Garden Fresh Reports Fiscal 2001 Second Quarter Results

Apr 26, 2001, 01:00 ET from Garden Fresh Restaurant Corp.

    SAN DIEGO, April 26 /PRNewswire/ -- Garden Fresh Restaurant Corp.
 (Nasdaq: LTUS), operator of the Souplantation and Sweet Tomatoes restaurants,
 today reported results for its second fiscal quarter and six month period
 ended March 31, 2001.
     Net sales for the second quarter of fiscal 2001, based on 88 salad buffet
 restaurants in operation, increased 25.7 percent to $51.3 million from
 $40.8 million in the same period a year ago when the company operated 71 salad
 buffet restaurants.  Same store sales for the quarter increased 4.9 percent
 over the second quarter of fiscal 2000.
     For the fiscal 2001 second quarter, Garden Fresh posted net income of
 $1.4 million, or $0.25 per diluted share.  This compares with fiscal 2000
 second quarter income of $1.9 million, or $0.32 per diluted share.
     For the first half of fiscal 2001, Garden Fresh posted net income of
 $2.0 million, or $0.35 per diluted share.  This includes income of
 $1.3 million from an insurance settlement related to the loss of assets
 due to a fire at the company's Point Loma restaurant in December 1999.  By
 comparison, for the first half of fiscal 2000, the company reported net income
 of $2.7 million, or $0.46 per diluted share, excluding the cumulative effect
 of a one-time required accounting change taken in the first quarter of fiscal
 2000.  Including the cumulative effect of the accounting change, the company
 recorded net income of $1.4 million, or $0.25 per diluted share, for the first
 half of fiscal 2000.
     During the second quarter of fiscal 2001, as planned, two new stores were
 opened: one located in St. Charles, Illinois, and one in Glenview, Illinois,
 both suburbs of Chicago.
     "Our results for the second quarter of fiscal 2001, while not at the level
 of profitability we know Garden Fresh is capable of, improved from the first
 quarter of fiscal 2001," said Michael Mack, chairman and chief executive
 officer.  "Due to higher prices, same store sales for the second quarter of
 2001 were positive overall, compared with the same period of fiscal 2000.  On
 the other hand, our fiscal 2001 second quarter same store guest counts
 declined by 0.6% from the comparable quarter in the prior year, well below our
 target of approximately 1.5% growth.  On the cost side, we encountered
 increases in several categories, notably in labor expense as we continued to
 experience inflation in the average wage paid to hourly employees,
 particularly in California where the minimum wage rose $0.50 per hour
 effective January 2, 2001.  Occupancy and other expenses also increased,
 reaching 22.9% as a percent of sales for the second quarter of fiscal 2001
 compared with 21.0% in the same period last year, as we faced a number of
 higher costs, most significantly in planned marketing expenditures related to
 the rollout of our new television campaign in the San Diego area and to
 research of guest dining patterns.  Both of these programs are part of a
 carefully designed strategy that we expect to benefit performance in
 subsequent quarters.  In addition, during the second quarter, we met with
 higher costs in three other areas:  (1) increased utility costs in California
 and natural gas increases in the rest of our markets; (2) increased repair and
 maintenance costs; and (3) an increase in store rents due to the conversion of
 stores to leased from owned.  Since May 2000 we have converted five stores as
 part of the company's plan to reduce to debt.
     "Table A summarizes these expense comparisons."
 
 
                              TABLE A ($000s omitted)
                                    FY 2001                   FY 2000
                        Second Quarter  % of Sales   Second Quarter
 % of Sales
      Labor                 $16,660         32.5%      $12,763         31.3%
      Occupancy & other
        Marketing             1,602          3.1%        1,088          2.7%
        Occupancy             3,776          7.4%        2,752          6.7%
        Other                 6,369         12.4%        4,735         11.6%
        Total                11,747         22.9%        8,575         21.0%
 
