<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1998
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from ________________ to _______________
0-23739
(Commission file number)
GALVESTON'S STEAKHOUSE CORP.
(Exact name of small business issuer as specified in its charter)
DELAWARE 94-3248672
(State or other jurisdiction (IRS Employer
of incorporation or organization) Identification No.)
151 E. ALESSANDRO BLVD., RIVERSIDE, CA 92508
(Address of principal executive offices)
(909) 789-7606
(Issuer's telephone number)
(Former name, former address and former fiscal year, if changed since last
report)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes [X] No [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes of
common equity, as of August 13, 1998: 2,428,325
Transitional Small Business Disclosure Format (check one): Yes [ ] No [X]
<PAGE>
GALVESTON'S STEAKHOUSE CORP.
INDEX
Page
Number
------
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Balance Sheet at June 30, 1998 2-3
Condensed Statements of Operations for the three months
ended June 30, 1998 and June 30, 1997 4
Condensed Statements of Operations for the six months
ended June 30, 1998 and June 30, 1997 5
Condensed Statements of Cash Flows for the six months
ended June 30, 1998 and June 30, 1997 6
Notes to Condensed Financial Statements 7-9
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations 10-13
Part II. OTHER INFORMATION
Item 1. Legal Proceedings 14
Item 2. Change in Securities 14
Item 3. Defaults Upon Senior Securities 15
Item 4. Submission of Matters to a Vote of Security Holders 15
Item 5. Other Information 15
Item 6. Exhibits and Reports on Form 8-K 15
SIGNATURES 15
Part III. EXHIBITS 16
1
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
GALVESTON'S STEAKHOUSE CORP.
CONDENSED BALANCE SHEET
JUNE 30, 1998
(UNAUDITED)
ASSETS
Current assets
Cash and cash equivalents $ 1,493,300
Accounts receivable 83,504
Advances to officers 390,980
Inventories 18,471
Acquisition deposits 943,085
Prepaid and other current assets 21,174
-----------
Total current assets 2,950,514
Furniture and equipment, net 870,806
Intangible assets, net 480,514
Other assets 560,305
-----------
Total assets $ 4,862,139
===========
See the accompanying notes
2
<PAGE>
GALVESTON'S STEAKHOUSE CORP.
CONDENSED BALANCE SHEET (CONTINUED)
JUNE 30, 1998
(UNAUDITED)
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current portion of notes payable $ 624,122
Accounts payable 72,314
Other accrued liabilities 362,469
-----------
Total current liabilities 1,058,905
Notes payable, net of current portion 782,878
-----------
Total liabilities 1,841,783
-----------
Commitments and contingencies
Stockholders' equity
Preferred stock, $.001 par value
4,000,000 shares authorized
no shares issued and outstanding -
Preferred stock, Series B, Convertible, $.001 par value
1,000,000 shares authorized
1,000,000 shares issued and outstanding 1,000
Common stock, $.01 par value
10,000,000 shares authorized
2,373,125 shares issued and outstanding 23,731
Additional paid-in capital 5,760,979
Accumulated deficit (2,765,354)
-----------
Total stockholders' equity 3,020,356
-----------
Total liabilities and stockholders' equity $ 4,862,139
===========
See the accompanying notes
3
<PAGE>
GALVESTON'S STEAKHOUSE CORP.
CONDENSED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
1998 1997
---------- ----------
Restaurant revenues $ 268,780 $ 479,537
Restaurant costs and expenses
Food and beverage 89,292 162,915
Payroll and payroll related costs 101,924 163,433
Restaurant operating expenses 106,401 99,025
Depreciation and amortization 32,721 33,798
General and administrative expenses 354,912 84,164
---------- ----------
Total restaurant costs and expenses 685,250 543,335
---------- ----------
Loss from operations (416,470) (63,798)
---------- ----------
Interest expense, net 102,524 167,586
---------- ----------
Net loss $ (518,994) $ (231,384)
========== ==========
Basic loss per share $ (0.22) $ (0.29)
========== ==========
Diluted loss per share $ (0.22) $ (0.29)
========== ==========
Weighted-average shares outstanding 2,373,125 786,796
========== ==========
See the accompanying notes
4
<PAGE>
GALVESTON'S STEAKHOUSE CORP.
