BT Brands Reports Second Quarter 2023 Results

Earnings Conference Call at 4:15 Eastern Today

BT Brands, Inc. (Nasdaq: BTBD and BTBDW), today reported its financial results for the thirteen weeks ending July 2, 2023, and for the 26-week period then end.

The results for 2023 include a full quarter for the three 2022 restaurant acquisitions, and our 41.2% ownership of Bagger Dave’s Burger Tavern with six locations, (OTCMarkets: BDVB), BT Brands operates a total of eighteen restaurants comprising the following:

• Eight Burger Time locations and one Dairy Queen franchise; in the North Central region of the United States, collectively (“BTND”);
• Bagger Dave’s Burger Tavern, Inc., a 41.2% 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 the 2023 period increased 13.5% over 2022 to $7.1 million;
• Operating income for the year declined to a loss of $79,548 from an operating loss of $4,148 in 2022;
• Net loss attributable to common shareholders was $375,520, or $.06 per share for the year;
• For the 26-week period Restaurant-level adjusted EBITDA (a non-GAAP measure) for the year declined just 3.8% to $971,000 in 2023 from $1,010,000 in the same period in 2022;
• Our equity in the second quarter loss of Bagger Dave’s was $90,651
• We ended the quarter with $6.9 million in total cash and short-term investments;
• Final disposition of our St. Louis property resulted in a $180,000 reduction in occupancy expenses in the second quarter of 2023.

Gary Copperud, the Company’s Chief Executive Officer, said, “The second quarter is a period of building sales throughout the quarter for our Burger Time business, and our Pie in The Sky business follows a similar seasonal sales pattern, with both businesses experiencing strong June results. Our two Florida locations performed significantly below our expectations during the first half of 2023 as a result of continued volatile market conditions for both seafood costs and challenges in securing a stable workforce. We also faced more adverse weather during the quarter than we anticipated impacting the top-line performance at both locations. Addressing profitability in the Florida businesses is of the highest priority as we move into the remainder of 2023. As a public company, we bear a significant burden of general and administrative expenses related to compliance and other public company costs, our goal is to spread these expenses over a larger revenue base in the future. We are experiencing some moderation of the 2022 inflationary pressure on our cost of sales inputs; however, we continue to face challenges in staffing even with labor markets trending slightly more favorable. As we consider the balance of 2023, we are focused on achieving profitability consistent with our expectations.

Fiscal 2023 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 at this point, providing a financial forecast for fiscal 2023.

Conference Call: Management will host a conference call to discuss the second quarter financial results today, August 16, 2023, at 4:15 p.m. ET. Hosting the call will be Kenneth Brimmer, Chief Financial Officer and Gary Copperud, Chief Executive Officer.

Dial: 877-344-8082 Secondary, international dial-in: [phone] 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 2023 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.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: the disruption to our business from public health emergencies, the impact on our results of operations, and our financial condition; the uncertain nature of the restaurant industry; our ability to integrate acquired 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, staffing shortages and the effect of inflation on key supplies and inputs.

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.

Financial Results Follow:

BT BRANDS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

 

 

 

26 Weeks Ended

 

26 Weeks Ended,

 

13 Weeks Ended,

 

13 Weeks Ended,

 

 

July 2,

2023

 

July 3,

2022

 

July 2,

2023

 

July 3,

2023

SALES

 

$

7,070,763

 

 

$

5,598,076

 

 

$

3,999,965

 

 

$

3,524,881

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COSTS AND EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

Restaurant operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

Food and paper costs

 

 

2,898,498

 

 

 

2,032,956

 

 

 

1,608,175

 

 

 

1,311,373

 

Labor costs

 

 

2,615,136

 

 

 

1,786,828

 

 

 

1,412,376

 

 

 

1,179,118

 

Occupancy costs

 

 

505,861

 

 

 

435,920

 

 

 

148,736

 

 

 

261,282

 

Other operating expenses

 

 

394,243

 

 

 

332,181

 

 

 

198,629

 

 

 

212,314

 

Depreciation and amortization expenses

 

 

356,027

 

 

 

178,701

 

 

 

192,520

 

 

 

109,286

 

General and administrative expenses

 

 

944,992

 

 

 

746,717

 

 

 

519,077

 

 

 

455,656

 

Gain on sale of assets

 

 

(313,688

)

 

 

-

 

 

 

-

 

 

 

-

 

Total costs and expenses

 

 

7,401,069

 

 

 

5,513,303

 

 

 

4,079,513

 

 

 

3,529,029

 

Income (loss) from operations

 

 

(330,306

)

 

 

84,773

 

 

 

(79,548

)

 

 

(4,148

)

 

 

 

 

 

 

 

 

 

 

 

 

 

UNREALIZED GAIN (LOSS) ON MARKETABLE SECURITIES

 

