iDine Rewards Network Inc. released its financial results for the third quarter ended September 30, 2002.
For the three-month period ended September 30, 2002, total operating revenue amounted to $22.2 million, an increase of 61.1% compared with $13.8 million in the same three-month period a year earlier. Gross dining sales for the quarter amounted to a record $81.3 million, representing an increase of 70.8% over the corresponding prior year period’s dining sales of $47.6 million and a 24.3% increase over the $65.4 million reported in the previous quarter. Dining margins as a percentage of gross dining sales increased to 25.9% for the current quarter compared to 25.1% in last year’s quarter.
In the current three-month period, the Company recorded net income before taxes of $5.5 million versus net income before taxes of $1.0 million in the year ago period and $3.9 million in the three months ended June 30, 2002. Net income for the three months ended September 30, 2002 was $4.0 million or 16 cents per share based on fully diluted weighted average outstanding common shares of 24.6 million. Included in the operating results for the current quarter was an estimated net 4 cent per share charge for severance related to the former President and Chief Executive Officer. Net income for the corresponding three-month period ended September 30, 2001 was $945 thousand or 4 cents per share on fully diluted weighted average outstanding common shares of 16.1 million. For the prior quarter ended June 30, 2002, the Company reported $7.5 million of net income or 31 cents per diluted share which reflected an unusual tax benefit amounting to $3.6 million, or 16 cents per share, associated with the reversal of a deferred tax valuation allowance.
Commenting on the quarter, George S. Wiedemann, the newly elected President and Chief Executive Officer, said, “We are pleased to be able to report our seventh consecutive profitable quarter. This past three-month period demonstrated continued solid growth in virtually all of our fundamental metrics, active members, number of dines, number of participating restaurants, top line revenue growth and of course, net income. Being ahead of plan, given the weakness in the current economy, puts us in a good position to continue to pursue our growth strategy in the coming quarters.” For the nine-month period ended September 30, 2002, total operating revenue amounted to approximately $57.3 million, an increase of 38.3% compared with $41.4 million in the same nine-month period a year earlier. Gross dining sales for the period amounted to a record $203.6 million, representing an increase of 39.4% over the corresponding prior year period’s dining sales of $146.1 million. Dining margins as a percentage of gross dining sales increased to 26.2% from 24.4% in the year ago period.
For the nine-month period ended September 30, 2002, the Company recorded net income of $14.6 million or 62 cents per share based on fully diluted average outstanding common shares of 23.4 million. The nine-month results reflect both the tax benefit and the charge referred to above. Net income for the comparable nine-month period ended September 30, 2001 was $2.2 million or 8 cents per share on fully diluted weighted average outstanding common shares of 16.2 million.
Based on the strength of the year to date performance, iDine’s management is today raising its guidance for the fiscal year ending December 31, 2002 to a range of $.78 to $.83 cents fully diluted EPS.
iDine Rewards Network Inc., based in Miami, Florida, offers its members a variety of dining savings and rewards programs at more than 9,000 restaurants throughout the United States via means of a registered credit card platform. The Company currently has 14.5 million credit cards registered through 11 million enrolled accounts. Dining incentives are offered through the Company’s dining programs, either branded under the name iDine or provided through co-branded and private label partnerships, such as airline frequent flyer programs, club memberships or other affinity organizations. iDine Reward Network’s common stock trades on the American Stock Exchange (AMEX) and alongside its Series A Preferred Stock on the Philadelphia Stock Exchange (PHLX).
For more details on iDine’s 3Q/02 performance visit CardData ([www.carddata.com][1]).
[1]: http://www.carddata.com
