BT Brands Reports Results for 2021 and Fourth Quarter Ended January 2, 2022

Rhea-AI Summary

BT Brands reported financial results for the fiscal year ending January 2, 2022, with total revenues of $8.5 million, marking a 3.6% increase from the previous year. Operating income surged by 83.3% to $980,712, and net income reached $608,000, translating to $.14 per share. The company ended the year with $12.4 million in cash after a public offering that netted $10.7 million. Despite these successes, inflationary pressures and supply chain constraints pose challenges, leading to an expectation of margin compression. No financial forecast for fiscal 2022 was provided.

Positive

• Total revenues increased 3.6% to $8.5 million for fiscal 2021.
• Operating income increased 83.3% to $980,712.
• Net income attributable to common shareholders was $608,000 or $0.14 per share.
• Ended the year with $12.4 million in cash from a successful public offering.

Negative

• Facing inflationary pressure and supply chain constraints.
• Expecting margin compression due to rising costs.

WEST FARGO, ND / ACCESSWIRE / March 16, 2022 / BT Brands, Inc. (NASDAQ:BTBD)(NASDAQ:BTBDW), operator of fast-casual restaurant Burger Time and the recently acquired Keegan's Seafood Grille, reported financial results for the fiscal fourth quarter and the fiscal year ended January 2, 2022.

Key highlights of the Company's financial results include:

• Total revenues for fiscal 2021 increased 3.6% to $8.5 million for the 52-week year compared to the fiscal 2020 53-week year
• Operating income for the year increased 83.3% to $980,712
• Net income attributable to common shareholders was $608,000 or $.14 per share for the year
• The Company ended the year with $12.4 million in cash following its November 2021 public offering which raised a net of $10.7 million

Gary Copperud, the Company's Chief Executive Officer, said, "We earned record sales and operating profits in 2021. A major achievement during the quarter was the completion of our initial public offering raising a net of $10.7 million in new equity for our Company. With our offering proceeds and the continued strong performance of Burger Time, we are now pursuing our plan of growing through acquisitions in the restaurant industry. We closed our initial acquisition with the purchase of Keegan's Seafood Grille earlier this month. We expect the contribution of Keegan's to have a meaningfully positive impact on our future financial results." Mr. Copperud added, "as others in our industry are, we are facing inflationary pressure, supply chain constraints, and a tight staffing market. We have raised prices and expect to increase prices in the future; however, we are, expecting some margin compression."

Fiscal 2022 Outlook:

In light of the ongoing uncertainty surrounding possible acquisitions in 2022, the impacts of labor markets and supply chain constraints and the current inflationary environment, the Company is not providing a financial forecast for fiscal 2022.

Investor presentation: The Company is making its initial investment conference presentation at the 2022 Virtual Growth Conference, presented by Maxim Group LLC, and hosted by M-Vest, on March 28th - 30th to register go to M-Vest.com. To view the Company's recorded presentation go to:

https://prezi.com/v/mec3vwh9rmwa/bt-brands-investor-presentation/

About BT Brands Inc.: BT Brands Inc. (BTBD and BTBDW) owns, operates a fast-food restaurant chain called Burger Time with locations in North and South Dakota and Minnesota. The Company recently acquired Keegan Seafood Grille located near Clearwater, Florida area. BT Brands is seeking acquisitions within the restaurant industry.

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. These risks include such factors as the disruption to our business from the COVID-19 pandemic and the impact on our results of operations, financial condition, and prospects which may vary depending on the duration and extent of the pandemic and the impact of federal, state and local government actions and customer behavior in response to the pandemic, the impact and duration of staffing constraints at our restaurants, 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 the BT Brands' Annual Report on Form 10-K for the fiscal year ended January 2, 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.

