BT Brands Reports Third Quarter 2024 Results
WEST FARGO, N.D.--(BUSINESS WIRE)--November 13, 2024--
BT Brands, Inc. (Nasdaq: BTBD and BTBDW), today reported its financial results for the third quarter, the thirteen weeks ending September 29, 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-themed
restaurant in Hobe Sound, near Stuart, Florida ("Schnitzel").
Highlights and recent activities include:
--
Total revenues for the 2024 period increased 8.1% to a record high of
$4.3 million;
--
Net loss attributable to common shareholders was $219,479, or $.04 per
share for the third quarter compared to a net loss of $3,486 in 2023;
--
Restaurant-level adjusted EBITDA (a non-GAAP measure) for the 13-week
period was $442,000, a decline of $56,000 from the prior year's third
quarter of $498,000 ;
--
Our equity in the third quarter loss of our Bagger Dave's affiliate was
$116,000 compared to a loss of 109,000 in the same period a year ago;
--
We ended the quarter with $5.0 million in total cash and short-term
investments, down from $5.1 million at the end of the second quarter;
--
Pie in the Sky continues to contribute strong performance, with a
third-quarter revenue increase of approximately 13% over the same period
in 2023 to approximately $1,467,000.
--
The Burger Time units increased quarterly sales by approximately 9% and
increased total sales increased by approximately 24% over the prior year
for the 39 weeks.
Gary Copperud, the Company's Chief Executive Officer, said, "Our third quarter results continued challenging bottom line performance at our restaurants as a result of 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 input. The challenge in staffing has moderated. However, we continue to see upward pressure on labor costs." BT Brands, CFO, Kenneth Brimmer, added "We are continuing our efforts to reduce costs and improve performance in all of our businesses, and we remain focused on achieving profitability consistent with our expectations."
Sale of Trademark Asset
Following the end of the quarter, we completed the sale of a trademark asset property, Hot-N-Now, with no cost basis for an upfront cash payment of $250,000 and future payments of up to $150,000 based upon $10,000 per unit opened by the purchaser. A gain of approximately $250,000 will be recognized in the fourth quarter.
Ham Lake Burger Time Location
In July 2024, we rebranded our Ham Lake, Minnesota location to Burger Time. While there were difficulties with training and local brand recognition during the first few months of opening, we expect this location to perform similarly to our other Burger Time locations.
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)
39 Weeks 39 Weeks 13 Weeks 13 Weeks
Ended, Ended, Ended, Ended,
September October 2, September October
29, 2024 2023 29, 2024 1, 2023
SALES $11,649,610 $11,078,419 $4,348,824 $4,007,656
COSTS AND EXPENSES
Restaurant
operating
expenses
Food and
paper
costs 4,407,101 4,348,294 1,563,073 1,449,796
Labor costs 4,636,598 4,124,857 1,698,150 1,509,721
Occupancy
costs 1,058,029 845,863 377,398 340,002
Other
operating
expenses 653,769 603,964 238,031 209,721
Depreciation
and
amortization
expenses 473,420 470,801 141,527 114,774
General and
administrative
expenses 1,284,871 1,288,019 375,451 343,027
Loss (Gain) on
sale of
assets 30,205 (313,688) 30,205 -
Total costs
and
expenses 12,543,993 11,368,110 4,423,835 3,967,041
Income
(Loss) from
operations (894,384) (289,691) (75,011) 40,615
UNREALIZED GAIN
(LOSS) ON
MARKETABLE
SECURITIES 163,014 33,184 (69,933) -
REALIZED GAIN
(LOSS) ON SALE OF
MARKETABLE
SECURITIES 29,219 - (343) -
INTEREST AND OTHER
INCOME 186,892 123,630 50,142 89,069
INTEREST EXPENSE (72,591) (73,857) (22,552) (23,948)
EQUITY IN NET LOSS
OF AFFILIATE (291,282) (254,272) (115,782) (109,222)
LOSS BEFORE TAXES (879,131) (461,006) (233,479) (3,486)
INCOME TAX BENEFIT 144,000 82,000 14,000 -
NET LOSS $ (735,131) $ (379,006) $(219,479) $ (3,486)
NET LOSS PER
COMMON SHARE - $ (0.12) $ (0.06) $ (0.04) $ (0.00)
WEIGHTED AVERAGE
SHARES - Basic
and Diluted 6,221,154 6,257,652 6,181,952 6,246,118
BT BRANDS, INC., AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
September 29, December 31,
ASSETS 2024 2023
CURRENT ASSETS
Cash $ 3,085,342 $ 5,300,446
Marketable securities 1,969,964 1,392,060
Receivables 49,390 28,737
Inventory 289,199 201,333
Prepaid expenses and other current
assets 80,942 47,246
Assets held for sale 258,751 258,751
Total current assets 5,733,588 7,228,573
PROPERTY, EQUIPMENT AND LEASEHOLD
IMPROVEMENTS, NET 3,699,988 3,247,013
OPERATING LEASES RIGHT-OF-USE ASSETS 1,787,992 1,789,285
INVESTMENTS AND NOTES RECEIVABLE 851,524 1,022,806
DEFERRED INCOME TAXES 350,000 206,000
GOODWILL 796,220 671,220
INTANGIBLE ASSETS, NET 423,205 395,113
OTHER ASSETS, NET 37,543 49,202
Total assets $ 13,680,060 $ 14,609,212
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 588,968 $ 555,247
Broker margin loan 16,417 115,899
Current maturities of long-term
debt 170,203 183,329
(MORE TO FOLLOW) Dow Jones Newswires
November 13, 2024 16:15 ET (21:15 GMT)
Comments