UNITED STATES
SECURITIES AND EXCHANGE COMMISSIONPRIVATE
WASHINGTON, D.C. 20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended July 13, 1997
OR
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ____ to ____
Commission File Number:33-95796
CLUCKCORP INTERNATIONAL, INC.
----------------------------------------------------
(Exact name of registrant as specified in its charter)
Texas 76-0406417
----- ----------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
1250 N.E. Loop 410, Suite 335
San Antonio, Texas 78209
----------------------------------------------------------
(Address of principal executive offices, including zip Code)
(210) 824-2496
-----------------------------
(Registrant's telephone number)
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
---- ----
Indicate the number of shares outstanding of each of the issuer's classes of
common stock as of the latest practicable date:
2,366,030 shares as of August 25, 1997
<PAGE>
CLUCKCORP INTERNATIONAL, INC.
INDEX
PART I. FINANCIAL INFORMATION PAGE NO.
--------
ITEM 1. Financial Statements
Consolidated Balance Sheets -
July 13, 1997 and December 29, 1996 3
Consolidated Statements of Operations -
12 and 28 Weeks Ended
July 13, 1997 and July 14, 1996 4
Consolidated Statements of Cash Flows -
28 Weeks Ended
July 13, 1997 and July 14, 1996 5
Notes to Financial Statements 6
ITEM 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 10
PART II. OTHER INFORMATION
ITEM 4. Submission of Matters to a Vote of Securities holders 13
ITEM 6. Exhibits and Reports on Form 8-K 13
SIGNATURES 13
2
<PAGE>
<TABLE>
<CAPTION>
CLUCKCORP INTERNATIONAL, INC.
Consolidated Balance Sheets
July 13, December 29,
1997 1996
---- ----
(Unaudited)
<S> <C> <C>
ASSETS
Current Assets
Cash $ 2,890,514 $ 1,271,443
Cash, restricted -- 220,000
Inventories 15,750 8,658
Prepaid expenses 5,829 --
Other current assets 428 10,590
------ ------
Total Current Assets 2,912,521 1,510,691
Property and Equipment, net 1,828,193 1,156,362
Other Assets
Notes receivable from financed area developers, net
of allowance of $286,023 in 1997 1,677,317 --
Intangible property rights, net of
accumulated amortization of $180,661 in
1997 and $139,825 in 1996 218,839 259,675
Deposits 93,818 83,257
Other assets 45,132 127,727
------ -------
2,035,106 470,659
$ 6,775,820 $ 3,137,712
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable, trade $ 288,744 $ 134,204
Accrued liabilities 237,132 220,406
Notes payable to bank, current 211,004 200,000
------- -------
Total Current Liabilities 736,880 554,610
Deferred franchise revenue 160,000 --
Notes payable to bank 48,206 --
Stockholders' Equity
Preferred stock - $1.00 par value,
authorized 5,000,000, issued
515,000 in 1997 and none in 1996 515,000 --
Common stock - $.01 par value,
authorized 10,000,000, issued
2,366,030 in 1997 and 2,112,750 1996 23,660 21,128
Additional paid-in capital 10,564,919 6,138,770
Accumulated deficit (5,272,845) (3,576,796)
---------- ----------
Total Stockholders' Equity 5,830,734 2,583,102
$ 6,775,820 $ 3,137,712
============ ============
See notes to financial statements (unaudited).
3
<PAGE>
CLUCKCORP INTERNATIONAL, INC.
Consolidated Statements of Operations (Unaudited)
12 Weeks Ended 28 Weeks Ended
-------------- --------------
July 13, July 14, July 13, July 14,
1997 1996 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
Revenues
Restaurant operations $ 468,394 $ 47,971 $ 915,388 $ 111,109
Franchise and development fees 200,000 -- 200,000 --
Royalties 976 -- 976 --
------ ------ ------ ------
Total revenues 669,370 47,971 1,116,364 111,109
Costs and Expenses
Cost of food and paper 246,580 20,719 476,828 44,453
Restaurant salaries and benefits 176,754 22,013 411,438 45,867
Occupancy and related expenses 73,370 13,609 138,382 30,356
Operating expenses 210,989 15,006 350,416 35,248
Preopening expenses 94,013 34,757 181,120 34,757
General and administrative expenses 408,646 349,527 845,151 519,472
Financed Area Developer loss provision 286,023 -- 286,023 --
Depreciation and amortization 71,656 20,976 132,291 51,800
------ ------ ------- ------
Total costs and expenses 1,568,031 467,114 2,821,649 761,953
--------- ------- --------- -------
Loss from operations (898,661) (419,143) (1,705,285) (650,844)
Other income (expense)
Interest income 3,504 -- 20,387 --
Interest and debt discount expense (3,335) (270,377) (11,151) (447,696)
------ -------- ------- --------
169 (270,377) 9,236 (447,696)
------ -------- ------ --------
Net Loss $ (898,492) $ (689,520) $(1,696,049) $(1,098,540)
=========== =========== =========== ===========
Net loss per common share $ (.38) $ (.52) $ (.73) $ (.84)
=========== =========== =========== ===========
Weighted average number of common
and common equivalent shares
outstanding 2,366,030 1,331,994 2,337,601 1,305,540
========= ========= ========= =========
See notes to financial statements (unaudited).
