Champps Entertainment, Inc. Reports Second-Quarter Results.Business Editors LITTLETON Littleton, city (1990 pop. 33,685), seat of Arapahoe co., N central Colo.; platted 1812, inc. 1890. It is a suburb south of Denver in an irrigated farm area. , Colo.--(BUSINESS WIRE)--Jan. 27, 2004 Champps Entertainment, Inc. (Nasdaq:CMPP CMPP Centre Médico-Psycho-Pédagogique ) today announced results for its second quarter ended December December: see month. 28, 2003. Highlights for the quarter include: Revenues increased 17.8% to $54,811,000 Income from operations increased 38.9% to $3,540,000 Income before income taxes increased 50.6% to $2,775,000 Net income increased 16.1% to $2,053,000 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. income per share increased to $0.16 from $0.14 Total revenues for the second quarter increased 17.8 percent to $54,811,000 compared to $46,538,000 for the second quarter of last fiscal year. The increase was primarily the result of additional restaurants open this year compared to last year. Diluted income per share for the second quarter was $0.16 compared with $0.14 for the same quarter last year. Net income for the second quarter was $2,053,000 versus $1,768,000 reported in the comparable period last year. Included in net income for the quarter was an income tax expense of 26 percent versus an income tax expense of four percent in the comparable period last year. The effect on diluted income per share as a result of this higher tax rate was approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $0.05 per share. 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 decreased 0.7 percent for the quarter. Comparable food sales increased 0.5 percent while comparable alcohol sales declined 3.4 percent. Restaurant contribution margin declined 10 basis points for the second quarter as compared to the second quarter of last year. Margins were adversely impacted by an increase in insurance costs, additional FICA FICA abbr. Federal Insurance Contributions Act Noun 1. FICA - a tax on employees and employers that is used to fund the Social Security system income tax - a personal tax levied on annual income expense and an increase in depreciation expense. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. were positively impacted by lower credit card fees and lower advertising expenses in the quarter partially offset by higher utility costs. Preopening expenses for the quarter were $756,000 or $0.06 per diluted share compared to $849,000 or $0.06 per diluted share for the comparable quarter in the prior year. General and administrative expenses for the current quarter were $2,754,000 or 5.0 percent of revenues compared to $2,544,000 or 5.5 percent of revenues last fiscal year. The Company successfully opened three new Champps restaurants in the second quarter, one in Wilmington, Delaware Wilmington is the largest city in the state of Delaware and is located at the confluence of the Christina River and Brandywine Creek, near where the Christina flows into the Delaware River. , one in Rochester, New York This article is about the city of Rochester in Monroe County. For the town in Ulster County, see Rochester, Ulster County, New York. Rochester, once known as The Flour City, and more recently as The Flower City or , and one in Fairfax, Virginia Fairfax is an independent city forming an enclave within the confines of Fairfax County, in the Commonwealth of Virginia. Although politically independent of the surrounding county, the City of Fairfax is nevertheless its county seatGR6. , increasing the number of Company owned Champps restaurants to 47. Additionally the Company intends to open one additional restaurant in the fourth quarter of fiscal 2004. At the end of the comparable period last year, the Company owned 38 restaurants. 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: "We are pleased to report strong operating results for this quarter. Our income from operations of $3,540,000 is the highest we have ever reported for a quarter. Our initiatives relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc our continued focus on food quality and service execution, as well as menu re-engineering re-engineering - The examination and modification of a system to reconstitute it in a new form and the subsequent implementation of the new form. http://erg.abdn.ac.uk/users/brant/sre. continue to have a positive impact on our business. Guest counts and food sales continued their positive trend and our check average improved to $13.29 compared to $13.28 for the same quarter last year. "We have undertaken several sales and cost initiatives in the first and second quarters of fiscal 2004 that should positively impact our financial performance over the remainder of fiscal 2004. "Regarding certain liabilities and contingencies Contingencies (ISSN 1048-9851) is the bimonthly magazine of the American Academy of Actuaries, providing a large and diverse readership with general interest and technical articles on a wide range of issues related to the actuarial profession. in connection with our spin-off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. from DAKA International, I am pleased to report that the District of Columbia Court of Appeals
As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with legal principles outlined in its opinion." Littleton, Colo.-based Champps Entertainment, Inc. owns and operates 47 and franchises 12 Champps restaurants in 21 states. Champps, which competes in the upscale casual dining segment, offers an extensive menu consisting of freshly prepared food, coupled with exceptional service. Champps creates an exciting environment through the use of videos, music, sports and promotions. This press release includes 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. . Such statements involve known and unknown risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Because of these uncertainties, the forward-looking statements contained in this press release are not guarantees of future performance and you should not place undue reliance on these forward-looking statements. Forward-looking statements in this press release include comments regarding additional restaurant openings, positive impact on financial performance from sales and cost-reduction initiatives and an anticipated reduction in punitive damages. Factors that could cause results to differ materially from these forward-looking statements include unexpected problems with design, construction, zoning or other events that could delay the opening of new restaurants; competition for food and alcoholic beverages
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. . All forward-looking statements made in this press release are based on information available to us on the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" , and we assume no obligation to update these statements.
