WICHITA, Kan., Oct. 3, 2005 (PRIMEZONE) -- Fox & Hound Restaurant Group (Nasdaq:FOXX) announced record revenues for the twelve week third quarter ended September 6, 2005.
Highlights for the twelve week third quarter ended September 6, 2005 compared to the twelve week third quarter ended September 7, 2004:
-- Total revenues increased 16.8% to $36,738,000 -- Net income was $156,000 versus $110,000, an increase of 42% -- Diluted earnings per share was $0.015 versus $0.011 -- Comparable store sales increased 0.5% -- Two (2) new units were opened
Highlights for the thirty-six week period ended September 6, 2005 compared to the thirty-six week period ended September 7, 2004:
-- Total revenues increased 16.1% to $111,935,000
-- Net income was $4,209,000 versus $1,896,000
-- An asset impairment charge of $2,523,000 ($1,766,000 net of
tax or $0.17 per share) was taken during last year's second
quarter
-- Net income excluding the asset impairment charge was $4,209,000
versus $3,662,000, an increase of 14.9%
-- Diluted earnings per share was $0.40 versus $0.18
-- Diluted earnings per share excluding the asset impairment charge
was $0.40 versus $0.35
-- Comparable store sales increased 0.1%
-- Seven (7) new units were opened
During the third quarter, the Company lost twelve (12) store days due to hurricane Katrina. The New Orleans store did not incur any significant damage and losses were limited to lost revenue and food inventory primarily. Excluding the store days lost to Katrina, the comparable store sales increased 0.7%. During the fourth quarter to date, the Company lost 22 additional store days due to the hurricanes in the gulf coast area and the mid-atlantic coast area. No stores sustained significant damage, and all stores have reopened.
During the third quarter, the Company opened two (2) new restaurants -- Germantown, MD and Louisville, KY -- bringing the number of restaurants opened in 2005 to seven (7). The Company expects to open 10-11 new restaurants in fiscal 2005. Three (3) units are under construction and contracts have been executed on five (5) more sites.
The Company currently operates 82 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 on Tuesday, October 4, 2005 at 10:00 a.m. EDT. The call in number is 1-800-988-9506, and the confirmation code is "FOXX". A recorded replay of the conference call will be available beginning October 4, 2005 through October 18, 2005. The replay call in number is 1-866-443-4143.
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.
Fox & Hound Restaurant Group
Unaudited Summary Financial Data
($ in thousands except per share amounts)
Condensed Income Statements
---------------------------
For the twelve weeks ended
(Restated)
September 6, 2005 September 7, 2004
----------------- -----------------
$ % $ %
------- ----- ------- -----
Food and beverage $34,684 94.4 $29,414 93.5
Entertainment and other 2,054 5.6 2,047 6.5
------- ----- ------- -----
Total net sales 36,738 100.0 31,461 100.0
Costs and expenses:
Costs of sales 10,116 27.5 8,697 27.6
Restaurant operating expenses 21,702 59.1 18,519 58.9
Depreciation and amortization 2,365 6.4 1,930 6.1
Preopening costs 293 0.8 558 1.8
Asset impairment -- -- --
------- ----- ------- -----
Restaurant costs and expenses 34,476 93.8 29,704 94.4
------- ----- ------- -----
Restaurant operating income 2,262 6.2 1,757 5.6
General and administrative
expenses 1,965 5.4 1,523 4.9
Gain on disposal of assets -- -- -- --
------- ----- ------- -----
Income from operations 297 0.8 234 0.7
Other income/expense:
Other income -- -- -- --
Interest expense (73) (0.2) (76) (0.2)
------- ----- ------- -----
Income before income taxes 224 0.6 158 0.5
Income tax expense 68 0.2 48 0.2
------- ----- ------- -----
Net income $ 156 0.4 $ 110 0.3
======= ===== ======= =====
Earnings per share:
Basic $ 0.02 $ 0.01
Diluted $ 0.01 $ 0.01
Shares used in computing
earnings per share
(in thousands):
Basic 10,018 9,909
Diluted 10,483 10,369
Restaurants open at
end of period 82 72
Comparable sales growth 0.5% 1.3%
Analysis of Components of Net Income
and Earnings per Share Amounts
------------------------------------
Net earnings excluding asset
impairment $ 156 $ 110
Provision for asset
impairment, net of tax -- --
------- -------
Net income $ 156 $ 110
======= =======
Diluted earnings (loss)
per share:
Net earnings excluding
asset impairment $ 0.01 $ 0.01
Provision for asset
impairment, net of tax -- --
------- -------
Net income $ 0.01 $ 0.01
======= =======
For the thirty-six weeks ended
(Restated)
September 6, 2005 September 7, 2004
----------------- -----------------
$ % $ %
-------- ----- ------- -----
Food and beverage $105,510 94.3 $89,856 93.2
Entertainment and other 6,425 5.7 6,593 6.8
-------- ----- ------- -----
Total net sales 111,935 100.0 96,449 100.0
Costs and expenses:
Costs of sales 30,217 27.0 26,429 27.4
Restaurant operating expenses 61,651 55.1 52,497 54.4
Depreciation and amortization 6,624 5.9 5,467 5.7
Preopening costs 1,246 1.1 1,628 1.7