CONDENSED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
1998 1997
----------- ----------
Restaurant revenues $ 655,041 $ 883,479
Restaurant costs and expenses
Food and beverage 202,385 289,296
Payroll and payroll related costs 229,985 314,753
Restaurant operating expenses 231,864 196,748
Depreciation and amortization 65,441 66,278
General and administrative expenses 463,513 154,893
----------- ----------
Total restaurant costs
and expenses 1,193,188 1,021,968
----------- ----------
Loss from operations (538,147) (138,489)
----------- ----------
Interest expense, net 206,688 302,396
----------- ----------
Net loss $ (744,835) $ (440,885)
=========== ==========
Basic loss per share $ (0.39) $ (0.58)
=========== ==========
Diluted loss per share $ (0.39) $ (0.58)
=========== ==========
Weighted-average shares outstanding 1,885,994 762,640
=========== ==========
See the accompanying notes
5
<PAGE>
GALVESTON'S STEAKHOUSE CORP.
CONDENSED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
1998 1997
---------- ----------
Cash flows from operating activities
Net loss $ (744,835) $ (440,885)
Adjustments to reconcile net loss to net cash
used in operating activities
Depreciation and amortization 65,441 66,278
Amortization of discount on private placement
proceeds - 117,746
Issuance of common stock in exchange for services
Rendered - 124,730
Issuance of common stock for additional
financing cost on notes payable 100,000 -
(Increase) decrease in operating assets (142,512) (346,924)
Increase (decrease) in operating liabilities (72,956) 41,268
---------- ----------
Net cash used in operating activities (794,862) (437,787)
---------- ----------
Cash flows from investing activities
Purchases of furniture and equipment (2,325) (22,985)
Deposit on future acquisitions (1,388,550) -
Other (10,431) -
---------- ----------
Net cash used in investing activities (1,401,306) (22,985)
---------- ----------
Cash flows from financing activities
Proceeds from issuance of notes payable - 501,282
Repayment of notes payable (639,500) -
Proceeds from issuance of common stock 4,264,242 23,718
---------- ----------
Net cash provided by financing activities 3,624,742 525,000
---------- ----------
Net increase in cash and cash
equivalents 1,428,574 64,228
Cash and cash equivalents, beginning of period 64,726 46,439
---------- ----------
Cash and cash equivalents, end of period $1,493,300 $ 110,667
========== ==========
See the accompanying notes
6
<PAGE>
GALVESTON'S STEAKHOUSE CORP.
NOTES TO CONSENSED FINANCIAL STATEMENTS
NOTE 1 - BASIS OF PRESENTATION
The unaudited Condensed Financial Statements have been prepared by the Company,
pursuant to the rules and regulations of the Securities and Exchange Commission.
The information furnished herein reflects all adjustments (consisting of normal
recurring accruals and adjustments) which are, in the opinion of management,
necessary to fairly present the operating results for the respective periods.
Certain information and footnote disclosures normally present in annual
financial statements prepared in accordance with generally accepted accounting
principles have been omitted pursuant to such rules and regulations. The results
of the six months ended June 30, 1998 are not necessarily indicative of the
results to be expected for the full year ending December 31, 1998.
NOTE 2 - LOSS PER SHARE
In 1997, the Financial Accounting Standard Board ("FASB") issued Statement of
Financial Accounting Standards ("SFAS") No. 128, "Earnings per Share." SFAS No.
128 replaced the previously reported primary and fully diluted earnings per
share with basic and diluted earnings per share. Unlike primary earnings per
share, basic earnings per share excludes any dilutive effects of options,
warrants, and convertible securities. Diluted earnings per share is very similar
to the previously reported fully diluted earnings per share. Basic earnings per
share is computed using the weighted-average number of common shares outstanding
during the period. Common equivalent shares are excluded from the computation if
their effect is anti-dilutive. Net loss per share amounts for all periods have
been restated to conform to SFAS No. 128 requirements.
