<PAGE> 1
SECURITIES AND 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 September 30, 1996
------------------
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 1-9214
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Perkins Family Restaurants, L.P.
- --------------------------------------------------------------------------------
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
Delaware 62-1283091
- --------------------------------------------------------------------------------
(STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER IDENTIFICATION NO.)
INCORPORATION OR ORGANIZATION)
6075 Poplar Avenue, Suite 800, Memphis, Tennessee 38119-4709
- --------------------------------------------------------------------------------
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
(901) 766-6400
- --------------------------------------------------------------------------------
(REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)
Indicate by [X] 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
----- -----
<PAGE> 2
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
PERKINS FAMILY RESTAURANTS, L.P.
STATEMENTS OF INCOME
(Unaudited)
(In Thousands, Except Per Unit Data)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30 September 30
-------- -------- -------- --------
1996 1995 1996 1995
-------- -------- -------- --------
<S> <C> <C> <C> <C>
REVENUES:
Food sales $ 61,330 $ 61,555 $175,792 $171,116
Franchise revenues 4,887 4,779 13,914 12,974
-------- -------- -------- --------
Total Revenues 66,217 66,334 189,706 184,090
-------- -------- -------- --------
COSTS AND EXPENSES:
Cost of Sales:
Food cost 18,061 17,667 51,247 49,492
Labor and benefits 20,013 20,931 59,290 58,970
Operating expenses 12,351 12,667 36,147 35,547
General and administrative 5,914 5,604 17,655 16,837
Depreciation and amortization 4,001 3,688 11,748 10,581
Interest, net 1,271 1,267 3,841 3,541
Loss on/Provision for disposition of assets - 498 - 518
Benefit from litigation settlement - - - (190)
Other, net (266) (188) (721) (518)
-------- -------- -------- --------
Total Costs and Expenses 61,345 62,134 179,207 174,778
-------- -------- -------- --------
NET INCOME $ 4,872 $ 4,200 $ 10,499 $ 9,312
======== ======== ======== ========
WEIGHTED AVERAGE UNITS OUTSTANDING 10,289 10,267 10,289 10,267
NET INCOME PER UNIT $ 0.47 $ 0.40 $ 1.01 $ 0.90
CASH DISTRIBUTION DECLARED PER UNIT $ 0.325 $ 0.325 $ 0.975 $ 0.975
</TABLE>
The accompanying notes are an integral part of these financial statements.
2
<PAGE> 3
PERKINS FAMILY RESTAURANTS, L.P.
BALANCE SHEETS
(Unaudited)
(In Thousands, Except Unit Amounts)
<TABLE>
<CAPTION>
September 30, December 31,
1996 1995
------------- ------------
ASSETS
<S> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents $ 338 $ 1,825
Receivables, less allowance for
doubtful accounts of $418 and $481 6,173 8,683
Inventories, at the lower of first-
in, first-out cost or market 4,119 4,318
Prepaid expenses and other current assets 1,848 1,505
---------- ----------
Total current assets 12,478 16,331
---------- ----------
PROPERTY AND EQUIPMENT, at cost, net of
accumulated depreciation and amortization 116,313 117,435
NOTES RECEIVABLE, less allowance for
doubtful accounts of $10 and $14 846 1,883
INTANGIBLE AND OTHER ASSETS, net of
accumulated amortization of $25,551
and $25,259 25,311 26,180
---------- ----------
$ 154,948 $ 161,829
========== ==========
</TABLE>
The accompanying notes are an integral part of these balance sheets.
3
<PAGE> 4
PERKINS FAMILY RESTAURANTS, L.P.
BALANCE SHEETS
(Unaudited)
(In Thousands, Except Unit Amounts)
<TABLE>
<CAPTION>
September 30, December 31,
1996 1995
------------- ------------
LIABILITIES AND PARTNERS' CAPITAL
<S> <C> <C>
CURRENT LIABILITIES:
Current maturities of long-term debt $ 16,600 $ 3,575
Current maturities of capital lease obligations 1,814 1,984
Accounts payable 7,800 7,525
Accrued expenses 12,831 13,099
Distributions payable 3,475 3,475
---------- ----------
Total current liabilities 42,520 29,658
---------- ----------
CAPITAL LEASE OBLIGATIONS, less
current maturities 8,949 8,810
LONG-TERM DEBT, less current maturities 36,800 57,850
OTHER LIABILITIES 4,821 4,415
PARTNERS' CAPITAL:
General partner 619 611
Limited partners (10,483,490 and 10,481,370 Units
issued and outstanding) 63,521 63,373
Deferred compensation related to restricted Units (2,282) (2,888)
---------- ----------
Total partners' capital 61,858 61,096
---------- ----------
$ 154,948 $ 161,829
========== ==========
</TABLE>
The accompanying notes are an integral part of these balance sheets.
