BTBD BT Brands Inc

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 20, 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

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KENNETH BRIMMER 612-229-8811