Welcome!

Microsoft Cloud Authors: Elizabeth White, Mihai Corbuleac, Pat Romanski, David Bermingham, Steven Mandel

News Feed Item

Chanticleer Holdings Announces Third Quarter 2012 Financial Results

CHARLOTTE, NC--(Marketwire - December 21, 2012) -  Chanticleer Holdings, Inc. (NASDAQ: HOTR) ("Chanticleer Holdings" or the "Company"), a minority owner in the privately-held parent company of the Hooters® brand, Hooters of America ("HOA"), and a franchisee of international Hooters restaurants, announced today, its financial results for the third quarter ended September 30, 2012.

Third Quarter & Year-to-Date Highlights

  • Chanticleer reported revenues of $1.77 million for the third quarter as compared to ($5,726) in same period last year.
  • Chanticleer reported record revenues of $4.9 million for the first nine months of 2012, as compared to revenue of $468,417 in the same period last year.
  • Campbelltown, Australia became profitable, generating net income for the third quarter of $68,000, of which our share of profits is 49%.
  • Earnings per share loss decreased in the third quarter to a loss of $0.20 per share as compared to a loss of $0.40 per share in the year ago period.
  • Chanticleer opens its sixth international Hooters® restaurant in Budapest, Hungary.

Mike Pruitt, President and CEO of Chanticleer Holdings, commented, "We are pleased to report our third quarter financial results and expansion of our International Hooters® restaurants. Year to date, we have grown our number of operating restaurants by 100% to six as compared to three restaurants at 2011 year-end. During the year, we opened restaurants in Campbelltown, Australia; Emperor's Palace, South Africa; and Budapest, Hungary. We continue to execute on our plan to grow the Hooters brand in our exclusive international emerging markets." 

Third Quarter 2012 Results:

For the third quarter ended September 30, 2012, total revenue increased to $1.77 million, compared to total revenue of ($5,726) in the third quarter of 2011. This growth is attributable to gaining majority ownership in our first three South African restaurants on September 30, 2011, at which point we began consolidating our South African Hooters operations, effective October 1, 2011. This growth is also attributable to opening our Emperor's Palace, South Africa and Budapest, Hungary locations in 2012, where our Emperor's Palace continues to be a success and profitable. Also, The Company's Campbelltown, Australia location, where Chanticleer owns 49%, became profitable during the third quarter, generating $68,000 in net income. 

For the nine months ended September 30, 2012, total revenue increased to $4.9 million as compared to $468,417 in the same period last year, due to consolidating our South African operations, effective October 1, 2011 and opening our Emperor's Palace, South Africa and Budapest, Hungary locations in 2012.

The Company reported a net loss of $739,766 or $0.20 per share and a net loss of $495,756 or $0.40 per share during the three-month period ended September 30, 2012 and September 30, 2011, respectively. The increase in net loss is due to increased expenses associated with the consolidation of our South African restaurant operations, effective October of 2011 and our continued expansion of our international footprint, where during the third quarter, the Company incurred approximately $126,000 in one-time expenses related to opening the Hooters Budapest location. The Company closed the September Quarter with cash and cash equivalents of $1.7 million.

The independent investigation by the Company's Audit Committee is nearing completion. No other findings of misconduct have been identified that have not previously been publicly disclosed. However, the independent investigation did identify certain weaknesses in internal controls and the Company is in the process of implementing a remediation plan.

The Company is continuing to provide the NASDAQ Staff with all information requested in a timely manner. However, at this time we are not able to provide guidance as to when trading will resume. The Company intends to continue to inform investors of any material developments in a timely manner.

