Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries BT Brands, Inc. Reports Results for the Third Quarter Ending October 2, 2022 By: ACCESSWIRE November 15, 2022 at 08:45 AM EST WEST FARGO, ND / ACCESSWIRE / November 15, 2022 / West Fargo, North Dakota (NASDAQ:BTBD)(NASDAQ:BTBDW), operator of Burger Time, Keegan's Seafood Grille, Pie in the Sky Coffee and Bakery and Village Bier Garten, today reported financial results for the fiscal third quarter ended October 2, 2022. Key highlights of the Company's financial results include: Revenue for the third quarter of 2022 increased 76.4% to $4.0 million from $2.3 in fiscal 2021. The increase during the period resulted from sales from the recently acquired businesses that contributed $1.9 million in revenue. Recently acquired restaurants contributed $1.9 million in revenue during the quarter The Company ended the quarter with $7.2 million in cash Same Store Sales for company-owned Burger Time restaurants decreased by 14.0% for the quarter compared to the prior year's quarter. Staffing challenges also adversely impacted Burger Time, resulting in limited hours and isolated daily store closures during the quarter Income from operations for the 39 weeks declined to $8,991 from $358,743 in the year-earlier period The year-to-date net loss was $224,531 compared to the net income of $583,267 a year ago Gary Copperud, the Company's Chief Executive Officer, said, "Our results this quarter reflect continued growth in revenue as a result of our recent acquisitions offsetting a decline in revenues at Burger Time. We also incurred higher-than-expected costs related to transitioning the acquired businesses. Results reflect an unrealized loss on investments of $155,220 and a loss on the equity in Bagger Dave's of $135,813. The Company faced inflationary pressures on costs and increased challenges in recruiting and retaining employees. I'm excited about all three of our recent restaurant acquisitions, which we expect will meet 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 twelve restaurants, including eight 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'sCompany'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. FINANCIAL TABLES FOLLOW: BT BRANDS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) 39 Weeks Ended October 2, 2022 39 Weeks Ended October 3, 2021 13 Weeks Ended October 2, 2022 13 Weeks Ended October 3, 2021 SALES $ 9,621,996 $ 6,604,554 $ 4,023,920 $ 2,280,999 COSTS AND EXPENSES Restaurant operating expenses Food and paper costs 3,637,814 2,580,224 1,604,858 944,171 Labor costs 3,122,867 1,794,499 1,336,039 607,780 Occupancy costs 803,792 436,196 367,872 132,542 Other operating expenses 577,035 355,024 248,383 102,943 Depreciation and amortization expenses 351,084 173,799 168,855 60,405 General and administrative expenses 1,035,639 295,397 288,921 74,415 Total costs and expenses 9,528,231 5,635,139 4,014,929 1,922,256 Income (loss) from operations 93,765 969,415 8,991 358,743 UNREALIZED LOSS ON MARKETABLE SECURITIES (155,220 ) - (74,982 ) - INTEREST AND OTHER INCOME 55,836 - 46,364 - INTEREST EXPENSE (88,099 ) (161,148 ) (33,638 ) (32,916 ) EQUITY IN NET LOSS OF AFFILIATE (135,813 ) - (121,641 ) - INCOME (LOSS) BEFORE TAXES (229,531 ) 808,267 (174,906 ) 325,827 INCOME TAX (EXPENSE) BENEFIT 5,000 (225,000 ) - (90,000 ) NET INCOME (LOSS) $ (224,531 ) $ 583,267 $ (174,906 ) $ 235,827 NET INCOME (LOSS) PER COMMON SHARE - Basic and Diluted $ (0.03 ) $ 0.14 $ (0.04 ) $ 0.06 WEIGHTED AVERAGE SHARES USED IN COMPUTING PER COMMON SHARE AMOUNTS - Basic and Diluted 6,459,223 4,047,506 6,461,118 4,047,506 BT BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS October 2, 2022 (Unaudited) January 2, 2022 ASSETS CURRENT ASSETS Cash $ 7,165,704 $ 