Buffets, Inc. Announces Results for the Year Ended July 2, 2003 and Confirms Sales Guidance for the First Quarter of 2004.Business Editors EAGAN, Minn.--(BUSINESS WIRE)--Sept. 9, 2003 Buffets, Inc. today reported results for its fiscal year ended July July: see month. 2, 2003. Buffets reported sales for the 52-week fiscal year ended July 2, 2003, of $985.3 million, versus sales for the 26-week transitional period ended July 3, 2002 of $527.1 million. In 2002 Buffets changed its fiscal year to end on the Wednesday Wednesday: see week. nearest June June: see month. 30. Previously, Buffets' fiscal year had ended on the Wednesday nearest December December: see month. 31. Average weekly sales for the 2003 fiscal year of $48,953 declined by 2.0% as compared to average weekly sales for the comparative 50-week period ended July 3, 2002. During 2003 Buffets closed 14 units, sold 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:
Net income for the 2003 fiscal year was $13.0 million, compared with a net loss for the 26-week transitional period ended July 3, 2002 of $7.0 million. Net income for fiscal 2003 included pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern charges of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $5.9 million associated with the 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. of 30 restaurants and $4.8 million for the impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of long-lived long-lived adj. 1. Having a long life: a long-lived aunt. 2. Lasting a long time; persistent: a long-lived rumor. 3. assets, partially offset by a pretax gain of $7.1 million on the sale of 13 Original Roadhouse Grill restaurants. The net loss recorded during the 26-week transitional period ended July 3, 2002 included a pretax charge of approximately $38.5 million associated with a refinancing Refinancing An extension and/or increase in amount of existing debt. transaction completed by Buffets during June 2002. Sales for the fourth quarter of the 2003 fiscal year (the 12-week period ended July 2, 2003) totaled $234.9 million, as compared to sales of $206.3 million for the comparative 10-week period ended July 3, 2002. Average weekly sales for the fourth quarter of fiscal 2003 of $51,607 declined by 0.9% as compared to average weekly sales for the comparative 10-week transitional period ended July 3, 2002. Same-store sales for the fourth quarter of fiscal 2003 were down 2.9%, reflecting a 1.8% increase in pricing and a 4.7% decline in guest traffic. Net income for the fourth quarter of the 2003 fiscal year totaled $8.9 million, as compared to a net loss of $15.4 million for the comparative 10-week period ended July 3, 2002. Net income for the fourth quarter of fiscal 2003 included a pretax gain of $7.1 million on the sale of 13 Original Roadhouse Grill restaurants, partially offset by pretax charges of approximately $0.4 million associated with the sale and leaseback of three restaurants and $4.5 million for the impairment of long-lived assets. The net loss recorded during the 10-week period ended July 3, 2002 included a pretax charge of approximately $38.5 million associated with a refinancing transaction. As previously announced, Buffets expects 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 for the first quarter of its 2004 fiscal year (the 12-week period ending September September: see month. 24, 2003) to decline by 2% to 3%. Buffets will be conducting a conference call to discuss operating results for the quarter and fiscal year ended July 2, 2003, on Tuesday Tuesday: see week. , September 9, 2003 at 11:00 a.m. (Eastern). You may access this call starting at 10:45 a.m. (Eastern). The conference phone number is 1-888-228-7864 and the conference ID number is 2144449. 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, the Chief Executive Officer of Buffets, is the conference call leader. In consideration of your fellow participants, Buffets requests that cellular phones not be used. The conference call will be recorded and available for playback Playback could mean:
Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , September 19, 2003 at 6:00 p.m. (Eastern). Playback can be reached by dialing 1-800-642-1687 and requesting conference ID number 2144449. Information regarding non-GAAP financial measures discussed in the conference call can be found at www.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 .com on the financial information page. Buffets currently operates 368 restaurants in 35 states comprised of 360 buffet restaurants and eight 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) restaurants. The buffet restaurants are principally operated under the 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) brands. Buffets also franchises 23 buffet restaurants in ten states. The following is a 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 including, specifically, first quarter 2004 same store sales guidance, 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. The risks and uncertainties involving forward-looking statements include, but are not limited to, general 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, government 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. The statements in this release 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 and no obligation is undertaken to provide updates with respect to the information.
