Champps Entertainment Announces First Quarter Results.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. -- Champps Entertainment, Inc. (Nasdaq:CMPP CMPP Centre Médico-Psycho-Pédagogique ) today announced results for its fiscal 2007 first quarter ended October October: see month. 1, 2006. Total revenues for the first quarter decreased 4.3% to $49.3 million, compared with revenues of $51.5 million for the first quarter last fiscal 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 decreased 3.9 percent for first quarter 2007. Comparable alcohol sales decreased 2.0 percent, while comparable food sales decreased 4.6 percent for the first quarter 2007. Net loss for the first quarter 2007 was $42,000, or $0.00 loss 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, compared to net loss of $0.2 million, or $0.02 loss per diluted share, in the same quarter last year. A discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. loss of $0.3 million (net of tax), or $0.03 loss per diluted share, was recorded in last year's first quarter. "We found the macro-economic factors we experienced in the first half of this calendar year carried over to this last quarter and negatively influenced our sales. We also believe our sales were negatively affected by increased competitor media advertising and discounting," noted Mike O'Donnell O'Donnell (Irish: Ó Dónaill or Ó Dómhnaill), which is derived from the forname Domhnaill (meaning "world ruler", Rex Mundi in Latin, Modern Irish spelling, Dónall) were an ancient and powerful Irish clan, kings, princes, and lords of Tyrconnel in early times, and , Champps' Chairman, President, and Chief Executive Officer. "These outside influences aside, we are disappointed in our results this quarter as it is our job to adjust and focus on increasing sales and controlling costs." O'Donnell added, "We continue to believe the best way for us to meet our goals of increased sales and profits is by concentrating on what we can positively influence. We continue to focus on our initiatives and improving the basics of our business so we can deliver superior experiences to our customers that will ultimately translate into higher restaurant volumes and profits. Specifically, we are continuing the roll-out of our new cash flow partnership bonus plan, focusing on menu development and product execution, and enhanced training programs including the roll-out of our 'visioneering' culture based training program which communicates our foundational ideas, principles and stakeholder stakeholder n. a person having in his/her possession (holding) money or property in which he/she has no interest, right or title, awaiting the outcome of a dispute between two or more claimants to the money or property. commitments. Additionally, we are working to return to growth in the future, with our first new restaurant scheduled to open in September September: see month. 2007 and we expect to hire a new franchise development executive in the near future to start growth in that area as well." Product costs increased to 29.1 percent of sales in the most recent quarter from 28.1 percent of sales compared to the first quarter of the last fiscal year reflecting higher produce and seafood seafood Edible aquatic animals excluding mammals, but including both freshwater and ocean creatures. Seafood includes bony and cartilaginous fishes, crustaceans, mollusks, edible jellyfish, sea turtles, frogs, sea urchins, and sea cucumbers. costs. Labor costs increased to 33.0 percent of sales from 32.7 percent of sales for the same period last fiscal year primarily due to the de-leveraging effect associated with lower sales. Other operating costs operating costs npl → gastos mpl operacionales increased to 16.7 percent of sales in this year's first quarter from 15.0 percent of sales in the same quarter last year primarily as a result of higher marketing costs and the lower average sales. During the first quarter of fiscal 2007, approximately $0.3 million was spent on a radio marketing test in two markets. Occupancy expense decreased to 10.0 percent of sales versus 10.5 percent of sales in the first quarter last fiscal year because of reduced general and property insurance costs. Depreciation and amortization expense was 5.3% of revenues in both the first quarters of fiscal 2007 and 2006. General and administrative expenses for the first quarter decreased to $3.5 million, or 7.1 percent of revenues, compared to $3.7 million, or 7.2 percent of revenues, in the comparable period last fiscal year. This decrease resulted from reduced support staff levels and compensation expense for stock-based compensation partially offset by higher legal costs related to 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. and higher tax costs tax costs n. a motion to contest a claim for court costs submitted by a prevailing party in a lawsuit. It is called a "Motion to Tax Costs" and asks the judge to deny or reduce claimed costs. . Dave Womack, Chief Financial Officer, commented, "We do not expect to open any new restaurants in fiscal 2007; however, we do expect to return to modest growth in fiscal 2008. Our capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. for fiscal 2007 is expected to be between $4 to $6 million, which is dependent on the level of new location capital spending related to fiscal 2008 openings. During the first quarter of fiscal 2007, we repurchased 100,000 common shares at a cost of $603,000." The Company's management will discuss the results of the first quarter 2007 on a conference call and simultaneous webcast on November 8, 2006, at 10:00 a.m. ET. To hear the call in a listen-only mode, participants must dial 877-497-1954 or 706-758-9642 (International) at least ten minutes prior to the start of the call and refer to conference identification number 9710594. To hear a live Web simulcast of the call, visit the company's Web site at www.champps.com, click on the Investor Relations Investor relations The process by which the corporation communicates with its investors. icon and refer to conference identification number 9710594. If unable to participate at the time of the call, the archived webcast can be accessed until December 8, 2006, by visiting www.champps.com, clicking on the Investor Relations icon and referring to conference identification number 9710594. About Champps Entertainment, Inc. Champps Entertainment, Inc. owns and operates 50 and franchises/licenses 13 Champps restaurants in 23 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. 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. Statement Certain statements made in this press release are 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. based on management's current experience and expectations. These forward-looking statements are made pursuant to the safe harbor 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. Such forward-looking statements include statements regarding our strategic initiatives; stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program; lease renegotiations; impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charges and closing of restaurants; new menu and operating initiatives critical to improvement in same store sales; the absence of new store openings in the remainder of fiscal 2007; and future uses of cash for stock repurchases or exit costs, among others. Among the factors that could cause future results to differ materially from those provided in this press release are: the ability of the Company to successfully implement our strategic initiatives to improve same store sales; the ability to make and fund stock repurchases; the ability to successfully close or renegotiate re·ne·go·ti·ate tr.v. re·ne·go·ti·at·ed, re·ne·go·ti·at·ing, re·ne·go·ti·ates 1. To negotiate anew. 2. To revise the terms of (a contract) so as to limit or regain excess profits gained by the contractor. lease terms for certain restaurants; the impact of intense competition in the casual dining restaurant industry; the Company's ability to control restaurant operating costs, which are impacted by commodity prices, minimum wage and other employment laws; fuel and energy costs; consumer perceptions of food safety; changes in consumer tastes and trends; and general business and economic conditions. Information on significant potential risks and uncertainties that may also cause such differences include, but are not limited to, those mentioned by the Company from time to time in its filings with the SEC. The words "may," "believe," "estimate," "expect," "plan," "intend," "project," "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.
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Champps Entertainment, Inc. > >
Selected Balance Sheet Information > >
(In thousands) > >
(Unaudited) > >
> >
> > October
July 2,
> > 2006
2006
Cash and cash equivalents > > $ 7,742
$ 9,449
Current assets > > 23,531
24,869
Total assets > > 134,151
136,702
Current liabilities > > 11,300
13,377
Debt > > 14,757
14,707
Total shareholders' equity > > 76,291
76,728
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