Creative Host Services, Inc. Announces Annual Results for 2000, Reports Improvements in EBIDTA, Operational Efficiencies, and Overall Financial Strength

Apr 18, 2001, 01:00 ET from Creative Host Services, Inc.

    SAN DIEGO, April 18 /PRNewswire/ -- Creative Host Services, Inc.
 (Nasdaq:   CHST) announced its results for the year ended December 31, 2000.
 For the year, Creative Host lost ($.01) per share on revenues of $23,725,859,
 versus a loss of ($579,758) or ($.18) per share on overall revenues of
 $18,178,951 in 1999.  In the fourth quarter, the Company took a one-time,
 non-cash interest expense of $352,941 related to the beneficial conversion
 feature of a Global Capital note.  Prior to that charge, the Company showed
 net income of $.05 per share or $284,613 for fiscal 2000.  In 1999 the Company
 had overall EBIDTA of $1,436,735.  In the year 2000 the Company reported
 EBITDA of $2,157,128.  For the fourth quarter of 2000, the Company reported a
 loss of ($252,906) or ($.04) versus an overall loss of ($495,520) or ($.15)
 for the fourth quarter 1999.  Again, net of the extemporaneous interest
 charges of $352,941, the Company showed positive results for the quarter.
     Operationally, Creative Host showed statistical improvements in many key
 categories.  Cost of goods sold, as a percentage of revenues for the year,
 were 31% of sales in 2000, versus 32% in 1999, a 1% improvement.  The company
 reported overall cost of goods sold in 2000, of $7,368,000 and $5,764,769 in
 1999.  Other key areas of improvement included a decrease in payroll expenses,
 as a percentage of revenues, from 33% in 1999, to 32% in 2000.  Interest
 expenses of $882,906 in 2000 dropped to 4% of revenues, from 5% of revenues in
 1999, when the Company reported interest expenses of $977,612.  This
 improvement was primarily due to the retirement of a Cap Ex note in the fourth
 quarter of 1999 and first quarter of 2000.  Same store sales for Company
 stores open for the full 12-month period in both 1999 and 2000 were
 $17,029,060 in 1999 and $18,314,941 for fiscal 2000, an increase of
 $1,285,881, or 7.6% for the year.  G&A expenses, as a percentage of revenues,
 remained the same for 2000 versus 1999.
     The acquisition of Gladco Enterprises in 2000 represents the first major
 acquisition for Creative Host Services, Inc.  Creative Host expects the Gladco
 subsidiary to provide overall sales in excess of $10,500,000 in 2001.  Gladco
 remains a very profitable subsidiary within Creative Host and should provide
 increases in overall cash flow, and in earnings moving forward.
     Sayed Ali, President and Chairman of the Board of Creative Host Services,
 Inc. commented, "The year 2000 was a transition year for our Company.  We
 completed the acquisition of Gladco Enterprises, Inc. providing increased
 sales, improved overall management, and increased cash flows for our company.
 We also received a traditional bank financing line of credit of $2,500,000,
 that we believe represents our financial fortitude at present."  He added,
 "This Company has never been stronger than it is today in all aspects of
 management, cash flow, EBITDA, operations, and overall financial strength.
 We are a proven force in the airport concessions' industry, growing from
 16 individual concessions at our IPO in July of 1997, to over 90 currently.
 We expect to show positive results for our shareholders in the years to come."
 
     Creative Host Services, Inc./GladCo Enterprises, Inc. are engaged in the
 business of acquiring, managing and operating airport concessions such as food
 and beverage, news and gift, and others throughout the United States.  In
 addition, the Company provides in-flight catering to certain national airlines
 at nine of its airport locations and also manages Airline Clubs.  Six of the
 Company's operating concessions are food-courts, each consisting of several
 food and beverage restaurants that are located within each court.  If the
 various food courts were separated and counted as individual concessions,
 Creative Host/Gladco operates approximately 95 concessions overall.  To
 simplify accounting, the Company counts these food-courts as one concession.
 Creative Host Services, Inc. enjoys co-branding relationships with several
 national and regional companies such as Carl's Jr., Schlotzky's Deli, TCBY
 Yogurt, Samuel Adams Brew Pubs, Mrs. Fields Cookies, Pretzelmaker, Nathan's
 Famous Hotdogs, Hot Licks Bar & Grill, and Creative Croissants.  GladCo also
 has an agreement with the nation's oldest brewery, Yuengling Brewery, to be
 implemented in an airport in Pennsylvania.  Interested parties may review
 disclosure documents filed by the Company at the Securities and Exchange
 Commission site, freeedgar.com using the Company's trading symbol CHST.
 
