BT Brands Reports Second Quarter 2024 Results
WEST FARGO, N.D.--(BUSINESS WIRE)--August 13, 2024--
BT Brands, Inc. (Nasdaq: BTBD and BTBDW), today reported its financial results for the second quarter, the thirteen weeks ending June 30, 2024.
Including our 40% ownership of Bagger Dave's Burger Tavern with six locations (OTCMarkets: BDVB), BT Brands currently operates seventeen restaurants comprising the following:
-- Eight Burger Time fast-food restaurants; located in the North Central
region of the United States, collectively ("BTND");
-- Bagger Dave's Burger Tavern, Inc., a 40% owned affiliate, operates 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, a German-themed restaurant, bar, and entertainment
venue in Cocoa, Florida ("VBG").
-- Schnitzel Haus, a German food restaurant, located in Hobe Sound, near
Stuart, Florida ("Schnitzel").
Highlights and recent activities include:
-- Total revenues for the 2024 period increased 2.7% over 2023 to $4.1
million;
-- Net loss attributable to common shareholders was $69,952, or $.010 per
share for the second quarter compared to a net loss of $233,734 in 2023;
-- Restaurant-level adjusted EBITDA (a non-GAAP measure) for the 13-week
period was $437,000, a decline from $632,000 in the prior year's second
quarter ;
-- Our equity in the second quarter loss of our Bagger Dave's affiliate
was $81,000;
-- We ended the quarter with $5.2 million in total cash and short-term
investments, down from $6.9 million one year ago as a result of our
recent acquisition and capital improvements at our restaurant;
-- Pie in the Sky continues to contribute strong performance, with a
second-quarter revenue increase of approximately 17.5% over the same
period in 2023 to approximately $1,057,000.
-- The Burger Time units increased same-store sales by more than 10% and
increased total revenue by approximately 15% over the prior year.
Gary Copperud, the Company's Chief Executive Officer, said, "Our second quarter results reflect improving results at our restaurants, reduced by increased labor costs, including the addition of senior staff at Pie In the Sky. Our stores experience seasonal sales patterns; Burger Time and Pie in the Sky traditionally see an increase in sales in the second quarter compared to the first quarter due to weather and tourism. Overall, we continue to see pressure on our cost of sales inputs. There is a persistent challenge in staffing, which, even though the shortage of candidates has moderated we continue to see an upward pressure on labor costs. We are continuing our initiative to reduce costs and improve performance in all of our businesses, and we remain focused on achieving profitability consistent with our expectations."
Kenneth Brimmer, COO, commented, "We expect to see significant improvement in restaurant operating results in the second half of 2024."
Schnitzel Haus Acquisition
Effective May 13, 3024, we acquired the assets of the approximately 175-seat upscale Schnitzel Haus restaurant in Hobe Sound, Florida. The retirement of the previous owners presented BT Brands with an opportunity to acquire a business with robust cash flow at a particularly low multiple. We believe there is considerable upside exists as the prior owners significantly limited the serving hours. There are several potential opportunities available to grow the business.
Fiscal 2024 Outlook: Because of the uncertain nature of recent acquisitions' performance and our evolving character, as well as continuing uncertainty surrounding the current inflationary environment and the state of the economy, the Company is not, at this point, providing a financial forecast for fiscal 2024.
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. In addition, the Company owns the Pie In The Sky Coffee and Bakery in Woods Hole, Massachusetts, the Village Bier Garten in Cocoa, Florida, Keegan's Seafood Grille near Clearwater, Florida and Schnitzel Haus in Hobe Sound, 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,
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.
Financial Results Follow:
BT BRANDS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
26 Weeks 26 Weeks 13 Weeks 13 Weeks
Ended, Ended, Ended, Ended,
June 30, July 2, June 30, July 2,
2024 2023 2024 2023
--------- --------- --------- ---------
SALES $7,300,786 $7,070,763 $4,110,639 $3,999,965
--------- --------- --------- ---------
COSTS AND EXPENSES
Restaurant
operating
expenses
Food and
paper
costs 2,844,028 2,898,498 1,565,070 1,608,175
Labor costs 2,938,448 2,615,136 1,551,762 1,412,376
Occupancy
costs 680,631 505,861 344,356 148,736
Other
operating
expenses 415,738 394,243 211,838 198,629
Depreciation and
amortization
expenses 331,893 356,027 171,351 192,520
General and
administrative
expenses 909,420 944,992 454,805 519,077
Gain on sale of
assets - (313,688) - -
--------- --------- --------- ---------
Total costs
and
expenses 8,120,158 7,401,069 4,299,182 4,079,513
--------- --------- --------- ---------
Loss from
operations (819,372) (330,306) (188,543) (79,548)
UNREALIZED GAIN (LOSS)
ON MARKETABLE
SECURITIES 232,947 (23,064) 118,184 (92,920)
REALIZED GAIN ON SALE
OF MARKETABLE
SECURITIES 29,562 - 29,562 -
INTEREST AND OTHER
INCOME 136,750 90,809 61,896 1,761
INTEREST EXPENSE (50,039) (49,909) (22,551) (24,376)
EQUITY IN NET LOSS
OF AFFILIATE (175,500) (145,050) (81,000) (90,651)
--------- --------- --------- ---------
LOSS BEFORE TAXES (645,652) (457,520) (82,452) (285,734)
INCOME TAX BENEFIT 130,000 82,000 12,500 52,000
--------- --------- --------- ---------
NET LOSS $(515,652) $(375,520) $ (69,952) $(233,734)
========= ========= ========= =========
NET LOSS PER COMMON
SHARE - $ (0.08) $ (0.06) $ (0.01) $ (0.04)
========= ========= ========= =========
WEIGHTED AVERAGE
SHARES USED IN
COMPUTING PER COMMON
SHARE AMOUNTS - Basic
and Diluted 6,240,953 6,261,631 6,235,788 6,246,114
========= ========= ========= =========
BT BRANDS, INC., AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
ASSETS June 30, 2024 December 31, 2023
--------------- ------------------
CURRENT ASSETS
Cash $ 3,772,177 $ 5,300,446
Marketable
securities 1,513,146 1,392,060
Receivables 28,310 28,737
Inventory 300,147 201,333
Prepaid expenses
and other current
assets 93,017 47,246
Assets held for
sale 258,751 258,751
----------- -----------------
Total current
assets 5,965,548 7,228,573
-----------
PROPERTY, EQUIPMENT AND
LEASEHOLD
IMPROVEMENTS, NET 3,773,270 3,247,013
OPERATING LEASES
RIGHT-OF-USE ASSETS 1,854,459 1,789,285
INVESTMENTS AND NOTE
RECEIVABLE 954,024 1,022,806
DEFERRED INCOME TAXES 182,988 206,000
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