4
<PAGE> 5
PERKINS FAMILY RESTAURANTS, L.P.
STATEMENTS OF CASH FLOWS
(Unaudited)
(In Thousands)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30 September 30
----------------- -----------------
1996 1995 1996 1995
------- ------- ------- -------
<S> <C> <C> <C> <C>
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income $ 4,872 $ 4,200 $10,499 $ 9,312
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 4,001 3,688 11,748 10,581
Benefit from litigation settlement - - - (190)
Other noncash income and expense items 448 316 1,467 1,207
(Gain)/Loss on disposition of assets - 498 (23) 518
Changes in other operating assets and liabilities (527) (205) 1,866 (1,158)
------- ------- ------- -------
Total adjustments 3,922 4,297 15,058 10,958
------- ------- ------- -------
Net cash provided by operating activities 8,794 8,497 25,557 20,270
------- ------- ------- -------
CASH FLOWS FROM INVESTING
ACTIVITIES:
Cash paid for property and equipment (2,277) (4,644) (9,282) (20,943)
Proceeds from sales of property and equipment 190 739 573 854
Payments on notes receivable 84 231 1,671 555
------- ------- ------- -------
Net cash used in investing activities (2,003) (3,674) (7,038) (19,534)
------- ------- ------- -------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from long-term debt - 7,800 13,550 30,200
Payments on long-term debt (4,700) (7,175) (21,575) (19,200)
Principal payments under capital lease obligations (512) (498) (1,553) (1,466)
Distributions to partners (3,475) (3,478) (10,428) (10,391)
------- ------- ------- -------
Net cash used in financing activities (8,687) (3,351) (20,006) (857)
------- ------- ------- -------
Net increase (decrease) in cash and cash equivalents (1,896) 1,472 (1,487) (121)
------- ------- ------- -------
CASH AND CASH EQUIVALENTS:
Balance, beginning of period 2,234 - 1,825 1,593
------- ------- ------- -------
Balance, end of period $ 338 $ 1,472 $ 338 $ 1,472
======= ======= ======= =======
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE> 6
PERKINS FAMILY RESTAURANTS, L.P.
NOTES TO FINANCIAL STATEMENTS
Basis of Presentation
The accompanying unaudited financial statements of Perkins Family Restaurants,
L.P. (the "Partnership") have been prepared in accordance with the instructions
to Form 10-Q and therefore do not include all information and notes necessary
for complete financial statements in conformity with generally accepted
accounting principles. The results for the periods indicated are unaudited but
reflect all adjustments (consisting only of normal recurring adjustments) which
management considers necessary for a fair presentation of the operating
results. Results of operations for the interim periods are not necessarily
indicative of a full year of operations. The notes to the financial statements
contained in the 1995 Annual Report to Unitholders should be read in
conjunction with these statements.
Certain prior year amounts have been reclassified to conform to current year
presentation.
The Partnership is managed by Perkins Management Company, Inc. ("PMC"). PMC is
also the general partner of Perkins Restaurants Operating Company, L.P.
("PROC"), the entity through which the operations of the Partnership are
conducted. As general partner of the Partnership and PROC, PMC does not receive
any compensation other than amounts attributable to its 1% general partner's
interest in each of the Partnership and PROC. The Partnership reimburses PMC
for all of its direct and indirect costs (principally general and
administrative costs) allocable to the Partnership.