Prior to SFAS No. 128, the Securities and Exchange Commission ("SEC") required
that, even where anti-dilutive, common and common equivalent shares issued
during the twelve-month period prior to the filing of an initial public offering
("IPO") be included in the calculation of earnings per share as if they were
outstanding for all periods presented (using the treasury stock method and the
IPO price). Because of new requirements issued in 1998 by the SEC for companies
that recently completed an IPO and interpretation by FASB of the initial
application of SFAS No. 128, the number of shares used in the calculation of
basic net loss per share has changed to exclude common equivalent shares, even
when anti-dilutive. Net loss per share for the three and six months ended June
30, 1997 have been restated to conform with SFAS No. 128 and Staff Accounting
Bulleting No. 98.
7
<PAGE>
GALVESTON'S STEAKHOUSE CORP.
NOTES TO CONSENSED FINANCIAL STATEMENTS
NOTE 3 - STOCKHOLDERS' EQUITY
In February 1998, the Company received approximately $4.2 million, net of
offering costs, from the issuance of 1,250,000 shares in common stock in
connection with the Company's IPO.
In connection with the IPO in February 1998, the Company granted the
underwriters warrants to purchase 125,000 shares of common stock at an initial
exercise price of 140% of the IPO price. The warrants are exercisable for a
period of four years commencing one year from the IPO date.
NOTE 4 - NOTES PAYABLE
In March 1998, $ 1,112,500 of the notes payable relating to the $1,500,000
private placements were converted into 278,125 shares of the Company's common
stock. The remaining balance of $387,500 plus accrued interest was paid off.
In March 1998, the bridge loans of $150,000 plus accrued interest were paid off.
In March through June 1998, certain other notes payable to various individuals
of $102,000 plus accrued interest were paid off.
In July 1998, the acquisition note payable of $375,000 plus accrued interest
were paid off (See note 6). In addition, the $92,000 convertible notes payable
was converted into 55,200 shares of the Company's common stock.
NOTE 5 - RELATED PARTY TRANSACTIONS
At June 30, 1998, the Company had advanced $390,980 to certain officers of the
Company. These advances are non-interest bearing and are expected to be repaid
by December 31, 1998.
8
<PAGE>
GALVESTON'S STEAKHOUSE CORP.
NOTES TO CONSENSED FINANCIAL STATEMENTS
NOTE 6 - CONTINGENCIES
Certain disputes arose with the sellers of the Torrance and Fullerton
restaurants resulting in an extended escrow closing period. Additionally,
certain disputes arose related to the Company's obligation under its consulting
agreement with a seller. The disputes in this transaction relate primarily to
the sellers' claim that the Company is obligated to pay for certain unpaid
federal income and state sales taxes of approximately $287,000 and $193,000,
respectively, and certain liabilities to vendors of approximately $135,000.
The Company has made certain payments in connection with its consulting
agreement with a seller and has withheld or deferred certain other payments as a
result of performance issues with the seller prior to and after possession of
the restaurants by the Company.
As a result of these disputes, the Company withheld payment on a $375,000 note
payable due subsequent to the Company's IPO in February 1998 and withheld five
(5) monthly payments due on a $870,000 note payable. On July 21, 1998, the
Company and the sellers of the Torrance and Fullerton restaurants settled the
matter which resulted in the Company paying the $375,000 note payable plus
accrued interest, paying the five (5) monthly payments on the $870,000 note
payable that were in arrears, and paying the amounts due the sellers under the
consulting agreement. The sellers in turn, paid the federal income and state
sales taxes, and the amounts due to the vendors.
9
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
GENERAL
The following discussion and analysis should be read in conjunction with the
Financial Statements and Notes thereto included elsewhere in this Form 10-QSB.
The Company currently owns the two restaurants it acquired in August 1996, along
with managing the two restaurants that are currently in escrow. The Company has
already converted one of these restaurants into a unique Galveston's steakhouse
format. The Torrance restaurant is closed for remodeling and the Fullerton
restaurant is undergoing a partial remodeling. It is anticipated that the
remodeling will be completed for both restaurants by the end of the third
quarter of 1998, with the subsequent re-opening of the Torrance restaurant
shortly thereafter. The Company believes that Galveston's will be well
positioned in a high-quality, moderately-priced segment of the restaurant
industry. The Company is continually seeking strategic restaurant acquisitions
to increase the size of the Company.