Asset impairment -- -- 2,523 2.6
-------- ----- ------- -----
Restaurant costs and expenses 99,738 89.1 88,544 91.8
-------- ----- ------- -----
Restaurant operating income 12,197 10.9 7,905 8.2
General and administrative
expenses 5,990 5.3 5,017 5.2
Gain on disposal of assets 25 -- -- --
-------- ----- ------- -----
Income from operations 6,232 5.6 2,888 3.0
Other income/expense:
Other income 15 -- 3 --
Interest expense (155) (0.1) (172) (0.2)
-------- ----- ------- -----
Income before income taxes 6,092 5.5 2,719 2.8
Income tax expense 1,883 1.7 823 0.8
-------- ----- ------- -----
Net income $ 4,209 3.8 $ 1,896 2.0
======== ===== ======= =====
Earnings per share:
Basic $ 0.42 $ 0.19
Diluted $ 0.40 $ 0.18
Shares used in computing
earnings per share
(in thousands):
Basic 9,992 9,883
Diluted 10,426 10,433
Restaurants open at
end of period 82 72
Comparable sales growth 0.1% 1.0%
Analysis of Components of Net Income
and Earnings per Share Amounts
------------------------------------
Net earnings excluding
asset impairment $ 4,209 $ 3,662
Provision for asset
impairment, net of tax -- (1,766)
-------- -------
Net income $ 4,209 $ 1,896
======== =======
Diluted earnings (loss)
per share:
Net earnings excluding
asset impairment $ 0.40 $ 0.35
Provision for asset
impairment, net of tax -- (0.17)
-------- -------
Net income $ 0.40 $ 0.18
======== =======
Fox & Hound Restaurant Group
Unaudited Summary Financial Data
($ in thousands except per share amounts)
Reconciliation of Restated Income Statements
--------------------------------------------
For the twelve weeks ended September 7, 2004
As
originally
reported Adjustment As restated
---------------- ---------- ----------------
$ % $ $ %
------- ----- ---------- ------- -----
Food and beverage $29,414 93.5 -- $29,414 93.5
Entertainment
and other 2,047 6.5 -- 2,047 6.5
------- ----- ----- ------- -----
Total net sales 31,461 100.0 -- 31,461 100.0
Costs and expenses:
Costs of sales 8,697 27.6 -- 8,697 27.6
Restaurant operating
expenses 18,495 58.8 24 18,519 58.9
Depreciation and
amortization 1,662 5.3 268 1,930 6.1
Preopening costs 558 1.8 -- 558 1.8
Asset impairment -- -- --
------- ----- ----- ------- -----
Restaurant costs
and expenses 29,412 93.5 292 29,704 94.4
------- ----- ----- ------- -----
Restaurant operating
income 2,049 6.5 (292) 1,757 5.6
General and
administrative
expenses 1,523 4.8 -- 1,523 4.9
Gain on disposal
of assets -- -- -- -- --
------- ----- ----- ------- -----
Income from operations 526 1.7 (292) 234 0.7
Other income/expense:
Other income -- -- -- -- --
Interest expense (59) (0.2) (17) (76) (0.2)
------- ----- ----- ------- -----
Income before
income taxes 467 1.5 (309) 158 0.5
Income tax expense 145 0.5 (97) 48 0.2
------- ----- ----- ------- -----
Net income $ 322 1.0 $(212) $ 110 0.3
======= ===== ===== ======= =====
Earnings per share:
Basic $ 0.03 $(0.02) $ 0.01
Diluted $ 0.03 $(0.02) $ 0.01
For the thirty-six weeks ended September 7, 2004
As
originally
reported Adjustment As restated
---------------- ---------- ----------------
$ % $ $ %
------- ----- ---------- ------- -----
Food and beverage $89,856 93.2 $ 0 $89,856 93.2
Entertainment
and other 6,593 6.8 (0) 6,593 6.8
------- ----- ---------- ------- -----
Total net sales 96,449 100.0 0 96,449 100.0
Costs and expenses:
Costs of sales 26,429 27.4 -- 26,429 27.4
Restaurant operating
expenses 52,465 54.4 32 52,497 54.4
Depreciation and
amortization 4,720 4.9 747 5,467 5.7
Preopening costs 1,628 1.7 -- 1,628 1.7
Asset impairment 2,365 2.4 158 2,523 2.6
------- ----- ---------- ------- -----
Restaurant costs
and expenses 87,607 90.8 937 88,544 91.8
------- ----- ---------- ------- -----
Restaurant operating
income 8,842 9.2 (937) 7,905 8.2
General and
administrative
expenses 5,017 5.2 -- 5,017 5.2
Gain on disposal
of assets -- -- -- -- --
------- ----- ---------- ------- -----
Income from operations 3,825 4.0 (937) 2,888 3.0
Other income/expense:
Other income 3 -- -- 3 --
Interest expense (121) (0.1) (51) (172) (0.2)
------- ----- ---------- ------- -----
Income before
income taxes 3,707 3.9 (988) 2,719 2.8
Income tax expense 1,227 1.3 (404) 823 0.8
------- ----- ---------- ------- -----
Net income $ 2,480 2.6 $ (584) $ 1,896 2.0
======= ===== ========== ======= =====
Earnings per share:
Basic $ 0.25 $(0.06) $ 0.19
Diluted $ 0.24 $(0.06) $ 0.18
Condensed Balance Sheets
Sept. 6, 2005 Dec. 28,2004
------------- ------------
Current assets:
Cash $ 1,007 $ 812
Other current assets 5,588 6,093
------- -------
6,595 6,905
Property and equipment, net 77,657 68,381
Intangibles and other assets 5,065 5,281
------- -------
$89,317 $80,567
======= =======
Current liabilities:
Current portion of capital leases $ 8 $ 8
Other current liabilities 15,817 13,133
------- -------
15,825 13,141
Notes payable 4,633 3,680
Obligations under capital lease,
net of current portion 883 889
Accrued rent 8,441 7,938
Other noncurrent liabilities 1,631 1,830
Stockholders' equity 57,904 53,089
------- -------
$89,317 $80,567
======= =======