UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
For the Quarter ended September 29, 1999
Commission File No. 0-14311
FAMILY STEAK HOUSES OF FLORIDA, INC.
Incorporated under the laws of IRS Employer Identification
Florida No. 59-2597349
2113 FLORIDA BOULEVARD
NEPTUNE BEACH, FLORIDA 32266
Registrant's Telephone No. (904) 249-4197
Indicate by check mark whether the registrant 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_____
Title of each class Number of shares outstanding
Common Stock 2,409,030
$.01 par value As of November 5, 1999
FAMILY STEAK HOUSES OF FLORIDA, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 29, 1999
(Unaudited)
Note 1. Basis of Presentation
The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for
interim financial information and the instructions to Form 10-Q, and do not
include all the information and footnotes required by generally accepted
accounting principles for complete financial statements. In the opinion of
management, all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation of the results for the interm
periods have been included. Operating results for the thirteen and thirty-
nine week periods ended September 29, 1999 are not necessarily indicative of
the results that may be expected for the fiscal year ending December 30, 1999.
The consolidated financial statements include the accounts of the Company and
its wholly-owned subsidiaries. All significant intercompany profits,
transactions and balances have been eliminated.
Note 2. Earnings Per Share
Basic earnings per share for the thirteen weeks ended September 29, 1999 and
September 30, 1998 were computed based on the weighted average number of
common shares outstanding. Diluted earnings per share for those periods have
been computed based on the weighted average number of common shares
outstanding, giving effect to all dilutive potential common shares that were
outstanding during the period. Dilutive shares are represented by shares
under option and stock warrants.
Note 3. New Accounting Pronouncement and Reclassification
At March 31, 1999, the Company adopted the provisions of the American
Institute of Certified Public Accountants' Statement of Position ("SOP")
98-5, "Reporting on the Costs of Start-Up Activities". SOP 98-5 requires
pre-opening costs to be expensed as incurred. Accordingly, all unamortized
pre-opening costs at March 31, 1999, amounting to $13,700, were charged to
1999 depreciation and amortization. For the three months and year-to-date
ended September 29, 1999, all pre-opening costs are included in "other
operating expenses" and the current and prior year's amortization of
pre-opening costs was reclassified accordingly.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Results of Operations
Quarter Ended September 29, 1999 versus September 30, 1998
The Company experienced a decrease in sales during the third quarter of
1999 as compared to the same period in 1998. Same-store sales (average unit
sales in restaurants that have been open for at least 18 months and operating
during comparable weeks during the current and prior year) in the third quarter
of 1999 decreased 1.5% from the same period in 1998, compared to an increase of
2.6% from 1998 as compared to 1997.
The decrease in same-store sales was primarily due to the effects of
increased competition and to losses in sales at certain restaurants which closed
for various periods due to Hurricane Floyd in September. Management is seeking
to improve sales trends by focusing on improved restaurant operations and
devising competitive strategies to offset the effects of new competition.
Management plans to sell restaurants which are not meeting sales and profit
expectations. The Company closed three restaurants during the first four months
of 1999 and sold one restaurant in July 1999 and one in November 1999. In
addition, the Company has entered into an agreement to sell one additional
restaurant in early 2000. The three closed restaurants and one other restaurant
are currently listed for sale. Proceeds from any sales of restaurants would be
used either to reduce long-term debt or build new restaurants with more
competitive facilities in superior locations.
Historically, the third and fourth quarters of each fiscal year are less
profitable for the Company than the first and second quarters. Even if the sales
trends improve, the Company is likely to incur losses in the fourth quarter.
The costs and expenses of the Company's restaurants include food and
beverage, payroll, payroll taxes and employee benefits, depreciation and
amortization, repairs, maintenance, utilities, supplies, advertising,
insurance, property taxes and rents. The Company's food, beverage, payroll
and benefit costs are believed to be higher than the industry average as a
percentage of sales as a result of the Company's philosophy of providing
customers with high value of food and service for every dollar a customer
spends. In total, food and beverage, payroll and benefits, depreciation and
amortization and other operating expenses as a percentage of sales increased
to 90.6% in the third quarter of 1999, from 90.0% in the same quarter of
1998.
