WICHITA, Kansas, April 13, 1999 (PRIMEZONE) -- Total Entertainment Restaurant Corp. (NASDAQ: TENT)announced record sales for the twelve week first quarter ended March 23, 1999.
First quarter sales increased 112.3% to $14,384,000 compared with $6,775,000 for the same quarter last year. Comparable store sales decreased 6.7% in the first quarter.
Record net income before the cumulative effect of a change in accounting principle increased 24.3% for the first quarter to $844,000 or $0.08 per share compared with $679,000 or $0.07 per share for the same period a year ago.
The Company adopted Statement of Position 98-5, "Reporting on the Costs of Start-Up Activities," which requires that preopening and other start-up costs be expensed as incurred rather than capitalized. The adoption has been made effective as of the beginning of the Company's current fiscal year. As a result of the adoption, the Company has begun to report preopening costs as part of its entertainment and restaurant operating expenses, which in turn will result in lower future amortization expense. The Company had amortized preopening costs over a one-year period following the opening of its restaurants. The cumulative effect of the change in accounting, which totaled $1,128,000 net of taxes or $0.11 per share, was recorded as a one-time charge in the Company's first quarter results. Net loss after the change in accounting principle was $284,000 or $0.03 per share.
During the first quarter, the Company opened five Fox and Hound English Pub & Grille units. The new units are:
* Pittsburgh, PA * Winston-Salem, NC * Indianapolis, IN * Houston, TX * Baton Rouge, LA
Development plans call for up to an additional three new units to be opened in 1999 and ten to twelve new units in 2000.
The Company currently operates 37 entertainment restaurants in 34 markets under the names Fox and Hound English Pub & Grille, Bailey's Sports Grille and Bailey's Pub & Grille.
This Press Release contains certain forward-looking statements including development plans of the Company within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the Company believes the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements contained in the Press Release will prove to be accurate.
Total Entertainment Restaurant Corp.
Unaudited Summary Financial Data for the First Quarter 1999
($ in thousands except per share amounts)
Condensed Income Statements
For the twelve For the twelve
weeks ended weeks ended
March 23, 1999 March 24, 1998
$ % $ %
________ ________ ________ ________
Food & beverage $ 12,927 89.9 $ 5,742 84.8
Amusement & other 1,457 10.1 1,033 15.2
________ ________ ________ ________
Total net sales 14,384 100.0 6,775 100.0
Costs and expenses:
Costs of sales 3,959 27.5 1,785 26.3
Restaurant operating expenses 6,676 46.4 2,856 42.2
Depreciation and amortization 797 5.6 465 6.9
Preopening expenses 432 3.0 - -
________ ________ ________ ________
Restaurant costs
and expenses 11,864 82.5 5,106 75.4
________ ________ ________ ________
Restaurant operating income 2,520 17.5 1,669 24.6
General and administrative expenses 894 6.2 567 8.3
Goodwill amortization 56 0.4 56 0.8
________ ________ ________ ________
Income from operations 1,570 10.9 1,046 15.4
Interest income & other - - 32 0.5
Interest expense (230) (1.6) - -
________ ________ ________ ________
Income before taxes 1,340 9.3 1,078 15.9
Provision for income taxes 496 3.4 399 5.9
________ ________ ________ ________
Net income before cumulative
effect of a change in
accounting principle 844 5.9 679 10.0
Cumulative effect of change in
accounting principle (1,128) (7.8) - -
________ ________ ________ ________
Net income (loss) $ (284) (1.9) $ 679 10.0
________ ________ ________ ________
________ ________ ________ ________
Basic earnings per share:
Income before
accounting change $ 0.08 $ 0.07
Cumulative effect of
accounting change (0.11) -
________ ________
Net income (loss) $ (0.03) $ 0.07
________ ________
________ ________
Basic weighted shares
outstanding 10,415 10,415
________ ________
________ ________
Diluted earnings per share:
Income before
accounting change $ 0.08 $ 0.07
Cumulative effect of
accounting change (0.11) -
________ ________
Net income (loss) $ (0.03) $ 0.07
________ ________
________ ________
Diluted weighted
shares outstanding 10,646 10,415
________ ________
________ ________
Restaurants open at end of period 37 17
Comparable sales growth (6.7)% 3.2%
CONTACT: Christopher L. Wettig
Total Entertainment Restaurant Corp.
(316) 634-0505