New World Reports Net Income of $6.0 Million in Fiscal 2000, Increase of 175% Compared to $2.4 Million in Fiscal 1999

Apr 18, 2001, 01:00 ET from New World Coffee-Manhattan Bagel, Inc.

    EATONTOWN, N.J., April 18 /PRNewswire/ --
 New World Coffee-Manhattan Bagel, Inc. (Nasdaq: NWCI) today reported net
 income of $6.0 million for the fiscal year ended December 31, 2000, an
 increase of 175% compared to $2.4 million in fiscal 1999.
     After deducting dividends, accretion and beneficial conversion on
 preferred stock of $2.1 million, the Company reported net income available to
 common stockholders of $3.9 million in fiscal 2000 compared to $2.4 million in
 the prior year.  The net income figures included a $3.1 million net operating
 loss tax benefit in fiscal 2000, and a $240,000 extraordinary net gain from
 early extinguishment of debt in fiscal 1999.  Net income per common share rose
 33.3% to $0.32 from $0.24 the previous year.  Excluding the extraordinary debt
 extinguishment item, earnings per share for 2000 increased 45.4% from $0.22 in
 fiscal 1999.
     As previously reported, total revenues for the 12 months grew 14.5% to
 $45.7 million from $39.9 million in 1999.  Manufacturing revenues increased
 3.6% to $26.0 million from $25.1 million the previous year.
 Franchised-related revenues expanded 25.0% to $7.7 million from $6.2 million.
 Retail sales climbed 38.7% to $12.0 million from $8.6 million, due primarily
 to the acquisition of additional Company-owned stores.
     Earnings before interest, taxes, depreciation and amortization (EBITDA)
 advanced 36.7% to $8.0 million, or 17.5% of revenues, during 2000, from
 $5.8 million or 14.6% of revenues, in 1999.
     "We were pleased to continue our trend of strong, double-digit growth in
 revenues and earnings," said Ramin Kamfar, New World Chairman and CEO.  "These
 profitable results again validate our business model as the only vertically
 integrated company in the retail bagel industry.  Our ability to grow EBITDA
 at a faster rate than revenues reflected ongoing improvements in our cost
 structure.  Cost of sales decreased to 81.7% of related manufacturing and
 retail sales in 2000 from 82.8% in 1999, as we were able to leverage existing
 plant capacity on higher manufacturing sales volumes.  At the same time,
 general and administrative expenses declined to 14.6% of revenues in 2000 from
 15.4% in 1999, as we continued to leverage our existing infrastructure."
 
     New World Coffee-Manhattan Bagel, Inc. currently franchises, licenses or
 owns stores under its four brands in 26 states and Washington, D.C. The
 Company is vertically integrated in bagel dough manufacturing and coffee
 roasting, with plants in New Jersey, California and Connecticut.
 
     Certain statements in this press release constitute forward-looking
 statements or statements which may be deemed or construed to be
 forward-looking statements within the meaning of the Private Securities
 Litigation Reform Act of 1995.  The words "forecast," "estimate," "project,"
 "intend," "expect," "should," "would" and similar expressions and all
 statements which are not historical facts are intended to identify
 forward-looking statements.  These forward-looking statements involve and are
 subject to known and unknown risks, uncertainties and other factors which
 could cause the Company's actual results, performance (financial or
 operating), or achievements to differ from the future results, performance
 (financial or operating), or achievements expressed or implied by such
 forward-looking statements.  The above factors are more fully discussed in the
 Company's SEC filings.
 
          NEW WORLD COFFEE -- MANHATTAN BAGEL, INC. AND SUBSIDIARIES,
    FINANCIAL HIGHLIGHTS FOR THE YEARS ENDED DEC. 31, 2000 AND DEC. 26, 1999
 
                                                      2000           1999
     Revenues:
         Manufacturing revenues                   $26,011,188    $25,104,635
         Franchise-related revenues                 7,714,511      6,171,413
         Retail sales                              11,997,182      8,649,350
     Total Revenues                                45,722,881     39,925,398
 
     Income before income taxes
      and extraordinary item                        2,910,748      2,184,075
 
     Income tax benefit                             3,100,178             --
 
     Income before extraordinary item               6,010,926      2,184,075
 
     Extraordinary item
     Net gain from early extinquishment of debt            --        240,023
 
     Net Income                                     6,010,926      2,424,098
 
     Dividends, accretion and beneficial
      conversion on preferred stock                 2,127,713             --
 
     Net income available to common stockholders   $3,883,213     $2,424,098
 
     Net income per common share - Basic
     Income before extraordinary item                    $.32           $.22
 
     Extraordinary item                                   $--           $.02
 
     Net income                                          $.32           $.24
 
     Net income per common share - Diluted
     Income before extraordinary item                    $.29           $.21
 
     Extraordinary item                                   $--           $.02
 
     Net income                                          $.29           $.23
 
     Weighted average number of
      common shares outstanding:
     Basic                                         12,074,356     10,317,490
 
