Buffets, Inc. Announces Most Profitable Quarter in Company History.Business Editors EAGAN, Minn.--(BUSINESS WIRE)--August 2, 2000 Buffets, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : BOCB) reported today the most profitable quarter in its history. For the second quarter (the 12-week period ended July July: see month. 12, 2000), net earnings increased 16.0% to $14,034,000 from $12,101,000 in the comparable quarter in 1999. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of increased 18.5% to $.32 on 45,771,000 shares compared to $.27 on 46,437,000 shares in the second quarter of 1999. Restaurant sales for the quarter increased 7.7% to $240,201,000 from $223,037,000 during the same quarter of 1999. Average weekly sales per restaurant increased 3.7% to $49,650 from $47,902 for the second quarter 1999. Comparable restaurant sales were up 2.7% for the quarter. On a year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. basis (the twenty-eight week period ended July 12, 2000), net earnings increased 22.8% to $27,390,000 from $22,311,000 in the same period in 1999. Diluted earnings per share increased 26.5% to $.62 on 45,482,000 shares compared to $.49 on 47,362,000 shares in the first twenty-eight weeks of 1999. Restaurant sales for the twenty-eight week period increased 8.4% to $542,941,000 from $500,875,000 in 1999. Average weekly sales per restaurant increased year-to-date by 4.3% to $48,119 from $46,128 for the same period in 1999. Comparable restaurant sales were up 3.1% during the first 28 weeks of 2000 as compared to 1999. Commenting on the second quarter, Kerry Kerry, county (1991 pop. 121,894), 1,815 sq mi (4,701 sq km), SW Republic of Ireland. The county town is Tralee. Kerry consists of a series of mountainous peninsulas that extend into the Atlantic. A. Kramp, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and President, stated, "We are pleased to once again post a record quarter for sales and earnings. This was our twelfth consecutive quarter of comparable store sales increases and year over year restaurant margin improvements. Currently, 287 of our buffet A buffet is a meal serving system where patrons serve themselves. It is a popular method of feeding large numbers of people with minimal staff. The term is also used to describe a sideboard, an antique form of furniture which was sometimes used to offer the dishes of a buffet meal restaurants receive television advertising support. We are pleased with the continued success of our broadcast marketing and local store programs. "During the second quarter we opened two new buffet restaurants and one Original Roadhouse road·house n. An inn, restaurant, or nightclub located on a road outside a town or city. roadhouse Noun a pub or restaurant at the side of a road Noun 1. Grill Grill may refer to: In food:
n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. . Another underperforming restaurant was closed in the second quarter. Since July 12, 2000, we have opened three buffet restaurants and plan to open six to eight additional restaurants before year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. . In conclusion, Mr. Kramp stated "We are pleased with the first half of 2000. The investment that we have made in our people, who are passionately committed to exceeding our guests' expectations, has been the key to our continuing success." Buffets, Inc. currently operates 405 restaurants (254 Old Country Buffet Old Country Buffet is a buffet-style, sit-down restaurant chain headquartered in Eagan, Minnesota with locations throughout the United States. Menu Items Old Country Buffet restaurants feature a wide spread of menu items, in the following categories: Its wide selection of food include pizza, hot dogs, hot wings, sliced ham among many others. (R), 12 Original Roadhouse Grill(SM), six Granny's Buffet(R), three Tahoe Ta·hoe , Lake A lake on the California-Nevada border west of Carson City, Nevada. It is a popular resort area. Joe's Joe's, known as G.I. Joe’s prior to April 1 2007, is a sporting goods and auto parts retailer dealer based in Oregon. The Wilsonville, Oregon based company has 26 stores in Oregon and Washington. The company is planning on opening two stores in Idaho in 2007. Famous Steakhouse steak house or steak·house n. A restaurant that specializes in beefsteak dishes. steakhouse Noun a restaurant that specializes in steaks Noun 1. (R), two Country Roadhouse Buffet & Grill(SM), and one Soup soup, liquid food in which different kinds of solid food have been cooked, e.g., meat, fish, fowl, vegetables, cereals, or fruit. Many soups are peculiar to certain localities, e.g. `N Salad Unlimited(SM)) in 37 states and franchises 24 restaurants (five Old Country Buffet and 19 HomeTown Buffet) in ten states. On June June: see month. 5, 2000, the Company announced its agreement to be acquired by Caxton Cax·ton , William 1422?