WICHITA, Kan., Feb. 12, 2004 (PRIMEZONE) -- Total Entertainment Restaurant Corp. (Nasdaq:TENT) announced record revenues for the sixteen-week fourth quarter ended December 30, 2003.
Highlights for the sixteen-week fourth quarter ended December 30, 2003 compared to the seventeen-week fourth quarter ended December 31, 2002:
-- Total revenues increased 15.5% to $44,150,000
-- Net income before non-cash impairment increased 3.5% to $3,835,000
-- Diluted earnings per share before non-cash impairment were $0.37
versus $0.35 for the prior period
-- Net income was $2,556,000 and diluted earnings per share were $0.25
-- New units (open less than 18 months) generated 37.4% higher average
weekly sales than units in the 18-month comp base
-- Restaurant operating income before preopening costs and provision
for asset impairment increased 8.1% to $8,399,000 or 19.0% of sales
-- Comparable store sales decreased 2.6%
-- Four new units were opened
Highlights for the fifty-two week period ended December 30, 2003 compared to the fifty-three week period ended December 31, 2002:
-- Total revenues increased 18.8% to $121,708,000
-- Net income before non-cash impairment increased 8.5% to $7,817,000
-- Diluted earnings per share before non-cash impairment were $0.76
versus $0.73 for the prior period
-- Net income was $6,538,000 and diluted earnings per share were $0.64
-- New units (open less than 18 months) generated 32.5% higher
average weekly sales than units in the 18-month comp base
-- Restaurant operating income before preopening costs and provision
for asset impairment increased 9.6% to $20,176,000 or 16.6% of sales
-- Comparable store sales decreased 2.2%
-- Ten new units were opened
The Company recorded a non-cash impairment charge of $1,279,000 (net of income tax benefit of $729,000) related to two restaurants during the fourth quarter of 2003. The non-cash impairment charge was in compliance with Statement of Financial Accounting Standards (SFAS) No. 144, "Accounting for the Impairment of Long-Lived Assets."
Steve Johnson, chief executive officer, stated, "Our fourth quarter earnings of $0.37 excluding the non-cash impairment charge were at the upper end of the guidance given on our previous conference call and exceeded the consensus estimate by $0.02. Same store sales were in line with our expectations. The negative 2.6% comps included approximately 0.5% unfavorable impact from the timing of New Year's Eve, which due to the Company's fiscal year end fell in fiscal 2004. However, this same timing resulted in a favorable swing in comps as we started off the 2004 year and we expect comps to be 2% positive for the first quarter of 2004."
During the fourth quarter, the Company opened four (4) new restaurants-Oklahoma City, OK; Albuquerque, NM; King of Prussia, PA; and Richmond, VA-for a total of 10 new restaurants in 2003. One (1) unit in Gilbert, AZ opened on January 29, 2004. This was the first restaurant opening of fiscal 2004. The Company plans to open 12 to 15 new restaurants in 2004. Three (3) units are currently under construction, leases have been executed on nine (9) additional sites, and negotiations have begun on four (4) additional sites.
The Company currently operates 65 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 a conference call at 10 a.m. EST on Friday, February 13, 2004 to discuss the fiscal 2003 fourth quarter earnings release. The call in number is 1-888-889-1958 and the confirmation code is "TENT." A recorded replay of the conference call will be available beginning February 13, 2004 through February 27, 2004. The replay call in number is 1-800-945-7739.
