BT Brands, Inc. Reports Results for the Second Quarter Ending July 3, 2022

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WEST FARGO, ND / ACCESSWIRE / August 16, 2022 / BT Brands, Inc. (Nasdaq:BTBD)(Nasdaq:BTBDW), operator of Burger Time, Keegan's Seafood Grille, and Pie in the Sky Coffee and Bakery, today reported financial results for the fiscal second quarter ended July 3, 2022.

BT BRANDS INC., Thursday, August 11, 2022, Press release picture
BT BRANDS INC., Thursday, August 11, 2022, Press release picture

Key highlights of the Company's financial results include:

  • Total Revenues increased 47.9% to $3.5 million for the quarter compared to the prior year's quarter and increased 29.5% to $5.6 million year-to-date compared to the previous year period

  • Completed acquisition of Pie in the Sky Coffee and Bakery located in Woods Hole, Massachusetts entering the dynamic retail coffee and breakfast market with a major tourist-driven location

  • The Company ended the quarter with $8.3 million in cash on hand

  • Acquired 41.2% of Bagger Dave's Burger Tavern, Inc. operator of six Bagger Dave's restaurants

  • Same Store Sales for company-owned Burger Time restaurants decreased 12.4% for the quarter compared to the prior year quarter and declined 10.5% year-to-date compared to the prior year period

  • Net loss was $49,625 for the quarter, and the net loss was $92,275 year-to-date

Gary Copperud, the Company's Chief Executive Officer, said, "Our results this quarter reflect the positive contribution of our recent acquisitions offset by a decline in revenues at Burger time as dining activities returned to more closely resemble the pre-pandemic. The Company also faced inflationary pressures on both costs of sales and labor wage rates. I'm excited about all three of our recent restaurant acquisitions, which we expect will exceed our target returns and contribute to a doubling of sales for fiscal 2022 compared to 2021.

Fiscal 2022 Outlook: Because of the uncertain nature of the performance of recent acquisitions and the evolving character of our Company and because of continuing uncertainty surrounding public health concerns and the aftermath, impacts of supply chain constraints, and the current inflationary environment, the Company is not, at this point, providing a financial forecast for fiscal 2022.

About BT Brands Inc.: BT Brands, Inc. (Nasdaq: BTBD BTBDW) BT Brands owns and operates thirteen restaurants, including nine Burger Time restaurants in the North Central region of the United States, a Dairy Queen fast-food franchised location in suburban Minneapolis, Minnesota. The Company owns Keegan's Seafood Grille, a dine-in restaurant near Clearwater, Florida, and Pie In The Sky Coffee and Bakery, a casual dining coffee shop and bakery located in Woods Hole, Massachusetts. Our Burger Time restaurants feature a variety of burgers and other affordable foods, sides, and soft drinks. Keegan's Seafood Grille has operated in Indian Rocks Beach, Florida, for more than thirty-five years and offers a variety of traditional fresh seafood items for lunch and dinner. The menu at Keegan's includes beer and wine. Pie In The Sky features an array of fresh baked goods, freshly made sandwiches, and our locally roasted coffee. Our revenues are derived from food and beverages at our restaurants; retail goods such as apparel, private-labeled "Keegan's Hot Sauce," and other souvenir items account for an insignificant portion of our income. Following the end of the quarter, we acquired the Village Bier Garten located in Cocoa, Florida.

Forward-Looking Statements Disclaimer: This press release contains forward-looking statements within the meaning of federal securities laws. The words "intend," "may," "believe," "will," "should," "anticipate," "expect," "seek," and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, which may cause the Company's actual results to differ materially from results expressed or implied by the forward-looking statements. Such risks and uncertainties include, among other things, the market price of the Company's stock prevailing from time to time, the nature of other investment opportunities presented to the Company, the Company's financial performance, and its cash flows from operations, general economic conditions, which could adversely affect the Company's results of operations and cash flows. These risks also include such factors as the disruption to our business from public health issues, including the coronavirus pandemic and its impact on our operations, which may vary depending on the duration and extent of the effects of governmental actions and customer behavior in response, the impact and duration of staffing constraints at our restaurants, the impact of supply chain constraints and the current inflationary environment, the uncertain nature of current restaurant development plans and the ability to implement those plans and integrate new restaurants, delays in developing and opening new restaurants because of weather, local permitting or other reasons, increased competition, cost increases or shortages in raw food products, and other matters discussed under the Risk Factors section of BT Brands Annual Report on Form 10-K for the fiscal year ended March 17, 2022, filed with the SEC, and other filings with the SEC. BT Brands disclaims any obligation or duty to update or modify these forward-looking statements.

