<PAGE> 1
UNITED STATES 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 29, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ____________ to _____________
American Restaurant Group Holdings, Inc.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 33-74012 33-0592148
(State or other jurisdiction of (Commission File (I.R.S. employer
incorporation or organization) File Number) identification no.)
450 Newport Center Drive
Newport Beach, CA 92660
(714) 721-8000
- --------------------------------------------------------------------------------
(Address and telephone number of principal executive offices)
- --------------------------------------------------------------------------------
Former name, former address and former fiscal year
if changed since last report.
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
----- -----
The number of outstanding shares of the Company's Common Stock (one cent par
value) as of November 3, 1997 was 504,505.
<PAGE> 2
AMERICAN RESTAURANT GROUP HOLDINGS, INC.
INDEX
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS:
Consolidated Condensed Balance Sheets............................ 1
Consolidated Statements of Income................................ 3
Consolidated Statements of Cash Flows............................ 4
Notes to Consolidated Condensed Financial Statements............. 5
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS.................... 6
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K................................. 9
</TABLE>
i
<PAGE> 3
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS:
AMERICAN RESTAURANT GROUP HOLDINGS, INC. AND SUBSIDIARIES
---------------------------------------------------------
CONSOLIDATED CONDENSED BALANCE SHEETS
-------------------------------------
DECEMBER 30, 1996 AND SEPTEMBER 29, 1997
----------------------------------------
<TABLE>
<CAPTION>
December 30, September 29,
1996 1997
------------ -------------
(unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash $ 7,493,000 $ 6,189,000
Accounts receivable, net of reserve of
$1,041,000 and $1,076,000 at December 30, 1996
and September 29, 1997, respectively 7,465,000 6,165,000
Inventories 6,818,000 5,632,000
Prepaid expenses 4,485,000 2,906,000
------------ ------------
Total current assets 26,261,000 20,892,000
------------ ------------
PROPERTY AND EQUIPMENT:
Land and land improvements 6,158,000 5,655,000
Buildings and leasehold improvements 110,071,000 112,782,000
Fixtures and equipment 84,162,000 87,326,000
Property held under capital leases 12,375,000 12,375,000
Construction in progress 6,487,000 1,849,000
------------ ------------
219,253,000 219,987,000
Less-- Accumulated depreciation 118,084,000 124,758,000
------------ ------------
101,169,000 95,229,000
------------ ------------
OTHER ASSETS-- NET 49,775,000 46,651,000
------------ ------------
Total Assets $177,205,000 $162,772,000
============ ============
</TABLE>
The accompanying notes are an integral part of these
consolidated condensed statements.
(consolidated condensed balance sheets continued on the following page)
1
<PAGE> 4
<TABLE>
<CAPTION>
December 30, September 29,
1996 1997
------------- -------------
(unaudited)
<S> <C> <C>
LIABILITIES AND COMMON STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 33,394,000 $ 32,967,000
Accrued liabilities 14,435,000 14,040,000
Accrued insurance 15,848,000 11,810,000
Accrued interest 921,000 6,231,000
Accrued payroll costs 11,059,000 10,069,000
Current portion of obligations
under capital leases 902,000 926,000
Current portion of long-term debt 41,324,000 171,655,000
------------- -------------
Total current liabilities 117,883,000 247,698,000
------------- -------------
LONG-TERM LIABILITIES, net of current portion:
Obligations under capital leases 8,443,000 7,746,000
Long-term debt 207,897,000 86,242,000
------------- -------------
Total long-term liabilities 216,340,000 93,988,000
------------- -------------
DEFERRED GAIN 5,806,000 5,436,000
------------- -------------
COMMITMENTS AND CONTINGENCIES
PREFERRED STOCK, $0.01 par value; 10,000 shares
authorized, no shares issued or
outstanding at December 30, 1996 or
September 29, 1997 -- --
COMMON STOCKHOLDERS' EQUITY:
Common stock, $0.01 par value; 1,000,000
shares authorized; 504,505 shares issued
and outstanding at December 30, 1996 and
September 29, 1997 2,000 2,000
Treasury stock (50,000) (50,000)
Paid-in capital 17,539,000 17,539,000
Accumulated deficit (180,315,000) (201,841,000)
------------- -------------
Total common stockholders' deficit (162,824,000) (184,350,000)
------------- -------------
Total liabilities and common
stockholders' equity $ 177,205,000 $ 162,772,000
============= =============
</TABLE>
The accompanying notes are an integral part of these
consolidated condensed statements.
