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8-K - FORM 8-K - Real Mex Restaurants, Inc. | c21514e8vk.htm |
EXHIBIT 99.1
Contact:
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Rick Van Warner 407.628.3104 |
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rick@parquetgroup.com |
FOR IMMEDIATE RELEASE
Real Mex Announces 2nd Quarter Results
CYPRESS, CA, August 15, 2011 Real Mex Restaurants, Inc. (the Company) today announced results
for the second quarter of 2011. Comparable store sales were virtually flat at (0.2%) compared to
the same quarter of 2010, representing an improvement of 140 basis points from the first quarter of
2011. Operating income, excluding certain non-cash charges related to goodwill and intangible
assets, was $3.0 million, compared to $6.8 million in the second quarter of 2010. Net loss,
excluding the non-cash charges, was $4.1 million compared to $0.8 million in the prior year
quarter.
As previously announced, we are actively working with all parties within our capital structure to
restructure our corporate capital requirements, said Real Mex Chairman & CEO David Goronkin. We
continue to generate meaningful cash flow from our restaurants and remain current with our
obligations. While this is a challenging process, it should ultimately lead to a strong foundation
for the future.
In late July, the Company reached an agreement with the lenders of its principal debt agreements to
amend and waive defaults under certain financial covenants for the quarter ended June 26, 2011.
Subsequent to reaching that agreement, the Company made a $9.2 million cash interest payment to the
holders of its Senior Secured Notes. In addition, the Company is working with its financial
advisors and sponsors to develop a comprehensive plan to restructure its balance sheet.
About Real Mex
Headquartered in Cypress, California, Real Mex Restaurants is the largest full-service, casual
dining Mexican restaurant chain operator in the United States with 177 company owned and operated
restaurants as well as 22 franchised restaurants. Our brands include El Torito Restaurants,
Acapulco Mexican Restaurants, Chevys Fresh Mex® Restaurants, Sinigual Restaurants, Las Brisas
Restaurant in Laguna Beach, and several regional restaurant concepts. In addition, our Real Mex
Foods division is a custom manufacturer of foodservice products specializing in soups, sauces,
salsas, starches and proteins in a modern USDA-certified facility as well as a provider of
broadline foodservice distribution to restaurants.
FORWARD-LOOKING STATEMENTS
This press release includes forward looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Forward looking statements are those that do not relate solely to historical fact. They
include, but are not limited to, any statement that may predict, forecast, indicate or imply future
results, performance, achievements or events. They may contain words such as believe,
anticipate, expect, estimate, intend, project, plan, will, should, may, or
could or words or phrases of similar meaning. These forward looking statements reflect our
current views with respect to future events and are based on assumptions and subject to risks and
uncertainties, including, but not limited to, economic, competitive, governmental and technological
factors outside of our control, that may cause actual results to differ materially from trends,
plans or expectations set forth in the forward looking statements. These risks and uncertainties
may include these factors and the risks and uncertainties described in our filings with the
Securities and Exchange Commission. All of the forward-looking statements made in this press
release are qualified by these cautionary statements and we cannot assure you that the actual
results or developments anticipated by our Company will be realized or, even if substantially
realized, that they will have the expected consequences to or effects on our Company or our
business or operations. In addition, these forward-looking statements present our estimates and
assumptions only as of the date of this press release. Except for our ongoing obligation to
disclose material information as required by federal securities laws, we do not intend to update
you concerning any future revisions to any forward looking statements to reflect events or
circumstances occurring after the date of this press release.
-END-