EX-99.5 6 dex995.txt PRESS RELEASE DATED 06/19/01 EXHIBIT 99.5 N E W S B U L L E T I N FROM: [SIZZLER LOGO] RE: SIZZLER INTERNATIONAL, INC. 6101 W. Centinela Ave., Suite 200 Culver City, CA 90230 The Financial Relations Board (310) 568-0135 BSMG WORLDWIDE NYSE: SZ -----------------------------------------------------------------------------------------------
AT THE COMPANY: AT THE FINANCIAL RELATIONS BOARD: Charles Boppell Kim Forster Haris Tajyar Tricia Ross President and CEO Vice President, Planning General Information Investor Contact (310) 568-0135 (310) 568-0135 (310) 442-0599 (310) 442-0599 -----------------------------------------------------------------------------------------------
FOR IMMEDIATE RELEASE June 19, 2001 SIZZLER INTERNATIONAL ANNOUNCES FOURTH QUARTER AND YEAR-END RESULTS HIGHLIGHTS: . Fourth quarter revenues increase to $59.1 million from $55.3 million . Excluding impact of the decline in the Australian dollar, revenues for the quarter would have been $64.0 million, an increase of 16% . Pat & Oscar's(SM), formerly Oscar's, achieves 2.5% same-store-sales growth . 11th Pat & Oscar's(SM) and 3 KFCs opened during quarter . Fourth quarter net income impacted by tightening economy, energy prices, and weakening of Australian dollar . Company appoints new CFO and Sizzler USA CEO during quarter CULVER CITY, CA--June 19, 2001--Sizzler International, Inc. (NYSE: SZ) today reported financial results for the fourth quarter and fiscal year ended April 29, 2001. For the fourth quarter, the company reported revenues of $59.1 million, an increase of 7% over the $55.3 million in the comparable period in fiscal 2000. Net income for the fourth quarter was $0.9 million, or $0.03 per diluted share, compared with net income of $2.7 million, or $0.09 per diluted share in the same period a year ago. The decline in net income for the quarter was primarily attributable to a 16.1% decline in the Australian dollar from last year, and a loss, in line with expectations, of approximately $0.5 million from Pat & Oscar's(SM). -more- Financial Relations Board, Inc. serves as financial relations counsel to this company is acting on the company's behalf in issuing this bulletin and receiving compensation therefor. The information contained herein is furnished for information purposes only and is not to be construed as an offer to buy or sell securities On April 9, NBC's Dateline television program aired a report on meat processing and food safety. This report was subsequently carried on additional newscasts across the country and caused a slowdown in sales across Sizzler USA stores for the last weeks of the quarter. However, sales have gradually begun to regain momentum in the current quarter and are returning to levels prior to the Dateline report. Excluding the effect of the decline in the Australian dollar, revenues would have been $64.0 million, an increase of 16%. "While we are continuing to make progress with our re-imaging and marketing programs, including generating greater traction in our targeting of the large Hispanic consumer market, our sales growth, particularly at our Sizzler USA restaurants, has decelerated modestly in recent months," said Charles Boppell, President and CEO of Sizzler International. "Our bottom-line results for the quarter were affected by increases in a range of expense items, including utility costs. While some of these are outside of our control, we undertook an intensive review of our expense structure during the fourth quarter. We believe we have identified a number of procedural and administrative changes that we can make over the next few months to trim food and labor costs without sacrificing our ongoing commitment to excellent customer service." The company reported a decline in same store sales for the quarter of 1.6% for Sizzler USA, 1.8% for Sizzler Australia, and 2.7% for KFC. This decrease was primarily due to a slowdown in the domestic and Australian economies and an increase in competitive food offerings in Australia. For the fiscal year ended April 29, 2001, the company reported revenues of $245.3 million, which is an increase of 2% over revenues of $239.5 million in fiscal 2000. Net income for the year ended April 29, 2001 was $2.7 million, or $0.10 per diluted share for fiscal 2001, an increase of 12% over net income of $2.4 million, or $0.08 per diluted share including one-time charges in fiscal 2000. Pat & Oscar's Division Continues to Achieve Sales Growth The increase in fourth quarter revenues is primarily attributable to ongoing contributions from the company's Pat & Oscar's division, formerly Oscar's, which was acquired during the second quarter of fiscal 2001. The division, which achieved same-store-sales growth of 2.5% during the quarter, contributed nearly $7.6 million in revenues. During the quarter, the 11th Pat & Oscar's(SM), located in Carlsbad, California, was opened representing the third location opened this fiscal year. The company expects to continue to support the division's expansion, with an additional 4 to 5 openings planned for the current fiscal year. "Our Pat & Oscar's division is continuing to achieve strong financial and operational results since our acquisition of the San Diego-based chain last year. Although the division represents a small percentage of our total revenues, we are very encouraged by its results and believe it will play a growing role in Sizzler International going forward. We look forward to continuing to support its expansion plans with the 12th store opening expected to occur in the fall," said Mr. Boppell. Update on Stock Plans On May 8, 2001, the company's Board of Directors authorized the repurchase of up to an additional 500,000 shares of Sizzler International outstanding common stock. Through the fiscal year ended April 29, 2001, the company had repurchased approximately 1.4 million of the 1.5 million shares previously authorized by the