CONTACT FOR FURTHER INFORMATION:

KENNETH BRIMMER
612-229-8811

BT BRANDS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

		Fiscal year ended								Fiscal quarter ended
		January 2, 2022 (52 Weeks)				January 3, 2021 (53 Weeks)				January 2, 2022 (13 Weeks)				January 3, 2021 (14 Weeks)
SALES		$	8,451,870			$	8,159,796			$	1,847,316			$	2,085,574
COSTS AND EXPENSES
Restaurant operating expenses
Food and paper costs			3,285,752				3,090,816				705,528				863,997
Labor costs			2,383,206				2,335,949				588,707				624,696
Occupancy costs			681,560				790,704				245,364				170,109
Other operating expenses			469,822				426,553				114,798				121,827
Depreciation and amortization			234,027				189,389				60,228				49,668
Impairment of assets held for sale			-				190,493				-				90,493
General and administrative			416,791				687,524				121,394				396,069
Total costs and expenses			7,471,158				7,630,428				1,836,019				2,182,450
Income (loss) from operations			980,712				529,368				11,297				(96,876	)
INTEREST EXPENSE			(172,861	)			(177,757	)			(11,713	)			(41,188	)
INTEREST INCOME			-				103,623				-				28,507
OTHER INCOME			-				466,758				-				-
INCOME (LOSS) BEFORE TAXES			807,851				921,992				(416	)			(127,370	)
INCOME TAXES (PROVISION) BENEFIT			(200,000	)			(130,000	)			25,000				104,000
NET INCOME (LOSS)		$	607,851			$	791,992			$	24,584			$	(23,370	)
NET INCOME (LOSS) PER COMMON SHARE -
Basic and diluted		$	0.14			$	0.20			$	0.00			$	(0.00	)
WEIGHTED AVERAGE SHARES USED IN COMPUTATION			4,382,848				4,047,502				5,392,561				4,047,502

BT BRANDS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

		January 2, 2022				January 3, 2021
ASSETS
CURRENT ASSETS
Cash		$	12,385,632			$	1,321,244
Receivables			72,251				19,030
Inventory			79,510				60,576
Prepaid expenses and other current assets			27,186				5,348
Total current assets			12,564,579				1,406,198
PROPERTY AND EQUIPMENT, net			1,592,338				1,632,457
LAND AND BUILDINGS HELD FOR SALE			258,751				258,751
INVESTMENT IN RELATED COMPANY			75,000				75,000
OTHER ASSETS, net			15,059				16,759
Total assets		$	14,505,727			$	3,389,165
LIABILITIES AND SHAREHOLDERS' DEFICIT
CURRENT LIABILITIES
Current maturities of long-term debt		$	291,973			$	245,306
Accounts payable			169,908				270,487
Accrued expenses			254,341				420,734
Income taxes payable			209,088				97,978
Total current liabilities			925,310				1,034,505
LONG-TERM DEBT, less current maturities			2,833,064				2,938,983
DEFERRED INCOME TAXES			119,000				118,000
Total liabilities			3,877,374				4,091,488
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY (DEFICIT)
Preferred stock, $.001 par value, 2,000,000 shares authorized, no shares outstanding at January 2, 2022, and January 3, 2021			-				-
Common stock, $.002 par value, 50,000,000 authorized,6,447,506 and 4,047,506 shares outstanding at January 2, 2021 and January 3, 2021			12,895				8,095
Additional paid-in capital			11,215,696				497,671
Accumulated deficit			(624,822	)			(1,208,089	)
Total shareholders' deficit			(119,056	)			(702,323	)
Total liabilities and shareholders' equity (deficit)		$	14,505,727			$	3,389,165

SOURCE: BT Brands, Inc.

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FAQ

What were BT Brands' total revenues for fiscal 2021?

BT Brands reported total revenues of $8.5 million for fiscal 2021.

What was BT Brands' net income for the year ended January 2, 2022?

BT Brands' net income attributable to common shareholders was $608,000 or $0.14 per share.

What challenges is BT Brands facing in 2022?

BT Brands is facing inflationary pressure, supply chain constraints, and expects margin compression.

What major acquisition did BT Brands complete recently?

BT Brands completed the acquisition of Keegan's Seafood Grille.

What was the operating income for BT Brands in fiscal 2021?

The operating income for BT Brands increased to $980,712 in fiscal 2021.