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Kentucky Fried Chicken (Bermuda) Limited Releases Interim Report For 31st July 2003
"Earnings for the first six months ended 31st July 2003 amounted to $65,559 compared to $60,565 in the first half of last year, an increase of 8.2%. The increase in earnings is due to the combination of a $17,195 or 3.85% increase in sales and better management control of operating costs.
Our new management team, including Iris Kehler (who joined us in March 2003 as Operations Manager) is working hard to improve the competitive position of the Company and to increase sales and profits. Their hard work has already resulted in an upturn in sales and earnings for the Company despite an increase of $26,012 or 1% in franchise fees this year compared with last year plus increases in the cost of energy and staff (including payroll tax, pension and health insurance) which are $9,517 and $25,772 higher respectively in the first six months of this year compared with the same period last year.
On 15th May 2003 we paid a dividend of $0.10 per share to shareholders of record 30th April 2003. At the Directors Meeting held on 26th August 2003, a further dividend of $0.10 per share was declared payable on 15th October to shareholders of record 30th September 2003.
In our Annual Report to Shareholders issued in May 2002, we stated that it was our intention to continue to buy back shares of the Company for cancellation to the extent we have surplus funds available - with the view to reducing the shares outstanding to a more acceptable level. During the year ended 31st January 2003, the Company repurchased 300 of its own shares at an average price of $5 reducing shares outstanding to 597,700 (16,931 shares were repurchased by the Company in the preceding year). We have not purchased any additional shares of the Company since the end of the fiscal year.
At 31st July 2003 cash resources amounted to $798,230 compared with $672,936 last year at this time and total liabilities amounted to $276,603 compared with liabilities of $302,856 at this time a year ago.
We continue to make improvements in the facilities with the view to increased efficiencies and as a result incurred maintenance costs of $13,263 in the first six months for this year while investing a further $51,091 in leasehold improvements and equipment. We anticipate a significant increase in capital expenditure later this year and early next year in connection with the refurbishment of the dining area and improvement of the layout of the facilities."
Signed by:
Donald P. Lines
Chairman