                Chanticleer Holdings, Inc. and Subsidiaries                 
              Condensed Consolidated Statements of Operations               
                                (Unaudited)                                 
                                                                            
                           For the three months       For the nine months   
                            ended September 30,       ended September 30,   
                             2012         2011         2012         2011    
                         -----------  -----------  ------------  ---------- 
Revenue:                                                                    
                                                                            
  Restaurant sales, net  $ 1,710,632  $         -  $  4,794,250  $        - 
  Management fee income                                                     
   - non-affiliates           25,000       25,000        75,000     466,667 
  Management fee income                                                     
   - affiliates               31,880      (30,726)       38,578       1,750 
                         -----------  -----------  ------------  ---------- 
      Total revenue        1,767,512       (5,726)    4,907,828     468,417 
Expenses:                                                                   
  Restaurant cost of                                                        
   sales                     714,551            -     2,005,714           - 
  Restaurant operating                                                      
   expenses                  943,618            -     2,636,240           - 
  Restaurant pre-opening                                                    
   expenses                  125,947            -       190,167           - 
  General and                                                               
   administrative                                                           
   expense                   666,300      277,934     1,833,933     762,159 
  Depreciation and                                                          
   amortization               97,883        2,512       265,068       7,573 
                         -----------  -----------  ------------  ---------- 
    Total expenses         2,548,299      280,446     6,931,122     769,732 
                         -----------  -----------  ------------  ---------- 
Loss from operations        (780,787)    (286,172)   (2,023,294)   (301,315)
Other income (expense)                                                      
  Equity in earnings                                                        
   (losses) of                                                              
   investments                33,412      (20,820)      (10,474)     (9,256)
  Realized gains from                                                       
   sales of investments            -            -             -      19,991 
  Miscellaneous income         1,680            -         1,680       5,016 
  Other than temporary                                                      
   decline in available-                                                    
   for-sale securities             -     (147,973)            -    (147,973)
  Interest expense           (39,583)     (41,190)     (432,795)    (63,876)
                         -----------  -----------  ------------  ---------- 
    Total other expense       (4,491)    (209,983)     (441,589)   (196,098)
                         -----------  -----------  ------------  ---------- 
Net loss before income                                                      
 taxes                      (785,278)    (496,155)   (2,464,883)   (497,413)
    Provision for income                                                    
     taxes                     7,997            -         7,997           - 
                         -----------  -----------  ------------  ---------- 
Net loss before non-                                                        
 controlling interest       (793,275)    (496,155)   (2,472,880)   (497,413)
    Non-controlling                                                         
     interest                 53,509          399       185,711       1,376 
                         -----------  -----------  ------------  ---------- 
Net loss                    (739,766)    (495,756)   (2,287,169)   (496,037)
Other comprehensive                                                         
 income (loss):                                                             
  Unrealized loss on                                                        
   available-for-sale                                                       
   securities (none                                                         
   applies to non-                                                          
   controlling interest)     (26,404)    (172,031)     (264,044)   (224,240)
  Foreign translation                                                       
   income                     46,511            -        45,464           - 
                         -----------  -----------  ------------  ---------- 
    Other comprehensive                                                     
     loss                $  (719,659) $  (667,787) $ (2,505,749) $ (720,277)
                         ===========  ===========  ============  ========== 
                                                                            
Net earnings (loss) per                                                     
 share, basic and                   )            )             )           )
 diluted                 $     (0.20  $     (0.40  $      (1.06  $    (0.43 
                         ===========  ===========  ============  ========== 
Weighted average shares                                                     
 outstanding               3,698,896    1,238,880     2,153,148   1,166,111 
                         ===========  ===========  ============  ========== 
                                                                            
                                                                            
                Chanticleer Holdings, Inc. and Subsidiaries                 
                   Condensed Consolidated Balance Sheets                    
                                                                            
                                            September 30,     December 31,  
                                                 2012             2011      
                                           ---------------  --------------- 
                   ASSETS                    (Unaudited)                    
Current assets:                                                             
  Cash and cash equivalents                $     1,694,721  $       165,129 
  Accounts receivable                              119,582          108,714 
  Other receivable                                 118,827           42,109 
  Inventories                                      180,362          105,073 
  Due from related parties                         149,708           76,591 
  Prepaid expenses                                 300,552          144,347 
                                           ---------------  --------------- 
      TOTAL CURRENT ASSETS                       2,563,752          641,963 
Property and equipment, net                      2,422,558        1,505,059 
Intangible assets, net                             933,192          721,571 
Investments at fair value                           54,309          318,353 
Other investments                                2,148,397        1,582,148 
Deposits and other assets                          130,244           29,605 
                                           ---------------  --------------- 
    TOTAL ASSETS                           $     8,252,452  $     4,798,699 
                                           ===============  =============== 
                                                                            