Board. -more- During the quarter, the company implemented an incentive stock plan with its management group in Australia. Under the plan, employees from the restaurant manager level and up have the opportunity at the end of three years to acquire up to approximately 15% of the Australian operations. As part of the program, the participants were required to purchase over 300,000 shares of Sizzler International stock that they will be restricted from selling for up to five years. The company expects this program to support the retention of the strong international management team that has been driving successful international operations for the past several years. Outlook for Fiscal 2002 "Given the economic uncertainties, decreasing consumer confidence levels and rising fuel and energy costs, we are cautiously optimistic regarding our growth outlook for fiscal 2002. Our priority in the new fiscal year will clearly be on restoring growth at our 347 company owned or franchised Sizzler(R) stores worldwide and 107 KFC(R) stores in Australia, and keeping the growth of Pat & Oscar's/SM/ on track. "To this end, we recently announced the appointment of Keith Wall as CFO and Ken Cole as President and CEO of Sizzler USA and have strengthened our market level operations management structure, which we believe will help us to achieve this objective," said Mr. Boppell. "We are also rolling out a number of new programs, including the expanded use of restaurant systems that will allow us to more effectively control our inventories, purchasing, and labor and food costs across our domestic Sizzler(R) and Pat & Oscar's/SM/ restaurants. In addition, we continue to review our Sizzler(R) menu offerings and plan to evaluate new pasta, chicken and fish items. We believe these new offerings will boost traffic at our stores by targeting the more budget-oriented guests. These cost control initiatives, coupled with increasing marketing and advertising activities, particularly in weak markets, should help the company achieve sales growth and margin enhancements in the coming quarters." Investor Conference Call Sizzler will be holding an investor conference call to discuss the company's financial and operational results today at 11:00 am EDT. Investors will have the opportunity to listen to the conference call over the Internet through www.streetevents.com. To listen to the live call, please go to the web site at -------------------- least fifteen minutes early to register, download, and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available shortly after the call. About Sizzler Sizzler International, Inc. operates, franchises or joint ventures 347 Sizzler(R) restaurants worldwide, in addition to 107 KFC(R) restaurants primarily located in Queensland, Australia and 11 Pat & Oscar's/SM/ restaurants. -more- Certain statements contained in this document may contain forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. These statements may include but are not limited to, statements regarding: (1) continuing growth in revenues and earnings; (2) further expansion of the Pat & Oscar's division; and (3) the enhancement of shareholder value. Sizzler cautions that these statements are qualified by important factors that could cause actual results to differ materially from those reflected in the forward looking statements contained herein. Such factors include, but are not limited to: (1) the Company's ability to implement its strategic plan; (2) the Company's ability to continue to overcome any residual adverse publicity arising out of the E.coli incident last July; (3) the Company's ability to manage its costs and expenses, particularly energy and utility costs; (4) the Company's ability to continue to support the expansion of additional Pat & Oscar's/SM/ units; (5) general economic conditions which affect the securities markets; (6) whether the continuation of the share repurchase program will enhance shareholder value; and (7) fluctuations in the Australian Dollar exchange rate. [ tables to follow ] -more- SIZZLER INTERNATIONAL, INC. AND SUBSIDIARIES Consolidated Statements of Operations (In thousands, except per share data)
For the Twelve Weeks Ended April 30, 2001 2000 ------------------------------------------------------------- ---------------- ----------------- Revenues Restaurant sales $ 56,962 $ 52,991 Franchise revenues 2,161 2,330 ------------------------------------------------------------- ---------------- ----------------- Total revenues 59,123 55,321 ------------------------------------------------------------- ---------------- ----------------- Costs and Expenses Cost of sales 19,593 19,223 Labor and related costs 16,152 14,527 Other operating expenses (asset write downs of $453 for 2001 and $800 for 2000) 13,009 12,001 Depreciation and amortization 2,201 1,744 General and administrative expenses 5,310 4,881 ------------------------------------------------------------- ---------------- ----------------- Total operating costs and expenses 56,265 52,376 ------------------------------------------------------------- ---------------- ----------------- Interest expense 1,047 853 Investment income, net (233) (527) Other income - (620) ------------------------------------------------------------- ---------------- ----------------- Total costs and expenses 57,079 52,082 ------------------------------------------------------------- ---------------- ----------------- Income before income taxes 2,044 3,239 Provision for income taxes 1,120 535 ------------------------------------------------------------- ---------------- ----------------- Net income $ 924 $ 2,704 ============================================================= ================ ================= Basic and diluted earnings per share $ 0.03 $ 0.09 ============================================================= ================ ================= Weighted Average common shares outstanding: Basic 27,655 28,559 Diluted 27,775 28,877 ============================================================= ================ =================
