Buffets Holdings, Inc. Announces Results for the Third Quarter and Same Store Sales Guidance for the Fourth Quarter of Fiscal 2005.EAGAN, Minn. -- Buffets Holdings, Inc. ("Buffets Holdings") today reported operating results for its third quarter ended April 6, 2005. Buffets Holdings reported sales of $277.6 million for the 16-week third quarter ended April 6, 2005 as compared with sales of $287.6 million for the third quarter ended April 7, 2004. This decline was primarily due to a reduction in operating weeks, partially offset by an increased average check. During the past twelve months, Buffets Holdings closed 10 restaurants and opened three. Average weekly sales for the third quarter of fiscal 2005 of $49,205 were 0.9% lower than comparable prior year period average weekly sales of $49,659. 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 fiscal 2005 decreased by 1.9% as compared to those reported for the comparable prior year period. This decrease reflected a 3.8% decline in guest traffic and a 1.9% improvement in average check. Net loss for the third quarter of fiscal 2005 was $0.3 million as compared to a net loss of $0.1 million for the third quarter of fiscal 2004. The net loss for the third quarter of fiscal 2004 included pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern charges totaling approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $7.5 million (impact on net income of $4.2 million) associated with the refinancing Refinancing An extension and/or increase in amount of existing debt. of our senior credit facility, an uncompleted senior discount note offering and the early extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of $14.3 million of our 11 1/4% senior subordinated Subordinated A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt. notes. Sales for the 40-week period ended April 6, 2005 were $700.0 million versus sales for the comparable prior year period of $718.5 million. The decline in sales was primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the closure of 10 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, partially offset by the opening of three units, over the past twelve months. Average weekly sales for the first 40 weeks of fiscal 2005 of $49,313 were 0.2% lower than average weekly sales for the comparable prior year period. Same-store sales for the first 40 weeks of fiscal 2005 decreased by 1.3% compared to the comparable prior year period, reflecting a 3.4% decline in guest traffic offset by a 2.1% increase in average check. Net loss for the first 40 weeks of fiscal 2005 was $0.6 million, compared with net income of $6.5 million for the first 40 weeks of fiscal 2004. Net income for the 40 weeks ended April 7, 2004 included a pretax charge of approximately $7.5 million (impact on net income of $4.2 million) associated with the refinancing of our senior credit facility, an uncompleted senior discount note offering and the early extinguishment of $14.3 million of our 11 1/4% senior subordinated notes. Net loss for the first 40 weeks of fiscal 2005 included pretax charges of approximately $1.6 million in severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when expense, a $0.9 million loss on refinancing in connection with the withdrawal of the initial public offering of Income Deposit Securities, a $1.9 million loss related to the early extinguishment of a portion of Buffets, Inc.'s 11 1/4% senior subordinated notes, as well as $1.8 million in losses on disposal primarily associated with the closure of nine restaurants and the cancellation cancellation (See: cancel) CANCELLATION. Its general acceptation, is the act of crossing a writing; it is used sometimes to signify the manual operation of tearing or destroying the instrument itself. Hyde v. Hyde, 1 Eq. Cas. Abr. 409; Rob. of two new store openings. Buffets Holdings also announced that it currently expects same-store sales for the fourth quarter of fiscal 2005 (the 12-week period ending June June: see month. 29, 2005) to range between a one and a three percent improvement versus the comparable period in fiscal 2004. Buffets Holdings will be conducting a conference call to discuss operating results for the quarter ended April 6, 2005, on Thursday Thursday: see week. , May 5, 2005 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 5841222. Roe Hatlen, the Chief Executive Officer of Buffets Holdings, is the conference call leader. In consideration of your fellow participants, the Company 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 , May 13, 2005 at 6:00 p.m. (Eastern). Playback can be reached by dialing 1-800-642-1687 and requesting conference ID number 5841222. Information regarding non-GAAP financial measures discussed in the conference call can be found at www.buffet.com on the financial information page. Buffets Holdings currently operates 354 restaurants in 33 states comprised of 345 buffet restaurants and nine 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 19 buffet restaurants in seven 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, fourth quarter 2005 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 Holdings' 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/Forward-Looking Statements" section contained in Buffets Holdings' 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. which was filed with the Securities and Exchange Commission on September September: see month. 28, 2004. The statements in this release reflect Buffets Holdings' 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 HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, April 6,
2004 2005
---------- ----------
(Unaudited)
(In thousands, except
share data)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents...................... $26,072 $11,842
Restricted cash and cash equivalents........... 16,228 --
Receivables.................................... 6,963 7,533
Inventories.................................... 18,673 18,963
Prepaid expenses and other current assets...... 5,244 10,119
Deferred income taxes.......................... 15,915 15,263
---------- ----------
Total current assets................... 89,095 63,720
PROPERTY AND EQUIPMENT, net...................... 149,618 144,636
GOODWILL......................................... 312,163 312,163
