WICHITA, Kan., Oct. 2, 2000 (PRIMEZONE) -- Total Entertainment Restaurant Corp. (Nasdaq:TENT) announced record entertainment and restaurant operating profit for the twelve-week third quarter ended September 5, 2000.
Third quarter sales were $11,282,000 compared with $11,441,000 for the same quarter last year. Comparable store sales increased 1.0% for the third quarter and 1.6% year-to-date.
Entertainment and restaurant operating income for the quarter increased to $1,212,000 compared with entertainment and restaurant operating loss of $140,000 for the same quarter last year. Net income was $20,000 for the quarter or $0.00 per share compared with net loss of $942,000 or $0.09 per share for the same period a year ago. Included in the net loss for the third quarter last year were charges for a store closure of $685,000 ($0.07 per share), net of taxes of $402,000 and a one-time charge for a state sales tax assessment of $232,000 ($0.02 per share), net of taxes of $136,000.
Steve Johnson, Chief Executive Officer, stated, "Given the seasonality of our business, we are very pleased with the operating results we were able to achieve in the third quarter. We are especially proud of our sixth consecutive quarter of comp store sales growth. Our current sales momentum is important as we head into our final quarter of the fiscal year."
During the third quarter the Company repurchased 116,000 shares of its common stock. The Company has repurchased 1,169,429 shares of its common stock under the 1,500,000 share repurchase plan authorized by the Board of Directors. The Board of Directors authorized the repurchase of an additional 500,000 shares on September 28, 2000.
Steve Johnson also stated, "Following our sales and earnings results of Q4 of 1999 and Q1 of 2000, our Board of Directors authorized senior management to renew the development of our concept. We will open two to three new units during the fourth quarter of the year. In addition, we have two more executed leases and six properties with outstanding letters of intent. We plan on opening an additional seven units during 2001. While we are excited about this development, we are committed to doing so in a controlled manner and not at the expense of our existing operations."
The Company currently operates 35 entertainment restaurants in 33 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 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 Third Quarter 2000
($ in thousands except per share amounts)
Condensed Income Statements
For the twelve weeks ended
September 5, 2000 September 7, 1999
$ % $ %
-------- ------- ------- ------
Food & beverage 10,136 89.8 10,236 89.5
Entertainment & other 1,146 10.2 1,205 10.5
-------- ------- ------- ------
Total net sales 11,282 100.0 11,441 100.0
Costs and expenses:
Costs of sales 2,953 26.2 3,134 27.4
Restaurant operating expenses 6,290 55.8 6,497 56.8
Depreciation and amortization 827 7.3 863 7.5
Store closure expense - - 1,087 9.5
------- ------- ------ ------
Entertainment and
restaurant costs
and expenses 10,070 89.3 11,581 101.2
------- ------- ------ ------
Entertainment and restaurant
operating income (loss) 1,212 10.7 (140) (1.2)
General and
administrative expenses 851 7.5 952 8.3
Goodwill amortization 56 0.5 56 0.5
------- ------- ------ ------
Income (loss) from operations 305 2.7 (1,148) (10.0)
Other income/expense:
Loss on disposal of assets (23) (0.3) - -
Interest expense (250) (2.2) (346) (3.0)
------- ------- ------ ------
Income (loss) before taxes 32 0.2 (1,494) (13.0)
Provision for income taxes 12 0.1 (552) (4.8)
------- ------- ------ ------
Net income (loss) $ 20 0.1 $ (942) (8.2)
======= ======= ====== ======
Basic and diluted earnings
(loss) per share:
Net income (loss) $ 0.00 $ (0.09)
======== ========
Basic weighted shares
outstanding 9,307 10,415
======== ========
Diluted weighted
shares outstanding 9,314 10,415
======== ========
Restaurants open at end of period 35 36
Comparable sales growth 1.0% 0.5%
For the thirty-six weeks ended
September 5, 2000 September 7, 1999
$ % $ %
------- ------ ------- ------
Food & beverage $ 33,195 89.9 $ 34,664 89.8
Entertainment & other 3,744 10.1 3,956 10.2
------- ------- ------ ------
Total net sales 36,939 100.0 38,620 100.0
Costs and expenses:
Costs of sales 9,656 26.1 10,644 27.6
Restaurant operating expenses 19,073 51.6 20,482 53.0
Depreciation and amortization 2,489 6.7 2,521 6.5
Store closure expense - - 1,087 2.8
------- ------- ------- ------
Entertainment and
restaurant costs
and expenses 31,218 84.4 34,734 89.9
------- ------- ------- ------
Entertainment restaurant
operating income 5,721 15.6 3,886 10.1
General and
administrative expenses 2,713 7.3 2,848 7.4
Goodwill amortization 169 0.5 169 0.4
-------- ------- ------- ------
Income from operations 2,839 7.8 869 2.3
Other income/expense:
Loss on disposal of assets (55) (0.1) - -
Interest expense (742) (2.0) (818) (2.1)
------- ------- ------- ------
Income before taxes 2,042 5.7 51 0.2
Provision for income taxes 756 2.0 19 0.0
------- ------- ------- ------
Net income before
cumulative effect of a change
in accounting principle 1,286 3.7 32 0.2
Cumulative effect of change in
accounting principle - - (1,127) (2.9)
------- ------- ------- ------
Net income (loss) $ 1,286 3.7 $ (1,095) (2.7)
======== ======= ======= ======
Basic and diluted earnings
(loss) per share:
Income before
accounting change $ 0.14 $ 0.00
Cumulative effect of
accounting change - (0.11)
-------- --------
Net income (loss) $ 0.14 $ (0.11)
======== ========
Basic weighted shares
outstanding 9,451 10,415
======== ========
Diluted weighted
shares outstanding 9,455 10,457
======== ========
Restaurants open at end of period 35 36
Comparable sales growth 1.6% (2.1%)