<PAGE> 1
================================================================================
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_______________________
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
_______________________
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended January 26, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _______________ to _________________
_______________________
Commission File Number 0-13234
KETTLE RESTAURANTS, INC.
(Exact name of Registrant as Specified in its Charter)
<TABLE>
<S> <C>
TEXAS 76-0276342
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
3131 ARGONNE 77098
HOUSTON, TEXAS (Zip Code)
(Address of principal executive offices)
</TABLE>
Registrant's Telephone Number, Including Area Code:(713) 524-3464
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
--- ---
_______________________
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as the latest practicable date.
COMMON STOCK, 1,147,767 SHARES OUTSTANDING AT FEBRUARY 28, 1995
================================================================================
<PAGE> 2
TABLE OF CONTENTS
<TABLE>
<S> <C>
Part I - Financial Information
Item 1 - Financial Statements (Unaudited)
Balance Sheets Page 3
Statements of Income (Loss) Page 4
Statements of Cash Flows Page 5
Notes to Financial Statements Page 7
Item 2 - Management's Discussion and Analysis
Financial Condition Page 12
Results of Operations Page 13
Part II - Other Information Page 16
</TABLE>
<PAGE> 3
ITEM 1 - FINANCIAL STATEMENTS
KETTLE RESTAURANTS, INC.
BALANCE SHEETS
(Amounts in thousands)
<TABLE>
<CAPTION>
JANUARY 26, OCTOBER 27,
1995 1994
----------- -----------
(Unaudited) (Audited)
<S> <C> <C>
ASSETS
Current Assets:
Cash and cash equivalents $ 4,064 $ 4,868
Receivables, net 3,497 3,293
Inventories 934 945
Investments 479 479
Prepaid expenses 594 619
Assets held for disposition 332 177
Current portion of deferred income
taxes 35 57
------- -------
Total current assets 9,935 10,438
------- -------
Property and equipment, net 24,542 25,302
Net investment in direct financing leases 6,924 7,261
Investment in leveraged leases 368 439
Notes receivable, net 736 737
Intangibles, net 42 47
Other 530 569
------- -------
$43,077 $44,793
------- -------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Current maturities of long-term debt,
including capitalized lease obligations
and subordinated debentures $ 3,990 $ 3,172
Accounts payable 916 346
Debt associated with assets held for
disposition 332 177
Accrued liabilities 1,669 2,760
------- -------
Total current liabilities 6,907 6,455
------- -------
Long-term debt, including capitalized
lease obligations 16,700 17,774
Subordinated debentures 8,000 8,774
Deferred income taxes 1,043 1,153
Deferred revenues and other credits 782 845
Commitments and contingencies
Shareholders' equity:
Common Stock, par value $.01 per
share, authorized 5,000,000 shares,
issued and outstanding 1,147,767 at
January 26, 1995 and October 27, 1994 11 11
Additional paid-in capital 74 74
Retained earnings 9,560 9,707
------- -------
Total shareholders' equity 9,645 9,792
------- -------
$43,077 $44,793
------- -------
</TABLE>
(The accompanying notes are an integral part of these financial statements.)
3
<PAGE> 4
ITEM 1 - FINANCIAL STATEMENTS (CONTINUED)
KETTLE RESTAURANTS, INC.