     Statements in this news release that are not descriptions of historical
 facts are forward-looking statements that are subject to risks and
 uncertainties.  Words such as "expect," "intends," "believes," "plans,"
 anticipates" and "likely" also identify forward-looking statements.  All
 forward-looking statements are based on current facts and analyses.  Actual
 results may differ materially from those currently anticipated due to a number
 of factors including, but not limited to history of operating losses,
 anticipated future losses, competition, future capital needs, the need for
 market acceptance, dependence upon third parties, disruption of vital
 infrastructure and intellectual property rights.  All forward-looking
 statements are made pursuant to the Securities Litigation Reform Act of 1995.
 Additional information on factors that may affect the business and financial
 results of the Company can be found in filings of the Company with the
 Securities and Exchange Commission.
 
     Please visit us on our Website @ www.creativehostservices.com
 
 
                            CREATIVE HOST SERVICES, INC.
                                 FINANCIAL SUMMARY
              FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2000
 
                             Three        Three        Twelve        Twelve
                             Months       Months       Months        Months
                             Ended        Ended        Ended         Ended
                           12/31/00     12/31/99     12/31/00       12/31/99
 
     Revenues
       Airport
        Concessions       $8,285,685   $4,595,780  $23,506,452   $17,917,858
       Food Preparation
        Sales                 45,498       28,284      171,463       188,683
       Franchise Royalties    12,030       22,443       47,944        70,410
 
     Total Revenues       $8,343,213   $4,646,507  $23,725,859   $18,176,951
 
     Cost of Goods Sold    2,439,429    1,550,229    7,368,000     5,764,769
 
     Gross Profit         $5,903,784   $3,096,278  $16,357,859   $12,412,182
 
     Operating Costs
      and Expenses
       Payroll and
        other employee
        benefits           2,597,019    1,579,715    7,575,967     5,913,200
       Occupancy           1,648,243    1,724,322    4,898,596     3,889,437
       General,
        Administrative and
        Selling Expenses   1,344,293     (179,355)   3,053,438     2,199,910
 
     Total Operating
      Costs and Expenses   5,589,555    3,124,682   15,528,001    12,002,547
 
     Income (Loss)
      from Operations       $314,229     $(28,404)    $829,858      $409,635
 
     Interest Expense,
      net of beneficial
      conversion charge      204,756      455,719      529,965       977,612
 
     Net Income (Loss)
      before income taxes
      and interest expense
      due to beneficial
      conversion            $109,473    $(484,123)    $299,893     $(567,977)
 
     Provision for income
      taxes, all current      14,438       11,397       20,280        11,781
     Income tax benefit,
      deferred                (5,000)           0       (5,000)            0
 
     Net Income (Loss)
      before one-time
      non-cash charge
      for interest expense
      due to beneficial
      conversion            $100,035    $(495,520)    $284,613     $(579,758)
 
     Interest Expense
      related to
      beneficial conversion
      feature                352,941            0      352,941             0
 
     Net Loss              $(252,906)   $(495,520)    $(68,328)    $(579,758)
 
     Net Income (Loss)
      per share before
      one-time non-cash
      charge for interest
      expense due to
      beneficial conversion    $0.02       $(0.15)       $0.05        $(0.18)
 
     Net Loss per share,
      basic and diluted       $(0.04)      $(0.15)      $(0.01)       $(0.18)
 
