Champps Entertainment, Inc. Reports Record Fiscal 2001 Second-Quarter Results.Business Editors ENGLEWOOD Englewood (ĕng`gəlw  d).1 City (1990 pop. 29,387), Arapahoe co., N central Colo., on the South Platte River, a residential and industrial suburb of Denver; inc. 1903. , Colo.--(BUSINESS WIRE)--Jan. 22, 2001 Champps Entertainment, Inc. (Nasdaq:CMPP CMPP Centre Médico-Psycho-Pédagogique ): -- Total revenues up 22.5 percent to $34,064,000. -- Income from operations up 90.5 percent to $2,593,000. -- EPS at $.18 per fully diluted share. Champps Entertainment, Inc. (Nasdaq:CMPP) announced today record results for the second quarter of fiscal 2001 and the six months ended December December: see month. 31, 2000. Total revenues for the second quarter rose 22.5 percent to $34,064,000, compared with $27,801,000 reported in the second quarter of last year. Net income for the second quarter was $2,197,000, or $.19 per basic share, and $.18 per fully 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. share, compared to $302,000, or $.03 per basic and fully diluted share for the comparable period a year ago. Income from operations was $2,593,000, compared to $1,361,000 reported in the same period last year. For the first half of fiscal 2001, total revenue grew 25.6 percent to $67,147,000, versus $53,473,000 in the first half of last year. Net income for the first half of fiscal 2001 reached $3,895,000, or $.33 per basic share and $.32 per fully diluted share compared with a loss of ($819,000) or ($.07) per basic and fully diluted share for the same period a year ago. Income from operations for the first half of fiscal 2001 totaled $4,693,000, versus $407,000 for the first half of fiscal 2000. Comparable 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 increased 1.1 percent during the second quarter versus a 4.7 percent increase reported in the same period last year. This increase occurred despite experiencing difficult weather conditions in several areas of the country during December 2000. General and administrative expenses were $1,801,000, or 5.3 percent of revenues for the second quarter, as compared with $1,613,000, or 5.8 percent of revenues for the second quarter last year. General and administrative expenses for the first half of fiscal 2001 were $3,560,000, or 5.3 percent of revenues as compared with $3,411,000, or 6.4 percent of revenues for the same period a year ago. William William, crown prince of Germany William or Frederick William, 1882–1951, crown prince of Germany, son of William II. In World War I he commanded (1914) an army on the Western Front and was nominal commander in the German attack H. Baumhauer, Champps' chairman, president and chief executive officer, commented on the second quarter results: "We are obviously pleased to once again report record results in all aspects of our business. During the quarter, we rolled out a new menu in all of our 25 restaurants. This new menu reflects a modest reduction in the number of items offered to our guests while placing increased emphasis on high-quality dinner entrees. To date, the menu has been well received by our guests. This approach allows us to compete more favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. in food quality with our high-end high-end adj. Informal 1. Appealing to sophisticated and discerning customers: a high-end department store; high-end video equipment. 2. competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. . We are on target to open four new Champps restaurants this fiscal year and six to eight new Champps restaurants during fiscal 2002." Englewood, Colorado-based Champps Entertainment, Inc. currently owns and operates 25 Champps Americana Americana, term used to describe material printed in or about the Americas, or written by Americans; usually restricted to the formative period in the history of the two continents. restaurants and franchises 13 Champps Americana restaurants in select markets throughout the U.S. Champps is an upscale casual dining restaurant that offers a broad menu consisting of freshly prepared food coupled with exceptional service. Additionally, Champps creates an exciting environment through the use of audiovisual See A/V. techniques and several large screen televisions. Champps Entertainment management will host an investment community conference call on Tuesday Tuesday: see week. , January January: see month. 23, 2001, at 10 a.m. Eastern Time to discuss fiscal 2001 second quarter results. To hear the call in a listen-only mode, participants must dial 888/740-1975 and refer to reservation A clause in a deed of real property whereby the grantor, one who transfers property, creates and retains for the grantor some right or interest in the estate granted, such as rent or an Easement ,a right of use over the land of another. no. 17703184, five minutes prior to the start of the call, or visit the company's web site at www.champps.com and click on the investor relations Investor relations The process by which the corporation communicates with its investors. icon to hear a live web simulcast Simulcast is a portmanteau of "simultaneous broadcast", and refers to programs or events broadcast across more than one medium, or more than one service on the same medium, at the same time. and replay of the call. Statements made in this press release include 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. made pursuant to 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. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Information on significant potential risks and uncertainties that may cause such differences include, but are not limited to, those mentioned by the Company from time to time in its filings with the Securities and Exchange Commission. The words "believe," "estimate," "expect," "intend," "anticipate," "should" and similar expressions and variations thereof identify certain of such forward-looking statements, which speak only as of the dates on which they were made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and therefore, readers should not place undue reliance on these forward-looking statements.
CHAMPPS ENTERTAINMENT, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per-share data)
Three Months Ended Six Months Ended
------------------ ----------------
Dec. 31, Jan. 2, Dec. 31, Jan. 2,
2000 2000 2000 2000
---- ---- ---- ----
Revenues:
Sales $ 33,910 $ 27,614 $ 66,820 $ 53,103
Franchising and
royalty, net 154 187 327 370
------ ------ ------ ------
Total revenues 34,064 27,801 67,147 53,473
Costs and expenses:
Restaurant operating
expenses:
Product costs 9,876 7,976 19,397 15,493
Labor costs 10,541 8,904 21,174 17,601
Other operating expenses 5,140 4,264 9,942 8,328
Occupancy 2,729 2,342 5,366 4,640
Preopening 7 399 250 1,110
Depreciation and
amortization 1,377 942 2,765 2,023
------ ----- ------ ------
Total restaurant
operating expenses 29,670 24,827 58,894 49,195
General and administrative
expenses 1,801 1,613 3,560 3,411
Exit and other costs - - - 460
------ ------ ------ ------
Total costs and expenses 31,471 26,440 62,454 53,066
------ ------ ------ ------
Income from operations 2,593 1,361 4,693 407
Other expense, net 306 25 618 192
Loss on sale of marketable
securities - 1,034 - 1,034
------ ------ ------ ------
Net income (loss) before
taxes 2,287 302 4,075 (819)
Provision for income taxes 90 0 180 0
------ ------ ------ ------
Net income (loss) after
taxes $ 2,197 $ 302 $ 3,895 $ (819)
====== ====== ====== ======
Basic income (loss) per
share: $ 0.19 $ 0.03 $ 0.33 $ (0.07)
Diluted income (loss) per
share: $ 0.18 $ 0.03 $ 0.32 $ (0.07)
Basic weighted average
shares outstanding 11,875 11,653 11,778 11,652
Diluted weighted average
shares outstanding 12,373 11,684 12,169 11,652
Supplemental Information -- Operating Expenses
(Stated as a percentage of sales)
Product costs 29.1% 28.9% 29.0% 29.2%
Labor costs 31.1% 32.2% 31.7% 33.1%
Other operating costs 15.2% 15.5% 14.9% 15.7%
Occupancy 8.0% 8.5% 8.0% 8.7%
Preopening 0.0% 1.4% 0.4% 2.1%
Depreciation and
amortization 4.1% 3.4% 4.1% 3.8%
------- ------- ------- -------
Total restaurant operating
expenses 87.5% 89.9% 88.1% 92.6%
------- ------- ------- -------
General and administrative
expenses 5.3% 5.8% 5.3% 6.4%
------- ------- ------- -------
(Stated as a percentage of
revenues)
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