Chanticleer Holdings Reports Asset and Revenue Growth, Improvement in Gross Margins and Restaurant EBITDA for the Nine Months Ended September 30, 2013

Marketwired

CHARLOTTE, NC--(Marketwired - November 15, 2013) - Chanticleer Holdings, Inc. (HOTR) ("Chanticleer" or "the Company"), a franchisee of international Hooters® restaurants and a minority owner in the privately held parent company of the Hooters® brand, Hooters of America ("HOA"), and owner of American Roadside Burgers Inc ("ARB"), a Charlotte, N.C. based chain, announced its financial results for the three and nine months ended September 30, 2013.

Highlights Include:

  • On September 30, 2013, the Company completed our acquisition of 100% of American Roadside Burgers, Inc. ("ARB"). The Company issued 740,000 shares of its common stock and warrants to acquire 740,000 shares of common stock for $5.00 per share. In connection with the acquisition of ARB and the related management team, the Company acquired a strategic opportunity to participate in a high-growth space with an already established brand. The Company's plan is to continue to expand the American Roadside chain as opportunities occur, which has the potential to bring additional revenue and profits to the Company in the future. The acquisition provides the Company with advisory services from one of the nation's leading restaurant executives, Tom Lewison. The Company also hired Rich Adams, a 35 year food service veteran, as Chief Operating Officer.
  • Restaurant revenue for the third quarter 2013 decreased 7.6% to $1.6 million, compared with $1.7 million in the third quarter 2012. This decrease is primarily from a decrease in the South African ("SA") currency exchange rate to the U.S. dollar ("USD"); revenues measured in local currency increased 3.6%. Restaurant revenue for the nine months ended September 30, 2013 increased 1.5% to $4.9 million, compared with $4.8 million in the third quarter 2012. This increase occurred from having five Hooters locations operating for the full nine months of 2013, offset by the aforementioned exchange rate decline.
  • As of September 30, 2013, the Company had eleven restaurants (10 consolidated and one joint venture) compared with six restaurants (five consolidated and one joint venture) as of September 30, 2012.
  • Restaurant gross profit margins for the third quarter 2013 improved 5.3% to 63.5% compared with 58.2% in the same period a year ago. Restaurant gross profit margins for the nine months ended September 30, 2013 improved 4.0% to 62.2% compared with 58.2% in the third quarter 2012.
  • Same-store net sales for restaurants opened more than a year increased 3.6% and 5.3% in South Africa currency (Rands) for the three and nine months ended September 30, 2013, respectively compared with last year.
  • Restaurant EBITDA for the three months ended September 30, 2013 and 2012 was approximately $83,000 and $54,000, respectively, an increase of 53.7%. Restaurant EBITDA for the nine months ended September 30, 2013 and 2012 was $195,000 and $153,000, respectively, an increase of 27.5%. Our improved gross margins were offset by an increase in operating expenses, including professional fees and higher payroll costs.
  • Net loss attributable to Chanticleer Holdings, Inc. from continuing operations for the third quarter 2013 was $1.4 million or $0.38 per share, compared with $721,000 or $0.19 per share for the year-ago third quarter. Total net loss for the 2013 third quarter was $1.4 million or $0.38 per share, compared with $740,000 or $0.20 per share. The increase was primarily attributable to an increase in general and administrative expenses ("G&A") and interest expense.
  • Net loss attributable to Chanticleer Holdings, Inc. from continuing operations for the nine months ended September 30, 2013 was $2.8 million or $0.77 per share, compared with $2.2 million or $1.00 per share for the year-ago period. Total net loss for the nine months ended September 30, 2013 was $2.9 million or $0.77 per share, compared with $2.3 million or $1.06 per share. The increase was primarily attributable to an increase in G&A and interest expense.

