BT Brands Reports Results for the Year Ended January 1, 2023

Rhea-AI Summary

BT Brands, Inc. (NASDAQ: BTBD, BTBDW) reported a 49% increase in total revenues for the fiscal year ending January 1, 2023, reaching $12.6 million. However, operating income declined to a loss of $391,164, compared to a profit of $980,712 in 2021. The net loss attributable to common shareholders was $562,285, equating to a loss of $0.09 per share. Restaurant-level Adjusted EBITDA rose to $1,691,703, up from $1,631,530. The company's cash and short-term investments stood at $8.1 million at year-end. BT Brands faced challenges with staffing and inflation, affecting sales and store hours. Despite acquiring three restaurants, there are uncertainties surrounding their performance and impacts of the current economic climate, leading the company to refrain from providing a financial forecast for fiscal 2023.

Positive

• 49% increase in total revenues to $12.6 million.
• Restaurant-level adjusted EBITDA increased to $1,691,703 from $1,631,530.
• Ended the year with $8.1 million in cash and short-term investments.

Negative

• Operating income declined to a loss of $391,164.
• Net loss attributable to common shareholders of $562,285, or $0.09 per share.
• Challenges with staffing and increased costs affecting sales days and store hours.

WEST FARGO, N.D.--(BUSINESS WIRE)-- BT Brands, Inc. (Nasdaq: BTBD and BTBDW), today reported its financial results for the fiscal year ending January 1, 2023.

Following the 2022 acquisition of three operating restaurants, and including the 41.2% owned Bagger Dave’s Burger Tavern six locations (OTCMarkets: BDVB), BT Brands has ownership in nineteen restaurants comprising the following:

• Eight Burger Time fast-food restaurants and one Dairy Queen franchise located in the North Central region of the United States, collectively (“BTND”);
• Bagger Dave’s Burger Tavern, Inc, a 41.2% 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”).

Highlights and recent activities include:

• Total revenues for fiscal 2022 increased 49% to $12.6 million;
• Operating income for the year declined to a loss of $391,164 from an operating profit of $980,712;
• The net loss attributable to common shareholders was $562,285, or a loss of $.09 per share for the year.
• Restaurant-level Adjusted EBITDA (a non-GAAP measure) for the year increased to $1,691,703 in 2022 from $1,631,530 in 2021;
• Equity in the loss of Bagger Dave’s of $194,813 is included in the 2022 loss.
• During the fourth quarter of 2022 the Company repurchased 65,000 shares of common stock for $107,012, approximately $1.65 per share. In the first quarter of 2023, we repurchased an additional 150,000 shares for $250,500 or $1.67 per share.
• The Company ended the year with $8.1 million in cash and short-term investments;
• The sale of a closed Burger Time store in West St. Paul resulted in a pre-tax gain of $313,000, which will be reported in the first quarter of 2023
• We anticipate that the disposition of our St. Louis property will result in a $180,000 gain in the second quarter of 2023.

Gary Copperud, the Company’s Chief Executive Officer, said, “During fiscal 2022, we completed our transition to a public company, significantly increasing our general and administrative expenses. Overall, we have continued to see inflationary pressure on our cost of sales and staffing. Increasing hourly labor rates are an issue in all of our locations. During 2022, staffing issues led to some lost sales days and, in some instances, a curtailment of store hours. All three of our recently acquired restaurants experienced some challenges during the transition period, and we are working to improve these results. Our goal is to achieve long-term profitability consistent with our acquisition expectations, and we believe we are headed in that direction.

Fiscal 2023 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 2023.

Conference Call: Management will host a conference call to discuss its year-ended January 1, 2023, financial results on Thursday, April 21, 2023, at 4:30 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 +1-213-992-4618

The conference call can be accessed live over the phone by dialing the call-in number. In addition, an archive of the call will be available on the Company’s website page after the call has concluded. Website https://itsburgertime.com/corporate/.