RESULTS OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 1998 COMPARED TO THE THREE MONTHS ENDED JUNE 30,
1997
Restaurant revenues declined $210,757 or 44.0% to $268,780 during the second
quarter of 1998, as compared with $479,537 for the same period in 1997. The
44.0% decrease was attributable to the closing of the Torrance restaurant for
remodeling and the partial remodeling of the Fullerton restaurant. Also, the
adverse weather (El Nino) has affected the restaurant industry's sales as a
whole in California.
Food and beverage costs decreased in the second quarter of 1998 to 33.2% of
restaurant revenues as compared with 34.0% for the same period in 1997. This
decrease resulted from slight declines in the cost of meat and produce.
Payroll and payroll related costs increased as a percentage of restaurant
revenues by 3.8% to 37.9% in the second quarter of 1998 as compared with 34.1%
for the same period in 1997. The increase in these costs was the result of
ongoing payroll and payroll related costs incurred while restaurant revenues
declined during the remodeling.
Restaurant operating expenses include all other unit-level operating costs, the
major components of which are operating supplies, repairs and maintenance,
advertising expenses, utilities, and other occupancy costs. A substantial
portion of these expenses are fixed or indirectly variable. These costs
increased by 18.9% of restaurant revenues to 39.6% in the second quarter of
1998, as compared with 20.7% for the same period in 1997. The increase in these
costs is attributable primarily to ongoing fixed operating costs continuing to
be incurred while the two restaurant units were being remodeled.
Depreciation and amortization amounted to 12.2% of restaurant revenues in the
second quarter of 1998 compared with 7.0% for the same period in 1997. The
increase is attributed to the fixed costs continuing to be incurred while
restaurant revenues declined during the remodeling.
10
<PAGE>
General and administrative expenses increased to 132.1% of restaurant revenues
in the second quarter of 1998 as compared with 17.6% for the same period in
1997. This increase resulted from the decline in restaurant revenues while the
remodeling of the two restaurants was undertaken, the increased costs of
pursuing potential acquisitions, higher legal and accounting costs, and payment
of compensation to management officers that was previously unpaid prior to the
completion of the initial public offering.
As a result of the above factors, loss from operations increased by $352,672 to
$416,470 in the second quarter of 1998 as compared with a $63,798 loss for the
same period in 1997.
Net interest expense was $102,524 during the second quarter of 1998, as compared
with net interest expense of $167,586 for the same period in 1997. The $65,062
decrease in net interest expense was the result of using the proceeds from the
initial public offering to pay off short-term borrowings and interest income
earned from the initial public offering proceeds.
Net loss for the second quarter of 1998 was $518,994 as compared with net loss
of $231,384 for the same period in 1997, an increase of $287,610. Loss per share
decreased to $0.22 during the second quarter of 1998 as compared with loss per
share of $0.29 for the same period in 1997 due to the increase in the number of
shares outstanding.
SIX MONTHS ENDED JUNE 30, 1998 COMPARED TO THE SIX MONTHS ENDED JUNE 30, 1997
Restaurant revenues decreased by $228,438 or by 25.9% to $655,041 during the
first half of 1998 as compared with $883,479 for the same period in 1997. This
decrease was attributable to the closing of the Torrance restaurant for
remodeling and the partial remodeling of the Fullerton restaurant. Also, the
adverse weather (El Nino) has affected the restaurant industry's sales as a
whole in California.
Food and beverage costs decreased by 1.8% to 30.9% of restaurant revenues in the
first half of 1998 as compared with 32.7% for the same period in 1997. This
decrease was a result of slight declines in the cost of meat and produce.
Payroll and payroll related costs decreased as a percentage of restaurant sales
by 0.5% to 35.1% in the first half of 1998 as compared with 35.6% for the same
period in 1997. This decrease was negligible.
Restaurant operating expenses increased by 13.1% of restaurant revenues to 35.4%
in the first half of 1998 as compared with 22.3% for the same period in 1997.
The increase was attributable to ongoing fixed operating costs continuing to be
incurred while restaurant revenues declined as a result of the remodeling of the
two restaurant units.
Depreciation and amortization expenses increased 2.5% to 10.0% of restaurant
revenues in the first half of 1998 compared with 7.5% for the same period in
1997. The increase is attributed to these fixed costs continuing to be incurred
while revenues declined during the remodeling.
General and administrative expenses increased to 70.8% of restaurant revenues
during the first half of 1998 as compared to 17.5% for the same period in 1997.