4
<PAGE>
CLUCKCORP INTERNATIONAL, INC.
Consolidated Statements of Cash Flows (Unaudited)
28 Weeks Ended
--------------
July 13, July 14,
1997 1996
---- ----
<S> <C> <C>
Operating Activities:
Net loss for the period $(1,696,049) $(1,098,540)
Adjustments to reconcile net loss
to net cash used in operating activities:
Depreciation and amortization 132,291 51,800
Amortization of bridge note discount -- 367,153
Loss provision for financed area developers 286,023 --
Changes in operating assets and liabilities:
Cash, restricted 220,000 (200,000)
Inventories (7,092) 2,017
Deferred financing costs -- 24,710
Other current assets 4,333 10,000
Accounts payable and accrued liabilities 171,266 359,425
Deferred franchise revenue 160,000 --
------- -------
Net cash (used) in operating activities (729,228) (483,435)
Investing Activities:
Purchase of property and equipment (755,690) (75,561)
Additions to deposits (10,562) (217,151)
Acquisition of assets (1,121,405) --
Issuance of notes receivable to area developers (841,935) --
Reductions in other assets 75,000 18,342
------ ------
Net cash (used) in investing activities (2,654,592) (74,370)
Financing Activities:
Proceeds from sale of common stock and warrants 568,875 --
Proceeds from sale of common stock subject
to rescission -- 209,884
Proceeds from sale of preferred stock and warrants 4,374,806 --
Proceeds from issuance of bridge notes -- 376,370
Proceeds from bank borrowing 65,000 200,000
Repayments of bank borrowings (5,790) --
------ -------
Net cash provided by financing activities 5,002,891 786,254
--------- -------
Net increase in cash 1,619,071 28,449
Cash at beginning of year 1,271,443 126,447
--------- -------
Cash at end of period $ 2,890,514 $ 154,896
=========== ===========
Supplemental disclosure of
cash flow information:
Interest paid $ 11,151 $ --
=========== ===========
Federal income taxes paid $ -- $ --
=========== ===========
Supplemental disclosure of
noncash investing activities:
Sale of assets to area developer
for note receivable $ 1,121,405 $ --
=========== ===========
See notes to financial statements (unaudited).
5
<PAGE>
</TABLE>
CLUCKCORP INTERNATIONAL, INC.
Notes to Financial Statements (Unaudited)
NOTE A - ORGANIZATION AND BASIS OF PRESENTATION
Organization - CluckCorp International, Inc. owns, operates and franchises quick
service restaurants under the name "Harvest Rotisserie". The Company has four
Company-owned restaurants in operation in San Antonio and Corpus Christi, Texas
and has sold franchises for nine stores. The restaurants provide high quality,
quick service food featuring marinated oak-roasted rotisserie chicken,
oak-roasted turkey breast, roast ham, meatloaf, an assortment of sandwiches and
other homestyle food items.
The accompanying consolidated financial statements include the accounts of
CluckCorp International, Inc. and its franchising subsidiary, Harvest
Restaurants, Inc., and are referred to collectively as "Company". All
significant intercompany accounts and transactions have been eliminated in
consolidation.