Subsequent to September 30, 2013, the Company had significant announcements:

  • The Company assumed operating control of ARB on October 1, 2013. ARB is a five store burger chain currently operating 1 location in Smithtown, NY, 2 in Charlotte, NC, 1 in Columbia, SC and 1 in Greenville, SC.
  • On October 17, 2013, the Company raised $2,500,000 in a private placement, pursuant to which the Company sold an aggregate of 666,667 Units (the "Units") at a purchase price of $3.75 per Unit ("Unit Price"). Each Unit consists of (a) one (1) share of the Company's common stock, $0.001 par value per share (the "Common Stock") and (b) one (1) five (5) year warrant, exercisable after twelve (12) months, to purchase one (1) share of common stock at an initial exercise price of five dollars ($5.00) (the "Warrants").
  • On November 6, 2013, the Company finalized the acquisition of the Hooters Nottingham restaurant for it's previously announced purchase price of $3,150,000. On November 7, 2013, the Company took operating control of Hooters Nottingham .The restaurant will continue under it's current management team who have over 20 years combined experience at this restaurant.
  • On November 4, 2013, the Company entered into a Subscription Agreement with JF Restaurants, LLC ("JFR"), JF Franchising Systems, LLC ("JFFS") (collectively "Just Fresh"), and the Preferred Members (the "Members" or collectively, the "Sellers") for the purchase of a fifty one percent (51%) ownership interest in each entity. The total purchase price was $560,000 and the final closing is contingent upon the Members' conversion of all outstanding Member notes and loans into ownership interest, to be held no later than November 20, 2013. Just Fresh currently operates five restaurants in the Charlotte, North Carolina area that offer fresh-squeezed juices, gourmet coffee, fresh-baked goods and premium-quality, made-to-order sandwiches, salads and soups.
  • On November 7, 2013, the Company entered into a Subscription Agreement (the "Subscription Agreement") with three accredited investors (the "Investors"), pursuant to which the Company sold to the Investors an aggregate of 160,000 Units (the "Units") at a purchase price of $5.00 per Unit ("Unit Price"), closing a $800,000 private placement (the "Private Placement"). The aggregate purchase price we received from the sale of the Units was $800,000. Each Unit consists of (a) one (1) share of the Company's common stock, $0.001 par value per share (the "Common Stock") and (b) one (1) five (5) year warrant to purchase one (1) share of common stock. One half (80,000) of the available warrants are available at an initial exercise price of five dollars and fifty cents ($5.50), while the remaining half (80,000) of the warrants are available at an initial exercise price of seven dollars ($7.00) (the "Warrants").

Mike Pruitt, Chairman and CEO of Chanticleer, commented: "We are excited to add American Roadside Burgers and Hooters Nottingham to our portfolio of restaurant companies heading into the fourth quarter of 2013. Revenue growth, gross margin improvement and growth in restaurant EBITDA give us good momentum as we enter the fourth quarter. In November we closed our purchase of the existing Hooters restaurant in Nottingham, England, which has been profitable for some time. The purchase price was $3,150,000 and the current management team will remain to operate the restaurant. Going forward, we will continue to evaluate restaurant and other opportunities at home and abroad, as well as continue to focus on performance improvement in our existing operations."

Use of Non-GAAP Measures

Chanticleer Holdings, Inc. prepares its condensed consolidated financial statements in accordance with United States generally accepted accounting principles ("GAAP"). In addition to disclosing financial results prepared in accordance with GAAP, the company discloses information regarding EBITDA, which differs from the term EBITDA as it is commonly used. In addition to adjusting net income (loss) from continuing operations to exclude taxes, interest, and depreciation and amortization, EBITDA also excludes pre-opening costs for our restaurants, non-cash expenses for services, change in fair value of derivative liability and gain on extinguishment of debt. EBITDA is not a measure of performance defined in accordance with GAAP. However, EBITDA is used internally in planning and evaluating the company's operating performance. Accordingly, management believes that disclosure of this metric offers investors, bankers and other stakeholders an additional view of the company's operations that, when coupled with the GAAP results, provides a more complete understanding of the company's financial results.