2
<PAGE> 5
AMERICAN RESTAURANT GROUP HOLDINGS, INC. AND SUBSIDIARIES
---------------------------------------------------------
CONSOLIDATED STATEMENTS OF INCOME
---------------------------------
FOR THE THIRTEEN WEEKS ENDED SEPTEMBER 23, 1996 AND SEPTEMBER 29, 1997
----------------------------------------------------------------------
AND THE THIRTY-NINE WEEKS ENDED SEPTEMBER 23, 1996 AND SEPTEMBER 29, 1997
-------------------------------------------------------------------------
(UNAUDITED)
-----------
<TABLE>
<CAPTION>
Thirteen Weeks Ended Thirty-Nine Weeks Ended
----------------------------------- -----------------------------------
September 23, September 29, September 23, September 29,
1996 1997 1996 1997
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
REVENUES $107,319,000 $106,253,000 $332,988,000 $333,198,000
RESTAURANT COSTS:
Food and beverage 33,802,000 33,448,000 105,473,000 105,406,000
Payroll 33,428,000 33,440,000 100,936,000 101,038,000
Direct operating 28,756,000 27,582,000 83,922,000 84,883,000
Depreciation and amortization 5,179,000 5,100,000 15,486,000 15,182,000
GENERAL AND ADMINISTRATIVE EXPENSES 6,755,000 5,616,000 20,021,000 22,110,000
------------ ------------ ------------ ------------
Operating profit (loss) (601,000) 1,067,000 7,150,000 4,579,000
INTEREST EXPENSE, net 9,645,000 8,812,000 28,433,000 26,045,000
------------ ------------ ------------ ------------
Loss before provision
for income taxes and
extraordinary loss (10,246,000) (7,745,000) (21,283,000) (21,466,000)
PROVISION FOR INCOME TAXES 15,000 19,000 75,000 60,000
------------ ------------ ------------ ------------
Loss before extraordinary loss (10,261,000) (7,764,000) (21,358,000) (21,526,000)
Extraordinary loss on
extinguishment of debt 1,095,000 -- 1,095,000 --
------------ ------------ ------------ ------------
Net loss $(11,356,000) $ (7,764,000) $(22,453,000) $(21,526,000)
============ ============ ============ ============
</TABLE>
The accompanying notes are an integral part of these
consolidated condensed statements.
3
<PAGE> 6
AMERICAN RESTAURANT GROUP HOLDINGS, INC. AND SUBSIDIARIES
---------------------------------------------------------
CONSOLIDATED STATEMENTS OF CASH FLOWS
-------------------------------------
FOR THE THIRTY-NINE WEEKS ENDED SEPTEMBER 23, 1996 AND SEPTEMBER 29, 1997
-------------------------------------------------------------------------
(UNAUDITED)
-----------
<TABLE>
<CAPTION>
September 23, September 29,
1996 1997
------------- -------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers $ 332,995,000 $ 334,295,000
Cash paid to suppliers and employees (313,070,000) (317,348,000)
Interest paid, net (26,390,000) (12,261,000)
Income taxes paid (75,000) (60,000)
------------- -------------
Net cash provided by (used in) operating activities (6,540,000) 4,626,000
------------- -------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (8,138,000) (3,631,000)
Net increase in other assets (1,858,000) (959,000)
Proceeds from disposition of assets 49,433,000 609,000
------------- -------------
Net cash provided by (used in) investing activities 39,437,000 (3,981,000)
------------- -------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on indebtedness (40,186,000) (978,000)
Borrowings on indebtedness 7,664,000 1,199,000
Net increase in deferred debt costs (4,063,000) (1,497,000)
Payments on capital lease obligations (637,000) (673,000)
------------- -------------
Net cash used in financing activities (37,222,000) (1,949,000)
------------- -------------
NET DECREASE IN CASH (4,325,000) (1,304,000)
CASH, at beginning of period 10,385,000 7,493,000
------------- -------------
CASH, at end of period $ 6,060,000 $ 6,189,000
============= =============
RECONCILIATION OF NET LOSS TO NET CASH PROVIDED BY
(USED IN) OPERATING ACTIVITIES:
Net loss $ (22,453,000) $ (21,526,000)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Extraordinary loss on extinguishment of debt 1,095,000 --
Depreciation and amortization 15,486,000 15,182,000
Loss on disposition of assets 412,000 4,029,000
Amortization of deferred gain -- (370,000)
