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PARIS. ROME. ATHENS TRAVELS JN GREECE BY FRENCH ARCHITECTS
fN
THE
19TH
AND 20TH CENTURIES
Co-PRODUCED BY THE MuswM OF FINE ARTS, HousmN , L'EcoLE NATIONAL£ SUPERIEURE DES BEAUX-ARTS AND L'EcoLE FRANCAISE o'ATHENES THE MusEuM OF FINE ARTS, HousmN
f UNE 30TH-5EPTEMBER
4TH,
1983
J"H£ ,<\R l/S"f/C CHA.LtL..;Gf_ TO P.UNT AN tnE.AL J.'C.t ON5Tl(UCllO,_ or 1HF G!ic....TGRFCK RUINS t'AtlV/llftl lHf INSF'lft.'t:nc !'•.'
ftlf/. riff Hf...o\.UTrrLJL vn..-1Y1N1.•S IN Tm:
155
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MJRX5 JN Tl-IC: fKHl8!Tlt>N llJ.'E
f-.XH/BfflON. 1 Alf<.f
Mii lllIT.CTl.IRM.. D~Ah'INGS C01,.1f'Lf,1t() HF.TWC.t-N DY
28
W:NNl'.H.S Of' THl l'/V:.51"/GIOUS fRJX [JC.
Kl'\L.E
1828 AND 19.37
ROMf,
AW,<\,llO!lJ
ANNUAUY HY L'Ect1LC. DfS RL-\U:\"-Al!:"l'S IN r ARIS.
THE. Musr::uM
of
FtNc. ARTS,
H0t1s10N,
SHow1,.,•c
MAK KS TH! TIRST O:HltJIT OF THC. ... [ fK1 EP'r/ONAL 1.0,n,u:s IN THC. UNJTlD ST161TIS, AND JS {01':CU/HfCNT W/rH A l<C.SUKGt:Nr
l!'af.H.CST IN B£Au>:-ARTS n ....ss1c1'"'1 aY PosT·MOl'lCRNl'T
THIS f.xH11mt0N MADt PussutLE DY GRA.'ITS nwM L1Nll£l K CoNSTRULTJ<1N CoRl'OK .....noN
_,,,,.,m
THC. NATIONAL ENnoWMC.NT ioK
nu
Ain~
23
ANNUAL REPORTS
Janis Koy, designer Suzy Lawton , writer E.O. Goldbeck, photographer Koy Design, Inc. (San Anton io}, design firm 1776, Inc., client
1776
1982 ~.perlonnance,perspecti\'e,
andpride--f.UoflhesefactorstoRelher madeupour)'earoll982. Butmostol
aU,1twasayearoffJftJ1J/t: peoplewho achie\·edaUtherrst.lnese"people'' arethe1776Team. 1776, lnc.hasgrownbe)'Ondits
-
BOARD OF DIRECTORS J. DaVKIBamberger D.CapweULawton
Cecil Schenker St.anleyKarotlun Carl Hays
sma.Ucompanybegiruungs,with l982 salesofS9.7mdlion.overS7.1million inl981.orapos1t1\'emcreaseof37i:i
CORPORATE OFFICE
Netincomebeforefederalmcomt
BruceAtUnger Vice President of Operations Jonl.mdskog
weswasahealthy$649,tKJU. This perfonnancetranslatestoeamingsper shareofS.35. 1982wasanexcep· tionallyrough)·earforbothconsumers and the restaurant industry. Hit'A'lth
thtcombtnedforcesofmflauon.reces· mn and dou~-digit unemployment. manycustomersradicaUychanged thetreat1ngoutpauems.Asaresult, therestaun.ntmdustryexperiencedits mostvolatileyearmtennsofstarts andraaures.1776 res1auran1shave provedlha1we'remfor thelongrun.