EBITDA should not be considered as an alternative to net loss or to net cash used in operating activities as a measure of operating results or of liquidity. It may not be comparable to similarly titled measures used by other companies, and it excludes financial information that some may consider important in evaluating the company's performance. A reconciliation of GAAP net income (loss) to EBITDA is included in the accompanying financial schedules.

About Chanticleer Holdings, Inc.

Chanticleer Holdings (HOTR) is focused on expanding the Hooters® casual dining restaurant brand in international emerging markets and American Roadside Burgers Inc ("ARB"), a Charlotte, N.C. based chain. Chanticleer currently owns in whole or part of the exclusive franchise rights to develop and operate Hooters restaurants in South Africa, Hungary and parts of Brazil, and has joint ventured with the current Hooters franchisee in Australia, while evaluating several additional international opportunities. The Company currently owns and operates in whole or part of seven Hooters restaurants in its international franchise territories: Durban, Johannesburg, Cape Town and Emperor's Palace in South Africa; Campbelltown in Australia; Budapest in Hungary; and Nottingham in the United Kingdom. ARB, purchased by Chanticleer Holdings on October 1, 2013, has a total of 5 casual restaurants -- 1 location in Smithtown, N.Y., 2 locations in Charlotte, N.C., 1 location in Columbia, S.C., and the newest location is in Greenville, S.C

For further information, please visit www.chanticleerholdings.com
Facebook: www.Facebook.com/ChanticleerHOTR
Twitter: http://Twitter.com/ChanticleerHOTR

For further information on Hooters of America, visit www.Hooters.com
Facebook: www.Facebook.com/Hooters
Twitter: http://Twitter.com/Hooters

Safe Harbor/Risk Factors
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on expectations, forecasts, and assumptions by our management and involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially from those stated, including, without limitation:

  • Operating losses continuing for the foreseeable future; we may never be profitable;
  • Our business strategy includes operating a new line of business that is distinct and separate from our primary existing operations, which could be subject to additional business and operating risks;
  • Inherent risks in expansion of operations, including our ability to acquire additional territories, generate profits from new restaurants, find suitable sites and develop and construct locations in a timely and cost-effective way;
  • General risk factors affecting the restaurant industry, including current economic climate, costs of labor and food prices;
  • Intensive competition in our industry and competition with national, regional chains and independent restaurant operators;
  • Our rights to operate and franchise Hooters-branded restaurants are dependent on the Hooters' franchise agreements;
  • Our business depends on our relationship with Hooters;
  • We do not have full operational control over the businesses of our franchise partners;
  • Failure by Hooters to protect its intellectual property rights, including its brand image;
  • Our business has been adversely affected by declines in discretionary spending and may be affected by changes in consumer preferences;
  • Increases in costs, including food, labor and energy prices;
  • Our business and the growth of our Company is dependent on the skills and expertise of management and key personnel;
  • Constraints could effect our ability to maintain competitive cost structure, including, but not limited to labor constraints;
  • Work stoppages at our restaurants or supplier facilities or other interruptions of production;
  • Our food service business and the restaurant industry are subject to extensive government regulation;
  • We may be subject to significant foreign currency exchange controls in certain countries in which we operate;
  • Inherent risk in foreign operation;
  • We may not attain our target development goals and aggressive development could cannibalize existing sales;
  • Current conditions in the global financial markets and the distressed economy;
  • A decline in market share or failure to achieve growth;
  • Unusual or significant litigation, governmental investigations or adverse publicity, or otherwise;
  • Adverse effects on our operations resulting from the current class action litigation in which the Company is one of several defendants;
  • Adverse effects on our results from a decrease in or cessation or clawback of government incentives related to investments;
  • Adverse effects on our operations resulting from certain geo-political or other events.