Net Income Per Unit
Net Income Per Unit is computed as follows (in thousands, except per unit
amounts):
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30 September 30
--------------------- --------------------
1996 1995 1996 1995
------- ------- ------- -------
<S> <C> <C> <C> <C>
Net income as reported $ 4,872 $ 4,200 $10,499 $ 9,312
Less: 1% general partner's interest (49) (42) (105) (93)
------- ------- ------- -------
Net income applicable to units $ 4,823 $ 4,158 $10,394 $ 9,219
======= ======= ======= =======
Weighted average units outstanding 10,289 10,267 10,289 10,267
Net income per unit $ 0.47 $ 0.40 $ 1.01 $ 0.90
</TABLE>
6
<PAGE> 7
Weighted Average Units Outstanding
Weighted average units outstanding are computed as follows (in thousands):
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30 September 30
--------------------- --------------------
1996 1995 1996 1995
------- ------- ------- -------
<S> <C> <C> <C> <C>
Weighted average units 10,284 10,265 10,284 10,265
Weighted average equivalent units 5 2 5 2
------- ------- ------- -------
Weighted average units outstanding 10,289 10,267 10,289 10,267
======= ======= ======= =======
</TABLE>
Contingencies
The Partnership is a party to various legal proceedings in the ordinary course
of business. Management does not believe it is likely that these proceedings,
either individually or in the aggregate, will have a materially adverse effect
on the Partnership's financial position or results of operations.
The Partnership has sponsored financing programs offered by certain lending
institutions to help its franchisees procure funds for the construction of new
franchised restaurants and to purchase and install the Perkins in-store bakery.
The Partnership provides a limited guaranty of the funds borrowed. At
September 30, 1996, there were approximately $1,183,000 in borrowings
outstanding under these programs. The Partnership has guaranteed $1,029,000 of
these borrowings which represents its minimum commitments. The Partnership
does not anticipate its guaranties will exceed these minimums in the future.
The Partnership has entered into a separate agreement with one of the lending
institutions to assist a franchisee in obtaining lease financing to install
in-store bakeries in 28 existing restaurants operated by the franchisee.
Pursuant to the agreement, the Partnership will provide a declining limited
guaranty to the lender for payment of the franchisee's obligations between the
lender and the franchisee. The Partnership's current maximum liability if the
maximum lease commitment is funded would be $945,000. At September 30, 1996,
there were approximately $517,000 in borrowings outstanding under the program,
of which the Partnership has guaranteed approximately $362,000.
7
<PAGE> 8
Supplemental Cash Flow Information
The increase or decrease in cash and cash equivalents due to changes in
operating assets and liabilities for the three and nine months ended September
30, consisted of the following (in thousands):
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ -----------------
1996 1995 1996 1995
------- ------- ------- -------
<S> <C> <C> <C> <C>
(Increase) Decrease in:
Receivables $ 774 $(1,104) $ 1,774 $ (439)
Inventories (248) 223 199 (27)
Prepaid expenses and
other current assets 86 (207) (926) (969)
Other assets 32 24 250 274
Increase (Decrease) in:
Accounts payable 274 (785) 274 246
Accrued expenses (1,870) 1,157 (111) (677)
Other liabilities 425 487 406 434
------- ------- ------- -------
$ (527) $ (205) $ 1,866 $(1,158)
------- ------- ------- -------
</TABLE>
The Partnership paid interest of $1,303,000 and $1,468,000 during the third
quarters of 1996 and 1995, respectively, and $4,179,000 and $3,544,000 for the
nine months ended September 30, 1996 and 1995, respectively.
8
<PAGE> 9
Federal Income Taxation
In 1987, tax legislation was enacted which will have the effect of taxing
publicly traded limited partnerships, such as the Partnership, as corporations
for tax years beginning after 1997.
In 1993, the Partnership recognized the cumulative effect of adopting Statement
of Financial Accounting Standards No. 109, "Accounting for Income Taxes" ("SFAS
109"). SFAS 109 requires the Partnership to recognize deferred tax assets and
liabilities for the expected future tax consequences of existing temporary
differences between the carrying amounts and the tax bases of assets and
liabilities that are projected to reverse after January 1, 1998, the date after
which the Partnership will become a taxable entity.
As of September 30, 1996, and December 31, 1995, the Partnership had deferred
tax assets related to existing temporary differences that are projected to
reverse after January 1, 1998. However, management believes that a conclusion
as to the realizability of certain of those assets based upon current
circumstances is highly subjective, and has therefore established valuation
allowances as appropriate. Accordingly, no deferred provision for income taxes
has been reflected in the accompanying financial statements.
