Buffets, Inc. Announces Results for Quarter Ended December 18, 2002.Business Editors EAGAN, Minn.--(BUSINESS WIRE)--Jan. 17, 2003 Buffets, Inc., the nation's leading owner and operator of buffet-style restaurants, today reported results for the second quarter of its 2003 fiscal year (the 12-week period ended December December: see month. 18, 2002). Buffets reported sales for the quarter ended December 18, 2002, of $221.2 million, versus sales for the 12-week period ended January January: see month. 2, 2002 (hereinafter here·in·af·ter adv. In a following part of this document, statement, or book. hereinafter Adverb Formal or law from this point on in this document, matter, or case Adv. 1. defined as the comparable quarter in the prior year) of $231.7 million. The reported 4.5% decline in sales for the quarter ended December 18, 2002 was primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to a decline in same store sales Same Store Sales A statistic used in retail industry analysis. It compares sales of stores that have been open for a year or more. Notes: This statistic allows investors to determine what portion of new sales has come from sales growth and what portion from the opening of of 3.7%. This same store sales decline reflected a 1.7% increase in pricing and a 5.4% decline in guest traffic. Additionally, operating weeks were down in the most recent quarter by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 3.1% primarily due to the closure of 21 under-performing units over the past 12 months (10 in fiscal 2003 and 11 in fiscal 2002), partially offset by the opening of six units over the past 12 months. Average weekly sales per unit of $47,021 for the quarter ended December 18, 2002 decreased by 1.6% as compared to average weekly sales per unit during the comparable quarter in the prior year. Net loss for the 12-week period ended December 18, 2002 was $2.5 million, as compared with net income of $3.1 million for the comparable quarter in the prior year. The net loss in fiscal 2003 reflected a pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern charge of approximately $5.4 million (impact on net income of $3.3 million) associated with the completion of a sale and leaseback sale and leaseback The sale of a fixed asset that is then leased by the former owner from the new owner. A sale and leaseback permits a firm to withdraw its equity in an asset without giving up use of the asset. Also called leaseback. transaction with respect to 27 restaurants on December 11, 2002. The fiscal 2003 results also exclude the recognition of approximately $2.5 million in goodwill amortization in conjunction with the adoption of Statement of Accounting Standards No. 142, "Goodwill and Other Intangible Assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. " in January 2002. Under the sale and leaseback transaction Buffets transferred its leasehold An estate, interest, in real property held under a rental agreement by which the owner gives another the right to occupy or use land for a period of time. leasehold n. interests and leasehold improvements Leasehold Improvement Improvements on a leased asset that increase the value of the asset. Notes: A leasehold improvement is classified as an asset that must be depreciated over time. with respect to 27 restaurants for net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of $22.6 million. Buffets simultaneously entered into long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. leases for those restaurants with an aggregate initial annual rental of approximately $3.2 million. This sale and leaseback transaction resulted in a deferred gain of approximately $3.3 million to be accreted over the lives of the respective restaurant leases, ranging from 17 to 25 years. Concurrent At the same time. It implies that multiple processes are taking place simultaneously. See concurrent operation. with this transaction, Buffets repaid $22.5 million of its long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . Sales for the 24-week, year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. period ended December 18, 2002, were $456.7 million, versus sales for the comparable prior year period ended January 2, 2002 of $476.9 million. The reported 4.2% decline in year-to-date 2003 sales was primarily attributable to a decline in same store sales of 3.1%. This same store sales decline reflected a 1.9% increase in pricing and a 5.0% decline in guest traffic. Additionally, 2003 year-to-date operating weeks were down by approximately 3.6% primarily due to the closure of 21 under-performing units over the past 12 months, partially offset by the opening of six units over that same time period. Average weekly sales per unit of $48,511 for the year-to-date period ended December 18, 2002 decreased by 0.7% as compared to average weekly sales per unit during the comparable