Shoney's, Inc. Reports First Quarter Fiscal 2001 Results

Apr 04, 2001, 01:00 ET from Shoney's, Inc.

    NASHVILLE, Tenn., April 4 /PRNewswire/ --
     Shoney's, Inc. (OTC Bulletin Board:   SHOY) today announced results for its
 first quarter of fiscal year 2001.
     For the first quarter of fiscal 2001, a sixteen-week period, the Company
 reported a net loss of $9.1 million, or $0.18 per share, compared with a net
 loss of $4.0 million, or $0.08 per share, for the first quarter of 2000.
 First quarter 2001 revenues were $226.5 million compared with $242.6 million
 for the same period last year.
     Revenues for the first quarter of fiscal 2001 reflect an overall
 comparable store sales decrease of 1.6%.  Weather in many of the Company's
 markets was a factor contributing to the lower comparable store sales.  Since
 the beginning of the first quarter of 2000, 13 Shoney's and five Captain D's
 under-performing company-owned restaurants were closed and 12 Shoney's
 Restaurants and six Captain D's restaurants were sold to franchisees.  This
 reduction in Company-owned stores contributed further to the revenue decrease.
 During the first quarter of 2001, franchisees closed 13 Shoney's Restaurants
 while opening seven Captain D's restaurants (six of which were purchased from
 the company).
     Remarking on first quarter results, James M. Beltrame, CFO of Shoney's,
 Inc., said, "Shoney's Restaurants' and Captain D's experienced same store
 sales declines of 1.3% and 2.0% respectively for the quarter.  Weather played
 a role in lowering our sales and it also negatively affected utility costs in
 both concepts."
     J. Michael Bodnar, CEO of Shoney's, Inc. added, "In addition to the
 weather we feel some softness in Captain D's sales was evident during the
 first quarter.  Despite Captain D's record of seven out of eight consecutive
 years of same stores sales improvement we have commenced a thorough review of
 our marketing strategies to determine what action needs to be taken."
     "Although we can see improvement resulting from Shoney's Restaurants'
 operational initiatives we have yet to experience the economic benefits,"
 commented Raymond Schoenbaum, Chairman of the Board of Shoney's, Inc.  "As I
 stated last quarter, we may seriously consider other strategic uses of the
 assets comprising that division in order to enhance shareholder value unless
 our operational initiatives begin to result in concrete improvements within a
 reasonable time frame.  We remain committed to that option."
     Shoney's, Inc. is headquartered in Nashville, Tennessee.  As of
 February 18, 2001, Shoney's, Inc. owned, operated and franchised 1,006
 restaurants in 27 states, including 594 Company-owned and 412 franchised
 restaurants, under the names Shoney's Restaurants and Captain D's Seafood
 Restaurants.  Shoney's, Inc. is traded on the OTC Bulletin Board under the
 symbol "SHOY."
 
     Certain statements in this release are "forward looking statements" within
 the meaning of the Private Securities Litigation Reform Act of 1995.  All
 forward looking statements involve risks and uncertainties which, in many
 cases, are beyond the control of the Company and could cause actual results to
 differ materially.  The Company undertakes no obligation to update any forward
 looking statements, or to make any other forward looking statements, whether
 as a result of new information, future events or otherwise.  Further
 information on factors which could affect the Company's financial results is
 contained in the Company's filings with the Securities and Exchange
 Commission, including the ability of management to implement successfully its
 strategy for improving Shoney's Restaurants performance, the ability to effect
 asset sales consistent with the projected proceeds and timing expectations,
 the results of pending litigation, adequacy of management personnel resources,
 shortages of restaurant labor, commodity price increases, product shortages,
 adverse general economic conditions, turnover and a variety of other factors.
 
 
                        SHONEY'S, INC. AND SUBSIDIARIES
                      Consolidated Condensed Balance Sheet
 
                                       February 18,          October 29,
                                           2001        %        2000        %
     ASSETS
 
     Current Assets
      Cash and cash equivalents         $8,969,523    2.7    $7,980,996    2.4
      Inventories                       26,552,280    8.1    29,552,651    8.7
      Other current assets              16,640,915    5.1    16,724,594    4.9
      Net property, plant, and
       equipment held for sale          21,584,398    6.7    22,887,211    6.8
        Total Current Assets            73,747,116   22.6    77,145,452   22.8
 
     Property, Plant and Equipment     541,520,040  165.9   546,271,873  161.4
      Less accumulated depreciation
       and amortization               (317,906,908) (97.4) (315,773,546) (93.3)
        Net Property, Plant and
         Equipment                     223,613,132   68.5   230,498,327   68.1
 
     Other Assets                       29,025,289    8.9    30,784,357    9.1
                                      $326,385,537  100.0  $338,428,136  100.0
 