Chanticleer cannot be certain that any expectation, forecast, or assumption made in preparing any forward-looking statements will prove accurate, or that any projection will be realized. It is to be expected that there may be differences between projected and actual results. The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its Web site or otherwise. We undertake no obligation to update the forward-looking statements provided to reflect events or circumstances that occur after the date on which they were made. Further information on our business, including important factors which could affect actual results are discussed in the Company's filings with the SEC, including its Annual Report on Form 10-K under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations."

   
Chanticleer Holdings, Inc. and Subsidiaries  
Condensed Consolidated Balance Sheets  
(Unaudited)  
   September 30,   December 31,  
   2013   2012  
ASSETS           
Current assets:           
  Cash  $213,229   $1,223,803  
  Restricted cash   3,000,000    -  
  Accounts receivable   156,235    161,073  
  Other receivable   159,666    85,473  
  Inventory   198,274    227,023  
  Due from related parties   116,305    117,899  
  Prepaid expenses   436,219    170,769  
  Assets of discontinued operations   51,804    44,335  
    TOTAL CURRENT ASSETS   4,331,732    2,030,375  
Property and equipment, net   5,047,122    2,316,146  
Goodwill   2,053,946    396,487  
Intangible assets, net   2,398,919    559,832  
Investments at fair value   12,062    56,949  
Other investments   1,970,796    2,116,915  
Deposits and other assets   213,437    169,727  
   TOTAL ASSETS  $16,028,014   $7,646,431  
            
LIABILITIES AND STOCKHOLDERS' EQUITY           
Current liabilities:           
  Line of credit and notes payable  $625,959   $236,110  
  Derivative liability   2,341,500    -  
  Accounts payable and accrued expenses   1,550,827    1,108,305  
  Advances from investors   575,000    -  
  Other current liabilities   105,453    361,586  
  Current maturities of capital leases payable   47,186    27,965  
  Deferred rent   19,561    10,825  
  Due to related parties   12,191    13,733  
  Liabilities of discontinued operations   9,881    14,328  
   TOTAL CURRENT LIABILITIES   5,287,558    1,772,852  
Capital leases, less current maturities   63,032    60,518  
Convertible note payable, net of debt discount of $2,833,333   166,667    -  
Deferred rent and occupancy liability   1,204,999    98,448  
Other liabilities   100,647    186,060  
   TOTAL LIABILITIES   6,822,903    2,117,878  
Commitments and contingencies           
            
Stockholders' equity:           
  Common stock: $0.0001 par value; authorized 20,000,000 shares; issued and outstanding 4,467,896 and 3,698,896 shares at September 30, 2013 and December 31, 2012, respectively   446    370  
  Additional paid in capital   21,501,399    14,898,423  
  Other comprehensive loss   (155,872 )  (181,741 )
  Accumulated deficit   (12,126,946 )  (9,258,697 )
  Non-controlling interest   (13,916 )  70,198  
   TOTAL STOCKHOLDERS' EQUITY   9,205,111    5,528,553  
   TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $16,028,014   $7,646,431  
                     
   
Chanticleer Holdings, Inc. and Subsidiaries  
Condensed Consolidated Statements of Operations  
(Unaudited)  
   For the Three Months Ended  
   September 30,  
   2013   2012  
Revenue:           
   Restaurant sales, net  $1,581,245   $1,710,632  
   Management fee income - non-affiliates   25,000    25,000  
    Total revenue   1,606,245    1,735,632  
Expenses:           
  Restaurant cost of sales   577,299    714,551  
  Restaurant operating expenses   920,630    943,618  
  Restaurant pre-opening expenses   7,337    125,947  
  General and administrative expenses   943,632    614,980  
  Depreciation and amortization   129,126    97,883  
   Total expenses   2,578,024    2,496,979  
Loss from operations   (971,779 )  (761,347 )
Other income (expense)           
   Equity in (losses) gains of investments   (13,131 )  33,412  
   Miscellaneous income   -    1,153  
   Change in fair value of derivative liability   (75,900 )  -  
   Interest expense   (383,595 )  (39,583 )
   Total other expense   (472,626 )  (5,018 )
Loss from continuing operations before income taxes   (1,444,405 )  (766,365 )
   Provision for income taxes   6,019    7,997  
Loss from continuing operations   (1,450,424 )  (774,362 )
   Loss from discontinued operations, net of taxes   (4,403 )  (18,913 )
Consolidated net loss   (1,454,827 )  (793,275 )
   Less: Net loss attributable to non-controlling interest   31,355    53,509  
Net loss attributable to Chanticleer Holdings, Inc.  $(1,423,472 ) $(739,766 )
            