 
     Mack continued: "Increases in general and administrative expenses in the
 second quarter of fiscal 2001, compared with the same period last year, were
 related to planned increases in field supervision and human resource expense
 that are consistent with our strategy to improve store level performance
 throughout the company.  The company is not currently anticipating further
 significant dollar increases for fiscal 2002 in general and administrative
 expenses.
     "Interest expense increased significantly in the second quarter of fiscal
 2001 versus the same quarter last year.  The increase in interest expense as a
 percent of sales was a result of increased borrowing activity resulting from
 higher capital expenditures for existing stores, seasonal funding requirements
 and higher capital costs for new sites.  This increase in interest expense was
 partially offset by the conversion of five stores to leased stores from owned
 stores mentioned previously.  With the increased total number of stores open
 at the end of the second quarter of fiscal 2001 due to store openings (four
 stores opened in fiscal 2001 and seventeen stores opened in fiscal 2000),
 depreciation and amortization increased over the second quarter of fiscal
 2000."
     Mack added: "Looking forward to the balance of fiscal 2001 and fiscal
 2002, we are committed to improving our store economics.  Consequently, we
 have reduced our growth plan for fiscal 2001 to nine stores and for fiscal
 2002 to five stores focusing only on restaurants currently under construction
 and additional sites that we believe will generate excellent returns.  We
 believe that by concentrating on our existing business closely we can improve
 the revenue line and manage our costs effectively.  All of the measures being
 taken are intended to be consistent with the strong value we provide for our
 guests and continue the positive growth we have achieved in same store sales
 over the past six years.
     "While many of the cost increases were anticipated in our plan, two areas,
 the minimum wage increase in California and utility cost increases, were not
 part of our original plan.  Because of these increases and some softness in
 sales, we are revising our estimates downward for the second half of fiscal
 2001 and fiscal 2002.  Current estimates for sales, net income and diluted net
 income per share for the third quarter and full fiscal year 2001, and for the
 fiscal year 2002, are in the ranges presented in Table B that follows."
 
 
                                          TABLE B:
                           FY 2001 AND FY 2002 ESTIMATES - Range
 
                          Q3 FY 2001           FY 2001              FY 2002
      Sales                $53 - $54         $193 - $198         $205 - $215
                             million             million             million
      Net income         $1.1 - $1.5         $4.3 - $5.1         $5.4 - $6.0
                                  million            million*             million
      Diluted net
       income per
       share             $0.21-$0.25         $0.75-$0.90         $0.95-$1.05
 
      * Includes Point Loma insurance settlement.
      Assumptions for fiscal year 2001 include:
       -- comparable store increase of 4.1% (primarily driven by price);
       -- the addition of 9 new stores;
       -- wage rate inflation of 4% over FY2000;
       --the store level profit margin of 13.2%(not including startup).
 
 
     Mack commented: "I am pleased with how our restaurant managers are
 managing the costs under their direct control while maintaining our quality,
 service and cleanliness standards, which are at the highest levels in the
 company's history.  Our task is to manage our restaurant cost structure to our
 new labor and energy economics and to drive more sales through our
 restaurants.  With the progress we have made on several key initiatives, I
 believe we are well on track to accomplish our objectives.
     "We have worked hard during the course of the quarter on programs designed
 to improve the economics of our restaurants," said Mack.  "Several test
 programs related to direct labor costs and store manager costs are yielding
 impressive results.  We have accelerated these programs and will roll them out
 over the course of this year and next.  On the sales side, we have been
 encouraged by the results from increased radio expenditures in six of our
 markets and are finalizing plans for local store marketing in six markets (not
 all of which overlap with radio).  It is our intention to overcome our sales
 shortfall and offset some of the cost increases as these programs yield
 measurable results across the company."
 
     Garden Fresh Restaurant Corp. currently operates 90 salad buffet
 restaurants in California, Florida, Arizona, Colorado, Georgia, Illinois,
 Kansas, Missouri, Nevada, New Mexico, North Carolina, Oregon, Texas, Utah and
 Washington, under the names Souplantation and Sweet Tomatoes.  Its restaurants
 offer an abundance of fresh, quality salad selections, soups, bakery items,
 pastas and desserts in a self-serve format.
 
