Elmer's Restaurants Expands, Profits

PORTLAND, OR-Elmer’s Restaurants Inc. is reporting this week a record annual net income and revenue for its fiscal year, which ended on April 2. The publicly traded owner, operator and franchiser of Elmer’s restaurants says it generated profits of $956,000 on record revenue of $25.9 million. Compared to its previous fiscal year, the results represent a 1.7% increase in profits on a 16.7% increase in revenue.

Elmer’s added eight new units to its books in during its fiscal year, including a five-restaurant Mitzel’s American Kitchen chain located in Washington State. The company’s owns and operates 12 Elmer’s restaurants and franchises another 19 in six western states. The company also owns 10 delicatessen-style restaurants in Oregon, and has two more Elmer’s locations under construction.

For its fourth quarter ended April 2, Elmer’s turned a $186,000 profit on revenues of $7.4 million. The results are down from the same period last year, when the company reported net income of $205,000 on revenues of $4.9 million. Basic earnings per share were off two cents from the year-earlier period.

The two new Elmer’s will be located in Oregon, along the Interstate 5 corridor. One is the recently acquired Sandpiper Restaurant in Roseburg, OR, which is under going conversion into the Elmer’s format and is scheduled to open July 2. The second location is a franchised-owned Elmer’s under construction in Woodburn, adjacent the Factory Outlet store complex. It is expected to open late fall.

Elmer’s says it has refinanced its term debt and subordinated debt through GE Capital. Elmer’s CEO William Service says the GE facility includes financing for additional growth. The company will hold its annual shareholder meeting Wednesday, Aug. 8, 2001 at 2:00 p.m. at the Vintage Plaza Hotel located at 627 SW Washington at Broadway, in downtown Portland.

Elmer’s is 75% owned by insiders. The company’s share price stood at $4.75 Tuesday afternoon, about 40 cents higher than its 52-week low, which came in November. Its 52-week high of $6.43 came last August.