     Diluted                                       13,374,975     10,692,613
 
 

SOURCE New World Coffee-Manhattan Bagel, Inc.
    EATONTOWN, N.J., April 18 /PRNewswire/ --
 New World Coffee-Manhattan Bagel, Inc. (Nasdaq: NWCI) today reported net
 income of $6.0 million for the fiscal year ended December 31, 2000, an
 increase of 175% compared to $2.4 million in fiscal 1999.
     After deducting dividends, accretion and beneficial conversion on
 preferred stock of $2.1 million, the Company reported net income available to
 common stockholders of $3.9 million in fiscal 2000 compared to $2.4 million in
 the prior year.  The net income figures included a $3.1 million net operating
 loss tax benefit in fiscal 2000, and a $240,000 extraordinary net gain from
 early extinguishment of debt in fiscal 1999.  Net income per common share rose
 33.3% to $0.32 from $0.24 the previous year.  Excluding the extraordinary debt
 extinguishment item, earnings per share for 2000 increased 45.4% from $0.22 in
 fiscal 1999.
     As previously reported, total revenues for the 12 months grew 14.5% to
 $45.7 million from $39.9 million in 1999.  Manufacturing revenues increased
 3.6% to $26.0 million from $25.1 million the previous year.
 Franchised-related revenues expanded 25.0% to $7.7 million from $6.2 million.
 Retail sales climbed 38.7% to $12.0 million from $8.6 million, due primarily
 to the acquisition of additional Company-owned stores.
     Earnings before interest, taxes, depreciation and amortization (EBITDA)
 advanced 36.7% to $8.0 million, or 17.5% of revenues, during 2000, from
 $5.8 million or 14.6% of revenues, in 1999.
     "We were pleased to continue our trend of strong, double-digit growth in
 revenues and earnings," said Ramin Kamfar, New World Chairman and CEO.  "These
 profitable results again validate our business model as the only vertically
 integrated company in the retail bagel industry.  Our ability to grow EBITDA
 at a faster rate than revenues reflected ongoing improvements in our cost
 structure.  Cost of sales decreased to 81.7% of related manufacturing and
 retail sales in 2000 from 82.8% in 1999, as we were able to leverage existing
 plant capacity on higher manufacturing sales volumes.  At the same time,
 general and administrative expenses declined to 14.6% of revenues in 2000 from
 15.4% in 1999, as we continued to leverage our existing infrastructure."
 
     New World Coffee-Manhattan Bagel, Inc. currently franchises, licenses or
 owns stores under its four brands in 26 states and Washington, D.C. The
 Company is vertically integrated in bagel dough manufacturing and coffee
 roasting, with plants in New Jersey, California and Connecticut.
 
     Certain statements in this press release constitute forward-looking
 statements or statements which may be deemed or construed to be
 forward-looking statements within the meaning of the Private Securities
 Litigation Reform Act of 1995.  The words "forecast," "estimate," "project,"
 "intend," "expect," "should," "would" and similar expressions and all
 statements which are not historical facts are intended to identify
 forward-looking statements.  These forward-looking statements involve and are
 subject to known and unknown risks, uncertainties and other factors which
 could cause the Company's actual results, performance (financial or
 operating), or achievements to differ from the future results, performance
 (financial or operating), or achievements expressed or implied by such
 forward-looking statements.  The above factors are more fully discussed in the
 Company's SEC filings.
 
          NEW WORLD COFFEE -- MANHATTAN BAGEL, INC. AND SUBSIDIARIES,
    FINANCIAL HIGHLIGHTS FOR THE YEARS ENDED DEC. 31, 2000 AND DEC. 26, 1999
 
                                                      2000           1999
     Revenues:
         Manufacturing revenues                   $26,011,188    $25,104,635
         Franchise-related revenues                 7,714,511      6,171,413
         Retail sales                              11,997,182      8,649,350
     Total Revenues                                45,722,881     39,925,398
 
     Income before income taxes
      and extraordinary item                        2,910,748      2,184,075
 
     Income tax benefit                             3,100,178             --
 
     Income before extraordinary item               6,010,926      2,184,075
 
     Extraordinary item
     Net gain from early extinquishment of debt            --        240,023
 
     Net Income                                     6,010,926      2,424,098
 
     Dividends, accretion and beneficial
      conversion on preferred stock                 2,127,713             --
 
     Net income available to common stockholders   $3,883,213     $2,424,098
 
     Net income per common share - Basic
     Income before extraordinary item                    $.32           $.22
 
     Extraordinary item                                   $--           $.02
 
     Net income                                          $.32           $.24
 
     Net income per common share - Diluted
     Income before extraordinary item                    $.29           $.21
 
     Extraordinary item                                   $--           $.02
 
     Net income                                          $.29           $.23
 
     Weighted average number of
      common shares outstanding:
     Basic                                         12,074,356     10,317,490
 
     Diluted                                       13,374,975     10,692,613
 
 SOURCE  New World Coffee-Manhattan Bagel, Inc.