prior year period. Net income was $2.4 million for the 24-week, year-to-date period ended December 18, 2002, compared with net income of $6.8 million for the comparable prior year period. Year-to-date net income for fiscal 2003 reflected a pretax charge of approximately $5.4 million associated with the consummation CONSUMMATION. The completion of a thing; as the consummation of marriage; (q.v.) the consummation of a contract, and the like. 2. A contract is said to be consummated, when everything to be done in relation to it, has been accomplished. of the sale and leaseback transaction discussed above, largely offset by a $5.0 million reduction in goodwill amortization attributable to the adoption of Statement of Accounting Standards No. 142. Cash provided by operating activities in the second quarter of the 2003 fiscal year totaled $23.4 million, as compared to cash provided by operating activities in the comparable quarter of the prior year of $16.2 million. On a year-to-date basis, Buffets' cash provided by operating activities in 2003 totaled $49.2 million, versus $34.9 million of cash provided by operating activities in the comparable period in the prior year. Buffets currently expects 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. for the third quarter of the 2003 fiscal year (the 16-week period to end on April 9, 2003) to decline by approximately 4.0% to 6.0%. Buffets expects to record a net loss for the third quarter of the 2003 fiscal year of between $0 and $2 million. Buffets will be discussing its operating results in a conference call on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , January 17, 2003, at 11:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy . The conference call phone and ID numbers are 1-888-228-7864 and 7309887, respectively. The conference call leader is 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. Kramp of Buffets. The conference call will be available for playback Playback could mean:
abbr. post meridiem Usage Note: By definition, 12 a.m. . Playback can be reached by dialing 1-800-642-1687. Request conference ID number 7309887. Buffets, Inc. currently operates 386 restaurants in 36 states (365 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, principally as 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), 13 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:
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) restaurants) and franchises 23 buffet restaurants in ten states. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 The statements contained in this release which are not historical facts are 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. that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in, or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by, forward-looking statements. Buffets has tried, whenever possible, to identify these forward-looking statements using words such as "projects," "anticipates," "believes," "estimates," "expects," "plans," "intends," and similar expressions. Similarly, statements herein that describe Buffets' business strategy, outlook, objectives, plans, intentions or goals are also forward-looking statements. The risks and uncertainties involving forward-looking statements include, but are not limited to, general business and economic conditions, negative publicity, the impact of competition, the seasonality of Buffets' business, adverse weather conditions, future commodity prices, fuel and utility costs, labor costs, employment and environmental laws, governmental regulations, and inflation. For a detailed discussion of risks and uncertainties that you should consider, please refer to the "Risk Factors" section contained in Buffets' registration statement filed with the Securities and Exchange Commission on December 27, 2002. These statements reflect Buffets' current beliefs and are based upon information currently available to it. Be advised that developments subsequent to this release are likely to cause these statements to become outdated out·dat·ed adj. Out-of-date; old-fashioned. outdated Adjective old-fashioned or obsolete Adj. 1. with the passage of time. Buffets does not intend, however, to update the guidance provided today prior to its next earnings release.
Buffets, Inc. and Subsidiaries
Condensed consolidated balance sheet
(Unaudited)
(In thousands, except share data)
January 2, December 18,
2002 2002
---------- ------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $27,555 $39,622
Receivables 7,958 6,660
Inventories 18,439 18,201
Prepaid expenses and other current assets 8,529 4,479
Deferred income taxes 15,027 16,231
Due from parent 135 109
---------- ------------
Total current assets 77,643 85,302
PROPERTY AND EQUIPMENT, net 203,742 170,526
GOODWILL 312,163 312,163
ASSETS HELD FOR SALE 28,352 23,471
DEFERRED INCOME TAXES 1,000 1,502
OTHER ASSETS, net 14,878 15,291
