Furr's Restaurant Group, Inc. Announces 37% Increase in Earnings Before Income Taxes

Apr 12, 2001, 01:00 ET from Furr's Restaurant Group, Inc.

    RICHARDSON, Texas, April 12 /PRNewswire/ -- Furr's Restaurant Group, Inc.
 (Amex:   FRG) announced today its financial results for the fourth quarter and
 full fiscal year 2000.
     Sales for the 53-week fiscal year ended January 2, 2001 were
 $196.0 million compared to $188.1 million for 52-week fiscal 1999.  Sales for
 the 14-week fourth quarter of 2000 were $50.5 million compared to
 $47.1 million in the 13-week fourth quarter of 1999.  It should be noted that,
 in accordance with the Company's accounting policies, the year ended
 January 2, 2001, consisted of 53 weeks.  In comparison, fiscal year 1999
 consisted of 52 weeks.  The fourth quarters of 2000 and 1999 consisted of 14
 and 13 weeks, respectively.
     The Company's net income was $8.5 million for fiscal 2000 compared to net
 income of $31.3 million for the prior year, or net income of $.87 per share
 compared to $3.19 per share, respectively.  Fiscal 1999 includes special
 charges of $.6 million and tax benefits aggregating $23.8 million related to
 settlement of IRS litigation and recognition of a portion of the deferred tax
 benefit related to the Company's net operating loss carryforwards.  The tax
 benefits were recognized in the fourth quarter of fiscal 1999.
     The Company's pretax income increased by 37.3% to $10.2 million in 2000
 compared to $7.4 million for 1999.
     The net income for the 14-week fourth quarter of 2000 was $2.3 million,
 compared to net income of $26.4 million in the prior year 13-week quarter, or
 net income of $.23 per share compared to $2.70 per share, respectively.  The
 Company's 1999 fourth quarter net income of $26.4 million included the
 $23.8 million tax benefit previously described.
     The Company's pretax income for the fourth quarter of 2000 was
 $2.7 million compared to $2.6 million in 1999.
     Phil Ratner, President and CEO stated, "We are pleased to report a 37%
 increase in pre-tax income for the year.  Adverse weather conditions and
 higher natural gas prices more than offset the benefit of the extra operating
 week, but our ongoing food cost management initiatives combined with excellent
 controls at the restaurant level provided the key ingredients for the
 increase."
     Furr's Restaurant Group, Inc. operates 95 cafeterias under the Furr's and
 Bishop's names in 12 midwestern, southwestern and western states.  The Company
 also operates Dynamic Foods, its food preparation, processing and distribution
 division, in Lubbock, Texas.
     Note:  Forward-looking statements regarding management's present plans
 involve a number of risks and uncertainties.  The actual results of the future
 events described in such forward-looking statements could differ materially
 from those stated in such forward-looking statements.  Among the factors that
 could cause actual results to differ materially are:  adverse conditions in
 the restaurant industry and other competitive factors, governmental
 regulation, pending and possible future litigation, seasonality of business,
 loss of material suppliers or increases in the costs of raw materials used in
 the Company's food products, termination of key franchise and/or license
 agreements, as well as other risks and uncertainties disclosed in periodic
 reports on Form 10-K and Form 10-Q filed with the Securities and Exchange
 Commission.
 
 
                           FINANCIAL DATA (UNAUDITED)
                (Dollars in thousands, except per share amounts)
 
                                             Fourteen Weeks     Thirteen Weeks
                                                 Ended               Ended
                                            January 2, 2001  December 28, 1999
 
     Sales                                      $50,498              $47,073
 
     Cost of Sales                               14,507               13,872
     Gross Profit                                35,991               33,201
     Selling General & Administrative            30,486               27,481
     Depreciation & Amortization                  2,897                3,032
     Operating Income                             2,608                2,688
     Gain on disposal of assets                    (129)
     Interest Expense                                85                  117
 
     Earnings before Income Taxes                 2,652                2,571
 
     Income Tax Expense (Benefit)                   377              (23,815)
 
     Net Income                                  $2,275              $26,386
 
     Net Income Per Common Share:
 
     Basic                                        $0.23                $2.70
 
     Diluted                                      $0.23                $2.70
 
     Weighted average number of Common
      Shares outstanding:
 
     Basic                                    9,757,918            9,757,911
 
     Diluted                                  9,757,918            9,759,613
 
 
                           FINANCIAL DATA (UNAUDITED)
                (Dollars in thousands, except per share amounts)
 
                                           Fifty-three Weeks   Fifty-two Weeks
                                                 Ended                Ended
                                           January 2, 2001   December 28, 1999
 
     Sales                                     $196,047             $188,060
 
     Cost of Sales                               57,376               56,036
     Gross Profit                               138,671              132,024
     Selling General & Administrative           117,653              113,202
     Depreciation & Amortization                 10,944               10,335
     Special Charges                                ---                  566
     Operating Income                            10,074                7,921
     (Gain) loss on disposal of assets             (494)                 125
     Interest Expense                               344                  349
 
     Earnings before Income Taxes                10,224                7,447
 
     Income Tax Expense (Benefit)                 1,703              (23,815)
 
     Net Income                                  $8,521              $31,262
 
     Net Income Per Common Share:
 
     Basic                                        $0.87                $3.20
 
     Diluted                                      $0.87                $3.19
 
     Weighted average number of Common
      Shares outstanding:
 
     Basic                                    9,757,918            9,757,123
 
     Diluted                                  9,758,137            9,800,549
 
 