Accretion on indebtedness 7,389,000 8,455,000
(Increase) decrease in current assets:
Accounts receivable, net 7,000 1,097,000
Inventories 15,000 1,186,000
Prepaid expenses 1,551,000 (72,000)
Increase (decrease) in current liabilities:
Accounts payable 1,410,000 (427,000)
Accrued liabilities (7,480,000) (3,229,000)
Accrued insurance 529,000 (4,038,000)
Accrued interest (5,346,000) 5,329,000
Accrued payroll 845,000 (990,000)
------------- -------------
Net cash provided by (used in)
operating activities $ (6,540,000) $ 4,626,000
============= =============
</TABLE>
The accompanying notes are an integral part of these
consolidated condensed statements.
4
<PAGE> 7
AMERICAN RESTAURANT GROUP HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
1. MANAGEMENT OPINION
The Consolidated Condensed Financial Statements included herein have
been prepared by the Company, without audit, in accordance with
Securities and Exchange Commission Regulation S-X. In the opinion of
management of the Company, these Consolidated Condensed Financial
Statements contain all adjustments (all of which are of a normal
recurring nature) necessary to present fairly the Company's financial
position as of December 30, 1996 and September 29, 1997, and the
results of its operations and its cash flows for the thirty-nine weeks
ended September 23, 1996 and September 29, 1997. The Company's results
for an interim period are not necessarily indicative of the results
that may be expected for the year.
Although the Company believes that all adjustments necessary for a
fair presentation of the interim periods presented are included and
that the disclosures are adequate to make the information presented
not misleading, it is suggested that these Consolidated Condensed
Financial Statements be read in conjunction with the Consolidated
Financial Statements and notes thereto included in the Company's
annual report on Form 10-K, File No. 33-74012, for the year ended
December 30, 1996 and the Company's current report on Form 8-K, File
No. 33-74012, dated September 12, 1997.
5
<PAGE> 8
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following discussion and analysis of American Restaurant Group Holdings,
Inc.'s financial condition and results of operations should be read in
conjunction with the historical financial information included in the
Consolidated Condensed Financial Statements.
RESULTS OF OPERATIONS
Thirteen weeks ended September 23, 1996 and September 29, 1997:
Revenues. Total revenues decreased from $107.3 million in the third quarter of
1996 to $106.3 million in the third quarter of 1997. Comparable restaurant
revenues decreased 2.9%. During the twelve months ended September 29, 1997, the
Company opened six new restaurants and closed 23 restaurants. There were 249
restaurants operating as of September 23, 1996 and 232 operating as of September
29, 1997.
Black Angus revenues increased 3.6% to $62.0 million in the third quarter of
1997 as compared to the same period in 1996. The increase was due to the
addition of six new restaurants, which included expansion into the Salt Lake
City, Utah, market (one restaurant). The Company closed one restaurant during
the twelve months ended September 29, 1997. Comparable restaurant revenues
decreased 3.2% as compared to the prior year.
Grandy's revenues decreased 13.7% to $19.7 million in the third quarter of 1997
as compared to the same period in 1996. Comparable restaurant revenues in the
third quarter of 1997 were 8.6% lower than the same period in 1996, due to less
use of discounting to stimulate sales and less advertising and promotion. The
Company closed 19 poor performing restaurants during the twelve months ended
September 29, 1997. Franchise revenues increased in the third quarter of 1997
due to the recognition of deferred franchise fees.
Revenues from other concepts (Spoons, Spectrum and National Sports Grill)
remained constant at $24.6 million in the third quarter of 1996 and 1997. The
Company closed three poor performing restaurants during the twelve months ended
September 29, 1997. Comparable restaurant revenues increased 2.6%.