butwecouldn'tha\·edone1t 1111thout thesuperiorperfonnanceandenergy o<the450 + han:l-workmgandmot1· vatedf>tt/Pkthat makeupoorcompany. \\'etookagood,hardlookatoorsel\'esth1spast)'ear. 1beknowled~
andinsightv•egainedfromthatmside
lookh.a\'eeqmppedusforthel·hallenl(e arisingmthisnev.' aRCol1.UTipet1t10J1m therestaurantindusU')' Loda)'.AccordmK toPeterl>rucker.thetoughesttrans1tKll'I forabusinesstomake1sfrnmthesur-
\WalStal(etObrt'OmlnKafa1r-s11edbuS1ness. Weareread)·. We\·erefinedour
ownrest.aurantC'OllL'eptsmtuthree expans1orweadyoperatu1sthall'an
competeonanyturl: Mama':.. Mama's CafeandCappr's areread)'t11mm·e11ut.
D. CapweULawton
President
VicePreSldent
frank Federer VicePreSKient. Real Estate/Construction jacqueB1gky Otrectorof FoodandBeverage
Wehaveexaminedthebalancesheetsofl776. lnc.. asofJanuary2,l983andJan· uary 3. 1982. and the related statementsoflnCOO'IC. changes in stockholders' eqwty, and changes m financial position ror the years then ended. Our exammahons were mademaccordanceMthgenerallyacceptedauditmgstandardsand, accordmgly. includedsuchtestsoftheaccountmgrecordsandsuchotherauditmgprocedures asweconsiderednecessaryinthecu-cumstances. In ouropuUon, the financial statements referred to abo\'e preient fairly the finanoal posttionof1776.lnc.. atJanuary2, 1983andJanuary3,1982.andtheresultsof1ts operationsandthechangestnitsfinanaalpos1tionfor 1heyeanthenended.mconfomutywithgeneraUyacceptedaccountingpnnci9'esapp6edonaconsistentbasis.
b:.-N~
Rohen.Orr
Communication Arts November 1983
Cash
AccoonlSrecetvabie Jn,·entones Prepaid expenses
S 150.045
1$.560
115.121 168.362 66.ilJ TOTALCURRENTASSETS ~
PrepaidfederaJmo:>metaxes
OTHER ASSETS Othernoncurrenlnset.s PROPERTY. EQUIPMENT AND LEASEHOLD IMPROVEMENTS-No« B Land
Builduii
Leasehl:Mdunpro,·ements Equipmen1.. furniture and fixtures
MarchlS.1983
Director ofTra1111Jlg Kirsten Munson Director of Personnel CateSh.arb OtrtttorofMarketll'lj! Strategw:Planrung
AUUITORS ErnstandWhinney 1900frostBankTower
817.690 3,431.893 additionalcost1ocompleteSl . lSO.OOUl Year Ended January 2 January 3
Grosssales Lesscomplimenarysalesandd1scounts
$9,743,435 284.532
NETSALES
SanAntonio.1ex.as78205
ATIORNEYS Schenker. RosenheimandSchenker llOOOneRi\'erwalkPlace 700NorthSt.Mary'sStreet
Operaungexpenses: Salanes.p.iyroUtaxes.imdtnsurance
GROSS PROFIT
BANK FrostNallona!Bank PostOfficeBoxl600 SanAn1onio,Tex.as78lll6
CO RPORATE OFF ICES 1776. lnc. 5.anAntoruo.1Cx.as7MlllY
l'edrn1nSanAntunw1.\\e'dliketu
(512)8:l'l·l!575
~liroadwa)'
1.108524 1.43..l.4&1 1.4.J'l.219 4,249.583
~~
Costofsales
SanAntoruo.Tex.as7~
14,15-1
221:1.J;6
Construc:UOninprocess (esumated
9.4511.903 3.303.006 6.155.897 2.846. 128
Otheroperatmgexpenses
1.605.m n0.871 HSS,755 956.6l6
545.174 59,263 604,437
648.651 ·
673.8511
1.704,492
4.550.620
INCOME BEFORE INCOME TAXES Federal income taxes-Note F: Current Deferred
Net mc:ome per share of Common Stock (usangneragesharesoutstancbnRol l.251. 382andl.199.026for1982 andl981.respectl\'ely)-NoteE
$7, 123.845 270.891 6.1152.954 2.3Tl.824 4.4il0. IJO 1.988.846 1.212.989 3,201,1!35 1,278,295
TOTAL OPERATING EXPENSES OPERATING PROFIT Generalandadm1rustrat1veexpense Interest expense
Seenoteswfinancialstatements.
