WICHITA, Kan., Sept. 25, 2003 (PRIMEZONE) -- Total Entertainment Restaurant Corp. (Nasdaq:TENT) announced record earnings and revenues for the twelve-week third quarter ended September 9, 2003.
Highlights for the twelve-week third quarter ended September 9, 2003 compared to the twelve-week third quarter ended September 3, 2002:
-- Total revenues increased 20.3% to $25,268,000
-- Net income increased 1.0% to $480,000
-- Diluted earnings per share were $0.05
-- New units (open less than 18 months) generated 31.9% higher
average weekly sales than units in the 18-month comp base
-- Restaurant operating income before preopening costs increased
12.7% to $2,780,000 or 11.0% of sales
-- Comparable store sales decreased 2.8%
-- Two new units were opened
Highlights for the thirty-six week period ended September 9, 2003 compared to the thirty-six week period ended September 3, 2002:
-- Total revenues increased 20.7% to $77,559,000
-- Net income increased 13.9% to $3,983,000
-- Diluted earnings per share were $0.39
-- New units (open less than 18 months) generated 31.2% higher
average weekly sales than units in the 18-month comp base
-- Restaurant operating income before preopening costs increased
10.8% to $11,779,000 or 15.2% of sales
-- Comparable store sales decreased 1.9%
-- Six new units were opened
Steve Johnson, chief executive officer, stated, "Our stronger than expected new unit volumes allowed us to exceed our expected overall sales by more than $200,000. Earnings of $0.05 per share were at the upper end of the guidance given on our previous conference call. While we were disappointed in our comp store sales, power outages during the quarter resulted in a negative impact on comps of approximately 0.4% and four units recently added to the comp base reduced comps by 2.6% for the quarter."
The Company plans to open 10 new units during fiscal 2003. During the third quarter, the Company opened two (2) new restaurants, one (1) in Arlington, VA and one (1) in Houston, TX. One (1) unit in Oklahoma City, OK opened on September 11, 2003. This brings the total number of restaurant openings to seven (7) for the year. Four (4) units are currently under construction, leases have been executed on two (2) additional sites, and negotiations have begun on seven (7) additional sites.
The Company currently operates 61 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.
Chief Executive Officer, Steven M. Johnson, and Chief Financial Officer, James K. Zielke, will host the conference call at 10 a.m. EDT on Friday, September 26, 2003 to discuss the fiscal 2003 third quarter earnings release. The call in number is 1-888-810-4930 and the confirmation code is "TENT." A recorded replay of the conference call will be available beginning September 26, 2003 through October 10, 2003. The replay call in number is 1-888-562-4358.
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 Third Quarter 2003
($ in thousands except per share amounts)
Condensed Income Statements
For the twelve weeks ended
Sept. 9, 2003 Sept. 3, 2002
------------------ ------------------
$ % $ %
------- -------- ------- --------
Food and beverage $23,273 92.1 $19,235 91.5
Entertainment
and other 1,995 7.9 1,777 8.5
------- -------- ------- --------
Total net sales 25,268 100.0 21,012 100.0
Costs and expenses:
Costs of sales 6,650 26.3 5,533 26.3
Restaurant operating
expenses 14,353 56.8 11,825 56.3
Depreciation and
amortization 1,485 5.9 1,188 5.7
Preopening costs 526 2.1 470 2.2
------- -------- ------- --------
Restaurant costs
and expenses 23,014 91.1 19,016 90.5
------- -------- ------- --------
Restaurant operating
income 2,254 8.9 1,996 9.5
General and
administrative
expenses 1,441 5.7 1,170 5.6
Loss on disposal
of assets 25 0.1 -- --
------- -------- ------- --------
Income from operations 788 3.1 826 3.9
Other income/expense:
Other income/(expense) -- -- -- --
Interest expense (60) (0.2) (62) (0.3)
------- -------- ------- --------
Income from continuing
operations before
income taxes 728 2.9 764 3.6
Provision for income
taxes 248 1.0 289 1.3
------- -------- ------- --------
Income from continuing
operations 480 1.9 475 2.3
Income (loss) from
discontinued
operations -- -- -- --
Net income $ 480 1.9 $ 475 2.3
======= ======== ======= ========
Basic earnings per
share:
Income from
continuing
operations $ 0.05 $ 0.05
Loss on
discontinued
operations -- --
------- -------
Basic earnings
per share $ 0.05 $ 0.05
======= =======
Diluted earnings
per share:
Income from
continuing
operations $ 0.05 $ 0.05
Loss on
discontinued
operations -- --
------- -------
Diluted earnings
per share $ 0.05 $ 0.05
======= =======
Restaurants open at
end of period 60 51
Comparable sales
growth (2.8)% 4.4%
For the thirty-six weeks ended
Sept. 9, 2003 Sept. 3, 2002
$ % $ %
------- -------- ------- --------
Food and beverage $71,404 92.1 $58,611 91.2
Entertainment
and other 6,155 7.9 5,634 8.8
------- -------- ------- --------
Total net sales 77,559 100.0 64,245 100.0
Costs and expenses:
Costs of sales 20,164 26.0 16,861 26.2
Restaurant operating
expenses 41,372 53.3 33,498 52.1
Depreciation and
amortization 4,244 5.5 3,252 5.1
Preopening costs 1,185 1.5 1,322 2.1
------- -------- ------- --------
Restaurant costs
and expenses 66,965 86.3 54,933 85.5
------- -------- ------- --------
Restaurant operating
income 10,594 13.7 9,312 14.5
General and
administrative
expenses 4,237 5.5 3,495 5.4
Loss on disposal
of assets 42 0.1 18 --
------- -------- ------- --------
Income from operations 6,315 8.1 5,799 9.1
Other income/expense:
Other income/(expense) -- -- -- --
Interest expense (130) (0.2) (287) (0.4)
------- -------- ------- --------
Income from continuing
operations before
income taxes 6,185 7.9 5,512 8.7
Provision for income
taxes 2,202 2.8 2,026 3.2
------- -------- ------- --------
Income from continuing
operations 3,983 5.1 3,486 5.5
Income (loss) from
discontinued
operations -- -- 12 --
------- -------- ------- --------
Net income $ 3,983 5.1 $ 3,498 5.5
------- -------- ------- --------
Basic earnings per
share:
Income from
continuing
operations $ 0.41 $ 0.39
Loss on discontinued
operations -- --
------- -------
Basic earnings
per share $ 0.41 $ 0.39
======= =======
Diluted earnings
per share:
Income from
continuing
operations $ 0.39 $ 0.37
Loss on discontinued
operations -- --
------- -------
Diluted earnings
per share $ 0.39 $ 0.37
======= =======
Restaurants open at
end of period 60 51
Comparable sales
growth (1.9)% 8.1%
Condensed Balance Sheets
------------------------
Sept. 9, 2003 Dec. 31, 2002
------- -------
Current assets:
Cash $ 670 $ 1,116
Other current assets 4,540 2,850
------- -------
5,210 3,966
Property and equipment, net 54,110 47,213
Intangibles and other assets 5,442 4,716
------- -------
$64,762 $55,895
======= =======
Current liabilities:
Current portion of notes payable $ 1,618 $ 98
Other current liabilities 8,589 9,486
------- -------
10,207 9,584
Notes payable 5,837 2,442
Other noncurrent liabilities 2,459 585
Stockholders' equity 46,259 43,284
------- -------
$64,762 $55,895
======= =======