El Pollo Loco Inc. Announces Results for the Quarter Ended March 31, 2004
	El Pollo Loco reported operating revenues for the 13-week first quarter ended March 31, 2004 of $53.8 million, which is an increase of $7.8 million, or 17.0%, over operating revenues for the 13-week first quarter ended March 26, 2003 of $46.0 million.
Click here for financial tables Operating revenues include both sales at company-owned stores and franchise revenues. Same store sales for the system increased 13.1% in the first quarter of fiscal 2004; with company-owned restaurant same store sales increasing 12.1% and franchise restaurant same store sales increasing 14.1%. Net income for the first quarter of fiscal 2004 was $1.7 million, an increase of $0.8 million, or 92.7%, over first quarter 2003 net income of $0.9 million. EBITDA for the first quarter of fiscal 2004 was $9.6 million, an increase of $3.5 million, or 58.8%, over first quarter 2003 EBITDA of $6.1 million. EBITDA represents net income before interest, taxes, depreciation and amortization. EBITDA and its uses and limitations are discussed further under "Non-GAAP Financial Measures" below. Stephen E. Carley, president and CEO of El Pollo Loco Inc. said: "The strong same store sales growth in the first quarter of 2004 was the result of both a robust economy and new product, marketing and operations achievements specific to El Pollo Loco. We believe our double digit same store sales growth will moderate in the second half of 2004 as we begin to compare same store sales to strong comparable quarters from the previous year. We expect, however, that our same store sales growth in 2004 will outperform the broader QSR market, as it frequently has done in previous years. We were able to translate improved sales into improved net income and EBITDA by keeping control of our costs. In our efforts to maintain predictability over commodity costs in an inflationary environment, we entered into new one-year contracts for chicken that expire in February of 2005. Although the new contract prices for chicken are higher than our previous contract prices, we will offset some of the impact with a price increase that took effect in January." In March of 2004, EPL Intermediate Inc., the parent company of El Pollo Loco, offered and sold $70.0 million in aggregate principal amount at maturity of 12 1/2% Senior Discount Notes due 2010 (the "Intermediate Notes"). The Intermediate Notes are unsecured. EPL Intermediate realized gross proceeds of $39.0 million from the sale of the Intermediate Notes. After offering expenses of approximately $2.0 million, the net proceeds of approximately $37.0 million were used to make a cash distribution to EPL Holdings Inc., the parent company of EPL Intermediate Inc., which applied the proceeds to pay a cash dividend to its stockholders. The company expects to incur approximately $1.3 million in expenses in the second quarter of fiscal 2004 relating to the revaluation of options it previously issued to company management and one member of its board of directors to purchase shares of common stock of EPL Holdings Inc. related to this transaction. El Pollo Loco's store count changes for the first quarter of 2004 are as follows: Company Franchised Stores Total December 31, 2003 136 178 314 Opened 1 1 2 March 31, 2004 137 179 316