The Spectra Group of Great Restaurants Inc.
TSX : SPA
TSX : SPA.NV.A

The Spectra Group of Great Restaurants Inc.

May 23, 2006 17:26 ET

The Spectra Group of Great Restaurants Inc.: Fourth Quarter Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 23, 2006) - The Spectra Group of Great Restaurants Inc. (TSX:SPA)(TSX:SPA.NV.A) announces its financial results for the Fourth Quarter ended April 2, 2006 and for the fifty-three weeks ended April 2, 2006. For the fifty-three week period ended April 2, 2006 Earnings Before Interest, Income Taxes, Depreciation and Amortization (EBITDA) from continuing operations was $2,190,000 ($0.28 per share) compared to $2,203,000 ($0.30 per share) in the prior year. Earnings from continuing operations were $243,000 ($0.03 per share) compared to $263,000 ($0.04 per share) in the prior year.

For the thirteen weeks ended April 2, 2006 EBITDA from continuing operations were $217,000 ($0.03 per share) compared to $282,000 ($0.04 per share) in 2005. Earnings (Loss) from continuing operations for the thirteen weeks was $(116,000) ($(0.02) per share) compared to $(30,000) ($(0.00) per share) in 2005.

In March 2006, Spectra decided to discontinue its operations in the United States. The Company is actively seeking a buyer for the Yankee Grill and Roaster operation in Renton, Washington and the Yankee Grill and Roaster in Ballard, Washington was closed on April 3, 2006. This decision has necessitated the write down of the Ballard assets and closure costs and the characterization of both the Yankee Grill's as discontinued operations in our financial statements.



Summary of Financial Results ($000's except per share amounts)

13 Weeks 12 Weeks 53 Weeks 52 Weeks
Ended: Ended: Ended: Ended:

Apr. 2/06 Mar. 27/05 Apr. 2/06 Mar. 27/05

Total sales from
continuing operations 8,331 7,249 37,815 35,274
--------- ---------- --------- ----------
--------- ---------- --------- ----------
Earnings from continuing
operations before
interest, taxes, and
amortization 217 282 2,190 2,203
--------- ---------- --------- ----------
--------- ---------- --------- ----------
EBITDA per share $ 0.03 $ 0.04 $ 0.28 $ 0.30
--------- ---------- --------- ----------
--------- ---------- --------- ----------
Earnings (loss) from
continuing operations (116) (30) 243 263

Loss from discontinued
operations, net of
income taxes (1,155) (275) (1,316) (431)
--------- ---------- --------- ----------
Net earnings (loss) (1,271) (305) (1,073) (168)
--------- ---------- --------- ----------
--------- ---------- --------- ----------
Earnings (loss) per
share from continuing
operations $ (0.02)$ (0.00)$ 0.03 $ 0.04

Earnings (loss) per share $ (0.16)$ (0.04)$ (0.14)$ (0.02)

Weighted average shares
outstanding 7,807 7,307 7,707 7,307


The Spectra Group of Great Restaurants is a multi-concept restaurant group currently operating in British Columbia and Washington State. Headquartered in Vancouver, Spectra has a system total of 22 restaurants and 86 express locations, including the Bread Garden, the Boathouse, Red Door, Yankee Grill and Roaster, and, under license from Brinker International, Romano's Macaroni Grill.

Spectra's shares trade on the Toronto Stock Exchange under the symbols "SPA" and "SPA.NV.A".

ON BEHALF OF THE BOARD OF DIRECTORS:

PETER J. BONNER, Chief Executive Officer


The Toronto Stock Exchange has neither approved nor disapproved the form or content of this release.

Contact Information

  • The Spectra Group of Great Restaurants Inc.
    Richard C. Benmore
    Chief Financial Officer
    (604) 714-6500
    (604) 714-6540 (FAX)
    or
    The Spectra Group of Great Restaurants Inc.
    General Investor Information
    (604) 714-6584