STATEMENTS OF INCOME (LOSS)
(Unaudited)
(Amounts in thousands, except number of shares and per share data)
<TABLE>
<CAPTION>
QUARTER ENDED
--------------------------
JANUARY 26, JANUARY 27,
1995 1994
----------- -----------
<S> <C> <C>
REVENUES:
Restaurant sales $ 8,714 $ 8,633
Franchise fees 815 844
Lease rental income 951 1,159
Income from leveraged leases 23 34
Gain on sale of property & equipment 182 149
Other 249 131
--------- ---------
$ 10,934 $ 10,950
--------- ---------
COSTS AND EXPENSES:
Restaurant Operations:
Food 2,780 2,700
Labor 3,061 2,926
Other operating costs, including
including depreciation and rent 2,622 2,928
Franchise expenses 325 295
Cost of lease rental income,
excluding interest 683 542
General and administrative 732 1,053
Interest 982 1,121
--------- ---------
11,185 11,565
--------- ---------
Loss before income taxes (251) (615)
Benefit for income taxes (104) (226)
--------- ---------
Net loss before cumulative effect of
change in accounting principle (147) (389)
Cumulative effect of change in accounting
principle - 258
--------- ---------
NET LOSS $ (147) $ (131)
LOSS PER SHARE BEFORE CUMULATIVE EFFECT
OF CHANGE IN ACCOUNTING PRINCIPLE (.13) (.34)
EARNINGS PER SHARE OF CUMULATIVE EFFECT
OF CHANGE IN ACCOUNTING PRINCIPLE - .23
--------- ---------
LOSS PER SHARE $ (.13) $ (.11)
========= =========
WEIGHTED AVERAGE COMMON AND COMMON
EQUIVALENT SHARES OUTSTANDING 1,147,767 1,147,767
========= =========
</TABLE>
(The accompanying notes are an integral part of these financial statements.)
4
<PAGE> 5
ITEM 1 - FINANCIAL STATEMENTS (CONTINUED)
KETTLE RESTAURANTS, INC.
STATEMENTS OF CASH FLOWS
(Unaudited)
(Amounts in thousands)
<TABLE>
<CAPTION>
QUARTER ENDED
-------------------------
JANUARY 26, JANUARY 27,
1995 1994
---------- -----------
<S> <C> <C>
CASH FLOWS USED IN OPERATING ACTIVITIES:
Net loss $ (147) $ (131)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization 473 500
Provision for losses on notes receivable
and accounts receivable 235 87
Unearned income amortization from
leases (23) (34)
Decrease in deferred taxes (88) (247)
Gain on cancellation of leases and
disposition of fixed assets (197) (187)
Decrease (increase) in net operating notes
receivable and accounts receivable (475) 305
(Increase) decrease in inventories, prepaids
and other assets 31 45
Decrease in accounts payable, accrued
liabilities and other deferred credits (582) (414)
------- -------
NET CASH USED IN OPERATING
ACTIVITIES (773) (334)
------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of equipment and property 359 1,053
Additions to property and equipment (46) (22)
Payments received on notes from sale of
equipment and property - 16
Payments received on leveraged leases and
minimum lease receipts in excess of income
recognized on direct financing leases 365 408
------- -------
NET CASH FROM INVESTING ACTIVITIES 678 1,455
------- -------
CASH FLOWS USED IN FINANCING ACTIVITIES:
Payments of long-term debt and capital lease
obligations (709) (778)
------- -------
NET CASH USED IN FINANCING ACTIVITIES (709) (778)
------- -------
NET INCREASE IN CASH AND CASH EQUIVALENTS (804) 343
CASH AND CASH EQUIVALENTS AT BEGINNING OF
PERIOD 4,868 1,515
------- -------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 4,064 $ 1,858
======= =======
</TABLE>
(The accompanying notes are an integral part of these financial statements.)
5
<PAGE> 6
ITEM 1 - FINANCIAL STATEMENTS (CONTINUED)
KETTLE RESTAURANTS, INC.
STATEMENTS OF CASH FLOWS (CONTINUED)
(UNAUDITED)
DISCLOSURE OF ACCOUNTING POLICY:
For purposes of the statements of cash flows, the Company considers all
highly liquid investments purchased with an original maturity of 90 days or
less to be cash equivalents.
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING ACTIVITIES:
During the first quarter ended January 27, 1994, the Company received a
note for $47,500 as partial payment on the sale of one property.
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
<TABLE>
<CAPTION>
Quarter Ended
----------------------------
January 26, January 27,
1995 1994
----------- -----------
<S> <C> <C>
Cash paid during the period for:
Interest $ 1,295,000 $ 1,351,000
Income taxes 185,000 130,000
</TABLE>
6
<PAGE> 7
ITEM 1 - FINANCIAL STATEMENTS (CONTINUED)
KETTLE RESTAURANTS, INC.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 1: PREPARATION OF FINANCIAL STATEMENTS
The accompanying unaudited financial statements for the quarter ended
January 26, 1995 have been prepared in accordance with the rules and
regulations of the Securities and Exchange Commission. Accordingly, certain
information and footnote disclosures normally included in financial statements
prepared in accordance with generally accepted accounting principles have been
condensed or omitted pursuant to such rules and regulations. In the opinion of
management, all significant intercompany accounts and transactions have been
eliminated, and all adjustments necessary for fair presentations of financial
position and results of operation have been made. It is suggested that these
unaudited financial statements be read in conjunction with the financial
statements and notes thereto included in the Company's annual report on Form
10-K for fiscal year 1994, filed with the Securities and Exchange Commission on
January 25, 1995.
