Mexican Restaurants, Inc. Announces 2010 Second Quarter Operating Results (NASDAQ: CASA)

Mexican Restaurants, Inc. operates and franchises 72 Mexican restaurants. The current system includes 55 Company-operated restaurants, 16 franchisee operated restaurants and one licensed restaurant.

Special Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: growth strategy; dependence on executive officers; geographic concentration; increasing susceptibility to adverse conditions in the region; changes in consumer tastes and eating habits; national, regional or local economic and real estate conditions; demographic trends; inclement weather; traffic patterns; the type, number and location of competing restaurants; inflation; increased food, labor and benefit costs; the availability of experienced management and hourly employees; seasonality and the timing of new restaurant openings; changes in governmental regulations; dram shop exposure; and other factors not yet experienced by the Company. The use of words such as “believes”, “anticipates”, “expects”, “intends” and similar expressions are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. Readers are urged to carefully review and consider the various disclosures made by the Company in this release and in the Company’s most recent Annual Report and Form 10-K , that attempt to advise interested parties of the risks and factors that may affect the Company’s business.

Mexican Restaurants, Inc. and Subsidiaries Consolidated Statements of Operations (Unaudited)
			13-Week Period Ended 7/4/2010				13-Week Period Ended 6/28/2009				26-Week Period Ended 7/4/2010				26-Week Period Ended 6/28/2009
Revenues:
Restaurant sales			$	16,921,142			$	18,107,695			$	33,774,217			$	37,121,251
Franchise fees, royalties and other				117,776				126,578				241,688				264,867
Business interruption				--				103,528				--				103,528
				17,038,918				18,337,801				34,015,905				37,489,646
Costs and expenses:
Cost of sales				4,954,217				5,263,291				9,899,129				10,513,537
Labor				5,734,905				6,050,108				11,551,991				12,173,097
Restaurant operating expenses				4,387,496				4,522,659				8,772,384				9,304,997
General and administrative				1,251,211				1,632,038				2,699,712				3,318,767
Depreciation and amortization				862,780				885,013				1,721,146				1,752,970
Impairment and restaurant closure expense				6,197				214,778				11,418				237,231
Loss on involuntary disposals				--				15,028				--				7,797
Loss on sale of property and equipment				9,663				36,934				13,378				73,696
				17,206,469				18,619,849				34,669,158				37,382,092
Operating income (loss)				(167,551	)			(282,048	)			(653,253	)			107,554
Other income (expense):
Interest income				563				883				12,346				1,863
Interest expense				(44,599	)			(42,918	)			(106,368	)			(105,111	)
Other, net				5,945				9,601				24,513				20,102
				(38,091	)			(32,434	)			(69,509	)			( 83,146	)
Income (loss) from continuing operations before income taxes				(205,642	)			(314,482	)			(722,762	)			24,408
Income tax (expense) benefit				103,118				62,825				324,808				(2,983	)
Income (loss) from continuing operations				(102,524	)			(251,657	)			(397,954	)			21,425
Discontinued Operations:
Income (loss) from discontinued operations				--				(39,436	)			--				36,021
Restaurant closure expense				--				(369	)			(181,543	)			(190,941	)
Gain on sale of assets				--				387,083				--				386,502
Income (loss) from discontinued operations before income taxes			--					347,278				(181,543	)			231,582
Income tax (expense) benefit				--				(303,558	)			77,827				(281,090	)
Income (loss) from discontinued operations				--				43,720				(103,716	)			(49,508	)
Net loss			$	(102,524	)		$	(207,937	)		$	(501,670	)		$	(28,083	)
Basic income (loss) per common share
Income (loss) from continuing operations			$	(0.03	)		$	( 0.07	)		$	(0.12	)		$	0.01
Income (loss) from discontinued operations				--				0.01				(0.03	)			(0.02	)
Net loss			$	(0.03	)		$	(0.06	)		$	(0.15	)		$	(0.01	)
Diluted income (loss) per common share
Income (loss) from continuing operations			$	(0.03	)		$	(0.07	)		$	(0.12	)		$	0.01
Income (loss) from discontinued operations				--				0.01				(0.03	)			(0.02	)
Net loss			$	(0.03	)		$	(0.06	)		$	(0.15	)		$	(0.01	)
Weighted average number of common shares (basic)				3,423,148				3,284,641				3,366,388				3,271,358
Weighted average number of common shares (diluted)				3,423,148				3,284,641				3,366,388				3,272,981

« First ‹ Previous 1 2 3 Next › Last »