The components of the Partnership's net deferred tax assets were as follows (in
thousands):
<TABLE>
<CAPTION>
September 30, December 31,
1996 1995
------------- ------------
<S> <C> <C>
Depreciation $(1,445) $(1,670)
Capitalized leases 1,303 1,240
Reserve, store dispositions 372 795
Other, net 230 210
------- -------
Total deferred tax assets 460 575
Valuation allowance (460) (575)
------- -------
Net deferred tax assets $ - $ -
======= =======
</TABLE>
9
<PAGE> 10
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS FOR THE THIRD QUARTER AND NINE MONTHS ENDED
SEPTEMBER 30, 1996
RESULTS OF OPERATIONS
Overview:
A summary of the Partnership's results for the third quarter and nine months
ended September 30 are presented in the following table. All revenues, costs
and expenses are expressed as a percentage of total revenues. Certain prior
year amounts have been reclassified to conform to current year presentation.
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30 September 30
------------------ ------------------
1996 1995 1996 1995
----- ----- ----- -----
<S> <C> <C> <C> <C>
Revenues:
Food sales 92.6% 92.8% 92.7% 93.0%
Franchise revenues 7.4 7.2 7.3 7.0
----- ----- ----- -----
Total Revenues 100.0 100.0 100.0 100.0
----- ----- ----- -----
Costs and Expenses:
Cost of sales:
Food cost 27.3 26.6 27.0 26.9
Labor and benefits 30.2 31.6 31.3 32.0
Operating expenses 18.7 19.1 19.1 19.3
General and administrative 8.9 8.4 9.3 9.1
Depreciation and amortization 6.0 5.6 6.2 5.7
Interest, net 1.9 1.9 2.0 1.9
Loss on / Provision for disposition of assets - 0.8 - 0.3
Benefit from litigation settlement - - - (0.1)
Other, net (0.4) (0.3) (0.4) (0.2)
----- ----- ----- -----
Total Costs and Expenses 92.6 93.7 94.5 94.9
----- ----- ----- -----
Net Income 7.4% 6.3% 5.5% 5.1%
===== ===== ====== =====
</TABLE>
Net income for the third quarter of 1996 was $4,872,000 or $.47 per limited
partnership unit versus $4,200,000 or $.40 per unit for the same period in
1995. For the nine months ended September 30, 1996, net income was $10,499,000
or $1.01 per unit compared to $9,312,000 or $.90 per unit in the prior year.
10
<PAGE> 11
Revenues:
Total revenues for the third quarter of 1996 declined $117,000, or 0.2%,
compared with the same quarter last year. The decrease in third quarter
revenues was primarily attributable to a net decline in restaurant food sales
due to the sale of four restaurants to franchisees and the closing of seven
underperforming restaurants in the past twelve months. This decrease was
offset by the addition of new Partnership-operated restaurants and increased
sales from existing restaurants.
Total revenues for the first nine months of 1996 increased $5,616,000, or 3.1%,
compared with the same period in 1995 due primarily to higher restaurant food
sales, increased sales from Foxtail Foods ("Foxtail"), the Partnership's
manufacturing operation, and higher franchise revenues.
The addition of eleven new Partnership-operated restaurants since January 1,
1995, contributed $1,533,000 and $6,262,000 to the increases in restaurant food
sales over the three and nine months ended September 30, 1995. Same store
comparable sales increased 2.4% and 2.1% over the third quarter and first nine
months of 1995, respectively. This improvement is primarily the result of an
effort to focus on marketing promotions which attract guests through new
product offerings at regular menu prices rather than discounting existing menu
items. Increases in comparable guest visits and selective menu prices also
contributed to this sales growth. These comparable stores accounted for
revenue increases of $764,000 for the third quarter and $3,917,000 for the nine
months. These increases were offset by decreases of approximately $2,762,000
and $6,321,000 attributable to the eleven restaurants which have been closed or
franchised over the past twelve months.
Revenues from Foxtail increased 4.3% and 5.7% over the three and nine months
ended September 30, 1995 and constituted approximately 8.9% and 8.1% of the
Partnership's revenues for those periods. The increase in Foxtail revenues can
be primarily attributed to increased production at the division's pie plant as
well as continued sales growth from in-store bakeries at franchised
restaurants. Foxtail offers cookie dough, muffin batters, pancake mixes, pies
and other food products to Partnership-operated and franchised restaurants
through food service distributors in order to ensure consistency and
availability of Perkins' proprietary products to each unit in the system.
Additionally, Foxtail manufactures certain proprietary and non-proprietary
products for sale to non-Perkins operations.
