-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, MGOy6w2WbV5pW0z1I/cpdu8CA504dnOPrx1pB5TjNwbYZTYmY1V4hfp/zBoOamkA Vg2dkvBYUf+jp7scYS9Nlg== 0000813920-04-000060.txt : 20041014 0000813920-04-000060.hdr.sgml : 20041014 20041014113611 ACCESSION NUMBER: 0000813920-04-000060 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040926 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20041014 DATE AS OF CHANGE: 20041014 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CEC ENTERTAINMENT INC CENTRAL INDEX KEY: 0000813920 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-EATING PLACES [5812] IRS NUMBER: 480905805 STATE OF INCORPORATION: KS FISCAL YEAR END: 1230 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13687 FILM NUMBER: 041078268 BUSINESS ADDRESS: STREET 1: PO BOX 152077 CITY: IRVING STATE: TX ZIP: 75015 BUSINESS PHONE: 9722585403 MAIL ADDRESS: STREET 1: PO BOX 152077 CITY: IRVING STATE: TX ZIP: 75015 FORMER COMPANY: FORMER CONFORMED NAME: SHOWBIZ PIZZA TIME INC DATE OF NAME CHANGE: 19920703 8-K 1 k83rd2004earn.txt 2004 3RD QTR EARNINGS UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 8-K Current Report Pursuant to Section 13 or 15(d) of Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): October 13, 2004 Commission File Number 0-15782 CEC ENTERTAINMENT, INC. (Exact name of registrant as specified in its charter) Kansas 48-0905805 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 4441 West Airport Freeway Irving, Texas 75062 (Address of principal executive offices, including zip code) (972) 258-8507 (Registrant's telephone number, including area code) Item 7: Financial Statements and Exhibits. (c) Exhibits 99.1 Press Release of CEC Entertainment, Inc. dated October 13, 2004. Item 12: Results of Operations and Financial Condition The information furnished in this Current Report on Form 8-K and the Exhibit attached hereto shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of such section. On October 13, 2004, CEC Entertainment, Inc. issued a press release announcing financial results for the fiscal second quarter ended September 26, 2004. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. CEC ENTERTAINMENT, INC. Dated: October 13, 2004 By: /s/ Richard M. Frank ------------------------------- Richard M. Frank Chairman of the Board and Chief Executive Officer EXHIBIT INDEX Exhibit Number Description - ------- ----------- 99.1 Press Release of CEC Entertainment, Inc.dated October 13, 2004. EX-99 2 ex9913rd2004.txt PRESS RELEASE FOR RELEASE CONTACT:Chris Morris October 13, 2004 Senior Vice President 3:05 p.m. Central Time Chief Financial Officer (972) 258-4525 CEC ENTERTAINMENT, INC. REPORTS RECORD THIRD QUARTER RESULTS IRVING, TEXAS - CEC Entertainment, Inc. (NYSE:"CEC") today announced record earnings for the third quarter ended September 26, 2004. Revenues for the third quarter of 2004 increased to $183.6 million from $170.1 million in the third quarter of 2003. Net income in the third quarter of 2004 increased to $22.0 million from $16.8 million in the same period of 2003. Diluted earnings per share increased to $0.58 in the third quarter of 2004 from $0.42 in the third quarter of 2003. Financial results in the third quarter of 2003 included a pretax charge of $4.25 million or approximately $0.07 per diluted share after taxes related to the settlement of litigation. Revenues for the first nine months of 2004 increased to $556.0 million from $507.1 million in the first nine months of 2003. Net income in the first nine months of 2004 increased to $69.7 million from $59.0 million in the same period of 2003. Diluted earnings per share increased to $1.80 in the first nine months of 2004 from $1.45 in the first nine months of 2003. Chris Morris, Senior Vice President and Chief Financial Officer, stated that, "New store development and an increase in comparable store sales of 0.4% contributed to a 7.9% increase in revenue in the third quarter of 2004. Excluding the $4.25 million legal charge in 2003, net income and diluted earnings per share in the third quarter increased 13% and 18%, respectively. During the first nine months of 2004, the Company generated operating cash flow of $131.3 million, invested $52.0 million in new and existing stores and repurchased $103.9 million of the Company's common stock while maintaining a strong balance sheet." Mr. Morris further added, "Based on current estimates, we expect diluted earnings per share to range from $0.44 to $0.45 in the fourth quarter of 2004, including an estimated $0.10 to $0.12 per share benefit from the extra week in fiscal year 2004, and a diluted earnings per share range of $0.86 to $0.88 in the first quarter of 2005. The current preliminary estimate for 2005, assuming an increase in comparable stores sales of 1% to 2%, is a diluted earnings per share range of $2.38 to $2.42, representing an earnings growth rate of 11% to 14% excluding the estimated benefit of the extra week in 2004." Richard M. Frank, Chairman and Chief Executive Officer, stated that, "For the first nine months of 2004, comparable store sales increased 2.0% and helped fuel EPS growth of 24%. Because of our financial strength, the strong market position of our concept and belief in our ability to execute a solid strategic plan, we remain confident in our ability to create long-term value for our shareholders." Certain statements in this press release, other than historical information, may be considered forward-looking