WICHITA, Kan., September 25, 2002 (PRIMEZONE) -- Total Entertainment Restaurant Corp. (Nasdaq:TENT) announced earnings and revenues for the twelve-week third quarter ended September 3, 2002.
Highlights for the 12-week fiscal third quarter ended September 3, 2002 compared to the 12-week fiscal third quarter ended September 4, 2001:
-- Comparable store sales increased 4.4% -- Total revenues increased 46.0% to $21,012,000 -- Net income increased 116% to $475,000 -- Diluted net income per share increased 67% to $0.05 -- Average weekly sales per restaurant increased 16.0% to $35,039 -- New units (open less than 18 months) generated 43.0% higher average weekly sales than units in the 18-month comp base -- Restaurant operating income before preopening costs increased 32.3% to $2,466,000 -- Three new units were opened
Highlights for the 36-week year-to-date period ended September 3, 2002 compared to the 36-week period ended September 4, 2001:
-- Comparable store sales increased 8.1% -- Total revenues increased 42.5% to $64,245,000 -- Net income increased 97.3% to $3,498,000 -- Diluted net income per share increased 85% to $0.37 -- Average weekly sales per restaurant increased 16.6% to $37,923 -- New units (open less than 18 months) generated 42.6% higher average weekly sales than units in the 18-month comp base -- Restaurant operating income before preopening costs increased 48.9% to $10,634,453 -- Nine new units were opened
"We are proud to report our revenue and earnings performance for the quarter," said Steve Johnson, chief executive officer of Total Entertainment Restaurant Corp. "This marks our 14th consecutive quarter of comparable restaurant sales growth and we have averaged in excess of 7% growth for the last 8 quarters. Our comp growth results are an indication of how our guests view our operations. Excluding the week following September 11, 2001, we have had positive comp store growth for 66 weeks in a row and 106 out of the past 109 weeks. Obviously, this compounded growth for 3-1/2 years continues to make the comparisons more difficult to roll over, but we plan on continuing to perform better than the industry averages."
The Company plans to open twelve units in 2002. During the third quarter, the Company opened three new restaurants in Richardson (Dallas), TX; Denver, CO; and the Company's first unit in the Austin, TX market. This brings the total number of restaurant openings to nine through the third quarter of fiscal 2002. The tenth new unit of fiscal 2002 was opened on September 4, 2002 in Schaumburg (Chicago), IL. In addition, three units are under construction, leases have been executed on three additional sites, another two leases should be signed in the next 30 days and seven non-binding letters of intent have been issued on approved sites.
The Company currently operates 52 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.
The Company will host the conference call at 10 a.m. Eastern on Wednesday, September 25, 2002 to discuss the fiscal 2002 third quarter earnings release. The call-in number is 1-888-455-9674 and the confirmation code is "TENT". A recorded replay of the conference call will be available beginning September 25, 2002 through October 9, 2002. The replay call-in number is 1-800-947-6098.
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 Third Quarter 2002
($ in thousands except per share amounts)
Condensed Income Statements
For the twelve weeks ended
September 3, 2002 September 4, 2001
------------------ ------------------
$ % $ %
------- ------- ------- -------
Food and beverage 19,235 91.5 12,987 90.2
Entertainment and other 1,777 8.5 1,409 9.8
------- ------- ------- -------
Total net sales 21,012 100.0 14,396 100.0
Costs and expenses:
Costs of sales 5,533 26.3 3,897 27.1
Restaurant operating
expenses 11,825 56.3 7,777 54.0
Depreciation and
amortization 1,188 5.6 858 6.0
Preopening costs 470 2.2 299 2.0
------- ------- ------- -------
Restaurant costs and
expenses 19,016 90.4 12,831 89.1
------- ------- ------- -------
Restaurant operating income 1,996 9.6 1,565 10.9
General and
administrative expenses 1,170 5.6 897 6.2
Goodwill amortization -- -- 56 0.4
------- ------- ------- -------
Income from operations 826 4.0 612 4.3
Other income (expense):
Loss on disposal of assets -- -- (39) (0.3)
Interest expense (62) (0.2) (186) (1.3)
------- ------- ------- -------
Income from continuing
operations before
income taxes 764 3.8 387 2.7
Provision for income taxes 289 1.5 132 0.9
------- ------- ------- -------
Income from continuing
operations 475 2.3 255 1.8
Income(loss) from
discontinued operations -- -- (35) (0.2)
------- ------- ------- -------
Net income 475 2.3 220 1.6
======= ======= ======= =======
Basic earnings per share $ 0.05 $ 0.03
======= =======
Diluted earnings per share $ 0.05 $ 0.03
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Restaurants open at
end of period 51 41
Comparable sales growth 4.4% 9.5%
Total Entertainment Restaurant Corp.
Unaudited Summary Financial Data for the Third Quarter 2002
($ in thousands except per share amounts)
Condensed Income Statements
For the thirty-six weeks ended
September 3, 2002 September 4, 2001
------------------ ------------------
$ % $ %
------- ------- ------- -------
Food and beverage 58,611 91.2 40,860 90.6
Entertainment and other 5,634 8.8 4,236 9.4
------- ------- ------- -------
Total net sales 64,245 100.0 45,096 100.0
Costs and expenses:
Costs of sales 16,861 26.2 12,254 27.2
Restaurant operating
expenses 33,498 52.1 23,218 51.5
Depreciation and
amortization 3,252 5.0 2,483 5.5
Preopening costs 1,322 2.1 669 1.5
------- ------- ------- -------
Restaurant costs and
expenses 54,933 85.4 38,624 85.7
------- ------- ------- -------
Restaurant operating income 9,312 14.6 6,472 14.3
General and
administrative expenses 3,495 5.4 2,675 5.9
Goodwill amortization -- -- 169 0.4
------- ------- ------- -------
Income from operations 5,817 9.2 3,628 8.0
Other income (expense):
Loss on disposal of assets (18) (0.1) (91) (0.2)
Interest expense (287) (0.4) (663) (1.4)
------- ------- ------- -------
Income from continuing
operations before
income taxes 5,512 8.7 2,874 6.4
Provision for income taxes 2,026 3.2 1,039 2.2
------- ------- ------- -------
Income from continuing
operations 3,486 5.5 1,835 4.2
Income(loss) from
discontinued operations 12 -- (62) (0.1)
------- ------- ------- -------
Net income 3,498 5.5 1,773 4.1
======= ======= ======= =======
Basic earnings per share $ 0.39 $ 0.20
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Diluted earnings per share $ 0.37 $ 0.20
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Restaurants open at end
of period 51 41
Comparable sales growth 8.1% 7.0%