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AFC Enterprises Reports First Quarter 2005 Earnings.

Article Excerpt
ATLANTA, May 27 /PRNewswire-FirstCall/ -- AFC Enterprises, Inc. , the franchisor and operator of Popeyes(R) Chicken & Biscuits, today announced financial results for its first fiscal quarter that ended April 17, 2005. The Company will host a conference call and internet webcast with the investment community at 9:00 A.M. eastern time on May 31, 2005, to review the results of the first quarter of 2005 and to provide an update on the overall business. To access the Company's webcast, go to http://www.afce.com/ , select "Investor Information" and then select "Q1 2005 AFC Enterprises Earnings Conference Call."

First quarter of 2005 versus first quarter of 2004 continuing operations highlights include:

* System-wide sales increased 5.3 percent. * Total domestic system-wide same-store sales were up 2.8 percent. * Total revenues decreased 12.5 percent to $46.3 million in the first quarter of 2005. * Company-operated restaurant revenue declined by $8.5 million as a result of the sale of certain company-operated restaurants to franchisees, the closure of underperforming units and the non- consolidation of a franchisee previously consolidated under FIN 46R. * Franchise revenue increased by $1.7 million due to an increase in franchised units and same-store sales. * General and administrative expenses increased $0.8 million to $22.4 million. This increase was primarily due to higher personnel related costs associated with filling key senior management and franchise support positions at Popeyes, severance and stay incentives at corporate, and performance driven bonus and deferred compensation at Popeyes. * Consolidated operating loss was $17.7 million in the first quarter of 2005 compared to operating profit of $1.4 million in the first quarter of 2004. This decrease was impacted by a $21.1 million expense associated with the settlement of certain shareholder litigation and other expenses related to the collapsing of the corporate center. * Net income increased $138.3 million to $146.1 million, or $5.04 per diluted share, in 2005 compared to net income of $7.8 million, or net income of $0.28 per diluted share, in 2004. The increase was primarily due to the after-tax gain in discontinued operations of $156.9 million principally attributable to the sale of the Company's Church's Chicken brand. Financial Results

Total revenues decreased 12.5 percent to $46.3 million in the first quarter of 2005 versus $52.9 million in the first quarter of 2004. The $6.6 million decline in total revenues was principally due to an $8.5 million decrease in sales from company-operated restaurants. The $8.5 million decline in company-operated restaurant sales was comprised of a $5.2 million decrease as a result of the sale of certain company-operated units to franchisees...