Steakhouse Partners, Inc. Announces Fiscal Year-End Results

Apr 04, 2001, 01:00 ET from Steakhouse Partners Inc.

    SAN DIEGO, April 4 /PRNewswire/ -- Steakhouse Partners, Inc.
 (Nasdaq: SIZL), today reported financial results for the sixteen weeks and
 fifty-two weeks ended December 26, 2000.
 
     Q4    2000    "Going concern" removed by outside accountants
     Q4    2000    Company achieves NASDAQ net tangible asset requirements
     Q4    2000    Paragon Net Income up 20.8% to $2.9 million from
                   $2.4 million
     FY    2000    Paragon same store sales up 4.1%
     FY    2000    Consolidated EBITDA up 60.5% to $6.9 million from
                   $4.3 million
     FY    2000    Consolidated Net Loss down 84.6% to ($0.6) million from a
                   loss of ($3.9) million
 
     Q4 2000 solid consolidated results and improved financial performance
 allow outside accountants to remove the "going concern" issue as of the
 year-end audit.
     Q4 2000 solid consolidated results and improved financial performance
 increased net tangible assets to almost $2.2 million versus the minimum of
 $2.0 million as required by NASDAQ.
     Q4 2000 Paragon Restaurants net income of $2.9 million for the sixteen
 weeks ended December 26, 2000 was up from a gain of $2.4 million for the same
 period in 1999, in spite of losing 6.7% of fourth quarter mid-west business
 due to severe winter storms.
     FY 2000 same store sales for Paragon Restaurants were up 4.1% from the
 comparable sixteen weeks of 1999 to $121.0 million for 64 stores.
     FY 2000 consolidated EBITDA for the fifty-two weeks ended December 26,
 2000 was $6.9 million up dramatically from $4.3 million for the corresponding
 period in 1999.
     FY 2000 for the fifty-two weeks ended December 26, 2000 consolidated net
 loss was ($0.6) million versus a loss of ($3.9) million for the corresponding
 period of fiscal 1999.  Consolidated net income of $0.5 million (which
 included a $0.6 million write down of non performing assets) for the sixteen
 weeks ended December 26, 2000 was down slightly from a $0.8 million gain for
 the same period in 1999.
 
     Commenting on the results, Richard M. Lee, Chairman of the Board and Chief
 Executive Officer of the company, said, "We are pleased that the auditors see
 Paragon today as an on going business.  We believe we have met all NASDAQ
 requirements to continue our listing on NASDAQ small cap.  We are not pleased
 with our consolidated loss of $0.18 per share.  We were clearly on track to
 exceeding our 1999 projections when our mid-west stores sales were devastated
 by winter storms that we haven't seen for many years.  The latter, coupled
 with the one-time write down of $1.9 million between Pacific Basin Foods and
 Paragon led to us missing our 2000 net earnings projections," said Mr. Lee.
     "However, our steakhouse business continues to grow.  Many of our stores
 that were not affected by the storms earned all-time sales and profits
 records.  Our plan for FY 2001 is new stores!  We will continue to extend our
 leadership position in the step-up price category ($25 - $35 per check
 average).  We believe this segment to have the best trends in regards to
 market size and growth vibrancy in the steakhouse industry.  We believe our
 new stores will be tremendous benefactors of these latter trends," continued
 Mr. Lee.
     "I think it's important for investors to understand that Paragon today has
 achieved a scale of economics that will reward the company tremendously with
 any new profit stream either via new stores, remodels or new licensing
 agreements.  We have steakhouses that are achieving average revenues of
 $4 million annually.  It is these steakhouses that we are planning to stamp
 duplicates of as we grow new stores.  It is easy to see our people's
 excitement regarding Paragon's future, when you consider our strong brands,
 successful steakhouse models, our management team, and the fact that we have
 today, a solid foundation to build upon," concluded Mr. Lee, Chairman and CEO.
     Business Outlook:  The following statements are based on current
 expectations of management.
 
     --   The Company plans on remodeling, and/or converting three to five
          stores in year 2001
     --   The Company expects FY 2001 per share earnings to be between
          $0.20 to $0.45.
     --   The Company expects same store sales to increase between 1.0% to 2.0%
     --   The Company continues to seek turn around acquisitions.
 
     Except for the historical information contained herein, this news release
 contains forward-looking statements, which involve risk and uncertainties,
 including the risk that actual growth, remodeling/building new stores and
 earnings per share could differ materially from the results that may be
 indicated by such forward-looking statements.  Factors that could cause or
 contribute to such differences include, but are not limited to, the
 developments and market acceptance of new brands, and market conditions in the
 steakhouse segment, as well as other risks detailed from time to time in
 Steakhouse Partner's SEC reports.
 
