UNITED STATES
SECURITIES & EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended July 31, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from
Commission file number 0-12343
VICORP Restaurants, Inc.
(Exact name of registrant as specified in its charter)
COLORADO 84-0511072
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
400 West 48th Avenue, Denver, Colorado 80216
(Address of principal executive offices)
(Zip Code)
(303) 296-2121
(Registrant's telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed since
last report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 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
The registrant had 9,129,968 shares of its $.05 par value Common
Stock outstanding as of September 10, 1997.
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
VICORP Restaurants, Inc.
CONSOLIDATED BALANCE SHEETS
(in thousands)
<TABLE>
<CAPTION>
July 31, October 31,
1997 1996
----------- ------------
(unaudited)
ASSETS
<S> <C> <C>
Current assets
Cash $ 2,291 $ 1,406
Receivables 2,628 3,221
Inventories 5,034 6,517
Deferred income taxes 5,000 5,000
Prepaid expenses and other 928 1,202
-------- --------
Total current assets 15,881 17,346
-------- --------
Property and equipment, net 127,185 134,653
Deferred income taxes 39,102 41,324
Other assets 8,997 10,623
-------- --------
Total assets $ 191,165 $ 203,946
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Current maturities of
long-term debt (Note 2) $ 83 $ 78
Current maturities of capitalized
lease obligations 1,379 1,514
Accounts payable, trade 9,942 11,131
Accrued compensation 5,384 5,686
Accrued taxes 7,898 6,941
Accrued insurance 3,849 4,524
Other accrued expenses 4,616 4,776
-------- --------
Total current liabilities 33,151 34,650
-------- --------
Long-term debt (Note 2) 11,069 24,642
Capitalized lease obligations 7,925 8,943
Non-current accrued insurance 4,033 5,349
Other non-current liabilities and credits 6,691 8,093
Shareholders' equity
Series A Junior Participating Preferred
Stock, $.10 par value, 200,000 shares
authorized, no shares issued
Common stock, $.05 par value, 20,000,000
shares authorized, 9,129,968 and 9,055,026
shares issued and outstanding 456 453
Paid-in capital 84,994 84,431
Retained earnings 42,846 37,385
-------- --------
Total shareholders' equity 128,296 122,269
-------- --------
Total liabilities and shareholders' equity $ 191,165 $ 203,946
======== ========
</TABLE>
The accompanying notes are an integral part of the financial statements.
VICORP Restaurants, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share data)
<TABLE>
<CAPTION>
Three Three Nine Nine
months months months months
ended ended ended ended
-------- -------- --------- ---------
July 31, July 31, July 31, July 31,
1997 1996 1997 1996
-------- -------- --------- ---------
<S> <C> <C> <C> <C>
Revenues
Restaurant operations $ 80,718 $ 85,540 $242,389 $259,247
Franchise operations 857 905 2,432 2,632
------- ------- -------- -------
Total revenues 81,575 86,445 244,821 261,879
------- ------- -------- -------
Costs and expenses
Restaurant operations
Food 25,313 26,909 76,987 86,422
Labor 26,302 27,146 77,321 83,237
Other operating 20,705 23,085 62,768 70,592
General and administrative 5,836 6,135 17,686 18,223
Asset Disposal -- 5,800 -- 5,800
------- ------- ------- -------
Operating Profit 3,419 (2,630) 10,059 (2,395)
------- ------- ------- -------
Interest expense 590 895 2,006 3,009
Other (income) expense, net (141) (112) (479) (597)
------- ------- ------- -------
Income (loss) before income tax
expense (benefit) 2,970 (3,413) 8,532 (4,807)
Income tax expense (benefit) 1,068 (1,881) 3,071 (2,404)
------- ------- ------- -------
Net income (loss) $ 1,902 $ (1,532) $ 5,461 $ (2,403)
======= ======= ======= =======
Earnings (loss) per common
and dilutive common
equivalent share $ .21 $ (.17) $ .59 $ (.27)
======= ======= ======= =======
Weighted average common
shares and dilutive common
share equivalents 9,201 9,050 9,188 9,048
======= ======= ======= =======
</TABLE>
The accompanying notes are an integral part of the financial statements.
