Morton's Restaurant Group Reports Record 2001 First Quarter Net Income Per Diluted Share of $0.62

Apr 26, 2001, 01:00 ET from Morton's Restaurant Group, Inc.

    NEW HYDE PARK, N.Y., April 26 /PRNewswire/ -- Morton's Restaurant Group,
 Inc. (NYSE:   MRG) today reported 2001 first quarter revenues of $66,342,000, up
 4.3% over 2000 first quarter revenues of $63,595,000.  Net income for the 2001
 first quarter was $2,744,000, or $0.62 per diluted share, versus 2000 first
 quarter net income of $3,051,000, or $0.58 per diluted share.
     Allen J. Bernstein, chairman, president and chief executive officer of
 Morton's Restaurant Group, said, "While we are pleased to report record first
 quarter revenues and earnings per share, it is clear that we are operating in
 an extremely challenging environment.  We are not insulated from current
 unfavorable business conditions and reduced business travel.  In comparison to
 our extraordinarily strong 2000 first quarter comparable restaurant revenue
 growth rate of 12.3%, Morton's 2001 first quarter, comparable restaurant
 revenues declined 3.3%.
     We continue to focus on the long term as we pursue our goal of
 strengthening the Morton's of Chicago brand as the pre-eminent, global leader
 in fine dining.
     We have executed agreements to open Morton's in Hackensack, NJ; Honolulu,
 HI; Hong Kong, our second in that region; La Jolla, CA; Los Angeles
 (downtown), CA; Louisville, KY; Reston, VA; Richmond, VA; Salt Lake City, UT
 and Sydney, Australia."
     At April 1, 2001, Morton's Restaurant Group owned and operated
 62 restaurants (57 Morton's of Chicago steakhouses and 5 Bertolini's Authentic
 Trattorias) in 51 cities and 25 states, in the continental United States,
 Puerto Rico, Canada, Hong Kong and Singapore.
     Except for the historical information contained in this news release, the
 matters addressed are forward-looking statements that involve certain risks
 and uncertainties, including but not limited to, general economic conditions,
 competitive activities, the company's expansion plans and restaurant
 profitability levels and other matters identified from time to time in the
 company's public reports and SEC filings.  Actual results may vary.
 
 
                        MORTON'S RESTAURANT GROUP, INC.
                 (amounts in thousands, except per share data)
                                  (unaudited)
 
                                                   Consolidated Statements of
                                                             Income
                                                        Three Months Ended
                                                      April 1,       April 2,
                                                        2001          2000
 
     Revenues                                         $66,342        $63,595
 
     Food and beverage costs                           22,670         21,422
     Restaurant operating expenses                     27,833         26,352
     Pre-opening costs, depreciation,
      amortization and non-cash charges                 2,756          3,080
     General and administrative expenses                4,932          5,058
     Marketing and promotional expenses                 2,199          1,876
     Interest expense, net                              2,032          1,448
 
         Income before income taxes                     3,920          4,359
 
     Income tax expense                                 1,176          1,308
 
         Net income                                   $ 2,744        $ 3,051
 
         Net income per share:
             Basic                                      $0.66          $0.60
             Diluted                                    $0.62          $0.58
 
     Weighted average shares outstanding:
             Basic                                      4,158          5,093
             Diluted                                    4,425          5,232
 
     Number of restaurants at:
 
         Beginning of periods                              62             58
         End of periods                                    62             58
 
 
                        MORTON'S RESTAURANT GROUP, INC.
                   (amounts in thousands, except share data)
                                  (unaudited)
 
                                                   Consolidated Balance Sheets
                                                      April 1,    December 31,
                                                        2001           2000
     Current assets:
       Cash and cash equivalents                       $1,721         $2,296
       Accounts receivable                              1,094          4,639
       Inventories                                      8,142          8,303
       Landlord construction receivables,
        prepaid expenses and other current assets       2,948          2,867
       Deferred income taxes                            5,497          5,653
           Total current assets                        19,402         23,758
 
     Property and equipment, net                       78,818         78,047
 
     Intangible assets, net of accumulated
      amortization of $4,769 at April 1, 2001
      and $4,668 at December 31, 2000                  11,226         11,327
     Deferred income taxes                              4,025          4,866
     Other assets and deferred expenses, net
      of accumulated amortization of $556 at
      April 1, 2001 and $518 at December 31, 2000       6,782          6,412
 
                                                     $120,253       $124,410
 
     Current liabilities:
       Accounts payable and accrued expenses          $23,191        $30,052
       Current portion of obligations to
        financial institutions and capital leases       4,855          4,759
       Accrued income taxes                               126          1,004
 
           Total current liabilities                   28,172         35,815
 
     Obligations to financial institutions and
      capital leases, less current maturities          85,988         85,012
     Other liabilities                                  4,181          4,506
           Total liabilities                          118,341        125,333
 
     Stockholders' equity:
       Preferred stock, $.01 par value per share.
        Authorized 3,000,000 shares, no shares
        issued or outstanding                              --             --
       Common stock, $.01 par value per share.
        Authorized 25,000,000 shares, issued
        6,796,851 at April 1, 2001 and 6,778,363
        at December 31, 2000                               68             68
       Nonvoting common stock, $.01 par value per
        share. Authorized 3,000,000 shares, no
        shares issued or outstanding                       --             --
       Additional paid-in capital                      63,307         63,077
       Accumulated other comprehensive
        income (loss)                                   (313)          (150)
       Accumulated deficit                           (14,340)       (17,084)
       Less treasury stock, at cost,
        2,628,953 shares at April 1, 2001
        and 2,630,361 shares at
        December 31, 2000                            (46,810)       (46,834)
 
           Total stockholders' equity (deficit)         1,912          (923)
 
