New World Coffee-Manhattan Bagel,
Inc. (Nasdaq: NWCI), today reported results for the first quarter of fiscal
2001.
The company’s revenues for the quarter ended April 1, 2001 increased 14.5% to
$10.5 million from $9.1 million for the comparable period ended March 25, 2000.
Retail sales advanced 200.9% to $3.7 million, or 35.1% of total revenues, from $1.2
million, or 13.3% of revenues, in the comparable 2000 period. Manufacturing
revenues decreased 16.3% to $5.1 million, or 49.2% of total revenues, from $6.2
million, or 67.2% of revenues, a year earlier. Franchise related revenues declined
6.9% to $1.7 million, or 15.8% of total revenues, from $1.8 million, or 19.4% of
revenues, in last year’s first quarter.
Net income for the quarter ended April 1 2001 was $250,000, a decrease of 61.6%
from $651,000 in the period ended March 25, 2000. With the 2001 quarter including
a $166,000 provision for income taxes, versus none in the 2000 quarter, income
before taxes declined 36.1% to $416,000 from $651,000. Earnings before interest,
taxes, depreciation and amortization (EBITDA) declined 3.2% to $1.6 million, or
15.7% of revenues, from $1.7 million, or 18.6% of revenues, in the 2000 quarter.
The company attributed the figures to inclement weather conditions experienced in
its core markets during this year’s first quarter which negatively impacted segment
revenues, the outsourcing of its low-margin distribution business which was
previously included in the manufacturing revenue line, a temporary shift in revenue
mix towards retail sales which have lower margins than manufacturing, an
associated temporary increase in depreciation and general and administrative
expenses to support the increase in retail stores, and the inclusion of an income tax
provision against its earnings for the first time. The Company expects that as it
continues to franchise existing company owned stores, its revenues will shift
favorably towards higher margin manufacturing revenues, and it will be able to
reduce the depreciation and general and administrative expenses associated with
company stores. The company has several transactions pending for the sale of
company owned stores at this time.
After deducting dividends and accretion on preferred stock, both of which are
non-cash accounting adjustments, of $3.6 million, the Company reported a net loss
available to common stockholders of ($3.3 million), or ($0.22) per common share, in
the 2001 quarter, compared to income of $651,000, or $0.06 per share, in the prior year.
New World Coffee-Manhattan Bagel, Inc. currently franchises, licenses or owns stores under its four brands in 26
states and Washington, D.C. The Company is vertically integrated in bagel dough manufacturing and coffee
roasting, with plants in New Jersey, California and Connecticut.
