WICHITA, Kan., July 7, 2005 (PRIMEZONE) -- Fox & Hound Restaurant Group (Nasdaq:FOXX) announced record revenues for the twelve week second quarter ended June 14, 2005.
Highlights for the twelve week second quarter ended June 14, 2005 compared to the twelve week second quarter ended June 15, 2004:
-- Total revenues increased 15.1% to $35,842,000
-- Net income was $1,065,000 versus a net loss of $855,000
-- An asset impairment charge of $2,523,000 ($1,766,000 net
of tax or $0.18 per share) was taken during last year's
second quarter
-- Net income excluding the asset impairment charge was
$1,065,000 versus $911,000
-- Diluted earnings per share was $0.10 versus a diluted
loss per share of $0.09
-- Diluted earnings per share excluding the asset impairment
charge was $0.10 versus $0.09
-- Comparable store sales decreased 0.9%
-- Three (3) new units were opened
Highlights for the twenty-four week period ended June 14, 2005 compared to the twenty-four week period ended June 15, 2004:
-- Total revenues increased 15.7% to $75,197,000
-- Net income was $4,053,000 versus $1,786,000
-- An asset impairment charge of $2,523,000 ($1,766,000 net
of tax or $0.17 per share) was taken during last year's
second quarter
-- Net income excluding the asset impairment charge was
$4,053,000 versus $3,552,000
-- Diluted earnings per share was $0.39 versus $0.17
-- Diluted earnings per share excluding the asset impairment
charge was $0.39 versus $0.34
-- Comparable store sales decreased 0.1%
-- Five (5) new units were opened
Steve Johnson, chief executive officer, stated, "We were pleased to report sales and earnings which met the guidance given on our previous conference call."
During the second quarter, the Company opened three (3) new restaurants -- St. Louis, MO; Wilmington, NC; and Birmingham, AL. Two (2) additional units were opened after the end of the second quarter in Germantown, MD and Louisville, KY, bringing the number of restaurants opened in 2005 to seven (7). The Company expects to open 10-12 new restaurants in fiscal 2005. One (1) unit is under construction, contracts have been executed on three (3) more sites, and negotiations have begun on six (6) additional sites.
The Company currently operates 82 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.
Chief Executive Officer, Steven M. Johnson, and Chief Financial Officer, James K. Zielke, will host a conference call at Friday, July 8, 2005 at 10:00 a.m. EDT. The call in number is 1-800-988-9506, and the confirmation code is "FOXX". A recorded replay of the conference call will be available beginning July 8, 2005 through July 22, 2005. The replay call in number is 1-800-272-5921.
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.
Fox & Hound Restaurant Group
Unaudited Summary Financial Data
($ in thousands except per share amount
Condensed Income Statements
For the twelve weeks ended
(Restated)
June 14, 2005 June 15, 2004
----------------- -----------------
$ % $ %
----------------- -----------------
Food and beverage $ 33,752 94.2 $ 29,021 93.2
Entertainment and other 2,090 5.8 2,120 6.8
-------- -------- -------- --------
Total net sales 35,842 100.0 31,141 100.0
Costs and expenses:
Costs of sales 9,699 27.1 8,616 27.7
Restaurant operating
expenses 19,945 55.6 16,995 54.6
Depreciation and
amortization 2,163 6.0 1,802 5.8
Preopening costs 560 1.6 638 2.0
Asset Impairment -- -- 2,523 8.1
-------- -------- -------- --------
Restaurant costs
and expenses 32,367 90.3 30,574 98.2
-------- -------- -------- --------
Restaurant operating
income 3,475 9.7 567 1.8
General and
administrative
