BT Brands, Inc. Reports Results for the Second Quarter Ending July 3, 2022
WEST FARGO, ND / ACCESSWIRE / August 16, 2022 / BT Brands, Inc. (Nasdaq:BTBD)(Nasdaq:BTBDW), operator of Burger Time, Keegan's Seafood Grille, and Pie in the Sky Coffee and Bakery, today reported financial results for the fiscal second quarter ended July 3, 2022.
Key highlights of the Company's financial results include:
Total Revenues increased 47.9% to $3.5 million for the quarter compared to the prior year's quarter and increased 29.5% to $5.6 million year-to-date compared to the previous year period
Completed acquisition of Pie in the Sky Coffee and Bakery located in Woods Hole, Massachusetts entering the dynamic retail coffee and breakfast market with a major tourist-driven location
The Company ended the quarter with $8.3 million in cash on hand
Acquired 41.2% of Bagger Dave's Burger Tavern, Inc. operator of six Bagger Dave's restaurants
Same Store Sales for company-owned Burger Time restaurants decreased 12.4% for the quarter compared to the prior year quarter and declined 10.5% year-to-date compared to the prior year period
Net loss was $49,625 for the quarter, and the net loss was $92,275 year-to-date
Gary Copperud, the Company's Chief Executive Officer, said, "Our results this quarter reflect the positive contribution of our recent acquisitions offset by a decline in revenues at Burger time as dining activities returned to more closely resemble the pre-pandemic. The Company also faced inflationary pressures on both costs of sales and labor wage rates. I'm excited about all three of our recent restaurant acquisitions, which we expect will exceed our target returns and contribute to a doubling of sales for fiscal 2022 compared to 2021.
Fiscal 2022 Outlook: Because of the uncertain nature of the performance of recent acquisitions and the evolving character of our Company and because of continuing uncertainty surrounding public health concerns and the aftermath, impacts of supply chain constraints, and the current inflationary environment, the Company is not, at this point, providing a financial forecast for fiscal 2022.
About BT Brands Inc.: BT Brands, Inc. (Nasdaq: BTBD BTBDW) BT Brands owns and operates thirteen restaurants, including nine Burger Time restaurants in the North Central region of the United States, a Dairy Queen fast-food franchised location in suburban Minneapolis, Minnesota. The Company owns Keegan's Seafood Grille, a dine-in restaurant near Clearwater, Florida, and Pie In The Sky Coffee and Bakery, a casual dining coffee shop and bakery located in Woods Hole, Massachusetts. Our Burger Time restaurants feature a variety of burgers and other affordable foods, sides, and soft drinks. Keegan's Seafood Grille has operated in Indian Rocks Beach, Florida, for more than thirty-five years and offers a variety of traditional fresh seafood items for lunch and dinner. The menu at Keegan's includes beer and wine. Pie In The Sky features an array of fresh baked goods, freshly made sandwiches, and our locally roasted coffee. Our revenues are derived from food and beverages at our restaurants; retail goods such as apparel, private-labeled "Keegan's Hot Sauce," and other souvenir items account for an insignificant portion of our income. Following the end of the quarter, we acquired the Village Bier Garten located in Cocoa, Florida.
Forward-Looking Statements Disclaimer: This press release contains forward-looking statements within the meaning of federal securities laws. The words "intend," "may," "believe," "will," "should," "anticipate," "expect," "seek," and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, which may cause the Company's actual results to differ materially from results expressed or implied by the forward-looking statements. Such risks and uncertainties include, among other things, the market price of the Company's stock prevailing from time to time, the nature of other investment opportunities presented to the Company, the Company's financial performance, and its cash flows from operations, general economic conditions, which could adversely affect the Company's results of operations and cash flows. These risks also include such factors as the disruption to our business from public health issues, including the coronavirus pandemic and its impact on our operations, which may vary depending on the duration and extent of the effects of governmental actions and customer behavior in response, the impact and duration of staffing constraints at our restaurants, the impact of supply chain constraints and the current inflationary environment, the uncertain nature of current restaurant development plans and the ability to implement those plans and integrate new restaurants, delays in developing and opening new restaurants because of weather, local permitting or other reasons, increased competition, cost increases or shortages in raw food products, and other matters discussed under the Risk Factors section of BT Brands Annual Report on Form 10-K for the fiscal year ended March 17, 2022, filed with the SEC, and other filings with the SEC. BT Brands disclaims any obligation or duty to update or modify these forward-looking statements.
