Click here for financial tables
Intermediate, Inc. today reported results for its 13-week second quarter and 26 weeks ended June 28, 2006. For simplicity of presentation, the Company has described the 13-week second quarters and 26-week periods ended June 28, 2006 and June 29, 2005 as June 30, 2006 and June 30, 2005, respectively.
El Pollo Loco reported operating revenues for the 13 weeks ended June 30, 2006 of $65.9 million, which is an increase of $4.7 million, or 7.7%, over operating revenues for the 13 weeks ended June 30, 2005 of $61.2 million. Operating revenues include both sales at company-operated stores and franchise revenues. Same store sales for the system, which includes sales from both company-operated and franchised stores, increased 4.1% in the second quarter of fiscal 2006; company-operated restaurant same store sales increased 1.9% and franchise restaurant same store sales increased 6.0%. For company-operated restaurants, the components of the same store sales increase are an increase in transactions of 1.1%, a decrease in average check of 1.4%, an increase in price of 1.9%, and an increase attributed to the chicken meal restructuring of our menu of 0.3%.
Operating income for the second quarter of fiscal 2006 was $9.1 million, an increase of $2.1 million, or 33.2%, from the second quarter of 2005 operating income of $7.0 million. The prior year operating income was impacted by an impairment charge of $0.9 million, which was recorded by the Company for one under-performing company-operated store.
Interest expense for the second quarter of fiscal 2006 was $7.1 million, an increase of $2.3 million, or 49.0%, from the second quarter of 2005 interest expense of $4.8 million due to higher levels of debt incurred in conjunction with the November 2005 acquisition of the Company by affiliates of Trimaran Capital Partners.
Our provision for income taxes consisted of income tax expense of $0.8 million for each of the 13 weeks ended June 30, 2006 and 2005.
As a result of the above, net income for the second quarter of fiscal 2006 was $1.2 million, which was a decrease of $0.2 million, or 13.8% from the second quarter 2005 net income of $1.4 million.
EBITDA for the second quarter of fiscal 2006 was $11.6 million, an increase of $1.0 million, or 10.2%, from second quarter 2005 EBITDA of $10.6 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.
Operating revenues for the 26-week period ended June 30, 2006 were $129.0 million, which was an increase of $13.2 million, or 11.4%, over operating revenues for the 26 weeks ended June 30, 2005 of $115.8 million. Same store sales for the system increased 7.5% for the 26 weeks ended June 30, 2006; company-operated restaurant same store sales increased 5.8% and franchise restaurant same store sales increased 9.1%. For company-operated restaurants, the components of the same store sales increase are an increase in transactions of 5.5%, a decrease in average check of 2.2%, an increase in price of 1.8%, and an increase attributed to the chicken meal restructuring of our menu of 0.7%.
Operating income for the 26 weeks ended June 30, 2006 was $16.3 million, which was an increase of $4.4 million, or 36.7% over operating income of $11.9 million for the 26 weeks ended June 30, 2005.
Interest expense for the 26 weeks ended June 30, 2006 was $14.2 million, which was an increase of $4.7 million, or 49.6% over interest expense of $9.5 million for the 26 weeks ended June 30, 2005 due to higher levels of debt incurred in conjunction with the November 2005 acquisition of the Company by affiliates of Trimaran Capital Partners.
Net income for the 26 weeks ended June 30, 2006 was $1.3 million, a decrease of $0.3 million, or 19.6%, from net income for the 26 weeks ended June 30, 2005 of $1.6 million.
EBITDA for the 26 weeks ended June 30, 2006 was $21.2 million, an increase of $2.2 million, or 11.5%, over EBITDA of $19.0 million for the 26 weeks ended June 30, 2005.
El Pollo Loco's store count changes for the 26 weeks ended June 30, 2006 are as follows:
Company Franchised Stores Total
------- ----------------- -----
December 28, 2005 142 191 333
Q1 - Opened 4 3 7
Q1 - Closed - - -
------- ----------------- -----
March 30, 2006 146 194 340
Q2 - Opened - 1 1
Q2 - Closed - - -
------- ----------------- -----
June 30, 2006 146 195 341
------- ----------------- -----
|
Post News