36
Janllal)-"l.
~ ASSETS CURRENT ASSETS
and Management Devek>pment
That'SJUStaponwXlofthe li76 lt!am1Xluurcm·er.t;ikenmfmnt ofJ\1ama's andJ\1ama's t:afe1XlSan
offeraspet.ialthank-yuutoE. O (~iklbet:k, whotookmitrethan1ust apw.:turt-.
BoardofOtr~on
1776.lnc. SanAntoruo, Texas
62,482
207.784 Zl.6..59
214.127
lJ0.443
NET INCOME $ 434.524
S 443.415
151.645
LIABILITIES AND STOCKHOLDERS' EQU!n' CURRENT LIABILITIES Aa:ountspayable Accrued expenses
S 356.675
220.662
Federalincometaxnpayabie
Currentporuonolklng-tenndebt-NoteB TOTALCURRENTLIABILITIES DEFERRED CREDITS Deferred federal income taxes
77.295 654.632 146.958
LONG-TERM DEBT-'essporuondassdied as
currentliabitity-NoteB STOCKHOLDERS' EQUITY Ccmmon Stock, no par. stated va!ue $. 125 per share:
Authonzed2,000,000shares-NoteE lssuedandoutstandulgl .263.318shares
andl ,213.488shares(or1982and 1981.respectJ\'ely Paid-mcapita.I
Retaaned earnings TOTAL STOCKHOLDERS' EQU!n'
Sttnotestolinanoalstatements.
157,914 305.534 1.786.398 2.249,846 $4.686.872
SlllDllllTSOfCMANGISllSTOOCHOlDlllS' IOUITY
UIHilS .. fUWKW. POSITION
Year Ended January2 January3
~
~
$434,524
443,415
qwnngoutlayolworkmgca~tal:
285.9n 62,482 782.9113 1.080.000
fordepreaat10nandamoruzauon f~ralU'ICometnes
TOTAL FROM OPERATIONS rov.'Ulgs topun:haseCommon tock !fl Stock mmon Stock on exerose of TO'll\L SOURCES
1andequ1pme11t: llMgthe)·ear ueddasposals
.,,
19-1.145
22.659 660.219 488.125 12.500
72.343 1.935.626
36.500 1, 197.344
1,858,057
1.101,327
I.~::) I .~::)
tn.nsferstocurrentma1unt1esof
~
TO'll\L APPLICATIONS
78,820 4.046 1,935,489
ll»CREASE IN WORKING CAPITAL Jat begummg of year ORK ING CAPITAL AT END OF YEAR
137 34.852 34,989
34,066 71!6 34,852
DMPONENTS OF lPITAL ease) in current assets.
•ralincometaxes
s
20,608 79,113 29,728 69.856 66,533
63.012 l,163.Z7
s
(19,395) 32,382 19.950 25,900
265.838
58,837
>•ble
150.193 !!6.650
metaxespayablot uonoflong-termdebt
(32,929)
62.514 17.024 (37,216)
ease)mcurrentbabibtJes.:
61 ,787 265,701 INCREASE IN WORKING CAPl'll\L S 137
naalstatemenLs.