Category: Financial
BT BRANDS, INC. AND SUBSIDIARIES
FINANCIAL TABLES FOLLOW:
BT BRANDS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
26 Weeks Ended | 26 Weeks Ended, | 13 Weeks Ended, | 13 Weeks Ended, | |||||||||||||
July 3, | July 4, | July 3, | July 4, | |||||||||||||
SALES | $ | 5,598,076 | $ | 4,323,555 | $ | 3,524,881 | $ | 2,382,683 | ||||||||
COSTS AND EXPENSES | ||||||||||||||||
Restaurant operating expenses | ||||||||||||||||
Food and paper costs | 2,032,956 | 1,636,053 | 1,311,373 | 908,760 | ||||||||||||
Labor costs | 1,786,828 | 1,186,719 | 1,179,118 | 621,227 | ||||||||||||
Occupancy costs | 435,920 | 303,654 | 261,282 | 167,106 | ||||||||||||
Other operating expenses | 332,181 | 252,081 | 212,314 | 128,872 | ||||||||||||
Depreciation and amortization expenses | 178,701 | 113,394 | 109,286 | 58,558 | ||||||||||||
General and administrative expenses | 746,717 | 220,982 | 455,656 | 110,983 | ||||||||||||
Total costs and expenses | 5,513,303 | 3,712,883 | 3,529,029 | 1,995,506 | ||||||||||||
Income from operations | 84,773 | 610,672 | (4,148 | ) | 387,177 | |||||||||||
UNREALIZED LOSS ON MARKETABLE SECURITIES | (80,238 | ) | - | (80,238 | ) | - | ||||||||||
INTEREST AND OTHER INCOME | 9,473 | - | 9,473 | - | ||||||||||||
INTEREST EXPENSE | (54,461 | ) | (128,232 | ) | (26,190 | ) | (89,661 | ) | ||||||||
EQUITY IN NET LOSS OF AFFILIATE | (14,172 | ) | - | (14,172 | ) | - | ||||||||||
INCOME (LOSS) BEFORE TAXES | (54,625 | ) | 482,440 | (115,275 | ) | 297,516 | ||||||||||
INCOME TAX (EXPENSE) BENEFIT | 5,000 | (135,000 | ) | 23,000 | (85,000 | ) | ||||||||||
NET INCOME (LOSS) | $ | (49,625 | ) | $ | 347,440 | $ | (92,275 | ) | $ | 212,516 | ||||||
NET INCOME (LOSS) PER COMMON SHARE - Basic and Diluted | $ | (0.01 | ) | $ | 0.09 | $ | (0.01 | ) | $ | 0.05 | ||||||
WEIGHTED AVERAGE SHARES | 6,458,276 | 4,047,502 | 6,461,118 | 4,047,502 | ||||||||||||
BT BRANDS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
July 3, | January 2, | |||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash | $ | 8,295,952 | $ | 12,385,632 | ||||
Marketable securities | 527,750 | - | ||||||
Receivables | 36,058 | 72,251 | ||||||
Inventory | 146,892 | 79,510 | ||||||
Prepaid expenses and other current assets | 53,460 | 27,186 | ||||||
Total current assets | 9,060,112 | 12,564,579 | ||||||
PROPERTY, EQUIPMENT AND LEASEHOLD IMPROVEMENTS, NET | 2,977,153 | 1,592,338 | ||||||
OPERATING LEASES RIGHT-OF-USE ASSETS | 1,146,167 | - | ||||||
INVESTMENTS | 1,549,828 | 75,000 | ||||||
GOODWILL | 488,431 | - | ||||||
INTANGIBLE ASSETS | 425,000 | - | ||||||
OTHER ASSETS, net | 285,285 | 273,810 | ||||||
Total assets | $ | 15,931,986 | $ | 14,505,727 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 498,257 | $ | 291,973 | ||||
Current maturities of long-term debt | 171,358 | 169,908 | ||||||
Current operating lease obligations | 134,188 | - | ||||||
Accrued expenses | 575,790 | 254,341 | ||||||
Income taxes payable | 8,000 | 209,088 | ||||||
Total current liabilities | 1,387,593 | 925,310 | ||||||
LONG-TERM DEBT, LESS CURRENT PORTION | 2,750,279 | 2,833,064 | ||||||
NONCURRENT LEASE OBLIGATIONS | 1,015,610 | - | ||||||
DEFERRED INCOME TAXES | 51,510 | 119,000 | ||||||
Total liabilities | 5,204,992 | 3,877,374 | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
SHAREHOLDERS' EQUITY | ||||||||
6,447,506 shares issued and outstanding at July 3, 2022 | ||||||||
and January 2, 2022, respectively | 12,922 | 12,895 | ||||||
Additional paid-in capital | - | 11,363,935 | ||||||
Accumulated deficit | (649,863 | ) | (600,238 | ) | ||||
Total shareholders' equity | (10,726,994 | ) | 10,628,353 | |||||
Total liabilities and shareholders' equity | $ | 15,931,986 | $ | 14,505,727 | ||||
SOURCE: BT Brands, Inc.
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