BTBD BT Brands Inc

Earnings Conference Call at 4:15 Eastern Today

BT Brands, Inc. (Nasdaq: BTBD and BTBDW), today reported its financial results for the 52 weeks ending December 31, 2023, and for the 13 weeks then ended. The results include our 40% share of Bagger Dave’s Burger Tavern results with its six locations. BT Brands currently operates a total of seventeen restaurants comprising the following:

• Seven Burger Time locations and one Dairy Queen franchise are in the North Central region of the United States, collectively (“BTND”).
• Bagger Dave’s Burger Tavern, Inc., a 40%- %-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 2023 increased 15.1% over 2022 to $11.1 million.
• Net loss attributable to common shareholders was $887,368, or $.14 per share in 2023.
• For the year, restaurant-level adjusted EBITDA (a non-GAAP measure) declined to 6.2%.
• Our equity in the loss of Bagger Dave’s was $347,081.
• On December 31, 2023, we had $6.9 million in cash and short-term investments.

Gary Copperud, the Company’s Chief Executive Officer, said, “Certainly, the loss for the year was disappointing. Our share of the Bagger Dave loss of $347,081 is a noncash charge representing 35% of our total loss for the year. Our two Florida locations continued to perform below our expectations; however, recent results have been more encouraging. We are in the midst of a significant effort to rebrand the Bagger locations with a different concept, and we are confident that we can achieve profitability in this entity with minimal investment. Improving the profitability of our Florida businesses continues to be a significant focus of our current activity. We also 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 costs 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 seeing some moderation of inflationary pressure on our cost of sales inputs; however, we continue to face challenges, and the hourly cost of labor has increased significantly. As we consider the balance of 2024, we are focused on achieving profitability consistent with our expectations. We are in the early stages of reviewing several opportunities that could contribute significantly to improved results."

Fiscal 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. Kenneth Brimmer, Chief Financial Officer, and Gary Copperud, Chief Executive Officer, will host the call.

Dial: 877-344-7967 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 2024 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.

Any forward-looking statement 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

 

 

52 Weeks Ended

 

52 Weeks Ended,

 

13 Weeks Ended,

 

13 Weeks Ended,

 

 

December 31, 2023

 

January 1, 2023

 

December 31, 2023

 

January 1, 2023

 

SALES

 

$

14,076,653

 

 

$

12,601,169

 

 

$

2,998,234

 

 

$

2,979,173

 

COSTS AND EXPENSES

       

Restaurant operating expenses

       

Food and paper costs

 

 

5,597,167

 

 

 

4,854,321

 

 

 

1,248,873

 

 

 

1,216,507

 

Labor costs

 

 

5,458,351

 

 

 

4,126,837

 

 

 

1,333,494

 

 

 

1,003,970

 

Occupancy costs

 

 

1,312,717

 

 

 

1,147,744

 

 

 

466,854

 

 

 

343,952

 

Other operating expenses

 

 

841,894

 

 

 

780,564

 

 

 

237,930

 

 

 

200,001

 

Depreciation and amortization

 

 

598,540

 

 

 

449,038

 

 

 

127,739

 

 

 

101,482

 

General and administrative

 

 

1,650,755

 

 

 

1,633,829

 

 

 

362,736

 

 

 

489,452

 

Gain on sale of assets

 

 

(310,182

)

 

 

-

 

 

 

3,506

 

 

 

-

 

Total costs and expenses

 

 

15,149,242

 

 

 

12,992,333

 

 

 

3,781,132

 

 

 

3,355,364

 

Income (loss) from operations

 

 

(1,072,589

)

 

 

(391,164

)

 

 

(782,898

)

 

 

(376,191

)

GAIN (LOSS) ON MARKETABLE SECURITIES

 

 

80,139

 

 

 

(86,422

)

 

 

46,955

 

 

 

28,798

 

INTEREST AND OTHER INCOME

 

 

300,923

 

 

 

125,529

 

 

 

177,293

 

 

 

69,693

 

