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 Quarter Ended June 30, 1998 Commission file number 1-9606
AMERICAN RESTAURANT PARTNERS, L.P.
(Exact name of registrant as specified in its charter)
Delaware 48-1037438
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification)
555 North Woodlawn, Suite 3102
Wichita, Kansas 67208
(Address of principal executive offices) (Zip-Code)
Registrant's telephone number, including area code (316) 684-5119
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 [ ]
AMERICAN RESTAURANT PARTNERS, L.P.
INDEX
Page
Number
------
Part I. Financial Information
- -------------------------------
Item 1. Financial Statements
Consolidated Condensed Balance Sheets at
June 30, 1998 and December 30, 1997 1
Consolidated Statements of Operations
for the Three and Six Periods Ended
June 30, 1998 and July 1, 1997 2
Consolidated Statements of Cash Flows for
the Six Periods Ended June 30, 1998
and July 1, 1997 3
Notes to Consolidated Condensed Financial Statements 4-6
Item 2. Management's Discussion and Analysis of Consolidated
Financial Condition and Results of Operations 7-11
Part II. Other Information
- ---------------------------
Item 6. Exhibits and Reports on Form 8-K 12
AMERICAN RESTAURANT PARTNERS, L.P.
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
June 30, December 30,
ASSETS 1998 1997
- -------------------------------- ----------- -----------
Current assets:
Cash and cash equivalents $ 1,685,236 $ 509,398
Investments available for sale,
at fair market value 112,501 195,751
Accounts receivable 86,256 84,447
Due from affiliates 89,569 67,918
Notes receivable from
affiliates - current portion 74,060 72,387
Inventories 263,166 311,516
Prepaid expenses 167,237 245,177
---------- ----------
Total current assets 2,478,025 1,486,594
Net property and equipment 16,289,295 16,828,156
Other assets:
Franchise rights, net 939,139 1,010,616
Notes receivable from affiliates 56,519 75,899
Deposit with affiliate 350,000 350,000
Investment in Oklahoma Magic, L.P. 1,761,802 1,795,774
Other 773,387 679,106
---------- ----------
$22,648,167 $22,226,145
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIENCY)
- ----------------------------------------------
Current liabilities:
Accounts payable $ 1,529,929 $ 3,042,151
Due to affiliates 82,197 50,539
Accrued payroll and other taxes 483,724 385,016
Accrued liabilities 805,933 784,661
Current portion of long-term debt 2,005,317 12,899,728
Current portion of obligations
under capital leases 41,091 36,492
---------- ----------
Total current liabilities 4,948,191 17,198,587
Other noncurrent liabilities 341,895 204,337
Long-term debt 18,970,917 7,105,615
Obligations under capital leases 1,624,927 1,608,356
General Partners' interest
in Operating Partnership 128,076 120,702
Partners' capital (deficiency):
General Partners (7,142) (7,864)
Limited Partners:
Class A Income Preference 5,771,596 5,623,790
Classes B and C (7,742,037) (8,322,372)
Cost in excess of carrying value
of assets acquired (1,323,681) (1,323,681)
Unrealized gain (loss) in investment securities (64,575) 18,675
---------- ----------
Total partners' deficiency (3,365,839) (4,011,452)
---------- ----------
$22,648,167 $22,226,145
========== ==========
See accompanying notes.
