Roadhouse Grill Loses $12.8M in Nine Months

Nine-month revenue was down 2.9% to $119.1 million compared to $122.6 million. Diluted earnings per share showed a loss of $1.32 compared to a loss of $1.42 in 2001.

For the third quarter, however, Roadhouse was showing improvement with a net loss of only $1.6 million versus a net loss of $10.8 million in third quarter 2001. But revenue for the quarter was down 12.7% to $36.5 million, compared to $41.8 million a year ago.

Third-quarter diluted earnings per share showed a loss of 17 cents compared to a loss of $1.11 in same 2001 quarter. In January of this year, Roadhouse "generated positive cash flow and returned to profitability" for the first time, Ayman Sabi, the company's president/CEO, says in a prepared statement.

He says Roadhouse was in a financial bind in November and December last year and couldn't meet certain lease and debt payments. Three property owners forced Roadhouse into involuntary Chapter 11 bankruptcy status on Jan. 18 of this year. But Sabi says he was able to convince a U.S. Bankruptcy Court judge in Miami on March 12 to lift the bankruptcy cloud until he can work out his debt problems.

Despite the red ink, Sabi says in his statement he is "excited with the recent improvement in operational effectiveness" and is "confident that this positive trend will continue" for the balance of this year.

Roadhouse Grill has 31 locations in Florida and other restaurants in Alabama, Arkansas, Georgia, Louisiana, Mississippi, New York, North and South Carolina and Ohio. Sabi also opened a unit in Italy in the third quarter, joint venturing the project with Cremonini S.p.A.