 328 178
---------- ----------
Total Costs and Expenses 35,783 38,162
---------- ----------
Income Before Income Taxes 1,546 360
Provision for Income Taxes - 112
---------- ----------
Net Income $ 1,546 $ 248
========== ==========
Net Income Per Common Share
Basic and Diluted
$ 0.13 $ 0.02
========== ==========
Weighted Average Shares
Outstanding 11,763 11,730
========== ==========
CONTACT: Chart House Enterprises, Inc.
William M. Sullivan, 312/202-1924
