WICHITA, Kan., April 14, 2005 (PRIMEZONE) -- Total Entertainment Restaurant Corp. (Nasdaq:TENT) announced record revenues and earnings for the twelve-week first quarter ended March 22, 2005.
Highlights for the twelve-week first quarter ended March 22, 2005 compared to the twelve-week first quarter ended March 23, 2004:
- Total revenues increased 16.3% to $39,355,000 - Net income was $2,988,000 versus $2,641,000 - Diluted earnings per share was $0.29 versus $0.25 - Restaurant operating income increased 15.7% to $6,460,000 - Comparable store sales increased 0.6% - Two (2) new units were opened
Steve Johnson, chief executive officer, stated, "We were pleased to report sales and earnings which exceeded the guidance given on our previous conference call. Sales were $350,000 more than the high end of our guidance and earnings exceeded our guidance by $0.03."
During the first quarter, the Company opened two (2) new restaurants -- Cary, NC and Indianapolis, IN. The Company expects to open 10-12 new restaurants in fiscal 2005. Five (5) units are under construction, contracts have been executed on four (4) more sites, and negotiations have begun on four (4) additional sites.
The Company currently operates 77 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 April 15, 2005 to discuss the fiscal 2005 first quarter earnings release. The call in number is 1-800-988-9506 and the confirmation code is "TENT". A recorded replay of the conference call will be available beginning April 15, 2005 through April 29, 2005. The replay call in number is 1-866-515-1615.
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
($ in thousands except per share amounts)
Condensed Income Statements
-----------------------------
For the twelve weeks ended
(Restated)
March 22, 2005 March 23, 2004
---------------------------------
$ % $ %
---------------------------------
Food and beverage $ 37,074 94.2 $ 31,421 92.8
Entertainment and other 2,281 5.8 2,426 7.2
-------- ----- -------- ----
Total net sales 39,355 100.0 33,847 100.0
Costs and expenses:
Costs of sales 10,402 26.5 9,116 26.9
Restaurant operating
expenses 20,004 50.8 16,983 50.2
Depreciation and
amortization 2,096 5.3 1,735 5.1
Preopening costs 393 1.0 432 1.3
Asset Impairment - - -
-------- ----- -------- ----
Restaurant costs
and expenses 32,895 83.6 28,266 83.5
-------- ----- -------- ----
Restaurant operating
income 6,460 16.4 5,581 16.5
General and administrative
expenses 2,018 5.1 1,745 5.1
Loss on disposal of assets -- -- -- --
-------- ----- -------- ----
Income from operations 4,442 11.3 3,836 11.4
Other income/expense:
Other income/(expense) -- -- 3 --
Interest expense (49) (0.1) (52) (0.2)
-------- ----- -------- ----
Income before income taxes 4,393 11.2 3,787 11.2
Income tax expense 1,405 3.6 1,146 3.4
-------- ----- -------- ----
Net income $ 2,988 7.6 $ 2,641 7.8
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Earnings per share:
Basic $ 0.30 $ 0.27
Diluted $ 0.29 $ 0.25
Shares used in computing earnings per share (in thousands):
Basic 9,961 9,851
Diluted 10,393 10,442
Restaurants open at end
of period 77 66
Comparable sales growth 0.6% 1.8%
Condensed Balance Sheets
Mar. 22, 2005 Dec. 28, 2004
------------- -------------
Current assets:
Cash $ 700 $ 812
Other current assets 5,102 6,093
-------- --------
5,802 6,905
Property and equipment, net 70,860 68,381
Intangibles and other assets 5,056 5,281
-------- --------
$ 81,718 $ 80,567
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Current liabilities:
Current portion of
capital leases $ 8 $ 8
Other current liabilities 13,264 13,133
-------- --------
13,272 13,141
Notes payable 1,170 3,680
Obligations under capital
lease, net of current
portion 887 889
Accrued Rent 8,180 7,938
Other noncurrent liabilities 2,023 1,830
Stockholders' equity 56,186 53,089
-------- --------
$ 81,718 $ 80,567
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