WEST FARGO, N.D.--(BUSINESS WIRE)--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
| |||||||
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
Contacts
Kenneth Brimmer, 612-229-8811
