WICHITA, Kansas, Feb. 4, 2000 (PRIMEZONE) -- Total Entertainment Restaurant Corp. (Nasdaq:TENT) announced record sales and restaurant operating Income for both the 16 week fourth quarter and fiscal year ended December 28, 1999.
Fourth quarter sales increased 17.6% to $17,309,000 compared with $14,713,000 for the same quarter last year. Annual sales increased 64.0% to $55,930,000. Comparable store sales increased 2.1% in the fourth quarter and decreased 0.5% for the year.
Restaurant operating income for the quarter increased 12.3% to $2,789,000 compared with $2,483,000 for the same quarter last year. Net income was $784,000 for the quarter or $0.08 per share compared with net income of $850,000 or $0.08 per share for the same period a year ago.
For the year, restaurant operating income increased 7.3% to a record $6,677,000. Net loss was $311,000 or $0.03 per share compared with net income of $2,081,000 or $0.20 per share last year. Included in the net loss for 1999 were charges for a first quarter change in accounting principle for pre-opening costs of $1,128,000 net of taxes ($0.11 per share), a unit closure of $685,000 net of taxes ($0.07 per share) and a one-time charge for a state sales tax assessment of $232,000 net of taxes ($0.02 per share), both of which occurred during the third quarter.
Jim Zielke, Chief Financial Officer, stated, "While we are pleased with the results for the quarter, it should be noted that our fourth quarter is typically our strongest quarter of the year due to the seasonal nature of our business and because it contains an additional four weeks."
The Company has repurchased 763,729 shares of its common stock under the 1,000,000 share repurchase plan authorized by the Board of Directors on October 5, 1999.
Fiscal year 2000 development plans call for the opening of up to four new units. One lease has been executed and one unit is currently under a non-binding letter of intent to lease with pending contingencies.
The Company is also pleased to announce the hiring of Paula Schultz as Vice President of Marketing, a newly created position. Ms. Schultz has over 20 years of experience in marketing and advertising, including marketing positions with Brinker International, Don Pablo's and El Chico.
Steve Johnson, Chief Executive Officer, said, "We are extremely excited about having Paula join our team. I am very happy with our operations and same store sales momentum at this time. Paula will help us leverage this momentum in the future."
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 Fourth Quarter 1999
($ in thousands except per share amounts)
Condensed Income Statements
For the sixteen weeks ended
December 28, 1999 December 29, 1998
$ % $ %
________ ______ ________ ________
Food & beverage 15,861 91.6 13,342 90.7
Amusement & other 1,448 8.4 1,371 9.3
________ ______ ________ ______
Total net sales 17,309 100.0 14,713 100.0
Costs and expenses:
Costs of sales 4,705 27.2 4,196 28.5
Restaurant operating expenses 8,638 49.9 6,721 45.7
Depreciation and amortization 1,177 6.8 1,313 8.9
Store closure expense - - - -
________ ______ ________ ________
Restaurant costs
and expenses 14,520 83.9 12,230 83.1
________ ______ ________ ________
Restaurant operating income 2,789 16.1 2,483 16.9
General and
administrative expenses 1,051 6.1 929 6.3
Goodwill amortization 75 0.4 75 0.5
________ ______ ________ ________
Income from operations 1,663 9.6 1,479 10.1
Other income/expense:
Gain (loss) on disposal
of assets (123) (0.7) - -
Interest income & other - - - -
Interest expense (357) (2.1) (131) (0.9)
________ ______ ________ ________
Income before taxes 1,183 6.8 1,348 9.2
Provision for income taxes 399 2.3 498 3.4
________ ______ ________ ________
Net income before cumulative
effect of a change in
accounting principle 784 4.5 850 5.8
Cumulative effect of change in
accounting principle - - - -
________ ______ ________ ________
Net income (loss) $ 784 4.5 $ 850 5.8
________ ______ ________ ________
________ ______ ________ ________
Basic earnings (loss) per share:
Income before
accounting change $ 0.08 $ 0.08
Cumulative effect of
accounting change - -
________ ________
Net income (loss) $ 0.08 $ 0.08
________ ________
________ ________
Basic weighted shares
outstanding 10,225 10,415
________ ________
________ ________
Diluted earnings (loss) per share:
Income before
accounting change $ 0.08 $ 0.08
Cumulative effect of
accounting change - -
________ ________
Net income (loss) $ 0.08 $ 0.08
________ ________
________ ________
Diluted weighted
shares outstanding 10,226 10,416
________ ________
________ ________
Restaurants open at end of period 35 32
Comparable sales growth 2.1% (2.3%)
For the fifty-two weeks ended
December 28, 1999 December 29, 1998
$ % $ %
________ ______ ________ ________
Food & beverage $ 50,525 90.3 $ 30,010 88.0
Amusement & other 5,405 9.7 4,104 12.0
________ ______ ________ ________
________
Total net sales 55,930 100.0 34,114 100.0
Costs and expenses:
Costs of sales 15,349 27.4 9,429 27.7
Restaurant operating expenses 29,120 52.1 15,586 45.7
Depreciation and amortization 3,697 6.7 2,875 8.4
Store closure expense 1,087 1.9 - -
________ ______ ________ ________
Restaurant costs
and expenses 49,253 88.1 27,890 81.8
________ ______ ________ ________
Restaurant operating income 6,677 11.9 6,224 18.2
General and
administrative expenses 3,900 7.0 2,609 7.6
Goodwill amortization 244 0.4 244 0.7
________ ______ ________ ________
Income from operations 2,533 4.5 3,371 9.9
Other income/expense:
Gain (loss) on disposal
of assets (123) (0.2) - -
Interest income & other - - 71 0.2
Interest expense (1,175) (2.1) (140) (0.4)
________ ______ ________ ________
Income (loss) before taxes 1,235 2.2 3,302 9.7
Provision for income taxes 418 0.7 1,221 3.6
________ ______ ________ ________
Net income before cumulative
effect of a change in
accounting principle 817 1.5 2,081 6.1
Cumulative effect of change in
accounting principle (1,128) (2.0) - -
________ ______ ________ ________
Net income (loss) $ (311) (0.5) $ 2,081 6.1
________ ______ ________ ________
________ ______ ________ ________
Basic earnings (loss) per share:
Income before
accounting change $ 0.08 $ 0.20
Cumulative effect of
accounting change (0.11) -
________ ________
Net income (loss) $ (0.03) $ 0.20
________ ________
________ ________
Basic weighted shares
outstanding 10,357 10,415
________ ________
________ ________
Diluted earnings (loss) per share:
Income before
accounting change $ 0.08 $ 0.20
Cumulative effect of
accounting change (0.11) -
________ ________
Net income (loss) $ (0.03) $ 0.20
________ ________
________ ________
Diluted weighted
shares outstanding 10,361 10,423
________ ________
________ ________
Restaurants open at end of period 35 32
Comparable sales growth (0.5%) (0.9%)
CONTACT: Chris Wettig
Total Entertainment Restaurant Corp.
(316) 634-0505