EX-99.1 2 p0930_ex99-1.htm PRESS RELEASE EXHIBIT 99.1 - PRESS RELEASE

EXHIBIT 99.1 

NEWS RELEASE

FOR IMMEDIATE RELEASE
September 10, 2008  
For Further Information Contact:
Michael L. Bowlin, Chairman
(505) 266-5985
Rudy R. Miller, Chairman and CEO
The Miller Group
Investor Relations for the Company
(602) 225-0504
 
BOWLIN TRAVEL CENTERS REPORT SECOND QUARTER
FISCAL YEAR 2009 RESULTS
AND
RETAINS MILLER CAPITAL MARKETS AS STRATEGIC ADVISOR

ALBUQUERQUE, NEW MEXICO, September 10, 2008 -- Bowlin Travel Centers, Inc. (OTCBB: BWTL) today reported results for the second quarter of fiscal year 2009.

For the three-month period ended July 31, 2008, the Company reported net sales from continuing operations of $7.645 million, a decrease of 7.5% compared to net sales from continuing operations of $8.268 million for the prior year second quarter period.  The Company reported net income for the three-month period ended July 31, 2008, of $118,000 or $0.03 per basic and diluted share, compared to net income of $711,000, or $0.15 per basic and diluted share for the prior year period ended July 31, 2007 that includes income of $549,000 (net of income tax expense) from the sale of one location.

For the six months ended July 31, 2008, the Company reported net sales from continuing operations of $14.224 million, a decrease of 4.8% compared to net sales from continuing operations of $14.945 million for the six months ended July 31, 2007.  Net income for the six months ended July 31, 2008 was $21,000 or $0.01 per basic and diluted share, compared to net income of $720,000, or $0.16 per basic and diluted share for the prior year six months ended July 31, 2007 that includes income of $549,000 (net of income tax expense) from the sale of one location.

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Bowlin Travel Centers Report Second Quarter Fiscal Year 2009 Results
and Retains Miller Capital Markets as Strategic Advisor
September 10, 2008
Page 2
 
“The nation continues to experience a general downturn in economic strength from concerns related to the residential real estate market and fuel prices that while down from recent highs still remain higher than a year ago.  These are two major factors impacting highway traffic that in turn impacts sales at our travel centers where merchandise sales were off 17.3% in the second quarter.  In addition, a major interstate construction project in Arizona adversely affected two locations,” said Michael L. Bowlin, Chairman, President and Chief Executive Officer.  “We have in place cost controls to reduce hourly personnel costs based on traffic demands in each location and by staff reduction through attrition. Our G&A expense was down 11.3% in the second quarter as a result of our concentration on cost controls that include volume purchasing to provide improved margins and inventory control through our proprietary software.  We will continue to focus on adjustments designed to meet the demands of the current market while maintaining the quality service our customers have come to expect at our travel centers.

In addition to our cost control strategies, the Company has retained Miller Capital Markets, LLC, an investment banking firm and FINRA member, to assist the Board of Directors in assessing a number of strategic and business options as we navigate through this difficult economic environment,” Bowlin concluded.

The Company operates full-service travel centers and restaurants that offer brand name food and gasoline, and a unique variety of Southwestern merchandise to the traveling public in New Mexico and Arizona.

Visit our web site at:                                                                           www.bowlintc.com

Certain statements contained herein with respect to factors which may affect future earnings, including management’s beliefs and assumptions based on information currently available, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.   Such forward-looking statements that are not historical facts involve risks and uncertainties, and results could vary materially from the descriptions contained herein.  For more details on risk factors, see the company’s annual reports on Form 10-K, quarterly reports on Form 10-Q and other filings with the Securities and Exchange Commission.


FINANCIAL TABLES FOLLOW:


 
 


Bowlin Travel Centers Report Second Quarter Fiscal Year 2009 Results
and Retains Miller Capital Markets as Strategic Advisor
September 10, 2008
Page 3
 
The following tables outline the company's financial results for the
second quarter of fiscal 2009.

Condensed Balance Sheets and Statements of Income


BALANCE SHEETS
(in thousands)
 
   
July 31,
2008
   
January 31,
2008
(Audited)
 
Assets
           
                 
Cash and cash equivalents
  $ 1,765     $ 1,899  
                 
Marketable securities
    2,500       2,300  
                 
Other current assets
    4,034       4,047  
                 
         Total Current Assets
    8,299       8,246  
                 
Property and equipment, net
    9,753       9,855  
                 
Assets held for sale
    1,114       1,123  
                 
Other assets
    610       638  
                 
         Total Assets
  $ 19,776     $ 19,862  
                 
Liabilities and Shareholders’ Equity
               
                 
Current liabilities
  $ 1,533     $ 1,541  
                 
Long-term debt
    4,510       4,577  
                 
Deferred income taxes
    607       639  
                 
           Total Liabilities
    6,650       6,757  
                 
Shareholders’ equity
    13,126       13,105  
                 
Total Liabilities and Shareholders’ Equity
  $ 19,776     $ 19,862  
 
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Bowlin Travel Centers Report Second Quarter Fiscal Year 2009 Results
and Retains Miller Capital Markets as Strategic Advisor
September 10, 2008
Page 4
 
CONDENSED STATEMENTS OF INCOME
 
 (in thousands, except share and per share data)

   
Three Months Ended
   
Six Months Ended
 
   
July 31,
   
July 31,
   
July 31,
   
July 31,
 
   
2008
   
2007
   
2008
   
2007
 
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
 
                         
Net sales
  $ 7,645     $ 8,268     $ 14,224     $ 14,945  
Cost of goods sold
    (5,390 )     (5,557 )     (10,180 )     (10,143 )
General and administrative expenses
    (1,856 )     (2,093 )     (3,578 )     (3,907 )
Depreciation and amortization
    (211 )     (194 )     (421 )     (389 )
Operating income
    188       424       45       506  
                                 
Interest expense
    (70 )     (138 )     (138 )     (215 )
Other non-operating income
    76       85       158       190  
Income from continuing operations before income taxes
    194       371       65       481  
Income tax expense
    (78 )     (130 )     (31 )     (187 )
Income from continuing operations
    116       241       34       294  
                                 
Discontinued operations
                               
Income (loss) from operations of discontinued components
    3       (109 )     (20 )     (201 )
Income tax expense (benefit)
    (1 )     30       7       78  
      2       (79 )     (13 )     (123 )
                                 
Income from disposal of discontinued operations, net of income tax expense
          549             549  
                                 
Net income
  $ 118     $ 711     $ 21     $ 720  
                                 
Earnings (loss) per share:
                               
Basic and diluted, continuing operations
  $ 0.03     $ 0.05     $ 0.01     $ 0.06  
Basic and diluted, discontinued operations
        $ (0.02 )         $ (0.02 )
Basic and diluted, disposal of discontinued operations
        $ 0.12           $ 0.12  
Basic and diluted, net income
  $ 0.03     $ 0.15     $ 0.01     $ 0.16  
                                 
Weighted average common shares outstanding
    4,583,348       4,583,348       4,583,348       4,583,348  
 
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