WICHITA, Kan., July 6, 2004 (PRIMEZONE) -- Total Entertainment Restaurant Corp. (Nasdaq:TENT) announced record revenues for the twelve-week second quarter ended June 15, 2004.
Highlights for the twelve-week second quarter ended June 15, 2004 compared to the twelve-week second quarter ended June 17, 2003:
-- Total revenues increased 23.3% to $31,141,000
-- Net loss was $516,000 versus net income of $1,236,000 for
the prior period
-- An asset impairment charge of $2,365,000 ($1,514,000 net of
tax or $0.15 per share) was taken during the period
-- Net income excluding the asset impairment charge was
$998,000 versus $1,236,000 for the prior period
-- Diluted loss per share was $0.05 versus diluted earnings per
share of $0.12 for the prior period
-- Diluted earnings per share excluding the asset impairment
charge were $0.10 versus $0.12 for the prior period
-- Average weekly sales per restaurant increased 4.8% to $38,826
-- 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 decreased 0.2%
-- Three (3) new units were opened
Highlights for the twenty-four week second quarter ended June 15, 2004 compared to the twenty-four week period ended June 17, 2003:
-- Total revenues increased 24.3% to $64,988,000
-- Net income was $2,158,000 versus $3,503,000 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 period
-- Net income excluding the asset impairment charge was
$3,672,000 versus $3,503,000 for the prior period
-- Diluted earnings per share were $0.21 versus diluted
earnings per share of $0.34 for the prior period
-- Diluted earnings per share excluding the asset impairment
charge were $0.35 versus $0.34 for the prior period
-- Average weekly sales per restaurant increased 5.3% to
$41,106
-- New units (open less than 18 months) generated 33.0% higher
average weekly sales than units in the 18-month comp base
-- Comparable store sales increased 0.8%
-- Five (5) new units were opened
Steve Johnson, chief executive officer, stated, "We are pleased with the continued growth of our concept as our overall revenues for the second quarter increased 23% year over year. Commodity price increases contributed to a 170 basis point increase in cost of sales over the prior year which equated to an approximately $.03 per share decline in earnings. A recent menu price increase of 2-3% should help to offset these raw product price escalations. We are also optimistic about the potential for future revenue and comp sales growth with the system-wide introduction of several new menu items that occurred at the beginning of the third quarter."
During the second quarter, the Company opened three (3) new restaurants-Lake Norman, NC; Troy, MI and Omaha, NE bringing the total restaurants opened during the year to five (5). The Company plans to open eleven (11) to twelve (12) new restaurants in 2004. Five (5) units are currently under construction, contracts have been executed on five (5) additional sites, and negotiations have begun on five (5) additional sites.
The Company currently operates 69 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 10:00 a.m. EDT on July 6, 2004 to discuss the fiscal 2004 second quarter earnings release. The call in number is 1-888-455-3620 and the confirmation code is "TENT". A recorded replay of the conference call will be available beginning July 6, 2004 through July 20, 2004. The replay call in number is 1-888-484-8265.
