BACK YARD BURGERS TO INCUR FOURTH QUARTER CHARGE RELATED TO ACCOUNTING CHANGE.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)--Jan. 31, 1996--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 that the Company will incur 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. which will affect earnings for the fourth quarter of 1995. This charge of approximately $2.6 million, or $.57 per share, is being taken as a result of the Company's adoption of the new Statement of Financial Accounting Standards No. 121 (FAS 121) and is related to carrying values of certain intangible and long-lived assets associated with certain restaurants that comprise a portion of the Company's wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Little Rock Back Yard Burgers, Inc. Other than the impact on fourth quarter earnings, this adoption will have no effect on the Company's operations. In certain circumstances, FAS 121 requires an immediate write-down for some long-lived assets and intangible items that would have been charged against income in future years. The adoption of this standard will result in an annual reduction of amortization and depreciation expense of approximately $170,000 for each of the next 15 years. Back Yard Burgers, Inc. expects to release its preliminary results for 1995 on or about February 15, 1996. Back Yard Burgers operates and franchises quick-service restaurants in Memphis, Little Rock, Nashville and other markets across 15 states. The Company features gourmet hamburgers and chicken sandwiches, name-brand condiments and beverages as well as hand-dipped milkshakes, fresh-squeezed lemonade and fresh-baked cobblers. CONTACT: Back Yard Burgers, Inc. Stephen J. King, 901/367-0888 |
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