SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-QSB/A
[x] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the quarterly period ended March 31, 1999
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from to
Commission file number 001-13559
Restaurant Teams International, Inc.
------------------------------------
(Name of small business issuer in its charter)
Texas 75-2337102
(State of other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization
1705 E. Whaley, Longview, Texas 75605
(Address of principal executive offices) (Zip Code)
Issuer's telephone number (903) 758-2811
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 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[ ]
Number of shares outstanding of each of the issuer's classes of common stock, as
of May 18, 1999: 7,936,966 shares of common stock, par value $.01.
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RESTAURANT TEAMS INTERNATIONAL, INC.
Page No.
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PART I FINANCIAL INFORMATION........................................................ 2
Item 1. Financial Statements......................................................... 2
--------------------
Condensed Balance Sheet for the Three Month Period
Ended March 31, 1999......................................................... 2
Condensed Income Statement For the Three Month Periods
Ended March 31, 1998 and March 31, 1999...................................... 4
Condensed Statement of Cash Flows for the Three Month
Periods Ended March 31, 1998 and March 31, 1999.............................. 5
Notes to Interim Condensed Financial Statements (Unaudited).................. 6
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations................................ 8
---------------------------------------------
PART II OTHER INFORMATION............................................................ 14
Item 6. Exhibits and Reports on Form 8-K............................................. 14
--------------------------------
Signatures ............................................................................. 15
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PART I - FINANCIAL INFORMATION
Item 1: FINANCIAL STATEMENTS
Restaurant Teams International, Inc.
Condensed Balance Sheet
For the Three Month Period Ending
March 31, 1999
December 31, March 31,
1998 1999
--------- ----------
(Unaudited)
ASSETS
Current Assets
Cash 1,606,245 350,947
Inventory 43,035 34,551
--------- ----------
Total Current Assets 1,649,280 385,498
PROPERTY AND EQUIPMENT (Pledged)
Buildings 4,084,554 4,161,224
Land 135,000 135,000
Leasehold Improvements 30,113 30,113
Vehicles and Equipment 938,636 980,443
---------- ----------
Total Property and Equipment 5,198,303 5,306,780
Accumulated Depreciation (350,505) (381,192)
---------- ----------
Property and Equipment - Net 4,847,798 4,925,588
OTHER ASSETS
Assets held for sale Net of Accumulated Depreciation 1,073,240 1,073,240
Note Receivable - Related Party 1,087,243 925,243
Deferred Income Tax 223,155 223,155
Debenture Issuance Costs 194,798 194,798
Fatburger Acquisitions Deposit 0 1,125,000
Other Assets 95,971 145,183
---------- ----------
Total Other Assets 2,674,407 3,686,619
TOTAL ASSETS 9,171,485 8,997,705
2
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Restaurant Teams International, Inc.
Condensed Balance Sheet
for the Three Month Period Ending
March 31, 1998
(Continued)
December 31, March 31,
1998 1999
LIABILITIES AND SHARESHOLDERS EQUITY (unaudited)
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CURRENT LIABILITIES
Accrued Expenses 317,021 211,610
Accounts Payable 89,835 64,424
Income Taxes Payable 10,000 10,000
Current Portion of Notes Payable - Long Terms 121,862 121,862
---------- ----------
Total Current Liabilities 538,718 407,896
OTHER LIABILITIES
Notes Payable - Long Term, Net of Current Portion 2,043,961 2,040,779
Deferred Income Taxes 269,945 269,945
Deferred Lease Liability 63,141 63,141
Deferred Gain on Sale of Assets 193,502 0
Convertable Debenture 2,102,698 2,102,698
---------- ----------
Total Other Liabilities 5,211,965 4,476,563
SHAREHOLDERS EQUITY
Common Stock, $.01 par value, 50,000,000 Shares 68,334 79,370
Authorized: 6,833,328 shares issued and outstanding in December
and 7,936,966 shars issued and outstanding in March
Additional Paid in Capital 5,718,252 5,707,216
Retained Earnings (1,065,916) 153,726
Retained Earnings - (Prior) 0 (1,065,916)
Less Treasury Stock, 280,440 shares at Cost (761,150) (761,150)
---------- ----------
Total Shareholders Equity 3,959,520 4,113,246
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 9,171,485 8,997,705
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3
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Restaurant Teams International, Inc.