Champps Entertainment, Inc.
Consolidated Statements of Operations
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
------------------ ----------------
Dec. 28, Dec. 29, Dec. 28, Dec. 29,
2003 2002 2003 2002
-------- -------- --------- --------
Revenue
Sales $54,667 $46,389 $103,414 $87,721
Franchising and royalty, net 144 149 282 297
-------- -------- --------- --------
Total revenue 54,811 46,538 103,696 88,018
-------- -------- --------- --------
Costs and expenses
Restaurant operating expenses:
Product costs 15,173 12,908 28,883 24,439
Labor costs 17,260 14,487 33,324 28,043
Other operating expenses 8,247 7,268 15,998 13,711
Occupancy 4,633 3,888 9,078 7,606
Depreciation and amortization 2,398 1,896 4,583 3,663
-------- -------- --------- --------
Total restaurant operating
expenses 47,711 40,447 91,866 77,462
-------- -------- --------- --------
Restaurant operating and
franchise contribution 7,100 6,091 11,830 10,556
General and administrative
expenses 2,754 2,544 5,209 4,849
Pre-opening expenses 756 849 1,595 1,552
Other (income) expense 50 150 83 201
-------- -------- --------- --------
Income from operations 3,540 2,548 4,943 3,954
Other (income) expense:
Interest expense and
income, net 599 415 1,148 811
Expenses related to
predecessor companies 166 - 205 -
Debt extinguishment costs - 290 - 290
-------- -------- --------- --------
Income before income taxes 2,775 1,843 3,590 2,853
Income tax expense 722 75 933 113
-------- -------- --------- --------
Net income $2,053 $1,768 $2,657 $2,740
======== ======== ========= ========
Basic income per share $0.16 $0.14 $0.21 $0.22
======== ======== ========= ========
Diluted income per share $0.16 $0.14 $0.21 $0.21
======== ======== ========= ========
Basic weighted average shares
outstanding 12,787 12,497 12,780 12,349
======== ======== ========= ========
Diluted weighted average shares
outstanding 12,941 13,089 12,901 13,004
======== ======== ========= ========
Supplemental Information -- Restaurant Operating Expenses
(Stated as a percentage of restaurant sales)
Three Months Ended Six Months Ended
------------------ ----------------
Dec. 28, Dec. 29, Dec. 28, Dec. 29,
2003 2002 2003 2002
-------- -------- -------- --------
Product costs 27.8% 27.8% 27.9% 27.8%
Labor costs 31.5% 31.2% 32.2% 32.0%
Other operating expenses 15.1% 15.7% 15.5% 15.6%
Occupancy 8.5% 8.4% 8.8% 8.7%
Depreciation and amortization 4.4% 4.1% 4.4% 4.2%
Total restaurant contribution
margin 12.7% 12.8% 11.2% 11.7%
-------- -------- --------- --------
General and administrative
expense (Stated as a
percentage of revenue) 5.0% 5.5% 5.0% 5.5%
-------- -------- --------- --------
Champps Entertainment, Inc.
Condensed Consolidated Balance Sheet
(In thousands, except share data)
(Unaudited)
December 28, June 29,
2003 2003
------------ ---------
ASSETS
Current assets:
Cash and cash equivalents $9,804 $5,055
Restricted cash 681 741
Accounts receivable 5,613 2,669
Inventories 4,161 3,594
Prepaid expenses and other current assets 8,208 6,066
Deferred tax asset 2,450 2,000
------- -------
Total current assets 30,917 20,125
Property and equipment, net 89,239 83,613
Goodwill 5,069 5,069
Deferred tax asset 21,615 22,675
Other assets, net 2,254 2,467
-------- --------
Total assets $149,094 $133,949
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $6,101 $5,403
Accrued expenses 13,900 9,750
Current portion of capital lease
obligations 489 528
Current portion of notes payable 2,126 1,244
-------- --------
Total current liabilities 22,616 16,925
Capital lease obligations, net of current
portion 384 635
Notes payable, net of current portion 29,012 26,143
Other long-term liabilities 21,261 17,501
-------- --------
Total liabilities 73,273 61,204
-------- --------
Commitments and contingencies - -
Shareholders' equity:
Preferred stock ($.01 par value per
share; authorized 5,000,000 shares;
none issued) - -
Common stock ($.01 par value per share;
authorized 30,000,000 shares; 13,260,665
and 13,235,638 shares issued at
December 28, 2003 and June 29, 2003,
respectively) 133 132
Additional paid-in capital 90,234 89,816
Accumulated deficit (10,963) (13,620)
Treasury stock, at cost (471,588 shares) (3,583) (3,583)
-------- --------
Total shareholders' equity 75,821 72,745
-------- --------
$149,094 $133,949
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