Shells Seafood Restaurants, Inc. Reports First Quarter 2007 Results
2007年5月11日 - 10:30PM
PRニュース・ワイアー (英語)
TAMPA, Fla., May 11 /PRNewswire-FirstCall/ -- Shells Seafood
Restaurants, Inc. (OTC:SHLL) (BULLETIN BOARD: SHLL) today reported
financial results for its first quarter ended April 1, 2007. Key
metrics for the first quarter of 2007 compared to the first quarter
of 2006 were: - Revenues decreased 7.9% to $13.4 million. -
Comparable restaurant sales decreased 6.8%. - Net income of
$35,000, compared to $261,000. As adjusted for non- recurring
items, net loss of $11,000, compared to net income of 284,000. -
Diluted earnings per share of $0.00, compared to $0.01 per share
diluted. Leslie Christon, President and CEO, commented, "We
experienced a decrease in our first quarter sales results, which we
attribute primarily to a combination of strong same-store sales
last year when we were up 7.1% for the quarter, a softening economy
in 2007, and substantial discounting in offerings this past quarter
by many of our casual dining competitors in the Florida markets. We
will continue to focus on creating value for our guests with
improved menu offerings and service enhancements." First Quarter
2007 Results Revenues for the first quarter of 2007 decreased 7.9%
to $13.4 million from $14.6 million in the first quarter of 2006;
mostly due to a 6.8% decrease in same store sales. As of the end of
the first quarter of 2007, Shells had 25 restaurants in operation,
same as a year-ago. Restaurant operating costs, consisting of food
and beverage costs, labor and other operating costs increased 2.3%
as a percentage of sales compared to the prior year. Food and
beverage costs increased 0.6% as a percentage of sales compared to
the prior year mostly reflecting the introduction of improved menu
offerings. Labor costs decreased by 1.0% as a percentage of sales
compared to the prior year, mostly due to the improvement in
operational efficiencies, partially offset by an annual increase in
the Florida minimum wage. Other operating costs were affected by
higher occupancy, insurance, advertising and utilities expenses,
resulting in a 2.7% increase as a percentage of sales, compared to
the prior year. "Our operators have done a tremendous job in
managing costs effectively, despite further increases in Florida's
minimum wage and other areas of operating expense so far this
year," Christon stated. "We remain challenged, along with all
Florida business owners, by rising insurance rates, utilities, and
property taxes. With the tightening economy, we are continually
looking to improve our value offerings to give our guests
compelling reasons to dine with us. By aggressively working to
build our sales and guest counts, we look to improve our
profitability and ultimately deliver better value to our
shareholders." General & administrative expenses were $1.0
million, or 7.6% of revenues, in the first quarter of 2007 compared
to $1.2 million, or 8.1% of revenues, in the first quarter of 2006.
The Company continued to reduce its overhead, while increasing
resources for recruiting and training in the first quarter of 2007
in comparison to the same period last year. Depreciation expense
increased $8,000, or 0.4% as a percentage of revenues, as compared
to the prior year due to additional restaurant remodels completed
throughout the first half of 2006. Net interest expense in the
first quarter of 2007 was $66,000, or 0.5% of revenues, compared to
net interest expense in the first quarter of 2006 of $71,000, or
0.5% of revenues. Net income for the first quarter of 2007 was
$35,000, or $0.00 per diluted share based upon 25.5 million diluted
common shares outstanding, compared to net income in the first
quarter of 2006 of $261,000, or $0.01 per diluted share based upon
26.6 million diluted common shares outstanding. Adjusting for
non-recurring items summarized in the ensuing tables, the Company
incurred a net loss of $11,000 in the first quarter of 2007,
compared to net income of $284,000 in the comparable period of
2006. About the Company The Company manages and operates 25
full-service, neighborhood seafood restaurants in Florida under the
name "Shells". Shells restaurants feature a wide selection of
seafood items, including shrimp, oysters, clams, crawfish, mussels,