Basis of Presentation - The accompanying unaudited consolidated financial
statements have been prepared by the Company in accordance with the instructions
to Form 10-QSB. Accordingly, certain information and footnote disclosures
normally included in annual financial statements prepared in accordance with
generally accepted accounting principles have been omitted. In the opinion of
management, all adjustments (consisting of normal recurring accruals and
adjustments) considered necessary for a fair presentation have been made. The
statements are subject to year-end adjustment. The consolidated results of
operations for the 28 weeks ended July 13, 1997 may not be indicative of the
results for the full fiscal year. For further information, refer to the
Company's audited financial statements as filed with the Securities and Exchange
Commission in the Company's Form 10-KSB for the year ended December 29, 1996.
NOTE B - REVENUE RECOGNITION
Revenue from company-owned restaurant sales are recognized in the period in
which the food and beverage products are sold. Revenue from nonrefundable area
development fees and initial franchise fees are recognized when all material
services or conditions related to the sale have been substantially performed by
the Company, which is generally determined to be when the franchise store opens.
Royalties are recognized in the same period that the franchise revenue is
generated. Interest and fees for services are recognized as earned.
NOTE C - FISCAL YEAR
The Company has adopted a 52/53-week fiscal year ending on the last Sunday in
December. The fiscal year is divided into thirteen four-week periods. The first
quarter consists of four periods and each of the remaining three quarters
consists of three periods, with the first, second and third quarters ending 16
weeks, 28 weeks and 40 weeks respectively, into the fiscal year.
NOTE D - IMPACT OF NEW ACCOUNTING STANDARD
In February 1997, the Financial Accounting Standards Board issued Statement No.
128, Earnings Per Share, effective for fiscal years ending after December 15,
1997. Implementation of this Statement is not expected to have a significant
impact on the earnings per share calculation of the Company.
6
<PAGE>
NOTE E - STOCKHOLDERS EQUITY
In June 1997 the Company completed the sale of 515,000 shares of 12% Convertible
Preferred Stock and 1,565,000 Preferred Stock Purchase Warrants in a public
offering. The Company realized net proceeds of $4,374,806 from the offering.
The Preferred Stock is convertible at the option of the holder at any time after
March 11, 1998 into shares of Common Stock at a conversion rate of 2.7 shares of
Common Stock for each share of Preferred Stock. The Preferred Stock will
automatically convert to Common Stock at the conversion rate if the closing
price for the preferred Stock equals or exceeds $20.00 per share for ten
consecutive days at any time after March 11, 1998. The Preferred Stock may be
redeemed in whole or in part at the option of the Company after March 11, 1998,
upon 30 days written notice, at 110% of the average bid price per share for the
Preferred Stock for the 20 trading days prior to the redemption date.
Dividends are cumulative and payable quarterly in arrears at a rate of $.30 per
share per quarter. The redemption price and dividends may be paid in cash or in
Common Stock of the Company at the Company's sole discretion.
Each Preferred Stock Purchase Warrant entitles the holder to purchase one share
of Preferred Stock at $10.50 per share at any time after December 11, 1997 until
June 11, 2002. The Preferred Warrants may be redeemed by the Company for $.01
per Warrant upon 30 day's notice at any time after March 11, 1998 if the closing
price of the Companys Preferred Stock averages at least $11.00 per share for a
period of 20 consecutive trading days or if the Company redeems the Preferred
Stock.
NOTE F - ACQUISITION OF RESTAURANT PROPERTIES
On June 25, 1997 the Company completed the purchase of certain assets of eight
Kenny Rogers Roasters restaurants located in Florida, Indiana, and North
Carolina from Roasters Corp., a Florida Corporation. The purchase price included
$1,050,000 in cash and the assumption of certain liabilities and lease
obligations. The acquisition was accounted for as a purchase, and accordingly,
the purchase price, including related acquisition expenses of $71,405 was
allocated to identified assets and liabilities, with no excess of purchase price
over the net assets acquired. Effective concurrent with the acquisition, the
Company resold these assets to its Area Developers in exchange for a promissory
note and the assignment of the assumed liabilities. The Company realized no gain
or loss on the resale of the properties to the Area Developers.
On June 20, 1997 the Company entered into area development agreements with three
separate unaffiliated corporations, each of which is majority-owned and
controlled by the same individual. The area development agreements provide for
the development of up to a total of 30 franchised Harvest Rotisserie restaurants
over a two to three year period, of which nine were opened as August 25, 1997.
The area developers have entered into franchise agreements for nine stores. The
Company received a total of $360,000 as payment for the area development and
franchise fees related to these locations. At July 13, 1997, only five of these
restaurants were opened, and accordingly, the Company deferred revenue
recognition of $160,000 for the franchise and development fees related to the
remaining four restaurants which subsequently opened after the end of the
Company's second quarter.