expenses 2,007 5.6 1,749 5.6
Gain on disposal
of assets 25 0.1 -- --
-------- -------- -------- --------
Income from operations 1,493 4.2 (1,182) (3.8)
Other income/expense:
Other income/(expense) 15 -- -- --
Interest expense (33) (0.1) (44) (0.1)
-------- -------- -------- --------
Income before income
taxes 1,475 4.1 (1,226) (3.9)
Income tax expense 410 1.1 (371) (1.2)
-------- -------- -------- --------
Net income $ 1,065 3.0 $ (855) (2.7)
======== ======== ======== ========
Earnings per share:
Basic $ 0.11 $ (0.09)
Diluted $ 0.10 $ (0.09)
Shares used in
computing earnings
per share (in thousands):
Basic 9,997 9,889
Diluted 10,420 9,889
Restaurants open
at end of period 80 69
Comparable sales growth (0.9)% (0.2)%
Analysis of Components of Net Income and Earnings per Share Amounts
-------------------------------------------------------------------
Net earnings
excluding asset
impairment $ 1,065 $ 911
Provision for
asset impairment,
net of tax -- (1,766)
-------- --------
Net income (loss) $ 1,065 $ (855)
======== ========
Diluted earnings
(loss) per share:
Net earnings
excluding asset
impairment $ 0.10 $ 0.09
Provision for
asset impairment,
net of tax -- (0.18)
Net income (loss) $ 0.10 $ (0.09)
======== ========
Condensed Income Statements
For the twenty-four weeks ended
(Restated)
June 14, 2005 June 15, 2004
----------------- -----------------
$ % $ %
----------------- -----------------
Food and beverage $ 70,826 94.2 $ 60,442 93.0
Entertainment and other 4,371 5.8 4,546 7.0
-------- -------- -------- --------
Total net sales 75,197 100.0 64,988 100.0
Costs and expenses:
Costs of sales 20,101 26.7 17,732 27.3
Restaurant operating
expenses 39,949 53.1 33,978 52.3
Depreciation and
amortization 4,259 5.7 3,537 5.4
Preopening costs 953 1.3 1,070 1.6
Asset Impairment -- -- 2,523 3.9
-------- -------- -------- --------
Restaurant costs
and expenses 65,262 86.8 58,840 90.5
-------- -------- -------- --------
Restaurant operating
income 9,935 13.2 6,148 9.5
General and
administrative
expenses 4,025 5.3 3,494 5.4
Gain on disposal
of assets 25 -- -- --
-------- -------- -------- --------
Income from operations 5,935 7.9 2,654 4.1
Other income/expense:
Other income/(expense) 15 -- 3 --
Interest expense (82) (0.1) (96) (0.1)
-------- -------- -------- --------
Income before income
taxes 5,868 7.8 2,561 4.0
Income tax expense 1,815 2.4 775 1.2
-------- -------- -------- --------
Net income $ 4,053 5.4 $ 1,786 2.8
======== ======== ======== ========
Earnings per share:
Basic $ 0.41 $ 0.18
Diluted $ 0.39 $ 0.17
Shares used in
computing earnings
per share
(in thousands):
Basic 9,979 9,870
Diluted 10,397 10,465
Restaurants open
at end of period 80 69
Comparable sales growth (0.1)% 0.8%
Analysis of Components of Net Income and Earnings per Share Amounts
-------------------------------------------------------------------
Net earnings
excluding asset
impairment $ 4,053 $ 3,552
Provision for
asset impairment,
net of tax -- (1,766)
-------- --------
Net income (loss) $ 4,053 $ 1,786
======== ========
Diluted earnings
(loss) per share:
Net earnings
excluding asset
impairment $ 0.39 $ 0.34
Provision for
asset impairment,
net of tax -- (0.17)
-------- --------
Net income (loss) $ 0.39 $ 0.17
======== ========
Fox & Hound Restaurant Group
Unaudited Summary Financial Data
($ in thousands except per share amounts)
Reconciliation of Restated Income Statements
--------------------------------------------
For the twelve weeks ended June 15, 2004
As originally Adjustment As restated
reported
------------------ -------- ------------------
$ % $ $ %
