BACK YARD BURGERS REPORTS FOURTH QUARTER RESULTS.MEMPHIS Memphis, city, ancient Egypt Memphis (mĕm`fĭs), ancient city of Egypt, capital of the Old Kingdom (c.3100–c.2258 B.C.), at the apex of the Nile delta and 12 mi (18 km) from Cairo. , Tenn.--(BUSINESS WIRE)--Feb. 20, 1997--Back Yard Burgers, Inc. (Nasdaq Small Cap:BYBI BYBI Backyard Burgers, Inc. ; CHX See Chicago Stock Exchange. CHX See Chicago Stock Exchange (CHX). :BYB BYB The ISO 4217 currency code for Belarus Rouble. ) today announced results for the fourth quarter and fifty-two weeks ended December 28, 1996. Total revenues for the thirteen weeks ended December 28, 1996, rose 9.5% to $6,192,000 from $5,655,000 in the fourth quarter of 1995, reflecting primarily sales from the addition of one new Company-operated store and the increased royalty fees from the addition of eleven franchised units in 1996. The Company reported a net loss for the quarter of $56,000 or $.01 per share compared with a net loss of $2,966,000 or $.65 per share in the same period last year. For 1995, the fourth quarter results include a non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. of $2,564,000 or $.57 per share for impaired assets Impaired Asset An asset with a market value that is worth less than its book value. Notes: If the sum of all estimated future cash flows is less than the carrying value of the asset, then the asset would be considered impaired and would have to be written down to its fair (related to the adoption of a new accounting standard), as well as a charge of $100,000 related to a note receivable note receivable A debt due from borrowers and evidenced by a written promise of payment. Note receivable, an entry on the asset side of many corporate balance sheets, indicates the dollar amount of loans due to be repaid by borrowers. from a former modular building Modular buildings are sectional prefabricated buildings that are manufactured in a plant, and delivered to the customer in one or more complete modular sections. Modular buildings are considerably different from mobile homes. supplier which declared bankruptcy. Excluding the above charges, the Company reported a net loss of $302,000 or $.07 per share for the thirteen weeks ended December 30, 1995. For the fifty-two weeks ended December 28, 1996, total revenues rose 5.7% to $24,041,000 compared with $22,743,000 for the prior year. Net income was $357,000 or $.08 per share compared with a net loss of $2,953,000 or $.65 per share in 1995. Excluding the charges detailed above, the net loss for 1995 was $289,000 or $.06 per share. The improved earnings are the result of efficiencies in operating procedures, a decrease in food costs, new franchised store openings and a reduction in depreciation and amortization stemming from the Company's 1995 adoption of Statement of Financial Accounting Standards No. 121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of." Same-store sales Same-store sales is a business term which refers to the revenue generated by one of a retail chain's specific outlets during a certain period of time (often a fiscal quarter or a particular shopping season), compared to an identical period in the past, usually in the previous year. at Company-operated stores were even for the fourth quarter and declined 4.2% for the year. On a system-wide basis, which includes franchised units, same-store sales increased 1.3% for the fourth quarter. For the full year, system-wide same- store sales remained slightly negative at 0.2%. Commenting on the results, Lattimore M. Michael, Chairman and Chief Executive Officer, stated, "Although the Company posted a net loss for the quarter, the results were significantly better than the prior year and continued the positive direction reported in the previous two quarters. We continue to be encouraged by the improvement in earnings compared with the prior year. Same-store sales at Company-operated units were flat during the fourth quarter, however, this breaks a string of seven quarters of negative same-store comparisons at Company-operated units. We are continuing our focus on restaurant operations and marketing programs to restore sales growth to acceptable levels. "We remain committed to improving our system," Michael said. "This includes converting certain of our double drive-thru restaurants to single drive-thru units with indoor dining facilities. The latest conversion was our restaurant in Bartlett, Tennessee Bartlett is a city in Shelby County, Tennessee and a suburb of the Memphis metropolitan area. The population was 40,543 at the 2000 census. History The community from which the City of Bartlett grew was first called Union Depot. , which was completed on January 20, 1997. We are moving forward with plans to convert additional double drive-thru restaurants to the dine-in/drive-thru format. Our strategy is to utilize this delivery system as our norm for the future. The units which have undergone this conversion have experienced an increase in sales almost immediately. We remain committed to strengthening our support and assistance to our franchisees to help them improve their systems, and we encourage their expansion." During the fourth quarter of 1996, one new franchised restaurant opened in Paducah, Kentucky Paducah is a city in McCracken County, Kentucky at the confluence of the Tennessee River and the Ohio River. The population was 26,307 at the 2000 census. It is the county seat of McCracken County. , the first store in that state. Also, one new Company-operated restaurant opened in Benton, Arkansas Benton is the largest city and county seat of Saline CountyGR6, Arkansas, United States. According to 2006 Census Bureau estimates, the population of the city is 27,700, ranking it as the state's 15th largest city, behind West Memphis. . In other actions, one franchised restaurant was converted to a Company-operated store and one Company-operated restaurant, the first Back Yard Burgers restaurant, was converted to a franchised unit. As of December 28, 1996, the Company's restaurant system comprised 81 units, including 34 Company-operated stores and 47 franchised stores. Subsequent to December 28, 1996, a franchised restaurant in Springfield, Missouri Springfield is the third largest city in Missouri. On July 1, 2006, its estimated population was 150,797, of whom 150,790 lived in Greene County and 7 lived in Christian County[1]. It is the county seat of Greene County. , closed, leaving one Back Yard Burgers unit there. Additionally, in January 1997, an underperforming Company-operated restaurant was closed at no material cost to the Company. Back Yard Burgers operates and franchises quick-service restaurants in Memphis, Little Rock, Nashville and other markets across 16 states. The Company features gourmet hamburgers and chicken sandwiches Noun 1. chicken sandwich - a sandwich made with a filling of sliced chicken sandwich - two (or more) slices of bread with a filling between them , name-brand condiments and beverages as well as hand-dipped milkshakes, fresh-squeezed lemonade and fresh-baked cobblers. -0-
BACK YARD BURGERS, INC.
Unaudited Financial Highlights
13 Weeks Ended 52 Weeks Ended
12/28/96 12/30/95 12/28/96 12/30/95
Restaurant sales $5,718,000 $5,294,000 $22,281,000 $21,196,000
Total revenues 6,192,000 5,655,000 24,041,000 22,743,000
Income (loss)
before income
taxes (56,000) (3,101,000) 357,000 (3,060,000)
Income tax provision - (135,000) - (107,000)
Net income (loss) $ (56,000) $(2,966,000) $ 357,000 $(2,953,000)
Earnings (loss)
per share $ (.01) $ (.65) $ .08 $ (.65)
Weighted average
shares
outstanding 4,549,000 4,534,000 4,543,000 4,533,000
CONTACT: Back Yard Burgers Inc., Memphis Stephen J. King, 901/367-0888 |
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