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

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.

Foto: Accesswire

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.

View source version on accesswire.com:
https://www.accesswire.com/711834/BT-Brands-Inc-Reports-Results-for-th ...