Steakhouse Partners Reports Second Quarter Financial Results

Net revenue for the thirteen weeks ended June 26, 2007 was $11.7 million as compared to net revenue of $12.7 million for the same period in 2006. The decrease in net revenue is attributable principally to our California units. While our Mid-west units had positive same stores sales of 2.3%, our West Coast units same store sales were down 9.2%. The Company believes higher gasoline costs, a difficult local economy, competitive value offerings in the marketplace and less disposable income adversely influenced consumer dining out patterns specifically in California. Net revenue for the twenty-six weeks ended June 26, 2007 was $23.8 million as compared to net revenue of $25.6 million for the same period in 2006.

Net loss was approximately $2.0 million or $0.30 per share for the thirteen weeks ended June 26, 2007 as compared to net loss of approximately $0.03 million or $0.05 per share for the same period of 2006. Net loss for the twenty-six weeks ending June 27, 2006 was approximately $2.7 million or $0.40 per share as compared to net loss of approximately $0.3 million or $0.05 per share for the same period in 2006. The Company reported that almost $1.2 million of the loss for the thirteen weeks ended June 26, 2007 was the result of non-recurring expenses. Theses expenses were the result of fees, interest and penalties associated with the Forbearance Agreement with the Creditors Trust, Reduction-in-Force severance and promotional 40th anniversary discounts. Operationally, the increase in net loss for the thirteen weeks ended June 26, 2007, was principally the result of the decline in net revenue of our West Coast units and the difficulty of proportionately decreasing all costs with revenue.

Chairman and CEO A. Stone Douglass said, "Although we were disappointed that our net loss was higher than last year, we are continuing our emphasis on value and menu engineering. That aside, the Company was successful in reducing funded debt obligations via a class action settlement in the amount of over $1.0 million and the sale of one of our unique (off-brand) units resulting in a gain from the sale of long term assets of almost $0.8 million. Both of these gains will be reported in the third quarter."

About Steakhouse Partners, Inc.

Steakhouse Partners, Inc. operates 23 full-service steakhouse restaurants located in seven states. The Company's restaurants specialize in complete steak and prime rib meals, and offer fresh fish and other lunch and dinner dishes. The Company operates principally under the brand names of Hungry Hunter, Hunter Steakhouse, Mountain Jack's, and Carvers.

Logos, product and company names mentioned are the property of their respective owners.

Reader Comments:

Be the first to leave a comment for this article

Tweet