SOURCE Furr's Restaurant Group, Inc.
    RICHARDSON, Texas, April 12 /PRNewswire/ -- Furr's Restaurant Group, Inc.
 (Amex:   FRG) announced today its financial results for the fourth quarter and
 full fiscal year 2000.
     Sales for the 53-week fiscal year ended January 2, 2001 were
 $196.0 million compared to $188.1 million for 52-week fiscal 1999.  Sales for
 the 14-week fourth quarter of 2000 were $50.5 million compared to
 $47.1 million in the 13-week fourth quarter of 1999.  It should be noted that,
 in accordance with the Company's accounting policies, the year ended
 January 2, 2001, consisted of 53 weeks.  In comparison, fiscal year 1999
 consisted of 52 weeks.  The fourth quarters of 2000 and 1999 consisted of 14
 and 13 weeks, respectively.
     The Company's net income was $8.5 million for fiscal 2000 compared to net
 income of $31.3 million for the prior year, or net income of $.87 per share
 compared to $3.19 per share, respectively.  Fiscal 1999 includes special
 charges of $.6 million and tax benefits aggregating $23.8 million related to
 settlement of IRS litigation and recognition of a portion of the deferred tax
 benefit related to the Company's net operating loss carryforwards.  The tax
 benefits were recognized in the fourth quarter of fiscal 1999.
     The Company's pretax income increased by 37.3% to $10.2 million in 2000
 compared to $7.4 million for 1999.
     The net income for the 14-week fourth quarter of 2000 was $2.3 million,
 compared to net income of $26.4 million in the prior year 13-week quarter, or
 net income of $.23 per share compared to $2.70 per share, respectively.  The
 Company's 1999 fourth quarter net income of $26.4 million included the
 $23.8 million tax benefit previously described.
     The Company's pretax income for the fourth quarter of 2000 was
 $2.7 million compared to $2.6 million in 1999.
     Phil Ratner, President and CEO stated, "We are pleased to report a 37%
 increase in pre-tax income for the year.  Adverse weather conditions and
 higher natural gas prices more than offset the benefit of the extra operating
 week, but our ongoing food cost management initiatives combined with excellent
 controls at the restaurant level provided the key ingredients for the
 increase."
     Furr's Restaurant Group, Inc. operates 95 cafeterias under the Furr's and
 Bishop's names in 12 midwestern, southwestern and western states.  The Company
 also operates Dynamic Foods, its food preparation, processing and distribution
 division, in Lubbock, Texas.
     Note:  Forward-looking statements regarding management's present plans
 involve a number of risks and uncertainties.  The actual results of the future
 events described in such forward-looking statements could differ materially
 from those stated in such forward-looking statements.  Among the factors that
 could cause actual results to differ materially are:  adverse conditions in
 the restaurant industry and other competitive factors, governmental
 regulation, pending and possible future litigation, seasonality of business,
 loss of material suppliers or increases in the costs of raw materials used in
 the Company's food products, termination of key franchise and/or license
 agreements, as well as other risks and uncertainties disclosed in periodic
 reports on Form 10-K and Form 10-Q filed with the Securities and Exchange
 Commission.
 
 
                           FINANCIAL DATA (UNAUDITED)
                (Dollars in thousands, except per share amounts)
 
                                             Fourteen Weeks     Thirteen Weeks
                                                 Ended               Ended
                                            January 2, 2001  December 28, 1999
 
     Sales                                      $50,498              $47,073
 
     Cost of Sales                               14,507               13,872
     Gross Profit                                35,991               33,201
     Selling General & Administrative            30,486               27,481
     Depreciation & Amortization                  2,897                3,032
     Operating Income                             2,608                2,688
     Gain on disposal of assets                    (129)
     Interest Expense                                85                  117
 
     Earnings before Income Taxes                 2,652                2,571
 
     Income Tax Expense (Benefit)                   377              (23,815)
 
     Net Income                                  $2,275              $26,386
 
     Net Income Per Common Share:
 
     Basic                                        $0.23                $2.70
 
     Diluted                                      $0.23                $2.70
 
     Weighted average number of Common
      Shares outstanding:
 
     Basic                                    9,757,918            9,757,911
 
     Diluted                                  9,757,918            9,759,613
 
 
                           FINANCIAL DATA (UNAUDITED)
                (Dollars in thousands, except per share amounts)
 
                                           Fifty-three Weeks   Fifty-two Weeks
                                                 Ended                Ended
                                           January 2, 2001   December 28, 1999
 
     Sales                                     $196,047             $188,060
 
     Cost of Sales                               57,376               56,036
     Gross Profit                               138,671              132,024
     Selling General & Administrative           117,653              113,202
     Depreciation & Amortization                 10,944               10,335
     Special Charges                                ---                  566
     Operating Income                            10,074                7,921
     (Gain) loss on disposal of assets             (494)                 125
     Interest Expense                               344                  349
 
     Earnings before Income Taxes                10,224                7,447
 
     Income Tax Expense (Benefit)                 1,703              (23,815)
 
     Net Income                                  $8,521              $31,262
 
     Net Income Per Common Share:
 
     Basic                                        $0.87                $3.20
 
     Diluted                                      $0.87                $3.19
 
     Weighted average number of Common
      Shares outstanding:
 
     Basic                                    9,757,918            9,757,123
 
     Diluted                                  9,758,137            9,800,549
 
 SOURCE  Furr's Restaurant Group, Inc.