     Certain statements in this news release for Garden Fresh Restaurant Corp.
 ("company"), including the estimates for the third quarter of fiscal 2001, the
 full year for fiscal 2001, and the full year for fiscal 2002, along with the
 related assumptions, are forward-looking and may involve a number of risks and
 uncertainties.  These statements include statements regarding: (i) the
 company's focus to producing growth from, and effectively managing costs of,
 its in-place facilities; (ii) the impact of strategic measures designed to
 increase revenues and improve financial performance of both the company as a
 whole and each restaurant; (iii) the pursuit of new marketing strategies and
 their impact on sales and earnings; (iv) the pursuit of new cost reduction
 strategies, the time frame in which programs to designed to implement these
 strategies will be rolled out and their impact on earnings and customer
 satisfaction; (v) the impact of inflationary cost pressures, including
 increased labor and utility costs; (vi) the company's anticipated general and
 administrative expenses for fiscal 2002; (vii) the company's planned store
 openings for fiscal 2001 and fiscal 2002 and the ability of those sites to
 generate excellent returns; (viii) the company's ability to continue to
 improve profitability and increase same store sales for the balance of fiscal
 2001 and for fiscal 2002; and (ix) the company's plan to reduce its debt.
 Management cannot be certain that these strategic initiatives and marketing
 strategies will positively impact sales or earnings.  The degree of future
 inflationary cost pressure the company may experience is uncertain.  Future
 earnings could be adversely affected by inflation and there is substantial
 risk and uncertainty regarding the company's ability to recoup cost inflation
 via future price increases or productivity gains.  Current results are not
 indicative of future receptivity of the concept or increases in sales.  The
 company's restaurants operate in highly competitive environments, subject to
 continuous shifting consumer demand patterns.  More information on factors
 that could affect the company's financial results is included in the company's
 Form 10-K, filed with the Securities and Exchange Commission.
 
     Second Quarter Investor Conference Call
     Garden Fresh will host an investor conference call related to the
 financial and operating results today, Thursday, April 26, 2001 at 8:00 a.m.
 PST (11:00 a.m. EST).  President and chief executive officer Michael Mack and
 chief financial officer David Qualls will review the company's performance for
 the second quarter, and discuss their outlook for fiscal 2001.  The call will
 be open to all interested investors through a live audio Web broadcast via the
 Internet at www.gardenfreshcorp.com, www.streetfusion.com or www.vcall.com.
 For those who are not available to listen to the live broadcast, the call will
 be archived on the Web sites through 6:00 p.m., Pacific, Thursday, May 10.  A
 playback of the call will also be available through 6:00 p.m., Pacific,
 Friday, April 27 by calling (800) 633-8284 (domestic) or (858) 812-6440
 (international).  Callers should use reservation number 18607653.
 
     GARDEN FRESH RESTAURANT CORP.
     Condensed Statements of Operations
     (In thousands, except per share amounts)
     (unaudited)
                                    Three Months Ended     Six Months Ended
                                        March 31,              March 31,
                                      2001       2000       2001      2000
 
     NET SALES                      $51,322     $40,783    $94,681   $76,485
 
     COSTS AND EXPENSES
     Cost of sales                   12,482      10,190     23,441    19,267
     Restaurant operating
      expenses
       Labor                         16,660      12,763     30,999    24,366
       Occupancy and other
        expenses                     11,747       8,575     22,303    16,512
     General and administrative
      expenses                        3,308       2,690      6,542     5,017
     Restaurant opening costs           541         513      1,127     1,045
     Depreciation and amortization    3,041       2,291      5,929     4,447
 
     Total costs and expenses        47,779      37,022     90,341    70,654
 
     OPERATING INCOME                 3,543       3,761      4,340     5,831
 
     Interest income                     43          38        110        67
     Interest expense                (1,193)       (808)    (2,344)   (1,532)
     Other income (expense), net        (60)        105      1,169        50
 
     Income before income taxes and
      cumulative effect of accounting
      change                          2,333       3,096      3,275     4,416
      Provision for income taxes       (925)     (1,229)    (1,296)   (1,748)
     Income before cumulative effect
      of accounting change            1,408       1,867      1,979     2,668
     Cumulative effect of change
      in accounting for startup
      costs, net of income tax
      benefit of $800                    --          --         --    (1,233)
 