VICORP Restaurants, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
<TABLE>
<CAPTION>
Nine Nine
Months Months
ended ended
July 31, July 31,
1997 1996
------- -------
<S> <C> <C>
Operations
Net income (loss) $ 5,461 $ (2,403)
Reconciliation to cash provided by operations
Depreciation and amortization 14,653 15,920
Deferred income tax provision (benefit) 2,222 (2,414)
Loss on disposition of assets 141 6,019
Other, net (332) (160)
------- -------
22,145 16,962
Change in assets and liabilities
Trade receivables 1,314 777
Inventories 1,483 2,994
Accounts payable, trade (1,189) (5,872)
Other current assets and liabilities 94 (2,816)
Non-current accrued insurance (1,316) 707
------- -------
Cash provided by operations 22,531 12,752
------- -------
Investing activities
Purchase of property and equipment (9,098) (5,591)
Purchase of other assets (276) (32)
Disposition of property 917 (25)
Collection of non-trade receivables 702 544
------- -------
Cash provided by (used for)
investing activities (7,755) (5,104)
------- -------
Financing activities
Issuance of debt -- 10,000
Payment of debt and capitalized
lease obligations (14,731) (19,523)
Purchase of common stock -- --
Issuance of common stock 400 --
Other, net 440 (141)
------- -------
Cash used for financing activities (13,891) (9,664)
------- -------
Increase (decrease) in cash 885 (2,016)
Cash at beginning of period 1,406 3,988
------- -------
Cash at end of period $ 2,291 $ 1,972
======= =======
Supplemental information
Cash paid during the period for
Interest (net of amount capitalized) $ 2,013 $ 3,053
Income taxes 359 297
</TABLE>
The accompanying notes are an integral part of the financial statements.
VICORP Restaurants, Inc.
NOTES TO FINANCIAL STATEMENTS (unaudited)
- -----------------------------------------
1. The consolidated financial statements should be read in conjunction
with the annual report to shareholders for the year ended October 31,
1996. The unaudited financial statements for the nine months ended
July 31, 1997 and July 31, 1996 contain all adjustments which, in the
opinion of management, are necessary for a fair statement of the
results for the interim periods presented. All of the adjustments
included are of a normal and recurring nature.
2. As of July 31, 1997, the Company had $11,000,000 of borrowings
outstanding and $4,916,000 of letters of credit placed under its bank
credit facility. The Company's bank credit agreement expires on
October 31, 1999, but may be extended by the bank for one year.
3. In the fourth quarter of 1994, the Company adopted a plan to dispose
of 50 restaurant locations in trade areas that were no longer
considered appropriate for the Company's existing concepts. As part of
the disposal plan, the carrying value of those restaurants' assets were
written down to net realizable values. The Company also accrued for
expected carrying costs pending disposition and sublease disposition
losses. In the third quarter of fiscal 1996, the Company recorded an
asset disposal charge related to a decision to close and dispose of six
of its Angel's Diners. As of the end of fiscal 1996, the Company had
closed all the restaurants related to both disposal plans. Forty-four
stores have been disposed of through sublease, lease termination or
sale. Operating results for the closed restaurants for the third
quarter and first three quarters of fiscal 1996 were as follows:
<TABLE>
<CAPTION>
Three months ended Nine months ended
July 31, 1996 July 31, 1996
------------------ -----------------
<S> <C> <C>
Sales $1,260,000 $5,394,000
Store operating profit (loss) (172,000) (817,000)
</TABLE>
During the nine months ended July 31, 1997, $1,197,000 of closure and
carrying related costs were charged against the liability established
for such costs. Partially offsetting the charges are gains on
properties sold. As of July 31, 1997, the Company had $7,438,000 of
reserves remaining to provide for the disposal of 12 closed properties
and 9 subleased properties. Units classified as subleased may return
to closed status upon sublease termination. The reserves consisted of
$5,409,000 to reduce the disposal property to net realizable value and
$2,029,000 to provide for expected carrying costs and sublease losses.
4. Effects of Recently Issued Accounting Pronouncements
In March 1997, the Financial Accounting Standards Board ("FASB")
issued Statement of Financial Accounting Standards No. 128, "Earnings
Per Share" (SFAS No. 128), which supersedes Accounting Principles Board
Opinion No. 15, "Earnings Per Share" ("APB No. 15"). SFAS No. 128
simplifies the requirements for reporting earnings per share ("EPS") by
requiring companies only to report "basic" and "diluted" EPS. SFAS No.
