Industry News | February 12, 2001

Blimpie International Announces 2Q 2001

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Blimpie International, Inc. (Amex: BLM), reports financial results for the fiscal year 2001 second quarter ended December 31, 2000.

Revenues for the three months ended December 31, 2000 were $7,537,000, compared to $7,191,000 for the same quarter in the prior year. Net income for the second quarter of fiscal 2001 was $196,000, or $0.02 per diluted share, compared to $466,000, or $0.05 for the same period in the prior year. Revenues for the six months ended December 31, 2000 were $15,716,000, compared to $15,593,000 for the same period in the prior year. Net income for the first half of fiscal 2001 was $356,000, or $0.04 per diluted share, compared to $749,000, or $0.08 for the same period in the prior year.

Revenues from continuing fees, the ongoing fees paid by franchisees to Blimpie International, decreased 1.0% to $4,475,000 for the quarter ended December 31, 2000, from $4,518,000 for the same period in the prior year. Revenues from subfranchisor fees, master license fees, and the sale of franchises were $1,010,000 for the quarter, compared with $862,000 for the same period in the prior year. Store equipment sales were $1,536,000 for the quarter, compared to $1,448,000 for the same period in the prior year. License fees and other income was $148,000 for the quarter, compared to $230,000 for the same period in the prior year. company restaurant sales were $368,000 for the quarter, compared with $133,000 for the same period in the prior year.

Blimpie Subs & Salads' traditional location same store sales grew 3.8% for the second quarter, and increased 4.7% for the six months ended December 31, 2000. Beginning in February 2000, Blimpie Subs & Salads generated positive same store sales for 11 straight months and finished the calendar year with a 4.1% increase in same store sales. For the quarter, Blimpie Subs & Salads opened 36 locations and closed 55 locations. There were 1,971 Blimpie Subs & Salads locations open at December 31, 2000 as compared to 2,126 locations open at December 31, 1999.

Tony Conza, co-founder, chairman, and CEO, commented, "Our Blimpie Subs & Salads group continues to increase same store sales and improve its operating performance. Likewise, we opened several Maui Tacos and co-branded Blimpie Subs & Salads / Pasta Central) locations during the past few months, including a Maui Tacos location in the Minneapolis airport, that should help improve the performance of these new concepts. Our profitability during the quarter was hurt by the performance of our company- owned stores, which are still relatively new and have yet to reach their revenue or profitability targets.''

Headquartered in New York, with offices in Atlanta and Houston, Blimpie International, Inc. franchises Blimpie Subs & Salads and Pasta Central) and is the majority owner of Maui Tacos International, Inc., the franchisor of Maui Tacos and Smoothie Island). Blimpie International, Inc. has approximately 2,100 franchises operating under these four brands in the United States and in 13 other countries. Blimpie Subs & Salads is a quick-service sandwich chain operating in traditional free-standing outlets as well as new concept locations, such as college campuses, hospitals, mini-marts, institutional food service operations, convenience stores and sporting arenas. Pasta Central is a quick service Italian food concept that addresses current eating trends for eat-in or take home meals. Maui Tacos offers a healthy, affordable restaurant-quality menu of "Maui-Mex(TM)'' items, including traditional Mexican food marinated in Hawaiian spices. Smoothie Island offers a menu of blended beverages of frozen yogurt, fruit and nutritional supplements. The company also owns the subsidiary B I Concept Systems, Inc., a professional design and equipment service company. Blimpie International recently introduced another concept into the beverage category, Smoothie Island Juice Bar, a concept that offers consumers a healthier alternative to typical fruit and yogurt-based beverages.

News and information presented in this release has not been corroborated by QSR, Food News Media, or Journalistic, Inc.