-------- -------- -------- -------- --------
Food and beverage $ 29,021 93.2 $ -- $ 29,021 93.2
Entertainment and
other 2,120 6.8 -- 2,120 6.8
-------- -------- -------- -------- --------
Total net sales 31,141 100.0 -- 31,141 100.0
Costs and expenses:
Costs of sales 8,616 27.7 -- 8,616 27.7
Restaurant
operating
expenses 16,998 54.6 (3) 16,995 54.6
Depreciation and
amortization 1,554 4.9 248 1,802 5.8
Preopening costs 638 2.0 - 638 2.0
Asset Impairment 2,365 7.6 158 2,523 8.1
-------- -------- -------- -------- --------
Restaurant costs
and expenses 30,171 96.8 403 30,574 98.2
-------- -------- -------- -------- --------
Restaurant
operating income 970 3.2 (403) 567 1.8
General and
administrative
expenses 1,749 5.5 -- 1,749 5.6
Gain on disposal
of assets -- -- -- -- --
-------- -------- -------- -------- --------
Income from
operations (779) (2.3) (403) (1,182) (3.8)
Other income/expense:
Other
income/(expense) -- -- -- -- --
Interest expense (27) (0.1) (17) (44) (0.1)
-------- -------- -------- -------- --------
Income before
income taxes (806) (2.4) (420) (1,226) (3.9)
Income tax
expense (290) (0.9) (81) (371) (1.2)
-------- -------- -------- -------- --------
Net income $ (516) (1.5) $ (339) $ (855) (2.7)
======== ======== ======== ======== ========
Earnings per share:
Basic $ (0.05) $ (0.04) $ (0.09)
Diluted $ (0.05) $ (0.04) $ (0.09)
Reconciliation of Restated Income Statements
--------------------------------------------
For the twenty-four weeks ended June 15, 2004
As originally Adjustment As restated
reported
------------------ -------- ------------------
$ % $ $ %
-------- -------- -------- -------- --------
Food and beverage $ 60,442 93.0 $ -- $ 60,442 93.0
Entertainment and
other 4,546 7.0 -- 4,546 7.0
-------- -------- -------- -------- --------
Total net sales 64,988 100.0 -- 64,988 100.0
Costs and expenses:
Costs of sales 17,732 27.3 -- 17,732 27.3
Restaurant
operating
expenses 33,970 52.3 8 33,978 52.3
Depreciation and
amortization 3,058 4.7 479 3,537 5.4
Preopening costs 1,070 1.6 -- 1,070 1.6
Asset Impairment 2,365 3.6 158 2,523 3.9
-------- -------- -------- -------- --------
Restaurant costs
and expenses 58,195 89.5 645 58,840 90.5
-------- -------- -------- -------- --------
Restaurant
operating income 6,793 10.5 (645) 6,148 9.5
General and
administrative
expenses 3,494 5.5 -- 3,494 5.4
Gain on disposal
of assets -- -- -- -- --
-------- -------- -------- -------- --------
Income from
operations 3,299 5.0 (645) 2,654 4.1
Other income/expens:
Other
income/(expense) 3 -- -- 3 --
Interest expense (62) (0.1) (34) (96) (0.1)
-------- -------- -------- -------- --------
Income before
income taxes 3,240 4.9 (679) 2,561 4.0
Income tax
expense 1,082 1.7 (307) 775 1.2
-------- -------- -------- -------- --------
Net income $ 2,158 3.2 $ (372) $ 1,786 2.8
======== ======== ======== ======== ========
Earnings per share:
Basic $ 0.22 $ (0.04) $ 0.18
Diluted $ 0.21 $ (0.04) $ 0.17
Condensed Balance Sheets
Jun. 14, Dec. 28,
2005 2004
-------- --------
Current assets:
Cash $ 644 $ 812
Other current assets 5,255 6,093
-------- --------
5,899 6,905
Property and equipment, net 76,147 68,381
Intangibles and other assets 5,023 5,281
-------- --------
$ 87,069 $ 80,567
======== ========
Current liabilities:
Current portion of
capital leases $ 8 $ 8
Other current liabilities 15,876 13,133
-------- --------
15,884 13,141
Notes payable 2,510 3,680
Obligations under capital
lease, net of current portion 885 889
Accrued Rent 8,341 7,938
Other noncurrent liabilities 1,898 1,830
Stockholders' equity 57,551 53,089
-------- --------
$ 87,069 $ 80,567
-------- --------