Certain reclassifications have been made to the January 27, 1994 financial
statements contained herein to conform to the classifications presented in
fiscal 1995.
NOTE 2: RECEIVABLES
A summary of receivables follows (in thousands):
<TABLE>
<CAPTION>
JANUARY 26, OCTOBER 27,
1995 1994
----------- -----------
<S> <C> <C>
Trade receivables $ 1,176 $ 1,232
Workers' compensation insurance refund 1,125 1,101
Current portion of net investment in direct
financing leases 1,202 1,178
Other 186 87
------- -------
3,689 3,598
Less allowance for doubtful accounts 192 305
------- -------
$ 3,497 $ 3,293
------- -------
</TABLE>
7
<PAGE> 8
ITEM 1 - FINANCIAL STATEMENTS (CONTINUED)
NOTE 3: PROPERTY AND EQUIPMENT
A summary of property and equipment follows (in thousands):
<TABLE>
<CAPTION>
ESTIMATED
USEFUL JANUARY 26, OCTOBER 27,
LIVES (YEARS) 1995 1994
------------- ----------- -----------
<S> <C> <C> <C>
Land - $ 11,098 $ 11,297
Buildings and leasehold
improvements 15-25 20,315 20,384
Restaurant equipment 6-19 10,873 10,886
Automobiles, trucks and other 3-10 1,476 1,473
Construction in progress - 31 14
Real property under capitalized
leases term of lease 4,676 5,084
--------- ---------
$ 48,469 $ 49,138
Less accumulated depreciation
and amortization 23,927 23,836
--------- ---------
$ 24,542 $ 25,302
--------- ---------
</TABLE>
As of January 26, 1995 and October 27, 1994, the Company had entered into
agreements to sell or transfer ownership of certain real and personal property.
In management's opinion, the agreements will be consummated within twelve
months of the end of each respective quarter or fiscal year end; therefore, as
of January 26, 1995, and October 27, 1994, $332,000 and $177,000, respectively,
of assets held for disposition, have been classified as current assets.
The following details assets held for dispositions (in thousands):
<TABLE>
<CAPTION>
JANUARY 26, OCTOBER 27,
1995 1994
----------- ----------
<S> <C> <C>
Land $ 208 $ 132
Buildings and leasehold improvements 182 195
Restaurant equipment and other - 102
Notes receivable 61 -
Investment in leverage leases 3 -
--------- --------
454 429
Less accumulated depreciation 122 252
--------- --------
Net book value of assets held for
disposition
Debt associated with assets held for 332 177
disposition
332 177
--------- --------
$ 0 $ 0
--------- --------
</TABLE>
8
<PAGE> 9
ITEM 1 - FINANCIAL STATEMENTS (CONTINUED)
NOTE 4: OTHER ASSETS
A summary of other assets follows (in thousands):
<TABLE>
<CAPTION>
JANUARY 26, OCTOBER 27,
1995 1994
----------- -----------
<S> <C> <C>
Deferred financing costs on reorganization,
net $ 389 $ 427
Deferred bond offering cost, net 66 73
Other 75 69
--------- --------
$ 530 $ 569
--------- --------
</TABLE>
NOTE 5: ACCRUED LIABILITIES
A summary of accrued liabilities follows (in thousands):
<TABLE>
<CAPTION>
JANUARY 26, OCTOBER 27,
1995 1994
----------- -----------
<S> <C> <C>
Accrued interest $ 332 $ 681
Payroll and payroll taxes 292 408
Accrued sales taxes 199 213
Accrued federal income taxes - 200
Other taxes 100 344
Accrued legal and professional 124 60
Accrued insurance 91 115
Accrued workers' compensation insurance 174 204
Accrued administration bonuses - 48
Accrued ESOP 120 70
Other 237 417
--------- --------
$ 1,669 $ 2,760
--------- --------
</TABLE>
NOTE 6: ACCOUNTING STANDARDS
In February 1992, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 109, "Accounting for Income
Taxes" ("SFAS No. 109"). SFAS No. 109 requires a change from the deferred
method of accounting for income taxes to the asset and liability method. Under
the asset and liability method of SFAS No. 109, deferred tax assets and
liabilities are recognized for the future tax consequences attributable to
differences between the financial statement carrying amounts of existing assets
and liabilities and their respective tax basis. Deferred tax assets and
liabilities are measured using enacted tax rates expected to be recovered or
settled. Under SFAS No. 109, the effect on deferred tax assets and
liabilities of a change in tax rates is recognized in income in the period of
enactment.