     NET INCOME                      $1,408      $1,867     $1,979    $1,435
 
     Basic net income per share:
      Income before cumulative
       effect of accounting change    $0.25       $0.33      $0.35     $0.47
      Cumulative effect of change
       in accounting for startup
       costs                            $--         $--        $--    $(0.22)
      Net income                      $0.25       $0.33      $0.35     $0.25
      Shares used in computing basic
       net income per share           5,665       5,641      5,665     5,639
     Diluted net income per share:
      Income before cumulative
       effect of accounting change    $0.25       $0.32      $0.35     $0.46
      Cumulative effect of change
       in accounting for startup
       costs                             --          --         --     (0.21)
      Net income                      $0.25       $0.32      $0.35     $0.25
      Shares used in computing
       diluted net income per share   5,670       5,796      5,677     5,833
 
 
     GARDEN FRESH RESTAURANT CORP.
     Condensed Balance Sheet
     (Dollars in thousands)
 
                                                 March 31,      September 30,
                                                    2001             2000
                                                (unaudited)
     ASSETS
 
     Current assets:
      Cash and cash equivalents                    $2,058             $2,058
      Inventories                                   7,284              6,383
      Other current assets                          2,765              1,273
 
        Total current assets                       12,107              9,714
 
     Property and equipment, net                  140,641            135,535
     Intangibles and other assets                   2,148              1,939
 
        Total assets                             $154,896           $147,188
 
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
 
     Current liabilities:
      Accounts payable                             $7,473             $9,701
      Revolving line of credit                      8,000             12,000
      Current portion of long-term debt             9,449              8,942
      Current deferred income taxes                   382                218
      Accrued liabilities                          11,150              7,928
 
        Total current liabilities                  36,454             38,789
 
      Deferred income taxes                         4,202              3,745
      Long-term debt, net of current portion       37,620             30,612
      Other liabilities                             2,882              2,371
 
     Shareholders' equity:
      Common stock, $.01 par value: 12,000,000
       shares authorized at March 31, 2001 and
       September 30, 2000; 5,665,719 and
       5,655,645 issued and outstanding at
       March 31, 2001 and September 30, 2000,
       respectively                                    57                 57
      Additional paid-in capital                   59,606             59,518
      Retained earnings                            14,075             12,096
 
        Total shareholders' equity                 73,738             71,671
 
        Total liabilities and shareholders'
         equity                                  $154,896           $147,188
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X84586667
 
 

SOURCE Garden Fresh Restaurant Corp.
    SAN DIEGO, April 26 /PRNewswire/ -- Garden Fresh Restaurant Corp.
 (Nasdaq: LTUS), operator of the Souplantation and Sweet Tomatoes restaurants,
 today reported results for its second fiscal quarter and six month period
 ended March 31, 2001.
     Net sales for the second quarter of fiscal 2001, based on 88 salad buffet
 restaurants in operation, increased 25.7 percent to $51.3 million from
 $40.8 million in the same period a year ago when the company operated 71 salad
 buffet restaurants.  Same store sales for the quarter increased 4.9 percent
 over the second quarter of fiscal 2000.
     For the fiscal 2001 second quarter, Garden Fresh posted net income of
 $1.4 million, or $0.25 per diluted share.  This compares with fiscal 2000
 second quarter income of $1.9 million, or $0.32 per diluted share.
     For the first half of fiscal 2001, Garden Fresh posted net income of
 $2.0 million, or $0.35 per diluted share.  This includes income of
 $1.3 million from an insurance settlement related to the loss of assets
 due to a fire at the company's Point Loma restaurant in December 1999.  By
 comparison, for the first half of fiscal 2000, the company reported net income
 of $2.7 million, or $0.46 per diluted share, excluding the cumulative effect
 of a one-time required accounting change taken in the first quarter of fiscal
 2000.  Including the cumulative effect of the accounting change, the company
 recorded net income of $1.4 million, or $0.25 per diluted share, for the first
 half of fiscal 2000.
     During the second quarter of fiscal 2001, as planned, two new stores were
 opened: one located in St. Charles, Illinois, and one in Glenview, Illinois,
 both suburbs of Chicago.
     "Our results for the second quarter of fiscal 2001, while not at the level
 of profitability we know Garden Fresh is capable of, improved from the first
 quarter of fiscal 2001," said Michael Mack, chairman and chief executive
 officer.  "Due to higher prices, same store sales for the second quarter of
 2001 were positive overall, compared with the same period of fiscal 2000.  On
 the other hand, our fiscal 2001 second quarter same store guest counts
 declined by 0.6% from the comparable quarter in the prior year, well below our
 target of approximately 1.5% growth.  On the cost side, we encountered
 increases in several categories, notably in labor expense as we continued to
 experience inflation in the average wage paid to hourly employees,
 particularly in California where the minimum wage rose $0.50 per hour
 effective January 2, 2001.  Occupancy and other expenses also increased,
 reaching 22.9% as a percent of sales for the second quarter of fiscal 2001
 compared with 21.0% in the same period last year, as we faced a number of
 higher costs, most significantly in planned marketing expenditures related to
 the rollout of our new television campaign in the San Diego area and to
 research of guest dining patterns.  Both of these programs are part of a
 carefully designed strategy that we expect to benefit performance in
 subsequent quarters.  In addition, during the second quarter, we met with
 higher costs in three other areas:  (1) increased utility costs in California
 and natural gas increases in the rest of our markets; (2) increased repair and
 maintenance costs; and (3) an increase in store rents due to the conversion of
 stores to leased from owned.  Since May 2000 we have converted five stores as
 part of the company's plan to reduce to debt.
     "Table A summarizes these expense comparisons."
 