---------- ------------
Total assets $637,778 $608,255
========== ============
LIABILITIES AND SHAREHOLDER'S EQUITY (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $29,028 $34,750
Accrued liabilities 83,654 106,409
Income taxes payable 5,123 1,539
Current maturities of long term debt 42,224 2,450
---------- ------------
Total current liabilities 160,029 145,148
LONG-TERM DEBT, net of current maturities 305,996 440,960
DEFERRED LEASE OBLIGATIONS 18,463 18,800
OTHER LONG-TERM LIABILITIES 4,632 7,754
---------- ------------
Total liabilities 489,120 612,662
SHAREHOLDER'S EQUITY (DEFICIT)
Common stock; $.01 par value, 100 shares
authorized; 100 shares issued and
outstanding - -
Additional paid-in capital 135,371 -
Retained earnings (accumulated deficit) 13,287 (4,407)
---------- ------------
Total shareholder's equity (deficit) 148,658 (4,407)
---------- ------------
Total liabilities and shareholder's
equity (deficit) $637,778 $608,255
========== ============
Buffets, Inc. and Subsidiaries
Condensed consolidated statements of operations
(Unaudited)
(In thousands)
Twelve Weeks Ended Twenty-Four Weeks Ended
----------------------- -----------------------
January 2, December 18, January 2, December 18,
2002 2002 2002 2002
---------- ------------ ---------- ------------
RESTAURANT SALES $231,668 $221,189 $476,913 $456,687
RESTAURANT COSTS:
Food 69,608 69,605 146,951 142,671
Labor 73,424 72,161 149,815 145,909
Direct and
occupancy (1) 53,173 50,991 108,209 104,970
---------- ------------ ---------- ------------
Total
restaurant
costs 196,205 192,757 404,975 393,550
ADVERTISING EXPENSES 5,142 7,293 11,194 14,052
GENERAL AND
ADMINISTRATIVE
EXPENSES 12,793 10,768 23,754 21,526
LOSS ON SALE AND
LEASEBACK TRANSACTION - 5,434 - 5,434
GOODWILL AMORTIZATION 2,484 - 4,967 -
---------- ------------ ---------- ------------
OPERATING INCOME 15,044 4,937 32,023 22,125
INTEREST EXPENSE 9,146 9,999 18,573 19,892
INTEREST INCOME (200) (111) (429) (231)
OTHER INCOME (242) (391) (547) (593)
---------- ------------ ---------- ------------
INCOME (LOSS) BEFORE
INCOME TAXES 6,340 (4,560) 14,426 3,057
INCOME TAX EXPENSE
(BENEFIT) 3,214 (2,046) 7,601 679
---------- ------------ ---------- ------------
Net income
(loss) $3,126 $(2,514) $6,825 $2,378
========== ============ ========== ============
(1) Fiscal 2003 quarterly and year-to-date direct and occupancy
expenses are reduced by approximately $1.2 million received on an
insurance claim related to prior years.
Buffets, Inc. and Subsidiaries
Condensed consolidated statements of cash flows
(Unaudited)
(In thousands)
Twelve Weeks Ended Twenty-Four Weeks Ended
----------------------- -----------------------
January 2, December 18, January 2, December 18,
2002 2002 2002 2002
---------- ------------ ---------- ------------
OPERATING ACTIVITIES:
Net income (loss) $3,126 $(2,514) $6,825 $2,378
Adjustments to
reconcile net income
(loss) to net cash
provided by
operating
activities:
Depreciation and
amortization 12,361 8,826 24,399 18,094
Amortization of
debt issuance cost 902 451 1,803 888
Deferred income
taxes (1,191) 267 695 1,092
Accretion of
original issue
discount 178 171 357 341
Deferred interest 296 - 587 -
Loss on disposal of
assets 80 186 216 217
Loss on sale and
leaseback
transaction - 5,434 - 5,434
Changes in assets
and liabilities:
Receivables (3,779) 1,418 (4,631) 2,164
Inventories (74) 225 621 431
Prepaid expenses
and other
current assets (1,534) 2,101 (1,652) 5,607
Due from parent 89 - 13 (97)
Accounts payable (938) 682 (1,351) (677)
Accrued and
other
liabilities 8,264 8,732 10,007 14,552
Income tax
payable (1,615) (2,605) (2,995) (1,265)
---------- ------------ ---------- ------------
Net cash
provided by
operating
activities 16,165 23,374 34,894 49,159
---------- ------------ ---------- ------------
INVESTING ACTIVITIES:
Proceeds from sale
and leaseback
transaction 39,075 22,580 39,075 22,580
Purchase of fixed
assets (11,796) (9,126) (18,038) (14,449)
Proceeds from sale of
other assets 1,651 162 1,651 162
Purchase of other
assets (76) - (374) (229)
---------- ------------ ---------- ------------
Net cash
provided by
investing
activities 28,854 13,616 22,314 8,064
---------- ------------ ---------- ------------
FINANCING ACTIVITIES:
Repayment of debt (40,396) (23,148) (44,896) (23,148)
Debt issuance costs (823) (214) (823) (2,757)
---------- ------------ ---------- ------------
Net cash
used in
financing
activities (41,219) (23,362) (45,719) (25,905)
---------- ------------ ---------- ------------
NET CHANGE IN CASH AND
CASH EQUIVALENTS 3,800 13,628 11,489 31,318
CASH AND CASH
EQUIVALENTS, beginning
of period 23,755 25,994 16,066 8,304
---------- ------------ ---------- ------------
CASH AND CASH
EQUIVALENTS, end of
period $27,555 $39,622 $27,555 $39,622
========== ============ ========== ============
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