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Blimpie International, Inc. (Amex: BLM) reported December 20 its financial results for the fiscal year 2000 first quarter ended September 30, 1999. As previously disclosed, release of the Company's fourth quarter 1999 results, the filing of its June 30, 1999 Annual Report on Form 10-K and its September 30, 1999 Quarterly Report on Form 10-Q, and these results had been delayed while the Company completed the calculations necessary to implement a change in its accounting policy for recording subfranchise and master license fee revenues.
The Company filed that Form 10-K and Form 10-Q with the SEC last week; it is current with its filing obligations under the Exchange Act and it is once again in compliance with the continued listing guidelines of the American Stock Exchange. The Company has been informed by the American Stock Exchange that trading in its common stock will resume on Tuesday, December 21, 1999. The Company also has scheduled Monday, March 13, 2000 for its Annual Meeting of Shareholders for the fiscal year ending June 30, 2000, to be held in New York, New York.
Revenues for the three months ended September 30, 1999 were $8,402,000, compared to $8,614,000 for the same quarter in the prior year. Net income before cumulative effect of change in accounting principle for the first quarter of fiscal 2000 was $283,000, or $0.03 per diluted share, compared to $473,000, or $0.05 for the same period in the prior year.
Revenues from continuing fees, the ongoing fees paid by franchisees to Blimpie International, increased 2.9% to $4,937,000 for the quarter ended September 30, 1999, from $4,800,000 for the same period in the prior year driven by new restaurant openings. Revenues from subfranchisor fees, master license fees and the sale of franchises were $1,108,000 for the quarter, compared with $1,119,000 for the same period in the prior year. Store equipment sales were $2,098,000 for the quarter, compared to $2,592,000 for the same period in the prior year.
Revenue growth was affected during the first quarter by a decline in franchise fees and equipment sales. This decline was due mainly to decreased store openings, as well as an increased percentage of new concept store openings, which are associated with a lower franchise fee and a smaller equipment package. Selling, general and administrative expenses were higher in the quarter due primarily to higher personnel costs associated with the new brands. Also, income taxes were a greater percentage of income before income taxes due to certain losses of the Company's majority-owned subsidiary, Maui Tacos International, Inc., which may not be deductible for income tax purposes in fiscal 2000.
Tony Conza, co-founder, chairman, and chief executive officer, commented, "We're very excited to be able to report our first quarter earnings and have our stock resume trading. We've devoted a lot of energy toward this day, and I'm glad that we can once again focus on our business and the Family of Brands. Our quarterly results continue to show greater continuing fee revenues, but the additional expenses associated with the new brands continue to cause our earnings to suffer in the short term. Still, I'm confident that the new brands will prove their worth, and the investments we've made in them will begin to pay off in the near future."