Chanticleer Holdings, Inc., 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 revised second quarter 2012 financial results for the three-month period ended June 30, 2012.
As a result of the completion of the financial review of the three-month period ended June 30, 2012, total revenues increased by approximately $41,000 to $1,727,821 and net loss increased by $110,235 to $843,616 as a result of higher cost of sales, accrual of additional payroll taxes, and an increase in other expenses. The Company reported a net loss per share of $0.56. The quarter over quarter increase in net loss per share is attributable to the increase in expenses and the one for two reverse split in the Company’s common stock, which became effective May 11, 2012. Cash and cash equivalents decreased by $104,589 to $3,568,416 due to the Company’s former South African subsidiaries’ CFO Mark Hezlett’s misappropriation of funds. The Company’s final financial results for the three-month period ended June 30, 2012 are included in its Form 10-Q/A filed today with SEC.
As previously stated by the Company, Mr. Hezlett has agreed to repay all of the misappropriated funds. Mr. Hezlett is abiding by his payment arrangement by making payments as scheduled. The Company expects to recover most of the funds by 2013 year-end.
Mike Pruitt, President and CEO of Chanticleer Holdings, commented, “We still expect to file a Form 10-Q for the three-month period ended September 30, 2012 with the SEC prior to year-end 2012. Once our third quarter results have been filed, we plan to update our shareholders with regards to our business and operational initiatives. We are also pleased our Emperor’s Palace location, during the second quarter, generated revenues of approximately $676,000 with gross margin of approximately 61% and generated net income of approximately $50,000.”
The Company is continuing to work with NASDAQ to provide the 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.
Let us hear your thoughts below:
