Champps Entertainment, Inc. Reports Record Fiscal Year-End 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)--Aug. 21, 2001 Champps Entertainment, Inc. (Nasdaq:CMPP CMPP Centre Médico-Psycho-Pédagogique ) today announced record earnings per 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 of $1.10 for the fiscal year ended July July: see month. 1, 2001, on net income of $13,537,000, which includes the recognition of a tax benefit of $7,893,000, compared with $2,273,000 or $0.19 per diluted share last year. Revenue for the year reached $133,316,000, up 21.8 percent from $109,445,000 reported last year. Income from operations for the year increased 94.1 percent to $7,109,000 versus $3,663,000 in fiscal 2000. Income before expenses related to predecessor obligations and loss from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. and the recognition of a deferred tax asset increased to $6,255,000 or $0.51 per diluted share compared with income before exit costs and loss on sale of marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has of $3,767,000 or $0.32 per diluted share last year. 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 0.2 percent for the year compared with 4.7 percent last year. General and administrative expenses for the year were $7,687,000 or 5.8 percent of revenue versus $6,804,000 or 6.2 percent of revenues last fiscal year. Revenue for the fourth quarter rose 19.1 percent to $33,065,000 versus $27,757,000 for the same period a year ago. Income from operations before preopening expenses for the fourth quarter reached $1,876,000 compared with $1,812,000 for the comparable quarter last fiscal year. General and administrative expenses for the quarter were $2,336,000 or 7.1 percent of revenue versus $1,826,000 or 6.6 percent of revenue for the fourth quarter of last fiscal year. General and administrative expenses were negatively impacted during the quarter by approximately $300,000 in costs incurred due to trademark arbitration arbitration Process of resolving a dispute or a grievance outside a court system by presenting it for decision to an impartial third party. Both sides in the dispute usually must agree in advance to the choice of arbitrator and certify that they will abide by the and a two-week liquor license Noun 1. liquor license - a license authorizing the holder to sell alcoholic beverages liquor licence license, permit, licence - a legal document giving official permission to do something suspension at one of the Champps restaurants. Preopening expenses for the quarter relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the opening of three new Champps restaurants were $1,127,000 or $.09 per diluted share compared with $352,000 for the same quarter last year or $.03 per diluted share. Net income for the fourth quarter was $316,000 or $.03 per diluted share compared with $1,334,000 or $0.11 per diluted share for the fourth quarter of last fiscal year. Comparable sales decreased 1.0 percent for the quarter versus an increase of 3.4 percent reported in the comparable period last year. During the fourth quarter, the company opened three new Champps restaurants. These restaurants are located in King of Prussia King of Prussia, industrialized suburban area (1990 pop. 18,406), Montgomery co., SE Pa. It has glass and steel fabricating, food processing, printing and publishing, and varied manufacturing (textiles, liquified petroleum gas, water-treatment and electrical , Penn.; Houston, Texas “Houston” redirects here. For other uses, see Houston (disambiguation). Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the ; and Chicago Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. , Ill., bringing the total number of company-owned restaurants to 28. The company anticipates opening six to eight locations in fiscal 2002 in key markets including: Detroit Detroit, city, United States Detroit (dĭtroit`), city (1990 pop. 1,027,974), seat of Wayne co., SE Mich., on the Detroit River and between lakes St. Clair and Erie; inc. as a city 1815. ; Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. D.C.; Columbia Columbia, cities, United States Columbia (kəlŭm`bēə). 