7
<PAGE>
NOTE G - AREA DEVELOPER FINANCING
Effective June 25, 1997, the Company began offering convertible secured debt
financing to its three area developers to finance the purchase of the acquired
Roaster properties, and the costs to renovate and reopen the properties as
Harvest Rotisserie restaurants. The Company also agreed to finance a portion of
the area developers initial working capital needs. The loans may be drawn upon
during a two to three year period up to the maximum amount as set in the loan
agreements. During the draw period, interest only is payable to the Company.
Upon expiration of the draw period, the loan converts to a ten year amortizing
loan with a balloon payment after the fifth year. The Loans bear interest at
prime (as set by Frost National Bank of Texas) plus 4%. The loans are secured by
a pledge of substantially all of the assets of the area developer and of all the
outstanding stock held by the owners of the area developer.
a) Loan Conversion Option
----------------------
The Company may convert all or any part of the loan amount at any time after the
draw period into equity of the area developer. The conversion rate is set to
give the Company majority ownership of the developer upon conversion. To the
extent that the loan has not been fully drawn or drawn and repaid, the Company
has a corresponding option to purchase at the conversion rate the amount of
additional equity it could have obtained through conversion of the loan had the
maximum loan amount been outstanding.
There can be no assurance that the Company will exercise future rights to
convert into an equity interest in any area developer or that such exercise of a
conversion option would result in a majority interest in the area developer.
b) Commitments to Extend Area Developer Financing
----------------------------------------------
All three of the Company's existing area developers are receiving financing from
the Company. The Company has committed to loan a total of $2,668,000 under its
financed area developer loan program, of which $1,963,340 has been loaned as of
July 13, 1997.
c) Credit Risk and Allowance for loan Losses
-----------------------------------------
The Company's three financed area developers are all majority owned and
controlled by the same individual. These area developers accounted for 100% the
notes receivable from financed area developers all sales of development and
franchise fees recognized during the second quarter. An allowance of the
Company's notes receivable from financed area developers is maintained at a
level that in management's judgment is adequate to provide for estimated
possible loan losses. The amount of the allowance is based on management's
review of loan proceeds, status of development schedule, store performance
trends, type and amount of collateral securing the loan, prevailing economic
conditions, and other factors that management deems relevant at the time. Due to
the limited store operating history to base a credit evaluation, management has
provided an allowance for loan losses of $286,023, which is equal to the
accumulated net loss of the area developers. The summary financial position at
July 13, 1997 the Company's area developers is as follows:
8
<PAGE>
NOTE G - AREA DEVELOPER FINANCING - Continued
Current assets $ 191,986
Property and equipment, net 3,220,321
Other assets 271,812
-------
Total Assets $3,684,119
==========
Current liabilities $ 180,260
Notes Payable:
Owed to the Company 1,963,340
Owed to third Parties 1,466,542
---------
3,429,882
Stockholders' Equity 73,977
----------
Total Liabilities and Equity $3,684,119
==========
NOTE H - COMMITMENTS AND CONTINGENCIES
The Company is the primary lessee under all property lease agreements for
restaurants operated by the Company and its franchisees. The Company subleases
the restaurant sites to its area developers under the same terms as under the
lease. The lease terms generally have initial terms of ten years with two or
three five-year renewal options. Most of the leases contain escalation clauses
and require the payment of common area maintenance charges or taxes, insurance
and other expenses. The Company remains liable on the properties subleased to
area developers. The Company also is continently liable for various equipment
operating leases which the Company assigned to the area developers. Total future
minimum rental payments under leases assigned or subleased to area developers
with remaining non-cancelable terms in excess of one year is approximately
$6,050,000 as of July 13, 1997.
The Company has also guaranteed certain promissory notes of its area developers
payable to third parties totaling $1,466,542.
9
<PAGE>
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Forward-looking Statements
Except for the historical information contained herein, the matters set
forth in this report are forward-looking statements within the meaning of the
"safe harbor" provisions of the Private Securities Litigation Reform Act of
1995. These forward-looking statements are subject to risks and uncertainties
that may cause actual results to differ materially. These risks are detailed in
the Company's various reports filed with the Securities and Exchange Commission.
These forward-looking statements speak only as of the date hereof. The Company
disclaims any intent or obligation to update these forward-looking statements.
