Prandium, Inc. (OTC Bulletin Board: PDIM) announces that
sales for the fiscal year ended December 31, 2000 were $424.6 million, including sales of $112.4 million from its
former El Torito restaurant division which was sold on June 28, 2000. Restaurant level cash flow totaled $42.6
million in 2000, which included $18.7 million from the former El Torito operations, as compared to $64.8 million in
1999. For fiscal 2000, Prandium’s earnings before interest, taxes, depreciation and amortization (EBITDA) totaled
$14.8 million versus $32.0 million in 1999.
The company reported a 23 cent loss per share, or $41.8 million, in 2000, versus a 20 cent loss per share, or $36.5
million, in 1999. Of the 2000 loss, $30.8 million was related to interest expense throughout the year and $56.3
million was related to a fourth quarter provision for divestitures and write-down of long-lived assets, including $47.8
million related to the write-off of Koo Koo Roo goodwill which was determined to be unrecoverable. Partially
offsetting these losses was a gain of $60.7 million related to the El Torito division sale.
Sales in the fourth quarter of 2000 were $75.6 million, a decrease of 40.8% from 1999 primarily due to the absence
of the former El Torito division sales and the operation of 10 fewer Chi-Chi’s restaurants. Fourth quarter 2000
losses were $74.3 million, or 41 cents per share, versus $14.1 million, or 8 cents per share, in 1999. The losses in
the fourth quarter of 2000 included the $56.3 million provision for divestitures and write-down of long-lived assets
Prandium chairman, president, and chief executive officer, Kevin S. Relyea, commented on the 2000 results. “It
was a difficult year. Much of our attention was focused on the sale of El Torito and the subsequent down-sizing of
our G&A support structure while continuing to manage our other brands. We have major goals to accomplish over
the next year as we work to improve our businesses and restructure the company’s debt.”
As previously announced, Prandium’s subsidiary FRI-MRD Corporation elected not to pay the semi-annual interest
payments past due on its outstanding long term debt. Prandium also announced that it elected not to pay the
interest payment that came due on February 1, 2001 on its outstanding long-term debt. Under the terms of the note
agreements governing the FRI-MRD debt and the indentures governing the Prandium debt, these non-payments of
interest became “Events of Default” and the holders of such debt have become entitled to certain rights, including
the right to accelerate the debt. In addition, the vesting of the right (whether or not exercised) of the holders to
accelerate the debt caused an “Event of Default” to occur under Prandium’s Credit Facility with Foothill Capital
Corporation and Foothill became entitled to certain rights.
Prandium continues to negotiate with certain creditors to determine an acceptable capital restructuring of Prandium
and its subsidiaries. There can be no assurances that Prandium will be able to successfully negotiate with its
creditors or successfully resolve its capital structure.
Prandium(TM) operates a portfolio of full-service and fast-casual restaurants including Koo Koo Roo®, Hamburger
Hamlet®, and Chi-Chi’s® in the United States and also licenses its concepts outside the United States. Prandium,
Inc. is headquartered in Irvine, California. To contact the company call (949) 757-7900, or the toll free investor
information line at (888) 288-PRAN, or link to www.prandium.com. Address email to email@example.com.