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Planet Hollywood out of orbit
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August 10, 1998: 10:16 a.m. ET
Restaurant-retail chain's 2Q loss misses forecast; had year-ago profit
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NEW YORK (CNNfn) - It could be a tough day for Planet Hollywood International Inc. The company reported its second-quarter and six-month earnings Monday morning and the results were well below expectations.
For the second quarter, Planet Hollywood posted a net loss of $1.4 million, or a penny per share, on revenue of $105.1 million.
The consensus analysts' estimate, as compiled by First Call, was for a profit of 7 cents per share.
The latest quarter's results pale in comparison with a year earlier, when the company earned $16.3 million, or 15 cents a share, on revenue of $121.9 million.
Income from operations in the quarter totaled $3.2 million compared with $23.2 million a year ago.
For the first six months of 1998, Planet Hollywood posted a net loss of $510,000 on revenue of $201.6 million.
This compares with earnings of $26.8 million, or 25 cents a share, on revenue of $223.5 million in the 1977 first half 1997.
Income from operations in the first half was $4.4 million, down from $36.4 million in the 1997 half.
"We are very disappointed with our year-to-date financial performance and have not yet seen a positive turn in our operational performance," said Chief Executive Officer Robert Earl.
But, he added, "We are continuing to implement ongoing initiatives . . . in our performance improvement plan. Our actions are expected to result in sequential improvements to our business over the next twelve months. Our short-term objective is to position the company for a resumption of profitable growth."
Comparable-store sales at units open more than 18 months fell 17 percent in the latest quarter. The comparable-store base consisted of 29 company-owned units in the second quarter of fiscal 1998.
During the quarter, the company, opened one Official All Star Cafe in Honolulu and two Planet Hollywood units in Baltimore and Montreal while franchisees opened two Planet Hollywood merchandise stores in anticipation of restaurant development in the future.
At the end of the second quarter, the company had 87 Planet Hollywood units in operation, including 48 company-owned units and 39 franchised units in 36 countries worldwide; Official All Star Cafe had 10 units in operation, including eight company-owned units and two franchised units in three countries.
Planet Hollywood, owned in part by movie stars such as Arnold Schwarzenegger and Bruce Willis, develops restaurants, retail, leisure, entertainment, lodging and gaming outlets that capitalize on the universal appeal of movies, sports, music and other leisure-time activities.
In early morning trade, shares in Planet Hollywood (PHL) were off 3/16 at 5-1/8. 
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