Food and beverage costs as a percentage of sales decreased to 39.0% in
the third quarter of 1999 from 39.4% in the same period of 1998, primarily due
to sales price increases implemented after the third quarter of 1998, and to
increased rebates received from vendors on certain food products in the third
quarter of 1999.
Payroll and benefits as a percentage of sales increased to 30.0% in the
third quarter of 1999 from 28.7% in the same quarter of 1998. This cost in
1998 was reduced by a decrease of $100,000 in the Company's workers'
compensation reserve, due to better than expected claims experience. Payroll
and benefit costs in 1999 also increased due to increased health insurance
costs and restaurant management salaries.
Other operating expenses as a percentage of sales decreased to 16.4% in the
third quarter of 1999 from 16.6% in 1998, primarily due to lower utilities
and property insurance costs.
General and administrative expenses as a percentage of sales were 8.0%
in the third quarter of 1999, an increase from 6.7% in the same quarter of 1998.
This was primarily due to costs associated with the proxy contest from the
Company's 1999 annual meeting of shareholders. Interest expense increased to
$449,300 during the third quarter of 1999 from $430,200 in 1998. The increase
was due primarily to interest costs associated with additional borrowing under
the Company's credit facility in 1999.
In July 1999 the Company incurred an expense of $907,500 for a one-time
payment to four employees pursuant to the terms of their employment
agreements upon the change in control of the Company's Board of Directors.
In July 1999 the Company realized a gain of $241,800 from the sale of a
restaurant in Jacksonville, Florida. No property sales were completed in 1998.
The effective income tax benefit rates for the quarters ended September
29, 1999 and September 30, 1998 were 0% and 16.5%, respectively.
Net loss for the third quarter of 1999 was $1,200,000, compared to
$303,300 in 1998. Net loss per share was $.50 for 1999, compared to a net loss
per share of $.13 in 1998.
Nine Months Ended September 29, 1999 versus September 30, 1998
For the nine months ended September 29, 1999, total sales increased 1.1%
compared to the same period of 1998, primarily due to the opening of new
restaurants in June 1998 and April 1999. Same-store sales decreased 1.1% for the
nine months ended September 29, 1999, primarily due to the effects of increased
competition and the store closures from Hurricane Floyd.
Food and beverage costs, as a percentage of sales, for the nine month
period ended September 29, 1999 were 38.9%, compared to 39.1% for the same
period in 1998. The decrease was primarily due to sales price increases
implemented by the Company in 1999. Payroll and benefits increased to 29.0% in
1999 from 28.0% in 1998, primarily due to reductions in the Company's workers'
compensation liability in 1998.
For the nine months ended September 29, 1999, other operating expenses,
as a percentage of sales, decreased to 15.5% from 15.7% in 1998, primarily due
to lower utilities and property insurance costs. Depreciation and amortization
increased as a percentage of sales for the nine month period ended September 29,
1999, compared to the same period of 1998, due to additions to property and
equipment over the last 12 months.
For the nine months ended September 29, 1999, general and administrative
expenses, as a percentage of sales, increased to 6.7% of sales from 6.4% for the
same period in 1998, primarily due to the proxy contest and increased manager
training costs. Interest expense increased for the first nine months of 1999 to
$1,260,500 from $1,238,600 for the same period in 1998.
In July 1999 the Company incurred an expense of $907,500 for a one-time
payment to four employees pursuant to the terms of their employment
agreements upon the change in control of the Company's Board of Directors.
In July 1999, the Company realized a gain of $241,800 from the sale of a
restaurant in Jacksonville, Florida. No property sales were completed in 1998.
The effective income tax rates for the nine-month periods ended
September 29, 1999 and September 30, 1998 were 0% and 10.2% respectively.
Net loss for the nine months ended September 29, 1999 was $1,158,700 or
$.48 per share, compared to a net loss of $115,300 or $.05 per share for the
same period in 1998.
The Company's operations are subject to some seasonal fluctuations.
Revenues per restaurant generally increase from January through April and
decline from September through December. Operating results for the quarter ended
September 29, 1999 are not necessarily indicative of the results that may be
expected for the fiscal year ending December 29, 1999.
Liquidity and Capital Resources
Substantially all of the Company's revenues are derived from cash sales.
Inventories are purchased on credit and are converted rapidly to cash.
