BTBD BT Brands Inc

Earnings Conference Call at 4:30 Eastern Today

BT Brands, Inc. (Nasdaq: BTBD and BTBDW), today reported its financial results for the thirteen weeks ending October 1, 2023, and for the 39-week period then ended. The results for 2023 include a full quarter for the three 2022 restaurant acquisitions, and our 41.2% share of Bagger Dave’s Burger Tavern results with its six locations. BT Brands operates a total of eighteen restaurants comprising the following:

• Eight Burger Time locations and one Dairy Queen franchise; in the North Central region of the United States, collectively (“BTND”);
• Bagger Dave’s Burger Tavern, Inc., a 41.2% owned affiliate, operating six Bagger Dave’s restaurants in Michigan, Ohio, and Indiana (“Bagger Dave’s”);
• Keegan’s Seafood Grille in Indian Rocks Beach, Florida (“Keegan’s”);
• Pie In The Sky Coffee and Bakery in Woods Hole, Massachusetts (“PIE”).
• Village Bier Garten, in Cocoa, Florida (“VBG”).

Highlights and recent activities include:

• Total revenues for the 2023 39-week period increased 15.1% over 2022 to $11.1 million;
• Operating income for the 13-week period was $40,614 an increase from $8,992 in 2022;
• Net loss attributable to common shareholders was $379,006, or $.06 per share for the 39-week period in 2023:
• For the 39-week period, restaurant-level adjusted EBITDA (a non-GAAP measure) for the year declined just 1.4% to $1,469,129 in 2023 from $1,489,488 in the same period in 2022;
• Our equity in the second quarter loss of Bagger Dave’s was $109,222:
• At October 2, 2023, we had $6.9 million in cash and short-term investments.

Gary Copperud, the Company’s Chief Executive Officer, said, “The third quarter is seasonally strong at Burger Time, and at Pie in The Sky which has continued to exceed our expectations. Our two Florida locations continued to perform below our expectations during the third quarter of 2023. The disappointing results in Florida are partially the result of unusually warm weather impacting tourist and business activity. Improving the profitability of our Florida businesses continues to be a major focus of our current activity. We incurred approximately $100,000 in non-recurring expenses related to our investment activities, including the contested proxy solicitation at Noble Roman. As a public company, we bear the burden of general and administrative expenses related to compliance and other public company activities; our goal is to spread these expenses over a larger revenue base in the future. We are experiencing some moderation of the 2022 inflationary pressure on our cost of sales inputs; however, we continue to face challenges in staffing even with labor markets trending slightly more favorable. As we consider the balance of 2023, we are focused on achieving profitability consistent with our expectations.”

Fiscal 2023 and 2024 Outlook: Because of the evolving character of our Company and because of continuing uncertainty surrounding public health concerns, impacts of supply chain constraints, and the current inflationary environment, the Company is not providing a financial forecast for fiscal 2023 and 2024.

Conference Call: Management will host a conference call to discuss the second quarter financial results today, November 15, 2023, at 4:30 p.m. ET. Hosting the call will be Kenneth Brimmer, Chief Financial Officer and Gary Copperud, Chief Executive Officer.

Dial: 877-344-8082 Secondary, international dial-in: +1-213-992-4618 The conference call can be accessed live over the phone by dialing the access code. In addition, an archive of the call will be available on the Company’s corporate website page after the call has concluded. Website www.itsburgertime.com.

About BT Brands Inc.: BT Brands, Inc. (BTBD and BTBDW) owns and operates a fast-food restaurant chain called Burger Time with locations in North and South Dakota and Minnesota and Pie In The Sky Coffee and Bakery in Woods Hole, Massachusetts, the Village Bier Garten in Cocoa, Florida, and Keegan’s Seafood Grille near Clearwater, Florida. BT Brands is seeking acquisitions within the restaurant industry.

Cautionary Note Regarding Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar references to future periods. Examples of forward-looking statements include, among others, statements we make regarding guidance relating to net income and net income per share, expected operating results, such as revenue growth and earnings, anticipated levels of capital expenditures for the 2023 fiscal year, current or future volatility in the credit markets and future market conditions, our belief that we have sufficient liquidity to fund our business operations during the next fiscal year, market position, financial results and reserves, and strategy for risk management.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: the disruption to our business from public health emergencies, the impact on our results of operations, and our financial condition; the uncertain nature of the restaurant industry; our ability to integrate acquired restaurants, delays in developing and opening new restaurants because of weather, local permitting or other reasons, increased competition, cost increases or shortages in raw food products, staffing shortages and the effect of inflation on key supplies and inputs.

Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

BT BRANDS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

 

39 Weeks Ended

39 Weeks Ended,

13 Weeks Ended,

13 Weeks Ended,

October 1, 2023

October 2, 2022

October 1, 2023

October 2, 2022

SALES

$

11,078,419

 

$

9,621,996

 

$

4,007,656

 

$

4,023,920

 

COSTS AND EXPENSES

Restaurant operating expenses

Food and paper costs

4,348,294

 

3,637,814

 

1,449,796

 

1,604,858

 

Labor costs

4,124,857

 

3,122,867

 

1,509,721

 

1,336,039

 

Occupancy costs

845,863

 

803,792

 

340,002

 

367,872

 

Other operating expenses

603,964

 

577,035

 

209,721

 

248,383

 

Depreciation and amortization

 

470,801

351,084

 

114,774

 

168,855

 

General and administrative

 

1,288,019

 

1,035,639

 

343,027

 

288,921

 

Gain on sale of assets

(313,688

)

 

-

 

 

-

 

-

 

Total costs and expenses

11,368,110

 

9,528,231

 

3,967,041

 

4,014,928

 

Income (loss) from operations

(289,691

)

93,765

 

40,615

 

8,992

 

GAIN (LOSS) ON MARKETABLE SECURITIES

 

 

33,184

 

 

(155,220

)

56,248

 

(74,982

)

INTEREST AND OTHER INCOME

123,630

 

55,836

 

32,821

 

46,364

 

INTEREST EXPENSE

(73,857

)

(88,099

)

(23,948

)

(33,638

)

EQUITY NET LOSS OF AFFILIATE

(254,272

)

(135,813

)

(109,222

)

(121,641

)

LOSS BEFORE TAXES

(461,006

)

(229,531

)

(3,486

)

(174,906

)

INCOME TAX BENEFIT

82,000

 

5,000

 

-

 

-

 

NET LOSS

$

(379,006

)

$

(224,531

)

$

(3,486

)

$

(174,906

)

NET LOSS PER COMMON SHARE -

$

(0.06

)

$

(0.03

)

$

(0.00

)

$

(0.04

)

 

WEIGHTED AVERAGE SHARES

 

6,257,652

 

6,459,223

 

6,246,118

 

6,461,118

 

BT BRANDS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

 

 

(Unaudited)

October 1, 2023

 

January 1, 2023

ASSETS

 

 

CURRENT ASSETS

Cash and cash equivalents

$

5,546,874

 

$

2,150,578

 

Marketable securities

1,366,973

 

5,994,295

 

Receivables

55,200

 

76,948

 

Inventory

192,991

 

158,351

 

Prepaid expenses and other current assets

37,445

 

37,397

 

Assets held for sale

258,751

 

446,524

 

Total current assets

7,458,234

 

8,864,093

 

 

PROPERTY, EQUIPMENT AND LEASEHOLD IMPROVEMENTS, NET

3,238,310

 

3,294,644

 

OPERATING LEASES RIGHT-OF-USE ASSETS

1,834,408

 

2,004,673

 

INVESTMENTS

1,115,615

 

1,369,186

 

DEFERRED INCOME TAXES

143,000

 

61,000

 

GOODWILL

671,220

 

671,220

 

INTANGIBLE ASSETS, NET

400,766

 

453,978

 

OTHER ASSETS, NET

49,627

 

50,903

 

Total assets

$

14,911,180

 

$

16,769,697

 

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES

Accounts payable

$

431,187

 

$

448,605

 

Broker margin loan

 

791,370

 

Current maturities of long-term debt

164,866

 

167,616

 

Current operating lease obligations

215,326

 

193,430

 

Accrued expenses

476,035

 

532,520

 

Total current liabilities

1,287,414

 

2,133,541

 

LONG-TERM DEBT, LESS CURRENT PORTION

2,332,014

 

2,658,477

 

NONCURRENT LEASE OBLIGATIONS

1,650,361

 

1,825,057

 

Total liabilities

5,269,789

 

6,617,075

 

SHAREHOLDERS' EQUITY

Common stock

12,492

 

12,792

 

Less cost of Treasury shares

(356,807

)

(106,882

)

Additional paid-in capital

11,527,235

 

11,409,235

 

Accumulated deficit

(1,541,529

)

(1,162,523

)

Total shareholders' equity

9,641,391

 

10,152,622

 

Total liabilities and shareholders' equity

$

14,911,180

 

$

16,769,697

 

Category: Financial

View source version on businesswire.com: https://www.businesswire.com/news/home/20231115703062/en/

KENNETH BRIMMER 612-229-8811