Condensed Income Statement
For the Three Month Periods Ending
March 31, 1998 and March 31, 1999
March 31, 1998 March 31, 1999
(unaudited) (unaudited)
<S> <C> <C>
Sales $ 798,219 $ 1,264,726
EXPENSES
Cost of Sales 205,156 334,565
Salaries and Contract Labor 228,022 389,434
Payroll and other Taxes 39,882 60,556
Professional Fees 8,428 47,852
Advertising and Promotional 15,285 7,356
Rent 50,579 86,067
Insurance 17,121 33,016
Telephone 5,309 6,441
Travel 3,231 3,523
Utilities 23,592 19,726
Depreciation 36,150 36,000
Amortization 14,850 0
Interest 33,846 61,156
Linen and Laundry 11,575 2,937
Repairs and Maintenance 20,129 15,693
Supplies 9,307 11,355
Miscellaneous 0 537
----------- -----------
Total Expenses 722,462 1,116,214
OPERATING INCOME (LOSS) 75,757 148,512
OTHER INCOME (EXPENSE)
Profit / (Loss) on Sale of Assets 111,593 193,502
Rental Income 28,086 0
Acquisition Cost (Old San Francisco Steak House) 0 (188,288)
----------- -----------
Total Other Income (Expense) 139,679 5,214
NET INCOME 215,436 153,726
Basic and Diluted Earnings Per Share .03 02
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Restaurant Teams International, Inc.
Condensed Statement of Cash Flows
For the Three Month Periods Ending
March 31, 1998 and March 31, 1999
March 31, 1998 March 31, 1999
(unaudited) (unaudited)
<S> <C> <C>
Cash Flows from Operating Activities:
Net Income (Loss) $ 215,436 $ 153,726
Adjustments to Reconcile net Income to Net Cash
Provided by Operating Activities:
Depreciation 36,150 36,000
Amortization 14,850 0
Net Change in Assets and Liabilities:
Decrease / (Increase) in Inventory 103 (8,083)
Decrease / (Increase) in Prepaid Expense 0 (67.500)
Decrease / (Increase) in Fatburger Deposit 0 (1,125,000)
(Decrease) / Increase in Accounts Payable (57,471) (25,411)
(Decrease) / Increase in Accrued Expenses (25,970) (76,009)
----------- -----------
Total Adjustments (32,338) (1,266,003)
----------- -----------
Net Cash Provided by Operating Activities 183,098 (1,112,277)
Cash Flows from Investing Activities:
Capital Expenditures (919,039) (108,337)
(Increase) / Decrease in Notes Receivable 18,538 162,000
Net Proceeds from Sale of Assets 467,580 (193,502)
----------- -----------
Net Cash Used in Investing Activities 445,021 (139,839)
Cash Flows from Financing Activities:
Sale of Common Stock 297,555 0
Borrowing on Notes Payable 633,158 0
Principal Payment on Notes Payable (500,000) (3,182)
----------- -----------
Net Cash Provided by Financing Activities 430,713 (3,182)
NET INCREASE / (DECREASE) IN CASH 180,790 (1,255,298)
CASH AT BEGINNING OF PERIOD 20,373 1,606,245
----------- -----------
CASH AT END OF PERIOD 201,163 350,947
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Restaurant Teams International, Inc.
Notes To Interim Condensed Financial Statements
For the Three Month Period Ending
March 31, 1999
(Unaudited)
Note 1. Basis of Presentation
The condensed financial statements of Restaurant Teams International,
Inc. (the "Company") as of March 31, 1997 and March 31, 1998 have
been prepared by the Company, pursuant to the rules and regulations
of the Securities and Exchange Commission. The Company owns four and
operates two restaurants under the names of Street Talk Cafe.
The information furnished herein reflects all adjustments (consisting
of normal recurring accruals and adjustments) which are, in the
opinion of management, necessary to fairly state the operating
results for the respective periods. However, these operating results
are not necessarily indicative of the results expected for the full
fiscal year. Certain information and footnote disclosures normally
included in annual financial statements prepared in accordance with
generally accepted accounting principals have been omitted pursuant
to such rules and regulations. The notes to the condensed financial
statements should be read in conjunction with the notes to the
financial statements contained in the Annual Report filed on May 1,
1997 on Form 10-KSB and the notes to the financial statements
contained in the Form 10-KSB/A-1 filed on August 14, 1998. Company
management believes that the disclosures are sufficient for interim
financial reporting purposes.