Effective October 29, 1993, the Company adopted SFAS No. 109. The
cumulative effect of the change in method of accounting for income taxes of
$258,000 is determined as of October 29, 1993 and is reported separately in
9
<PAGE> 10
ITEM 1 - FINANCIAL STATEMENTS (CONTINUED)
the fiscal 1994 Statement of Income. This effect is primarily attributable to
the difference between tax rates in effect when deferred tax assets and
liabilities arose and current tax rates. Deferred taxes accounted for under
the deferred method and existing prior to the adoption of SFAS No. 109,
included the effect of net operating loss and alternative minimum tax credit
carryforwards. Management has calculated that future reversals of existing
deferred tax liabilities will be sufficient to realize existing deferred tax
assets, including those related to net operating loss and alternative minimum
tax credit carryforwards within the available carryforward period.
Accordingly, the Company has recorded no valuation allowance for deferred tax
assets.
The tax effects of temporary differences that give rise to significant
components of deferred income tax liabilities and assets under the asset and
liability method of SFAS No. 109 are as follows (in thousands):
<TABLE>
<CAPTION>
THREE MONTHS DEFERRED
JANUARY 26, PROVISION OCTOBER 27,
1995 (BENEFIT) 1994
-------------- ------------- ------------
<S> <C> <C> <C>
Deferred Tax Assets:
Allowance for doubtful accounts 126 (43) 169
Accrued expenses 77 (2) 79
Capital lease obligations 1,960 (57) 2,017
Deferred gains 209 (10) 219
Net operating loss carryforwards 96 82 14
Alternative minimum tax credit
carryforwards 605 - 605
Other, net 44 (3) 47
-------- -------- ---------
Total deferred tax assets 3,117 (33) 3,150
Valuation allowance - - -
-------- -------- ---------
Net deferred tax assets 3,117 (33) 3,150
-------- -------- ---------
Deferred Tax Liabilities:
Depreciation (2,174) 8 (2,182)
Direct financing, sales and leverage
type leases (1,876) 108 (1,984)
Other (75) 5 (80)
-------- -------- ----------
Total deferred tax liabilities (4,125) 121 (4,246)
-------- -------- ----------
Total net deferred tax
assets (liabilities) (1,008) 88 (1,096)
======== ======== ==========
</TABLE>
NOTE 7: COMMITMENTS AND CONTINGENCIES
The Company presently has no locations under construction.
The Company's workers' compensation policies are retrospectively adjusted
policies for which the estimated premiums paid are subject to adjustment based
upon actual claims incurred. Although no assurances can be given, management
believes, based upon the Company's historical workers'
10
<PAGE> 11
ITEM 1 - FINANCIAL STATEMENTS (CONTINUED)
compensation claims experience that related amounts recorded by the Company for
unpaid workers' compensation claims and claims adjustment expenses are
adequate.
The Company is a party to various lawsuits and claims generally incidental
to its business. In the opinion of management, the ultimate disposition of
these matters is not expected to have a significant adverse effect on the
Company's financial position or results of operations.
The Company currently has employment agreements with substantially all of
its executive officers. The employment agreements provide for the continuation
of employment of each executive officer through January 1, 1996, subject to
termination by the Company under certain conditions, and automatically
extending for one year on each January 1, beginning in 1996, unless otherwise
terminated. Each executive officer is entitled to receive a base salary, bonus
and incentive awards, benefits and perquisites, all as established from time to
time by the Board of Directors of the Company.
