Total Entertainment Restaurant Corp. Announces Fourth Quarter Earnings


WICHITA, Kan., Feb. 8, 2001 (PRIMEZONE) -- Total Entertainment Restaurant Corp. announced earnings and revenues for the fiscal year ended December 26, 2000. For the year, after-tax earnings before unusual charges increased 54.9% to $2,305,000 ($0.25 per share) compared to $1,488,000 ($0.14 per share) in 1999. Charges for asset impairment of $1,457,000 ($0.16 per share) in 2000 and for store closings and change in accounting method of $1,799,000 ($0.17 per share) in 1999, resulted in net earnings of $848,000 ($0.09 per share) for 2000 compared to a net loss of $311,000 ($0.03 per share) in 1999.

For the sixteen-week fourth quarter ended December 26, 2000, after-tax earnings before unusual charges increased 29.8% to $1,018,000 ($0.11 per share) from $784,000 ($0.08 per share) in 1999. Charges for asset impairment of $1,457,000 ($0.16 per share) in 2000 resulted in a net loss for the quarter of $439,000 ($0.05 per share) in 2000.

Fourth quarter revenues for 2000 increased 10.1% to $19,051,000 from $17,309,000 in the prior year. For the year, revenues increased 0.1% to $55,990,000 compared to $55,930,000 in 1999.

Comparable store sales increased 7.1% for the fourth quarter and 3.8% for the year over the comparable periods in 1999.

Steve Johnson, Chief Executive Officer, stated, "We are very pleased with the operating results we were able to achieve in the fourth quarter and for the year. We are especially proud of our record comp store sales growth of 7.1% for the quarter, which marks our seventh consecutive quarter of comp store sales growth. We are also extremely pleased to have renewed the development of our concept, beginning with the successful opening of three new units in Parma (Cleveland), Ohio; Dearborn, Michigan; and Lewisville (Dallas), Texas. We plan to open up to seven new units in 2001 and have begun construction on two units with leases executed on two additional sites."

During the fourth quarter the Company repurchased 499,160 shares of its common stock. The Company has repurchased 1,673,589 shares of its common stock under the 2,000,000 share repurchase plan authorized by the Board of Directors.

The Company currently operates 38 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 2000
              ($ in thousands except per share amounts)

                      Condensed Income Statements

                                   For the sixteen weeks ended
                            December 26, 2000    December 28, 1999
                                $         %          $         %
                             --------  --------   --------  --------
 Food and beverage           $ 17,643     92.6   $ 15,861       91.6
 Entertainment and other        1,408      7.4      1,448        8.4
                             --------  --------   --------  --------
   Total net sales             19,051    100.0     17,309      100.0

 Costs and expenses:
   Costs of sales               5,134     27.0      4,705       27.2
   Restaurant operating
     expenses                   9,359     49.1      8,638       49.9
   Depreciation and
    amortization                1,103      5.8      1,177        6.8
   Preopening costs               464      2.4        --         --
   Provision for asset
    impairment and
    store closing               2,362     12.4        --         --
                             --------  --------   --------  --------
     Entertainment and
       restaurant costs
       expenses                18,422     96.7     14,520       83.9
                             --------  --------   --------  --------

 Entertainment and
   restaurant
   operating income               629      3.3      2,789       16.1
 General and
   administrative expenses      1,056      5.5      1,051        6.1
 Goodwill amortization             75      0.4         75        0.4
                             --------  --------   --------  --------

 (Loss) income from 
  operations                     (502)    (2.6)     1,663        9.6
 Other income (expense):
   Loss on disposal of assets     (12)    (0.1)      (123)      (0.7)
   Interest expense              (339)    (1.8)      (357)      (2.1)
                             --------  --------   --------  --------
 (Loss) income before taxes      (853)    (4.5)     1,183        6.8
 Income tax (benefit)
   expense                       (414)    (2.2)       339        2.3
                             --------  --------   --------  --------
 Net (loss) income           $   (439)    (2.3)  $    784        4.5
                             ========  ========   ========  ========
 
 Basic and diluted 
  (loss) earnings per share:
   Net (loss) income         $  (0.05)           $   0.08
                             ========             ========
 
