Net income for the year ended December 31, 2005 was $681,360 compared to net income of $565,811 for the year 2004 and $211,711 for year 2003.
It is customary in the restaurant industry to operate with negative working capital. The Company achieved a positive working capital surplus for three consecutive years of $2.0 million, $1.5 million, and $141,000 at December 31, 2005, 2004 and 2003, respectively.
During 2005, the company incurred one time charges of closed restaurant expenses of $350,000 relating to impairments of $128,000 associated with the buyout of a subleased property and $222,000 related to closing a company operation in Tennessee; and $320,000 of impairments associated with write downs of assets and related rents associated with a subleased property in Arkansas. These charges were offset by gains on receipt of insurance proceeds of $1.2 million associated with two fire casualties on subleased premises in Georgia and a company operation in Maryland.
Western Sizzlin Corporation operates and franchises a total of 137 units in 19 states as of April 10, 2006 under names of WesterN SizzliN Steak & More, WesterN SizzliN Wood Grill, Great American Steak & Buffet Company, and Quincy Steakhouses. Inquiries should be directed to Robyn B. Mabe, Vice President and Chief Financial Officer at 1338 Plantation Road, N.E. Roanoke, VA 24012.
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