Food and Beverage Costs. As a percentage of revenues, food and beverage costs
remained the same at 31.5% in the third quarter of 1996 and 1997. Higher seafood
costs were offset by lower meat and beverage costs.
Payroll Costs. As a percentage of revenues, labor costs increased from 31.1% in
the third quarter of 1996 to 31.5% in the third quarter of 1997. The increase
was partially due to higher restaurant management payroll.
Direct Operating Costs. Direct operating costs consist of occupancy, advertising
and other expenses incurred by individual restaurants. As a percentage of
revenues, these costs decreased in the third quarter from 26.8% in 1996 to 26.0%
in 1997. The decrease was primarily due to lower advertising costs partially
offset by higher occupancy expenses.
Depreciation and Amortization. Depreciation and amortization consists of
depreciation of fixed assets used by individual restaurants, divisions and
corporate offices, as well as amortization of intangible assets. As a percentage
of revenues, depreciation and amortization remained the same at 4.8% in the
third quarter of 1996 and 1997. A decrease in depreciation, primarily due to the
non-cash reduction of the historical cost of certain long-lived assets in
December 1996, was offset by an increase in deferred debt cost amortization
related to the March 1997 increase in principal for senior secured note holders
who consented to an amendment.
6
<PAGE> 9
General and Administrative Expenses. General and administrative expenses
decreased from $6.8 million in the third quarter of 1996 to $5.6 million in the
third quarter of 1997. The decrease was primarily due to a reduction in
administrative payroll. General and administrative expenses as a percentage of
revenues decreased from 6.3% to 5.3%.
Operating Profit. Due to the above items, operating profit increased from an
operating loss of $0.6 million in the third quarter of 1996 to an operating
profit of $1.1 million in the third quarter of 1997. As a percentage of
revenues, operating profit increased from -0.6% to 1.0%.
Interest Expense - Net. Interest expense decreased from $9.6 million in the
third quarter of 1996 to $8.8 million in the third quarter of 1997. The decrease
was primarily due to a lower average debt balance in the third quarter of 1997.
The Company's average stated interest rate increased from 12.3% in the third
quarter of 1996 to 12.8% in the third quarter of 1997. The weighted average debt
balance (excluding capitalized lease obligations) decreased from $292.1 million
in the third quarter of 1996 to $255.7 million in the third quarter of 1997.
Thirty-nine weeks ended September 23, 1996 and September 29, 1997:
Revenues. Total revenues increased 0.1% from $333.0 million in the thirty-nine
weeks ended September 23, 1996 to $333.2 million in the thirty-nine weeks ended
September 29, 1997. Comparable restaurant revenues decreased 3.5%. There were
249 restaurants operating as of September 23, 1996 and 232 operating as of
September 29, 1997.
Black Angus revenues increased 4.5% to $199.7 million in 1997 as compared to the
same period in 1996. The increase was due to the addition of six new
restaurants. Comparable restaurant revenues decreased 4.2%.
Grandy's revenues decreased 12.1% to $60.0 million in 1997 as compared to the
same period in 1996. Comparable restaurant revenues were 7.2% lower than the
prior year. The Company closed 19 poor performing restaurants during the twelve
months ended September 29, 1997. Franchise revenues were $1.9 million and $2.1
million in 1996 and 1997, respectively.
Revenues from other concepts (Spoons, Spectrum and National Sports Grill)
remained approximately the same at $73.5 million in 1996 and $73.4 million in
1997. Comparable restaurant revenues increased 1.4%.
Food and Beverage Costs. Food and beverage costs as a percentage of revenues
remained approximately the same at 31.7% in 1996 and 31.6% in 1997.
Payroll Costs. As a percentage of revenues, labor costs remained constant at
30.3% in 1996 and 1997.
Direct Operating Costs. As a percentage of revenues, total direct operating
costs increased 0.3% from 25.2% in 1996 to 25.5% in 1997. The increase was
primarily due to higher occupancy expenses partially offset by lower advertising
costs.
Depreciation and Amortization. As a percentage of revenues, depreciation and
amortization decreased from 4.7% in 1996 to 4.6% in 1997. The decrease was
primarily due to the non-cash reduction of the historical cost of certain
long-lived assets in December 1996.
