WICHITA, Kan., Sept. 27, 2004 (PRIMEZONE) -- Total Entertainment Restaurant Corp. (Nasdaq:TENT) announced record revenues for the twelve-week third quarter ended September 7, 2004.
Highlights for the twelve-week third quarter ended September 7, 2004 compared to the twelve-week third quarter ended September 9, 2003: - Total revenues increased 24.5% to $31,461,000 - Net income was $322,000 versus net income of $480,000 for the prior period - Diluted earnings per share was $0.03 versus diluted earnings per share of $0.05 for the prior period - Average weekly sales per restaurant increased 4.3% to $36,926 - New units (open less than 18 months) generated 31.9% higher average weekly sales than units in the 18-month comp base - Comparable store sales increased 1.3% - Three (3) new units were opened Highlights for the thirty-six week period ended September 7, 2004 compared to the thirty-six week period ended September 9, 2003: - Total revenues increased 24.4% to $96,449,000 - Net income was $2,480,000 versus $3,983,000 for the prior period - An asset impairment charge of $2,365,000 ($1,514,000 net of tax or $0.14 per share) was taken during the second quarter - Net income excluding the asset impairment charge was $3,994,000 versus $3,983,000 for the prior period - Diluted earnings per share were $0.24 versus diluted earnings per share of $0.39 for the prior period - Diluted earnings per share excluding the asset impairment charge were $0.38 versus $0.39 for the prior period - Average weekly sales per restaurant increased 4.9% to $39,644 - New units (open less than 18 months) generated 32.6% higher average weekly sales than units in the 18-month comp base - Comparable store sales increased 1.0% - Eight (8) new units were opened
During the third quarter, the Company opened three (3) new restaurants-Edison, NJ; Tulsa, OK; and Chattanooga, TN. The Company also opened a restaurant in Bloomingdale, IL on September 16, 2004. The Company has now opened nine (9) restaurants during the 2004 fiscal year and plans to open two (2) more bringing the total number of new restaurants in 2004 to eleven (11). Fiscal 2005 development is underway as contracts have been executed on five (5) sites, and negotiations have begun on seven (7) additional sites.
The Company currently operates 73 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 10:00 a.m. EDT on September 28, 2004 to discuss the fiscal 2004 third quarter earnings release. The call in number is 1-888-730-9140 and the confirmation code is "TENT". A recorded replay of the conference call will be available beginning September 28, 2004 through October 12, 2004. The replay call in number is 1-888-568-0802.
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 2004
($ in thousands except per share amounts)
Condensed Income Statements
For the twelve weeks ended
September 7, 2004 September 9, 2003
----------------- -----------------
$ % $ %
-------- ----- -------- -----
Food and beverage $ 29,414 93.5 $ 23,273 92.1
Entertainment and other 2,047 6.5 1,995 7.9
-------- ----- -------- -----
Total net sales 31,461 100.0 25,268 100.0
Costs and expenses:
Costs of sales 8,697 27.6 6,650 26.3
Restaurant operating
expenses 18,495 58.8 14,353 56.8
Depreciation and
amortization 1,662 5.3 1,485 5.9
Preopening costs 558 1.8 526 2.1
Asset Impairment -- -- -- --
-------- ----- -------- -----
Restaurant costs and
expenses 29,412 93.5 23,014 91.1
-------- ----- -------- -----
Restaurant operating income 2,049 6.5 2,254 8.9
General and administrative
expenses 1,523 4.8 1,441 5.7
Loss on disposal of assets -- -- 25 0.1
-------- ----- -------- -----
Income from operations 526 1.7 788 3.1
Other income/expense:
Other income/(expense) -- -- -- --
Interest expense (59) (0.2) (60) (0.2)
-------- ----- -------- -----
Income before income taxes 467 1.5 728 2.9
Income tax expense 145 0.5 248 1.0
-------- ----- -------- -----
Net income $ 322 1.0 $ 480 1.9
======== ===== ======== =====
Earnings per share:
Basic $ 0.03 $ 0.05
Diluted $ 0.03 $ 0.05
Shares used in computing
earnings per share
(in thousands):
Basic 9,909 9,754
Diluted 10,369 10,213
Restaurants open at
end of period 72 60
Comparable sales growth 1.3% (2.8)%
Analysis of Components of Net Income
and Earnings per Share Amounts
-------------------------------------
Net earnings excluding
asset impairment $ 322 $ 480
Provision for asset
impairment, net of tax - -
-------- --------
Net income $ 322 $ 480
======== ========
Diluted earnings per share:
Net earnings excluding
asset impairment $ 0.03 $ 0.05
Provision for asset
impairment, net of tax - -
Net income $ 0.03 $ 0.05
======== ========
For the thirty-six weeks ended
September 7, 2004 September 9, 2003
----------------- -----------------
$ % $ %
-------- ----- -------- -----
Food and beverage $ 89,856 93.2 $ 71,404 92.1
Entertainment and other 6,593 6.8 6,155 7.9
-------- ----- -------- -----
Total net sales 96,449 100.0 77,559 100.0
Costs and expenses:
Costs of sales 26,429 27.4 20,164 26.0
Restaurant operating expenses 52,465 54.4 41,372 53.3
Depreciation and amortization 4,720 4.9 4,244 5.5
Preopening costs 1,628 1.7 1,185 1.5
Asset Impairment 2,365 2.4 -- --
-------- ----- -------- -----
Restaurant costs
and expenses 87,607 90.8 66,965 86.3
-------- ----- -------- -----
Restaurant operating income 8,842 9.2 10,594 13.7
General and administrative
expenses 5,017 5.2 4,237 5.5
Loss on disposal of assets -- -- 42 0.1
-------- ----- -------- -----
Income from operations 3,825 4.0 6,315 8.1
Other income/expense:
Other income/(expense) 3 -- -- --
Interest expense (121) (0.1) (130) (0.2)
-------- ----- -------- -----
Income before income taxes 3,707 3.9 6,185 7.9
Income tax expense 1,227 1.3 2,202 2.8
-------- ----- -------- -----
Net income $ 2,480 2.6 $ 3,983 5.1
======== ===== ======== =====
Earnings per share:
Basic $ 0.25 $ 0.41
Diluted $ 0.24 $ 0.39
Shares used in computing
earnings per share
(in thousands):
Basic 9,883 9,785
Diluted 10,433 10,183
Restaurants open at
end of period 72 60
Comparable sales growth 1.0% (1.9)%
Analysis of Components of Net Income
and Earnings per Share Amounts
------------------------------------
Net earnings excluding
asset impairment $ 3,994 $ 3,983
Provision for asset
impairment, net of tax (1,514) -
-------- --------
Net income $ 2,480 $ 3,983
======== ========
Diluted earnings per share:
Net earnings excluding
asset impairment $ 0.38 $ 0.39
Provision for asset
impairment, net of tax 0.14 -
-------- --------
Net income $ 0.24 $ 0.39
======== ========
Condensed Balance Sheets
September 7, 2004 December 30, 2003
----------------- -----------------
Current assets:
Cash $ 1,368 $ 813
Other current assets 4,679 4,912
-------- -------
6,047 5,725
Property and equipment, net 64,262 56,401
Intangibles and other assets 5,585 5,486
-------- -------
$ 75,894 $67,612
======== =======
Current liabilities:
Current portion of notes payable $ -- $ --
Other current liabilities 11,737 11,586
-------- -------
11,737 11,586
Notes payable 8,280 3,635
Other noncurrent liabilities 3,415 3,071
Stockholders' equity 52,462 49,320
-------- -------
$ 75,894 $67,612
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