     LIABILITIES AND SHAREHOLDERS'
      DEFICIT
 
 
     Current Liabilities
       Accounts payable                $27,085,435    8.3   $26,655,872    7.9
       Accrued expenses                 54,689,318   16.8    57,810,119   17.1
       Debt and capital lease
        obligations
        due within one year            141,923,118   43.4    21,106,938    6.2
         Total Current Liabilities     223,697,871   68.5   105,572,929   31.2
 
     Long-term debt and capital lease
       obligations due after one year  145,536,983   44.6   263,341,756   77.8
     Other liabilities                  52,792,619   16.2    55,500,272   16.4
 
 
     Shareholders' Deficit
      Common stock                      51,693,846   15.8    50,659,282   15.0
      Additional paid-in capital       136,921,990   42.0   137,521,843   40.6
      Accumulated deficit             (283,260,143) (86.8) (274,167,946) (81.0)
      Accumulated other
       comprehensive loss                 (997,629)  (0.3)
        Total Shareholders' Deficit    (95,641,936) (29.3)  (85,986,821) (25.4)
                                      $326,385,537  100.0  $338,428,136  100.0
 
 
                        SHONEY'S, INC. AND SUBSIDIARIES
                 Consolidated Condensed Statement of Operations
             Sixteen Ended February 18, 2001 and February 20, 2000
 
 
                                           2001                2000
                                          Amount       %      Amount       %
 
     Revenues
      Net sales                       $219,018,686   96.7  $234,557,911   96.7
      Franchise fees                     3,782,236    1.7     4,140,748    1.7
      Other income                       3,728,068    1.6     3,927,941    1.6
                                       226,528,990  100.0   242,626,600  100.0
 
     Cost of sales                     205,511,409   90.7   216,171,110   89.1
     General and administrative         18,990,543    8.4    18,540,944    7.6
     Interest expense                   11,047,235    4.9    11,761,795    4.9
 
                                       235,549,187  104.0   246,473,849  101.6
 
     Loss from continuing operations
      before income taxes               (9,020,197)  (4.0)   (3,847,249)  (1.6)
 
     Provision for income taxes             72,000    0.0       112,000    0.0
 
     Net loss from continuing
      operations                        (9,092,197)  (4.0)   (3,959,249)  (1.6)
 
     Loss on discontinued operations,
      net of tax                                --     --       (15,488)   0.0
 
     Net loss                          $(9,092,197)  (4.0)  $(3,974,737)  (1.6)
 
     Basic and diluted:
      Net loss from continuing
       operations                           ($0.18)              ($0.08)
      Discontinued operations                   --                 0.00
      Net loss                              ($0.18)               $0.08
 
 
 
 
     Weighted average shares
      outstanding
 
       Basic and diluted                51,196,068           50,028,705
 
 
 
                        SHONEY'S, INC. AND SUBSIDIARIES
                 Consolidated Condensed Statement of Cash Flows
 
 
 
                                                     Sixteen Weeks Ended
                                                 February 18,     February 20,
                                                     2001             2000
 
     Operating activities
      Net loss                                 $(9,092,197)      $(3,974,737)
       Adjustments to reconcile net loss
        to net cash used by operating activities:
         Loss from discontinued operations,
          net of income taxes                           --            15,488
         Depreciation and
          amortization                           9,167,916        10,872,296
         Amortization of deferred charges and
          other non-cash charges                 2,202,919         4,630,811
         Gain on disposal of property, plant
          and equipment                         (2,980,001)       (3,690,137)
         Changes in operating assets and
          liabilities                           (1,471,157)      (12,911,558)
           Net cash used by continuing
            operating activities                (2,172,520)       (5,057,837)
           Net cash provided by discontinued
            operating activities                        --           493,085
 
           Net cash used by operating
            activities                          (2,172,520)       (4,564,752)
 
     Investing activities
      Cash required for property, plant and
       equipment                                (4,507,593)       (6,411,460)
      Cash required for assets held for sale            --          (233,469)
      Proceeds from disposal of property, plant
       and equipment                             5,368,071        12,024,276
      Cash provided by other assets                174,814            15,831
 
           Net cash provided by investing
            activities                           1,035,292         5,395,178
 
     Financing activities
      Payments on long-term debt and capital
       lease obligations                       (19,339,237)      (13,753,388)
      Proceeds from long-term debt              23,000,000        15,000,000
      Net payments on short-term debt             (747,300)       (3,444,000)
      Payments on litigation settlements                --           (22,664)
      Cash required for debt issue costs          (787,708)         (746,075)
 
           Net cash provided (used) by financing
            activities                           2,125,755        (2,966,127)
 
      Change in cash and cash equivalents         $988,527       $(2,135,701)
 