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 Second Quarter 2004
($ in thousands except per share amounts)
Condensed Income Statements
---------------------------
For the For the
twelve weeks ended twenty-four weeks ended
June 15, 2004 June 17, 2003 June 15, 2004 June 17, 2003
------------- ------------- ------------- --------------
$ % $ % $ % $ %
------- ----- ------- ----- ------- ----- ------- -----
Food and
beverage $29,021 93.2 $23,264 92.1 $60,442 93.0 $48,130 92.0
Entertainment
and other 2,120 6.8 1,985 7.9 4,546 7.0 4,160 8.0
------- ----- ------- ----- ------- ----- ------- -----
Total
net
sales 31,141 100.0 25,249 100.0 64,988 100.0 52,290 100.0
Costs and
expenses:
Costs of
sales 8,616 27.7 6,565 26.0 17,732 27.3 13,514 25.8
Restaurant
operating
expenses 16,998 54.6 13,504 53.5 33,970 52.3 27,019 51.7
Depreciation
and
amortiz-
ation 1,554 4.9 1,403 5.5 3,058 4.7 2,759 5.3
Preopening
costs 638 2.0 372 1.5 1,070 1.6 659 1.3
Asset
Impairment 2,365 7.6 -- -- 2,365 3.6 -- --
------- ----- ------- ----- ------- ----- ------- -----
Restaurant
costs and
expenses 30,171 96.8 21,844 86.5 58,199 89.5 43,951 84.1
------- ----- ------- ----- ------- ----- ------- -----
Restaurant
operating
income 970 3.2 3,405 13.5 6,793 10.5 8,339 15.9
General
and
administrative
expenses 1,749 5.5 1,429 5.6 3,494 5.5 2,796 5.4
Loss on
disposal
of
assets -- -- 17 0 -- -- 17 --
------- ----- ------- ----- ------- ----- ------- -----
Income (loss)
from
operations (779) (2.3) 1,959 7.8 3,299 5.0 5,526 10.5
Other income/
expense:
Other income/
(expense) -- -- -- -- 3 -- -- --
Interest
expense (27) (0.1) (45) (0.2) (62) (0.1) (70) (0.1)
------- ----- ------- ----- ------- ----- ------- -----
Income (loss)
before
income
taxes (806) (2.4) 1,914 7.6 3,240 4.9 5,456 10.4
Income tax
expense
(benefit) (290) (0.9) 678 2.7 1,082 1.7 1,953 3.7
------- ----- ------- ----- ------- ----- ------- -----
Net income
(loss) $ (516) (1.5) $ 1,236 4.9 $ 2,158 3.2 $ 3,503 6.7
======= ===== ======= ===== ======= ===== ======= =====
Earnings
(loss)
per share:
Basic $ (0.05) $ 0.13 $ 0.22 $ 0.36
Diluted $ (0.05) $ 0.12 $ 0.21 $ 0.34
Shares used
in computing
earnings
(loss) per
share (in
thousands):
Basic 9,889 9,737 9,870 9,801
Diluted 10,487 10,089 10,465 10,168
Restaurants
open at
end of
period 69 58 69 58
Comparable
sales
growth (0.2)% (0.4)% 0.8 % (1.4)%
Analysis of Components of Net Income and Earnings per Share Amounts
-------------------------------------------------------------------
Net earnings
excluding
asset
impair-
ment $ 998 $ 1,236 $ 3,672 $ 3,503
Provision
for asset
impairment,
net of
tax (1,514) -- (1,514) --
------- ------- ------- -------
Net income
(loss)$ (516) $ 1,236 $ 2,158 $ 3,503
======= ======= ======= =======
Diluted earnings
(loss) per share:
Net earnings
excluding asset
impair-
ment $ 0.10 $ 0.12 $ 0.35 $ 0.34
Provision
for asset
impairment,
net of
tax (0.15) -- (0.14) --
------- ------- ------- -------
Net income
(loss) $ (0.05) $ 0.12 $ 0.21 $ 0.34
======= ======= ======= =======
Total Entertainment Restaurant Corp.
Unaudited Summary Financial Data for the Second Quarter 2004
Condensed Balance Sheets
------------------------
June 15, December 30,
2004 2003
-------------- --------------
Current assets:
Cash $ 654 $ 813
Other current assets 4,381 4,912
------- -------
5,035 5,725
Property and equipment,
net 60,308 56,401
Intangibles and other
assets 5,580 5,486
------- -------
$70,923 $67,612
======= =======
Current liabilities:
Current portion of notes
payable $ -- $ --
Other current liabilities 11,703 11,586
------- -------
11,703 11,586
Notes payable 4,960 3,635
Other noncurrent liabilities 2,274 3,071
Stockholders' equity 51,986 49,320
------- -------
$70,923 $67,612
======= =======