BUFFETS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
July 3, July 2,
2002 2003
---- ----
(in thousands, except
per share amounts)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $8,304 $15,747
Receivables 8,682 6,478
Inventories 18,632 18,462
Prepaid expenses and other current assets 10,098 9,537
Deferred income taxes 19,000 15,216
----------- -----------
Total current assets 64,716 65,440
PROPERTY AND EQUIPMENT, net 198,350 154,140
GOODWILL, net 312,163 312,163
ASSETS HELD FOR SALE 24,952 --
DEFERRED INCOME TAXES -- 2,932
OTHER ASSETS, net 15,445 18,311
----------- -----------
Total assets $615,626 $552,986
=========== ===========
LIABILITIES AND SHAREHOLDER'S EQUITY (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $37,419 $43,777
Accrued liabilities 92,442 77,407
Income taxes payable 2,804 4,787
Current maturities of long-term debt 2,450 1,735
----------- -----------
Total current liabilities 135,115 127,706
LONG-TERM DEBT, net of current maturities 463,767 392,023
DEFERRED LEASE AND OTHER LONG-TERM OBLIGATIONS 23,529 27,602
----------- -----------
Total liabilities 622,411 547,331
----------- -----------
COMMITMENTS AND CONTINGENCIES
SHAREHOLDER'S EQUITY (DEFICIT):
Common stock, $.01 par value, 100 shares
authorized; 100 shares issued and
outstanding -- --
Retained earnings (accumulated deficit) (6,785) 5,655
----------- -----------
Total shareholder's equity (deficit) (6,785) 5,655
----------- -----------
Total liabilities and shareholder's
equity (deficit) $615,626 $552,986
=========== ===========
BUFFETS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the For the
Comparative For the 52-Week For the For the
50-Week 26-Week Fiscal 10-Week 12-Week
Period Transitional Year Quarter Quarter
Ended Period Ended Ended Ended Ended
July 3, July 3, July 2, July 3, July 2,
2002 2002 2003 2002 2003
---- ---- ---- ---- ----
(in thousands)
RESTAURANT
SALES $1,003,997 $527,084 $985,286 $206,329 $234,915
RESTAURANT
COSTS:
Food 309,863 163,649 311,891 64,137 75,824
Labor 314,079 164,264 313,532 63,737 72,470
Direct and
occupancy 225,213 117,004 225,417 45,185 51,464
----------- ------------ --------- --------- ---------
Total
restaurant
costs 849,155 444,917 850,840 173,059 199,758
ADVERTISING
EXPENSES 26,280 14,349 28,589 5,302 6,721
GENERAL AND
ADMINISTRATIVE
EXPENSES 49,308 25,554 45,382 9,574 10,174
GOODWILL
AMORTIZATION 4,967 -- -- -- --
IMPAIRMENT OF
ASSETS -- -- 4,803 -- 4,547
GAIN ON SALE OF
ORIGINAL
ROADHOUSE GRILL
RESTAURANTS -- -- (7,088) -- (7,088)
LOSS ON SALE
LEASEBACK
TRANSACTIONS -- -- 5,856 -- 422
----------- ------------ --------- --------- ---------
OPERATING INCOME 74,287 42,264 56,904 18,394 20,381
INTEREST EXPENSE 33,595 15,076 40,146 4,544 7,965
INTEREST INCOME (587) (212) (307) (69) (49)
LOSS RELATED TO
REFINANCING 38,476 38,476 -- 38,476 --
OTHER INCOME (1,145) (598) (1,270) (255) (357)
----------- ------------ --------- --------- ---------
INCOME (LOSS)
BEFORE INCOME
TAXES 3,948 (10,478) 18,335 (24,302) 12,822
INCOME TAX
EXPENSE
(BENEFIT) 4,151 (3,450) 5,319 (8,856) 3,892
----------- ------------ --------- --------- ---------
Net income
(loss) $(203) $(7,028) $13,016 $(15,446) $8,930
=========== ============ ========= ========= =========
The information for the 50-week period ended July 3, 2002 was included
for comparison purposes.