Net loss attributable to Chanticleer Holdings, Inc.:           
   Loss from continuing operations  $(1,419,069 ) $(720,853 )
   Loss from discontinued operations   (4,403 )  (18,913 )
   $(1,423,472 ) $(739,766 )
Other comprehensive (loss) income:           
   Unrealized loss on available-for-sale securities (none applies to non-controlling interest)  $(7,922 ) $(26,404 )
   Foreign currency translation gain   15,841    46,511  
    Other comprehensive loss  $(1,415,553 ) $(719,659 )
Net loss per attributable to Chanticleer Holdings, Inc. per common share, basic and diluted:           
  Continuing operations attributable to common shareholders, basic and diluted  $(0.38 ) $(0.19 )
  Discontinued operations attributable to common shareholders, basic and diluted   (0.00 )  (0.01 )
   $(0.38 ) $(0.20 )
Weighted average shares outstanding, basic and diluted   3,704,526    3,698,896  
                 
   
Chanticleer Holdings, Inc. and Subsidiaries  
Condensed Consolidated Statements of Operations  
(Unaudited)  
   For the Nine Months Ended  
   September 30,  
   2013   2012  
Revenue:           
   Restaurant sales, net  $4,864,410   $4,794,250  
   Management fee income - non-affiliates   75,000    75,000  
    Total revenue   4,939,410    4,869,250  
Expenses:           
  Restaurant cost of sales   1,840,535    2,005,714  
  Restaurant operating expenses   2,833,035    2,636,240  
  Restaurant pre-opening expenses   17,538    190,167  
  General and administrative expenses   2,294,370    1,669,956  
  Depreciation and amortization   373,226    265,068  
   Total expenses   7,358,704    6,767,145  
Loss from operations   (2,419,294 )  (1,897,895 )
Other income (expense)           
  Equity in losses of investments   (46,184 )  (10,474 )
  Gain on extinguishment of debt   70,900    -  
  Miscellaneous income   3,785    1,153  
  Change in fair value of derivative liability   (75,900 )  -  
  Interest expense   (438,941 )  (432,795 )
   Total other expense   (486,340 )  (442,116 )
Loss from continuing operations before income taxes   (2,905,634 )  (2,340,011 )
   Provision for income taxes   27,216    7,997  
Loss from continuing operations   (2,932,850 )  (2,348,008 )
   Loss from discontinued operations, net of taxes   (19,513 )  (124,872 )
Consolidated net loss   (2,952,363 )  (2,472,880 )
   Less: Net loss attributable to non-controlling interest   84,114    185,711  
Net loss attributable to Chanticleer Holdings, Inc.  $(2,868,249 ) $(2,287,169 )
            
Net loss attributable to Chanticleer Holdings, Inc.:           
   Loss from continuing operations  $(2,848,736 ) $(2,162,297 )
   Loss from discontinued operations   (19,513 )  (124,872 )
   $(2,868,249 ) $(2,287,169 )
Other comprehensive (loss) income:           
   Unrealized loss on available-for-sale securities (none applies to non-controlling interest)  $(44,887 ) $(264,044 )
   Foreign currency translation gain   70,756    45,464  
    Other comprehensive loss  $(2,842,380 ) $(2,505,749 )
Net loss attributable to Chanticleer Holdings, Inc,. per common share, basic and diluted:           
  Continuing operations attributable to common shareholders, basic and diluted  $(0.77 ) $(1.00 )
  Discontinued operations attributable to common shareholders, basic and diluted   (0.01 ) $(0.06 )
   $(0.77 ) $(1.06 )
Weighted average shares outstanding, basic and diluted   3,701,804    2,153,148  
                 