General
The Company was organized in June 1993. As of July 13, 1997, The Company
has four company-owned restaurants in operation and has sold franchises for nine
additional restaurants. On June 25, 1997, the Company completed the acquisition
of certain assets of eight Kenny Roger Roaster properties located in Florida,
North Carolina, and Indiana. These assets were resold by the Company to three
area developers which have renovated the properties and are operating them as
franchised Harvest Rotisserie restaurants.
The results of operations are significantly impacted by the number of
restaurants opened during the period. Store opening dates are as follows:
Company Owned Restaurants: No. Opened Date:
- -------------------------- --- ------------
San Antonio, TX 1 January 1994
San Antonio, TX 1 November 1996
Corpus Christi, TX 1 January 1997
San Antonio, TX 1 February 1997
-
Total Company owned 4
Franchised Restaurants:
-----------------------
Florida, North Carolina, Indiana 7 July 1997
Indiana 2 August 1997
-
Total Franchised 9
--
Total System-wide restaurants 13
==
Results of Operations - For the 12 and 28 week periods ended July 13, 1997
compared to the 12 and 28 week periods ended July 14, 1996.
Revenues. Total revenues for the 12 weeks ended July 13, 1997 increased to
$628,394, approximately 13 times the amount of revenue as compared to same
period in 1996. The significant increase was due to the opening of three
additional resturants from November 1996 to February 1997, and the recognition
of franchise and development rights for five resturants which open during the
period. The Company deferred revenue recognition on the sale of four additional
franchised resturants sold during the period.
10
<PAGE>
Costs and Expenses. Cost of food and paper were 52.6% and 52.1% of restaurant
revenues for the 12 and 28 week periods ended July 13, 1997, as compared to
36.0% and 36.2% for the same periods in 1996. The increase in food and paper
costs was due to the opening of new restaurants in the first quarter of 1997.
Costs of sales is generally higher as a percentage of revenue for newly opened
restaurants than for mature restaurants due to increased food usage for opening
promotions and inefficiencies caused by less experience employees.
Restaurant salaries, benefits, occupancy and related expenses, and
operating expenses include all other restaurant level operating expenses, the
major components of which are direct and indirect labor, payroll taxes and
benefits, operating supplies, rent, advertising, repairs and maintenance,
utilities, and other occupancy costs. The combined total of these expenses was
118% and 98% of restaurant revenues for the 12 and 28 week periods ended July
13, 1997, as compared to 106% and 100% for the same comparable periods in 1996.
A substantial portion of these costs are fixed or indirectly variable. These
costs were disproportionate to revenues in 1997 due to the opening of new
resturants, which have higher expenses during the initial periods after opening.
General and administrative expenses increased 16.9% and 62.7% for the 12
and 28 week periods ended July 13, 1997 as compared to the same periods in 1996.
The increase resulted from the initial development of a corporate infrastructure
needed to support the planned expansion of company-owned and franchised
restaurants, and continued expenses associated with company's financing and
franchising activities.
Preopening expenses increased by $59,256 and $146,363 for the 12 and 28
week periods ended July 13, 1997 as compared to the same periods in 1996. The
increase relates to initial costs associated with the development of a new
Harvest Rotisserie restaurants and lease costs for maintaining future restaurant
sites.
Financed area developer loss provision. The Company provided for a loss
provision of $286,203 for the 12 weeks ended July 13, 1997 for possible
estimated losses under the Company's financed area developer loan program. Due
to limited operating history to base an evaluation of credit risk, management as
set the loan loss provision at an amount equal to the accumulated net loss of
the area developers.
Interest and debt discount expense. Interest and debt discount expense
decreased $267,041 and $436,545 for the 12 and 28 weeks ended July 13, 1997 as
compared to the same periods in 1996. The decrease was due to the repayment of
$1,684,500 of notes payable in July 1996.
Net Loss. The Company incurred a net loss of $898,492 and $1,696,049 for
the 12 and 28 week periods ended July 13, 1997 as compared to $689,520 and
$1,098,540 for the same periods in 1996. The increase in net loss was primarily
the result of a loss provision of $286,203 for estimated loan losses to the
Company's financed area developers and initial operating losses for newly opened
company-owned restaurants. The Company expects to incur losses in future periods
until it generates sufficient revenues from expanded restaurant operations and
its franchising activities to offset ongoing operating, financing and expansion
costs.