 
                              TABLE A ($000s omitted)
                                    FY 2001                   FY 2000
                        Second Quarter  % of Sales   Second Quarter
 % of Sales
      Labor                 $16,660         32.5%      $12,763         31.3%
      Occupancy & other
        Marketing             1,602          3.1%        1,088          2.7%
        Occupancy             3,776          7.4%        2,752          6.7%
        Other                 6,369         12.4%        4,735         11.6%
        Total                11,747         22.9%        8,575         21.0%
 
 
     Mack continued: "Increases in general and administrative expenses in the
 second quarter of fiscal 2001, compared with the same period last year, were
 related to planned increases in field supervision and human resource expense
 that are consistent with our strategy to improve store level performance
 throughout the company.  The company is not currently anticipating further
 significant dollar increases for fiscal 2002 in general and administrative
 expenses.
     "Interest expense increased significantly in the second quarter of fiscal
 2001 versus the same quarter last year.  The increase in interest expense as a
 percent of sales was a result of increased borrowing activity resulting from
 higher capital expenditures for existing stores, seasonal funding requirements
 and higher capital costs for new sites.  This increase in interest expense was
 partially offset by the conversion of five stores to leased stores from owned
 stores mentioned previously.  With the increased total number of stores open
 at the end of the second quarter of fiscal 2001 due to store openings (four
 stores opened in fiscal 2001 and seventeen stores opened in fiscal 2000),
 depreciation and amortization increased over the second quarter of fiscal
 2000."
     Mack added: "Looking forward to the balance of fiscal 2001 and fiscal
 2002, we are committed to improving our store economics.  Consequently, we
 have reduced our growth plan for fiscal 2001 to nine stores and for fiscal
 2002 to five stores focusing only on restaurants currently under construction
 and additional sites that we believe will generate excellent returns.  We
 believe that by concentrating on our existing business closely we can improve
 the revenue line and manage our costs effectively.  All of the measures being
 taken are intended to be consistent with the strong value we provide for our
 guests and continue the positive growth we have achieved in same store sales
 over the past six years.
     "While many of the cost increases were anticipated in our plan, two areas,
 the minimum wage increase in California and utility cost increases, were not
 part of our original plan.  Because of these increases and some softness in
 sales, we are revising our estimates downward for the second half of fiscal
 2001 and fiscal 2002.  Current estimates for sales, net income and diluted net
 income per share for the third quarter and full fiscal year 2001, and for the
 fiscal year 2002, are in the ranges presented in Table B that follows."
 
 
                                          TABLE B:
                           FY 2001 AND FY 2002 ESTIMATES - Range
 
                          Q3 FY 2001           FY 2001              FY 2002
      Sales                $53 - $54         $193 - $198         $205 - $215
                             million             million             million
      Net income         $1.1 - $1.5         $4.3 - $5.1         $5.4 - $6.0
                                  million            million*             million
      Diluted net
       income per
       share             $0.21-$0.25         $0.75-$0.90         $0.95-$1.05
 
      * Includes Point Loma insurance settlement.
      Assumptions for fiscal year 2001 include:
       -- comparable store increase of 4.1% (primarily driven by price);
       -- the addition of 9 new stores;
       -- wage rate inflation of 4% over FY2000;
       --the store level profit margin of 13.2%(not including startup).
 