-1491. English printer who published the first book in English, Recuyell of the Historyes of Troye (c. 1475). Noun 1. Iseman Capital, Inc. pursuant to a transaction approved by an independent committee of the Board of Directors. A preliminary proxy statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. has been filed with the Securities and Exchange Commission that provides important information regarding the sale process and the terms and conditions of the proposed transaction. After the SEC's review is completed, the Company will set a meeting date for the shareholders to vote on the transaction and will send definitive proxy materials Proxy Materials Documents regulated by the Securities & Exchange Commission in which a public company outlines its methods and procedures. These documents are used to inform shareholders and solicit votes for corporate decisions, such as the election of directors and other to the shareholders. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. including statements regarding expected restaurant development levels and the potential success of the Company's restaurant concepts. In addition to the factors discussed above, other factors that could cause actual results to differ materially include changes in the cost and supply of food and labor, weather conditions, health and regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. developments and general economic conditions. In addition, the ability of the Company to open new restaurants depends on a number of factors, including its ability to find suitable locations and negotiate acceptable leases and land purchases, its ability to attract and retain qualified restaurant managers and the availability of capital. These and other factors are discussed in the Company's filings with the Securities and Exchange Commission including its Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended December December: see month. 29, 1999, including the sections captioned "Forward-Looking Statements" and "Risk Factors." The Company assumes no obligations to publicly release the results of any revisions or updates to these forward-looking statements to reflect future events or unanticipated occurrences. http://www.buffet.com
Buffets, Inc. and Subsidiaries
Results of Operations
(Unaudited)
Twenty-Eight Weeks Ended
------------------------------
(In thousands, except for per share amounts and average weekly sales)
July 14, July 12, Percent
1999 Percent 2000 Percent Increase
-------- ------- -------- -------- --------
Restaurant sales $500,875 100.0% $542,941 100.0% 8.4%
Restaurant costs:
Food costs 159,533 31.9% 172,326 31.7%
Labor costs 155,076 31.0% 166,908 30.8%
Direct and
occupancy costs 112,930 22.5% 117,742 21.7%
-------- ------- -------- --------
Total restaurant costs 427,539 85.4% 456,976 84.2%
-------- ------- -------- --------
Restaurant profits 73,336 14.6% 85,965 15.8%
Selling, general and
administrative
expenses 37,885 7.5% 42,249 7.8%
Other site closing
costs 1,148 0.2% 1,808 0.3%
-------- ------- -------- --------
34,303 6.9% 41,908 7.7%
Other income 1,683 0.3% 2,272 0.4%
-------- ------- -------- --------
Earnings before
income taxes 35,986 7.2% 44,180 8.1%
Income taxes 13,675 2.7% 16,790 3.1%
-------- ------- -------- --------
Net earnings $22,311 4.5% $27,390 5.0% 22.8%
======== ======= ======== ========
Earnings per share:
Basic $.51 $0.66 29.4%
======== ========
Diluted $.49 $0.62 26.5%
======== ========
Weighted average common
shares assumed
outstanding:
Basic 43,499 41,563
Diluted 47,362 45,482
Number of Company-owned
restaurants open at
end of period 387 403 4.1%
Average weekly sales
of Company-owned
restaurants open at
end of period $46,128 $48,119 4.3%
Twelve Weeks Ended
------------------------
(In thousands, except for per share amounts and average weekly sales)
July 14, July 12, Percent
1999 Percent 2000 Percent Increase
-------- ------- -------- -------- --------
Restaurant sales $223,037 100.0% $240,201 100.0% 7.7%
Restaurant costs:
Food costs 69,492 31.2% 75,649 31.5%
Labor costs 68,050 30.5% 73,275 30.5%
Direct and
occupancy costs 49,763 22.3% 52,000 21.6%
-------- ------- -------- --------
Total restaurant costs 187,305 84.0% 200,924 83.6%
-------- ------- -------- --------
Restaurant profits 35,732 16.0% 39,277 16.4%
Selling, general
and administrative
expenses 16,141 7.2% 17,157 7.2%
Other site closing
costs 819 0.4% 669 0.3%
-------- ------- -------- --------
18,772 8.4% 21,451 8.9%
Other income 744 0.3% 1,188 0.5%
-------- ------- -------- --------
Earnings before
income taxes 19,516 8.7% 22,639 9.4%
Income taxes 7,415 3.3% 8,605 3.6%
-------- ------- -------- --------
Net earnings $12,101 5.4% $14,034 5.8% 16.0%
======== ======= ======== ========
Earnings per share:
Basic $.28 $0.34 21.4%
======== ========
Diluted $.27 $0.32 18.5%
======== ========
Weighted average common
shares assumed
outstanding:
Basic 42,514 41,585
Diluted 46,437 45,771
Number of Company-owned
restaurants open at
end of period 387 403 4.1%
Average weekly sales
of Company-owned
restaurants open at
end of period $47,902 $49,650 3.7%
Condensed Consolidated Balance Sheet
(Unaudited)
(in thousands)
December 29, July 12,
1999 2000
----------- ------------
Assets
Current assets $101,451 $140,339
Property and equipment (net) 353,657 361,566
Goodwill (net) 16,393 15,782
Other assets 6,134 8,065
----------- -----------
$477,635 $525,752
=========== ===========
Liabilities and Stockholders' Equity
Current liabilities $100,656 $119,928
Long-term debt 41,465 41,465
Minority interest 265 318
Deferred income 115
Deferred income taxes 28,866 29,637
Stockholders' equity 306,383 334,289
----------- -----------
$477,635 $525,752
=========== ===========
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