This increase resulted from the decline in revenues while the remodeling of the
two restaurant units
11
<PAGE>
was undertaken, the incurring of additional costs of pursuing potential
acquisitions, higher legal and accounting expenses, and the payment of
compensation to management officers that was previously unpaid prior to the
completion of the initial public offering.
As a result, loss from operations increased by $399,658 to $538,147 in the first
half of 1998 as compared with $138,489 for the same period in 1997.
Net interest expense was $206,688 during the first half of 1998 as compared with
net interest expense of $302,396 for the same period in 1997. The $95,708
decrease in net interest expense was the result of using the proceeds from the
initial public offering to pay off short-term borrowings and interest income
earned on the initial public offering proceeds.
Net loss for the first half of 1998 was $744,835 as compared with a net loss of
$440,885 for the same period in 1997, which is an increase of $303,950. Loss per
share decreased to $0.39 during the first half of 1998 as compared with loss per
share of $0.58 for the same period in 1997 due to the increase in the number of
shares outstanding.
LIQUIDITY AND CAPITAL RESOURCES
As a result of the completion of the initial public offering in February 1998,
the Company has a cash and cash equivalents balance of $1,493,300 at June 30,
1998, which together with anticipated cash from operations, management believes
is sufficient to cover operations for at least the next eighteen months. If
existing cash and cash equivalents and anticipated cash from operations is
insufficient to satisfy the Company's working capital and capital expenditures
requirements, the Company may have to sell additional equity or debt securities
or obtain credit facilities.
In July 1998, the Company repaid the $375,000 note payable plus accrued
interest.
The Company has working capital of $1,891,609 at June 30, 1998, which is
primarily the result of cash and cash equivalents significantly exceeding
current liabilities, including the current portion of notes payable.
IMPACT OF INFLATION
The primary inflationary factors affecting the Company's operations include food
and labor costs. The Company's restaurant personnel are paid at the federal and
state established minimum wage levels and accordingly, changes in such wage
level affect the Company' s labor costs. As costs of food and labor have
increased, the Company will be seeking to offset those increases through
economics of scale and/or increases in menu prices, although there is no
assurance that such offsets will continue. To date inflation has not had a
material impact on loss from operations.
YEAR 2000
The Company has not made a formal assessment of Year 2000 issues. Generally,
"Year 2000 issues" refers to problems that may arise due to the inability of
some computer software to distinguish between the early part of the present
century and the early part of the next because the software only uses two digits
to identify the year. Thus, 2001 would be indistinguishable from 1901. The
Company believes that there are three possible ways that it could be impacted by
this problem.
12
<PAGE>
First, the Company's internal software could fail. If the Company's software
should fail it might disrupt accounting, the restaurant management system and
similar tasks. The Company believes that even if its software should fail,
remediation would not create a material expense. The second concern posed by
Year 2000 issues is the impact that such software failure would have on the
Company's suppliers. The Company does not believe that its suppliers could not
continue to conduct business even in the face of Year 2000 problems. In
addition, the Company believes that its suppliers are sufficiently sophisticated
computer users that they will not experience problems, either by remediation or
because they are already using software which can make the distinction between
centuries ("Year 2000 compliant"). In the event that its suppliers should
experience software failure, the Company believes that the impact would not be
material. The third possible threat posed to the Company by Year 2000 issues is
one of a general downturn in the economy due to software failures. The Company
believes that this is a remote possibility.
Although the Company believes that it will not suffer any material adverse
effects as a result of Year 2000 issues, it has not made a formal assessment of
the problem and it cannot be certain its judgment regarding Year 2000 is
correct. In the event that the Company, or its supplier experience a software
failure such a failure could have a material adverse impact on the Company's
business financial condition and results of operations. Similarly, if the
economy as a whole should be adversely impacted by Year 2000 problems, it could
have a material adverse effect on the Company's business financial condition
and results of operations.
FORWARD LOOKING STATEMENTS
This report contains certain forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, amended. Stockholders are cautioned that all
forward-looking statements involve risks and uncertainty, including without
limitation, the ability of the Company to open new restaurants, general market
conditions, competition and pricing. Although the Company believes the
assumptions underlying the forward-looking statements contained herein are
reasonable, any of the assumptions could be inaccurate, and therefore, there can
be no assurance that the forward-looking statements contained in the report will
prove to be accurate.
