Welcome!

.NET Authors: Lori MacVittie, Yeshim Deniz, Ivan Antsipau, Liz McMillan, Michael Bushong

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
Software AG helps organizations transform into Digital Enterprises, so they can differentiate from competitors and better engage customers, partners and employees. Using the Software AG Suite, companies can close the gap between business and IT to create digital systems of differentiation that drive front-line agility. We offer four on-ramps to the Digital Enterprise: alignment through collaborative process analysis; transformation through portfolio management; agility through process automation and integration; and visibility through intelligent business operations and big data.
There will be 50 billion Internet connected devices by 2020. Today, every manufacturer has a propriety protocol and an app. How do we securely integrate these "things" into our lives and businesses in a way that we can easily control and manage? Even better, how do we integrate these "things" so that they control and manage each other so our lives become more convenient or our businesses become more profitable and/or safe? We have heard that the best interface is no interface. In his session at Internet of @ThingsExpo, Chris Matthieu, Co-Founder & CTO at Octoblu, Inc., will discuss how these devices generate enough data to learn our behaviors and simplify/improve our lives. What if we could connect everything to everything? I'm not only talking about connecting things to things but also systems, cloud services, and people. Add in a little machine learning and artificial intelligence and now we have something interesting...
Last week, while in San Francisco, I used the Uber app and service four times. All four experiences were great, although one of the drivers stopped for 30 seconds and then left as I was walking up to the car. He must have realized I was a blogger. None the less, the next car was just a minute away and I suffered no pain. In this article, my colleague, Ved Sen, Global Head, Advisory Services Social, Mobile and Sensors at Cognizant shares his experiences and insights.
We are reaching the end of the beginning with WebRTC and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will want to use their existing identities, but these will have credentials already that are (hopefully) irreversibly encoded. In his session at Internet of @ThingsExpo, Peter Dunkley, Technical Director at Acision, will look at how this identity problem can be solved and discuss ways to use existing web identities for real-time communication.
From telemedicine to smart cars, digital homes and industrial monitoring, the explosive growth of IoT has created exciting new business opportunities for real time calls and messaging. In his session at Internet of @ThingsExpo, Ivelin Ivanov, CEO and Co-Founder of Telestax, will share some of the new revenue sources that IoT created for Restcomm – the open source telephony platform from Telestax. Ivelin Ivanov is a technology entrepreneur who founded Mobicents, an Open Source VoIP Platform, to help create, deploy, and manage applications integrating voice, video and data. He is the co-founder of TeleStax, an Open Source Cloud Communications company that helps the shift from legacy IN/SS7 telco networks to IP-based cloud comms. An early investor in multiple start-ups, he still finds time to code for his companies and contribute to open source projects.
Can call centers hang up the phones for good? Intuitive Solutions did. WebRTC enabled this contact center provider to eliminate antiquated telephony and desktop phone infrastructure with a pure web-based solution, allowing them to expand beyond brick-and-mortar confines to a home-based agent model. It also ensured scalability and better service for customers, including MUY! Companies, one of the country's largest franchise restaurant companies with 232 Pizza Hut locations. This is one example of WebRTC adoption today, but the potential is limitless when powered by IoT. Attendees will learn real-world benefits of WebRTC and explore future possibilities, as WebRTC and IoT intersect to improve customer service.
The Internet of Things (IoT) promises to create new business models as significant as those that were inspired by the Internet and the smartphone 20 and 10 years ago. What business, social and practical implications will this phenomenon bring? That's the subject of "Monetizing the Internet of Things: Perspectives from the Front Lines," an e-book released today and available free of charge from Aria Systems, the leading innovator in recurring revenue management.
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges.
There’s Big Data, then there’s really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. In her session at 6th Big Data Expo®, Hannah Smalltree, Director at Treasure Data, to discuss how IoT, Big Data and deployments are processing massive data volumes from wearables, utilities and other machines.
All major researchers estimate there will be tens of billions devices – computers, smartphones, tablets, and sensors – connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be!
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at Internet of @ThingsExpo, Erik Lagerway, Co-founder of Hookflash, will walk through the shifting landscape of traditional telephone and voice services to the modern P2P RTC era of OTT cloud assisted services.
While great strides have been made relative to the video aspects of remote collaboration, audio technology has basically stagnated. Typically all audio is mixed to a single monaural stream and emanates from a single point, such as a speakerphone or a speaker associated with a video monitor. This leads to confusion and lack of understanding among participants especially regarding who is actually speaking. Spatial teleconferencing introduces the concept of acoustic spatial separation between conference participants in three dimensional space. This has been shown to significantly improve comprehension and conference efficiency.
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, will discuss single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example to explain some of these concepts including when to use different storage models.
SYS-CON Events announced today that Gridstore™, the leader in software-defined storage (SDS) purpose-built for Windows Servers and Hyper-V, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Gridstore™ is the leader in software-defined storage purpose built for virtualization that is designed to accelerate applications in virtualized environments. Using its patented Server-Side Virtual Controller™ Technology (SVCT) to eliminate the I/O blender effect and accelerate applications Gridstore delivers vmOptimized™ Storage that self-optimizes to each application or VM across both virtual and physical environments. Leveraging a grid architecture, Gridstore delivers the first end-to-end storage QoS to ensure the most important App or VM performance is never compromised. The storage grid, that uses Gridstore’s performance optimized nodes or capacity optimized nodes, starts with as few a...
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace. These technological reforms have not only changed computers and smartphones, but are also changing the data processing model for all information devices. In particular, in the area known as M2M (Machine-To-Machine), there are great expectations that information with a new type of value can be produced using a variety of devices and sensors saving/sharing data via the network and through large-scale cloud-type data processing. This consortium believes that attaching a huge number of devic...
Innodisk is a service-driven provider of industrial embedded flash and DRAM storage products and technologies, with a focus on the enterprise, industrial, aerospace, and defense industries. Innodisk is dedicated to serving their customers and business partners. Quality is vitally important when it comes to industrial embedded flash and DRAM storage products. That’s why Innodisk manufactures all of their products in their own purpose-built memory production facility. In fact, they designed and built their production center to maximize manufacturing efficiency and guarantee the highest quality of our products.
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. Over the summer Gartner released its much anticipated annual Hype Cycle report and the big news is that Internet of Things has now replaced Big Data as the most hyped technology. Indeed, we're hearing more and more about this fascinating new technological paradigm. Every other IT news item seems to be about IoT and its implications on the future of digital business.
Can call centers hang up the phones for good? Intuitive Solutions did. WebRTC enabled this contact center provider to eliminate antiquated telephony and desktop phone infrastructure with a pure web-based solution, allowing them to expand beyond brick-and-mortar confines to a home-based agent model. Download Slide Deck: ▸ Here
BSQUARE is a global leader of embedded software solutions. We enable smart connected systems at the device level and beyond that millions use every day and provide actionable data solutions for the growing Internet of Things (IoT) market. We empower our world-class customers with our products, services and solutions to achieve innovation and success. For more information, visit www.bsquare.com.
With the iCloud scandal seemingly in its past, Apple announced new iPhones, updates to iPad and MacBook as well as news on OSX Yosemite. Although consumers will have to wait to get their hands on some of that new stuff, what they can get is the latest release of iOS 8 that Apple made available for most in-market iPhones and iPads. Originally announced at WWDC (Apple’s annual developers conference) in June, iOS 8 seems to spearhead Apple’s newfound focus upon greater integration of their products into everyday tasks, cross-platform mobility and self-monitoring. Before you update your device, here is a look at some of the new features and things you may want to consider from a mobile security perspective.