 
     Investor Relations: www.shoneys.com
 
 

SOURCE Shoney's, Inc.
    NASHVILLE, Tenn., April 4 /PRNewswire/ --
     Shoney's, Inc. (OTC Bulletin Board:   SHOY) today announced results for its
 first quarter of fiscal year 2001.
     For the first quarter of fiscal 2001, a sixteen-week period, the Company
 reported a net loss of $9.1 million, or $0.18 per share, compared with a net
 loss of $4.0 million, or $0.08 per share, for the first quarter of 2000.
 First quarter 2001 revenues were $226.5 million compared with $242.6 million
 for the same period last year.
     Revenues for the first quarter of fiscal 2001 reflect an overall
 comparable store sales decrease of 1.6%.  Weather in many of the Company's
 markets was a factor contributing to the lower comparable store sales.  Since
 the beginning of the first quarter of 2000, 13 Shoney's and five Captain D's
 under-performing company-owned restaurants were closed and 12 Shoney's
 Restaurants and six Captain D's restaurants were sold to franchisees.  This
 reduction in Company-owned stores contributed further to the revenue decrease.
 During the first quarter of 2001, franchisees closed 13 Shoney's Restaurants
 while opening seven Captain D's restaurants (six of which were purchased from
 the company).
     Remarking on first quarter results, James M. Beltrame, CFO of Shoney's,
 Inc., said, "Shoney's Restaurants' and Captain D's experienced same store
 sales declines of 1.3% and 2.0% respectively for the quarter.  Weather played
 a role in lowering our sales and it also negatively affected utility costs in
 both concepts."
     J. Michael Bodnar, CEO of Shoney's, Inc. added, "In addition to the
 weather we feel some softness in Captain D's sales was evident during the
 first quarter.  Despite Captain D's record of seven out of eight consecutive
 years of same stores sales improvement we have commenced a thorough review of
 our marketing strategies to determine what action needs to be taken."
     "Although we can see improvement resulting from Shoney's Restaurants'
 operational initiatives we have yet to experience the economic benefits,"
 commented Raymond Schoenbaum, Chairman of the Board of Shoney's, Inc.  "As I
 stated last quarter, we may seriously consider other strategic uses of the
 assets comprising that division in order to enhance shareholder value unless
 our operational initiatives begin to result in concrete improvements within a
 reasonable time frame.  We remain committed to that option."
     Shoney's, Inc. is headquartered in Nashville, Tennessee.  As of
 February 18, 2001, Shoney's, Inc. owned, operated and franchised 1,006
 restaurants in 27 states, including 594 Company-owned and 412 franchised
 restaurants, under the names Shoney's Restaurants and Captain D's Seafood
 Restaurants.  Shoney's, Inc. is traded on the OTC Bulletin Board under the
 symbol "SHOY."
 
     Certain statements in this release are "forward looking statements" within
 the meaning of the Private Securities Litigation Reform Act of 1995.  All
 forward looking statements involve risks and uncertainties which, in many
 cases, are beyond the control of the Company and could cause actual results to
 differ materially.  The Company undertakes no obligation to update any forward
 looking statements, or to make any other forward looking statements, whether
 as a result of new information, future events or otherwise.  Further
 information on factors which could affect the Company's financial results is
 contained in the Company's filings with the Securities and Exchange
 Commission, including the ability of management to implement successfully its
 strategy for improving Shoney's Restaurants performance, the ability to effect
 asset sales consistent with the projected proceeds and timing expectations,
 the results of pending litigation, adequacy of management personnel resources,
 shortages of restaurant labor, commodity price increases, product shortages,
 adverse general economic conditions, turnover and a variety of other factors.
 
 
                        SHONEY'S, INC. AND SUBSIDIARIES
                      Consolidated Condensed Balance Sheet
 
                                       February 18,          October 29,
                                           2001        %        2000        %
     ASSETS
 
     Current Assets
      Cash and cash equivalents         $8,969,523    2.7    $7,980,996    2.4
      Inventories                       26,552,280    8.1    29,552,651    8.7
      Other current assets              16,640,915    5.1    16,724,594    4.9
      Net property, plant, and
       equipment held for sale          21,584,398    6.7    22,887,211    6.8
        Total Current Assets            73,747,116   22.6    77,145,452   22.8
 
     Property, Plant and Equipment     541,520,040  165.9   546,271,873  161.4
      Less accumulated depreciation
       and amortization               (317,906,908) (97.4) (315,773,546) (93.3)
        Net Property, Plant and
         Equipment                     223,613,132   68.5   230,498,327   68.1
 
     Other Assets                       29,025,289    8.9    30,784,357    9.1
                                      $326,385,537  100.0  $338,428,136  100.0
 