 
     Mack commented: "I am pleased with how our restaurant managers are
 managing the costs under their direct control while maintaining our quality,
 service and cleanliness standards, which are at the highest levels in the
 company's history.  Our task is to manage our restaurant cost structure to our
 new labor and energy economics and to drive more sales through our
 restaurants.  With the progress we have made on several key initiatives, I
 believe we are well on track to accomplish our objectives.
     "We have worked hard during the course of the quarter on programs designed
 to improve the economics of our restaurants," said Mack.  "Several test
 programs related to direct labor costs and store manager costs are yielding
 impressive results.  We have accelerated these programs and will roll them out
 over the course of this year and next.  On the sales side, we have been
 encouraged by the results from increased radio expenditures in six of our
 markets and are finalizing plans for local store marketing in six markets (not
 all of which overlap with radio).  It is our intention to overcome our sales
 shortfall and offset some of the cost increases as these programs yield
 measurable results across the company."
 
     Garden Fresh Restaurant Corp. currently operates 90 salad buffet
 restaurants in California, Florida, Arizona, Colorado, Georgia, Illinois,
 Kansas, Missouri, Nevada, New Mexico, North Carolina, Oregon, Texas, Utah and
 Washington, under the names Souplantation and Sweet Tomatoes.  Its restaurants
 offer an abundance of fresh, quality salad selections, soups, bakery items,
 pastas and desserts in a self-serve format.
 
     Certain statements in this news release for Garden Fresh Restaurant Corp.
 ("company"), including the estimates for the third quarter of fiscal 2001, the
 full year for fiscal 2001, and the full year for fiscal 2002, along with the
 related assumptions, are forward-looking and may involve a number of risks and
 uncertainties.  These statements include statements regarding: (i) the
 company's focus to producing growth from, and effectively managing costs of,
 its in-place facilities; (ii) the impact of strategic measures designed to
 increase revenues and improve financial performance of both the company as a
 whole and each restaurant; (iii) the pursuit of new marketing strategies and
 their impact on sales and earnings; (iv) the pursuit of new cost reduction
 strategies, the time frame in which programs to designed to implement these
 strategies will be rolled out and their impact on earnings and customer
 satisfaction; (v) the impact of inflationary cost pressures, including
 increased labor and utility costs; (vi) the company's anticipated general and
 administrative expenses for fiscal 2002; (vii) the company's planned store
 openings for fiscal 2001 and fiscal 2002 and the ability of those sites to
 generate excellent returns; (viii) the company's ability to continue to
 improve profitability and increase same store sales for the balance of fiscal
 2001 and for fiscal 2002; and (ix) the company's plan to reduce its debt.
 Management cannot be certain that these strategic initiatives and marketing
 strategies will positively impact sales or earnings.  The degree of future
 inflationary cost pressure the company may experience is uncertain.  Future
 earnings could be adversely affected by inflation and there is substantial
 risk and uncertainty regarding the company's ability to recoup cost inflation
 via future price increases or productivity gains.  Current results are not
 indicative of future receptivity of the concept or increases in sales.  The
 company's restaurants operate in highly competitive environments, subject to
 continuous shifting consumer demand patterns.  More information on factors
 that could affect the company's financial results is included in the company's
 Form 10-K, filed with the Securities and Exchange Commission.
 
     Second Quarter Investor Conference Call
     Garden Fresh will host an investor conference call related to the
 financial and operating results today, Thursday, April 26, 2001 at 8:00 a.m.
 PST (11:00 a.m. EST).  President and chief executive officer Michael Mack and
 chief financial officer David Qualls will review the company's performance for
 the second quarter, and discuss their outlook for fiscal 2001.  The call will
 be open to all interested investors through a live audio Web broadcast via the
 Internet at www.gardenfreshcorp.com, www.streetfusion.com or www.vcall.com.
 For those who are not available to listen to the live broadcast, the call will
 be archived on the Web sites through 6:00 p.m., Pacific, Thursday, May 10.  A
 playback of the call will also be available through 6:00 p.m., Pacific,
 Friday, April 27 by calling (800) 633-8284 (domestic) or (858) 812-6440
 (international).  Callers should use reservation number 18607653.
 