128 is effective for both interim and annual periods ending after
December 15, 1997 but requires retroactive restatement upon adoption.
The Company will adopt SFAS No. 128 in the first quarter of its fiscal
year ending October 31, 1998. The Company does not believe such
adoption will have a material effect on either its previously reported
or future earnings per share.
In March 1997, the FASB issued Statement of Financial Accounting
Standards No. 129, "Disclosure of Information about Capital Structure"
(SFAS No. 129), which continues the existing requirements of APB No. 15
but expands the number of companies subject to portions of its
requirements. Specifically, SFAS No. 129 requires that entities
previously exempt from the requirements of APB No. 15 disclose the
pertinent rights and privileges of all securities other than ordinary
common stock. SFAS No. 129 is effective for periods ending after
December 15, 1997. The Company was not exempt from APB No. 15;
accordingly, the adoption of SFAS No. 129 will not have any effect on
the Company.
In June 1997, the FASB issued Statement of Financial Accounting Standards
No. 130, "Reporting Comprehensive Income" (SFAS No. 130) which establishes
standards for reporting and display of comprehensive income and its
components (revenues, expenses, gains, and losses) in a full set of
general-purpose financial statements. This Statement requires that all
items that are required to be recognized under accounting standards as
components of comprehensive income be reported in a financial statement that
is displayed with the same prominence as other financial statements.
SFAS No. 130 does not require a specific format for that financial statement
but requires that an enterprise display an amount representing total
comprehensive income for the period in that financial statement. This
Statement is effective for fiscal years beginning after December 15, 1997.
In June 1997, the FASB issued Statement of Financial Accounting Standards
No. 131, " Disclosures About Segments of an Enterprise and Related
Information" (SFAS No. 131) which establishes standards for the way that
public business enterprises report information about operating segments in
annual financial statements and requires that those enterprises report
selected information about operating segments in interim financial reports
issued to shareholders. It also establishes standards for related
disclosures about products and services, geographic areas, and major
customers. SFAS No. 131 supersedes FASB Statement No. 14, "Financial
Reporting for Segments of a Business Enterprise," but retains the
requirement to report information about major customers. SFAS No. 131
requires that a public business enterprise report financial and
descriptive information about its reportable operating segments. Operating
segments are components of an enterprise about which separate financial
information is available that is evaluated regularly by the chief operating
decision maker in deciding how to allocate resources and in assessing
performance. Generally, financial information is required to be reported
on the basis that it is used internally for evaluating segment performance
and deciding how to allocate resources to segments. SFAS No. 131 is
effective for financial statements for periods beginning after
December 15, 1997.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Results of operations
- ---------------------
The Company's quarterly financial information is subject to seasonal
fluctuation.
Restaurant operations
The following table sets forth certain operating information for the
Company's operating concepts and the Company as a whole.
<TABLE>
<CAPTION>
Third Quarter Year-to-Date
---------------------------- -----------------------------
Three Three Nine Nine
months ended months ended months ended months ended
------------- ------------ ------------ ------------
July 31, July 31, July 31, July 31,
1997 1996 1997 1996
------------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
Bakers Square
Restaurant sales $ 48,347,000 $ 51,432,000 $144,962,000 $156,257,000
Restaurant operating profit 3,072,000 3,473,000 9,256,000 5,570,000
Restaurant operating profit %<F1> 6.4% 6.8% 6.4% 3.6%