11
<PAGE> 12
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
FINANCIAL CONDITION
At January 26, 1995, the Company had working capital of approximately
$3,028,000 and a cash position consisting of cash and cash equivalents of
approximately $4,064,000. The Company has no lines of credit. On
February 11, 1994, the Company signed a promissory note with the holder of its
13.3% notes for a $1,000,000 term loan bearing interest at 11.1%. The use of
these proceeds was restricted to the reimbursement of the payment of interest
on the 15 7/8% subordinated debentures (the "Debentures") due December 1, 1993
and for general corporate purposes. This term loan had an outstanding balance
of approximately $2,300 at January 26, 1995. It is expected that additional
future cash funds will be derived from operating and investing activities
similar to those outlined in the Statements of Cash Flows and the sale of
properties identified for disposition. The Company currently has sixteen
locations identified for possible sale. These locations primarily include
tracts of surplus land and previously closed restaurant locations. The loss of
operating profit/loss associated with operating properties included in
locations identified for possible sale is not anticipated to materially affect
future results from operations. The Company's cash requirements within its
restaurant operations are typical of the food service industry; therefore, it
does not require large amounts of working capital for its restaurant operations
since restaurant sales are primarily for cash, purchases are on open accounts
and restaurant inventories are generally limited to a three or four day supply.
Of the $479,000 in investments at January 26, 1995, approximately $474,000
is restricted by a pledge to collateralize a $470,000 letter of credit
associated with the current worker's compensation insurance policy.
The Company presently has no locations under construction.
The decrease of $804,000 in cash and cash equivalents during the first
quarter of fiscal 1995 relates, in part, to the payments during the period of
the semi-annual interest payment on the 15 7/8% subordinated debentures and the
monthly interest payments on the 13.3% senior secured notes. The increase of
$343,000 in cash and cash equivalents during the first quarter of fiscal 1994
was due, in part, to the sale of certain properties held for disposition offset
by the payment of related debt and the payments of interest relating to the 15
7/8 % subordinated debentures and the 13.3% senior secured notes.
The Company used cash in operating activities of $773,000 and $334,000,
respectively, during the quarters ended January 26, 1995 and January 27, 1994.
12
<PAGE> 13
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
The change in the number of restaurants in the Kettle Restaurant System
during fiscal 1994 and the first quarter of fiscal 1995 is shown in the
following table.
<TABLE>
<CAPTION>
QUARTER PERIOD QUARTER
ENDED 01/28/94- ENDED
01/27/94 10/27/94 01/26/95
---------- ---------- ---------
<S> <C> <C> <C>
Company operated restaurants:
Open at beginning of period 61 62 60
Opened - - -
Closed (1) (4) -
Acquired from franchises 2 2 3
Franchised - - -
---- ---- ----
Open at end of period 62 60 63
---- ---- ----
Franchised restaurants:
Open at beginning of period 95 91 87
Opened - 1 1
Closed (2) (3) (3)
Acquired by Company (2) (2) (3)
Franchised from Company - - -
---- ---- ----
Open at end of period 91 87 82
---- ---- ----
All restaurants:
Open at beginning of period 156 153 147
Opened - 1 1
Closed (3) (7) (3)
---- ---- ----
Open at end of period 153 147 145
---- ---- ----
</TABLE>
Restaurant revenues increased 1.0% to $8,714,000 for the quarter ended
January 26, 1995 compared to the same period in 1994. This increase is due, in
part, to the acquisition of three franchised stores during the first quarter of
fiscal 1995 offset, in part, by an .8% decrease in same store average
restaurant sales.
13
<PAGE> 14
ITEM 2 - MANAGEMENT'S DISCUSSION & ANALYSIS (CONTINUED)
Restaurant food costs were 31.9% of restaurant sales for the quarter ended
January 26, 1995 compared to 31.3% of restaurant sales for the same period in
the prior year. Labor and other restaurant operating expenses including
depreciation and rent were 65.2% and 67.8% of restaurant sales for the quarters
ending January 26, 1995, and January 27, 1994, respectively.