12,385,632 Marketable securities 653,399 - Receivables 57,603 72,251 Inventory 150,814 79,510 Prepaid expenses and other current assets 50,375 27,186 Total current assets 8,077,895 12,564,579 PROPERTY, EQUIPMENT AND LEASEHOLD IMPROVEMENTS, NET 3,541,493 1,592,338 OPERATING LEASES RIGHT-OF-USE ASSETS 1,562,672 - INVESTMENTS 1,428,187 75,000 GOODWILL 488,431 - INTANGIBLE ASSETS 545,500 - OTHER ASSETS, net 280,412 273,810 Total assets $ 15,924,591 $ 14,505,727 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 354,486 $ 291,973 Current maturities of long-term debt 169,504 169,908 Current operating lease obligations 217,744 - Accrued expenses 490,627 254,341 Income taxes payable 8,000 209,088 Total current liabilities 1,240,361 925,310 LONG-TERM DEBT, LESS CURRENT PORTION 2,698,030 2,833,064 NONCURRENT LEASE OBLIGATIONS 1,353,702 - DEFERRED INCOME TAXES 51,510 119,000 Total liabilities $ 5,343,603 $ 3,877,374 SHAREHOLDERS' EQUITY : Preferred stock, $.001 par value, 2,000,000 shares authorized, no shares outstanding at October 2, 2022 and January 2, 2022 - - Common stock, $.002 par value, 50,000,000 authorized, 6,461,118 shares issued and outstanding at October 2, 2022 and 6,447,506 issued and outstanding at January 2, 2022 12,922 12,895 Additional paid-in capital 11,392,835 11,215,696 Accumulated deficit (824,769 ) (600,238 ) Total shareholders' equity 10,580,988 10,628,353 Total liabilities and shareholders' equity $ 15,924,591 $ 14,505,727 CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY For the 39-week periods- Common Stock Additional Accumulated Shares Amount Paid-in Capital (Deficit) Total Balances, January 2, 2022 6,447,506 $ 12,895 $ 11,215,696 $ (600,238 ) $ 10,628,353 Stock-based compensation - - 102,300 - 102,300 Shares issued in exercise of warrants 13,612 27 74,839 - 74,866 Net loss - - - (224,531 ) (224,531 ) Balances, October 2, 2022 6,461,118 $ 12,922 $ 11,392,835 $ (824,769 ) $ 10,580,988 Shares Common Stock Amount Additional Paid-in Capital Accumulated (Deficit) Total Balances, January 3, 2021 4,047,502 $ 8,095 $ 497,671 $ (1,208,089 ) $ (702,323 ) Shares issued for fractional holding 4 - # - - - Net income - - - 583,267 583,267 Balances, October 3, 2021 4,047,506 $ 8,095 $ 497,671 $ (624,822 ) $ (119,056 ) For the 13-week periods- Shares Common Stock Amount Additional Paid-in Capital Accumulated (Deficit) Total Balances, July 3, 2022 6,461,118 $ 12,922 $ 11,363,935 $ (649,863 ) $ 10,726,994 Stock-based compensation - - 28,900 - 28,900 Net loss - - - (174,906 ) (174,906 ) Balances, October 2, 2022 6,461,118 $ 12,922 $ 11,392,835 $ (824,769 ) $ 10,580,988 Shares Common Stock Amount Additional Paid-in Capital Accumulated (Deficit) Total Balances, July 4, 2021 4,047,506 $ 8,095 $ 497,671 $ (860,649 ) $ (354,883 ) Net income - - - 235,827 235,827 Balances, October 3, 2021 4,047,506 $ 8,095 $ 497,671 $ (624,822 ) $ (119,056 ) CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) 39 Weeks Ended October 2, 2022 October 2, 2022 Cash Flows from Operating Activities Net Income (Loss) $ (224,531 ) $ 583,267 Adjustments to reconcile net income (loss) to net cash provided by operating activities- Depreciation and amortization of franchise cost 306,584 173,799 Amortization of intangible assets 44,500 - Amortization of debt issuance costs included in interest expense 4,050 Deferred taxes (67,490 ) 58,000 Stock-based compensation 102,300 - Unrealized loss on marketable securities 155,220 - Loan forgiveness (13,750 - Loss on equity method investment 135,813 - Changes in operating assets and liabilities, net of acquisitions - Receivables 14,648 (12,721 ) Inventory (15,755 ) (8,867 ) Prepaid expenses and other current assets (23,189 ) (29,195 ) Accounts payable 62,512 148,520 Accrued expenses 