WICHITA, Kan., April 12, 2004 (PRIMEZONE) -- Total Entertainment Restaurant Corp. (Nasdaq:TENT) announced record revenues and earnings for the twelve-week first quarter ended March 23, 2004.
Highlights for the twelve-week first quarter ended March 23, 2004 compared to the twelve-week first quarter ended March 25, 2003:
-- Total revenues increased 25.2% to $33,848,000
-- Net income increased 18.0% to $2,675,000
-- Diluted earnings per share were $0.26 versus $0.22 for the
prior period
-- Average weekly sales per restaurant increased 5.7% to
$43,454
-- New units (open less than 18 months) generated 33.1%
higher average weekly sales than units in the 18-month
comp base
-- Restaurant operating income before preopening costs
increased 19.8% to $6,255,000 or 18.5% of sales
-- Comparable store sales increased 1.8%
-- Two new units were opened
Steve Johnson, chief executive officer, stated, "We were pleased to report positive comp sales this quarter and meet our earnings guidance given on our previous conference call. New unit volumes remain strong-generating more than 30% higher volumes than our units older than 18 months which led to an increase in average weekly sales of 5.7%."
During the first quarter, the Company opened two (2) new restaurants-Gilbert, AZ and Wichita, KS. The Company plans to open 12 to 15 new restaurants in 2004. Six (6) units are currently under construction, contracts have been executed on five (5) additional sites, and negotiations have begun on four (4) additional sites.
The Company currently operates 66 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 4:30 p.m. EDT on Monday, April 12, 2004 to discuss the fiscal 2004 first quarter earnings release. The call in number is 1-877-960-9066 and the confirmation code is "TENT". A recorded replay of the conference call will be available beginning April 12, 2004 through April 26, 2004. The replay call in number is 1-800-842-6136.
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 First Quarter 2004
($ in thousands except per share amounts)
Condensed Income Statements
For the twelve For the twelve
weeks ended weeks ended
March 23, 2004 March 25, 2003
-------------------------------------------
$ % $ %
------ ---- ------ -----
Food and
beverage $ 31,421 92.8 $ 24,866 92.0
Entertainment
and other 2,427 7.2 2,175 8.0
------ ----- ------ ------
Total net
sales 33,848 100.0 27,041 100.0
Costs and expenses:
Costs of sales 9,116 26.9 6,949 25.7
Restaurant
operating expenses 16,972 50.1 13,515 50.0
Depreciation and
amortization 1,504 4.4 1,355 5.0
Preopening
costs 432 1.3 287 1.1
------ ---- ------ -----
Restaurant costs
and expenses 28,024 82.7 22,106 81.8
------ ---- ------ ----
Restaurant
operating income 5,824 17.3 4,935 18.2
General and
administrative
expenses 1,745 5.2 1,367 5.1
------ ---- ----- -----
Income from
operations 4,079 12.1 3,568 13.1
Other income/expense:
Other
income 3 - - -
Interest
expense (35) (0.1) (25) (0.1)
------- ----- ------ ------
Income from
continuing
operations
before income
taxes 4,047 12.0 3,543 13.0
Provision for
income taxes 1,372 4.1 1,275 4.6
-------- ---- -------- -----
Net income $ 2,675 7.9 $ 2,268 8.4
======== ==== ======== =====
Earnings per share:
Basic $ 0.27 $ 0.23
Diluted $ 0.26 $ 0.22
Shares used in computing earnings per share (in thousands):
Basic 9,851 9,865
Diluted 10,442 10,248
Restaurants open at
end of period 66 56
Comparable sales growth 1.8% (2.3)%
Condensed Balance Sheets
Mar. 23, 2004 Dec. 30, 2003
------------- -------------
Current assets:
Cash $ 817 $ 813
Other current
assets 4,364 4,912
----- ------
5,181 5,725
Property and equipment,
net 57,663 56,401
Intangibles and other
assets 5,444 5,486
------ -------
$ 68,288 $ 67,612
======== ========
Current liabilities:
Current portion of
notes payable $ - $ -
Other current
liabilities 9,195 11,586
----- -------
9,195 11,586
Notes payable 3,335 3,635
Other noncurrent
liabilities 3,417 3,071
Stockholders' equity 52,341 49,320
------ -------
$ 68,288 $ 67,612
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