<TABLE>
AMERICAN RESTAURANT PARTNERS, L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
Three Periods Ended Six Periods Ended
June 30, July 1, June 30, July 1,
1998 1997 1998 1997
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Net sales $ 9,461,329 $10,003,638 $18,687,975 $19,622,843
Operating costs and expenses:
Cost of sales 2,325,864 2,749,859 4,756,696 5,301,151
Restaurant labor and benefits 2,650,274 2,799,367 5,278,474 5,587,206
Advertising 621,964 676,505 1,232,765 1,237,796
Other restaurant operating
expenses exclusive of
depreciation and amortization 1,698,582 1,957,244 3,413,372 3,832,413
General and administrative:
Management fees - related party 659,213 695,424 1,301,131 1,364,873
Other 146,452 122,777 258,997 305,083
Depreciation and amortization 514,898 494,129 960,168 984,266
Equity in (income)/loss of affiliate (10,947) 95,692 14,376 170,005
---------- ---------- ---------- ----------
Income from operations 855,029 412,641 1,471,996 840,050
Interest income (2,768) (4,462) (5,763) (12,882)
Interest expense 660,197 537,448 1,213,385 1,099,981
Gain on life insurance settlement (875,533) - (875,533) -
---------- ---------- ---------- ----------
Income (loss) before General Partners'
interest in income (loss) of
Operating Partnership 1,073,133 (120,345) 1,139,907 (247,049)
General Partners' interest in
income (loss) of Operating Partnership 10,731 (1,203) 11,399 (2,470)
---------- ---------- ---------- ----------
Net income (loss) $ 1,062,402 $ (119,142) $ 1,128,508 $ (244,579)
========== ========== ========== ==========
Net income (loss) allocated to Partners:
Class A Income Preference $ 216,783 $ (24,321) $ 230,272 $ (49,959)
Class B $ 318,035 $ (35,662) $ 337,823 $ (73,195)
Class C $ 527,584 $ (59,159) $ 560,413 $ (121,425)
Weighted average number of Partnership
units outstanding during period:
Class A Income Preference 813,840 815,309 813,840 815,309
Class B 1,193,852 1,195,499 1,193,852 1,194,505
Class C 1,976,807 1,983,225 1,976,807 1,981,569
Basic and diluted net income (loss)
per Partnership interest $ 0.27 $ (0.03) $ 0.28 $ (0.06)
Distributions per Partnership interest $ 0.05 $ 0.11 $ 0.10 $ 0.22
<FN>
See accompanying notes.
</FN>
</TABLE>
AMERICAN RESTAURANT PARTNERS, L.P.
CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
June 30, July 1,
1998 1997
--------- --------
Cash flows from operating activities:
Net income (loss) $ 1,128,508 $ (244,579)
Adjustments to reconcile net income (loss)
to net cash provided by operating
activities:
Depreciation and amortization 960,168 984,266
Provision for deferred rent 8,184 5,033
Unit compensation expense - 11,737
Equity in loss of affiliate 14,376 170,005
(Gain) loss on disposition of assets (5,331) 18,222
Gain on insurance settlement (875,533) -
General Partners' interest in net
income (loss) of Operating Partnership 11,399 (2,470)
Net change in operating assets and liabilities:
Accounts receivable (1,809) (31,693)
Due from affiliates (1,328) (23,866)
Inventories 48,350 40,697
Prepaid expenses 77,940 914
Accounts payable (1,512,222) 346,443
Due to affiliates 31,658 98,874
Accrued payroll and other taxes 98,708 (248,163)
Accrued liabilities 21,272 (141,836)
Other, net (165,245) (76,960)
---------- ----------
Net cash (used in) provided by
operating activities (160,905) 906,624
Cash flows from investing activities:
Purchase of certificate of deposit - (6,567)
Redemption of certificate of deposit - 110,202
Additions to property and equipment (325,554) (1,208,840)
Proceeds from sale of property and equipment 16,452 701
Purchase of franchise rights - (15,000)
Collections of notes receivable from affiliates 17,707 44,456
---------- ----------
Net cash used in
investing activities (291,395) (1,075,048)
Cash flows from financing activities:
Payments on long-term borrowings (9,729,109) (655,798)
Proceeds from long-term borrowings 10,700,000 1,743,180
Proceeds from insurance settlement 1,039,747 -
Payments on capital lease obligations (17,748) (7,130)
Distributions to Partners (398,493) (877,821)
Proceeds from issuance of Class B and C units - 53,250
General Partners' distributions
from Operating Partnerships (4,025) (8,867)
Other, net 37,766 -
---------- ----------
Net cash provided by
financing activities 1,628,138 246,814
---------- ----------
Net increase in
cash and cash equivalents 1,175,838 78,390
Cash and cash equivalents at beginning of period 509,398 178,826
---------- ----------
Cash and cash equivalents at end of period $ 1,685,236 $ 257,216
========== ==========
See accompanying notes.
AMERICAN RESTAURANT PARTNERS, L.P.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
1. General
-------
The accompanying consolidated financial statements include the
accounts of American Restaurant Partners, L.P. and its majority
owned subsidiaries, American Pizza Partners, L.P. and APP Concepts,
LLC, hereinafter collectively referred to as the Partnership, and
have been prepared without audit. The Balance Sheet at December 30,
1997 has been derived from the Partnership's audited financial
statements. In the opinion of management, all adjustments of a
normal and recurring nature which are necessary for a fair
presentation of such financial statements have been included. These
statements should be read in conjunction with the financial
statements and notes contained in the Partnership's Annual Report
filed on Form 10-K for the fiscal year ended December 30, 1997.
