Elmer's is reporting net income of $182,000 or 10 cents per fully diluted share on record revenues of $5.8 million for its fiscal third quarter ended Jan. 8, 2001. During the third quarter of 2000, the company generated net income of $250,000, or 13 cents per fully diluted share on revenues of $5.1 million.

For the 40 weeks ended Jan. 8, Elmer's earned a record $770,000, or 41 cents per fully diluted share, on record revenues of $18.5 million. These results compare to net income of $735,000, or $.39 per fully diluted share, on revenues of $17.2 million for the first 40 weeks of the previous fiscal year.

In addition to experiencing a 5% increase in same-store Elmer's sales, the company opened the first new Elmer's restaurant in six years and acquired the Mitzel's American Kitchen chain in the Puget Sound area of Washington. The company says the new Elmer's and Mitzel's restaurants are expected to generate over $9 million in annual revenues. The expansion will "position us as a regional powerhouse in the family-dining segment," says Elmer's.

The Company expensed significant costs associated with its expansion in the third quarter. It recorded over $100,000 in restaurant opening/closing expenses in costs relating to opening of the new Springfield, Oregon Elmer's restaurant and the closing of the Mitzel's restaurant located adjacent to the Tacoma Elmer's.

On the upside, the new Springfield Elmer's had the company's second highest sales total in December, its first month of operation. As well, since closing the Tacoma Mitzel's unit, the adjacent Elmer's restaurant has seen sales increase over 20%.

Elmer's says it will consolidate the Seattle-based Mitzel's administrative offices with its Portland headquarter offices during its fourth fiscal quarter. The Company owns and operates 11 Elmer's restaurants, five Mitzel's restaurants, six Ashley's Cafe's, four Richard Deli and Pubs, and franchises 19 Elmer's restaurants in six western states.

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Elmer's Restaurants Continues to Profit, Expand Through Mitzel's Acquisition

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