General and Administrative Expenses. General and administrative expenses
increased from $20.0 million in 1996 to $22.1 million in 1997. The increase was
primarily due to a non-cash charge of $4.1 million for costs associated with
closed restaurants. General
7
<PAGE> 10
and administrative expenses as a percentage of revenues were 6.0% and 6.6% (5.4%
before the non-cash charge for closed restaurants) for 1996 and 1997,
respectively.
Operating Profit. Due to the items mentioned above, operating profit decreased
from $7.2 million in 1996 to $4.6 million in 1997. As a percentage of revenues,
operating profit decreased from 2.1% to 1.4%. Before the non-cash charge
mentioned above there was an operating profit of $8.7 million in 1997.
Interest Expense. Interest expense decreased from $28.4 million in 1996 to $26.0
million in 1997. The Company's average stated interest rate increased from 12.1%
in 1996 to 12.8% in 1997. Average borrowings (excluding capitalized lease
obligations) decreased from $289.2 million in 1996 to $252.5 million in 1997.
LIQUIDITY AND CAPITAL RESOURCES
The Company's primary source of liquidity is cash flow from operations. The
Company requires capital principally for the acquisition and construction of new
restaurants, the remodeling of existing restaurants and the purchase of new
equipment and leasehold improvements.
In general, restaurant businesses do not have significant accounts receivable
because sales are made for cash or by credit card vouchers which are ordinarily
paid within a few days, and do not maintain substantial inventory as a result of
the relatively brief shelf life and frequent turnover of food products.
Additionally, restaurants generally are able to obtain trade credit in
purchasing food and restaurant supplies. As a result, restaurants are frequently
able to operate with working capital deficits, i.e., current liabilities exceed
current assets. At September 29, 1997, the Company had a working capital deficit
of $226.8 million which included $171.7 million in current portion of long-term
debt.
The Company estimates that capital expenditures of $5.0 million to $10.0 million
are required annually to maintain and refurbish its existing restaurants. In
addition, the Company spends approximately $10.0 million to $13.0 million
annually for repairs and maintenance which are expensed as incurred. Other
capital expenditures, which are generally discretionary, are primarily for the
construction of new restaurants and for expanding, reformatting and extending
the capabilities of existing restaurants and for general corporate purposes.
Total capital expenditures year to date were $8.1 million in 1996 and $3.6
million in 1997. The decrease was partially due to the construction of six new
restaurants in the prior year. The credit agreement of American Restaurant
Group, Inc. ("ARG"), a wholly owned subsidiary of the Company, contains
limitations on the amount of capital expenditures that ARG may incur.
ARG was three weeks late in paying the quarterly interest of $4.2 million on its
senior secured notes which was due September 15, 1997. The credit agreement
provides for a 30-day grace period for interest payments.
Because ARG failed to make the $40.9 million payment that was due on September
15, 1997 under the sinking fund provisions of its senior secured notes, ARG was
restricted from paying the quarterly interest of $1.2 million on its
subordinated debt which was due September 15, 1997. In addition, ARG failed to
meet EBITDA covenants under its senior secured notes for the twelve months ended
May 31, 1997, for the four quarters ended June 30, 1997 and for the four
quarters ended September 29, 1997. Although ARG's lenders have not moved to
accelerate the repayment of this debt, the Company has included its senior
secured notes and its subordinated debt in the current portion of long-term
debt.
Arthur Andersen LLP, independent public accountants, has issued a report which
states that the fact that ARG (i) has suffered recurring losses from operations,
(ii) has a net capital deficit, (iii) has failed to make the sinking fund
payment of $40.9 million
8
<PAGE> 11
which was due September 15, 1997, and (iv) may be required to renegotiate its
senior debt if it cannot meet amended covenants, raises substantial doubt about
its ability to continue as a going concern.
Substantially all assets of ARG are pledged to its senior lenders. In addition,
the subsidiaries have guaranteed the indebtedness owed by ARG and such guarantee
is secured by substantially all of the assets of the subsidiaries. In connection
with such indebtedness, contingent and mandatory prepayments may be required
under certain specified conditions and events.