scallops, lobster, crab and daily fresh fish specials, cooked to
order in a variety of ways: steamed, sauteed, grilled, blackened
and fried. Shells restaurants also offer a wide selection of
signature pasta dishes, appetizers, salads, desserts and full bar
service. Forward-Looking Statements In addition to seasonal
fluctuations, the Company's quarterly and annual operating results
are affected by a wide variety of other factors that could
materially and adversely affect revenues and profitability,
including changes in consumer preferences, tastes and eating
habits; increases in food, labor costs and other operating
expenses; the availability of food acceptable to our quality
standards at acceptable prices; the availability of qualified
labor; national, regional and local economic and weather
conditions; promotional timings and seasonality; demographic trends
and traffic patterns; changes in travel and tourism tendencies,
particularly in light of world events; competition from other
restaurants and food service establishments; availability of third
party financing to fund capital or operating activities, if
required; and the timing, costs and charges relating to restaurant
openings, closings and remodelings. As a result of these and other
factors, the Company may experience material fluctuations in future
operating results on a quarterly or annual basis, which could
materially and adversely affect its business, financial condition
and stock price. Furthermore, this press release and other
documents filed by the Company with the Securities and Exchange
Commission ("SEC") contain certain forward-looking statements with
respect to the business of the Company and the industry in which it
operates. These forward-looking statements are subject to certain
risks and uncertainties, including those mentioned above, which may
cause results to differ significantly from these forward-looking
statements. The Company undertakes no obligation to update these
forward looking statements on a regular basis. An investment in the
Company involves various risks, including those mentioned above and
those that are detailed from time-to-time in the Company's SEC
filings. SHELLS SEAFOOD RESTAURANTS, INC. CONSOLIDATED STATEMENTS
OF OPERATIONS (UNAUDITED) (In thousands, except per share data)
Quarter Ended April 2, 2006 April 3, 2005 Amount Percent Amount
Percent Revenues: Restaurant sales $13,396 99.7% $14,545 99.7%
Management fees 39 0.3% 41 0.3% Total revenues 13,435 100.0% 14,586
100.0% Restaurant operating costs: Food and beverage (1) 4,356
32.5% 4,643 31.9% Labor (1) 3,890 29.0% 4,357 30.0% Other (1) 3,521
26.3% 3,436 23.6% Total restaurant operating costs (1) 11,767 87.8%
12,436 85.5% General and administrative expenses 1,025 7.6% 1,177
8.1% Depreciation and amortization 506 3.8% 498 3.4% Total costs
and expense 13,298 99.0% 14,111 96.7% Income from operations 137
1.0% 475 3.3% Other expense (36) -0.2% (143) -1.0% Interest
expense, net (66) -0.5% (71) -0.5% Net income $35 0.3% $261 1.8%
Net income per share: Basic $0.00 $0.02 Diluted $0.00 $0.01 Shares
used in computing net income per share: Basic 17,843 16,179 Diluted
25,475 26,563 (1) As a percent of restaurant sales SHELLS SEAFOOD
RESTAURANTS, INC. (Dollars in thousands, except per share data)
(Unaudited) April 1, April 2, 2007 2006 Number of restaurants at
end of period: Company-owned restaurants (1) 22 22 Licensed
restaurants 3 3 Total 25 25 Balance sheet data: Cash $1,047 $1,336
Working capital (deficiency) (3,852) (4,674) Total assets 14,374
17,508 Long-term debt 1,713 1,813 Stockholders' equity 4,554 7,524
(1) Includes one joint venture restaurant in which the Company has
a 51% equity interest. Quarter Ended NON-RECURRING ITEMS: April 1,
2007 April 2, 2006 Net income, as reported $35 $261 Non-recurring
income (expense): Lease termination fee - (23) Lease renewal costs
(39) - Proceeds from legal settlement 85 - Total non-recurring
income (expense) 46 (23) Net (loss) income, excluding non-recurring
items (11) 284 Net income (loss) per share: Diluted, as reported
$0.00 $0.01 Diluted, excluding non-recurring items $(0.00) $0.01
DATASOURCE: Shells Seafood Restaurants, Inc. CONTACT: Warren
Nelson, +1-813-961-0944
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