     LIABILITIES AND SHAREHOLDERS'
      DEFICIT
 
 
     Current Liabilities
       Accounts payable                $27,085,435    8.3   $26,655,872    7.9
       Accrued expenses                 54,689,318   16.8    57,810,119   17.1
       Debt and capital lease
        obligations
        due within one year            141,923,118   43.4    21,106,938    6.2
         Total Current Liabilities     223,697,871   68.5   105,572,929   31.2
 
     Long-term debt and capital lease
       obligations due after one year  145,536,983   44.6   263,341,756   77.8
     Other liabilities                  52,792,619   16.2    55,500,272   16.4
 
 
     Shareholders' Deficit
      Common stock                      51,693,846   15.8    50,659,282   15.0
      Additional paid-in capital       136,921,990   42.0   137,521,843   40.6
      Accumulated deficit             (283,260,143) (86.8) (274,167,946) (81.0)
      Accumulated other
       comprehensive loss                 (997,629)  (0.3)
        Total Shareholders' Deficit    (95,641,936) (29.3)  (85,986,821) (25.4)
                                      $326,385,537  100.0  $338,428,136  100.0
 
 
                        SHONEY'S, INC. AND SUBSIDIARIES
                 Consolidated Condensed Statement of Operations
             Sixteen Ended February 18, 2001 and February 20, 2000
 
 
                                           2001                2000
                                          Amount       %      Amount       %
 
     Revenues
      Net sales                       $219,018,686   96.7  $234,557,911   96.7
      Franchise fees                     3,782,236    1.7     4,140,748    1.7
      Other income                       3,728,068    1.6     3,927,941    1.6
                                       226,528,990  100.0   242,626,600  100.0
 
     Cost of sales                     205,511,409   90.7   216,171,110   89.1
     General and administrative         18,990,543    8.4    18,540,944    7.6
     Interest expense                   11,047,235    4.9    11,761,795    4.9
 
                                       235,549,187  104.0   246,473,849  101.6
 
     Loss from continuing operations
      before income taxes               (9,020,197)  (4.0)   (3,847,249)  (1.6)
 
     Provision for income taxes             72,000    0.0       112,000    0.0
 
     Net loss from continuing
      operations                        (9,092,197)  (4.0)   (3,959,249)  (1.6)
 
     Loss on discontinued operations,
      net of tax                                --     --       (15,488)   0.0
 
     Net loss                          $(9,092,197)  (4.0)  $(3,974,737)  (1.6)
 
     Basic and diluted:
      Net loss from continuing
       operations                           ($0.18)              ($0.08)
      Discontinued operations                   --                 0.00
      Net loss                              ($0.18)               $0.08
 
 
 
 
     Weighted average shares
      outstanding
 
       Basic and diluted                51,196,068           50,028,705
 
 
 
                        SHONEY'S, INC. AND SUBSIDIARIES
                 Consolidated Condensed Statement of Cash Flows
 
 
 
                                                     Sixteen Weeks Ended
                                                 February 18,     February 20,
                                                     2001             2000
 
     Operating activities
      Net loss                                 $(9,092,197)      $(3,974,737)
       Adjustments to reconcile net loss
        to net cash used by operating activities:
         Loss from discontinued operations,
          net of income taxes                           --            15,488
         Depreciation and
          amortization                           9,167,916        10,872,296
         Amortization of deferred charges and
          other non-cash charges                 2,202,919         4,630,811
         Gain on disposal of property, plant
          and equipment                         (2,980,001)       (3,690,137)
         Changes in operating assets and
          liabilities                           (1,471,157)      (12,911,558)
           Net cash used by continuing
            operating activities                (2,172,520)       (5,057,837)
           Net cash provided by discontinued
            operating activities                        --           493,085
 
           Net cash used by operating
            activities                          (2,172,520)       (4,564,752)
 
     Investing activities
      Cash required for property, plant and
       equipment                                (4,507,593)       (6,411,460)
      Cash required for assets held for sale            --          (233,469)
      Proceeds from disposal of property, plant
       and equipment                             5,368,071        12,024,276
      Cash provided by other assets                174,814            15,831
 
           Net cash provided by investing
            activities                           1,035,292         5,395,178
 
     Financing activities
      Payments on long-term debt and capital
       lease obligations                       (19,339,237)      (13,753,388)
      Proceeds from long-term debt              23,000,000        15,000,000
      Net payments on short-term debt             (747,300)       (3,444,000)
      Payments on litigation settlements                --           (22,664)
      Cash required for debt issue costs          (787,708)         (746,075)
 
           Net cash provided (used) by financing
            activities                           2,125,755        (2,966,127)
 
      Change in cash and cash equivalents         $988,527       $(2,135,701)
 
 
     Investor Relations: www.shoneys.com
 
 SOURCE  Shoney's, Inc.