Salt Lake-based JB's Restaurants Inc. Tuesday reported a net loss of $1.18 million or 25 cents per share for its fourth fiscal quarter ended Sept. 26, up from a loss of $2.40 million or 49 cents per share for the same period a year ago.
Net income for the full fiscal year was $3.75 million or 66 cents per share, up from a net loss of of $2.40 million or 49 cents per share for the 1993 fiscal year.A JB's spokesman said net income for the 1994 fiscal year included a gain on the sale of 1.05 million shares of HomeTown Buffet Inc. stock of $8.8 million or $1.55 per share. The gain was partially offset by charges of $2.5 million or 43 cents per share for property dispositions and other reasons.
Fourth-quarter revenues were $28.5 million, up 6.0 percent over the same quarter last year.
For the fiscal year, revenues increased 0.5 percent to $115.4 million.
JB's cited an increase in the number of HomeTown Buffet restaurants in operation - up from six last year to 14 at the end of fiscal '94 - for the increase. One new HomeTown Buffet restaurant opened in the fourth quarter.
Same store JB's Restaurant sales declined 2.6 percent in the fourth quarter '94 and 3.2 percent for the full year.
Last June, the company converted its first JB's Restaurant to a 1950s-themed Galaxy Diner with a second Galaxy Diner conversion completed last month. The third JB's Restaurant to be converted to a Galaxy Diner is under construction, with its opening set for later this month.
David E. Pertl, chief financial officer, attributed the fiscal '94 operating loss to "continued softness" in the JB's Restaurants business.
"Although disappointed in these financial results," said Pertl, "the company continued to make significant progress in strengthening its balance sheet including the sale of nonstrategic assets, including the HomeTown Buffet Inc. stock, and the completion of a $5.2 million preferred stock offering with an affiliate of Alex. Brown & Sons Inc."
Pertl said the capital gained from the offering will be used to remodel some JB's Restaurants, convert others to Galaxy Diners and build additional HomeTown Buffet restaurants - some four or five are planned for opening in fiscal 1995.
JB's operates 87 and franchises 19 JB's family-style restaurants, operates two Galaxy Diner restaurants with a third JB's Restaurant conversion under construction and operates 14 franchised HomeTown Buffet restaurants in nine Western states.