204,600 (116,136 ) Income taxes payable (201,088 ) 79,110 Net cash provided by operating activities 484,504 931,332 CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of net assets of Keegan's Seafood Grille (1,150,000 ) - Acquisition of net assets of Pie In The Sky Coffee and Bakery (1,159,600 ) Acquisition of net assets of Village Bier Garten (690,000 ) - Investment in Bagger Dave's Burger Tavern, Inc. (1,260,000 ) - Purchase of property and equipment (349,739 ) (85,821 ) Investment in related Company (229,000 ) - Purchase of marketable securities (808,619 ) - Other assets (6,602 ) - Net cash used in investing activities (5,653,560 ) (85,821 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from long-term debt - 3,107,100 Principal payment on long-term debt (125,738 ) (3,113,521 ) Proceeds from exercise of common stock warrants 74,866 - Payment of debt issuance costs - (49,699 ) Payment of deferred offering costs - (31,823 ) Net cash used in financing activities (50,872 ) (87,943 ) CHANGE IN CASH (5,219,928 ) 757,568 CASH, BEGINNING OF PERIOD 12,385,632 1,321,244 CASH, END OF PERIOD $ 7,165,704 $ 2,078,812 SOURCE: BT Brands, Inc. View source version on accesswire.com: https://www.accesswire.com/724729/BT-Brands-Inc-Reports-Results-for-the-Third-Quarter-Ending-October-2-2022 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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BT Brands, Inc. Reports Results for the Third Quarter Ending October 2, 2022 By: ACCESSWIRE November 15, 2022 at 08:45 AM EST WEST FARGO, ND / ACCESSWIRE / November 15, 2022 / West Fargo, North Dakota (NASDAQ:BTBD)(NASDAQ:BTBDW), operator of Burger Time, Keegan's Seafood Grille, Pie in the Sky Coffee and Bakery and Village Bier Garten, today reported financial results for the fiscal third quarter ended October 2, 2022. Key highlights of the Company's financial results include: Revenue for the third quarter of 2022 increased 76.4% to $4.0 million from $2.3 in fiscal 2021. The increase during the period resulted from sales from the recently acquired businesses that contributed $1.9 million in revenue. Recently acquired restaurants contributed $1.9 million in revenue during the quarter The Company ended the quarter with $7.2 million in cash Same Store Sales for company-owned Burger Time restaurants decreased by 14.0% for the quarter compared to the prior year's quarter. Staffing challenges also adversely impacted Burger Time, resulting in limited hours and isolated daily store closures during the quarter Income from operations for the 39 weeks declined to $8,991 from $358,743 in the year-earlier period The year-to-date net loss was $224,531 compared to the net income of $583,267 a year ago Gary Copperud, the Company's Chief Executive Officer, said, "Our results this quarter reflect continued growth in revenue as a result of our recent acquisitions offsetting a decline in revenues at Burger Time. We also incurred higher-than-expected costs related to transitioning the acquired businesses. Results reflect an unrealized loss on investments of $155,220 and a loss on the equity in Bagger Dave's of $135,813. The Company faced inflationary pressures on costs and increased challenges in recruiting and retaining employees. I'm excited about all three of our recent restaurant acquisitions, which we expect will meet 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 twelve restaurants, including eight 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'sCompany'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. FINANCIAL TABLES FOLLOW: BT BRANDS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) 39 Weeks Ended October 2, 2022 39 Weeks Ended October 3, 2021 13 Weeks Ended October 2, 2022 13 Weeks Ended October 3, 2021 SALES $ 9,621,996 $ 6,604,554 $ 4,023,920 $ 2,280,999 COSTS AND EXPENSES Restaurant operating expenses Food and paper costs 3,637,814 2,580,224 1,604,858 944,171 Labor costs 3,122,867 1,794,499 1,336,039 607,780 Occupancy costs 803,792 436,196 367,872 132,542 Other operating expenses 577,035 355,024 248,383 102,943 Depreciation and amortization expenses 351,084 173,799 168,855 60,405 General and administrative expenses 1,035,639 295,397 288,921 74,415 Total costs and expenses 9,528,231 5,635,139 4,014,929 1,922,256 Income (loss) from operations 93,765 969,415 8,991 358,743 UNREALIZED LOSS ON MARKETABLE SECURITIES (155,220 ) - (74,982 ) - INTEREST AND OTHER INCOME 55,836 - 46,364 - INTEREST EXPENSE (88,099 ) (161,148 ) (33,638 ) (32,916 ) EQUITY IN NET LOSS OF AFFILIATE (135,813 ) - (121,641 ) - INCOME (LOSS) BEFORE TAXES (229,531 ) 808,267 (174,906 ) 325,827 INCOME TAX (EXPENSE) BENEFIT 5,000 (225,000 ) - (90,000 ) NET INCOME (LOSS) $ (224,531 ) $ 583,267 $ (174,906 ) $ 235,827 NET INCOME (LOSS) PER COMMON SHARE - Basic and Diluted $ (0.03 ) $ 0.14 $ (0.04 ) $ 0.06 WEIGHTED AVERAGE SHARES USED IN COMPUTING PER COMMON SHARE AMOUNTS - Basic and Diluted 6,459,223 4,047,506 6,461,118 4,047,506 BT BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS October 2, 2022 (Unaudited) January 2, 2022 ASSETS CURRENT ASSETS Cash $ 7,165,704 $ 12,385,632 Marketable securities 653,399 - Receivables 57,603 72,251 Inventory 150,814 79,510 Prepaid expenses and other current assets 50,375 27,186 Total current assets 8,077,895 12,564,579 PROPERTY, EQUIPMENT AND LEASEHOLD IMPROVEMENTS, NET 3,541,493 1,592,338 OPERATING LEASES RIGHT-OF-USE ASSETS 1,562,672 - INVESTMENTS 1,428,187 75,000 GOODWILL 488,431 - INTANGIBLE ASSETS 545,500 - OTHER ASSETS, net 280,412 273,810 Total assets $ 15,924,591 $ 14,505,727 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 354,486 $ 291,973 Current maturities of long-term debt 169,504 169,908 Current operating lease obligations 217,744 - Accrued expenses 490,627 254,341 Income taxes payable 8,000 209,088 Total current liabilities 1,240,361 925,310 LONG-TERM DEBT, LESS CURRENT PORTION 2,698,030 2,833,064 NONCURRENT LEASE OBLIGATIONS 1,353,702 - DEFERRED INCOME TAXES 51,510 119,000 Total liabilities $ 5,343,603 $ 3,877,374 SHAREHOLDERS' EQUITY : Preferred stock, $.001 par value, 2,000,000 shares authorized, no shares outstanding at October 2, 2022 and January 2, 2022 - - Common stock, $.002 par value, 50,000,000 authorized, 6,461,118 shares issued and outstanding at October 2, 2022 and 6,447,506 issued and outstanding at January 2, 2022 12,922 12,895 Additional paid-in capital 11,392,835 11,215,696 Accumulated deficit (824,769 ) (600,238 ) Total shareholders' equity 10,580,988 10,628,353 Total liabilities and shareholders' equity $ 15,924,591 $ 14,505,727 CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY For the 39-week periods- Common Stock Additional Accumulated Shares Amount Paid-in Capital (Deficit) Total Balances, January 2, 2022 6,447,506 $ 12,895 $ 11,215,696 $ (600,238 ) $ 10,628,353 Stock-based compensation - - 102,300 - 102,300 Shares issued in exercise of warrants 13,612 27 74,839 - 74,866 Net loss - - - (224,531 ) (224,531 ) Balances, October 2, 2022 6,461,118 $ 12,922 $ 11,392,835 $ (824,769 ) $ 10,580,988 Shares Common Stock Amount Additional Paid-in Capital Accumulated (Deficit) Total Balances, January 3, 2021 4,047,502 $ 8,095 $ 497,671 $ (1,208,089 ) $ (702,323 ) Shares issued for fractional holding 4 - # - - - Net income - - - 583,267 583,267 Balances, October 3, 2021 4,047,506 $ 8,095 $ 497,671 $ (624,822 ) $ (119,056 ) For the 13-week periods- Shares Common Stock Amount Additional Paid-in Capital Accumulated (Deficit) Total Balances, July 3, 2022 6,461,118 $ 12,922 $ 11,363,935 $ (649,863 ) $ 10,726,994 Stock-based compensation - - 28,900 - 28,900 Net loss - - - (174,906 ) (174,906 ) Balances, October 2, 2022 6,461,118 $ 12,922 $ 11,392,835 $ (824,769 ) $ 10,580,988 Shares Common Stock Amount Additional Paid-in Capital Accumulated (Deficit) Total Balances, July 4, 2021 4,047,506 $ 8,095 $ 497,671 $ (860,649 ) $ (354,883 ) Net income - - - 235,827 235,827 Balances, October 3, 2021 4,047,506 $ 8,095 $ 497,671 $ (624,822 ) $ (119,056 ) CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) 39 Weeks Ended October 2, 2022 October 2, 2022 Cash Flows from Operating Activities Net Income (Loss) $ (224,531 ) $ 583,267 Adjustments to reconcile net income (loss) to net cash provided by operating activities- Depreciation and amortization of franchise cost 306,584 173,799 Amortization of intangible assets 44,500 - Amortization of debt issuance costs included in interest expense 4,050 Deferred taxes (67,490 ) 58,000 Stock-based compensation 102,300 - Unrealized loss on marketable securities 155,220 - Loan forgiveness (13,750 - Loss on equity method investment 135,813 - Changes in operating assets and liabilities, net of acquisitions - Receivables 14,648 (12,721 ) Inventory (15,755 ) (8,867 ) Prepaid expenses and other current assets (23,189 ) (29,195 ) Accounts payable 62,512 148,520 Accrued expenses 204,600 (116,136 ) Income taxes payable (201,088 ) 79,110 Net cash provided by operating activities 484,504 931,332 CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of net assets of Keegan's Seafood Grille (1,150,000 ) - Acquisition of net assets of Pie In The Sky Coffee and Bakery (1,159,600 ) Acquisition of net assets of Village Bier Garten (690,000 ) - Investment in Bagger Dave's Burger Tavern, Inc. (1,260,000 ) - Purchase of property and equipment (349,739 ) (85,821 ) Investment in related Company (229,000 ) - Purchase of marketable securities (808,619 ) - Other assets (6,602 ) - Net cash used in investing activities (5,653,560 ) (85,821 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from long-term debt - 3,107,100 Principal payment on long-term debt (125,738 ) (3,113,521 ) Proceeds from exercise of common stock warrants 74,866 - Payment of debt issuance costs - (49,699 ) Payment of deferred offering costs - (31,823 ) Net cash used in financing activities (50,872 ) (87,943 ) CHANGE IN CASH (5,219,928 ) 757,568 CASH, BEGINNING OF PERIOD 12,385,632 1,321,244 CASH, END OF PERIOD $ 7,165,704 $ 2,078,812 SOURCE: BT Brands, Inc. View source version on accesswire.com: https://www.accesswire.com/724729/BT-Brands-Inc-Reports-Results-for-the-Third-Quarter-Ending-October-2-2022
WEST FARGO, ND / ACCESSWIRE / November 15, 2022 / West Fargo, North Dakota (NASDAQ:BTBD)(NASDAQ:BTBDW), operator of Burger Time, Keegan's Seafood Grille, Pie in the Sky Coffee and Bakery and Village Bier Garten, today reported financial results for the fiscal third quarter ended October 2, 2022. Key highlights of the Company's financial results include: Revenue for the third quarter of 2022 increased 76.4% to $4.0 million from $2.3 in fiscal 2021. The increase during the period resulted from sales from the recently acquired businesses that contributed $1.9 million in revenue. Recently acquired restaurants contributed $1.9 million in revenue during the quarter The Company ended the quarter with $7.2 million in cash Same Store Sales for company-owned Burger Time restaurants decreased by 14.0% for the quarter compared to the prior year's quarter. Staffing challenges also adversely impacted Burger Time, resulting in limited hours and isolated daily store closures during the quarter Income from operations for the 39 weeks declined to $8,991 from $358,743 in the year-earlier period The year-to-date net loss