<PAGE> 1
EXHIBITI 99.1
NEWS BULLETIN [SIZZLER LOGO]
FROM:
RE: SIZZLER INTERNATIONAL, INC.
6101 W. Centinela Ave., Suite 200
THE FINANCIAL RELATIONS BOARD Culver City, CA 90230
BSMG WORLDWIDE (310) 568-0135
NYSE: SZ
--------------------------------------------------------------------------------
AT THE COMPANY: AT THE FINANCIAL RELATIONS BOARD:
Steven Selcer Kim Forster Haris Tajyar Moira Conlon
Vice President Vice President, General Information Investor Contact
and CFO Planning (310) 442-0599 (310) 442-0599
(310) 568-0135 (310) 568-0135
--------------------------------------------------------------------------------
FOR IMMEDIATE RELEASE
AUGUST 23, 2000
SIZZLER INTERNATIONAL REPORTS INCREASE IN FIRST
QUARTER EARNINGS AND SAME-STORE SALES
----------------------
HIGHLIGHTS:
o 15th consecutive quarter of increased earnings from continuing operations
o First quarter net income increases 14% to $2.9 million
o Domestic remodels generating over 12% same-store sales growth
o Australian KFC same-store sales increase over 6%
CULVER CITY, CA--AUGUST 23, 2000--SIZZLER INTERNATIONAL, INC. (NYSE: SZ) today
announced solid gains in earnings and same-store sales for it first fiscal
quarter ended July 23, 2000.
For the first quarter, the company reported revenues of $54.7 million compared
with $57.0 million in the first quarter a year ago. The slight decline in total
revenues is primarily due to Sizzler operating 6 fewer units this year, as well
as an unfavorable exchange rate, which was nearly 11% lower than the prior year.
Excluding the effect of the weakening in the Australian dollar exchange rate,
revenues would have been $58.2 million, an increase of 2.1%. In addition,
despite the weak Australian dollar, Sizzler reported a 14% increase in net
income to $2.9 million, or $0.10 per diluted share, over last year's first
quarter income of $2.5 million, or $0.09 per diluted share.
- more -
Financial Relations Board, Inc. serves as financial relations counsel to this
company is acting on the company's behalf in issuing this bulletin and receiving
compensation therefor. The information contained herein is furnished for
information purposes only and is not to be construed as an offer to buy or sell
securities
<PAGE> 2
Sizzler International, Inc.
Page 2 of 6
POSITIVE TRENDS IN SAME STORE SALES GROWTH
For the quarter, same store sales increased 1.9% across company owned U.S.
Sizzler locations; 0.6% in the Australian Sizzler locations; and 6.1% from
Australian KFC units.
"Today's results reflect the 15th consecutive quarter of net income growth,
excluding the one time charges in the third quarter of fiscal 2000," said
Charles Boppell, President and CEO of Sizzler International. "This strong and
continuing trend is a direct reflection of our management team's ability to
continue to strengthen and expand our operations. Looking ahead, we expect to
maintain and possibly accelerate this positive trend as we continue to improve
our restaurants' operations around the globe," continued Mr. Boppell.
"Our domestic repositioning program continues to generate solid sales growth and
increased customer counts. Our average remodeled and re-launched store produced
over 12% same-store sales growth for the quarter. This is a clear growth
opportunity for Sizzler USA as we look to completing the repositioning of the
remaining domestic company-owned stores by year-end," said Thomas E. Metzger,
FMP, President of Sizzler USA. As of the end of the quarter, 24 units had been
completely repositioned, with the completion of construction, retraining of
restaurant employees and a local marketing campaign. A further 25 units are
currently in various stages of the re-image process.
REPURCHASING PROGRAM
Sizzler has completed the repurchase of approximately 847,000 of the 1.5 million
shares of common stock that has been authorized to repurchase by its Board of
Directors. Subject to applicable laws and other factors, the company expects to
complete its stock repurchase program as soon as practicable.
INVESTOR CONFERENCE CALL
Sizzler will be holding an investor conference call to discuss the Company's
financial and operational results today at 11:00 am EDT. Investors will have the
opportunity to listen to the conference call over the Internet through
StreetEvents at www.streetevents.com. To listen to the live call, please go to
the web site, enter the Individual Investor Center, and enter the Sizzler ticker
symbol, SZ. Please go to the site at least 15 minutes early to register,
download, and install any necessary audio software. In order to listen to the
call investors must have RealPlayer 7 or higher installed on their computer.
Please visit www.real.com to download the appropriate software. For those who
cannot listen to the live broadcast, a replay will be available shortly after
the call.
ABOUT SIZZLER
Sizzler International, Inc. operates, franchises or joint ventures 348 Sizzler
restaurants worldwide, in addition to the 102 KFC restaurants in Queensland,
Australia.
- more -
Financial Relations Board, Inc. serves as financial relations counsel to this
company is acting on the company's behalf in issuing this bulletin and receiving
compensation therefor. The information contained herein is furnished for
information purposes only and is not to be construed as an offer to buy or sell
securities
<PAGE> 3
Sizzler International, Inc.