     Weighted average
      number of shares
      outstanding:         5,887,953    3,295,843    5,887,953     3,295,843
 
 

SOURCE Creative Host Services, Inc.
    SAN DIEGO, April 18 /PRNewswire/ -- Creative Host Services, Inc.
 (Nasdaq:   CHST) announced its results for the year ended December 31, 2000.
 For the year, Creative Host lost ($.01) per share on revenues of $23,725,859,
 versus a loss of ($579,758) or ($.18) per share on overall revenues of
 $18,178,951 in 1999.  In the fourth quarter, the Company took a one-time,
 non-cash interest expense of $352,941 related to the beneficial conversion
 feature of a Global Capital note.  Prior to that charge, the Company showed
 net income of $.05 per share or $284,613 for fiscal 2000.  In 1999 the Company
 had overall EBIDTA of $1,436,735.  In the year 2000 the Company reported
 EBITDA of $2,157,128.  For the fourth quarter of 2000, the Company reported a
 loss of ($252,906) or ($.04) versus an overall loss of ($495,520) or ($.15)
 for the fourth quarter 1999.  Again, net of the extemporaneous interest
 charges of $352,941, the Company showed positive results for the quarter.
     Operationally, Creative Host showed statistical improvements in many key
 categories.  Cost of goods sold, as a percentage of revenues for the year,
 were 31% of sales in 2000, versus 32% in 1999, a 1% improvement.  The company
 reported overall cost of goods sold in 2000, of $7,368,000 and $5,764,769 in
 1999.  Other key areas of improvement included a decrease in payroll expenses,
 as a percentage of revenues, from 33% in 1999, to 32% in 2000.  Interest
 expenses of $882,906 in 2000 dropped to 4% of revenues, from 5% of revenues in
 1999, when the Company reported interest expenses of $977,612.  This
 improvement was primarily due to the retirement of a Cap Ex note in the fourth
 quarter of 1999 and first quarter of 2000.  Same store sales for Company
 stores open for the full 12-month period in both 1999 and 2000 were
 $17,029,060 in 1999 and $18,314,941 for fiscal 2000, an increase of
 $1,285,881, or 7.6% for the year.  G&A expenses, as a percentage of revenues,
 remained the same for 2000 versus 1999.
     The acquisition of Gladco Enterprises in 2000 represents the first major
 acquisition for Creative Host Services, Inc.  Creative Host expects the Gladco
 subsidiary to provide overall sales in excess of $10,500,000 in 2001.  Gladco
 remains a very profitable subsidiary within Creative Host and should provide
 increases in overall cash flow, and in earnings moving forward.
     Sayed Ali, President and Chairman of the Board of Creative Host Services,
 Inc. commented, "The year 2000 was a transition year for our Company.  We
 completed the acquisition of Gladco Enterprises, Inc. providing increased
 sales, improved overall management, and increased cash flows for our company.
 We also received a traditional bank financing line of credit of $2,500,000,
 that we believe represents our financial fortitude at present."  He added,
 "This Company has never been stronger than it is today in all aspects of
 management, cash flow, EBITDA, operations, and overall financial strength.
 We are a proven force in the airport concessions' industry, growing from
 16 individual concessions at our IPO in July of 1997, to over 90 currently.
 We expect to show positive results for our shareholders in the years to come."
 
     Creative Host Services, Inc./GladCo Enterprises, Inc. are engaged in the
 business of acquiring, managing and operating airport concessions such as food
 and beverage, news and gift, and others throughout the United States.  In
 addition, the Company provides in-flight catering to certain national airlines
 at nine of its airport locations and also manages Airline Clubs.  Six of the
 Company's operating concessions are food-courts, each consisting of several
 food and beverage restaurants that are located within each court.  If the
 various food courts were separated and counted as individual concessions,
 Creative Host/Gladco operates approximately 95 concessions overall.  To
 simplify accounting, the Company counts these food-courts as one concession.
 Creative Host Services, Inc. enjoys co-branding relationships with several
 national and regional companies such as Carl's Jr., Schlotzky's Deli, TCBY
 Yogurt, Samuel Adams Brew Pubs, Mrs. Fields Cookies, Pretzelmaker, Nathan's
 Famous Hotdogs, Hot Licks Bar & Grill, and Creative Croissants.  GladCo also
 has an agreement with the nation's oldest brewery, Yuengling Brewery, to be
 implemented in an airport in Pennsylvania.  Interested parties may review
 disclosure documents filed by the Company at the Securities and Exchange
 Commission site, freeedgar.com using the Company's trading symbol CHST.
 