    LIABILITIES AND STOCKHOLDERS' EQUITY                                    
Current liabilities:                                                        
  Current maturities of long-term debt,                                     
   notes and convertible notes payable     $       238,026  $     2,796,855 
  Accounts payable and accrued expenses            821,916          478,005 
  Other current liabilities                        360,125          330,607 
  Current maturities of capital leases                                      
   payable                                          36,467           41,590 
  Deferred rent                                      8,030           43,225 
  Due to related parties                            13,733           30,204 
                                           ---------------  --------------- 
    TOTAL CURRENT LIABILITIES                    1,478,297        3,720,486 
Long-term debt, less current maturities                  -          236,109 
Capital leases payable, less current                                        
 maturities                                         67,545           85,853 
Deferred rent                                       89,672            7,162 
Other liabilities                                  201,490          263,321 
                                           ---------------  --------------- 
      TOTAL LIABILITIES                          1,837,004        4,312,931 
                                           ---------------  --------------- 
Commitments and contingencies (Note 13)                                     
                                                                            
Stockholders' equity:                                                       
  Common stock: $0.0001 par value;                                          
   authorized 200,000,000 shares; issued                                    
   3,698,896 and 1,506,061 shares; and                                      
   outstanding 3,698,896 and 1,249,446                                      
   shares at September 30, 2012 and                                         
   December 31, 2011, respectively                     370              151 
  Additional paid in capital                    14,849,855        6,459,656 
  Other comprehensive (loss) income               (167,930)          50,650 
  Non-controlling interest                         112,454          593,863 
  Accumulated deficit                           (8,379,301)      (6,092,132)
  Less treasury stock, 256,615 shares at                                    
   December 31, 2011                                     -         (526,420)
                                           ---------------  --------------- 
    Total stockholders' equity                   6,415,448          485,768 
                                           ---------------  --------------- 
      TOTAL LIABILITIES AND STOCKHOLDERS'                                   
       EQUITY                              $     8,252,452  $     4,798,699 
                                           ===============  =============== 
                                                                            
                                                                            

About Chanticleer Holdings, Inc.
Chanticleer Holdings is focused on expanding the Hooters® casual dining restaurant brand in international emerging markets. Chanticleer currently owns in whole or part of the exclusive franchise rights to develop and operate Hooters restaurants in South Africa, Hungary and parts of Brazil, and has joint ventured with the current Hooters franchisee in Australia, while evaluating several additional international opportunities. The Company currently owns and operates in whole or part of six Hooters restaurants in its international franchise territories: Durban, Johannesburg, Cape Town and Emperor's Palace in South Africa; Campbelltown in Australia; and Budapest in Hungary.

In 2011, Chanticleer and a group of noteworthy private equity investors, which included H.I.G. Capital, KarpReilly, LLC and Kelly Hall, president of Texas Wings Inc., the largest Hooters franchisee in the United States, acquired Hooters of America (HOA), a privately held company. Today, HOA is an operator and the franchisor of over 430 Hooters® restaurants in 28 countries. Chanticleer maintains a minority ownership stake in HOA and its CEO, Mike Pruitt, is also a member of HOA's Board of Directors. For further information, please visit www.chanticleerholdings.com or www.hooters.com and follow us on Twitter at @ChantHoldings or @Hooters.

Forward-Looking Statements:
Any statements that are not historical facts contained in this release are "forward-looking statements" as that term is defined under the Private Securities Litigation Reform Act of 1995 (PSLRA), which statements may be identified by words such as "expects," "plans," "projects," "will," "may," "anticipates," "believes," "should," "intends," "estimates," and other words of similar meaning. Many factors could cause our actual activities or results to differ materially from the activities and results anticipated in forward-looking statements. These factors include those described in the companies' filings with the Securities and Exchange Commission. The forward-looking statements contained in this press release speak only as of the date the statements were made, and the companies do not undertake any obligation to update forward-looking statements. We intend that all forward-looking statements be subject to the safe-harbor provisions of the PSLRA.     