Note 2. Sale of Restaurant Facility
On August 1, 1998, the Company sold its facility in Texarkana, Texas
to a related party. Due to the fact that no payments were made on the
property until 1999 the gain on the sale of this property was
deferred in 1998 and realized during the first quarter of 1999. The
company realized a gain of $193,502 on the sale of this facility
which was previously classified as assets held for sale.
Note 3. Subsequent Events
PENDING ACQUISITION
On March 12, 1999 the Company entered into definitive documents to
acquire the Fatburger hamburger chain. The Company is to close the
acquisition in May 1999. Fatburger, founded in 1952, currently
operates 13 company owned Fatburger restaurants in the Los Angeles,
California market and franchisees 22 restaurants in Southern
California and Las Vegas, Nevada under the Fatburger brand. Three
additional franchised restaurants are under construction with two
units expected to open in June 1999 and the third to open in August
1999. Currently, there are commitments and deposits for another 24
franchised units.
6
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Item 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Forward-Looking Statements
This Quarterly Report on Form 10-QSB includes forward-looking
statements within the meaning of Section 27A of The Securities Act of 1933, as
amended (the Securities Act), and Section 21E of the Securities Exchange Act of
1934, as amended (the Exchange Act), which can be identified by the use of
forward-looking terminology such as may, believe, expect, intend, anticipate,
estimate or continue or the negative thereof or other variations thereon or
comparable terminology. All statements other than statements of historical fact
included in this Form 10-KSB, are forward-looking statements. Although the
Company believes that the expectations reflected in such forward-looking
statements are reasonable, it can give no assurance that such statements,
including certain risks and uncertainties that could cause actual results to
differ materially from the Company's expectations (Cautionary Statements) are
disclosed in this Form 10-KSB. Important factors that could cause actual results
to differ materially from those in the forward-looking statements herein
include, but are not limited to, the newness of the Company, the need for
additional capital and additional financing, the Company's limited restaurant
base, lack of geographic diversification, the risks associated with expansion, a
lack of marketing experience and activities, risks of franchising,
seasonability, the choice of site locations, development and construction
delays, need for additional personnel, increases in operating and food costs and
availability of supplies, significant industry competition, government
regulation, insurance claims and the ability of the Company to meet its stated
business goals. All subsequent written and oral forward-looking statements
attributable to the Company or persons acting on its behalf are expressly
qualified in their entirety by the Cautionary Statements.
The following discussion of the results of operations and financial
condition should be the Financial Statements and related Notes thereto included
herein.
Overview
The Company was organized in June 1990 as Bosko's, Inc. under the laws of the
State of Delaware. In November 1992 the Company changed its name to Fresh'n
Lite, Inc., and in November 1995 the Company merged into a Texas corporation
also bearing the name Fresh'n Lite, Inc. On September 15, 1998 the Company
changed its name to Restaurant Teams International, Inc. to more accurately
reflect the direction management is taking with respect to positioning the
Company as a multi-concept holding company. The Company currently owns and
operates two Street Talk Cafe restaurants in Richardson, and The Colony, Texas.
Results of Operations
Comparison of Three Months Ended March 31, 1998 and 1999.
Revenues. For the three months ended March 31, 1999, the Company has
generated revenues of $1,264,726 compared to revenues in the same period of 1998
of $798,219, a 58% gain, a profit of $153,726 compared to a profit of $215,436
in the first quarter of 1998.
Costs and Expenses. Costs and expenses for the three month period
ended March 31, 1999 increased by $393,752, or 54% to $1,116,214 as compared to
$722,462 for the corresponding period of 1998.
7
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Net Income. The Company had a net income for the three months end
March 31, 1999 of $153,726 compared to a net income of $215,436 for the
corresponding three months of 1998, representing $.02 and $.03 per share,
respectively. Earnings per share figures are based on basic earnings per share
as well as diluted earnings per share.
Liquidity and Capital Resources
Historically, the Company has required capital to fund the operations
and capital expenditure requirements of its Company-owned restaurants.
From January 4, 1995 through December 12, 1997, the Company received
gross proceeds from an intrastate offering of $2,219,500. Approximately $287,600
of the proceeds was used to cover offering-related costs, including underwriting
discounts and commissions. The net proceeds were used primarily for the
acquisition of the Company's corporate offices. The remaining proceeds were used
to develop additional restaurants and for general corporate purposes.