   
Chanticleer Holdings, Inc. and Subsidiaries  
Condensed Consolidated Statements of Cash Flows  
(Unaudited)  
   Nine Months Ended  
   September 30,  
   2013   2012  
Cash flows from operating activities:           
  Net loss  $(2,932,850 ) $(2,348,008 )
  Less: net loss from discontinued operations   (19,513 )  (124,872 )
Net loss from continuing operations   (2,952,363 )  (2,472,880 )
  Adjustments to reconcile net loss to net cash used in operating activities:           
   Depreciation and amortization   373,226    265,068  
   Equity in losses of investments   46,184    10,474  
   Amortization of warrants   272,529    120,632  
   Common stock issued for services   124,720    25,606  
   Gain on debt extinguishment   (70,900 )  -  
   Amortization of debt discount   166,667    -  
   Interest expense   150,200    -  
   Change in fair value of derivative liablility   75,900    -  
   Decrease (increase) in accounts and other receivables   46,427    (87,586 )
   Increase in prepaid expenses and other assets   (108,942 )  (178,976 )
   Decrease (increase) in inventory   86,496    (75,289 )
   Increase in accounts payable and accrued expenses   105,314    477,250  
   Increase in deferred rent   14,670    17,315  
   Increase in income taxes payable   -    7,997  
   Repayment (advance) from related parties for working capital   52    (89,587 )
    Net cash used in operating activities from continuing operations   (1,669,820 )  (1,979,976 )
    Net cash used in operating activities from discontined operations   (11,917 )  (16,007 )
    Net cash used in operating activities   (1,681,737 )  (1,995,983 )
            
Cash flows from investing activities:           
  Proceeds from non-controlling interests   -    90,000  
  Repayments (purchases) of investments   98,434    (1,213,391 )
  Restricted cash   (3,000,000 )  -  
  Franchise costs   (75,000 )  (210,000 )
  Cash acquired from business combination   53,684    -  
  Purchase of property and equipment   (86,919 )  (1,169,191 )
    Net cash used in investing activities from continuing operations   (3,009,801 )  (2,502,582 )
    Net cash used in investing activities from discontinued operations   -    -  
    Net cash used in investing activities   (3,009,801 )  (2,502,582 )
            
         (Continued )
                 
   
Chanticleer Holdings, Inc. and Subsidiaries  
Condensed Consolidated Statements of Cash Flows, continued  
(Unaudited)  
   Nine Months Ended  
   September 30,  
   2013   2012  
            
Cash flows from financing activities:           
  Sale of Common Stock   -    7,051,464  
  Advances from investors   575,000    -  
  Loan proceeds, net   3,342,000    2,915,000  
  Decrease in other liabilities   (270,646 )  (32,313 )
  Loan and capital lease repayments   (36,821 )  (3,967,747 )
    Net cash provided by financing activities from continuing operations   3,609,533    5,966,404  
    Net cash (used in) provided by financing activities from discontinued operations   -    -  
    Net cash provided by financing activities   3,609,533    5,966,404  
  Effect of exchange rate changes on cash   71,431    45,466  
Net change in cash   (1,010,574 )  1,513,305  
Cash, beginning of period   1,223,803    165,129  
Cash, end of period  $213,229   $1,678,434  
            
Supplemental cash flow information:           
  Cash paid for interest and income taxes:           
   Interest  $43,920   $237,604  
   Income taxes   -    -  
            