The results of operations for interim periods are not necessarily
indicative of the results for the full year. The Partnership
historically has realized approximately 40% of its operating
profits in periods six through nine (18 weeks).
2. Distribution to Partners
------------------------
On July 1, 1998, the Partnership declared a distribution of $0.10
per unit to all unitholders of record as of July 13, 1998, payable
on July 31, 1998. The distribution is not reflected in the June
30, 1998 consolidated condensed financial statements.
3. Investment in Affiliate
-----------------------
On March 13, 1996, the Partnership purchased a 45% interest in a
newly formed limited partnership, Oklahoma Magic, L.P. ("Magic"),
for $3.0 million in cash. Magic currently owns and operates twenty-
seven Pizza Hut restaurants in Oklahoma. The Partnership accounts
for its investment in Magic using the equity method of accounting.
Unaudited condensed consolidated financial statements for Magic are
as follows:
June 30, December 30,
1998 1997
---------- -----------
Balance sheet:
Current assets $ 639,792 $ 543,764
Noncurrent assets 9,788,848 9,946,529
---------- ----------
$10,428,640 $10,490,293
========== ==========
Current liabilities $ 6,640,675 $ 6,608,680
Noncurrent liabilities 2,198,615 2,260,317
Partners' equity 1,589,350 1,621,296
---------- ----------
$10,428,640 $10,490,293
========== ==========
Six Periods Ended
June 30, July 1,
1998 1997
----------- ------------
Statement of Operations:
Revenues $ 7,705,222 $ 7,832,363
Cost of sales 1,962,228 2,136,285
Operating expenses 5,449,372 5,790,417
---------- ----------
Income (loss) from operations 293,622 (94,339)
Other expense (principally interest) 325,568 283,446
---------- ----------
Net loss $ (31,946) $ (377,785)
========== ==========
In November 1996 Magic notified Hospitality Group of Oklahoma, Inc.
(HGO), the former owners of the Oklahoma restaurants, that it was
seeking to terminate HGO's interest in Magic pursuant to the terms
of the Partnership Agreement for alleged violations of the Pizza
Hut Franchise Agreement and the alleged occurrence of an Adverse
Terminating Event as defined in the Partnership Agreement. Magic
alleges that HGO contacted and offered employment to a significant
number of the management employees of Magic. Magic has also
alleged that HGO made certain misrepresentations at the formation
of Magic. HGO has denied that such franchise violations have
occurred and that it made any misrepresentations at the formation
of Magic. HGO has asserted that it was fraudulently induced to
enter into the Magic Partnership Agreement by Restaurant Management
Company of Wichita, Inc. and was further damaged by alleged
mismanagement of the operations.
The matter was settled on August 11, 1998 with Magic paying HGO a
Section 736(a) guaranteed payment for the time period between
November 11, 1996 through the settlement date. In addition, Magic
purchased HGO's interest in Magic for $205,000 consisting of cash
of $105,000 and a $100,000 note at 8% interest for five years,
payable quarterly. Magic also paid the two stockholders of HGO the
sum of $240,000 for a noncompete agreement prohibiting them from
engaging in the pizza business for the next 60 months in any market
that Magic operated in as of May 11, 1998. Upon completion of the
settlement, the interest of the Partnership in Magic increased from
45% to 60% which will require Magic to be consolidated with the
Partnership's consolidated financial statements in the future.
4. Recently Issued Accounting Standards
------------------------------------
As of December 31, 1997, the Partnership adopted Financial
Accounting Standards (FAS) Number 130, "Reporting Comprehensive
Income". FAS 130 establishes new rules for the reporting and
display of comprehensive income and its components; however, the
adoption of this Statement had no impact on the Partnership's net
income or partners' equity. In addition, the Partnership has no
components of other comprehensive income in any period presented.
5. Life Insurance Settlement
-------------------------
During the quarter ended June 30, 1998 the Partnership collected on
a life insurance policy purchased in 1993 on one of its original
investors. This investor owned approximately 438,600 Class B and C
units. The policy was purchased with the intent of providing the
Partnership a means of repurchasing his units upon his death if his
heirs so desired. The investor died in May of this year. The
Partnership is currently in negotiations with the heirs to purchase
the units.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
CONSOLIDATED FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
- ---------------------
As of June 30, 1998, the Partnership operated 53 traditional Pizza
Hut red roof restaurants, five delivery/carryout units and three
dualbrand locations.