The Company met fiscal 1997 capital requirements with cash generated by
operations, the proceeds from the intra-state offering and borrowing on notes
payable. In fiscal 1997 the Company's operations generated approximately
$644,352 in cash, as compared to $551,804 in fiscal 1996 and $461,811 in fiscal
1995. The Company's restaurant operations are labor intensive and do not have
significant receivables or inventory. The Company receives trade credit based
upon negotiated terms in purchasing food and supplies and ordinarily operates
with a relatively small level of working capital.
The Company's principal capital requirements are the funding of
acquisitions. During fiscal 1997, the Company constructed and opened one unit in
the Colony, Texas, and began construction of a second unit in Richardson,
Texas, and a third facility in Addison, Texas, and purchased its corporate
offices facility. The total capital outlay for the year was .
The Company is currently operating out of cash flow from operations.
The Company completed two private placements of A Debentures and B Debentures on
May 29, 1998 and June 29, 1998, respectively, providing net proceeds to the
Company of $2,670,000. The proceeds were used to fund the Company's expansion
strategy of opening additional Street Talk Cafe restaurants in the Dallas market
area. The Company is currently seeking a recision of said debentures through a
lawsuit filed in Federal court on November 9, 1998. See Item 3 - Legal
Proceedings.
Explanation of Debentures
On May 29, 1998, the Company entered into an agreement to issue two
tranches of convertible debentures to accredited investors with a total face
amount of $3,000,000. The Company received net proceeds of $2,670,000 after
paying certain costs of the purchasers. The debentures bear interest at 6%,
mature on May 29, 2000, and are convertible into shares of common stock of the
Company. Conversion is at the option of the holders, and the number of shares of
common stock to be received upon conversion is based upon the lesser of (a) the
closing bid price on the day immediately preceding the agreement ($4.00), or (b)
the average closing bid price for the Company's stock for the five-trading-day
period immediately preceding the date of conversion, multiplied by a discount
ranging from 17.5% to 25%, which is considered a beneficial conversion feature
(BCF). In accordance with generally accepted accounting principles, the Company
valued the BCF by multiplying the difference between the fair value of the
Company's stock as of the transaction date and the conversion price most
beneficial to the investor, by the number of shares to be received upon
conversion by the investor under the most beneficial terms. This resulted in a
decrease in the carrying value of the Convertible Debentures and a corresponding
increase in stockholder's equity of $1,000,000. The related discount recorded
upon the issuance of the Convertible Debenture was accreted into interest
expense over a sixty-one day period, beginning on the issuance date and ending
on the first date at which the most beneficial conversion to the investor could
be realized. This resulted in additional interest expense of $1,000,000 and a
corresponding increase in the carrying value of the Convertible Debentures of
$1,000,000 in 1998. The Company has the option of paying accrued interest upon
conversion and at maturity in cash or through the issuance of an equal dollar
value of additional shares. If the entire principal amount has not been
converted by the maturity date, the Company will automatically convert the
remaining principal using the same conversion formula described above. The
Company has the right to redeem the debentures for the cash value of the shares
that would be received upon conversion as of the redemption date, multiplied by
the closing bid price on the last trading day immediately preceding the
redemption date.
8
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If an event of default, as defined by the agreement, occurs, the
holder may consider the Convertible Debentures to be immediately due and payable
in cash, at an amount equal to the number of shares issuable upon conversion,
including related discounts as described above, multiplied by the closing bid
price of the day immediately preceding the notice of default. An event of
default could result in the Company paying amounts to the holders in excess of
the amounts recorded on the balance sheet.
In connection with the issuance of these debentures, the Company
issued to the investors and the placement agent warrants to purchase up to an
aggregate of 150,000 and 50,000 shares, respectively, of the Company's stock
with an exercise price equal to 110% of the average closing bid price for the
five trading days immediately preceding the agreement date or $4.40. These
warrants have a five-year life. The warrants were valued on the date of issuance
at $2.00 per warrant which resulted in a decrease in the carrying value of the
Convertible Debentures and a corresponding increase in stockholder's equity of
$400,000. The resulting discount upon the issuance of Convertible Debentures
will be accreted into interest expense over the life of the debentures, adjusted
for conversions to common stock.
During the year, the investors made two conversions of principal
totaling $675,000, plus accrued interest. The Company issued 408,388 shares of
common stock in connection with the conversions. No additional conversions have
been made.