ARG's senior credit facilities provide for a letter of credit facility of $11.0
million until December 15, 1997. This letter of credit facility was fully
utilized as of November 3, 1997. A quarterly commitment fee of 0.5% per annum is
payable on the letter of credit facility and a quarterly fee of 3.75% per annum
is payable on outstanding letters of credit. Having repaid the outstanding bank
loan in September 1996, ARG does not have a working capital facility.
ARG did not obtain the required consents from its senior secured note holders or
from the holders of its subordinated debt to sell its Stuart Anderson's Black
Angus and Stuart Anderson's Cattle Company restaurants. Consequently, the
Company will not continue to pursue that transaction.
In order to address these liquidity issues, ARG intends to solicit consent from
its debt holders to refrain from accelerating the repayment of its debt and has
developed a refinancing plan and retained an investment banking company as its
financial advisor and sole placement agent. Although the Company believes that
this refinancing can be completed by year end 1997 and that it will be in the
best interests of its various debt holders, there can be no assurance that it
will be completed on the terms and within the time frame expected.
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) List of Exhibits
<TABLE>
<CAPTION>
Exhibit No. Description
----------- -----------
<S> <C>
4.26 Tenth Amendment to Amended and Restated Credit
Agreement, dated June 25, 1997, among ARG, the
subsidiaries of ARG parties hereto, Bankers
Trust Company, as Agent, and the several banks
named thereto. *
4.27 Eleventh Amendment to Amended and Restated
Credit Agreement, dated July 28, 1997, among
ARG, the subsidiaries of ARG parties hereto,
Bankers Trust Company, as Agent, and the several
banks named thereto. *
4.28 Twelfth Amendment to Amended and Restated Credit
Agreement, dated September 12, 1997, among ARG,
the subsidiaries of ARG parties hereto, Bankers
Trust Company, as Agent, and the several banks
named thereto. *
4.29 Thirteenth Amendment to Amended and Restated
Credit Agreement, dated October 13, 1997, among
ARG, the subsidiaries of ARG parties hereto,
Bankers Trust Company, as Agent, and the several
banks named thereto. *
</TABLE>
9
<PAGE> 12
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION
------- -----------
<S> <C>
27.1 Financial Data Schedule, which is submitted
electronically to the Securities and Exchange
Commission for information only.
* Incorporated by reference to ARG's Quarterly
Report on Form 10-Q dated September 29, 1997
filed with the Securities and Exchange
Commission on November 13, 1997.
</TABLE>
10
<PAGE> 13
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 GROUP HOLDINGS, INC.
(Registrant)
Date: November 13, 1997 By: /s/ WILLIAM J. MCCAFFREY, JR.
----------------- ------------------------------------
William J. McCaffrey, Jr.
Vice President, Chief
Financial Officer
11
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEET AS OF SEPTEMBER 29, 1997 AND THE CONSOLIDATED
STATEMENT OF INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 29, 1997 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH CONSOLIDATED FINANCIAL STATEMENTS
ON FORM 10-Q.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-29-1997
<PERIOD-START> DEC-31-1996
<PERIOD-END> SEP-29-1997
<CASH> 6,189,000
<SECURITIES> 0
<RECEIVABLES> 7,241,000
<ALLOWANCES> 1,076,000
<INVENTORY> 5,632,000
<CURRENT-ASSETS> 20,892,000
<PP&E> 219,987,000
<DEPRECIATION> 124,758,000
<TOTAL-ASSETS> 162,772,000
<CURRENT-LIABILITIES> 247,698,000
<BONDS> 0
0
0
<COMMON> 2,000
<OTHER-SE> (184,352,000)
<TOTAL-LIABILITY-AND-EQUITY> (184,350,000)
<SALES> 333,198,000
<TOTAL-REVENUES> 333,198,000
<CGS> 105,406,000
<TOTAL-COSTS> 185,921,000
<OTHER-EXPENSES> 15,182,000
<LOSS-PROVISION> 87,000
<INTEREST-EXPENSE> 26,045,000
<INCOME-PRETAX> (21,466,000)
<INCOME-TAX> 60,000
<INCOME-CONTINUING> (21,526,000)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (21,526,000)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
