UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report: August 18, 1999
THE QUIZNO'S CORPORATION
(Exact name of registrant as specified in its charter)
Colorado 000-23174 84 -1169286
(State or other jurisdiction (Commission File (IRS Employer
of incorporation) Number) Identification No.)
1415 Larimer Street, Denver, Colorado 80202
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (303) 291-0999
Former address: 1099 18th Street, Suite 2850, Denver, Colorado 80202 (Former
name or former address, if changes since last report)
Item 5. Other Events. A press release regarding Quizno's posting 2nd quarter
profit.
Item 7. Exhibits.
EXHIBIT NO. DESCRIPTION
99.1 Press Release
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 hereunto duly authorized.
THE QUIZNO'S CORPORATION
Date:August 18, 1999
By: /s/ John L. Gallivan
--------------------
John L. Gallivan, Chief Financial Officer
For Release: 8 a.m. Eastern Time, Tuesday, August 17, 1999
QUIZNO'S(R) Posts 2nd Quarter Profit
DENVER, Colo. - The Quizno's Corporation (Nasdaq: QUIZ) reported a net
income applicable to common shareholders of $441,573, or $0.13 per diluted
share, in the 2nd Quarter ended June 30, 1999. This eighth straight quarterly
profit compares to the same period last year when the Company reported $193,452,
or $0.08 per diluted share.
Total revenue for the quarter was $6.6 million, an increase of 41% over
the $4.7 million in the 2nd Quarter of 1998. Continuing fees nearly doubled to
$2.8 million over $1.5 million in the same period last year. Revenue from
Company stores increased to $2.1 million from $1.5 million in the same quarter
last year.
System wide sales grew to $40.2 million in 2nd Quarter over $23.2 million
in 2nd Quarter, 1998. Same store sales, based on 229 stores that have been open
since the beginning of 1998, were up 3.4 percent over the same period last year.
QUIZNO'S, which franchises and owns and operates QUIZNO'S Classic Subs
restaurants, opened 68 new restaurants, including 16 in Canada, in the 2nd
Quarter, bringing the Company's total restaurants open at the end of June to
568. Another 458 franchises were sold, but not yet in operation, at the end of
the quarter.
A total of 126 new franchises were sold in the 2nd Quarter, including 14
international franchises, bringing in $1.8 million in fees, compared to $1.2
million in new franchise fees for 2nd Quarter of 1998. The 2nd Quarter Area
Director and Master Franchise fees were down slightly to $442,444 over the
$479,985 collected in the 2nd Quarter 1998. Parts of Central America were
included in 2nd Quarter territories sold.
Certain information in this release are forward-looking statements (as
defined in the Private Securities Litigation Reform Act of 1995) that involve
risks and uncertainties that might adversely affect the Company's operating
results in the future in a material way or that could cause actual results to
differ materially from those set forth in the forward looking statement. Such
risks and uncertainties include, without limitation, the effect of national and
regional economic and market conditions in the United States and in other
countries in which franchises are sold, costs of labor and employee benefits,
costs of marketing and of food and non-food items used in the operation of the
restaurants, intensity of competition for locations and franchisees, as well as
customers, perception of food safety, legal claims, and the availability of
financing for the Company and its franchisees. Many of these risks are beyond
the control of the Company. Such risks are detailed from time to time in the
Company's reports filed with the SEC, including the report on Form 10-KSB for
the year ended December 31, 1998.
For More Information Contact:
Sue Hoover, Executive Vice President
The Quizno's Corporation
303-291-0999, Ext. 3374