DEFERRED INCOME TAXES............................ 1,033 1,672
OTHER ASSETS, net................................ 15,622 13,460
---------- ----------
Total assets........................... $567,531 $535,651
========== ==========
LIABILITIES AND SHAREHOLDERS' DEFICIT
CURRENT LIABILITIES:
Accounts payable............................... $43,280 $43,563
Accrued liabilities............................ 68,663 64,760
Income taxes payable........................... 4,531 2,915
Current maturities of long-term debt........... 2,300 2,097
---------- ----------
Total current liabilities.............. 118,774 113,335
LONG-TERM DEBT, net of current maturities........ 496,039 469,354
DEFERRED LEASE OBLIGATIONS....................... 21,621 22,942
OTHER LONG-TERM LIABILITIES...................... 7,013 6,830
---------- ----------
Total liabilities...................... 643,447 612,461
SHAREHOLDERS' DEFICIT:
Preferred stock; $.01 par value, 1,100,000
shares authorized; none issued and outstanding
as of June 30, 2004 and April 6, 2005......... -- --
Common stock; $.01 par value, 3,600,000 shares
authorized; 3,185,672 shares issued and
outstanding as of June 30, 2004 and 3,175,135
as of April 6, 2005........................... 32 32
Additional paid in capital..................... -- 14
Accumulated deficit............................ (75,948) (76,856)
---------- ----------
Total shareholders' deficit............ (75,916) (76,810)
---------- ----------
Total liabilities and shareholders'
deficit............................... $567,531 $535,651
========== ==========
BUFFETS HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Sixteen Weeks Ended Forty Weeks Ended
------------------- -------------------
April 7, April 6, April 7, April 6,
2004 2005 2004 2005
--------- --------- --------- ---------
(Unaudited)
(In thousands)
RESTAURANT SALES...............$287,573 $277,567 $718,456 $699,950
RESTAURANT COSTS:
Food......................... 93,235 92,292 233,444 230,532
Labor........................ 87,922 84,842 221,441 211,734
Direct and occupancy......... 66,257 67,303 166,632 169,384
--------- --------- --------- ---------
Total restaurant costs 247,414 244,437 621,517 611,650
ADVERTISING EXPENSES........... 7,198 6,875 19,090 17,720
GENERAL AND ADMINISTRATIVE
EXPENSES...................... 14,515 12,185 33,094 33,035
--------- --------- --------- ---------
OPERATING INCOME............... 18,446 14,070 44,755 37,545
INTEREST EXPENSE............... 11,919 15,068 29,515 36,999
INTEREST INCOME................ (123) (137) (308) (383)
LOSS RELATED TO REFINANCING.... 4,798 24 4,798 859
LOSS RELATED TO EARLY
EXTINGUISHMENT OF DEBT........ 2,727 -- 2,727 1,923
OTHER INCOME................... (285) (297) (1,128) (717)
--------- --------- --------- ---------
INCOME (LOSS) BEFORE INCOME
TAXES......................... (590) (588) 9,151 (1,136)
INCOME TAX EXPENSE (BENEFIT)... (520) (256) 2,700 (511)
--------- --------- --------- ---------
Net income (loss)..... $(70) $(332) $6,451 $(625)
========= ========= ========= =========
BUFFETS HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Forty Weeks Ended
------------------
April 7, April 6,
2004 2005
--------- --------
(Unaudited)
(In thousands)
OPERATING ACTIVITIES:
Net income (loss)................................. $6,451 $(625)
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Depreciation and amortization.................. 26,005 24,942
Amortization of debt issuance cost............. 1,025 1,071
Accretion of original issue discount........... 618 9,163
Write-off of debt issuance cost related to bank
refinancing................................... 4,201 --
Loss related to early extinguishment of debt... 2,727 1,923
Deferred income taxes.......................... 1,906 13
Loss on disposal of assets..................... 192 1,763
Changes in assets and liabilities:
Receivables.................................. (881) (570)
Inventories.................................. (568) (603)
Prepaid expenses and other current assets.... (1,863) (4,875)
Accounts payable............................. (2,010) 384
Accrued and other liabilities................ (6,708) (2,765)
Income taxes payable......................... 744 (1,616)
--------- --------
Net cash provided by operating activities. 31,839 28,205
--------- --------
INVESTING ACTIVITIES:
Proceeds from sale leaseback...................... 2,710 --
Purchase of fixed assets.......................... (27,805) (20,732)
Acquisition of 20% minority interest in Tahoe
Joe's Inc........................................ (370) --
Proceeds from sale (purchase) of other assets..... 2,023 (89)
--------- --------
Net cash used in investing activities..... (23,442) (20,821)
--------- --------
FINANCING ACTIVITIES:
Repayment of debt.................................(172,377) (21,781)
Unrestricted cash proceeds from credit facility... 195,300 --
Initial restricted cash proceeds from credit
facility......................................... 34,700 --
Restricted cash proceeds from credit facility
available as of quarter end...................... (33,528) --
Reduction of restricted cash available for early
extinguishment of debt........................... -- 16,228
Use of restricted cash for early extinguishment of
debt............................................. (1,172) (15,736)
Use of unrestricted cash for early extinguishment
of debt.......................................... (15,300) --
Redemption of subordinated notes.................. (18,311) --
Issuance of stock................................. 184 15
Repurchase of stock............................... (323) (284)
Debt issuance costs............................... (2,693) (56)
--------- --------
Net cash used in financing activities..... (13,520) (21,614)
--------- --------
NET CHANGE IN CASH AND CASH EQUIVALENTS............. (5,123) (14,230)
CASH AND CASH EQUIVALENTS, beginning of period...... 15,855 26,072
--------- --------
CASH AND CASH EQUIVALENTS, end of period............ $10,732 $11,842
========= ========
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the period for --
Interest (net of capitalized interest of $207
and $371)..................................... $33,425 $32,451
========= ========
Income taxes................................... $46 $1,088
========= ========
|
|
Printer friendly
Cite/link
Email
Feedback
Reader Opinion