BT Brands Reports Second Quarter 2023 Results

Rhea-AI Summary

BT Brands, Inc. reports financial results for Q2 2023, with total revenues increasing by 13.5% to $7.1 million. Operating income declined to a loss of $79,548 and net loss attributable to common shareholders was $375,520. Restaurant-level adjusted EBITDA declined by 3.8% to $971,000. The company ended the quarter with $6.9 million in total cash and short-term investments.

Positive

• Total revenues increased by 13.5% to $7.1 million in Q2 2023
• The company ended the quarter with $6.9 million in total cash and short-term investments

Negative

• Operating income declined to a loss of $79,548 in Q2 2023
• Net loss attributable to common shareholders was $375,520 in Q2 2023
• Restaurant-level adjusted EBITDA declined by 3.8% to $971,000 in Q2 2023

Earnings Conference Call at 4:15 Eastern Today

WEST FARGO, N.D.--(BUSINESS WIRE)-- 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: +1-213-992-4618 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

Source: BT Brands, Inc.

FAQ

What were the total revenues for Q2 2023?

Total revenues for Q2 2023 increased by 13.5% to $7.1 million.

What was the operating income for Q2 2023?

The operating income for Q2 2023 was a loss of $79,548.

What was the net loss attributable to common shareholders for Q2 2023?

The net loss attributable to common shareholders for Q2 2023 was $375,520.

What was the restaurant-level adjusted EBITDA for Q2 2023?

The restaurant-level adjusted EBITDA for Q2 2023 declined by 3.8% to $971,000.

How much cash and short-term investments did the company have at the end of the quarter?

The company ended the quarter with $6.9 million in total cash and short-term investments.