Non-cash investing and financing activities:           
Convertible notes payable exchanged for common stock  $-   $1,907,238  
Purchase of equipment using capital leases   53,943    -  
Common stock units issued for Hoot limited partner units   -    986,651  
            
Common stock and warrants issued to acquire American Roadside Burgers, Inc. (ARB):       
  Current assets acquired  $274,211   $-  
  Property and equipment   2,948,102    -  
  Goodwill   1,653,016    -  
  Trade name/trademark   1,784,443    -  
  Deposits and other assets   98,035    -  
  Liabilities assumed   (1,490,288 )  -  
  Common stock and warrants issued   (5,321,203 )  -  
                   
                         
Reconciliation of net loss from continuing operations to EBITDA                 
Unaudited                 
Three months ended September 30, 2013:  Restaurants only          
   South Africa   Hungary   Management   Totals  
GAAP net loss from continuing operations  $(34,923 ) $(28,815 ) $(1,386,686 ) $(1,450,424 )
  Interest expense   5,617    -    377,978    383,595  
  Change in fair value of derivative liablility   -    -    75,900    75,900  
  Non-cash expenses related to services   -    -    303,650    303,650  
  Pre-opening expenses   7,337    -    -    7,337  
  Depreciation and amortization   96,150    31,891    1,085    129,126  
  Income taxes   6,019    -    -    6,019  
EBITDA  $80,200   $3,076   $(628,073 ) $(544,797 )
   Total Restaurants EBITDA       $83,276            
                      
Three months ended September 30, 2012:                 
   South Africa   Hungary   Management   Totals  
GAAP net loss from continuing operations  $(66,829 ) $(120,424 ) $(587,109 ) $(774,362 )
  Interest expense   11,486    -    28,097    39,583  
  Non-cash expenses related to services             64,769    64,769  
  Pre-opening costs   (537 )  126,484    -    125,947  
  Depreciation and amortization   85,241    10,198    2,444    97,883  
  Income taxes   7,997    -    -    7,997  
EBITDA  $37,358   $16,258   $(491,799 ) $(438,183 )
   Total Restaurants EBITDA       $53,616            
                      
Nine months ended September 30, 2013:  Restaurants only          
   South Africa   Hungary   Management   Totals  
GAAP net loss from continuing operations  $(71,602 ) $(104,600 ) $(2,756,648 ) $(2,932,850 )
  Interest expense   28,107    -    410,834    438,941  
  Change in fair value of derivative liablility             75,900    75,900  
  Non-cash expenses related to services and warrants            397,249    397,249  
  Pre-opening expenses   17,538    -    -    17,538  
  Gain on debt extinguishment   (70,900 )            (70,900 )
  Depreciation and amortization   281,103    87,763    4,360    373,226  
  Income taxes   27,216    -    -    27,216  
EBITDA  $211,462   $(16,837 ) $(1,868,305 ) $(1,673,680 )
   Total Restaurants EBITDA       $194,625            
                      
Nine months ended September 30, 2012:                 
   South Africa   Hungary   Management   Totals  
GAAP net loss from continuing operations  $(194,905 ) $(145,424 ) $(2,007,679 ) $(2,348,008 )
  Interest expense   37,515    -    395,280    432,795  
  Non-cash expenses related to services             146,238    146,238  
  Pre-opening costs   38,683    151,484    -    190,167  
  Depreciation and amortization   247,901    10,198    6,969    265,068  
  Income taxes   7,997    -    -    7,997  
EBITDA  $137,191   $16,258   $(1,459,192 ) $(1,305,743 )
   Total Restaurants EBITDA       $153,449            
                                 
Contact:


Chanticleer Holdings, Inc.
Mike Pruitt
Chairman/CEO
Phone: 704.366.5122 x 1
mp@chanticleerholdings.com

Eric Lederer
CFO
Phone: 704.366.5736
elederer@chanticleerholdings.com
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