13
<PAGE>
Part II. OTHER INFORMATION
Item 1. Legal Proceedings
Certain disputes arose with the sellers of the Torrance and Fullerton
restaurants resulting in an extended escrow closing period. Additionally,
certain disputes arose related to the Company's obligation under its consulting
agreement with a seller. The disputes in this transaction relate primarily to
the sellers' claim that the Company is obligated to pay for certain unpaid
federal income and state sales taxes of approximately $287,000 and $193,000,
respectively, and certain liabilities to vendors of approximately $135,000.
The Company has made certain payments in connection with its consulting
agreement with a seller and has withheld or deferred certain other payments as a
result of performance issues with the seller prior to and after possession of
the restaurants by the Company.
As a result of these disputes, the Company withheld payment on a $375,000 note
payable due subsequent to the Company's IPO in February 1998 and withheld five
(5) monthly payments due on a $870,000 note payable. On July 21, 1998, the
Company and the sellers of the Torrance and Fullerton restaurants settled the
matter which resulted in the Company paying the $375,000 note payable plus
accrued interest, paying the five (5) monthly payments on the $870,000 note
payable that were in arrears, and paying the amounts due the sellers under the
consulting agreement. The sellers in turn, paid the federal income and state
sales taxes, and the amounts due to the vendors.
Item 2. Change in Securities
The Company completed its initial public offering by selling 1,250,000 shares of
its $0.01 par value common stock for $5.00 per share pursuant to a registration
statement (commission file no. 333-29093) dated February 27, 1998. The managing
underwriters for this offering were William Scott & Co., L.L.C. and Hornblower
& Weeks, Inc. The Company received net proceeds of approximately $4,200,000
after deducting underwriters' commissions, non-accountable expense allowance
and other offering expenses of approximately $625,000, $187,500 and $1,237,500,
respectively.
The following table sets forth the Company's use of proceeds from its initial
public offering, from the closing of the offering until June 30, 1998.
Cash and cash equivalents $1,493,300
Deposit on future acquisitions 1,388,550
Repayment of notes payable 639,500
Advances to officers 211,200
General and administrative 467,450
----------
Total net proceeds $4,200,000
----------
----------
14
<PAGE>
Item 3. Defaults Upon Senior Securities
Not applicable
Item 4. Submission of Matters to a Vote of Security Holders
Not applicable
Item 5. Other Information
Not applicable
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
27.1 - Financial Data Schedule
(b) Reports on Form 8-K
None
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed in its behalf by the
undersigned thereunto duly authorized.
GALVESTON'S STEAKHOUSE CORP.
/s/ Hiram J. Woo
------------------------------
Chief Financial and Principal
Accounting Officer, President,
and Director
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
Restated
</LEGEND>
<S> <C> <C>
<PERIOD-TYPE> 6-MOS 6-MOS
<FISCAL-YEAR-END> DEC-31-1998 DEC-31-1997
<PERIOD-START> JAN-01-1998 JAN-01-1997
<PERIOD-END> JUN-30-1998 JUN-30-1997
<CASH> 1,493,300 0
<SECURITIES> 0 0
<RECEIVABLES> 83,504 0
<ALLOWANCES> 0 0
<INVENTORY> 18,471 0
<CURRENT-ASSETS> 3,034,848 0
<PP&E> 1,096,734 0
<DEPRECIATION> (225,928) 0
<TOTAL-ASSETS> 4,946,473 0
<CURRENT-LIABILITIES> 1,058,905 0
<BONDS> 0 0
0 0
1,000 0
<COMMON> 23,731 0
<OTHER-SE> 3,079,959 0
<TOTAL-LIABILITY-AND-EQUITY> 4,946,473 0
<SALES> 655,041 0
<TOTAL-REVENUES> 655,041 0
<CGS> 202,385 0
<TOTAL-COSTS> 990,803 0
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 206,688 0
<INCOME-PRETAX> (744,835) 0
<INCOME-TAX> 0 0
<INCOME-CONTINUING> (744,835) 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> (744,835) 0
<EPS-PRIMARY> (0.39) (0.58)
<EPS-DILUTED> (0.39) (0.58)
</TABLE>