Plan of Operations
PENDING ACQUISITION
On March 12, 1999 the Company entered into definitive documents to
acquire the Fatburger hamburger chain. The Company is to close the acquisition
in May 1999. Fatburger, founded in 1952, currently operates 13 company owned
Fatburger restaurants in the Los Angeles, California market and franchisees 22
restaurants in Southern California and Las Vegas, Nevada under the Fatburger
brand. Three additional franchised restaurants are under construction with two
units expected to open in June 1999 and the third to open in August 1999.
Currently, there are commitments and deposits for another 24 franchised units.
History
The Fatburger brand, which first appeared in 1952, is a well-known
trademark that has come to represent the classic Los Angeles hamburger stand.
The original restaurant on Western Avenue and the well-known La Cienga unit are
still operating. Many LA hamburger fans have had a Fatburger experience to
relate, and for many out-of-town visitors, a stop at Fatburger is a necessary
part of their itinerary. In becoming synonymous with the LA lifestyle, Fatburger
has become a frequent dining spot for athletes and celebrities as well.
Today the chain is experiencing resurgence with same-store sales at
Company owned units up 20% during the last year and franchise division sales up
30% for the year.
9
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Concept & Strategy
Fatburger is in the quick service, cooked to order hamburger business.
Critical to the overall taste and quality of the finished product is Fatburger's
absolute commitment to a "cook to order" method that ensures every burger is
served hot off the grill Fatburger operates in two distinct industry niches:
themed restaurants and hamburger. Fatburger offers an experience between
traditional fast feeders and casual dining concepts.
While 45% of sales come from the varied forms of Fatburger hamburgers,
the core items are supported by other menu items that are consistent with the
taste and quality standards of the concept. French fries and hand-breaded onion
rings make up 18% of sales; beverages, including hand scooped, real ice cream
milkshakes and fresh lemonade are 17%. Additional items include fresh all beef
hot dogs, marinated chicken breast sandwich and ground turkey burgers. Guest
check averages for Fatburger are $6.25.
Over the past 47 years, this "high quality" quick service niche of the
hamburger segment has made Fatburger one of the favorite restaurants in LA.
Fatburger's unique blend of entertainment, value and product quality delineates
the concept from other operators in the hamburger segment and provides a more
memorable dining experience than other operators in the segment. Fatburger was
voted best hamburger in Las Vegas and has won that distinction in several polls
taken in the LA area.
Ambiance/Design
The ambiance of the restaurant helps Fatburger achieve its motto as
"The Last Great Hamburger Stand." The design, decor and atmosphere of the
restaurants include distinctive rhythm and blues jukebox and a high quality
sound system that contribute to an upbeat, but sophisticated environment, tying
Fatburger back to the community juke joints and great burger joints of the past.
Restaurant Operations
Fatburger requires its hourly team members to participate in a formal
training program carried out at the individual restaurants, with the on-the-job
training program varying from three days to two weeks. Managers are trained at
one of the Company's specified training restaurants by that restaurant's general
manager and then certified upon completion of an eight to twelve week program
that encompasses all aspects of quality control and customer relations. Managers
at restaurants prepare daily reports of cash, deposits, sales, operating costs
and profits. In addition, they submit weekly payroll reports and profit and loss
statements and perform weekly inventories of all food, beverage and supply
items. Monthly profit and loss statements are provided to field management for
analysis and comparison to Company budgets. Fatburger's objective is to maintain
quality and consistency in its restaurants through the careful supervision of
personnel and the establishment of standards relating to food handling and
preparation, facility maintenance, and employee conduct. Fatburger maintains an
electronic POS system that links each store to a centralized system. Individual
restaurants are polled daily for sales, cash control and operational data.
10
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A typical Fatburger operates with a staff of 12-26, including a
restaurant manager, four shift leaders, and 7-21 hourly employees who are
predominately full time. Training is ongoing and a great deal of emphasis is
placed on team-oriented behavior and interaction with guests. All new management
personnel go through a five to eight week training program conducted at one of
two designated training stores.
Restaurants are open from 10:30 to midnight most days of the week, with
later hours on weekends. Hours are set by management based on local conditions.
In some circumstances, Fatburger restaurants are open for 24-hour service.