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
In his session at @ThingsExpo, Chris Klein, CEO and Co-founder of Rachio, will discuss next generation communities that are using IoT to create more sustainable, intelligent communities. One example is Sterling Ranch, a 10,000 home development that – with the help of Siemens – will integrate IoT technology into the community to provide residents with energy and water savings as well as intelligent security. Everything from stop lights to sprinkler systems to building infrastructures will run ef...
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus inter...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
SYS-CON Events announced today that Ericsson has been named “Gold Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Ericsson is a world leader in the rapidly changing environment of communications technology – providing equipment, software and services to enable transformation through mobility. Some 40 percent of global mobile traffic runs through networks we have supplied. More than 1 billion subscribers around the world re...
You deployed your app with the Bluemix PaaS and it's gaining some serious traction, so it's time to make some tweaks. Did you design your application in a way that it can scale in the cloud? Were you even thinking about the cloud when you built the app? If not, chances are your app is going to break. Check out this webcast to learn various techniques for designing applications that will scale successfully in Bluemix, for the confidence you need to take your apps to the next level and beyond.
There is an ever-growing explosion of new devices that are connected to the Internet using “cloud” solutions. This rapid growth is creating a massive new demand for efficient access to data. And it’s not just about connecting to that data anymore. This new demand is bringing new issues and challenges and it is important for companies to scale for the coming growth. And with that scaling comes the need for greater security, gathering and data analysis, storage, connectivity and, of course, the...
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry's single source for the cloud. Fusion's advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including cloud...
Digital payments using wearable devices such as smart watches, fitness trackers, and payment wristbands are an increasing area of focus for industry participants, and consumer acceptance from early trials and deployments has encouraged some of the biggest names in technology and banking to continue their push to drive growth in this nascent market. Wearable payment systems may utilize near field communication (NFC), radio frequency identification (RFID), or quick response (QR) codes and barcodes...
The increasing popularity of the Internet of Things necessitates that our physical and cognitive relationship with wearable technology will change rapidly in the near future. This advent means logging has become a thing of the past. Before, it was on us to track our own data, but now that data is automatically available. What does this mean for mHealth and the "connected" body? In her session at @ThingsExpo, Lisa Calkins, CEO and co-founder of Amadeus Consulting, will discuss the impact of wea...
SYS-CON Events announced today that DatacenterDynamics has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY. DatacenterDynamics is a brand of DCD Group, a global B2B media and publishing company that develops products to help senior professionals in the world's most ICT dependent organizations make risk-based infrastructure and capacity decisions.
The IoT has the potential to create a renaissance of manufacturing in the US and elsewhere. In his session at 18th Cloud Expo, Florent Solt, CTO and chief architect of Netvibes, will discuss how the expected exponential increase in the amount of data that will be processed, transported, stored, and accessed means there will be a huge demand for smart technologies to deliver it. Florent Solt is the CTO and chief architect of Netvibes. Prior to joining Netvibes in 2007, he co-founded Rift Technol...
We’ve worked with dozens of early adopters across numerous industries and will debunk common misperceptions, which starts with understanding that many of the connected products we’ll use over the next 5 years are already products, they’re just not yet connected. With an IoT product, time-in-market provides much more essential feedback than ever before. Innovation comes from what you do with the data that the connected product provides in order to enhance the customer experience and optimize busi...
SYS-CON Events announced today that Stratoscale, the software company developing the next generation data center operating system, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Stratoscale is revolutionizing the data center with a zero-to-cloud-in-minutes solution. With Stratoscale’s hardware-agnostic, Software Defined Data Center (SDDC) solution to store everything, run anything and scale everywhere...
Angular 2 is a complete re-write of the popular framework AngularJS. Programming in Angular 2 is greatly simplified – now it's a component-based well-performing framework. This immersive one-day workshop at 18th Cloud Expo, led by Yakov Fain, a Java Champion and a co-founder of the IT consultancy Farata Systems and the product company SuranceBay, will provide you with everything you wanted to know about Angular 2.
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...