11
<PAGE>
Liquidity and Capital Resources
The Company has incurred losses from operations since inception and as of
July 13, 1997 has an accumulated deficit of $5,272,845. The Company is not
presently generating sufficient revenues to meet its operating needs. Management
anticipates that the Company must increase revenues from existing restaurants,
open additional company-owned restaurants and realize revenues from its
franchise program to generate a positive cash flow from operations, although
there can be no such assurance.
The Company requires capital principally for the development of
company-owned restaurants, to provide financing for its area developers for
their use in developing franchised stores, to promote brand awareness for the
restaurants, and for the continual development of a corporate infrastructure to
support the planned expansion in operations. During 1997, the Company invested
$1,121,405 for the acquisition of eight restaurant properties and provided
$841,935 of financing to its area developers for restaurant development. The
Company also invested $755,690 for the development of two company-owned
resturants which opened in the first quarter of 1997. To date, the Company has
funded its capital and operations needs with funds provided from the sale of its
securities, including the sale of preferred stock and warrants completed in June
1997 which raised net proceeds of $4,374,806. The Company does not have a
working capital line of credit with any financial institution.
The Company used a substantial portion of the proceeds of the preferred
offering for the acquisition of eight restaurant properties and for loans made
to its area developers under the Companys financed area developer program. The
acquired properties were resold by the Company to three area developers in
return for a promissory note which has been included in the Company's financed
area developer loan program. The area developers have converted the eight
properties to Harvest Rotisserie restaurants and are operating the restaurants
as franchised units. The Company has committed to loan a total of $2,668,000
under the financed area developer loan program, of which $1,963,340 has been
loaned as of July 13, 1997.
Sources of capital are limited to the Company achieving profitable
operations in future periods or raising additional capital from investors. The
Company anticipates that its existing capital resources and projected cash flows
from operations will be sufficient to maintain its operations through 1997.
12
<PAGE>
PART II - OTHER INFORMATION
ITEM 4. Submission of Matters to a Vote of Security Holders
The Company's annual meeting was held on June 17, 1997. Each of the
Company's current five directors was re-elected. Also at the annual meeting a
proposal to increase the number of shares reserved for issuance under the
Company's 1994 Stock Option Plan from 250,000 shares to 500,000 shares was
approved by a vote of 1,229,240 For, 237,061 Against, and 19,200 Abstentions.
ITEM 6. Exhibits and Reports on Form 8-K
The Company filed one report on Form 8-K during the Quarter ended July 13,
1997, which report was dated July 9, 1997. The Form 8-K reported under item 2
(Acquisition and Disposition of Assets) the purchase of certain assets of eight
Kenny Rogers Roaster restaurants. Financial information as required under Item 7
of Form 8-K was not available at the time of filing and will be included as an
amendment to Form 8-K.
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 thereunto duly authorized.
CLUCKCORP INTERNATIONAL, INC.
Date: August 27, 1997 By: /s/ William J. Gallagher
- ------------------------ ----------------------------
William J. Gallagher,
Chairman of the Board and
Chief Executive Officer
(Duly Authorized Signatory)
Date: August 27, 1997 By: /s/ Joseph Fazzone
- ------------------------ ----------------------------
Chief Financial Officer
(Duly Authorized Signatory)
13
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from Form 10-Q
for period ended July 13, 1997.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-28-1997
<PERIOD-END> JUL-17-1997
<CASH> 2,890,514
<SECURITIES> 0
<RECEIVABLES> 1,677,317
<ALLOWANCES> 0
<INVENTORY> 15,750
<CURRENT-ASSETS> 2,912,521
<PP&E> 2,009,324
<DEPRECIATION> 181,131
<TOTAL-ASSETS> 6,775,820
<CURRENT-LIABILITIES> 736,880
<BONDS> 0
0
515,000
<COMMON> 23,660
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 5,830,734
<SALES> 468,394
<TOTAL-REVENUES> 669,370
<CGS> 272,431
<TOTAL-COSTS> 707,693
<OTHER-EXPENSES> 94,013
<LOSS-PROVISION> 286,023
<INTEREST-EXPENSE> 3,336
<INCOME-PRETAX> (898,492)
<INCOME-TAX> 0
<INCOME-CONTINUING> (898,492)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (898,492)
<EPS-PRIMARY> (.39)
<EPS-DILUTED> (.39)
</TABLE>
