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KFC (Bermuda) Releases Chairman's Report
"Net income for the year ended 31st January 2003 amounted to $160,174 compared with $290,469 in the year ended 31st January 2002. Sales in the year ended 31st January 2003 were lower than those for year ended 31st January 2002 by only $5,889. Sales for the first half of the year decreased by $123,319 compared to those in the same period in the previous year. Due to the hard work and diligence of the new General Manager, Frank Suess, coupled with small price increases on certain food items, sales for the second half of the year increased by $117,430 compared to same period in the previous year. Operating expenses increased by $103,999 from previous year, mainly due to significant increases in repairs and maintenance and salary and wage costs: hence the decrease in net income reported.
On 15th April 2002 we paid a dividend of $0.10 per share to shareholders of record 5th April 2002. Another dividend of $0.10 per share was paid on 15th October 2002 to shareholders of record 30th September 2002. During the year, the Company repurchased 300 of its own shares, at an average price of $5 reducing shares outstanding to 597,700. It is our intention to continue to repurchase shares at prices acceptable to us to reduce the shares outstanding to a more acceptable level.
During the year, we performed significant repairs and maintenance work to both the interior and exterior of the building at a cost of $51,123, bringing total repairs and maintenance cost to $156,252 compared to $77,706 in the previous year. Further capital expenditure is anticipated in the refurbishment of the dining area and improvement of the shop layout at the end of this fiscal year in order to facilitate efficient service.
On behalf of the Board I would like to pay tribute to all our staff for their hard work. I would particularly like to thank Frank Suess who joined as General Manager in June 2002 and Tracy Robinson who have worked hard to improve sales and to upgrade our facilities and operations. I would also like to express our appreciation to Graham Redford (our marketing consultant) for his help and advice.
We are pleased to welcome to our management team Ms. Iris Kehler, who has extensive experience and knowledge of KFC operations, as our new Operations Manager. Ms. Kehler has worked with KFC operations in Canada, Jamaica and Bermuda and has also been heavily involved with staff training in these countries.
We look forward to the 2004 fiscal year with continued optimism and hope that the steps we continue to take to improve our operations and to generate increased sales and profits will be successful.
In closing, I wish to thank my fellow Executive Directors, Crayton Greene, Susan Wilson and Bill Thomson for their contribution and assistance during the past year."
Signed By:
Donald P. Lines
Chairman