Therefore, the Company does not carry significant receivables or inventories. As
a result, working capital requirements for continuing operations are not
significant.
At September 29, 1999, the Company had a working capital deficit of
$1,850,200, compared to a working capital deficit of $744,100 at December 30,
1998. The increase in the deficit was primarily due to the net loss incurred
in 1999.
Cash provided by operating activities decreased to $469,000 in the first
nine months of 1999 from $1,730,000 in the same period of 1998. This decrease is
primarily due to the increased losses from operations.
The Company spent $3,146,400 in the first nine months of 1999 for land,
leasehold improvements and restaurant renovation and equipment. Capital
expenditures for 1999, based on present costs and plans for expansion, are
estimated to be $4,000,000. The Company projects that cash generated from
operations and funding previously received under its financing agreement with
Franchise Finance Corporation of America ("FFCA") will be sufficient to fund
these expenditures.
In December 1996, the Company entered into a $15.36 million Loan
Agreement with FFCA Mortgage Corporation ("FFCA"). The Loan Agreement governs
seventeen Promissory Notes payable to FFCA. Each Note is secured by a mortgage
on a Company restaurant property. The Promissory Notes provide for a term of
twenty years and an interest rate equal to the thirty-day LIBOR rate plus 3.75%,
adjusted monthly. The Loan Agreement provides for various covenants, including
the maintenance of prescribed debt service coverages. As of September 29, 1999,
the outstanding balance due under the loan was $13,318,600.
The Company used the proceeds of the FFCA loan to retire its Notes with
Cerberus Partners, L.P. ("Cerberus") and its loans with the Daiwa Bank Limited
and SouthTrust Bank of Alabama, N.A. In addition, the Company retired Warrants
for 210,000 shares of the Company's common stock previously held by Cerberus.
Cerberus continues to hold Warrants to purchase 140,000 shares of the Company's
common stock at an exercise price of $2.00 per share.
Also in December 1996, the Company entered into a separate loan
agreement with FFCA under which it borrowed an additional $2,590,000 in 1998.
This additional financing is evidenced by three additional Promissory Notes
secured by mortgages on three Company restaurant properties. The terms and
conditions of this loan agreement are substantially identical to those of the
loan agreement described above. As of September 29, 1999, the outstanding
balance under this loan was $2,527,700.
In October 1998, the Company received two commitments for new financing from
FFCA. The Company borrowed a total of $2.6 million in 1999 under the first
commitment, which is secured by mortgages on two Company restaurant
properties. As of September 29, 1999, the outstanding balance under this
loan was $2,586,500.
The second commitment was for construction financing for two new restaurants
to be built in 1999 or 2000. Terms of this commitment include funding of a
maximum of $1,600,000 per restaurant. Other terms and conditions of these
loan agreements are substantially identical to those of the $15.36 million
Loan Agreement described above.
Proceeds from the two new loan commitments should be sufficient to
satisfy the Company's capital requirements through the second quarter of 2000.
The Company's ability to build additional restaurants or make other capital
improvements after that time is dependent on its ability to secure additional
new financing.
The preceding discussion of liquidity and capital resources contains
certain forward-looking statements. Forward-looking statements involve a number
of risks and uncertainties identified from time to time in the Company's annual
report, quarterly filings, and public announcements.
Information Systems and the Year 2000
General. The Company uses and is dependent upon a significant number of
computer software programs and operating systems to conduct its business.
Such programs and systems include those developed and maintained by the
Company, software and systems purchased from outside vendors and software and
systems used by the Company's third party providers. The Company recognizes
that the Year 2000 (Y2K) issue is one of the most complex data processing
problems faced by businesses worldwide.
State of Readiness. The Company's approach to Y2K compliance includes a
standard set of methods and tools to coordinate and drive the project to
completion. The approach consists of six phases:
1. Assessment - Defining each system and process to determine if there are
date dependencies and how to resolve them.
2. Remediation - Implementing the steps identified in the assessment phase to
repair date errors.
3. Testing - Developing and implementing test scripts to determine if
remediated code is correct.
4. Implementation - Moving all approved changes from testing into production.
5. Check-Off - Formally acknowledging that each process has been implemented
and is functioning correctly.