was $224,531 compared to the net income of $583,267 a year ago Gary Copperud, the Company's Chief Executive Officer, said, "Our results this quarter reflect continued growth in revenue as a result of our recent acquisitions offsetting a decline in revenues at Burger Time. We also incurred higher-than-expected costs related to transitioning the acquired businesses. Results reflect an unrealized loss on investments of $155,220 and a loss on the equity in Bagger Dave's of $135,813. The Company faced inflationary pressures on costs and increased challenges in recruiting and retaining employees. I'm excited about all three of our recent restaurant acquisitions, which we expect will meet 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 twelve restaurants, including eight 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'sCompany'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. FINANCIAL TABLES FOLLOW: BT BRANDS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) 39 Weeks Ended October 2, 2022 39 Weeks Ended October 3, 2021 13 Weeks Ended October 2, 2022 13 Weeks Ended October 3, 2021 SALES $ 9,621,996 $ 6,604,554 $ 4,023,920 $ 2,280,999 COSTS AND EXPENSES Restaurant operating expenses Food and paper costs 3,637,814 2,580,224 1,604,858 944,171 Labor costs 3,122,867 1,794,499 1,336,039 607,780 Occupancy costs 803,792 436,196 367,872 132,542 Other operating expenses 577,035 355,024 248,383 102,943 Depreciation and amortization expenses 351,084 173,799 168,855 60,405 General and administrative expenses 1,035,639 295,397 288,921 74,415 Total costs and expenses 9,528,231 5,635,139 4,014,929 1,922,256 Income (loss) from operations 93,765 969,415 8,991 358,743 UNREALIZED LOSS ON MARKETABLE SECURITIES (155,220 ) - (74,982 ) - INTEREST AND OTHER INCOME 55,836 - 46,364 - INTEREST EXPENSE (88,099 ) (161,148 ) (33,638 ) (32,916 ) EQUITY IN NET LOSS OF AFFILIATE (135,813 ) - (121,641 ) - INCOME (LOSS) BEFORE TAXES (229,531 ) 808,267 (174,906 ) 325,827 INCOME TAX (EXPENSE) BENEFIT 5,000 (225,000 ) - (90,000 ) NET INCOME (LOSS) $ (224,531 ) $ 583,267 $ (174,906 ) $ 235,827 NET INCOME (LOSS) PER COMMON SHARE - Basic and Diluted $ (0.03 ) $ 0.14 $ (0.04 ) $ 0.06 WEIGHTED AVERAGE SHARES USED IN COMPUTING PER COMMON SHARE AMOUNTS - Basic and Diluted 6,459,223 4,047,506 6,461,118 4,047,506 BT BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS October 2, 2022 (Unaudited) January 2, 2022 ASSETS CURRENT ASSETS Cash $ 7,165,704 $ 12,385,632 Marketable securities 653,399 - Receivables 57,603 72,251 Inventory 150,814 79,510 Prepaid expenses and other current assets 50,375 27,186 Total current assets 8,077,895 12,564,579 PROPERTY, EQUIPMENT AND LEASEHOLD IMPROVEMENTS, NET 3,541,493 1,592,338 OPERATING LEASES RIGHT-OF-USE ASSETS 1,562,672 - INVESTMENTS 1,428,187 75,000 GOODWILL 488,431 - INTANGIBLE ASSETS 545,500 - OTHER ASSETS, net 280,412 273,810 Total assets $ 15,924,591 $ 14,505,727 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 354,486 $ 291,973 Current maturities of long-term debt 169,504 169,908 Current operating lease obligations 217,744 - Accrued expenses 490,627 254,341 Income taxes payable 8,000 209,088 Total current liabilities 1,240,361 925,310 LONG-TERM DEBT, LESS CURRENT PORTION 2,698,030 2,833,064 NONCURRENT LEASE OBLIGATIONS 1,353,702 - DEFERRED INCOME TAXES 51,510 119,000 Total liabilities $ 5,343,603 $ 3,877,374 SHAREHOLDERS' EQUITY : Preferred stock, $.001 par value, 2,000,000 shares authorized, no shares outstanding at October 2, 2022 and January 2, 2022 - - Common stock, $.002 par value, 50,000,000 authorized, 6,461,118 shares issued and outstanding at October 2, 2022 and 6,447,506 issued and outstanding at January 2, 2022 12,922 12,895 Additional paid-in capital 11,392,835 11,215,696 