Checkers Drive-In Restaurants, Inc.
(Nasdaq: CHKR) reports financial results for its first quarter ended
March 26, 2001. Following a dramatic turnaround in the financial position of Checkers
Drive-In Restaurants during the past 16 months under the leadership of Daniel J.
Dorsch, Checkers today reported its fourth consecutive profitable quarter. The
company’s net income was $843,000 or $0.07 per diluted share, or $0.09 per basic
share for the quarter ended March 26, 2001. This compares with a net loss of
($425,000) or ($0.05) per diluted share for the quarter ended March 27, 2000.
Total revenue decreased to $35.3 million for the quarter ended March 26, 2001 as
compared to $52.2 million for the quarter ended March 27, 2000. This decrease was
primarily due to the sale of company-owned restaurants to franchisees during fiscal
2000. Accordingly, royalty revenue and franchise fees increased by $1 million, up to
$3.5 million compared to $2.5 million one year ago. EBITDA was $4.0 million
compared to $3.7 for the same quarter in 2000, an 8.1% increase.
Comparable company-owned restaurant sales increased by 12.3% during the first
quarter as compared to those units that were operating for the full quarter ended
March 27, 2000. Comparable franchise restaurant sales increased 1.9%. The
franchise sales were impacted negatively by extreme winter weather condition during
In addition to following up 2000 with a profitable first quarter in 2001, Checkers
improved its working capital position by refinancing $5.8 million of debt coming due in
June 2001 with a loan through Heller Financial, Inc. that amortizes over a 30 month
period. “This refinancing completes the final step in our restructuring of debt. We
obtained more favorable terms on this $5.8 million refinance and kept intact a
revolving credit facility with Textron that will give us a working line of capital at LIBOR
plus 4.5% interest,” commented Wendy Beck, Checkers’ Chief Financial Officer.
Checkers’ Chief Executive Officer and President, Daniel J. Dorsch commented, “I am
delighted to report that Checkers Drive-In Restaurants has been turned around financially and is headed in the right
direction, which is supported by this 4th consecutive quarter of profitability reported, but we are not satisfied. We are
profitable, sales are growing steadily and we anticipate those trends to continue. During the first quarter we installed
92 corporate restaurants with new POS technology by NCR giving us better controls on restaurant operations. We will
continue to rollout one or two restaurants each day until we have completed all company stores with the touch screen
technology. Training continues to be a focus, as sales are climbing and the new technology is installed in the
restaurants. Our new advertising campaign is hitting a positive cord with consumers. You Gotta Eat(TM) has people
singing in our drive-thrus and has had a similar effect on recruitment. We are winning right now and it has our people
feeling very proud to be a part of a company that just a year ago was on a much different course. Most recent weekly
corporate sales are up $1,600 per week over a year ago and the momentum seems to be continuing. The causes
are simple to me, get to know your managers, treat them like the important people they are, improve operations a
little each day and miracles begin to happen. There is good reason for us to believe that our sales and our profits will
continue to grow, just ask our franchisees what difference one year can make.”
As of March 26, 2001, Checkers Drive-In Restaurants, Inc. and its franchisees own 421 Checkers (R) operating
primarily in the Southeastern United States and 424 Rally’s (R) operating primarily in the Midwestern United States.
Checkers is headquartered in Clearwater, Florida. For more information about the company, please visit