The components of other restaurant operating expenses as a percentage of
restaurant sales in the quarters ended January 26, 1995 and January 27, 1994
were as follows:
<TABLE>
<CAPTION>
PERCENT OF RESTAURANT SALES
QUARTER ENDED
---------------------------------------
JANUARY 26, JANUARY 27,
1995 1994
---------------- ------------------
<S> <C> <C>
Labor and related costs
(including management expenses) 35.1 33.9
Other restaurant operating expenses:
Operating expenses 6.2 5.5
Marketing expenses 0.5 1.0
Maintenance and repairs 2.1 2.2
Utilities 5.7 6.3
Insurance 5.9 8.6
Depreciation 3.3 3.3
Other 6.4 7.0
----- -----
30.1 33.9
----- -----
Total labor and other 65.2 67.8
===== =====
</TABLE>
The decrease in restaurant operating expense, as a percentage of sales, is
primarily due to a decrease in worker's compensation insurance costs.
Franchise fees decreased 3.4% to $815,000 and lease rental income decreased
17.9% to $951,000 in the quarter ended January 26, 1995 compared to the same
period in 1994. The decrease in franchise fees is due, in part, to the
decrease of .1% in weighted average sales of franchised restaurants and the net
decrease of nine franchised stores during fiscal 1994 and the quarter ended
January 26, 1995. The decrease in lease rental income, reflects the
termination of eleven franchised stores and the related leases thereon during
fiscal 1994 and the quarter ended January 26, 1995. Although two franchised
stores were added during fiscal 1994 and the first quarter of fiscal 1995,
neither of these locations included leases with the Company.
14
<PAGE> 15
ITEM 2 - MANAGEMENT'S DISCUSSION & ANALYSIS (CONTINUED)
Franchise expenses increased by approximately $30,000 compared to the same
period in the prior year. This increase is due primarily to increases in bad
debt reserves.
Cost of lease rental income increased approximately $141,000 due, in part,
to an increase in bad debt reserves and the payment of lease termination fees
for several vacant leased properties.
General and administrative costs were $732,000 for the quarter ended
January 26, 1995 compared to $1,053,000 for the same period in 1994. The
decrease is primarily due to the decrease in legal and professional fees of
$310,000. Additionally, the Company realized decreases in various other
miscellaneous expenses.
15
<PAGE> 16
PART II - OTHER INFORMATION
ITEM 1. Legal Proceedings
None
ITEM 2. Changes in Securities
None
ITEM 3. Defaults Upon Senior Securities
None
ITEM 4. Submission of Matters to a Vote of Security Holders
None
ITEM 5. Other Information
None
ITEM 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit 27 - Financial Data Schedule
(b) Reports on Form 8-K
None
16
<PAGE> 17
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.
KETTLE RESTAURANTS, INC.
(Registrant)
March 12, 1995 By: /s/Carlette Woods
-----------------
Carlette Woods
Vice President-Finance
(Chief Financial and
Accounting Officer)
17
<PAGE> 18
EXHIBIT INDEX
Exhibit
No.
-------
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> OCT-27-1994
<PERIOD-END> JAN-26-1995
<CASH> 4,059
<SECURITIES> 5
<RECEIVABLES> 3,689
<ALLOWANCES> 192
<INVENTORY> 934
<CURRENT-ASSETS> 9,935
<PP&E> 48,469
<DEPRECIATION> 23,927
<TOTAL-ASSETS> 43,077
<CURRENT-LIABILITIES> 6,907
<BONDS> 24,700
<COMMON> 11
0
0
<OTHER-SE> 9,634
<TOTAL-LIABILITY-AND-EQUITY> 43,077
<SALES> 8,714
<TOTAL-REVENUES> 10,934
<CGS> 2,780
<TOTAL-COSTS> 9146
<OTHER-EXPENSES> 822
<LOSS-PROVISION> 235
<INTEREST-EXPENSE> 982
<INCOME-PRETAX> (251)
<INCOME-TAX> (104)
<INCOME-CONTINUING> (147)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (147)
<EPS-PRIMARY> (.13)
<EPS-DILUTED> (.13)
</TABLE>