OTHER INCOME (EXPENSE)

     

 

 

 103,848

 

 

 

 (80,649

)

 

 

           -

 

 

 

        -

 

INTEREST EXPENSE

 

 

(97,608

)

 

 

(114,766

)

 

 

(23,751

)

 

 

(26,667

)

EQUITY NET LOSS OF AFFILIATE

 

 

(347,081

)

 

 

(194,813

)

 

 

(92,809

)

 

 

(59,000

)

LOSS BEFORE TAXES

 

 

(1,032,368

)

 

 

(742,285

)

 

 

(675,210

)

 

 

(363,367

)

INCOME TAX BENEFIT

 

 

145,000

 

 

 

180,000

 

 

 

      63,000

 

 

 

-

 

NET LOSS

 

$

(887,368

)

 

$

(562,285

)

 

$

(612,210

)

 

$

(363,367

)

NET LOSS PER COMMON SHARE -

 

$

    (0.14

)

 

$

     (0.09

)

 

$

        (0.10

)

 

$

     (0.06

)

       

WEIGHTED AVERAGE SHARES

 

 

6,261,631

 

 

 

6,455,379

 

 

 

6,261,631

 

 

 

6,261,631

 

       

BT BRANDS, INC., AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS 

 

December 31, 2023

 

January 1, 2023

ASSETS

 

CURRENT ASSETS

 

Cash and cash equivalents

$

5,300,446

 

 

$

2,150,578

 

Marketable securities

 

1,392,060

 

 

 

5,994,295

 

Receivables

 

28,737

 

 

 

76,948

 

Inventory

 

201,333

 

 

 

158,351

 

Prepaid expenses and other current assets

 

47,246

 

 

 

37,397

 

Assets held for sale

 

258,751

 

 

 

446,524

 

Total current assets

 

7,228,573

 

 

 

8,864,093

 

 

PROPERTY, EQUIPMENT AND LEASEHOLD IMPROVEMENTS, NET

 

3,247,013

 

 

 

3,294,644

 

OPERATING LEASES RIGHT-OF-USE ASSETS

 

1,789,285

 

 

 

2,004,673

 

INVESTMENTS

 

1,022,806

 

 

 

1,369,186

 

DEFERRED INCOME TAXES

 

206,000

 

 

 

61,000

 

GOODWILL

 

671,220

 

 

 

671,220

 

INTANGIBLE ASSETS, NET

 

395,113

 

 

 

453,978

 

OTHER ASSETS, NET

 

49,202

 

 

 

50,903

 

Total assets

$

14,609,212

 

 

$

16,769,697

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

CURRENT LIABILITIES

 

Accounts payable

$

555,247

 

 

$

448,605

 

Broker margin loan

 

115,899

 

 

 

791,370

 

Current maturities of long-term debt

 

183,329

 

 

 

167,616

 

Current operating lease obligations

 

215,326

 

 

 

193,430

 

Accrued expenses

 

480,289

 

 

 

532,520

 

Total current liabilities

 

1,550,090

 

 

 

2,133,541

 

LONG-TERM DEBT, LESS CURRENT PORTION

 

2,269,771

 

 

 

2,658,477

 

NONCURRENT LEASE OBLIGATIONS

 

1,600,622

 

 

 

1,825,057

 

Total liabilities

 

5,420,483

 

 

 

6,617,075

 

SHAREHOLDERS' EQUITY

 

Common stock

 

12,492

 

 

 

12,792

 

Less cost of Treasury shares(357,107)

 

 

(106,882

)

Additional paid-in capital

 

11,583,235

 

 

 

11,409,235

 

Accumulated deficit

 

(2,049,891

)

 

 

(1,162,523

)

Total shareholders' equity

 

9,188,729

 

 

 

10,152,622

 

Total liabilities and shareholders' equity

$

14,609,212

 

 

$

16,769,697

 

   

Category: Financial

View source version on businesswire.com: https://www.businesswire.com/news/home/20240328306121/en/

Kenneth Brimmer, 612-229-8811