Total sales for the quarter ended December 31, 2000 were $12.8 million, down 3.8% compared to total sales of $13.3 million for the same period last year. Average unit sales were $266,000, down 4.7% for the first quarter of fiscal 2001 compared with average unit sales of $279,000 for the first quarter 2000. Same store sales were down 5.7% for the quarter versus the prior year quarter.
Net loss for the first quarter was $657,000, or $(0.45) per share, compared with a net loss of $377,000, or $(0.26) per share, for the same quarter last year. The $280,000 increase in loss this year was primarily due to positive adjustments last year of $50,000 in franchise taxes and $137,000 in insurance reserves along with $50,000 additional expenses this quarter paid to the Company's investment bankers.
"Lower sales and increased operating expenses contributed to the reduction in operating results which we experienced in the quarter just ended,'' said Hollis Taylor, president and chief executive officer. "Our management team is working full time to generate new business and carefully control expenses as we move ahead with our reimaging plan, based on the highly successful Pancho's Buffet & Grill(TM) concept store located in Mesquite, Texas, which continues to generate above average unit sales.
"We are very optimistic about this new contemporary upscale image for Pancho's, and we believe the reimaging steps that we are now taking, which is a company-wide, three-year process, will allow Pancho's to generate positive results in the future,'' added Taylor. ``This three-year plan is based upon the Company's ability to obtain the necessary capital resources. As previously announced, the Company has retained Wells Fargo Van Kasper to explore strategic alternatives to enhance our future growth and maximize shareholder value.''
Based in Fort Worth, Pancho's Mexican Buffet, Inc. is the only publicly-held company offering all-you-can-eat Mexican food in a buffet-style format. The Company operates 48 restaurants in Texas, Arizona, Louisiana, New Mexico and Oklahoma.