000858 Sizzler Reports First-Quarter Earnings and Sales

Culver City, CA - Sizzler International Inc. announced solid gains in earnings and same-store sales for it first fiscal quarter ended July 23, 2000.

For the first quarter, the company reported revenues of $54.7 million compared with $57.0 million in the first quarter a year ago. The slight decline in total revenues is primarily due to Sizzler operating six fewer units this year, as well as an unfavorable exchange rate, which was nearly 11% lower than the prior year.

Excluding the effect of the weakening in the Australian dollar exchange rate, revenues would have been $58.2 million, an increase of 2.1%. In addition, despite the weak Australian dollar, Sizzler reported a 14% increase in net income to $2.9 million, or $0.10 per diluted share, over last year's first- quarter income of $2.5 million, or $0.09 per diluted share.

Positive Trends in Same-Store Sales Growth

For the quarter, same-store sales increased 1.9% across company-owned U.S. Sizzler locations: 0.6% in the Australian Sizzler locations, and 6.1% from Australian KFC units.

“Today's results reflect the 15th consecutive quarter of net income growth, excluding the one-time charges in the third quarter of fiscal 2000,” said Charles Boppell, president and CEO of Sizzler International.

“This strong and continuing trend is a direct reflection of our management team's ability to continue to strengthen and expand our operations. Looking ahead, we expect to maintain and possibly accelerate this positive trend as we continue to improve our restaurants' operations around the globe,” continued Boppell.

“Our domestic repositioning program continues to generate solid sales growth and increased customer counts. Our average remodeled and re-launched store produced over 12% same-store sales growth for the quarter. This is a clear growth opportunity for Sizzler USA as we look to completing the repositioning of the remaining domestic company-owned stores by year end,” said Thomas E. Metzger, FMP, president of Sizzler USA.

As of the end of the quarter, 24 units had been completely repositioned, with the completion of construction, retraining of restaurant employees and a local marketing campaign. A further 25 units are currently in various stages of the re-image process.

Repurchasing Program

Sizzler has completed the repurchase of approximately 847,000 of the 1.5 million shares of common stock that has been authorized to repurchase by its board of directors. Subject to applicable laws and other factors, the company expects to complete its stock repurchase program as soon as practicable.

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