-more- SIZZLER INTERNATIONAL, INC. AND SUBSIDIARIES Consolidated Statements of Operations (In thousands, except per share data)
For the Years Ended April 30, 2001 2000 ------------------------------------------------------------- ---------------- ----------------- Revenues Restaurant sales $ 236,665 $ 230,869 Franchise revenues 8,676 8,625 ------------------------------------------------------------- ---------------- ----------------- Total revenues 245,341 239,494 ------------------------------------------------------------- ---------------- ----------------- Costs and Expenses Cost of sales 83,322 84,599 Labor and related costs 67,107 63,081 Other operating expenses (asset write downs of $453 for 2001, $800 for 2000) 56,301 50,847 Depreciation and amortization 9,246 8,628 Non-recurring items 0 12,087 General and administrative expenses 22,293 20,346 ------------------------------------------------------------- ---------------- ----------------- Total operating costs and expenses 238,269 239,588 ------------------------------------------------------------- ---------------- ----------------- Interest expense 3,844 3,631 Investment income, net (1,560) (1,423) Other income (347) (1,411) ------------------------------------------------------------- ---------------- ----------------- Total costs and expenses 240,206 240,385 ------------------------------------------------------------- ---------------- ----------------- Income (loss) before income taxes 5,135 (891) Provision (benefit) for income taxes 2,412 (3,313) ------------------------------------------------------------- ---------------- ----------------- Net income $ 2,723 $ 2,422 ============================================================= ================ ================= Basic and diluted earnings per share $ 0.10 $ 0.08 ============================================================= ================ ================= Weighted Average common shares outstanding: Basic 27,777 28,559 Diluted 27,954 28,877 ============================================================= ================ =================
-more- SIZZLER INTERNATIONAL, INC. AND SUBSIDIARIES Consolidated Balance Sheets (In thousands)
As of April 30, 2001 2000 --------------------------------------------------------------------- ---------------- ---------------- ASSETS Current assets Cash and cash equivalents $ 17,849 $ 38,789 Receivables, net of reserves of $965 in 2001 and $847 in 2000 2,464 4,173 Inventories 4,211 4,333 Current tax asset 3,324 2,544 Prepaid expenses and other current assets 2,554 1,132 --------------------------------------------------------------------- ---------------- ---------------- Total current assets 30,402 50,971 --------------------------------------------------------------------- ---------------- ---------------- Property and equipment, at cost Land 5,663 6,804 Buildings and leasehold improvements 71,488 58,628 Equipment 65,477 61,801 Capital leases 2,616 2,616 Construction in progress 1,873 4,168 --------------------------------------------------------------------- ---------------- ---------------- 147,117 134,017 Less - Accumulated depreciation and amortization (87,106) (87,701) --------------------------------------------------------------------- ---------------- ---------------- Total property and equipment, net 60,011 46,316 --------------------------------------------------------------------- ---------------- ---------------- Property held for sale, net 3,996 8,931 Long-term notes receivable, net of reserves of $17 in 2001 and $73 in 2000 994 1,224 Deferred income taxes 2,425 3,405 Intangible assets, net of accumulated amortization of $1,536 in 2001 and $889 in 2000 21,176 1,876 Other assets, net of accumulated amortization and reserves of $16 in 2001 and $16 in 2000 3,558 3,157 --------------------------------------------------------------------- ---------------- ---------------- Total assets $ 122,562 $ 115,880 ===================================================================== ================ ================
-more- SIZZLER INTERNATIONAL, INC. AND SUBSIDIARIES Consolidated Balance Sheets (In thousands, except share data)
As of April 30, 2001 2000 ----------------------------------------------------------------------- ----------------- ----------------- LIABILITIES AND STOCKHOLDERS' INVESTMENT Current liabilities Current portion of long-term debt $ 5,597 $ 5,206 Accounts payable 9,078 8,196 Other current liabilities 9,626 10,209 Income taxes payable 1,870 2,530 ----------------------------------------------------------------------- ----------------- ----------------- Total current liabilities 26,171 26,141 ----------------------------------------------------------------------- ----------------- ----------------- Long-term debt, net of current portion 24,085 21,198 Deferred gains and revenues 8,307 8,269 Pension liability 9,482 9,637 Stockholders' investment Preferred stock, authorized 1,000,000 shares, $5 par value; no shares issued and outstanding - - Common stock, authorized 50,000,000 shares at $.01 par value; issued and outstanding 27,744,799 in 2001 and 28,067,539 shares in 2000 291 288 Additional paid-in capital 279,846 278,408 Accumulated deficit (217,046) (219,769) Treasury stock, 1,363,800 shares at cost at April 30, 2001 and 706,700 at April 30, 2000 (3,189) (1,948) Accumulated other comprehensive income (5,385) (6,344) ----------------------------------------------------------------------- ----------------- ----------------- Total stockholders' investment 54,517 50,635 ----------------------------------------------------------------------- ----------------- ----------------- Total liabilities and stockholders' investment $ 122,562 $ 115,880 ======================================================================= ================= =================