Naugles Reports 2nd-Quarter Net Earnings of $1.8 Million

Naugles Inc., the Orange-based fast-food chain, reported net earnings of $1.8 million for its fiscal 1987 second quarter, compared with a year-earlier loss of $1.3 million for the same period. The bulk of the earnings came from the company’s 110 Kentucky Fried Chicken restaurants.

Revenues for the period ended Jan. 15 fell 1.6% to $43.8 million from $44.5 million in the fiscal 1986 second quarter.

From the net earnings, the company paid a cumulative preferred dividend of $1.7 million, leaving net income of $101,000 available to common shareholders.

For the first half of its fiscal 1987, Naugles earned $1.27 million, compared with a year-earlier loss of $1.2 million. Revenue for the period of $99.8 million was down 3.1% from the prior year’s $103 million.

Naugles paid $2.1 million in cumulative preferred dividends in the first half, leaving a net loss of $2.3 million available to holders of the company’s common shares.

A company official said that most of the second-quarter profit came from the Kentucky Fried Chicken outlets that Naugles obtained in November from Collins Foods International Inc. as part of a merger plan. Los Angeles-based Collins--a major Kentucky Fried Chicken franchise operator--is in the process of acquiring the 8% of Naugles that it doesn’t already own.

The Kentucky Fried Chicken restaurants operated by Naugles reported quarterly pretax profits of $3.3 million, up 22% from the $2.7 million posted last year, said Christopher R. Thomas, vice president of finance.

The 171 Naugles restaurants had pretax income of $343,000 in the second quarter, compared with a $2.6 million operating loss a year earlier.