Page 3 of 6
To the extent that certain statements contained in this document may be deemed
under federal securities laws to be forward-looking statements, Sizzler intends
that they be subject to the safe-harbor applicable to forward-looking statements
under such laws. Such statements may include, but are not limited to, statements
regarding (i) the continued positive impact of the remodel program on sales and
customer counts; (ii) the completion of the remodeling of domestic company owned
stores as scheduled; (iii) the continuation of the company's stock repurchase
program; and (iv) the continued success of the company's four pronged growth
strategy and the continuation and possible acceleration of net income growth
trends across the globe. Sizzler cautions that these statements are qualified by
important factors that could cause actual results to differ from those reflected
by the forward-looking statements contained herein. Such factors include, but
are not limited to, (a) the failure of the company's newly remodeled stores
and/or new food offerings to continue to appeal to customers; (b) the failure to
complete the remodel program as scheduled; (c) general economic, regulatory, and
other factors pertaining to share repurchase; (d) the satisfaction of all
conditions to consummation of the Oscar's acquisition, including but not limited
to any required government and other approvals; (e) the company's ability to
operate the Oscar's division profitably and successfully open new units; (f)
possible negative impact on the company's Australia operations as a result of
the implementation of the new goods and services tax in Australia; (g) the
possible negative impact of exchange rate fluctuations; and (h) other risks as
detailed from time to time in Sizzler's SEC reports, including Quarterly Reports
on Form 10Q, Current Reports on Form 8-K, and Annual Reports on Form 10-K.
For more information on Sizzler International, Inc. via facsimile at no cost,
simply call 1-800-PRO-INFO and dial client code "SZ."
- more -
Financial Relations Board, Inc. serves as financial relations counsel to this
company is acting on the company's behalf in issuing this bulletin and receiving
compensation therefor. The information contained herein is furnished for
information purposes only and is not to be construed as an offer to buy or sell
securities
<PAGE> 4
Sizzler International, Inc.
Page 4 of 6
SIZZLER INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE TWELVE WEEKS ENDED JULY 23, 2000 AND JULY 25, 1999
(in thousands, except share data)
<TABLE>
<CAPTION>
2000 1999
(Unaudited) (Unaudited)
--------------------------------------------------------------------------------
<S> <C> <C>
REVENUES
Restaurants $ 52,312 $ 54,841
Franchise Operations 2,346 2,164
--------------------------------------------------------------------------------
Total Revenues 54,658 57,005
--------------------------------------------------------------------------------
COSTS AND EXPENSES
Cost of sales 18,943 20,207
Labor and related expenses 14,234 14,845
Other operating expenses 11,930 11,551
Depreciation and amortization 1,805 2,078
General and administrative expenses 4,312 4,658
--------------------------------------------------------------------------------
Total operating costs 51,224 53,339
--------------------------------------------------------------------------------
Interest expense 747 872
Investment income (559) (182)
--------------------------------------------------------------------------------
Total Costs and expenses 51,412 54,029
--------------------------------------------------------------------------------
INCOME BEFORE INCOME TAXES 3,246 2,976
--------------------------------------------------------------------------------
Provision for income taxes 381 470
NET INCOME $ 2,865 $ 2,506
================================================================================
Basic and diluted earnings per share $ 0.10 $ 0.09
================================================================================
</TABLE>
- more -
<PAGE> 5
Sizzler International, Inc.
Page 5 of 6
SIZZLER INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
<TABLE>
<CAPTION>
July 23 April 30
ASSETS 2000 2000
----------------------------------------------------------------------------------------------------------------
(Unaudited) (Audited)
<S> <C> <C>
Cash Assets:
Cash and cash equivalents $ 36,905 $ 38,789
Receivables, net reserves of $786 at
July 23, 2000 and $847 at April 30, 2000 4,811 4,173
Inventories 4,124 4,333
Current tax asset 2,544 2,544
Prepaid expenses and other current assets 888 1,132
----------------------------------------------------------------------------------------------------------------
Total current assets 49,272 50,971
----------------------------------------------------------------------------------------------------------------
Property and equipment, net 52,177 46,316
Property held for sale, net 6,781 8,931
Long-term notes receivable, net reserves of $0
at July 23, 2000, and $73 at April 30, 2000 1,830 1,224
Deferred income taxes 3,490 3,405
Intangible assets, net of accumulated amortization $871 at July 23,
2000, and $889 at April 30, 2000 1,869 1,876
Other assets 3,644 3,157
----------------------------------------------------------------------------------------------------------------
Total Assets $119,063 $115,880
================================================================================================================
</TABLE>
- more -
<PAGE> 6
Sizzler International, Inc.
Page 6 of 6
SIZZLER INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except for share data)
<TABLE>
<CAPTION>
July 23 April 30
LIABILITIES AND STOCKHOLDERS' INVESTMENT 2000 2000
-------------------------------------------------------------------------------------------------------------------
(Unaudited) (Audited)
<S> <C> <C>
Current Liabilities:
Current portion of long-term debt $ 5,147 $ 5,206
Accounts payable 9,746 8,196
Other current liabilities 10,471 10,209
Income taxes payable 2,820 2,530
-------------------------------------------------------------------------------------------------------------------
Total current liabilities 28,184 26,141
-------------------------------------------------------------------------------------------------------------------
Long-term debt, net of current portion 20,126 21,198
Deferred gain on sale and lease back 8,074 8,269
Pension liability 9,563 9,637
Stockholders' Investment:
Capital stock-
Preferred, authorized 1,000,000 shares, $5 par value; no shares
issued -- --
Common, authorized 50,000,000 shares, $0.01 par value;
outstanding 27,919,886 shares at July 23, 2000 and 28,797,828
shares at April 30, 2000 288 288
Additional paid-in capital 278,421 278,408
Accumulated deficit (216,904) (219,769)
Treasury stock, 846,700 shares at cost at July 23, 2000 and 706,700
shares at April 30, 2000 (2,303) (1,948)
Accumulated other comprehensive income (6,386) (6,344)
-------------------------------------------------------------------------------------------------------------------
Total stockholders' investment 53,116 50,635
-------------------------------------------------------------------------------------------------------------------
Total liabilities and stockholders' investment $ 119,063 $ 115,880
===================================================================================================================
</TABLE>