 

SOURCE Steakhouse Partners Inc.
    SAN DIEGO, April 4 /PRNewswire/ -- Steakhouse Partners, Inc.
 (Nasdaq: SIZL), today reported financial results for the sixteen weeks and
 fifty-two weeks ended December 26, 2000.
 
     Q4    2000    "Going concern" removed by outside accountants
     Q4    2000    Company achieves NASDAQ net tangible asset requirements
     Q4    2000    Paragon Net Income up 20.8% to $2.9 million from
                   $2.4 million
     FY    2000    Paragon same store sales up 4.1%
     FY    2000    Consolidated EBITDA up 60.5% to $6.9 million from
                   $4.3 million
     FY    2000    Consolidated Net Loss down 84.6% to ($0.6) million from a
                   loss of ($3.9) million
 
     Q4 2000 solid consolidated results and improved financial performance
 allow outside accountants to remove the "going concern" issue as of the
 year-end audit.
     Q4 2000 solid consolidated results and improved financial performance
 increased net tangible assets to almost $2.2 million versus the minimum of
 $2.0 million as required by NASDAQ.
     Q4 2000 Paragon Restaurants net income of $2.9 million for the sixteen
 weeks ended December 26, 2000 was up from a gain of $2.4 million for the same
 period in 1999, in spite of losing 6.7% of fourth quarter mid-west business
 due to severe winter storms.
     FY 2000 same store sales for Paragon Restaurants were up 4.1% from the
 comparable sixteen weeks of 1999 to $121.0 million for 64 stores.
     FY 2000 consolidated EBITDA for the fifty-two weeks ended December 26,
 2000 was $6.9 million up dramatically from $4.3 million for the corresponding
 period in 1999.
     FY 2000 for the fifty-two weeks ended December 26, 2000 consolidated net
 loss was ($0.6) million versus a loss of ($3.9) million for the corresponding
 period of fiscal 1999.  Consolidated net income of $0.5 million (which
 included a $0.6 million write down of non performing assets) for the sixteen
 weeks ended December 26, 2000 was down slightly from a $0.8 million gain for
 the same period in 1999.
 
     Commenting on the results, Richard M. Lee, Chairman of the Board and Chief
 Executive Officer of the company, said, "We are pleased that the auditors see
 Paragon today as an on going business.  We believe we have met all NASDAQ
 requirements to continue our listing on NASDAQ small cap.  We are not pleased
 with our consolidated loss of $0.18 per share.  We were clearly on track to
 exceeding our 1999 projections when our mid-west stores sales were devastated
 by winter storms that we haven't seen for many years.  The latter, coupled
 with the one-time write down of $1.9 million between Pacific Basin Foods and
 Paragon led to us missing our 2000 net earnings projections," said Mr. Lee.
     "However, our steakhouse business continues to grow.  Many of our stores
 that were not affected by the storms earned all-time sales and profits
 records.  Our plan for FY 2001 is new stores!  We will continue to extend our
 leadership position in the step-up price category ($25 - $35 per check
 average).  We believe this segment to have the best trends in regards to
 market size and growth vibrancy in the steakhouse industry.  We believe our
 new stores will be tremendous benefactors of these latter trends," continued
 Mr. Lee.
     "I think it's important for investors to understand that Paragon today has
 achieved a scale of economics that will reward the company tremendously with
 any new profit stream either via new stores, remodels or new licensing
 agreements.  We have steakhouses that are achieving average revenues of
 $4 million annually.  It is these steakhouses that we are planning to stamp
 duplicates of as we grow new stores.  It is easy to see our people's
 excitement regarding Paragon's future, when you consider our strong brands,
 successful steakhouse models, our management team, and the fact that we have
 today, a solid foundation to build upon," concluded Mr. Lee, Chairman and CEO.
     Business Outlook:  The following statements are based on current
 expectations of management.
 
     --   The Company plans on remodeling, and/or converting three to five
          stores in year 2001
     --   The Company expects FY 2001 per share earnings to be between
          $0.20 to $0.45.
     --   The Company expects same store sales to increase between 1.0% to 2.0%
     --   The Company continues to seek turn around acquisitions.
 
     Except for the historical information contained herein, this news release
 contains forward-looking statements, which involve risk and uncertainties,
 including the risk that actual growth, remodeling/building new stores and
 earnings per share could differ materially from the results that may be
 indicated by such forward-looking statements.  Factors that could cause or
 contribute to such differences include, but are not limited to, the
 developments and market acceptance of new brands, and market conditions in the
 steakhouse segment, as well as other risks detailed from time to time in
 Steakhouse Partner's SEC reports.
 
 SOURCE  Steakhouse Partners Inc.