6. Clean Management - Employing procedures and practices to prevent the
reintroduction of non-compliant applications, products and processes into the
operating environment, once Y2K compliance has been achieved.
Testing and remediation of critical systems is underway. The Company is
having its accounting software revised and rewritten and has received all of
the new software. The Company is currently behind schedule in testing the
components of the revised software, but expects to be able to complete
testing by the end of 1999. It is also testing cash registers and other
systems at its restaurants and expects to fix or replace any Y2K noncompliant
equipment and systems prior to January 1, 2000. The Company believes that
there are no material impediments to its goal of Y2K readiness with respect
to its internal systems.
The Company has relationships with vendors, customers and other third parties
that rely on software and systems that may not be Y2K compliant. The Company
has sent letters to significant suppliers inquiring about their Y2K
readiness, however with respect to such third parties, compliance matters
will not be within the Company's direct control. There can be no assurance
that Y2K compliance failures by such third parties will not have a material
adverse effect on the Company's results of operations, although the company
is in contact with these third parties in connection with its contingency
planning. To date the company has not received any response from its Y2K
inquiries of vendors which would lead management to believe that there will
be any adverse impact on Company operations.
Due to the unique nature of the problem and lack of historical experience, it
is difficult to predict with certainty what will happen after December 31,
1999. The Company may encounter unanticipated third party failures, a failure
to have successfully concluded system remediation efforts and other problems.
Any of these events may have a material adverse impact on the Company's
results of operations, financial condition or cash flows. Potential sources
of risk include the inability of principal suppliers to be Y2K ready, which
could result in delays in product deliveries from suppliers, and disruption
of the distribution channel, including transportation vendors. The amount of
any potential losses related to these occurrences cannot be reasonably
estimated at this time.
The most likely worst case scenario for the Company is that a significant
number of our restaurants will be temporarily unable to operate due to public
infrastructure failures and/or food supply problems. Some restaurants may
have problems for extended periods of time. Communications between the
corporate headquarters and the restaurants could also be disrupted. The
failure of restaurants to operate would result in reduced revenues and cash
flows for the Company during the disruption period. Loss of restaurant sales
would be partially mitigated by reduced costs.
The total cost to the company of these Y2K compliance activities is expected
to be approximately $100,000, of which approximately $40,000 has been spent
to date. These costs and the date on which the company plans to complete the
Y2K modifications and testing are based on management's best estimates, which
were derived using numerous assumptions about future events, including the
continued availability of certain resources, third-party modification plans
and other factors. They do not include the cost of third party's Y2K efforts
or of implementing the contingency plan. However, there can be no guarantee
that these estimates will be achieved, and actual results could differ from
those plans.
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) The following exhibits are filed as part of this report on Form 10-Q, and
this list comprises the Exhibit Index.
Exhibit 11.1
The table below details the number of shares and common stock equivalents
used in the computation of basic and diluted earnings per share:
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
9/29/99 9/30/98 9/29/99 9/30/98
<S> <C> <C> <C> <C>
Basic:
Weighted average common
shares outstanding used
in computing basic
earnings per share 2,409,000 2,371,600 2,401,000 2,339,200
Basic loss per share $ (0.50) $ (0.13) $ (.48) $ (.05)
Diluted:
Weighted average common
shares outstanding 2,409,000 2,371,600 2,401,000 2,339,200
Effects of shares
issuable under stock
plans using the treasury
method 6,400 3,400 11,000 17,000
Effects of warrants
issuable using the
treasury method -- -- -- 20,700
Shares used in computing
diluted earnings
per share 2,415,400 2,375,000 2,412,000 2,736,900
Diluted loss per share $ (0.50) $ (0.13) $ (.48) $ (.05)
</TABLE>
27.01 Financial Data Schedule.
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.
FAMILY STEAK HOUSES OF FLORIDA, INC.
(Registrant)
/s/ Glen F. Ceiley
Date: November 12, 1999 Glen F. Ceiley
Chairman of the Board
/s/ Edward B. Alexander
Date: November 12, 1999 Edward B. Alexander
Executive Vice President
(Principal Financial and Accounting
Officer)
Family Steak Houses of Florida, Inc.
