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New World Coffee-Manhattan Bagel, Inc. (Nasdaq: NWCI - news) announced February 2 that it expects earnings for fiscal 1999 to exceed analysts' forecasts, which range from $0.19 to $0.22 per share.
Revenues for the twelve months ended December 26, 1999 exceeded $39 million, compared with $17.3 million in 1998. In 1998, the Company had a $7.49 million net loss, or ($1.09) per share, reflecting $6.46 million in non-cash items and restructuring charges. The actual results for 1999 are expected to be reported in March.
Results for 1999 reflect the combined financials of New World Coffee and Manhattan Bagel Company. New World acquired Manhattan Bagel on November 24, 1998. The Company continued to expand in the bagel industry last year with the acquisition on August 31 of the Chesapeake Bagel Bakery franchise business, adding over 70 franchised and licensed stores.
"We were extremely pleased with our performance during this transitional year in which we began to realize the benefits from our position as the only vertically integrated company in the retail bagel and coffee businesses," said New World chairman and CEO Ramin Kamfar.
"While 1999's revenue and profit growth was clearly driven by the addition of Manhattan Bagel's manufacturing and franchising operations, we also managed to enhance profit margins through the significant general and administrative expense savings generated from the consolidation of the New World and Manhattan Bagel organizations. This past year was also marked by the completion of the Chesapeake Bagel acquisition, which lifted us to the number-two position in the retail bagel industry. The Chesapeake acquisition was immediately accretive to earnings, with franchise royalties flowing into our system during the fourth quarter."
At year end, there were a total of 365 franchised or licensed stores, and 15 Company-owned stores operating under the Manhattan Bagel, Chesapeake Bagel Bakery, New World Coffee and Willoughby's Coffee & Tea names in 26 states and the District of Columbia. In addition to its franchise operations, the Company is also vertically integrated in bagel dough and cream cheese spread manufacturing, and coffee roasting, with plants in New Jersey, California and Connecticut.<