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SHOWBIZ ANNOUNCES THIRD QUARTER RESULTS; EXPANSION OF STOCK BUY-BACK FROM $10 MILLION TO $30 MILLION

 IRVING, Texas, Oct. 18 /PRNewswire/ -- ShowBiz Pizza Time, Inc., (NASDAQ: SHBZ) today announced results of operations for the three and nine months ended Oct. 1, 1993.
 Revenues for the three months ended Oct. 1, 1993 increased by 8.9 percent to $71.6 million from $65.8 million in the third quarter of 1992 due to the effect of new restaurants which opened in 1992 and 1993. Net income for the third quarter of 1993, declined to $3.9 million from $4.3 million in the third quarter of last year due to a deterioration of operating margins caused by a 4.7 percent decline in comparable store sales of the Company's Chuck E. Cheese's/ShowBiz restaurants during the third quarter of 1993, including a 10.0 percent decline in the last five weeks of the quarter. The Company's third quarter 1993 earnings were positively impacted by approximately $.05 per share due to a non-recurring net tax gain resulting primarily from the increased valuation of the Company's deferred tax asset due to an increase in federal corporate income tax rates enacted in 1993. Earnings per share were $.28 in the third quarter of 1993 as compared to $.31 per share in third quarter of 1992.
 Revenues for the first three quarters of 1993 increased by 10.6 percent to $209.7 million from $189.6 million in the first three quarters of 1992. Net income for the first three quarters of 1993 declined to $12.3 million from $13.1 million in the first three quarters of 1992 primarily as a result of a 4.8 percent decline in comparable store sales of the Company's Chuck E. Cheese's/ShowBiz restaurants and deteriorating operating margins. The Company's earnings per share in the first three quarters of 1993 declined to $.88 per share from $.94 per share in the comparable period of the prior year.
 The Company is implementing several strategies designed to strengthen the sales vitality of its existing unit base. It has appointed the J. Walter Thompson Agency of Chicago as its advertising agency in order to capitalize on JWT's expertise in marketing to families and children. The Company is also accelerating its unit remodel plans and will complete 20-25 unit remodels in the last half of 1993 compared to five remodeled units in the first half of 1993. The Company is also increasing the number of its operational district managers to provide a more concentrated focus on guest satisfaction throughout the Chuck E. Cheese's/ShowBiz system.
 The Company will open about 33-34 new locations this year and in conjunction with its strategies to improve sales of existing restaurants, is limiting its 1994 new unit development to approximately 30-35 new stores in order to insure that new unit growth and the sales vitality of the Company's existing unit base are both given equal priority.
 The Company also announced its intention to expand its previously announced plans to purchase shares of the Company's common stock, from time to time in the open market or through negotiated trades with persons not affiliated with the Company, at an aggregate purchase price of up to $30 million. The Company has, as of Oct. 15, 1993, purchased shares of its common stock for an aggregate purchase price of $8.1 million. The Company continues to believe that the purchase of its common stock represents an attractive long term investment opportunity for the Company. The funds required for the additional stock purchase authorized will be provided from the Company's operating cash flow and anticipated borrowing under the Company's revolving credit facility.
 ShowBiz operates a system of 319 Chuck E. Cheese's and ShowBiz Pizza Place restaurants, of which 209 are Company operated in 28 states, and 28 Monterey's Tex-Mex Cafe restaurants in Texas, Oklahoma and Alabama.
 SHOWBIZ PIZZA TIME, INC. AND SUBSIDIARY
 RESULTS OF OPERATIONS
 (Thousands, except per share data)
 Three Months Ended Nine Months Ended
 10/01/93 9/25/92 10/01/93 9/25/92
 Revenues $ 71,636 $ 65,810 $209,686 $189,557
 Operating Income 5,366 7,305 19,182 22,183
 Income Before Taxes 5,276 7,060 18,884 21,353
 Income Taxes:
 Current Expense 635 332 1,602 1,004
 Deferred Expense 746 2,400 5,005 7,260
 Total 1,381 2,732 6,607 8,264
 Net Income $ 3,895 $ 4,328 $ 12,277 $ 13,089
 Earnings Per Share:
 Primary and
 Fully Diluted $ .28 $ .31 $ .88 $ .94
 Weighted Average
 Shares Outstanding:
 Primary 13,527 13,642 13,609 13,652
 Fully Diluted 13,530 13,656 13,617 13,664
 -0- 10/18/93
 /CONTACT: Michael H. Magusiak, executive vice-president and chief financial officer of ShowBiz Pizza Time, 214-258-8507/
 (SHBZ)


CO: ShowBiz Pizza Time, Inc. ST: Texas IN: LEI SU: ERN

LG -- NY031 -- 3278 10/18/93 10:20 EDT
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Publication:PR Newswire
Date:Oct 18, 1993
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