Divisional administrative costs 1,191,000 1,193,000 3,576,000 3,065,000
Divisional operating profit 1,881,000 2,280,000 5,680,000 2,505,000
Restaurants at quarter-end 150 155
Village Inn
Restaurant sales $ 32,118,000 $32,487,000 $96,363,000 $97,959,000
Restaurant operating profit 5,354,000 5,057,000 16,076,000 13,961,000
Restaurant operating profit %<F1> 16.7% 15.6% 16.7% 14.3%
Franchise income 857,000 905,000 2,432,000 2,632,000
Divisional administrative costs 966,000 791,000 2,622,000 2,037,000
Divisional operating profit 5,245,000 5,171,000 15,886,000 14,556,000
Restaurants at quarter-end 96 98
Angel's
Restaurant sales $ 253,000 $1,621,000 $ 1,064,000 $ 5,031,000
Restaurant operating profit (loss) (28,000) (130,000) (19,000) (535,000)
Restaurant operating profit % (11.1)% (8.0)% (1.8)% (10.6)%
Divisional administrative costs 4,000 47,000 11,000 226,000
Divisional operating profit (loss) (32,000) (177,000) (30,000) (761,000)
Restaurants at quarter-end 0 5
Consolidated
Restaurant sales $80,718,000 $85,540,000 $242,389,000 $259,247,000
Food cost % 31.4% 31.5% 31.8% 33.3%
Labor cost % 32.6% 31.7% 31.9% 32.1%
Other operating cost % 25.7% 27.0% 25.9% 27.2%
Restaurant operating profit % 10.4% 9.8% 10.4% 7.3%
Restaurant operating profit 8,398,000 8,400,000 25,313,000 18,996,000
Franchise income 857,000 905,000 2,432,000 2,632,000
Divisional general and
administrative costs 2,161,000 2,031,000 6,209,000 5,328,000
---------- --------- ----------- -----------
Divisional operating profit 7,094,000 7,274,000 21,536,000 16,300,000
---------- ---------- ----------- -----------
Unallocated general and
administrative costs 3,675,000 4,104,000 11,477,000 12,895,000
---------- ---------- ----------- -----------
Operating profit (before asset
disposal charge) 3,419,000 3,170,000 10,059,000 3,405,000
========== ========== =========== ===========
</TABLE>
________________
<F1> The Company changed its method of allocating administrative and support
expenses between its various divisions during the second quarter of 1997.
The operating results for the three quarters of the year in this report
incorporate restated figures for the first quarter which do not conform to
the figures originally reported for that period.
Consolidated restaurant sales decreased $4.8 million, or 5.6%, during the
third fiscal quarter and decreased $16.9 million, or 6.5% for the first
three quarters of fiscal 1997 compared to last year. Contributing to
lower sales was the operation of 12 fewer restaurants for the third quarter
of 1997.
During the third quarter of fiscal 1997, consolidated sales decreased 2.3%
and guest counts increased 0.2% on a comparable same store basis. Same
store sales for Village Inn decreased 0.1% and Bakers Square's same store
sales contracted by 3.7%. Comparable guest counts for Village Inn increased
1.5% and Bakers Square declined 0.9%.
For the first three quarters of fiscal 1997, comparable total store sales
decreased 3.0%, reflective of a 4.6% decrease for Bakers Square and a 0.6%
decrease for Village Inn. The comparable sales decrease in Bakers Square
was due to adverse weather conditions early in the period resulting in a
decrease in guest counts. Village Inn's year-to-date comparable sales
decreased slightly, while comparable guest counts increased modestly.
The Company continues to focus on increasing the guest counts at its Bakers
Square concept. Bakers Square Midwest units are currently being remodeled
in a significant campaign to enhance the dining experience. In addition,
both tactical marketing programs and special incentive programs in the
local restaurants will be expanded to increase customer awareness and
improve service levels.
Consolidated restaurant operating profit was basically unchanged but
increased as a percentage of restaurant sales from 9.8% to 10.4% in the
third quarter of 1997 versus the third quarter of 1996. Bakers Square's
restaurant operating profit percentage decreased by 0.4 percentage points
while Village Inn's increased by 1.1 percentage points over the same
quarter of 1996.
Consolidated restaurant operating profit increased by $6.3 million for the
first three quarters of fiscal 1997 compared to 1996's first three quarters
largely due to operating efficiencies in food, labor and other costs.
