CEC Entertainment, Inc. Reports First Quarter Earnings.IRVING, Texas Irving (pronounced 'er-ving') is a city located in the U.S. state of Texas within Dallas County. According to the 2000 U.S. Census, the city population was 191,615; the 2006 estimate was 201,927 according to the North Central Texas Council of Governments, and 196,084 according to -- CEC (Central Electronic Complex) The set of hardware that defines a mainframe, which includes the CPU(s), memory, channels, controllers and power supplies included in the box. Some CECs, such as IBM's Multiprise 2000 and 3000, include data storage devices as well. Entertainment, Inc. (NYSE NYSE See: New York Stock Exchange :CEC) today announced earnings for the first quarter ended April 1, 2007. Revenues for the first quarter of 2007 increased to $232.9 million from $227.0 million in the first quarter of 2006 primarily due to new store development and an increase in comparable store sales of 0.5%. Net income in the first quarter of 2007 increased to $32.0 million from $28.9 million in the same period of 2006. 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 in the first quarter of 2007 increased 13% to $0.95 per share from $0.84 per share in the first quarter of 2006. Richard M. Frank, Chairman and Chief Executive Officer, stated that, "We are pleased with the solid performance of our restaurants despite a challenging consumer environment in the casual dining sector and severe winter weather impacting much of the country during the quarter. Comparable store sales have increased 1.4% through the first seventeen weeks of this year. We believe the refined strategies we announced in mid 2006 are positively impacting sales and earnings and over the long-term will deliver an excellent experience for our guests and solid performance for our shareholders." Based on current estimates, the Company expects diluted earnings per share to range from $2.25 to $2.30 per share for the 2007 fiscal year reflecting an annual growth rate of 10% to 13%. Estimates for fiscal year 2007 assume an increase in comparable store sales of 2.0% to 2.5%, 10 new restaurant openings and capital expenditures of approximately $90 to $92 million. Diluted earnings per share are expected to range from $0.33 to $0.35 per share for the second quarter of 2007 and $0.60 to $0.62 per share for the third quarter of 2007. In addition, the Company announced that on April 23, 2007 the Company filed all outstanding reports required to be filed with the U.S. Securities and Exchange Commission ("SEC") bringing the Company into compliance with the reporting requirements of the SEC and the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. , as well as reinstating the effectiveness of the Company's registration statements on Form S-8. The Company's management will discuss the results for the first quarter on a conference call and simultaneous webcast on May 1, 2007 at 3:30 p.m. Central Time. The webcast can be accessed through the Company's website at www.chuckecheese.com. Certain statements in this press release, other than historical information, may be considered 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. , within the meaning of the "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. " provisions of 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, and is subject to various risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may differ from those anticipated, estimated or expected. Among the key factors that may have a direct bearing on CEC's operating results, performance or financial condition are its ability to implement its growth strategies; national, regional and local economic conditions affecting the restaurant/entertainment industry; competition within each of the restaurant and entertainment industries; success of its franchise operations; negative publicity; health epidemics or pandemics; acts of God; terrorists acts; litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. ; demographic trends; fluctuations in quarterly results of operations, including seasonality; government regulations; weather; school holidays; increased commodity, utility, insurance, and advertising and labor costs. CEC Entertainment, Inc. operates a system of 529 Chuck E. Cheese's <noinclude></noinclude> Chuck E. Cheese's is a chain of family entertainment centers. The concept centers around a basic sit-down pizza restaurant, complemented by arcade games, small rides, animatronic characters, and other popular diversions for young restaurants in 48 states, of which 485 are owned and operated by the Company. [TABLE OMITTED] |
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