Consolidated Results of Operations
(Unaudited)
<TABLE>
For The Quarters Ended
------------------------
<CAPTION> Sept. 29, Sept. 30,
1999 1998
----------- -----------
<C> <C>
<S>
Sales $ 9,237,800 $9,497,800
Costs and expenses:
Food and beverage 3,600,300 3,739,000
Payroll and benefits 2,772,600 2,726,000
Depreciation and amortization 480,500 506,700
Other operating expenses 1,517,000 1,579,400
General and administrative expenses 735,400 637,800
Change in control payments 907,500 --
Franchise fees 276,800 284,500
Loss on store closings -- --
Loss from disposition of equipment 26,200 30,200
----------- ----------
10,316,300 9,503,600
(Loss) earnings from operations (1,078,500) (5,800)
Gain on sale of property 241,800 --
Interest and other income 86,000 72,700
Interest expense (449,300) (430,200)
----------- ----------
Loss before income taxes (1,200,000) (363,300)
Income tax benefit -- (60,000)
----------- ----------
Net loss ($1,200,000) ($303,300)
=========== ==========
Basic loss per share ($0.50) ($0.13)
=========== ==========
Diluted loss per share ($0.50) ($0.13)
=========== ==========
See accompanying notes to consolidated financial statements.
</TABLE>
Family Steak Houses of Florida, Inc.
Consolidated Results of Operations
(Unaudited)
<TABLE>
For The Nine Months Ended
--------------------------
<CAPTION> Sept. 29, Sept. 30,
1999 1998
------------- ------------
<C> <C>
<S>
Sales $29,527,300 $29,192,200
Cost and expenses:
Food and beverage 11,487,000 11,410,000
Payroll and benefits 8,561,000 8,186,000
Depreciation and amortization 1,444,200 1,375,300
Other operating expenses 4,584,000 4,579,700
General and administrative expenses 1,991,600 1,855,200
Change in control payments 907,500 --
Franchise fees 884,500 874,700
Loss on store closings 25,000 --
Loss from disposition of equipment 61,000 113,700
------------- ------------
29,945,800 28,394,600
------------- ------------
(Loss) earnings from operations (418,500) 797,600
Gain on sale of property 241,800 --
Interest and other income 278,500 312,600
Interest expense (1,260,500) (1,238,600)
------------- ------------
Loss before income taxes (1,158,700) (128,400)
Income tax benefit -- (13,100)
------------- ------------
Net loss ($1,158,700) ($115,300)
============= ============
Basic loss per share ($0.48) ($0.05)
============= ============
Diluted loss per share ($0.48) ($0.05)
============= ============
See accompanying notes to consolidated financial statements.
</TABLE>
Family Steak Houses of Florida, Inc.
Consolidated Balance Sheets
(Unaudited)
<TABLE>
September 29, December 30,
<CAPTION> 1999 1998
-------------- ---------------
<C> <C>
<S>
ASSETS
Current assets:
Cash and cash equivalents $1,304,100 $1,910,200
Investments 310,700 644,000
Market securities 525,700 --
Receivables 158,800 107,000
Current portion of mortgages receivable 74,300 71,100
Income taxes receivable -- 60,200
Inventories 273,500 333,400
Prepaid and other current assets 235,600 296,600
-------------- ---------------
Total current assets 2,882,700 3,422,500
Mortgages receivable 181,600 237,600
Long-term investments 500,000 --
Property and equipment:
Land 8,094,600 8,882,100
Buildings and improvements 21,646,800 21,236,600
Equipment 12,004,000 12,528,600
-------------- ---------------
41,745,400 42,647,300
Accumulated depreciation (15,572,100) (16,509,400)
-------------- ---------------
Net property and equipment 26,173,300 26,137,900
Property held for sale 2,360,900 1,463,400
Other assets, principally deferred charges,
net of accumulated amortization 827,700 830,700
-------------- ---------------
$32,926,200 $32,092,100
============== ===============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $1,360,700 $1,381,000
Accrued liabilities 2,657,400 2,412,000
Investment margin debt 260,500 --
Current portion of long-term debt 451,000 370,500
Current portion of obligation under capital lease 3,300 3,100
-------------- ---------------
Total current liabilities 4,732,900 4,166,600
Long-term debt 17,981,800 16,574,300
Obligation under capital lease 1,050,200 1,052,700
Deferred revenue 17,100 23,200
-------------- ---------------
Total liabilities 23,782,000 21,816,800
Shareholders' equity:
Preferred stock of $.01 par;
authorized 10,000,000 shares;
none issued -- --
Common stock of $.01 par;
authorized 4,000,000 shares; outstanding
2,409,000 in 1999 and 2,371,600 shares in
1998 24,100 23,700
Additional paid-in capital 8,617,200 8,594,700
Accumulated other comprehensive income 4,700 --
Retained earnings 498,200 1,656,900
-------------- ---------------
Total shareholders' equity 9,144,200 10,275,300
-------------- ---------------
$32,926,200 $32,092,100
============== ===============
See accompanying notes to consolidated financial statements.