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 Fourth Quarter 2003
($ in thousands except per share amounts)
Condensed Income Statements
---------------------------
For the For the For the For the
sixteen seventeen fifty-two fifty-three
weeks ended weeks ended weeks ended weeks ended
Dec. 30, 2003 Dec. 31, 2002 Dec. 30, 2003 Dec. 31, 2002
------------- ------------- ------------- -------------
$ % $ % $ % $ %
-------- ----- -------- ----- -------- ----- -------- -----
Food and
beverage $ 41,190 93.3 $ 35,241 92.2 $112,594 92.5 $ 93,853 91.6
Entertainment
and other 2,959 6.7 2,977 7.8 9,114 7.5 8,611 8.4
-------- ----- -------- ----- -------- ----- -------- -----
Total net
sales 44,149 100.0 38,218 100.0 121,708 100.0 102,464 100.0
Costs and
expenses:
Costs of
sales 11,841 26.8 9,954 26.0 32,006 26.3 26,815 26.2
Restaurant
operating
expenses 22,117 50.1 18,569 48.6 63,490 52.2 52,067 50.8
Depreciation
and
amortization 1,793 4.1 1,924 5.0 6,036 5.0 5,177 5.1
Preopening
costs 638 1.4 332 0.9 1,822 1.5 1,654 1.6
Asset
impairment 2,008 4.5 -- -- 2,008 1.6 -- --
-------- ----- -------- ----- -------- ----- -------- -----
Restaurant
costs and
expenses 38,397 86.9 30,779 80.5 105,362 86.6 85,713 83.7
-------- ----- -------- ----- -------- ----- -------- -----
Restaurant
operating
income 5,752 13.1 7,439 19.5 16,346 13.4 16,751 16.3
General and
administrative
expenses 2,056 4.7 1,686 4.4 6,293 5.2 5,181 5.1
Loss on disposal
of assets 16 -- 13 -- 58 -- 31 --
-------- ----- -------- ----- -------- ----- -------- -----
Income from
operations 3,680 8.4 5,740 15.1 9,995 8.2 11,539 11.2
Other income/
expense:
Other income/
(expense) 1 -- (46) (0.1) 1 -- (46) --
Interest
expense (136) (0.3) (55) (0.1) (266) (0.2) (342) (0.3)
-------- ----- -------- ----- -------- ----- -------- -----
Income from
continuing
operations
before
income
taxes 3,545 8.1 5,639 14.9 9,730 8.0 11,151 10.9
Provision for
income taxes 990 2.2 1,934 5.0 3,192 2.6 3,961 3.9
-------- ----- -------- ----- -------- ----- -------- -----
Income from
continuing
operations 2,555 5.9 3,705 9.9 6,538 5.4 7,190 7.0
Income
from
discontinued
operations -- -- -- -- -- 13 --
-------- ----- -------- ----- -------- ----- -------- -----
Net income $ 2,555 5.9 $ 3,705 9.9 $ 6,538 5.4 $ 7,203 7.0
======== ===== ======== ===== ======== ===== ======== =====
Earnings per
share:
Basic $ 0.26 $ 0.37 $ 0.67 $ 0.77
Diluted $ 0.25 $ 0.35 $ 0.64 $ 0.73
Shares used in
computing
earnings
per share
(in thousands):
Basic 9,808 10,056 9,792 9,344
Diluted 10,328 10,438 10,228 9,801
Restaurants
open at end of
period 64 54 64 54
Comparable
sales growth (2.6)% 4.0 % (2.2)% 6.6 %
Analysis of Components of Net Income and Earnings per Share Amounts
-------------------------------------------------------------------
$ $ $ $
--------- --------- --------- ---------
Net earnings
excluding
unusual
charges $ 3,835 $ 3,705 $ 7,817 $ 7,203
Provision for
asset
impairment,
net of tax (1,280) -- (1,279) --
--------- --------- --------- ---------
Net income $ 2,555 $ 3,705 $ 6,538 $ 7,203
========= ========= ========= =========
Diluted
earnings per
share:
Net earnings
excluding
unusual
charges $ 0.37 $ 0.35 $ 0.76 $ 0.73
Provision for
asset
impairment,
net of tax (0.12) -- (0.12) --
--------- --------- --------- ---------
Net income $ 0.25 $ 0.35 $ 0.64 $ 0.73
========= ========= ========= =========
Condensed Balance Sheets
------------------------
Dec. 30, 2003 Dec. 31, 2002
----------- -----------
Current assets:
Cash $ 813 $ 1,116
Other current assets 4,712 2,850
------- -------
5,525 3,966
Property and equipment, net 56,401 47,213
Intangibles and other assets 5,487 4,716
------- -------
$67,413 $55,895
======= =======
Current liabilities:
Current portion of notes payable $ -- $ 98
Other current liabilities 11,586 9,486
------- -------
11,586 9,584
Notes payable 3,635 2,442
Other noncurrent liabilities 2,872 585
Stockholders' equity 49,320 43,284
------- -------
$67,413 $55,895
======= =======