     Statements in this news release that are not descriptions of historical
 facts are forward-looking statements that are subject to risks and
 uncertainties.  Words such as "expect," "intends," "believes," "plans,"
 anticipates" and "likely" also identify forward-looking statements.  All
 forward-looking statements are based on current facts and analyses.  Actual
 results may differ materially from those currently anticipated due to a number
 of factors including, but not limited to history of operating losses,
 anticipated future losses, competition, future capital needs, the need for
 market acceptance, dependence upon third parties, disruption of vital
 infrastructure and intellectual property rights.  All forward-looking
 statements are made pursuant to the Securities Litigation Reform Act of 1995.
 Additional information on factors that may affect the business and financial
 results of the Company can be found in filings of the Company with the
 Securities and Exchange Commission.
 
     Please visit us on our Website @ www.creativehostservices.com
 
 
                            CREATIVE HOST SERVICES, INC.
                                 FINANCIAL SUMMARY
              FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2000
 
                             Three        Three        Twelve        Twelve
                             Months       Months       Months        Months
                             Ended        Ended        Ended         Ended
                           12/31/00     12/31/99     12/31/00       12/31/99
 
     Revenues
       Airport
        Concessions       $8,285,685   $4,595,780  $23,506,452   $17,917,858
       Food Preparation
        Sales                 45,498       28,284      171,463       188,683
       Franchise Royalties    12,030       22,443       47,944        70,410
 
     Total Revenues       $8,343,213   $4,646,507  $23,725,859   $18,176,951
 
     Cost of Goods Sold    2,439,429    1,550,229    7,368,000     5,764,769
 
     Gross Profit         $5,903,784   $3,096,278  $16,357,859   $12,412,182
 
     Operating Costs
      and Expenses
       Payroll and
        other employee
        benefits           2,597,019    1,579,715    7,575,967     5,913,200
       Occupancy           1,648,243    1,724,322    4,898,596     3,889,437
       General,
        Administrative and
        Selling Expenses   1,344,293     (179,355)   3,053,438     2,199,910
 
     Total Operating
      Costs and Expenses   5,589,555    3,124,682   15,528,001    12,002,547
 
     Income (Loss)
      from Operations       $314,229     $(28,404)    $829,858      $409,635
 
     Interest Expense,
      net of beneficial
      conversion charge      204,756      455,719      529,965       977,612
 
     Net Income (Loss)
      before income taxes
      and interest expense
      due to beneficial
      conversion            $109,473    $(484,123)    $299,893     $(567,977)
 
     Provision for income
      taxes, all current      14,438       11,397       20,280        11,781
     Income tax benefit,
      deferred                (5,000)           0       (5,000)            0
 
     Net Income (Loss)
      before one-time
      non-cash charge
      for interest expense
      due to beneficial
      conversion            $100,035    $(495,520)    $284,613     $(579,758)
 
     Interest Expense
      related to
      beneficial conversion
      feature                352,941            0      352,941             0
 
     Net Loss              $(252,906)   $(495,520)    $(68,328)    $(579,758)
 
     Net Income (Loss)
      per share before
      one-time non-cash
      charge for interest
      expense due to
      beneficial conversion    $0.02       $(0.15)       $0.05        $(0.18)
 
     Net Loss per share,
      basic and diluted       $(0.04)      $(0.15)      $(0.01)       $(0.18)
 
     Weighted average
      number of shares
      outstanding:         5,887,953    3,295,843    5,887,953     3,295,843
 
 SOURCE  Creative Host Services, Inc.