CEC Entertainment, Inc. Reports Record Third Quarter Results.Business Editors IRVING Irving, city (1990 pop. 155,037), Dallas co., N Tex., a suburb of Dallas; inc. as a city 1952. Building supplies, chemicals, electronic equipment, and airplane parts are manufactured in Irving. , Texas--(BUSINESS WIRE)--Oct. 15, 2003 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 record earnings for the third quarter ended September September: see month. 28, 2003. Revenues for the third quarter of 2003 increased to $170.1 million from $148.9 million in the third quarter of 2002. Net income in the third quarter of 2003 increased to $16.8 million from $16.5 million in the same period of 2002. Earnings per share on a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis increased to $0.64 per share in the third quarter of 2003 from $0.59 per share in the third quarter of 2002. Financial results in the third quarter of 2003 include a pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta charge of $4.25 million related to the settlement of pending 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. . The Company has issued a separate press release simultaneously si·mul·ta·ne·ous adj. 1. Happening, existing, or done at the same time. See Synonyms at contemporary. 2. Mathematics with this press release that describes the litigation and settlement in greater detail. Revenues for the first nine months of 2003 increased to $507.1 million from $464.1 million in the first nine months of 2002. Net income in the first nine months of 2003 increased to $59.0 million from $58.7 million in the same period of 2002. Earnings per share on a diluted basis in the first nine months of 2003 increased to $2.18 per share from $2.06 per share in the first nine months of 2002. Mike Magusiak, President said, "Strong sales performance in the third quarter resulted in a 14.2% increase in revenues and a 5.3% increase in comparable store sales. 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 quarter increased 8.5% despite an after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. charge of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $0.10 per diluted share related to the settlement of pending litigation. Strong cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses of $122 million during the first nine months of the year enabled the Company to fund $61 million of capital expenditures and repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. almost $72 million of treasury shares. During the third quarter, the Company completed a $25 million stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: in June June: see month. of this year and repurchased another $37 million of treasury shares under the current $50 million stock repurchase program." Mr. Magusiak further added, "Assuming a modest increase in comparable store sales and an increase in food costs of approximately $1.2 million due to higher cheese prices in the fourth quarter, we expect diluted earnings per share to range from $0.44 to $0.45 per diluted share in the fourth quarter of 2003. Based on our initial outlook, we estimate earnings for 2004 of approximately $3.00 to $3.05 per diluted share." Richard Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000. Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a M. Frank, Chairman and Chief Executive Officer stated that, "We are pleased with the strong operating performance of our stores in the third quarter and believe our 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. strategies of reinvesting in our core stores, increasing the number of stores through new store development and building on operational execution will create long-term value for our shareholders." 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 are subject to various risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize ma·te·ri·al·ize v. ma·te·ri·al·ized, ma·te·ri·al·iz·ing, ma·te·ri·al·iz·es v.tr. 1. To cause to become real or actual: By building the house, we materialized a dream. , or should underlying assumptions prove incorrect Incorrect means to not be correct and may also refer to:
v. can·ni·bal·ized, can·ni·bal·iz·ing, can·ni·bal·iz·es v.tr. 1. To remove serviceable parts from (damaged airplanes, for example) for use in the repair of other equipment of the same , success of its franchise operations, negative publicity, fluctuations in quarterly results of operations, including seasonality, government regulations, weather, school holidays, commodity, insurance and labor costs. CEC Entertainment, Inc. operates a system of 455 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 47 states, of which 404 are owned and operated by the Company.
CEC ENTERTAINMENT, INC.
RESULTS OF OPERATIONS
(Unaudited)
(Thousands, except per share data)
Quarter Ended Year to Date Ended
09/28/03 09/29/02 09/28/03 09/29/02
--------- --------- --------- ---------
Revenues:
Food and beverage $112,286 $97,561 $334,363 $307,680
Games and merchandise 56,886 50,518 170,150 153,723
Franchise fees and
royalties 962 731 2,620 2,434
Interest income 4 111 16 293
--------- --------- --------- ---------
170,138 148,921 507,149 464,130
Costs and expenses:
Cost of sales 75,027 65,598 221,419 203,301
Selling, general and
administrative expenses 25,158 18,105 65,793 56,530
Depreciation and
amortization 11,381 9,978 33,338 28,651
Interest expense 503 332 967 881
Other operating expenses 30,553 27,837 89,214 78,762
--------- --------- --------- ---------
142,622 121,850 410,731 368,125
Income before income taxes 27,516 27,071 96,418 96,005
Income taxes 10,676 10,532 37,410 37,346
--------- --------- --------- ---------
Net income $16,840 $16,539 $59,008 $58,659
========= ========= ========= =========
Earnings per share:
Basic $.65 $.60 $2.20 $2.11
Diluted $.64 $.59 $2.18 $2.06
Weighted average
shares outstanding:
Basic 25,887 27,564 26,707 27,742
Diluted 26,499 27,987 27,056 28,322
CEC ENTERTAINMENT, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited)
(Thousands, except number of stores)
Quarter Ended Year to Date Ended
09/28/03 09/29/02 09/28/03 09/29/02
--------- --------- --------- ----------
Cost of sales:
Food, beverage and related
supplies $21,222 $17,774 $61,437 $56,927
Games and merchandise 7,483 6,576 21,972 19,537
Labor 46,322 41,248 138,010 126,837
--------- --------- --------- ----------
$75,027 $65,598 $221,419 $203,301
========= ========= ========= ==========
Number of Company-owned
stores:
Beginning of period 391 365 384 350
New 10 6 18 19
Acquired from franchisees 3
Closed (1) (1)
--------- --------- --------- ----------
End of period 401 371 401 371
========= ========= ========= ==========
Number of Franchised stores:
Beginning of period 51 49 50 52
New 1
Acquired from franchisees (3)
Closed
--------- --------- --------- ----------
End of period 51 49 51 49
========= ========= ========= ==========
CEC ENTERTAINMENT, INC.
CONSOLIDATED BALANCE SHEETS
(Thousands, except share amounts)
September 28, December 29,
2003 2002
------------- -------------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $9,300 $12,214
Accounts receivable 9,358 11,270
Inventories 11,142 10,716
Prepaid expenses 7,169 5,500
Deposit for redeemable preferred stock
redemption 2,795
Deferred tax asset 804 1,319
------------- -------------
Total current assets 40,568 41,019
------------- -------------
Property and equipment, net 519,792 493,533
------------- -------------
Notes receivable from related parties 3,825
------------- -------------
Other assets 1,957 1,326
------------- -------------
$562,317 $539,703
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $161 $143
Accounts payable and accrued liabilities 61,508 43,002
Redeemable preferred stock 2,795
------------- -------------
Total current liabilities 64,464 43,145
------------- -------------
Long-term debt, less current portion 66,925 62,349
------------- -------------
Deferred rent 4,740 4,086
------------- -------------
Deferred tax liability 45,754 38,156
------------- -------------
Other liabilities 4,750 4,750
------------- -------------
Commitments and contingencies
Redeemable preferred stock 2,549
------------- -------------
Shareholders' equity:
Common stock, $.10 par value; authorized
100,000,000 shares; 35,777,417 and
35,669,773 shares issued, respectively 3,578 3,567
Capital in excess of par value 205,060 201,936
Retained earnings 367,124 308,277
Accumulated other comprehensive income
(loss) 577 (91)
Less treasury shares of 10,467,645 and
8,409,169, respectively, at cost (200,655) (129,021)
------------- -------------
375,684 384,668
------------- -------------
$562,317 $539,703
============= =============
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion