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Earnings Analysis: 
Grill Concepts Profit Nearly Quadruples
Author: 123jump.com Staff
123jump.com
Last Update: 1:17 PM EDT March 30 2007



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Global Payments fiscal third-quarter profit climbed 14% on higher revenue. Grill Concepts fourth-quarter profit nearly quadrupled, as the company reported a hefty income tax benefit. CKE Restaurants net income fell but revenue rose. Checkpoint Systems fourth-quarter profit nearly doubled from a year-ago period which included significant charges.

 
Global Payments Inc. (GPN: chart), electronic payment processing company, said it''s updated its profit and revenue forecasts for the fiscal year ending in May. The company said it now sees generating earnings in a range of $1.85 to $1.87 a share, excluding the impact of expensing stock options. Such expensing is expected to equate to 11 cents a share as far as net earnings for the current fiscal year go. Global Payments said it''s now anticipating full-year revenue in a range of $1.05 billion to $1.057 billion. Earnings for the third quarter increased to $34.3 million, or 42 cents per share, from $30.1 million, or 36 cents per share, in the year-ago period. Excluding stock option charges, earnings totaled 44 cents per share compared with 36 cents per share. Quarterly revenue rose 16% to $260.4 million versus $225.2 million in the prior year. The current quarter benefited from the addition of an Asia-Pacific joint venture with HSBC in July 2006. The Asia-Pacific segment had sales of $14.7 million in the quarter.

Grill Concepts Inc. (GRIL: chart), which operates The Grill on the Alley and Daily Grill restaurants, said its fourth-quarter net profit increased to $1.5 million, or 22 cents a share, compared with $0.3 million, or 5 cents per share after the restaurant operator booked an income tax benefit of $1.3 million. Sales climbed 22.1% to $23.4 million versus $19.2 million in the fourth quarter of 2005. The firm said same-store sales at its Grill on the Alley restaurants rose 15.1% in the quarter, with the Daily Grill restaurants posting a 5.9% rise.

CKE Restaurants (CKR: chart), restaurants operator, said its fourth-quarter net income dropped 93% to $10.3 million, or 15 cents per share, after recording a $126 million tax benefit in the year-ago quarter. Revenue climbed 3% to $359 million. Same-store Carl''s Jr. sales rose 2.8% and same-store Hardee''s sales rose 4.8%.

Checkpoint Systems Inc. (CKP: chart), maker of technology used for retail security and merchandise labeling, said that its fourth-quarter earnings increased to $18 million, or 45 cents per share, compared with $9.33 million, or 23 cents per share, a year earlier. Excluding tax costs and a capital lease settlement, the company''s earnings from continuing operations rose to $20.6 million, or 51 cents per share, from $11.3 million, or 28 cents per share, a year earlier. Revenue rose 12% to $216.3 million versus $192.5 million a year earlier. The company also outlined plans to restate its results for certain prior periods.
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