Accumulated deficit (824,769 ) (600,238 ) Total shareholders' equity 10,580,988 10,628,353 Total liabilities and shareholders' equity $ 15,924,591 $ 14,505,727 CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY For the 39-week periods- Common Stock Additional Accumulated Shares Amount Paid-in Capital (Deficit) Total Balances, January 2, 2022 6,447,506 $ 12,895 $ 11,215,696 $ (600,238 ) $ 10,628,353 Stock-based compensation - - 102,300 - 102,300 Shares issued in exercise of warrants 13,612 27 74,839 - 74,866 Net loss - - - (224,531 ) (224,531 ) Balances, October 2, 2022 6,461,118 $ 12,922 $ 11,392,835 $ (824,769 ) $ 10,580,988 Shares Common Stock Amount Additional Paid-in Capital Accumulated (Deficit) Total Balances, January 3, 2021 4,047,502 $ 8,095 $ 497,671 $ (1,208,089 ) $ (702,323 ) Shares issued for fractional holding 4 - # - - - Net income - - - 583,267 583,267 Balances, October 3, 2021 4,047,506 $ 8,095 $ 497,671 $ (624,822 ) $ (119,056 ) For the 13-week periods- Shares Common Stock Amount Additional Paid-in Capital Accumulated (Deficit) Total Balances, July 3, 2022 6,461,118 $ 12,922 $ 11,363,935 $ (649,863 ) $ 10,726,994 Stock-based compensation - - 28,900 - 28,900 Net loss - - - (174,906 ) (174,906 ) Balances, October 2, 2022 6,461,118 $ 12,922 $ 11,392,835 $ (824,769 ) $ 10,580,988 Shares Common Stock Amount Additional Paid-in Capital Accumulated (Deficit) Total Balances, July 4, 2021 4,047,506 $ 8,095 $ 497,671 $ (860,649 ) $ (354,883 ) Net income - - - 235,827 235,827 Balances, October 3, 2021 4,047,506 $ 8,095 $ 497,671 $ (624,822 ) $ (119,056 ) CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) 39 Weeks Ended October 2, 2022 October 2, 2022 Cash Flows from Operating Activities Net Income (Loss) $ (224,531 ) $ 583,267 Adjustments to reconcile net income (loss) to net cash provided by operating activities- Depreciation and amortization of franchise cost 306,584 173,799 Amortization of intangible assets 44,500 - Amortization of debt issuance costs included in interest expense 4,050 Deferred taxes (67,490 ) 58,000 Stock-based compensation 102,300 - Unrealized loss on marketable securities 155,220 - Loan forgiveness (13,750 - Loss on equity method investment 135,813 - Changes in operating assets and liabilities, net of acquisitions - Receivables 14,648 (12,721 ) Inventory (15,755 ) (8,867 ) Prepaid expenses and other current assets (23,189 ) (29,195 ) Accounts payable 62,512 148,520 Accrued expenses 204,600 (116,136 ) Income taxes payable (201,088 ) 79,110 Net cash provided by operating activities 484,504 931,332 CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of net assets of Keegan's Seafood Grille (1,150,000 ) - Acquisition of net assets of Pie In The Sky Coffee and Bakery (1,159,600 ) Acquisition of net assets of Village Bier Garten (690,000 ) - Investment in Bagger Dave's Burger Tavern, Inc. (1,260,000 ) - Purchase of property and equipment (349,739 ) (85,821 ) Investment in related Company (229,000 ) - Purchase of marketable securities (808,619 ) - Other assets (6,602 ) - Net cash used in investing activities (5,653,560 ) (85,821 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from long-term debt - 3,107,100 Principal payment on long-term debt (125,738 ) (3,113,521 ) Proceeds from exercise of common stock warrants 74,866 - Payment of debt issuance costs - (49,699 ) Payment of deferred offering costs - (31,823 ) Net cash used in financing activities (50,872 ) (87,943 ) CHANGE IN CASH (5,219,928 ) 757,568 CASH, BEGINNING OF PERIOD 12,385,632 1,321,244 CASH, END OF PERIOD $ 7,165,704 $ 2,078,812 SOURCE: BT Brands, Inc. View source version on accesswire.com: https://www.accesswire.com/724729/BT-Brands-Inc-Reports-Results-for-the-Third-Quarter-Ending-October-2-2022