BUFFETS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
For the For the
Comparative For the 52-Week For the For the
50-Week 26-Week Fiscal 10-Week 12-Week
Period Transitional Year Quarter Quarter
Ended Period Ended Ended Ended Ended
July 3, July 3, July 2, July 3, July 2,
2002 2002 2003 2002 2003
---- ---- ---- ---- ----
(in thousands)
OPERATING
ACTIVITIES:
Net income
(loss) $(203) $(7,028) $13,016 $(15,446) $8,930
Adjustments to
reconcile net
income (loss)
to net cash
provided by
operating
activities-
Depreciation
and
amortization 44,808 20,409 36,885 7,409 7,995
Amortization
of debt
issuance
costs 3,420 1,617 1,182 556 (344)
Net loss
related to
refinancing:
Write-off
of debt
issuance
costs 11,022 11,022 -- 11,022 --
Accrued
redemption
fees 17,000 17,000 -- 17,000 --
Original
issue
discount
expensed 4,107 4,107 -- 4,107 --
Accretion of
original
issue
discount 714 357 739 119 171
Deferred
interest 1,201 614 -- 210 --
Impairment of
assets -- -- 4,803 -- 4,547
Deferred
income taxes (2,103) (2,798) 677 (1,217) (323)
Gain on sale
of Original
Roadhouse
Grill
restaurants -- -- (7,088) -- (7,088)
Loss on
disposal of
assets 305 89 565 61 239
Loss on sale
leaseback
transactions -- -- 5,856 -- 422
Changes in
current
assets and
liabilities (5,719) (5,731) 1,021 (10,408) (323)
----------- ------------ --------- --------- ---------
Net cash
provided
by
operating
activities 74,552 39,658 57,656 13,413 14,226
----------- ------------ --------- --------- ---------
INVESTING
ACTIVITIES:
Proceeds from
sale leaseback
transactions 41,356 2,281 26,117 -- 3,537
Proceeds from
sale of
Original
Roadhouse
Grill
restaurants -- -- 28,350 -- 28,350
Purchase of
fixed assets (32,318) (14,280) (25,722) (6,349) (4,894)
Net purchase
(proceeds from
sale) of other
assets 1,939 662 (2,083) 1,258 (2,597)
----------- ------------ --------- --------- ---------
Net cash
provided
by (used
in)
investing
activities 10,977 (11,337) 26,662 (5,091) 24,396
----------- ------------ --------- --------- ---------
The information for the 50-week period ended July 3, 2002 was included
for comparison purposes.
BUFFETS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS -- (continued)
For the
For the 26-Week
Comparative Tran- For the For the For the
50-Week sitional 52-Week 10-Week 12-Week
Period Period Fiscal Quarter Quarter
Ended Ended Year Ended Ended Ended
July 3, July 3, July 2, July 3, July 2,
2002 2002 2003 2002 2003
---- ---- ---- ---- ----
(in thousands)
FINANCING
ACTIVITIES:
Repayment of
debt (398,194) (353,298) (73,198) (319,638) (31,482)
Proceeds from
issuance of
long-term debt 466,217 466,217 -- 466,217 --
Capital
distributions (148,415) (148,415) (576) (148,415) (576)
Debt issuance
costs (12,899) (12,076) (3,101) (12,076) (22)
----------- ---------- ---------- --------- ----------
Net cash
used in
financing
activities (93,291) (47,572) (76,875) (13,912) (32,080)
----------- ---------- ---------- --------- ----------
NET CHANGE IN
CASH AND CASH
EQUIVALENTS (7,762) (19,251) 7,443 (5,590) 6,542
CASH AND CASH
EQUIVALENTS,
beginning of
period 16,066 27,555 8,304 13,894 9,205
----------- ---------- ---------- --------- ----------
CASH AND CASH
EQUIVALENTS,
end of period $8,304 $8,304 $15,747 $8,304 $15,747
=========== ========== ========== ========= ==========
SUPPLEMENTAL
CASH FLOW
INFORMATION:
Cash paid
during the
period for-
Interest (net
of
capitalized
interest) $31,048 $16,526 $26,956 $7,938 $2,660
=========== ========== ========== ========= ==========
Income taxes $11,450 $1,587 $3,351 $180 $2,135
=========== ========== ========== ========= ==========
The information for the 50-week period ended July 3, 2002 was included
for comparison purposes.
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