Message #4 From:
NewsBot Date: August 24, 2006 05:29:00 AM
BOBS News Brazil Fast Food Reports Strong Net Profit Improvements in Second Quarter/Six Months Results; Company's Growth and Expansion Continues; Shareholders' Equity Increases Dramatically
RIO DE JANEIRO, Brazil--(BUSINESS WIRE)--Aug. 24, 2006--Brazil Fast Food (OTCBB: BOBS), a 479-outlet fast-food chain and the second largest fast-food chain operator in Brazil, today announced financial results for its second quarter ended June 30, 2006.
System-wide sales for the Company's "Bob's" chain were R$91.4 million for the second quarter of 2006, up 20 percent from R$76.4 million for the second quarter of 2005. Net restaurant sales for Brazil Fast Food Corp.'s company-owned retail outlets increased five percent for the second quarter of 2006 to R$17.6 million from R$16.8 million for the second quarter of 2005. Net franchise revenue was R$3.4 million for the three-month period ended June 30, 2006 - up 23 percent from 2005's second-quarter net franchise revenue of R$2.8 million. The Company nearly tripled its net operating profit for the second quarter of 2006 to R$224,000 from R$78,000 for the same period of 2005. The net loss for the second quarter of 2006 decreased dramatically to R$(26,000), or R$0.00 per share, basic and diluted, from R$(680,000), or R$(0.08) per share, basic and diluted, for the second quarter of the prior year.
For the six-moth period ended June 30, 2006, Brazil Fast Food reported system-wide sales of R$200.9 million - a 27 percent increase from net restaurant sales of R$158.8 million for the first six months of 2005. Net restaurant sales climbed by 18 percent to R$41.0 million for the first two quarters of 2006 from R$34.9 million for half of 2005. Net franchise revenue rose 40 percent to R$7.4 million for the first two quarters of 2006 from R$5.3 million for the same period of 2005. Net operating profit grew by 25 percent to R$3.6 million for the first six months of 2006 from R$2.9 million for the first two quarters of 2005. As of June 30, 2006, net income has risen year-to-date to R$2.4 million, or R$0.30 per share, basic and diluted - 82 percent higher than the net income reported for the same period of the prior year, which was R$1.3 million, or R$.17 per share, basic and diluted.
Ricardo Figueiredo Bomeny, Chief Executive Officer of Brazil Fast Food Corp., commented, "Our long-term growth strategy, which includes the expansion of our chain, and investments in marketing, employee training, remodeling and equipment, has enabled our Company to make significant progress in Brazil's continuingly favorable economic climate. Our growth during the second quarter may seem more subdued than during our first quarter. However, the positive momentum continues. During the first quarter, our Company participated in two special events - Carnival in Rio de Janeiro and the U2 rock concerts at Morumbi Soccer Stadium. We will, of course, continue to seize such opportunities whenever possible, further leveraging the strength of the Bob's brand and our niche in Brazil's fast-food market."
Mr. Bomeny continued, "We believe that our efforts to increase our Company's revenues, control costs and boost profitability are well-reflected in our financial results and our greatly appreciated Shareholders' Equity. And, although we still face obstacles, including some significant operating contingencies (covered in detail in our 10K), we are just as dedicated to resolving those issues to ensure our Company's continued success."
Brazil Fast Food Corp. owns and operates, both directly and through franchisees, the second largest chain of hamburger fast-food restaurants in Brazil, through its wholly owned subsidiary, Venbo Comercio de Alimentos Ltda. Brazil Fast Food Corp. conducts business in Brazil under the trade name "Bob's." As of June 30, 2006, the Company had 479 points of sale, which includes traditional restaurants, kiosks and re-locatable trailers.
This press release contains forward-looking statements within the meanings of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. Such statements involve known or unknown risks, uncertainties and other factors that may cause the actual results to differ materially from those expressed or implied by such forward-looking statements. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see the disclosures in the Company's filings with the Securities and Exchange Commission, including the risk factors contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2005, filed with the Securities and Exchange Commission on March 31, 2006.
BRAZIL FAST FOOD CORP.
CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
(in thousands of Brazilian Reais, except per-share amounts)
R$000 Six Months, ended
06/30/06 06/30/05
--------------- ---------------
System-wide sales R$ 200,852 R$ 158,764
Net Restaurant Sales 41,036 34,873
Net Franchise Revenue 7,432 5,307
Net Operating Profit 3,638 2,902
Net Income 2,432 1,338
Net Income
Per Common Share,
Basic and Diluted R$0.30 R$0.17
---------------------------------------------------------
R$000 Three Months, ended
06/30/06 06/30/05
--------------- ---------------
System-wide sales R$ 91,394 R$ 76,446
Net Restaurant Sales 17,610 16,774
Net Franchise Revenue 3,439 2,794
Net Operating Profit
(Loss) 224 78
Net Income (Loss) (26) (680)
Net Income (Loss)
Per Common Share,
Basic and Diluted R$(0.00) R$(0.08)
---------------------------------------------------------
BRAZIL FAST FOOD CORP.
CONSOLIDATED BALANCE SHEET
(in thousands of Brazilian Reais)
R$000 Period ended
06/30/06 12/31/05
--------------- ---------------
Current Assts R$ 11,451 R$ 11,800
Total Assets 37,817 38,070
Current Liabilities 13,985 16,171
Total Liabilities 34,816 38,036
Shareholders' Equity 3,001 34
Treasury Stock (516) (216)
Accumulated Deficit (56,225) (58,687)
