Real Mex Restaurants, Inc. today announced results for the second quarter of 2011. Comparable store sales were virtually flat at (0.2%) compared to the same quarter of 2010, representing an improvement of 140 basis points from the first quarter of 2011. Operating income, excluding certain non-cash charges related to goodwill and intangible assets, was $3.0 million, compared to $6.8 million in the second quarter of 2010. Net loss, excluding the non-cash charges, was $4.1 million compared to $0.8 million in the prior year quarter.
“As previously announced, we are actively working with all parties within our capital structure to restructure our corporate capital requirements,” said Real Mex Chairman & CEO David Goronkin. “We continue to generate meaningful cash flow from our restaurants and remain current with our obligations. While this is a challenging process, it should ultimately lead to a strong foundation for the future.”
In late July, the Company reached an agreement with the lenders of its principal debt agreements to amend and waive defaults under certain financial covenants for the quarter ended June 26, 2011. Subsequent to reaching that agreement, the Company made a $9.2 million cash interest payment to the holders of its Senior Secured Notes. In addition, the Company is working with its financial advisors and sponsors to develop a comprehensive plan to restructure its balance sheet.
Headquartered in Cypress, California, Real Mex Restaurants is the largest full-service, casual dining Mexican restaurant chain operator in the United States with 177 company owned and operated restaurants as well as 22 franchised restaurants. Brands include El Torito Restaurants, Acapulco Mexican Restaurants, Chevys Fresh Mex Restaurants, Sinigual Restaurants, Las Brisas Restaurant in Laguna Beach, and several regional restaurant concepts. In addition, the Real Mex Foods division is a custom manufacturer of foodservice products specializing in soups, sauces, salsas, starches and proteins in a modern USDA-certified facility as well as a provider of broadline foodservice distribution to restaurants.