~)
24.nt L_34.066
Common Stock
148.186
Balanceat0ecember29.l9d0 Exeraseof28.000stock J,500 opt10ns-NoteE Saleofwarranttopurchase Common Stock Net income 151,686 BalanceatJanuaryJ.1982 Exeraseof49,630stock 6,203 opoons-NoteE Sale of Common Stock 25 Net income $157,914 BalanceatJanuary2,1983
i'aid· ln Cap1tal 193.619
Retained EaminJ.::S 908.459
~ 36,500
12.500 239.119
443.415 1. 351.874
12.500 443.415 1.742.679
434.524 l,7!!6,398
72.343 JOO 434.524 S2.249.H46
66.140 275
$305,534
NOTE B-LONG-TERM DEBT long·tenndebtatJanuary2.1983andJanuary3.1982.consistedofthefollowing:
~~
1.:lSll.264
Seenotestofinanoalstatements.
MCnUTOFIWKJAl.Slll1MINTS NOTE A-ACCOUNTING POLICIES /nwntonts: lnventory1sstatedatthek>wero!cost(first·in. first-out method) ormarteL Pro(>ntJ, Equ¢mt"t and ltostlwld lm/mn.' trt1tnfs: Property. equipment and lcasehokt unprovements are earned on lhe basis of cost. Oepreaauonandamort1iat10narecalculatedonthebas1sofest1mateduseful bvesuSU1glhestraight-linemethod. Stod Optum Pia": Proceeds from the sale of stock ISllued under options are credited to Common Stock at staled value. and the excess of the option pnce over stated value IS credited to pakl-m caprtal There are no charges or credits to mcome 111connectionwiththeoptions. ThestockoptlOl'Lplanisofacontinuingnaturewhich hasbeenrenewedeachyearwithBoardapproval. /NCrmUTtnu: TheprovisionforincometaxesincludesdeferTedincometaxes relatmatOCOITl:>'Jltnidepreciauononfumitureandfixtures. equipment and lease· hoktimprovementsusingstalutoryratesandbvesforincometaxpurposesand usingthestraJght-hnemethodforfinancialpurposes. J"~tTaiCrtdit: The CorporatlOl'Laccounts foruweslment tax credit usmg th<llow-Woughmethod.
NotepayabletobankunderS2.000.000lineolcred1tdue Mayl.1984.atprime,collaleralizedbyrealproperty $1,21.X),OOO NotepayabletobankdueSeptemberl7, l986.atpnme pills lCJ. payable in monthly installmentsofSl.955 includmg mterest collateraltzed by equipment 63.732 NotepayabletoindJVldualdueMayl.1989.atl4CJ.interest 290,000 onlypayablemonthly,collaterabzedbyrealproperty Notepayabletocorporationforacquisitionofleasehokt dueJunel.1984,atlN,payableinquarterlyinstallments 100,0UO ofSl5,625plusinterest,unsecured NotepayabletoinsurancecompanydueFtbruan'28. 1982. atSIJ, payablemmonthlymstallmentsof $2,850includinginterest.unsecured Nott payable to SmaU Busmess Adnunistntioo due December8. 1996. at 14.507'l-. payableinmonthly installmentso!S833indudmgmterest.collaterahzed by real property
$510,0UO 76,278
$
2.4!S6
CurrentportlOl'L Thelineofcredithascertamrequirements11.'1thregardstofinaocialrat10S, stock ownerstup,andrestncuonondivldends. Princ:1pa.lmalurit;esforthenextfive}'earsconS1sto(thefollowintr. 1983 s 77.295 1986 17,701 1984 1.255.053 1987 2.528 1985 20,827
NOTE C-LEASES The Company leases certain of its restaunnts under operating leases which expire at various dates through June. 2006. Some of the leases con tam optlOl\S to renewforvarioostermsoffiveto ten)·ears.Totalrentalexpenseforoperatmg leases amounted to the following:
NOTED-RELATED PARTY TRANSACTIONS TheCorporationleasedarestaurantlocatlOl'Lfromoneolitsstockhoklersunder a ten·year lease agreement with minimum monthly rental of Sl,360 and contingent monthly rental in theamountofl'l- ofsalesinexcessof$350,00UannuaUy. Ori September4, 1981.theCorporationexercisedttsoptiontopurchasethisproperty forthepriceol l43.()(W). NOTE E-STOCK OPTION PLAN. WAR RANTS AND STOCK PLIT TheBoardofDirectorsfonnallyappro\'edastockoptionplanforkeyemplo)'ees and directors which became effective on No\'ember 22. 1977. The plan is of a con· tinuingnaturewtuchhasbeenrenewedeachyear1A1th8oardappr0\'al. At0ecember29, l980,opoons for40,000shares(atSl.2510SL325pershare. aggregatevalueS52,400)wereoutstanding,ofwtuch8.000wereexercisablebased uponthetennsofthestockoptionagreement. Dunngl981underthisplan. options for77,630sharesweregrantedonvanousdates. 28.000shareswereexernsed. and l6.000shareswerecanc:elled.Opoonsfor73,630shares(at$1.325to l.50per share.aggregatevalueSI09,045)wereoutstandingat January3, l982.ofwtuch25.UOO were exercisable based upon the tenns of the stock agreement. During 1982 under this plan.optionsfor84.836weregranledon\'anousdates.49,6JOshareswereexer· cised.and8,000shareswerecancelled.()ptionsfor100.836shares(at$1.50to$2.25 pershare,aggregatevahie 182.88l)wereoutstandmgatJanuary2, l983.ofwtUch 16,()(W) were exerosable based upon the tenns oC the stock opoon agreement. On June22. l981.theBoardofDirectorsformall)•appro\'edthesaleolwalT3nts to purchase 25.000shares of Common Stock forS12.500. The "'°'alT3nt holder is granted the right to purchase shares of Common Stock at $4.00 per share. The stock wamnt expires Marchl.1986,andmaybeexercisedatanytunepnortothatdate. OnMarch23. 1982.theBoardofDirectorsappro\·edatwo-for-ooestockspl11and increased theauthorizedsharesofthe Company from l.OU0.000to2,000.00U. All Common Stock and per share amounts have been restated 10 reflect this action. NOTE F- INCOME TAXES lnvestmenttaxcreditand1argetedjobtax Cred1ttotaled$64 ,986for1982and S63,334forl981.
Mtnimumrentals Contingent rentals Contingentrentalsaredetenmnedbyapercentageofsalesabo\·eabasele\·el. At January 2. 1983. the minimum rtntal commitments under aUoperalinjt leases with truual or remaining terms of more than one year are as follows: 1983 107,005 1984 108.205 1985 93.189 1986 79,079 1987 78.481 1988andthereafter 264,626 STJ0,585
lberestaurantindustry1sentennga newageofcompelition. one that v.iU leaveontytheumqueandinno\'ati\·e concepc.sinoperation.\lkknowwt're unique. Andwe'reconvruned toconstantinnovat»onandimprovement. Tne challenge1sexpansionofourconcepes. Our homt market. San Antonio, has beenaproVtngg:roundforthesuccessful definit100oCln6.lnc.'s threerestaurantconcepts:Mama's,Mama'sCafe. andCapp)' s. Ourfirstallemptatsuc· cttdi!lR in an outside market. Mama's 0
Cafe in Houston, l\asalsopro\·ena ,,_,,nner.\Ve\·eshownwecan compete successfullyandprofitabl)':we'reready nowtomultiplyouroutslde\·emures. lbeprospectofcompetitioninno waydefeatsourexpansiooofthelii6 conceptofquality foodservedinm· terestingeO\ironmentsb)'Strona. coopenti\·eTeams. lnste:Kl,wek>ok forward1ocompet1t100: it,,_,1llpro\'e what"'°•e'\'eknownallalonM. \Ve're strong.we'rehealthy.andu'f'arethe compe11oon!