Franchise revenues, which consist primarily of franchise royalties and sales
fees, increased 2.3% over the third quarter and approximately 7.2% over the
first nine months of 1995. These increases are due to nineteen new franchised
restaurants that opened since September 30, 1995, partially offset by five
franchised units that were closed.
Costs and expenses:
Food cost:
In terms of total revenues, food cost for the three months ended September 30,
1996, increased 0.7 percentage points over the same period in 1995. Restaurant
division food cost increased only slightly due to a reduction in discounted
price promotions that offset increases in the costs of certain key commodities.
Foxtail food cost increased 4.4 percentage points due primarily to raw
material cost increases and aggressive price competition on non-Perkins
products.
11
<PAGE> 12
Food cost for the nine months ended September 30 increased 0.1 percentage
points over the same period last year. Increases in Foxtail food costs due to
raw material cost increases and price competition were offset by a net decline
in key restaurant division commodity costs and a reduction in discounted price
promotions.
The Partnership expects raw material cost pressures at Foxtail to continue for
the remainder of 1996 and also anticipates that the current high level of dairy
and pork prices will put pressure on food cost margins in the restaurant
division for the remainder of the year.
Foxtail, functioning as a manufacturing operation, typically has higher food
cost as a percent of revenue than the Partnership's restaurants. Although the
restaurants provide the majority of the Partnership's revenue, management
expects total food cost to increase as a percent of revenue as Foxtail becomes
a more significant source of revenues to the Partnership.
Labor and benefits:
Labor and benefits expense, as a percentage of total revenues, decreased 1.3
and 0.8 percentage points, respectively, for the three and nine months ended
September 30, 1996, primarily due to improved productivity in the Partnership's
restaurants. These expenses also benefited from reduced claims costs
associated with the Partnership's group health and workers compensation
programs. Labor and benefits expense for Foxtail, in terms of total Foxtail
revenues, also improved significantly from 1995 levels due to greater
productivity and improved efficiencies in its pie manufacturing facility. As a
percent of revenue, Foxtail labor and benefit charges are significantly lower
than the Partnership's restaurants. As Foxtail becomes a more significant
component of the Partnership's total operations, labor and benefits expense,
expressed as a percent of total revenues, should decrease.
The wage rates of the Partnership's hourly employees are impacted by Federal
and state minimum wage laws. The recent legislation raising the Federal
minimum wage is expected to have a material impact on the Partnership's labor
costs. In the past, the Partnership has been able to offset increases in labor
costs through selective menu price increases and improvements in productivity.
The Partnership anticipates that it can offset the majority of the current
increase through selective menu price increases. However, there is no
guarantee that future wage increases can be mitigated through raising menu
prices.
Operating expenses:
Operating expenses for the third quarter and first nine months of 1996
decreased as a percentage of total revenues. These decreases were primarily
attributable to management's emphasis on controlling operating costs in both
the restaurant and Foxtail divisions.
General and administrative:
General and administrative expenses, as a percentage of total revenues,
increased 0.5 and 0.2 percentage points for the third quarter and nine months
ended September 30, 1996, respectively. These increases are primarily the
result of increased incentive compensation costs. Costs associated with
enhanced administrative support for Foxtail also contributed to the increase
for the nine months.
Depreciation and amortization:
Depreciation and amortization for the three and nine months ended September 30,
1996, increased 8.5% and 11.0%, respectively, over the same periods last year
due primarily to refurbishments made to upgrade existing restaurants and the
addition of new Partnership-operated restaurants.
12
<PAGE> 13
Interest, net:
Borrowings used for unit expansion and restaurant upgrades caused interest
expense for the first nine months of 1996 to exceed 1995 levels by 8.5%. This
increase was partially offset by a decrease in interest expense associated with
capital lease obligations. Interest expense for the third quarter did not
increase significantly due to a reduction in incremental borrowings to fund new
restaurant development and improved cash flows for the first nine months of the
year.
Other, net:
Other income increased approximately $78,000 and $203,000 in the third quarter
and first nine months of 1996 compared to the same periods last year due
primarily to rental income on four restaurant properties which were leased to
franchisees in late 1995 and 1996 and one property leased to another restaurant
chain in 1996. Depreciation expense associated with these five properties
totaling $117,000 and $278,000 for the third quarter and first nine months,
respectively, is included in depreciation and amortization expense.