1 City (1990 pop. 75,883), Howard co., central Md., between Washington, D.C., and Baltimore. , Md.; Indianapolis Indianapolis (ĭn'dēənă`pəlĭs), city (1990 pop. 731,327), state capital and seat of Marion co., central Ind., on the White River; selected 1820 as the site of the state capital (which was moved there in 1825), inc. 1847. ; Raleigh Durham, N.C.; Chicago; Cleveland and Denver. William H. Baumhauer, Champps' chairman, president and chief executive officer, commented on the company's performance for the fiscal year: "We are pleased to report our best annual results ever for the fiscal year ended July 1, 2001. Despite the fact that the second half of the year was negatively impacted by a soft economy, our overall performance reached record levels. Although we saw a decline in liquor liquor /li·quor/ (lik´er) (li´kwor) pl. liquors, liquo´res [L.] 1. a liquid, especially an aqueous solution containing a medicinal substance. 2. sales during this period, which adversely impacted comparable same store sales, we continue to be pleased with the growth potential and continued acceptance of our concept. Looking ahead to fiscal 2002, we expect revenues to increase by approximately 25 percent over this fiscal year and income from operations to increase by approximately 30 percent year over year." Englewood, Colo.-based Champps Entertainment, Inc. currently owns and operates 28 Champps Americana restaurants and franchises 13 Champps Americana restaurants in 17 states. Champps is an upscale casual dining restaurant that offers a broad menu consisting of freshly prepared food coupled with exceptional service. Champps creates additional value and 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 Aug. 22, 2001, 10:00 AM EST EST electroshock therapy. EST abbr. electroshock therapy , to discuss fourth- quarter fiscal 2001 results. To hear the call in a listen-only mode, participants must dial 800/521-5499 and refer to reservation No. 1174761, 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 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 Twelve Months Ended
------------------ -------------------
July 1, July 2, July 1, July 2,
2001 2000 2001 2000
---- ---- ---- ----
Revenues:
Sales $ 32,882 $ 27,524 $132,672 $108,643
Franchising and royalty,
net 183 233 644 802
------- ------- ------- -------
Total revenues 33,065 27,757 133,316 109,445
Costs and expenses:
Restaurant operating expenses:
Product costs 9,338 7,944 38,282 31,381
Labor costs 10,372 9,122 41,916 35,849
Other operating expenses 5,079 3,913 20,070 16,306
Occupancy 2,662 2,154 10,731 9,448
Depreciation and
amortization 1,402 986 5,517 4,072
------- ------- ------- -------
Total restaurant operating
expenses 28,853 24,119 116,516 97,056
------- ------- ------- -------
Restaurant and franchise
operating contribution 4,212 3,638 16,800 12,389
Preopening expenses 1,127 352 1,470 1,462
General and administrative
expenses 2,336 1,826 7,687 6,804
------- ------- ------- -------
Income from operations
prior to expenses related
to predecessor companies
and exit and other costs 749 1,460 7,643 4,123
Expenses related to predecessor
companies - - 534 -
Exit and other costs - - - 460
------- ------- ------- -------
Income from operations 749 1,460 7,109 3,663
Interest expense, net 433 49 1,388 279
Loss on sale of marketable
securities - - - 1,034
------- ------- ------- -------
Income from continuing
operations 316 1,411 5,721 2,350
Loss from discontinued
operations - - 77 -
------- ------- ------- -------
Income before income tax
benefit (expense) 316 1,411 5,644 2,350
Income tax benefit (expense) - (77) 7,893 (77)
------- ------- ------- -------
Net income $ 316 $ 1,334 $ 13,537 $ 2,273
======= ======= ======= =======
Basic income per share: $ 0.03 $ 0.11 $ 1.14 $ 0.20
Diluted income per share:$ 0.03 $ 0.11 $ 1.09 $ 0.19
Basic weighted average
shares outstanding 11,985 11,658 11,871 11,654
Diluted weighted average
shares outstanding 12,615 11,834 12,363 11,742
Selected Consolidated Balance Sheet
Information July 1, July 2,
2001 2000
---- ----
Cash and marketable
securities $ 1,261 $ 4,373
Total assets 79,458 67,093
Debt 15,073 15,260
Capital lease obligations 2,031 4,064
Stockholders' equity 44,616 30,122
Supplemental Information -- Operating Expenses
(Stated as a percentage of sales)
Product costs 28.4% 28.9% 28.9% 28.9%
Labor costs 31.5% 33.1% 31.6% 33.0%
Other operating expenses 15.4% 14.2% 15.0% 15.0%
Occupancy 8.1% 7.8% 8.1% 8.7%
Depreciation and amortization 4.3% 3.6% 4.2% 3.7%
---- ---- ---- ----
Restaurant operating
contribution 12.3% 12.4% 12.2% 10.7%
---- ---- ---- ----
Preopening expenses 3.4% 1.3% 1.1% 1.3%
---- ---- ---- ----
General and administrative
expenses 7.1% 6.6% 5.8% 6.2%
---- ---- ---- ----
(Stated as a percentage of revenues)
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