Business
BT Brands Reports 2023 Results
Earnings Conference Call at 4:15 Eastern Today WEST FARGO, N.D.--(BUSINESS WIRE)-- BT Brands, Inc. (Nasdaq: BTBD and BTBDW), today reported its financial
About this update from Bt Brands, Inc.
Earnings Conference Call at 4:15 Eastern Today 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 CONSOLIDATED BALANCE SHEETS 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 View source version on businesswire.com : https://www.businesswire.com/news/home/20240328306121/en/ Kenneth Brimmer , 612-229-8811 Source: BT Brands, Inc.