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. Including the 2022 acquisition of three operating restaurants and the purchase of 41.2% Bagger Dave’s Burger Tavern with six locations (OTCMarkets: BDVB), BT Brands has ownership in nineteen restaurants. BT Brands continues to seek 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 OPERATIONS
			52 Weeks Ended,
			January 1, 2023				January 2, 2022
SALES		$	12,601,169			$	8,451,870
COSTS AND EXPENSES
Restaurant operating expenses
Food and paper costs			4,854,321				3,285,752
Labor costs			4,126,837				2,383,206
Occupancy costs			1,147,744				681,560
Other operating expenses			780,564				469,822
Depreciation and amortization expenses			449,038				234,027
General and administrative expenses			1,633,829				416,791
Total costs and expenses			12,992,333				7,471,158
Income (loss) from operations			(391,164	)			980,712
UNREALIZED LOSS ON MARKETABLE SECURITIES			(86,422	)			-
INTEREST AND DIVIDEND INCOME			125,529				-
INTEREST EXPENSE			(114,766	)			(172,861	)
OTHER INCOME (EXPENSE)			(80,649	)			-
EQUITY IN NET LOSS OF AFFILIATE			(194,813	)			-
INCOME (LOSS) BEFORE TAXES			(742,285	)			807,851
INCOME TAX (EXPENSE) BENEFIT			180,000				(200,000	)
NET INCOME (LOSS)		$	(562,285	)		$	607,851
NET INCOME (LOSS) PER COMMON SHARE		$	(0.09	)		$	0.14
WEIGHTED AVERAGE SHARES			6,458,810				4,382,848

BT BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
		January 1, 2023				January 2, 2022
ASSETS
CURRENT ASSETS
Cash		$	2,150,578		$	12,385,632
Marketable securities			5,994,295			-
Receivables			76,948			72,251
Inventory			158,351			79,510
Prepaid expenses and other current assets			37,397			27,186
Assets held for sale			446,524			-
Total current assets			8,864,093			12,564,579
PROPERTY, EQUIPMENT AND LEASEHOLD IMPROVEMENTS, NET			3,294,644			1,592,338
OPERATING LEASE RIGHT-OF-USE ASSETS			2,004,673			-
INVESTMENTS			1,369,186			75,000
DEFERRED INCOME TAXES			61,000			-
GOODWILL			671,220			-
INTANGIBLE ASSETS, NET			453,978			-
OTHER ASSETS, NET			50,903			273,810
TOTAL ASSETS		$	16,769,697		$	14,505,727
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable		$	448,605		$	291,973
Broker margin loan			791,370			-
Current maturities of long-term debt			167,616			169,908
Current operating lease obligations			193,430			-
Accrued expenses			532,520			254,341
Income taxes payable			-			209,088
Total current liabilities			2,133,541			925,310
LONG-TERM DEBT, LESS CURRENT PORTION			2,658,477			2,833,064
DEFERRED INCOME TAXES			-			119,000
NONCURRENT LEASE OBLIGATIONS			1,825,057			-
TOTAL LIABILITIES			6,617,075			3,877,374
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY			10,152,622			10,628,353
Total liabilities and shareholders' equity		$	16,769,697		$	14,505,727

Category: Financial Category: Financial

View source version on businesswire.com: https://www.businesswire.com/news/home/20230418005950/en/

KENNETH BRIMMER 612-229-8811

Source: BT Brands, Inc.

FAQ

What were BT Brands' financial results for fiscal 2022?

BT Brands reported total revenues of $12.6 million, a 49% increase, but with an operating loss of $391,164.

What is the net loss reported by BT Brands for 2022?

The net loss attributable to common shareholders was $562,285, or $0.09 per share.

How did BT Brands perform in terms of EBITDA for 2022?

The restaurant-level adjusted EBITDA increased to $1,691,703 in 2022.

What challenges did BT Brands face in fiscal 2022?

BT Brands faced staffing issues and inflationary pressures affecting sales and store hours.

What is the outlook for BT Brands in fiscal 2023?

BT Brands is not providing a financial forecast for fiscal 2023 due to uncertainties regarding its acquisitions and economic conditions.