Category: Financial

BT BRANDS, INC. AND SUBSIDIARIES

FINANCIAL TABLES FOLLOW:
BT BRANDS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

26 Weeks Ended

26 Weeks Ended,

13 Weeks Ended,

13 Weeks Ended,

July 3,
2022

July 4,
2021

July 3,
2022

July 4,
2021

SALES

$

5,598,076

$

4,323,555

$

3,524,881

$

2,382,683

COSTS AND EXPENSES

Restaurant operating expenses

Food and paper costs

2,032,956

1,636,053

1,311,373

908,760

Labor costs

1,786,828

1,186,719

1,179,118

621,227

Occupancy costs

435,920

303,654

261,282

167,106

Other operating expenses

332,181

252,081

212,314

128,872

Depreciation and amortization expenses

178,701

113,394

109,286

58,558

General and administrative expenses

746,717

220,982

455,656

110,983

Total costs and expenses

5,513,303

3,712,883

3,529,029

1,995,506

Income from operations

84,773

610,672

(4,148

)

387,177

UNREALIZED LOSS ON MARKETABLE SECURITIES

(80,238

)

-

(80,238

)

-

INTEREST AND OTHER INCOME

9,473

-

9,473

-

INTEREST EXPENSE

(54,461

)

(128,232

)

(26,190

)

(89,661

)

EQUITY IN NET LOSS OF AFFILIATE

(14,172

)

-

(14,172

)

-

INCOME (LOSS) BEFORE TAXES

(54,625

)

482,440

(115,275

)

297,516

INCOME TAX (EXPENSE) BENEFIT

5,000

(135,000

)

23,000

(85,000

)

NET INCOME (LOSS)

$

(49,625

)

$

347,440

$

(92,275

)

$

212,516

NET INCOME (LOSS) PER COMMON SHARE - Basic and Diluted

$

(0.01

)

$

0.09

$

(0.01

)

$

0.05


WEIGHTED AVERAGE SHARES

6,458,276

4,047,502

6,461,118

4,047,502

BT BRANDS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

July 3,
2022
(Unaudited)

January 2,
2022

ASSETS

CURRENT ASSETS

Cash

$

8,295,952

$

12,385,632

Marketable securities

527,750

-

Receivables

36,058

72,251

Inventory

146,892

79,510

Prepaid expenses and other current assets

53,460

27,186

Total current assets

9,060,112

12,564,579

PROPERTY, EQUIPMENT AND LEASEHOLD IMPROVEMENTS, NET

2,977,153

1,592,338

OPERATING LEASES RIGHT-OF-USE ASSETS

1,146,167

-

INVESTMENTS

1,549,828

75,000

GOODWILL

488,431

-

INTANGIBLE ASSETS

425,000

-

OTHER ASSETS, net

285,285

273,810

Total assets

$

15,931,986

$

14,505,727

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES

Accounts payable

$

498,257

$

291,973

Current maturities of long-term debt

171,358

169,908

Current operating lease obligations

134,188

-

Accrued expenses

575,790

254,341

Income taxes payable

8,000

209,088

Total current liabilities

1,387,593

925,310

LONG-TERM DEBT, LESS CURRENT PORTION

2,750,279

2,833,064

NONCURRENT LEASE OBLIGATIONS

1,015,610

-

DEFERRED INCOME TAXES

51,510

119,000

Total liabilities

5,204,992

3,877,374

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' EQUITY

6,447,506 shares issued and outstanding at July 3, 2022

and January 2, 2022, respectively

12,922

12,895

Additional paid-in capital

-

11,363,935

Accumulated deficit

(649,863

)

(600,238

)

Total shareholders' equity

(10,726,994

)

10,628,353

Total liabilities and shareholders' equity

$

15,931,986

$

14,505,727

SOURCE: BT Brands, Inc.



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