 

(23,064

)

 

 

(80,238

)

 

 

(92,919

)

 

 

(80,238

)

INTEREST AND OTHER INCOME

 

 

90,810

 

 

 

9,473

 

 

 

1,761

 

 

 

9,473

 

INTEREST EXPENSE

 

 

(49,909

)

 

 

(54,461

)

 

 

(24,376

)

 

 

(26,190

)

EQUITY IN NET LOSS OF AFFILIATE

 

 

(145,050

)

 

 

(14,172

)

 

 

(90,651

)

 

 

(14,172

)

LOSS BEFORE TAXES

 

 

(457,520

)

 

 

(54,625

)

 

 

(285,734

)

 

 

(115,275

)

INCOME TAX BENEFIT

 

 

82,000

 

 

 

5,000

 

 

 

52,000

 

 

 

23,000

 

NET LOSS

 

$

(375,520

)

 

$

(49,625

)

 

$

(233,734

)

 

$

(92,275

)

NET LOSS PER COMMON SHARE - Basic and Diluted

 

$

(0.06

)

 

$

(0.01

)

 

$

(0.04

)

 

$

(0.01

)

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

6,261,631

 

 

 

6,458,276

 

 

 

6,246,114

 

 

 

6,461,118

 

BT BRANDS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

 

 

Unaudited

 

 

 

July 2,

2023

 

January 1,

2023

ASSETS

 

 

 

 

CURRENT ASSETS

 

 

 

 

Cash and equivalents

 

$

5,704,879

 

 

$

2,150,578

 

Marketable securities

 

 

1,233,796

 

 

 

5,994,295

 

Receivables

 

 

35,412

 

 

 

76,948

 

Inventory

 

 

191,206

 

 

 

158,351

 

Prepaid expenses and other current assets

 

 

58,140

 

 

 

37,397

 

Assets held for sale

 

 

258,751

 

 

 

446,524

 

Total current assets

 

 

7,482,184

 

 

 

8,864,093

 

 

 

 

 

 

 

 

PROPERTY, EQUIPMENT AND LEASEHOLD IMPROVEMENTS, NET

 

 

3,276,683

 

 

 

3,294,644

 

OPERATING LEASES RIGHT-OF-USE ASSETS

 

 

1,890,044

 

 

 

2,004,673

 

INVESTMENTS

 

 

1,224,837

 

 

 

1,369,186

 

DEFERRED INCOME TAXES

 

 

143,000

 

 

 

61,000

 

GOODWILL

 

 

671,220

 

 

 

671,220

 

INTANGIBLE ASSETS, NET

 

 

411,713

 

 

 

453,978

 

OTHER ASSETS, NET

 

 

50,052

 

 

 

50,903

 

Total assets

 

$

15,149,733

 

 

$

16,769,697

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

Accounts payable

 

$

639,226

 

 

$

448,605

 

Broker margin loan

 

 

-

 

 

 

791,370

 

Current maturities of long-term debt

 

 

164,866

 

 

 

167,616

 

Current operating lease obligations

 

 

286,114

 

 

 

193,430

 

Accrued expenses

 

 

451,891

 

 

 

532,520

 

Total current liabilities

 

 

1,542,097

 

 

 

2,133,541

 

 

 

 

 

 

 

 

LONG-TERM DEBT, LESS CURRENT PORTION

 

 

2,374,705

 

 

 

2,658,477

 

NONCURRENT LEASE OBLIGATIONS

 

 

1,628,754

 

 

 

1,825,057

 

Total liabilities

 

 

5,545,556

 

 

 

6,617,075

 

 

 

 

 

 

 

 

SHAREHOLDERS' EQUITY

 

 

 

 

 

 

Preferred stock, $.001 par value, 2,000,000 shares authorized, no shares outstanding at July 2, 2023 and January 1, 2023

 

 

-

 

 

 

-

 

Common stock, $.002 par value, 50,000,000 authorized, 6,246,118 issued and outstanding at July 2, 2023 and 6,396,118 issued and outstanding at January 1, 2023

 

 

12,492

 

 

 

12,792

 

Less cost of 215,000 and 65,000 common shares held in Treasury at July 2, 2023 and January 1, 2023

 

 

(356,807

)

 

 

(106,882

)

Additional paid-in capital

 

 

11,486,535

 

 

 

11,409,235

 

Accumulated deficit

 

(1,538,043

)

 

 

(1,162,523

)

 

 

 

 

 

 

 

Total shareholders' equity

 

 

9,604,177

 

 

 

10,152,622

 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

 

$

15,149,733

 

 

$

16,769,697

 

Category: Financial

View source version on businesswire.com: https://www.businesswire.com/news/home/20230816647290/en/

KENNETH BRIMMER 612-229-8811