</TABLE>
Family Steak Houses of Florida, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION> For the Nine Months Ended
--------------------------
September 29, September 30,
1999 1998
------------ -------------
<C> <C>
<S>
Operating activities:
Net loss ($1,158,700) ($115,300)
Adjustments to reconcile net
earnings to net cash provided
by operating activities:
Depreciation and amortization 1,444,200 1,407,000
Directors' fees in the form of
stock options 22,500 22,500
Amortization of loan fees 21,200 18,800
Gain on sale of property (241,800) --
Loss on disposition of equipment 61,000 113,700
Decrease (increase) in:
Receivables (51,800) 4,700
Income taxes receivable 60,200 292,100
Inventories 59,900 22,700
Prepaids and other
current assets 61,000 47,800
Other assets (27,700) (160,700)
Increase (decrease) in:
Accounts payable (20,300) 40,100
Accrued liabilities 245,400 39,500
Deferred revenue (6,100) (2,900)
------------ ------------
Net cash provided in operating activities 469,000 1,730,000
------------ -------------
Investing activities:
Proceeds from notes receivable 52,800 108,100
Proceeds from sale of property 959,700 --
Net purchases of investments (687,700) (43,700)
Proceeds from sale of property
held for sale -- 263,200
Capital expenditures (3,146,500) (2,599,400)
------------ -------------
Net cash used by investing activities (2,821,700) (2,271,800)
------------ -------------
Financing activities:
Payments on long-term debt (1,112,000) (231,800)
Proceeds from issuance of long-term debt 2,600,000 2,590,000
Proceeds from investment margin debt 260,500 --
Payments on capital lease (2,300) (1,800)
Proceeds from the issuance of common stock 400 310,100
------------ -------------
Net cash provided by financing activities 1,746,600 2,666,500
------------ -------------
Net (decrease) increase in cash and cash equivalents (606,100) 2,124,700
Cash and cash equivalents - beginning of period 1,910,200 696,000
------------ -------------
Cash and cash equivalents - end of period $1,304,100 $2,820,700
============ =============
Supplemental disclosures of cash flow information:
Cash paid during the period for interest $ 1,285,100 $1,205,600
============ =============
Cash paid during the period for income taxes $0 $0
============ ============
See accompanying notes to consolidated financial statements.
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This financial data schedule contains summary financial information extracted
from the Company's 1999 Form 10Q for the Quarter ended September 29, 1999 and
is qualified in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-29-1999
<PERIOD-END> SEP-29-1999
<CASH> 1304100
<SECURITIES> 836400<F1>
<RECEIVABLES> 158800
<ALLOWANCES> 0
<INVENTORY> 273500
<CURRENT-ASSETS> 2882700
<PP&E> 41745400
<DEPRECIATION> 15572100
<TOTAL-ASSETS> 32926200
<CURRENT-LIABILITIES> 4732900
<BONDS> 17981800
0
0
<COMMON> 24100
<OTHER-SE> 9120100
<TOTAL-LIABILITY-AND-EQUITY> 32926200
<SALES> 9237800
<TOTAL-REVENUES> 9237800
<CGS> 3600300
<TOTAL-COSTS> 10316300
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 449300
<INCOME-PRETAX> (1200000)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1200000)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1200000)
<EPS-BASIC> (.50)
<EPS-DILUTED> (.50)
<FN>
<F1>
$310,700 Represents investments in certificates of deposits with
maturities of less than 1 year.
</FN>
</TABLE>