The following presents select quarterly trend data related to the
operations of Bakers Square and Village Inn:
<TABLE>
<CAPTION>
Bakers Square Village Inn
------------- -----------
Comparable Comparable
Comparable Store Store Comparable Store Store
Store Guest Operating Store Guest Operating
Sales Counts Margin Sales Counts Margin
-------------------------------- ---------------------------------
<S> <C> <C> <C> <C> <C> <C>
1996:
1st Qtr (7.6%) (0.3%) 0.1% 0.0% (0.8%) 13.5%
2nd Qtr 1.1% 0.0% 4.0% 4.4% 3.5% 13.7%
3rd Qtr 0.5% (4.5%) 6.8% 2.4% 2.9% 15.6%
4th Qtr (3.6%) (4.3%) 7.7% 0.1% 0.7% 17.7%
1997:
1st Qtr (4.6%) (2.4%) 6.7% (0.2%) (0.2%) 16.6%
2nd Qtr (5.6%) (3.3%) 6.1% (1.5%) (1.0%) 16.8%
3rd Qtr (3.7%) (0.9%) 6.4% (0.1%) 1.5% 16.7%
Asset Disposal
- ----------------
As of July 31, 1997, the Company had closed all of the 56 restaurants
scheduled for disposition under plans adopted in fiscal 1994 and fiscal
1996. In the first three quarters of fiscal 1997, the Company closed an
additional seven restaurants which were not included in either disposition
plan. The following table details sales and operating results for the 63
restaurants for the third quarter and first three quarters of fiscal 1997
compared to the prior year:
</TABLE>
<TABLE>
<CAPTION>
Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended
July 31, 1997 July 31, 1996 July 31, 1997 July 31, 1996
--------------------- ----------------------- ----------------------- ------------------------
Operating Operating Operating Operating
Profit Profit Profit Profit
Sales (Loss) Sales (Loss) Sales (Loss) Sales (Loss)
-------- ---------- ----------- --------- ----------- --------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Bakers Square $ 49,000 $ (75,000) $ 1,184,000 $ (37,000) $ 1,276,000 $(215,000) $ 4,654,000 $ (308,000)
Village Inn 18,000 (33,000) 383,000 6,000 809,000 44,000 1,622,000 (10,000)
Angel's 254,000 (26,000) 1,619,000 (97,000) 1,064,000 (18,000) 5,032,000 (453,000)
-------- --------- ----------- --------- ----------- --------- ----------- ----------
Total $ 321,000 $(134,000) $ 3,186,000 $ (128,000) $ 3,149,000 $(189,000) $11,308,000 $ (771,000)
========= ========= =========== ========== =========== ========= =========== ==========
</TABLE>
Other revenues and expense
- --------------------------
Compared to 1996's third quarter, franchise revenue in 1997's third quarter
decreased by $48,000. For the first three quarters of fiscal 1997, franchise
revenue decreased by $200,000 compared to the first three quarters of 1996.
The decrease was largely the result of a decrease in royalties related to
adoption of a revised franchise agreement by several existing franchisees as
well as lower franchise sales revenue.
As a percent of sales, general and administrative expense increased slightly
in the third quarter of 1997 from the comparable 1996 third quarter. Actual
general and administrative expense decreased $299,000 during the third
quarter and $537,000 year-to-date over the corresponding 1996 periods.
Year-to-date, general and administrative expense as a percent of revenues
was 7.2% and 7.0% for 1997 and 1996, respectively.
Interest expense declined 34%, or $305,000, for the third quarter and 33%,
or $1,003,000, for the first three quarters of 1997 as compared to fiscal
1996 due to a substantial reduction in long-term debt.
The Company's effective tax rate for the third quarter and first three
quarters of 1997 was 36% representing statutory tax rates offset somewhat
by the effect of FICA tax credits.
Liquidity and capital resources
- -------------------------------
Operating cash flows increased $9.8 million in the first three quarters of
1997 versus the first three quarters of 1996. The increase resulted
primarily from improved operating results and reduced working capital
requirements.
As of July 31, 1997, $11,000,000 of advances were outstanding under the
Company's bank credit facility and approximately $24,100,000 was available
for additional direct advances, subject to limitations on combined balances
of direct advances and letters of credit. In the first three quarters of
1997, the Company reduced its outstanding borrowings by $13.5 million. The
Company's bank credit agreement expires on October 31, 1999, but may be
extended by the bank for one year.
During the first three quarters of 1997, the Company disposed of 15
properties, three through sale, one through assignment, five through
sublease, five through lease termination, and one through sublease and
lease termination. Also during that time, closure and carrying costs of
$1,197,000 were charged against the liability established for such, and
cash proceeds of $917,000 were realized from the disposition of properties.
At July 31, 1997, the Company had 19 closed properties remaining which it
was trying to sell or sublease. Six of those properties were owned in fee
and the rest were leased. The Company also had 14 subleased properties.
The Company hopes to sell the fee properties over the next year and $4.2
million of proceeds are expected to be realized from their sale. The
Company does not anticipate significant proceeds from the disposition of
the leased properties. It is expected that the majority of the leased
properties will be subleased over the next twelve to eighteen months. Cash
carrying costs of approximately $2.3 million are expected to be incurred
over that period. The Company expects to sublease nine of the properties
at rentals lower than the Company's obligations under the prime leases.
