BT Brands Reports First Quarter 2024 Results

Acquisition of Schnitzel Haus Completed

BT Brands, Inc. (Nasdaq: BTBD and BTBDW), today reported its financial results for the first quarter, the thirteen weeks ending March 31, 2024.

Including our 40% ownership of Bagger Dave’s Burger Tavern with six locations (OTCMarkets: BDVB), BT Brands currently operates a total of seventeen restaurants comprising the following:

• Eight Burger Time fast-food restaurants; located in the North Central region of the United States, collectively (“BTND”);
• Bagger Dave’s Burger Tavern, Inc., a 40% owned affiliate, operates 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, a German-themed restaurant, bar, and entertainment venue in Cocoa, Florida (“VBG”).
• Effective May 13, 2024, the Company completed the purchase of the upscale Schnitzel Haus restaurant, www.schnitzelhaushobesound.com located in Hobe Sound, near Stuart, Florida

Highlights and recent activities include:

• Total revenues for the 2024 period increased 3.9% over 2023 to $3.2 million;
• Operating loss for the year declined to a loss of $631,000 from an operating loss of $251,000 in 2023;
• Net loss attributable to common shareholders was $445,700, or $.07 per share for the year;
• Restaurant-level adjusted EBITDA (a non-GAAP measure) for the year declined to a loss of $15,672 in 2024 from a profit of $24,946 in the same period in 2023;
• Our equity in the first quarter loss of our Bagger Dave’s affiliate was $94,500;
• We ended the quarter with $6.1 million in total cash and short-term investments down from $6.9 million one year ago;
• First quarter results for 2023 include a pre-tax gain of $313,000 from the sale of a former Burger Time property in West St. Paul

Gary Copperud, the Company’s Chief Executive Officer, said, “The first quarter is seasonally slower for our Burger Time and Pie in the Sky businesses; we were disappointed in our performance during the first quarter this year and have taken a number of steps to reduce costs and improve performance in all of our businesses. Overall, we continue to see inflationary pressure on our cost of sales inputs. There are persistent challenges with staffing, which, although staffing pressure is lessening as labor markets are more favorable, upward pressure on labor costs continues. As we look toward the balance of 2023, we remain focused on achieving profitability consistent with our expectations.”

Schnitzel Haus Acquisition

Effective May 13, 3024, we acquired the assets of the approximately 175-seat upscale Schnitzel Haus restaurant in Hobe Sound, Florida. The retirement of the previous owners presented BT Brands with an opportunity to acquire a business with robust cash flow at a particularly low multiple. Considerable upside exists as the prior owners had significantly limited the serving hours. There are several potential opportunities available to grow the business.

Fiscal 2024 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, impacts of supply chain constraints, and the current inflationary environment, the Company is not at this point, providing a financial forecast for fiscal 2024.

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. In addition, the Company owns the Pie In The Sky Coffee and Bakery in Woods Hole, Massachusetts, the Village Bier Garten in Cocoa, Florida, Keegan’s Seafood Grille near Clearwater, Florida and Schnitzel Haus in Hobe Sound, 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,

Any forward-looking statement made by us 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.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

13 Weeks Ended,

 

13 Weeks Ended,

 

 

March 31,

2024

 

April 2,

2023

 

 

 

 

 

SALES

 

$

3,190,147

 

 

$

3,070,799

 

 

 

 

 

 

COSTS AND EXPENSES

 

 

 

 

Restaurant operating expenses

 

 

 

 

Food and paper costs

 

 

1,278,958

 

 

 

1,290,323

 

Labor costs

 

 

1,386,686

 

 

 

1,202,760

 

Occupancy costs

 

 

336,275

 

 

 

357,125

 

Other operating expenses

 

 

203,900

 

 

 

195,614

 

Depreciation and amortization expenses

 

 

160,542

 

 

 

163,507

 

General and administrative expenses

 

 

454,615

 

 

 

425,915

 

Gain on sale of assets held for sale

 

 

-

 

 

 

(313,688

)

Total costs and expenses

 

 

3,820,976

 

