WICHITA, Kan., June 28, 2002 (PRIMEZONE) -- Total Entertainment Restaurant Corp. (Nasdaq:TENT) announced earnings and revenues for the twelve-week second quarter ended June 11, 2002.
Highlights for the 12-week fiscal second quarter ended June 11, 2002 compared to the 12-week fiscal second quarter ended June 12, 2001:
-- Comparable store sales increased 10.7%
-- Total revenues increased 47.2% to $21,409,000
-- Net income increased 211% to $1,126,000
-- Diluted net income per share increased 200% to $0.12
-- Average weekly sales per restaurant increased 21.2% to $38,008
-- Restaurant operating income before preopening costs increased
62.8% to $3,485,000 and increased 170 basis points to 16.4% of
sales
-- Two new units were opened
Highlights for the 24-week year to date period ended June 11, 2002 compared to the 24-week period ended June 12, 2001:
-- Comparable store sales increased 10.0%
-- Total revenues increased 40.8% to $43,233,000
-- Net income increased 94.7% to $3,023,000
-- Diluted net income per share increased 83.3% to $0.33
-- Average weekly sales per restaurant increased 17.0% to $39,471
-- Restaurant operating income before preopening costs increased
54.8% to $8,168,000 and increased 180 basis points to 19.0% of
sales
-- Six new units were opened
"We are proud to report our revenue and earnings performance for the quarter," said Steve Johnson, chief executive officer of Total Entertainment Restaurant Corp. "This marks our 13th consecutive quarter of comparable restaurant sales growth and we have averaged in excess of 7% growth for the last 8 quarters. This also marks the first time that our comparable restaurant sales growth has exceeded 10% for a quarter."
The Company plans to open ten to twelve units in 2002. During the second quarter, the Company opened two new restaurants in Westminster, CO and Richmond, VA, and closed one restaurant in Clarksville, IN. This brings the total number of restaurant openings to six through the second quarter of fiscal 2002. The seventh new unit of fiscal 2002 was opened on June 26, 2002 in Richardson, TX. In addition, three units are under construction and leases have been executed on three additional sites.
The Company currently operates 49 restaurants under the "Fox and Hound" and "Bailey's" brand names that each provide a social gathering place offering high quality food, drinks and entertainment in an upscale, casual environment.
The Company will host a conference call at 10 a.m. Eastern time on Friday, June 28, 2002 to discuss the fiscal 2002 second-quarter earnings release. The call in number is 800-482-5543 and the confirmation code is 2019967. A recorded replay of the conference call will be available on the Company's web site at www.tentcorp.com beginning June 28, 2002 through July 5, 2002.
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Although the Company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and, therefore, there can be no assurance that the forward-looking statements included in this report will prove to be accurate. Our actual results may differ materially from the forward-looking statements contained herein. Factors that could cause actual results to differ from the results discussed in the forward-looking statements include, but are not limited to, potential increases in food, alcohol, labor, and other operating costs, changes in competition, the inability to find suitable new locations, changes in consumer preferences or spending patterns, changes in demographic trends, the effectiveness of our operating and growth initiatives and promotional efforts, and changes in government regulation. Further information about the factors that might affect the Company's financial and other results are included in the Company's 10-K and 10-Q, filed with the Securities and Exchange Commission. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.
Total Entertainment Restaurant Corp.
Unaudited Summary Financial Data for the Second Quarter 2002
($ in thousands except per share amounts)
Condensed Income Statements
For the twelve weeks ended
June 11, 2002 June 12, 2001
$ % $ %
------ ------ ------ ------
Food & beverage 19,501 91.1 13,201 90.8
Entertainment & other 1,908 8.9 1,342 9.2
------ ------ ------ ------
Total net sales 21,409 100.0 14,543 100.0
Costs and expenses:
Costs of sales 5,596 26.1 3,984 27.4
Restaurant operating expenses 11,273 52.7 7,588 52.2
Depreciation and amortization 1,055 4.8 830 5.7
Preopening costs 361 1.7 299 2.0
------ ------ ------ ------
Restaurant costs and
expenses 18,285 85.3 12,701 87.3
------ ------ ------ ------
Restaurant operating income 3,124 14.7 1,842 12.7
General and
administrative expenses 1,170 5.5 911 6.3
Goodwill amortization - - 56 0.4
------ ------ ------ ------
Income from operations 1,954 9.2 875 6.0
Other income (expense):
Loss on disposal of assets - - (29) (0.2)
Interest expense (119) (0.5) (223) (1.5)
------ ------ ------ ------
Income from continuing operations
before income taxes 1,835 8.7 623 4.3
Provision for income taxes 690 3.3 229 1.6
------ ------ ------ ------
Income from continuing operations 1,145 5.4 394 2.7
Income(loss)from discontinued
Operations (19) (0.1) (32) (0.2)
------ ------ ------ ------
Net income 1,126 5.3 362 2.5
====== ====== ====== ======
Basic earnings per share $ 0.13 $ 0.04
====== ======
Diluted earnings per share $ 0.12 $ 0.04
====== ======
Restaurants open at end of period 48 40
Comparable sales growth 10.7% 5.5%
Total Entertainment Restaurant Corp.
Unaudited Summary Financial Data for the Second Quarter 2002
($ in thousands except per share amounts)
Condensed Income Statements
For the twenty-four weeks ended
June 11, 2002 June 12, 2001
$ % $ %
------ ------ ------ ------
Food & beverage 39,376 91.1 27,873 90.8
Entertainment & other 3,857 8.9 2,827 9.2
------ ------ ------ ------
Total net sales 43,233 100.0 30,700 100.0
Costs and expenses:
Costs of sales 11,328 26.2 8,356 27.2
Restaurant operating expenses 21,673 50.1 15,441 50.3
Depreciation and amortization 2,064 4.7 1,625 5.3
Preopening costs 852 2.0 370 1.2
------ ------ ------ ------
Restaurant costs and
expenses 35,917 83.0 25,792 84.0
------ ------ ------ ------
Restaurant operating income 7,316 17.0 4,908 16.0
General and
administrative expenses 2,326 5.4 1,777 5.8
Goodwill amortization - - 113 0.4
------ ------ ------ ------
Income from operations 4,990 11.6 3,018 9.8
Other income (expense):
Loss on disposal of assets (18) (0.1) (52) (0.2)
Interest expense (225) (0.5) (478) (1.5)
------ ------ ------ ------
Income from continuing operations
before income taxes 4,747 11.0 2,488 8.1
Provision for income taxes 1,737 4.0 907 2.9
------ ------ ------ ------
Income from continuing operations 3,010 7.0 1,581 5.2
Income(loss)from discontinued
Operations 13 - (28) (0.1)
------ ------ ------ ------
Net income 3,023 7.0 1,553 5.1
====== ====== ====== ======
Basic earnings per share $ 0.35 $0.18
====== ======
Diluted earnings per share $0.33 $0.18
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Restaurants open at end of period 48 40
Comparable sales growth 10.0% 5.8%