statements, within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, and is subject to various risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may differ from those anticipated, estimated or expected. Among the key factors that may have a direct bearing on CEC's operating results, performance or financial condition are its ability to implement its growth strategies, national, regional and local economic conditions affecting the restaurant/entertainment industry, competition within each of the restaurant and entertainment industries, store sales cannibalization, success of its franchise operations, negative publicity, fluctuations in quarterly results of operations, including seasonality, government regulations, weather, school holidays, commodity, insurance and labor costs. CEC Entertainment, Inc. operates a system of 487 Chuck E. Cheese's restaurants in 48 states, of which 440 are owned and operated by the Company. # # #
CEC ENTERTAINMENT, INC. CONDENSED CONSOLIDATED RESULTS OF OPERATIONS (Thousands, except per share data) Quarter Ended Year to Date Ended 09/26/04 09/28/03 09/26/04 09/28/03 -------- -------- -------- -------- Revenues: Food and beverage $120,416 $112,286 $365,494 $334,363 Games and merchandise 62,394 56,886 187,961 170,150 Franchise fees and royalties 807 962 2,520 2,620 Interest income 5 4 19 16 -------- -------- -------- -------- 183,622 170,138 555,994 507,149 Costs and expenses: Cost of sales: Food, beverage and related supplies 22,152 21,222 67,937 61,437 Games and merchandise 7,922 7,483 23,782 21,972 Labor 49,928 46,322 150,855 138,010 Selling, general and administrative expenses 21,828 25,158 66,575 65,793 Depreciation and amortization 13,070 11,381 38,029 33,338 Interest expense 401 503 975 967 Other operating expenses 32,618 30,553 94,870 89,214 -------- -------- -------- -------- 147,919 142,622 443,023 410,731 Income before income taxes 35,703 27,516 112,971 96,418 Income taxes 13,675 10,676 43,268 37,410 -------- -------- -------- -------- Net income $ 22,028 $ 16,840 $ 69,703 $ 59,008 ======== ======== ======== ======== Earnings per share: Basic $ .60 $ .43 $ 1.86 $ 1.47 Diluted $ .58 $ .42 $ 1.80 $ 1.45 Weighted average shares outstanding: Basic 36,834 38,831 37,551 40,061 Diluted 37,970 39,749 38,726 40,584 Earnings per share and weighted average shares outstanding have been adjusted retroactively for the effect of a 3 for 2 stock split effective March 15, 2004.
CEC ENTERTAINMENT, INC. SUPPLEMENTAL FINANCIAL INFORMATION (Thousands, except store counts) Quarter Ended Year to Date Ended 09/26/04 09/28/03 09/26/04 09/28/03 -------- -------- -------- -------- Number of Company-owned stores: Beginning of period 430 391 418 384 New 8 10 20 18 Company purchased franchise stores 2 2 Closed (1) ----- ----- ----- ----- End of period 440 401 440 401 Number of franchise stores: Beginning of period 49 51 48 50 New 1 Company purchased franchise stores (2) (2) 2 Closed (4) ----- ----- ----- ----- End of period 47 51 47 48
CEC ENTERTAINMENT, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Thousands, except share amounts) September 26, December 28, 2004 2003 ------------ ------------ ASSETS Current assets: Cash and cash equivalents.......................................... $ 13,311 $ 8,067 Accounts receivable................................................ 10,398 13,103 Inventories........................................................ 11,611 12,491 Prepaid expenses................................................... 7,763 7,608 Deferred tax asset................................................. 1,487 1,487 --------- --------- Total current assets............................................ 44,570 42,756 --------- --------- Property and equipment, net........................................... 549,613 536,124 --------- --------- Other assets.......................................................... 1,319 1,471 --------- --------- $ 595,502 $ 580,351 ========= ========= LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long-term debt.................................. $ 190 $ 168 Accounts payable and accrued liabilities........................... 64,037 58,736 --------- --------- Total current liabilities....................................... 64,227 58,904 --------- --------- Long-term debt, less current portion.................................. 82,035 64,581 --------- --------- Deferred rent......................................................... 6,125 5,153 --------- --------- Deferred tax liability................................................ 61,447 50,714 --------- --------- Accrued insurance..................................................... 8,518 8,500 --------- --------- Shareholders' equity: Common stock, $.10 par value; authorized 100,000,000 shares; 55,168,260 and 54,481,913 shares issued, respectively .......... 5,517 5,448 Capital in excess of par value..................................... 233,582 219,071 Retained earnings ................................................. 448,614 378,911 Accumulated other comprehensive income ........................... 982 695 Less treasury shares of 18,959,168 and 16,042,418, respectively, at cost........................... (315,545) (211,626) --------- --------- 373,150 392,499 --------- --------- $ 595,502 $ 580,351 ========= ========= Share amounts have been adjusted retroactively for the effect of a 3 for 2 stock split effective March 15, 2004.
-----END PRIVACY-ENHANCED MESSAGE-----