 

 

3,321,556

 

 

 

 

 

 

Loss from operations

 

 

(630,829

)

 

 

(250,758

)

UNREALIZED GAIN ON MARKETABLE SECURITIES

 

 

114,763

 

 

 

69,856

 

INTEREST EXPENSE

 

 

(27,488

)

 

 

(25,533

)

INTEREST AND DIVIDEND INCOME

 

 

74,854

 

 

 

89,048

 

EQUITY IN LOSS OF AFFILIATE

 

 

(94,500

)

 

 

(54,399

)

LOSS BEFORE TAXES

 

 

(563,200

)

 

 

(141,786

)

INCOME TAX BENEFIT

 

 

117,500

 

 

 

30,000

 

NET LOSS

 

$

(445,700

)

 

$

(141,786

)

NET LOSS PER COMMON SHARE - Basic and Diluted

 

$

(0.07

)

 

$

(0.02

)

 

 

 

 

 

WEIGHTED AVERAGE SHARES USED IN COMPUTING PER COMMON SHARE AMOUNTS - Basic and Diluted

 

 

6,246,118

 

 

 

6,280,729

 

BT BRANDS, INC., AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

Unaudited

March 31, 2024

December 31, 2023

ASSETS

CURRENT ASSETS

Cash and equivalents

$

4,668,295

 

$

5,300,446

 

Marketable securities

 

1,458,213

 

 

1,392,060

 

Receivables

 

13,263

 

 

28,737

 

Inventory

 

226,218

 

 

201,333

 

Prepaid expenses and other current assets

 

77,824

 

 

47,246

 

Assets held for sale

 

258,751

 

 

258,751

 

Total current assets

 

6,702,564

 

 

7,228,573

 

PROPERTY, EQUIPMENT AND LEASEHOLD IMPROVEMENTS, NET

 

3,225,456

 

 

3,247,013

 

OPERATING LEASES RIGHT-OF-USE ASSETS

 

1,732,525

 

 

1,789,285

 

INVESTMENTS

 

928,306

 

 

1,022,806

 

DEFERRED INCOME TAXES

 

323,500

 

 

206,000

 

GOODWILL

 

671,220

 

 

671,220

 

INTANGIBLE ASSETS, NET

 

368,970

 

 

395,113

 

OTHER ASSETS, NET

 

48,776

 

 

49,202

 

Total assets

$

14,001,317

 

$

14,609,212

 

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES

Accounts payable

$

629,504

 

$

555,247

 

Broker margin loan

 

-

 

 

115,899

 

Current maturities of long-term debt

 

171,782

 

 

183,329

 

Current operating lease obligations

 

213,995

 

 

215,326

 

Accrued expenses

 

399,906

 

 

480,289

 

Total current liabilities

 

1,415,187

 

 

1,550,090

 

LONG-TERM DEBT, LESS CURRENT PORTION

 

2,237,610

 

 

2,269,771

 

NONCURRENT LEASE OBLIGATIONS

 

1,551,491

 

 

1,600,622

 

Total liabilities

 

5,204,288

 

 

5,420,483

 

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' EQUITY

Preferred stock, $.001 par value, 2,000,000 shares authorized, no shares outstanding

 

-

 

 

-

 

Common stock, $.002 par value, 50,000,000 authorized, 6,461,118 issued and 6,246,118 shares outstanding at March 31, 2024 and December 31,2023

 

12,492

 

 

12,492

 

Less cost of 215,000 held in Treasury at March 31, 2024 and December 31, 2023,

 

(357,107

)

 

(357,107

)

Additional paid-in capital

 

11,445,135

 

 

11,583,235

 

Accumulated deficit

$

(2,495,591

)

 

(2,049,891

)

Total shareholders' equity

 

8,797,029

 

 

9,188,729

 

Total liabilities and shareholders' equity

$

14,001,317

 

$

14,609,212

 

Category: Financial Category

View source version on businesswire.com: https://www.businesswire.com/news/home/20240515987617/en/

Kenneth Brimmer, 612-229-8811