WICHITA, Kansas, Feb. 6, 2002 (PRIMEZONE) -- Total Entertainment Restaurant Corp. (Nasdaq:TENT) announced record earnings and revenues for the sixteen-week fourth quarter ended December 25, 2001. Net income before unusual charges increased $891,000 to $1,910,000 ($0.22 per share) for the quarter compared to $1,019,000 ($0.11 per share) in 2000. Charges for asset impairment of $354,000 ($0.04 per share) for the quarter and $1,457,000 ($0.16 per share) in 2000, resulted in net earnings of $1,556,000 ($0.18 per share) for the quarter compared to a net loss of $438,000 ($0.05 per share) in 2000. Sales increased 32.5% to $25,240,000 for the quarter compared to $19,052,000 in 2000. Entertainment and restaurant operating income before preopening costs and impairment increased 52.0% to $5,252,000 for the quarter compared to $3,456,000 in 2000. Comparable store sales increased 8.2%, representing the 11th consecutive quarter of positive same store sales growth.
For the year, net income before unusual charges increased $1,378,000 to $3,683,000 ($0.42 per share) compared to $2,305,000 ($0.25 per share) in 2000. Net earnings for the year increased $2,481,000 to $3,329,000 ($0.38 per share) from $848,000 ($0.09 per share) in 2000. Fiscal year sales increased 26.7% to $70,952,000 from $55,990,000. Fiscal year entertainment and restaurant operating income before preopening costs and impairment increased 33.4% to $12,292,000 compared to $9,213,000 in 2000. Comparable store sales increased 7.4% for the year.
Steve Johnson, Chief Executive Officer, stated, "Over the past five quarters our same store sales growth has averaged 7.3% per quarter. This has been a significant contributor to our EPS growth during that time. In addition, our new unit development and initial volumes of these new locations have also contributed nicely to our earnings growth. The eight new units opened during the last five quarters had average unit volumes in 2001 that were 36.7% greater than our other units."
The Company opened two new units during the fourth quarter in Atlanta and Dallas and plans to open 10-12 new units during fiscal 2002. Gary Judd, President, stated, "We have already opened two units in January in Denver and Phoenix. Three units are under construction with two scheduled to open this quarter and the other early in the second quarter. We also have executed leases on six additional sites and have non-binding letters of intent on two more locations."
The Company currently operates 45 entertainment restaurants in 36 markets under the names Fox and Hound English Pub & Grille, Fox and Hound Smokehouse & Tavern, Bailey's Sports Grille, Bailey's Pub & Grille and Bailey's Smokehouse & Tavern.
This Press Release contains certain forward-looking statements of the Company within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the Company believes the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements contained in the Press Release will prove to be accurate.
Total Entertainment Restaurant Corp.
Unaudited Summary Financial Data for the Fourth Quarter 2001
($ in thousands except per share amounts)
Condensed Income Statements
For the sixteen weeks ended
December 25, 2001 December 26, 2000
$ % $ %
-------- ------ -------- ------
Food and beverage 23,128 91.6 17,643 92.6
Entertainment and other 2,112 8.4 1,409 7.4
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Total net sales 25,240 100.0 19,052 100.0
Costs and expenses:
Costs of sales 6,782 26.9 5,134 27.0
Entertainment and restaurant
operating expenses 12,045 47.6 9,359 49.1
Depreciation and amortization 1,161 4.6 1,103 5.8
Preopening costs 548 2.2 464 2.4
Provision for asset impairment 575 2.3 2,362 12.4
-------- ------ -------- ------
Entertainment and
restaurant costs and
expenses 21,111 83.6 18,422 96.7
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Entertainment and restaurant
operating income 4,129 16.4 630 3.3
General and
administrative expenses 1,316 5.2 1,056 5.5
Goodwill amortization 75 0.3 75 0.4
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Income (loss) from operations 2,738 10.9 (501) (2.6)
Other income (expense):
Loss on disposal of assets (43) (0.2) (12) (0.1)
Other income,
principally interest - - - -
Interest expense (200) (0.8) (339) (1.8)
-------- ------ -------- ------
Income (loss) before taxes 2,495 9.9 (852) (4.5)
Provision (benefit)
for income taxes 939 3.7 (414) (2.2)
-------- ------ -------- ------
Net income (loss) $ 1,556 6.2 $ (438) (2.3)
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Basic and diluted
earnings (loss) per share $ 0.18 $ (0.05)
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Restaurants open at end of period 43 38
Comparable sales growth 8.2% 7.1%
Analysis of components of net earnings and per share amounts
For the sixteen weeks ended
December 25, 2001 December 26, 2000
$ Per share $ Per share
-------- -------- -------- --------
Net earnings excluding
unusual charges $ 1,910 $ 0.22 $ 1,019 $ 0.11
Provision for asset
impairment - net of tax (354) (0.04) (1,457) (0.16)
-------- -------- -------- --------
Net income (loss) $ 1,556 0.18 $ (438) (0.05)
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Condensed Income Statements
For the fifty-two weeks ended
December 25, 2001 December 26, 2000
$ % $ %
-------- ------ -------- ------
Food & beverage 64,505 90.9 50,837 90.8
Entertainment & other 6,447 9.1 5,153 9.2
-------- ------ -------- ------
Total net sales 70,952 100.0 55,990 100.0
Costs and expenses:
Costs of sales 19,213 27.1 14,790 26.4
Entertainment and restaurant
operating expenses 35,741 50.4 28,395 50.7
Depreciation and amortization 3,706 5.2 3,592 6.8
Preopening costs 1,218 1.7 501 0.9
Provision for asset impairment 575 0.8 2,362 4.2
-------- ------ -------- ------
Entertainment and
restaurant costs and
expenses 60,453 85.2 49,640 89.0
-------- ------ -------- ------
Entertainment and restaurant
operating income 10,499 14.8 6,350 11.3
General and
administrative expenses 3,991 5.6 3,769 6.7
Goodwill amortization 244 0.4 244 0.4
-------- ------ -------- ------
Income from operations 6,264 8.8 2,337 4.2
Other income (expense):
Loss on disposal of assets (134) (0.2) (67) (0.2)
Other income,
principally interest 1 - - -
Interest expense (864) (1.2) (1,080) (1.9)
-------- ------ -------- ------
Income before taxes 5,267 7.4 1,190 2.1
Provision for income taxes 1,938 2.7 342 0.6
-------- ------ -------- ------
Net income $ 3,329 4.7 $ 848 1.5
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Basic and diluted
earnings per share $ 0.38 $ 0.09
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Restaurants open at end of period 43 38
Comparable sales growth 7.4% 3.8%
Analysis of components of net earnings and per share amounts
For the fifty-two weeks ended
December 25, 2001 December 26, 2000
$ Per share $ Per share
-------- --------- -------- ---------
Net earnings excluding
unusual charges $ 3,683 $ 0.42 $ 2,305 $ 0.25
Provision for asset
impairment - net of tax (354) (0.04) (1,457) (0.16)
-------- -------- -------- --------
Net income $ 3,329 $ 0.38 $ 848 $ 0.09
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