Star Buffet Inc. (STRZ, Financial) filed Quarterly Report for the period ended 2010-05-17.
Star Buffet Inc. has a market cap of $5.8 million; its shares were traded at around $1.81 with and P/S ratio of 0.1.
On February 22, 2010 Vistar Corporation (āVistarā) in the Superior Court of the State of Arizona filed a lawsuit against the Company for the failure of the Company to pay $1.3 million in food invoices. The Company believes that Vistar overcharged the Company per the contract between the two companies. The Company has an amount of $1.0 million reserved in accounts payable on May 17, 2010. The Company has reached a legal settlement with Vistar requiring payments of approximately $1,000,000 over the next nine months. The Company reduced costs by $185,000 and paid approximately $115,000 in the first quarter of fiscal 2011.
Total revenues decreased approximately $8.6 million or 30.2% from $28.2 million in the 16 weeks ended May 18, 2009 to $19.6 million in the 16 weeks ended May 17, 2010. The decrease in revenues was primarily attributable to 16 closed stores resulting in a sales decline of approximately $6.1 million and sales declines of approximately $2.7 million in comparable same store sales. The decline in sales was partially offset by approximately a $400,000 increase in sales from three new stores or stores only opened for a portion of the first quarter of last year.
Other income is primarily from legal settlements of $120,000 in the 16-week period ended May 17, 2010. The legal settlements included $85,000 for the Utah Department of Transportation and $35,000 for credit cards. Rental income was $13,000 for one property leased for the entire 16-week period ended May 17, 2010. Rental income was $11,000 for two properties leased for the entire 16-week period ended May 18, 2009.
As of May 17, 2010, the Company had $921,000 in cash. Cash and cash equivalents increased by $28,000 during the 16-weeks ended May 17, 2010. The net working capital deficit was $(7,314,000) and $(7,889,000) at May 17, 2010 and January 25, 2010, respectively. The Company spent approximately $245,000 on capital expenditures in the 16-weeks ending May 17, 2010.
During fiscal 2008, the Company borrowed approximately $1,400,000 from Mr. Robert E. Wheaton, a principal shareholder, officer and director of the Company. This loan dated June 15, 2007 is subordinated to the obligation to Wells Fargo Bank, N.A. and bears interest at 8.5%. In June, 2008, the Company borrowed an additional $592,000 from Mr. Wheaton under the same terms. This resulted in an increase in the subordinated note balance from $1,400,000 to $1,992,000, the balance as of May 17, 2010 and May 18, 2009. The Company expensed $52,000 to Mr. Wheaton for interest during the first quarter of fiscal 2010 and fiscal 2009. The Company owes Mr. Wheaton $91,000 and $0 for interest as of May 17, 2010 and May 18, 2009, respectively. The principal balance and any unpaid interest are due and payable in full on June 5, 2012. The Company used the funds borrowed from Mr. Wheaton for working capital requirements. The Company owes Mr. Wheaton approximately $109,000 as of May 17, 2010 and January 25, 2010 for business expense reimbursements.
Read the The complete Report
Star Buffet Inc. has a market cap of $5.8 million; its shares were traded at around $1.81 with and P/S ratio of 0.1.
Highlight of Business Operations:
Consolidated net income for the 16-week period ended May 17, 2010 decreased $750,000 to $104,000 or $0.03 per diluted share as compared with net income of $854,000 or $0.27 per diluted share for the comparable prior year period. The decrease in net income is due to a decrease in income from operations of approximately $1.1 million primarily from higher food and labor costs offset by lower occupancy costs and higher other income. Total revenues decreased approximately $8.6 million or 30.2% from $28.2 million in the 16 weeks ended May 18, 2009 to $19.6 million in the 16 weeks ended May 17, 2010. The decrease in revenues was primarily attributable to 16 closed stores resulting in a sales decline of approximately $6.1 million and sales declines of approximately $2.7 million in comparable same store sales. The decline in sales was partially offset by approximately a $400,000 increase in sales from three new stores or stores only opened for a portion of the first quarter of last year.On February 22, 2010 Vistar Corporation (āVistarā) in the Superior Court of the State of Arizona filed a lawsuit against the Company for the failure of the Company to pay $1.3 million in food invoices. The Company believes that Vistar overcharged the Company per the contract between the two companies. The Company has an amount of $1.0 million reserved in accounts payable on May 17, 2010. The Company has reached a legal settlement with Vistar requiring payments of approximately $1,000,000 over the next nine months. The Company reduced costs by $185,000 and paid approximately $115,000 in the first quarter of fiscal 2011.
Total revenues decreased approximately $8.6 million or 30.2% from $28.2 million in the 16 weeks ended May 18, 2009 to $19.6 million in the 16 weeks ended May 17, 2010. The decrease in revenues was primarily attributable to 16 closed stores resulting in a sales decline of approximately $6.1 million and sales declines of approximately $2.7 million in comparable same store sales. The decline in sales was partially offset by approximately a $400,000 increase in sales from three new stores or stores only opened for a portion of the first quarter of last year.
Other income is primarily from legal settlements of $120,000 in the 16-week period ended May 17, 2010. The legal settlements included $85,000 for the Utah Department of Transportation and $35,000 for credit cards. Rental income was $13,000 for one property leased for the entire 16-week period ended May 17, 2010. Rental income was $11,000 for two properties leased for the entire 16-week period ended May 18, 2009.
As of May 17, 2010, the Company had $921,000 in cash. Cash and cash equivalents increased by $28,000 during the 16-weeks ended May 17, 2010. The net working capital deficit was $(7,314,000) and $(7,889,000) at May 17, 2010 and January 25, 2010, respectively. The Company spent approximately $245,000 on capital expenditures in the 16-weeks ending May 17, 2010.
During fiscal 2008, the Company borrowed approximately $1,400,000 from Mr. Robert E. Wheaton, a principal shareholder, officer and director of the Company. This loan dated June 15, 2007 is subordinated to the obligation to Wells Fargo Bank, N.A. and bears interest at 8.5%. In June, 2008, the Company borrowed an additional $592,000 from Mr. Wheaton under the same terms. This resulted in an increase in the subordinated note balance from $1,400,000 to $1,992,000, the balance as of May 17, 2010 and May 18, 2009. The Company expensed $52,000 to Mr. Wheaton for interest during the first quarter of fiscal 2010 and fiscal 2009. The Company owes Mr. Wheaton $91,000 and $0 for interest as of May 17, 2010 and May 18, 2009, respectively. The principal balance and any unpaid interest are due and payable in full on June 5, 2012. The Company used the funds borrowed from Mr. Wheaton for working capital requirements. The Company owes Mr. Wheaton approximately $109,000 as of May 17, 2010 and January 25, 2010 for business expense reimbursements.
Read the The complete Report
