Back Yard Burgers Reports First Quarter Financial Results
28 April 2006 - 9:00PM
Business Wire
Back Yard Burgers, Inc. (Nasdaq:BYBI) today announced results for
the first quarter of 2006. -- Total revenues for the 13-week period
ended April 1, 2006, were $10,641,000, a record first quarter for
the Company and an increase of approximately 10.0% over total
revenues for the 13-week period ended April 2, 2005. The higher
revenues resulted primarily from a $724,000 increase in
Company-operated restaurant sales and a $204,000 increase in
royalty fees over the year-earlier period primarily due to a net
increase of 17 franchised restaurants since April 2, 2005. -- The
Company reported a net income of $217,000, or $0.04 per diluted
share, for the first quarter of 2006 compared with net loss of
$163,000, or $0.03 per diluted share, for the first quarter of
2005. Net income for the first quarter of 2006 includes a gain of
approximately $106,000 (net of tax expense of $56,000) on the sale
of assets. During the first quarter of 2006, the Company also
adopted SFAS 123 (Revised), "Share-Based Payment," a revision of
SFAS 123, "Accounting for Stock-Based Compensation." SFAS 123R
requires the fair value measurement of all stock-based payments to
employees, including grants of employee stock options, and
recognition of those expenses in the statement of operations. As a
result, the Company recorded a non-cash charge of $27,000 (net of a
tax benefit of $6,000) during the first quarter of 2006. There was
no comparable expense recorded during the first quarter of 2005.
The net loss for the first quarter of 2005 includes a non-cash
charge of approximately $358,000 (net of a tax benefit of $153,000)
relating to the extension of the exercise date of certain stock
options. -- During the first quarter of 2006, same-store sales for
Company-operated restaurants increased 3.0% from the comparable
period in 2005 and same-store sales for franchised restaurants
increased 2.3% for the same period. Same-store sales for both
Company-operated and franchised restaurants were positively
affected by approximately 0.5% due to the fact that Easter Sunday
occurred during the first quarter of 2005 and during the second
quarter of 2006. Historically, sales at the Company's restaurants
and franchises are lower on Easter Sunday. -- Unit activity for the
quarter included the opening of five franchised stores and the
closing of one company-operated store and three franchised stores.
As of April 1, 2006, the Company's restaurant system comprised 172
units, including 42 Company-operated stores and 130 franchised
stores. Expansion plans for the remainder of 2006 include the
opening of two Company-operated stores and 20 franchised stores.
Back Yard Burgers operates and franchises quick-service restaurants
in 20 states, primarily in markets throughout the Southeast region
of the United States. The restaurants specialize in charbroiled,
freshly prepared, great-tasting food. As its name implies, Back
Yard Burgers strives to offer the same high-quality ingredients and
special care typified by outdoor grilling in the backyard. Its menu
features made-to-order gourmet Black Angus hamburgers and chicken
sandwiches - charbroiled over an open flame, fresh salads, chili
and other specialty items, including hand-dipped milkshakes,
fresh-made lemonade and fresh-baked cobblers. This press release
contains forward-looking statements within the meaning of the
federal securities laws, including statements regarding the number
of Company-operated and franchised restaurants the Company
anticipates opening during fiscal year 2006. Forward-looking
statements are based upon estimates, projections, beliefs and
assumptions of management at the time of such statements and should
not be viewed as guarantees of future performance. Such
forward-looking information involves important risks and
uncertainties that could significantly impact anticipated results
in the future and, accordingly, such results may differ materially
from those expressed in any forward-looking statements by or on
behalf of the Company. The factors that could cause our actual
results to differ materially, many of which are beyond our control,
include, but are not limited to, the following: delays in opening
new stores or outlets because of weather, local permitting, and the
availability and cost of land and construction; increases in
competition and competitive discounting; increases in minimum wage
and other operating costs; shortages in raw food products;
volatility of commodity prices; consumer preferences, spending
patterns and demographic trends; the possibility of unforeseen
events affecting the industry generally, and other risks described
from time to time in our periodic reports filed with the Securities
and Exchange Commission. Back Yard Burgers, Inc. disclaims any
obligation to update or revise any forward-looking statement based
on the occurrence of future events, the receipt of new information,
or otherwise. -0- *T BACK YARD BURGERS, INC Unaudited Consolidated
Statements of Operations (in thousands, except per share amounts)
Thirteen Weeks Ended -------------------- 04/01/06 04/02/05
-------- -------- Revenues: Restaurant sales $ 8,932 $ 8,208
Franchise and area development fees 86 165 Royalty fees 1,135 931
Advertising fees 297 244 Other 191 129 -------- -------- Total
revenues 10,641 9,677 -------- -------- Expenses: Cost of
restaurant sales 2,997 2,639 Restaurant operating expenses 4,290
3,995 General and administrative 1,748 2,054 Advertising 685 554
Depreciation and amortization 551 563 Gain on sale of assets (162)
- -------- -------- Total expenses 10,109 9,805 -------- --------
Operating income (loss) 532 (128) -------- -------- Interest income
7 6 Interest expense (189) (108) Other, net (23) (21) --------
-------- Income before income taxes 327 (251) Income tax expense
(benefit) 110 (88) -------- -------- Net income (loss) $ 217 $
(163) ======== ======== Income (loss) per share: Basic $ 0.04 $
(0.03) ======== ======== Diluted $ 0.04 $ (0.03) ======== ========
Weighted average number of common shares and common equivalent
shares outstanding: Basic 4,943 4,791 ======== ======== Diluted
5,105 5,135 ======== ======== *T
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