 Weighted-average 
  shares outstanding 
  (in thousands):
    Basic                       9,044              10,225
    Diluted                     9,044              10,226
 
 Restaurants open 
  at end of period                 38                  35
 
 Comparable sales growth          7.1%                2.1%
 
  Analysis of components 
   of net earnings and 
   per share amounts
 
                                  For the sixteen weeks ended
                           December 26, 2000      December 28, 1999
                              $     Per share       $     Per share
                           ---------  ---------  ---------  ---------
 Net earnings excluding
  unusual charges            $  1,018   $ 0.11     $    784   $ 0.08
 Provision for asset
  impairment - net of tax      (1,457)   (0.16)         -        -
                             --------  ---------   --------  ---------
 Net (loss) earnings         $   (439)  $(0.05)    $    784   $ 0.08
                             ========  =========   ========  =========
 
                      Condensed Income Statements
 
                                   For the fifty-two weeks ended
                               December 26, 2000    December 28, 1999
                                   $         %          $         %
                                --------  --------   --------  -------
 Food and beverage              $ 50,837    90.8    $  50,525    90.3
 Entertainment and other           5,153     9.2        5,405     9.7
                                --------  --------   --------  -------
  Total net sales                 55,990   100.0       55,930   100.0
 
 Costs and expenses:
  Costs of sales                  14,790    26.4       15,349    27.4
  Restaurant operating expenses   28,395    50.7       28,633    51.2
  Depreciation and amortization    3,592     6.4        3,697     6.6
  Preopening costs                   501     1.0          487     1.0
  Provision for asset impairment
    and store closing              2,362     4.2        1,087     1.9
                                --------  --------   --------  -------
 
    Entertainment and
      restaurant costs
      and expenses                49,640    88.7       49,253    88.1
                                --------  --------   --------  -------
 
 Entertainment and restaurant
  operating income                 6,350    11.3        6,677    11.9
 General and
  administrative expenses          3,768     6.7        3,900     7.0
 Goodwill amortization               244     0.4          244     0.4
                                --------  --------   --------  -------
 
 Income from operations            2,338     4.2        2,533     4.5
 Other income (expense):
  Loss on disposal of assets         (67)   (0.1)        (123)   (0.2)
  Interest expense                (1,081)   (1.9)      (1,175)   (2.1)
                                --------  --------   --------  -------
 Income before taxes               1,190     2.1        1,235     2.2
 Provision for income taxes          342     0.6          418     0.7
                                --------  --------   --------  -------
 Net income before
  cumulative effect of a change
  in accounting principle            848     1.5          817     1.5
 
 Cumulative effect of change in
  accounting principle               -        -        (1,128)   (2.0)
                                --------  --------   --------  -------
 Net income (loss)              $    848     1.5     $   (311)   (0.5)
                                ========  ========   ========  =======
 
 Basic and diluted earnings 
  (loss) per share:
 
  Income before
    accounting change          $    0.09             $   0.08
  Cumulative effect of
    accounting change                -                  (0.11)
                                --------             --------
  Net income (loss)             $   0.09             $  (0.03)
                                ========             ========
 
 Weighted-average shares 
  outstanding (in thousands):
    Basic                          9,323               10,357
    Diluted                        9,327               10,361 
 
 Restaurants open at 
  end of period                       38                  35
 
 Comparable sales growth             3.8%                (0.5%)
 
      Analysis of components of net earnings and per share amounts
 
                                 For the fifty-two weeks ended
                            December 26, 2000     December 28, 1999
                              $     Per share       $     Per share
                          --------  ---------   --------  ---------
 Net earnings
  excluding
  unusual charges         $  2,305   $ 0.25     $  1,488   $ 0.14
 Provision for asset
  impairment - 
  net of tax                (1,457)   (0.16)         -        -
 Provision for 
  store closing
  costs - net of tax          -         -           (671)   (0.06)
 Cumulative effect 
  of change in
  accounting principle        -         -         (1,128)   (0.11)
                          --------  ---------   --------  ---------
 Net earnings (loss)      $    848   $ 0.09     $   (311)  $(0.03)
                          ========  =========   ========  =========


            

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