Three Periods Ended June 30, 1998 Compared to Three Periods
- -----------------------------------------------------------
Ended July 1, 1997
- ------------------
NET SALES. Net sales for the three periods ended June 30, 1998
decreased $542,000 from $10,004,000 to $9,461,000, a 5.4% decrease
from the same three periods of 1997. This decrease was almost
entirely attributable to restaurants closed in 1997 as comparable
restaurant sales decreased only 0.2%.
INCOME FROM OPERATIONS. Income from operations increased $442,000
from $413,000 to $855,000, a 107.2% increase over the three periods
ended July 1, 1997. As a percentage of net sales, income from
operations increased from 4.1% for the three periods ended July 1,
1997 to 9.0% for the three periods ended June 30, 1998. Cost of
sales decreased as a percentage of net sales from 27.5% in 1997 to
24.6% in 1998. Labor and benefits expense remained at 28% of net
sales for both years despite the minimum wage increase that took
effect September 1, 1997. These margin improvements are the result
of continued diligent follow-up and focus on efficiencies in the
restaurants. Advertising decreased as a percentage of net sales
from 6.8% in 1997 to 6.6% in 1998. Operating expenses decreased
from 19.6% of net sales in 1997 to 18.0% of net sales in 1998
primarily attributable to the reduction of fixed costs through
restaurant closings and consolidations during the last half of
1997. General and administrative expenses increased from 8.2% of
net sales in 1997 to 8.5% of net sales in 1998. Depreciation and
amortization expense increased from 4.9% of net sales in 1997 to
5.4% of net sales in 1998 due to the amortization of financing
costs. Equity in earnings of affiliate amounted to income of 0.1%
of net sales in 1998 compared to a loss amounting to 1.0% of net
sales in 1997.
NET EARNINGS. Net earnings increased $1,181,000 to net income of
$1,062,000 for the quarter ended June 30, 1998 compared to a net
loss of $119,000 for the quarter ended July 1, 1997. A gain on life
insurance settlement of $876,000 is included in the 1998 net
income. The remaining increase in net earnings is attributable to
the increase in income from operations noted above net of a
$123,000 increase in interest expense.
Six Periods Ended June 30, 1998 Compared to Six Periods
- -------------------------------------------------------
Ended July 1, 1997
- ------------------
NET SALES. Net sales for the six periods ended June 30, 1998
decreased $935,000 from $19,623,000 to $18,688,000, a 4.8% decrease
from the first six periods of 1997. This decrease was entirely
attributable to restaurants closed in 1997 as comparable restaurant
sales increased 0.1%.
INCOME FROM OPERATIONS. Income from operations increased $632,000
from $840,000 to $1,472,000, a 75.2% increase over the first six
periods of 1997. As a percentage of net sales, income from
operations increased from 4.3% for the six periods ended July 1,
1997 to 7.9% for the quarter ended June 30, 1998. Cost of sales
decreased as a percentage of net sales from 27.0% for the first six
periods of 1997 to 25.5% for the first six periods of 1998. Labor
and benefits expense decreased as a percentage of net sales from
28.5% in 1997 to 28.2% in 1998 despite the minimum wage increase
that took effect September 1, 1997. These margin improvements are
the result of continued diligent follow-up and focus on
efficiencies in the restaurants. Advertising increased as a
percentage of net sales from 6.3% in 1997 to 6.6% in 1998.
Operating expenses decreased from 19.5% of net sales in 1997 to
18.3% of net sales in 1998 primarily attributable to the reduction
of fixed costs through restaurant closings and consolidations
during the last half of 1997. General and administrative expenses
decreased from 8.5% of net sales in 1997 to 8.3% of net sales in
1998. Depreciation and amortization expense increased from 5.0% of
net sales in 1997 to 5.1% of net sales in 1998. This increase was
primarily due to the amortization of financing costs which was
partially offset by a decrease in depreciation due to restaurant
closings and consolidations during the fourth quarter of 1997.
Equity in earnings of affiliate amounted to 0.1% of net sales in
1998 compared to 0.9% of net sales in 1997.
