Flanigan's Reports on Damage and Business Interruption Caused by Hurricane Wilma

Date : 11/10/2005 @ 4:15PM
Source : PR Newswire
Stock : Flanigans Enterprises, (BDL)
Quote : 2.966  -1.604 (-35.10%) @ 6:23PM
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Flanigan's Reports on Damage and Business Interruption Caused by Hurricane Wilma

FORT LAUDERDALE, Fla., Nov. 10 /PRNewswire-FirstCall/ -- Flanigan's Enterprises, Inc. (AMEX:BDL), owners and operators of the "Flanigan's Seafood Bar and Grill" restaurants and "Big Daddy's" retail liquor stores, today reported on damage and business interruption caused by Hurricane Wilma.

The corporate office of the Company was the only location to suffer significant structural damage, including the loss of its roof. Contents of the corporate office sustained water damage. Structural repairs, including the installation of a new roof, are being completed and management expects the corporate offices to be back in full operation by the end of the week. The Company's books and records, including data systems, are all intact.

Most locations owned and/or operated by the Company, including franchises, sustained minimal damage, but all locations lost electric power for varying periods of time. With few exceptions, the majority of damages consisted of minimal roof damage, lost mansard shingles or tiles, awnings, signage and landscaping.

By October 26, 2005, the second day after Hurricane Wilma, all Company- owned retail liquor stores were open for business notwithstanding the loss of electric power. All franchised retail package liquor stores were open for business by October 29, 2005. As of the date hereof, electric power has been restored to all retail package stores. Of the six (6) Company-owned restaurants, two (2) were re-opened by October 28, 2005, three (3) restaurants were re-opened by November 4, 2005, while the sixth (6th) Company-owned restaurant is scheduled to re-open today. Of the six (6) joint venture restaurants, with the exception of the restaurant located in Surfside, Florida, which re-opened on November 3, 2005, all joint venture restaurants were re-opened by October 29, 2005. Of the seven (7) franchises, with the exception of the franchised restaurant in Fort Lauderdale, Florida, which re- opened on November 4, 2005, all franchised restaurants were re-opened by October 31, 2005.

The Company maintains standard and customary property insurance coverage, as well as coverage for business interruption. These coverages are subject to certain exclusions related to damages caused by windstorm. The Company intends to submit a claim for any and all damages that it concludes are not excluded and otherwise covered by its insurance. At this point, the Company cannot predict the extent to which its damages and business interruption loss of revenue will ultimately be covered by insurance.

The Company does not believe that Hurricane Wilma will have a material adverse affect upon retail package revenues for the current fiscal quarter, but has not yet determined what effect Hurricane Wilma will have upon restaurant food and bar revenues for the same period.

DATASOURCE: Flanigan's Enterprises, Inc.

CONTACT: James G. Flanigan, Chairman of the Board, Flanigan's

Enterprises, Inc., +1-954-377-1961

Web site: http://www.flanigans.net/

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