Fatburger restaurants range in size from 950-2000 square feet. This
small format and flexibility permits a broader range of site selection options
and helps reduce the cost of opening new units. Fatburger has opened six
restaurants in the last 48 months. For the four in-line or end cap units, the
total cost to open a new unit averaged approximately $385,000, including all
leasehold improvements, equipment, and beginning inventory as well as all
expenses for design, site selection, lease negotiation, construction supervision
and permitting.
For the two newly constructed, freestanding units with drive-thrus, the
average cost was approximately $675,000. Management expects future restaurants
will cost approximately $450,000 to open based on design modifications,
management experience, and emphasis on smaller units and buying economies.
Franchising
Under the franchise-licensing program that has been in place since
September 1995, Fatburger offers single unit and multi-unit franchises
throughout the United States. Under a single unit agreement, a franchisee must
pay a deposit of $30,000 that is applied towards their franchise fee.
Multi-unit franchise agreements and development awards are the primary
form of franchise awards and are used exclusively when entering new markets.
They must pay a $10,000 deposit for each restaurant they plan to develop. The
balance of the franchise fee must be paid upon lease execution for each
location.
Development agreements conferring exclusive territory rights for a
specified period of time require a $10,000 non-refundable development fee for
each unit, as well as the $30,000 franchise fee per unit. If the pre-approved
development schedule is not adhered to the exclusive rights may be forfeited.
Ongoing royalty fees are 5% of gross sales. The initial term of the
agreements is 15 years with 2 successive 10-year renewal options. Royalty fees
are paid semi-monthly.
The Company provides initial training and ongoing field support
services to its franchisees in an effort to help maximize business and financial
management, maintain quality control and customer service excellence, and to
promote an active partnership between the Company and franchisees.
The Company administers a marketing fund for the purposes of promoting
and building brand identity, advertising and promotion, building community
relations, and supporting the growth and development of the Fatburger system as
a whole.
11
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Terminated Acquisition
In October 1998 the Registrant signed an asset Purchase Agreement to
acquire all of the properties and assets comprising the Old San Francisco
Restaurant chain ("OSF"). The OSF acquisition was for all cash at closing, and
Registrant was unable to obtain financing for the purchase price on terms
acceptable to it. Registrant therefore declined to pursue its agreement to
purchase OSF, and the agreement was terminated without penalty on February 1,
1999. Registrant instead concentrated its efforts on pursuit of the Fatburger
transaction.
Employees
The Company expects to hire three full time management personnel and
thirty part time hourly personnel with the opening of each new restaurant
operation. The cost of these personnel should be 25% of the annual operating
revenue to be generated by each operation. The initial cost of hiring and
training of all personnel is covered in the store start up costs.
Year 2000 Compliance
The Company uses current versions of widely used, publicly available
software for its accounting, data processing, and point of sale computer
requirements. The providers of the software utilized by the Company have stated
that there will be no failures in the programs used by the Company resulting
from the year 2000. The Company does not utilize any customized software. The
Company has not yet determined the impact, if any, that year 2000 issued may
have on its vendors. However, the Company believes there are adequate
alternative vendors that can supply products and services to the Company if
necessary. Finally, the Company's business is not highly dependent upon
electronic data processing. In conclusion, the Company does not believe it is at
a material risk from year 2000 issues.
12
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PART II - OTHER INFORMATION
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Hereafter set forth in the Form 10-QSB of Restaurant Teams
International, Inc. and incorporated by reference herein are
the following exhibits:
No. Description of Exhibit
--- ----------------------
27 Financial Data Schedule
(b) Current Reports on Form 8-K:
None.
13
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company
has duly caused this amendment to be signed on its behalf by the undersigned
thereunto duly authorized.
Restaurant Teams International, Inc.
(Registrant)
/s/ Stanley L. Swanson
Date: May 20, 1999 By: -------------------------------------------
Stanley L. Swanson, Chief Executive Officer
(Duly Authorized Signatory)
/s/ Curtis A. Swanson
Date: May 20, 1999 By: -------------------------------------------
Curtis A. Swanson, Chief Financial Officer
And Executive Vice President
(Duly Authorized Signatory)
14
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<CIK> 0000921066
<NAME> Restaurant Teams International, Inc.
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<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<EXCHANGE-RATE> 1
<CASH> 350,947
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<INCOME-CONTINUING> 153,726
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 153,126
<EPS-PRIMARY> .02
<EPS-DILUTED> .02
</TABLE>