NET EARNINGS. Net earnings increased $1,374,000 to net income of
$1,129,000 for the six periods ended June 30, 1998 compared to a
net loss of $245,000 for the six periods ended July 1, 1997. A
gain on life insurance settlement of $876,000 is included in the
1998 net income. The remaining increase is attributable to the
increase in income from operations noted above net of a $113,000
increase in interest expense.
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
At June 30, 1998 the Partnership had a working capital deficiency
of $2,470,000 compared to a working capital deficiency of
$15,712,000 at December 30, 1997. The decrease in working capital
deficiency is primarily a result of a $10,894,000 decrease in
current portion of long-term debt. At December 30, 1997, the
entire amount of outstanding notes payable to Heller Financial
Corporation and FMAC were classified as a current liability because
the Partnership was in default of the fixed charge ratio covenant.
There have been no defaults in making scheduled payments of either
principal or interest. On April 20, 1998, the Partnership
refinanced with new promissory notes to FMAC the notes with Heller
Financial Corporation, $4.2 million of notes with Intrust Bank, and
$3.0 million of notes with FMAC over 15 years at an interest rate
of 8.81% bringing the Partnership into compliance with the fixed
charge ratio. The write-off of unamortized loan cost related to
this refinancing was not material. The remaining decrease in
working capital deficiency is a result of an increase in cash and a
decrease in accounts payable. The Partnership routinely operates
with a negative working capital position which is common in the
restaurant industry and which results from the cash sales nature of
the restaurant business and payment terms with vendors.
The Partnership generates its principal source of funds from net
cash provided by operating activities. Management believes that net
cash provided by operating activities and various other sources of
income will provide sufficient funds to meet planned capital
expenditures for recurring replacement of equipment in existing
restaurants and to service debt obligations.
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES. For the six
periods ended June 30, 1998, net cash used in operating activities
amounted to $161,000 compared to net cash provided by operating
activities of $907,000 for the six periods ended July 1, 1997.
This decrease is primarily the result of a decrease in accounts
payable of $1,512,000.
INVESTING ACTIVITIES. Property and equipment expenditures
represent the largest investing activity by the Partnership.
Capital expenditures for the six periods ended June 30, 1998 were
$326,000 for replacement of equipment in existing restaurants.
FINANCING ACTIVITIES. Cash distributions declared during the six
periods ended June 30, 1998 were $398,000 amounting to $0.10 per
unit as compared to $878,000, or $0.22 per unit, during the first
six periods of 1997. The Partnership's distribution objective,
generally, is to distribute all operating revenues less operating
expenses (excluding noncash items such as depreciation and
amortization), capital expenditures for existing restaurants,
interest and principal payments on Partnership debt, and such cash
reserves as the managing General Partner may deem appropriate.
During the six periods ended June 30, 1998, the Partnership's
proceeds from borrowings amounted to $10,700,000 of which
$9,633,000 was obtained to refinance existing debt and $1,067,000
was used primarily to replenish operating capital. The Partnership
plans to open one new restaurant during 1998. Management
anticipates spending $211,000 for recurring replacement of
equipment in existing restaurants during the remainder of the year.
These expenditures will be partially financed from net cash
provided by operating activities and management believes that the
Partnership has the ability to obtain financing as needed. The
actual level of capital expenditures may be higher in the event of
unforeseen breakdowns of equipment or lower in the event of
inadequate net cash flow from operating activities.
The increase in operating income for the second quarter was
primarily due to the continuing improvement in restaurant margins,
and an increase in the Partnership's share of earnings of an
affiliate which owns 27 Pizza Hut restaurants in the Oklahoma City
area. Magic, the Oklahoma affiliate of which the Partnership owns
45%, had net earnings of $24,000 for the second quarter of 1998
which was an increase of $239,000 from the $215,000 loss it
sustained in the second quarter of last year. Magic's comparable
restaurant sales increased 15.0% from the second quarter of 1997.
In addition, Magic's restaurant margins have also improved from a
year ago. A significant part of the improvement in restaurant
margins for the Partnership and its affiliate was in cost of sales.
Cheese costs have dramatically increased in July and will have a
negative impact on margins in the third quarter of 1998. Based on
projections from the Partnership's major supplier, cheese costs
should decline in the fourth quarter of 1998.
OTHER MATTERS
- -------------
In November 1996 Magic notified Hospitality Group of Oklahoma, Inc.