Those sublease losses will be incurred over the remaining years of the
leases and the Company does not anticipate that the losses will materially
affect the Company's liquidity.
As of July 31, 1997, authorizations granted by the Board of Directors for
the purchase of 300,500 common shares of the Company's common stock
remained available. Twenty thousand shares, which were not part of the
Board repurchase authorization, were purchased in the first three quarters
of 1997. Future purchases with respect to the authorizations may be made
from time to time in the open market or through privately negotiated
transactions and will be dependent upon various business and financial
considerations.
Capital expenditures approximating $10.9 million are expected during the
remainder of the fiscal year. The level of planned expenditures may be
reduced as a result of operating conditions. Cash provided by operations,
the unused portion of the Company's bank credit facility and other
financing sources are expected to be adequate to fund these expenditures
and any cash outlays for the purchase of the Company's common stock as
authorized by the Board.
VICORP has guaranteed certain leases for twenty-five (25) restaurant
properties sold to others in 1986 and twenty (20) restaurant leases of
certain franchisees and others. Minimum future rental payments remaining
under these leases were approximately $11.5 million as of October 31, 1996.
These guarantees are included in the definition of financial instruments
with off-balance-sheet risk of accounting loss; however, the Company has
not been required to make any payments with respect to these guarantees and
presently has no reason to believe any payments will be required in the
future. The Company believes it is impracticable to estimate the fair
value of these financial guarantees (e.g., amounts the Company could pay to
remove the guarantees) because the Company has no present intention or need
to attempt settlement of any of the guarantees.
Outlook
- -------
The Company is evaluating various alternative investment strategies for
utilizing cash flow from operations. These alternatives include, but may
not be limited to, new Village Inn restaurant properties, paydown of credit
facility debt, acquisition of new computer systems, repurchase of common
stock, and acquisition of restaurant concerns in the family style segment.
Certain matters discussed in this report are "forward-looking statements"
intended to qualify for the safe harbors from liability established by the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements can generally be identified as such because the context of the
statement will include words such as the Company "believes," "anticipates,"
"expects" or words of similar import. Similarly, statements that describe
the Company's future plans, objectives or goals are also forward-looking
statements. Such forward-looking statements are subject to certain risk
and uncertainties which are described in close proximity to such statements
and which could cause actual results to differ materially from those
currently anticipated. Shareholders, potential investors and other readers
are urged to consider these factors carefully in evaluating the forward-
looking statements and are cautioned not to place undue reliance on such
forward-looking statements. The forward-looking statements made herein are
only made as of the date of this report and the Company undertakes no
obligation to publicly update such forward-looking statements to reflect
subsequent events or circumstances.
Item 6: Exhibits and Reports on Form 8-K.
(a) Exhibits
(27) 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 on its
behalf by the undersigned thereunto duly authorized.
VICORP Restaurants, Inc.
------------------------
(Registrant)
September 12, 1997 By: /s/ J. Michael Jenkins
---------------------------
J. Michael Jenkins,
President and Chief Executive Officer
September 12, 1997 By: /s/ Richard E. Sabourin
---------------------------
Richard E. Sabourin,
Executive Vice President and
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM VICORP
RESTAURANTS, INC. CONSOLIDATED BALANCE SHEETS AND STATEMENTS OF OPERATIONS
AS OF JULY 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000703799
<NAME> VICORP RESTAURANTS, INC.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-END> JUL-31-1997
<CASH> 2,291
<SECURITIES> 0
<RECEIVABLES> 2,628
<ALLOWANCES> 0
<INVENTORY> 5,034
<CURRENT-ASSETS> 15,881
<PP&E> 285,040
<DEPRECIATION> 152,577
<TOTAL-ASSETS> 191,165
<CURRENT-LIABILITIES> 33,151
<BONDS> 18,994
0
0
<COMMON> 456
<OTHER-SE> 127,840
<TOTAL-LIABILITY-AND-EQUITY> 191,165
<SALES> 242,389
<TOTAL-REVENUES> 244,821
<CGS> 76,987
<TOTAL-COSTS> 76,987
<OTHER-EXPENSES> 140,089
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,006
<INCOME-PRETAX> 8,532
<INCOME-TAX> 3,071
<INCOME-CONTINUING> 5,461
<DISCONTINUED> 0
<EXTRAORDINARY> 0
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