MAMA'S I (Opened August 9. 19751 lbe1776revolutionandsuccessbeganin 1975v.ith lheopemngofMama's. Good. nutritiousfoodservedma com!ortable environmentatreasonahlepnces. GeneralManager.Charl;eEngles 9907 San Pedro. San Antonio, TX 78216 (512)349-2314 MAMA 'S II (Opened August 19. 19801 ThesecondMama'simprovedo"erthe original onlyindesignforadaptability. energyandcosteffJC1ency. General Manager. Andrew Guy moJ. H. 10, SanAmoruo. TX 782'l9 (512)349-9367 AVERY'S (Opened September JO. 19i6) A\•ery's operates under the Mama's menu andconcept.Locatedinthetus1oric Monte VistaareaofSanAnlocio. General Manager: Jamie Al.lain 2030 Malfl.. San Antonio. TX 78212 (512)733-9103
CAPPY'S (Ope"'° May 15. 1977) Cappy'ssmgularconcepto(gounnet·Sl)'le foodservedinsimpleandelegantsur· roundingsoperatesalsoasthe research andde\·elopmentrestaurantfor l776. GeneralManager.DeruseDugi 5011 Broadwa)', San Antoruo. TX 78209 (512)828-9669 MAMA'S CAFE I !Opened August 8. 19781 Mama's Hofbnuopenednextdoor to theorig\nalMama'sooSanPedro. ln 1982. we changed the name to Mama's Cafetosunplifyourconceptline. The cafetypifiesarusticTexas HiUCountry steakhouse in design. General Manager. Charles Mangan 9903SanPedro.SanAntonio. TX71!216 (5121342-3219 MAMA'S CAFE II (0penedJu1)•20. l981) Another Mama's Cafe. reminiscent of a 1940's gasstation.dinermdes1gn.The cafealsohousesthel7i6bakery. GeneralManager.Chadlirennan 2442Nacogdoches Road. SanAntonlO, TX78217 (512)826-8303 MAMA'S CAFE Ill (Opened March 2'i. 19821 Mama's Cafe (Westhelll'lerl in Houston is thefintcooceptweexpandedoutSKleSan Antonio. Patterned closely a(ter Mama's Cafe(ll)mSanAnton10.thecafel\as pr0\·en tobeab1gsuccess. General Manager: DarTyl Steadman fi019Westheimer. Houston. TX ii056 (713)266-8.514
37
2
3
124
Communication Arts November 1983
2
T WAS JOE DILLON
who introduced the Wild West to us. He had a little library made up of old numbers of The Union lack, Pluck and The Halfpenny Marvel. Every evening after school we met in his back garden and arranged Indian battles. He and his fat young brother Leo, the idler, held the loft of the stable while we tried to carry it by storm; or we fought a pitched battle on the grass. But, however well we fought, we never won siege or battle and all our bouts ended with Joe Dillon's war dance of victory. His parents went to eight-o'clock mass every morning in Gardiner Street and the peaceful odour of Mrs. Dillon was prevalent in the hall of the house. But he played too fiercely for us who were younger and more timid. He looked like some kind of an Indian
J AM E
JOYCE
after us: "Swaddlers ! Swaddlers f" thinking that we were Protestants because Mahony, who was dark-complexioned , wore the silver badge of a cricket club in his cap. When we came to the Smoothing Iron we arranged a siege: but it was a failure because you must have at least three. We revenged ourselves on Leo Dillon by saying what a funk he was and guessing how many he would get at three o-clock from Mr. Ryan . We came then near the river. We spent a long time walking about the noisy streets flanked by high stone walls, watching the working of cranes and engines and often being shouted at for our immobility by the drivers of groaning carts. It was noon when we reached the quays and , as all the labourers seemed to be eating their lunches, we bought two big currant buns and sat down to eat them on some metal piping beside the river. We pleased ourselves with the spectacle of Dublin's commerce-the barges signalled from far away by their curls of woolly smoke, the brown fishing fleet beyond Ringsend, the big white sailing-vessel which was being discharged on the opposite quay. Mahony said it would be right skit to run away to sea on on e of those big ships
18
AN ENCOU NTER
Mahony said ir would be ri;;h1sf,i1 ro run away ro sea on one of chose big shi ps .
19
133
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Communication Arts November 1983
CLAUDE
BOLLING• COMPOSER