                                                     $120,253       $124,410
 
 

SOURCE Morton's Restaurant Group, Inc.
    NEW HYDE PARK, N.Y., April 26 /PRNewswire/ -- Morton's Restaurant Group,
 Inc. (NYSE:   MRG) today reported 2001 first quarter revenues of $66,342,000, up
 4.3% over 2000 first quarter revenues of $63,595,000.  Net income for the 2001
 first quarter was $2,744,000, or $0.62 per diluted share, versus 2000 first
 quarter net income of $3,051,000, or $0.58 per diluted share.
     Allen J. Bernstein, chairman, president and chief executive officer of
 Morton's Restaurant Group, said, "While we are pleased to report record first
 quarter revenues and earnings per share, it is clear that we are operating in
 an extremely challenging environment.  We are not insulated from current
 unfavorable business conditions and reduced business travel.  In comparison to
 our extraordinarily strong 2000 first quarter comparable restaurant revenue
 growth rate of 12.3%, Morton's 2001 first quarter, comparable restaurant
 revenues declined 3.3%.
     We continue to focus on the long term as we pursue our goal of
 strengthening the Morton's of Chicago brand as the pre-eminent, global leader
 in fine dining.
     We have executed agreements to open Morton's in Hackensack, NJ; Honolulu,
 HI; Hong Kong, our second in that region; La Jolla, CA; Los Angeles
 (downtown), CA; Louisville, KY; Reston, VA; Richmond, VA; Salt Lake City, UT
 and Sydney, Australia."
     At April 1, 2001, Morton's Restaurant Group owned and operated
 62 restaurants (57 Morton's of Chicago steakhouses and 5 Bertolini's Authentic
 Trattorias) in 51 cities and 25 states, in the continental United States,
 Puerto Rico, Canada, Hong Kong and Singapore.
     Except for the historical information contained in this news release, the
 matters addressed are forward-looking statements that involve certain risks
 and uncertainties, including but not limited to, general economic conditions,
 competitive activities, the company's expansion plans and restaurant
 profitability levels and other matters identified from time to time in the
 company's public reports and SEC filings.  Actual results may vary.
 
 
                        MORTON'S RESTAURANT GROUP, INC.
                 (amounts in thousands, except per share data)
                                  (unaudited)
 
                                                   Consolidated Statements of
                                                             Income
                                                        Three Months Ended
                                                      April 1,       April 2,
                                                        2001          2000
 
     Revenues                                         $66,342        $63,595
 
     Food and beverage costs                           22,670         21,422
     Restaurant operating expenses                     27,833         26,352
     Pre-opening costs, depreciation,
      amortization and non-cash charges                 2,756          3,080
     General and administrative expenses                4,932          5,058
     Marketing and promotional expenses                 2,199          1,876
     Interest expense, net                              2,032          1,448
 
         Income before income taxes                     3,920          4,359
 
     Income tax expense                                 1,176          1,308
 
         Net income                                   $ 2,744        $ 3,051
 
         Net income per share:
             Basic                                      $0.66          $0.60
             Diluted                                    $0.62          $0.58
 
     Weighted average shares outstanding:
             Basic                                      4,158          5,093
             Diluted                                    4,425          5,232
 
     Number of restaurants at:
 
         Beginning of periods                              62             58
         End of periods                                    62             58
 
 
                        MORTON'S RESTAURANT GROUP, INC.
                   (amounts in thousands, except share data)
                                  (unaudited)
 
                                                   Consolidated Balance Sheets
                                                      April 1,    December 31,
                                                        2001           2000
     Current assets:
       Cash and cash equivalents                       $1,721         $2,296
       Accounts receivable                              1,094          4,639
       Inventories                                      8,142          8,303
       Landlord construction receivables,
        prepaid expenses and other current assets       2,948          2,867
       Deferred income taxes                            5,497          5,653
           Total current assets                        19,402         23,758
 
     Property and equipment, net                       78,818         78,047
 
     Intangible assets, net of accumulated
      amortization of $4,769 at April 1, 2001
      and $4,668 at December 31, 2000                  11,226         11,327
     Deferred income taxes                              4,025          4,866
     Other assets and deferred expenses, net
      of accumulated amortization of $556 at
      April 1, 2001 and $518 at December 31, 2000       6,782          6,412
 
                                                     $120,253       $124,410
 
     Current liabilities:
       Accounts payable and accrued expenses          $23,191        $30,052
       Current portion of obligations to
        financial institutions and capital leases       4,855          4,759
       Accrued income taxes                               126          1,004
 
           Total current liabilities                   28,172         35,815
 
     Obligations to financial institutions and
      capital leases, less current maturities          85,988         85,012
     Other liabilities                                  4,181          4,506
           Total liabilities                          118,341        125,333
 
     Stockholders' equity:
       Preferred stock, $.01 par value per share.
        Authorized 3,000,000 shares, no shares
        issued or outstanding                              --             --
       Common stock, $.01 par value per share.
        Authorized 25,000,000 shares, issued
        6,796,851 at April 1, 2001 and 6,778,363
        at December 31, 2000                               68             68
       Nonvoting common stock, $.01 par value per
        share. Authorized 3,000,000 shares, no
        shares issued or outstanding                       --             --
       Additional paid-in capital                      63,307         63,077
       Accumulated other comprehensive
        income (loss)                                   (313)          (150)
       Accumulated deficit                           (14,340)       (17,084)
       Less treasury stock, at cost,
        2,628,953 shares at April 1, 2001
        and 2,630,361 shares at
        December 31, 2000                            (46,810)       (46,834)
 
           Total stockholders' equity (deficit)         1,912          (923)
 
                                                     $120,253       $124,410
 
 SOURCE  Morton's Restaurant Group, Inc.