(HGO), the former owners of the Oklahoma restaurants, that it was
seeking to terminate HGO's interest in Magic pursuant to the terms
of the Partnership Agreement for alleged violations of the Pizza
Hut Franchise Agreement and the alleged occurrence of an Adverse
Terminating Event as defined in the Partnership Agreement. Magic
alleges that HGO contacted and offered employment to a significant
number of the management employees of Magic. Magic has also
alleged that HGO made certain misrepresentations at the formation
of Magic. HGO has denied that such franchise violations have
occurred and that it made any misrepresentations at the formation
of Magic. HGO has asserted that it was fraudulently induced to
enter into the Magic Partnership Agreement by Restaurant Management
Company of Wichita, Inc. and was further damaged by alleged
mismanagement of the operations.
The matter was settled on August 11, 1998 with Magic paying HGO a
Section 736(a) guaranteed payment for the time period between
November 11, 1996 through the settlement date. In addition, Magic
purchased HGO's interest in Magic for $205,000 consisting of cash
of $105,000 and a $100,000 note at 8% interest for five years,
payable quarterly. Magic also paid the two stockholders of HGO the
sum of $240,000 for a noncompete agreement prohibiting them from
engaging in the pizza business for the next 60 months in any market
that Magic operated in as of May 11, 1998. Upon completion of the
settlement, the interest of the Partnership in Magic increased from
45% to 60% which will require Magic to be consolidated with the
Partnership's consolidated financial statements in the future.
The Partnership delisted from the American Stock Exchange effective
November 13, 1997 and limited trading of its units. As a result,
the Partnership will continue to be taxed as a partnership rather
than being taxed as a corporation. The Partnership does offer a
Qualified Matching Service, whereby the Partnership will match
persons desiring to buy units with persons desiring to sell units.
The Partnership does not expect year 2000 issues to have any
material effect on its costs or to cause any significant
disruptions to its operations. The Partnership uses external
agents on all critical applications and systems. The external
agents have assured the Partnership that they expect to be fully
year 2000 compliant before the year 2000 issues will impact the
Partnership.
This report contains certain forward-looking statements within the
meaning of Section 27A of the Securities Act, and Section 21E of
the Exchange Act which are intended to be covered by the safe
harbors created thereby. Although the Partnership believes that
the assumptions underlying the forward-looking statements contained
herein are reasonable, any of the assumptions could be inaccurate,
and therefore, there can be no assurance that the forward-looking
statements included in this report will prove to be accurate.
Factors that could cause actual results to differ from the results
discussed in the forward-looking statements include, but are not
limited to, consumer demand and market acceptance risk, the effect
of economic conditions, including interest rate fluctuations, the
impact of competing restaurants and concepts, the cost of
commodities and other food products, labor shortages and costs and
other risks detailed in the Partnership's Securities and Exchange
Commission filings.
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
(a) Exhibits
None
(b) Reports on Form 8-K
During the fiscal period covered by this Form 10-Q, no
reports on Form 8-K were filed.
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.
AMERICAN RESTAURANT PARTNERS, L.P.
(Registrant)
By: RMC AMERICAN MANAGEMENT, INC.
Managing General Partner
Date: 8/14/98 By: /s/Hal W. McCoy
------- --------------------
Hal W. McCoy
President and Chief Executive Officer
Date: 8/14/98 By: /s/Terry Freund
------- -------------------
Terry Freund
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
consolidated condensed financial statements of American Restaurant Partners,
L.P. at June 30, 1998 and is qualified in its entirety by reference to such
financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-29-1998
<PERIOD-END> JUN-30-1998
<CASH> 1685236
<SECURITIES> 112501
<RECEIVABLES> 656404
<ALLOWANCES> 0
<INVENTORY> 263166
<CURRENT-ASSETS> 2478025
<PP&E> 29511617
<DEPRECIATION> 13222322
<TOTAL-ASSETS> 22648167
<CURRENT-LIABILITIES> 4948191
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 3365839
<TOTAL-LIABILITY-AND-EQUITY> 22648167
<SALES> 18687975
<TOTAL-REVENUES> 18687975
<CGS> 4756696
<TOTAL-COSTS> 17215979
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1213385
<INCOME-PRETAX> 1128508
<INCOME-TAX> 0
<INCOME-CONTINUING> 1128508
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1128508
<EPS-PRIMARY> .28
<EPS-DILUTED> .28
</TABLE>
