Aug 11, 2016 08:00:00 (ET)
Chanticleer Holdings Reports Positive Adjusted EBITDA for Second Quarter; Revenue Increases 25%
Strong Growth, Improved Revenue Mix and Efficiency Initiatives Drive Improved Profitability
CHARLOTTE, NC--(Marketwired - August 11, 2016) - Chanticleer Holdings, Inc. (NASDAQ: HOTR) ("Chanticleer," or the "Company"), owner, operator and franchisor of multiple branded restaurants in the U.S. and abroad, today announced financial results for the second quarter ended June 30, 2016.
Second Quarter Revenue Increases 25%, Company Achieves Adjusted EBITDA Profitability:
-- Total revenue for the second quarter increased 25.0% to $10.8 million,
primarily from growth in the Fast Casual Better Burger segment.
-- Cost of sales improved to 32.7% compared to 34.5% in the comparable
quarter last year.
-- Operating expenses improved to 54.5% compared to 58.4% in the comparable
quarter last year.
-- General and administrative expenses decreased to 12.8% from 21.0% in the
comparable quarter last year.
-- Net loss from continuing operations decreased to $(0.6) million or
$(0.03) per share, compared to $(2.6) million or $(0.21) in the
comparable quarter last year.
-- Restaurant EBITDA improved to $1.4 million compared to $0.7 million for
the comparable quarter of last year.
-- Adjusted EBITDA improved to a profit of $0.2 million compared to a loss
of $(0.6) million in the comparable quarter last year.
Six Months Revenue Increases 38%; $1.3 Million Adjusted EBITDA Improvement:
-- Total revenue for the six months increased 38.0% to $20.9 million,
primarily from growth in the Fast Casual Better Burger segment.
-- Cost of sales improved to 32.9%, compared to 34.8% in the comparable
period last year.
-- Operating expenses improved to 55.3% compared to 58.3% in the comparable
period last year
-- General and administrative expenses decreased to 14.6% from 23.2% of
sales in the comparable period last year.
-- Net loss from continuing operations decreased to $(1.5) million or
$(0.07) per share, compared $(4.6) million or $(0.50) in the comparable
period last year.
-- Net cash from operating activities improved to positive $0.3 million
compared to a negative $(2.9) million in the first six months of last
year.
-- Restaurant EBITDA improved to $2.6 million compared to $1.2 million in
the first six months of last year
-- Adjusted EBITDA improved to a loss of $(0.0) million compared to a loss
of $(1.3) million in the first six months of last year.
In June 2016, the Company approved a plan to exit the Australia and Eastern Europe markets, authorizing management to sell or close its five Hooters stores in Australia and its one store in Budapest. Management expects to complete negotiation of terms during the third quarter of 2016, and complete the disposal of the operations by the end of 2016. Accordingly, the operating results and related accounts of those regions have been classified as discontinued operations.
Mike Pruitt, Chairman and CEO of Chanticleer commented, "This was a very strong quarter for Chanticleer; we crossed a critical threshold and achieved EBITDA profitably from our continuing operations. These results were achieved primarily through growth and strong performance at our fast casual better burger segment, the recent strategic discontinuation of certain international stores to focus on restaurants with the strongest economic returns, and realization of initial cost benefits stemming from efficiency initiatives across our company."
Mr. Pruitt continued, "Our Better Burger business, which now accounts for well over half of our revenue, performed very well due to the growing strength of our regional brands. Little Big Burger (LBB), for example, has proven to be an exemplary acquisition and we have meaningfully increased the profitability of this business since acquiring it. We continue to expand our regional concepts through a combination