CAPITAL RESOURCES AND LIQUIDITY
Principal uses of cash during the third quarter and first nine months ended
September 30, 1996, were distributions paid to Unitholders, capital
expenditures, and a net reduction in long-term debt. Capital expenditures
consisted primarily of remodels and refurbishments to existing restaurants and
building and equipment purchases for new Partnership-operated restaurants. The
Partnership's primary source of funding was cash provided by operations.
The Partnership maintains a $40,000,000 revolving line of credit facility and a
$10,000,000 term loan agreement with three banks. The revolving line of credit
contains a $6,000,000 sublimit for letters of credit and expires on June 30,
1997, at which time all amounts outstanding become payable. As of September
30, 1996, $13,000,000 in borrowings and approximately $2,937,000 in letters of
credit were outstanding under the line of credit facility. The borrowings
under the term loan agreement are due in quarterly installments through June
30, 1998. As of September 30, 1996, $5,400,000 was outstanding under this
agreement.
The $13,000,000 in borrowings under the line of credit are classified as a
current liability as of September 30, 1996. The Partnership believes that an
extension of this line will be granted or that it can refinance the line of
credit through other sources.
During the fourth quarter of 1995, the Partnership issued $20,000,000 of 7.19%
Unsecured Senior Notes due December 13, 2005, to an insurance company. The
proceeds were used to repay outstanding borrowings under the Partnership's
revolving line of credit. Principal payments on these notes begin December 13,
1997. The note agreement also provides for a $15,000,000 Private Shelf Note
Facility which expires December 13, 1997.
As is typical in the restaurant industry, the Partnership ordinarily operates
with a working capital deficit since the majority of its sales are for cash,
while credit is received from its suppliers. Therefore, operating with a
working capital deficit does not impair the Partnership's short-term liquidity.
At September 30, 1996, this deficit amounted to $30,042,000, which was
primarily the result of utilizing available cash for capital expenditures and
distributions to Unitholders. The significant increase in the deficit since
December 31, 1995, is due to the classification of the revolving line of credit
as a current liability.
13
<PAGE> 14
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits - Reference is made to the Index of Exhibits attached hereto
as page 15 and made a part hereof.
(b) Reports on Form 8-K - None
Signature
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.
PERKINS FAMILY RESTAURANTS, L.P.
BY: PERKINS MANAGEMENT COMPANY, INC.,
GENERAL PARTNER
DATE: November 12, 1996 BY: /s/ Steven R. McClellan
----------------- -----------------------
Steven R. McClellan
Chief Financial Officer
BY: /s/ Michael P. Donahoe
--------------------------
Michael P. Donahoe
Vice President, Controller
(Chief Accounting Officer)
14
<PAGE> 15
Exhibit Index
Exhibit No. Description
- ----------- -----------
27 Financial Data Schedule (for SEC use only)
15
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE UNAUDITED
BALANCE SHEET AS OF SEPTEMBER 30, 1996 AND FROM THE STATEMENT OF INCOME FOR THE
NINE MONTHS ENDED SEPTEMBER 30, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1996
<CASH> 338
<SECURITIES> 0
<RECEIVABLES> 7,019
<ALLOWANCES> 428
<INVENTORY> 4,119
<CURRENT-ASSETS> 12,478
<PP&E> 203,917
<DEPRECIATION> 87,604
<TOTAL-ASSETS> 154,948
<CURRENT-LIABILITIES> 42,520
<BONDS> 45,749
0
0
<COMMON> 0
<OTHER-SE> 61,858
<TOTAL-LIABILITY-AND-EQUITY> 154,948
<SALES> 175,792
<TOTAL-REVENUES> 189,706
<CGS> 146,684
<TOTAL-COSTS> 176,087
<OTHER-EXPENSES> (721)
<LOSS-PROVISION> 215<F1>
<INTEREST-EXPENSE> 3,841
<INCOME-PRETAX> 10,499
<INCOME-TAX> 0
<INCOME-CONTINUING> 10,499
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 10,499
<EPS-PRIMARY> 1.01
<EPS-DILUTED> 1.01
<FN>
<F1>THE PROVISION FOR DOUBTFUL ACCOUNTS AND NOTES IS PRESENTED WITHIN OPERATING
EXPENSES IN THE ACCOMPANYING FINANCIAL STATEMENTS AND IS INCLUDED IN TOTAL COSTS ABOVE.
</FN>
</TABLE>