     GARDEN FRESH RESTAURANT CORP.
     Condensed Statements of Operations
     (In thousands, except per share amounts)
     (unaudited)
                                    Three Months Ended     Six Months Ended
                                        March 31,              March 31,
                                      2001       2000       2001      2000
 
     NET SALES                      $51,322     $40,783    $94,681   $76,485
 
     COSTS AND EXPENSES
     Cost of sales                   12,482      10,190     23,441    19,267
     Restaurant operating
      expenses
       Labor                         16,660      12,763     30,999    24,366
       Occupancy and other
        expenses                     11,747       8,575     22,303    16,512
     General and administrative
      expenses                        3,308       2,690      6,542     5,017
     Restaurant opening costs           541         513      1,127     1,045
     Depreciation and amortization    3,041       2,291      5,929     4,447
 
     Total costs and expenses        47,779      37,022     90,341    70,654
 
     OPERATING INCOME                 3,543       3,761      4,340     5,831
 
     Interest income                     43          38        110        67
     Interest expense                (1,193)       (808)    (2,344)   (1,532)
     Other income (expense), net        (60)        105      1,169        50
 
     Income before income taxes and
      cumulative effect of accounting
      change                          2,333       3,096      3,275     4,416
      Provision for income taxes       (925)     (1,229)    (1,296)   (1,748)
     Income before cumulative effect
      of accounting change            1,408       1,867      1,979     2,668
     Cumulative effect of change
      in accounting for startup
      costs, net of income tax
      benefit of $800                    --          --         --    (1,233)
 
     NET INCOME                      $1,408      $1,867     $1,979    $1,435
 
     Basic net income per share:
      Income before cumulative
       effect of accounting change    $0.25       $0.33      $0.35     $0.47
      Cumulative effect of change
       in accounting for startup
       costs                            $--         $--        $--    $(0.22)
      Net income                      $0.25       $0.33      $0.35     $0.25
      Shares used in computing basic
       net income per share           5,665       5,641      5,665     5,639
     Diluted net income per share:
      Income before cumulative
       effect of accounting change    $0.25       $0.32      $0.35     $0.46
      Cumulative effect of change
       in accounting for startup
       costs                             --          --         --     (0.21)
      Net income                      $0.25       $0.32      $0.35     $0.25
      Shares used in computing
       diluted net income per share   5,670       5,796      5,677     5,833
 
 
     GARDEN FRESH RESTAURANT CORP.
     Condensed Balance Sheet
     (Dollars in thousands)
 
                                                 March 31,      September 30,
                                                    2001             2000
                                                (unaudited)
     ASSETS
 
     Current assets:
      Cash and cash equivalents                    $2,058             $2,058
      Inventories                                   7,284              6,383
      Other current assets                          2,765              1,273
 
        Total current assets                       12,107              9,714
 
     Property and equipment, net                  140,641            135,535
     Intangibles and other assets                   2,148              1,939
 
        Total assets                             $154,896           $147,188
 
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
 
     Current liabilities:
      Accounts payable                             $7,473             $9,701
      Revolving line of credit                      8,000             12,000
      Current portion of long-term debt             9,449              8,942
      Current deferred income taxes                   382                218
      Accrued liabilities                          11,150              7,928
 
        Total current liabilities                  36,454             38,789
 
      Deferred income taxes                         4,202              3,745
      Long-term debt, net of current portion       37,620             30,612
      Other liabilities                             2,882              2,371
 
     Shareholders' equity:
      Common stock, $.01 par value: 12,000,000
       shares authorized at March 31, 2001 and
       September 30, 2000; 5,665,719 and
       5,655,645 issued and outstanding at
       March 31, 2001 and September 30, 2000,
       respectively                                    57                 57
      Additional paid-in capital                   59,606             59,518
      Retained earnings                            14,075             12,096
 
        Total shareholders' equity                 73,738             71,671
 
        Total liabilities and shareholders'
         equity                                  $154,896           $147,188
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X84586667
 
 SOURCE  Garden Fresh Restaurant Corp.