020253 Back Yard Burgers Reports Record 4QFebruary 21, 2002Memphis, TN - Back Yard Burgers, Inc. announced results for the fourth quarter and fiscal year 2001. * Total revenues for the 13-week period ended December 29, 2001, were $7,739,000, a fourth-quarter record for the company and an increase of 8.3% over total revenues for the 13-week period ended December 30, 2000. The increase is primarily the result of improvements in same-store sales and net store unit growth of 11.8% over the prior year. * Net income for the 13-week period ended December 29, 2001, was $231,000, or $.05 per diluted share, an increase of $196,000, or $0.04 per diluted share, over net income for the 13-week period ended December 30, 2000. Pre-tax income for the 13-week period ended December 29, 2001, was reduced by $111,000 for a reserve on a note receivable from a former franchisee and $70,000 for a land lease reserve relating to a restaurant building the company assumed as collateral under the provisions of the note. Excluding the $181,000 in reserves described above, pre-tax income for the 13-week period ended December 29, 2001, would have been $458,000, an increase of $401,000 over the prior year. This increase was primarily due to an additional $189,000 in franchise fees and royalty fees over the prior year, as well as improvements in company-operated restaurant operating margins. Restaurant operating expenses, consisting of labor, supplies, utilities, maintenance, rent and certain other unit level operating expenses, decreased as a percentage of sales from 50.2% in the prior year to 47.4% in the current year. Labor cost management accounted for 1.8% of the 2.8% cost improvement over the prior year. * Same-store sales for company-operated restaurants increased 3.5% for the 13-week period ended December 29, 2001, and 3.3% for the year ended December 29, 2001. Same-store sales for franchised restaurants increased 3.5% for the 13-week period ended December 29, 2001, and 0.5% for the year ended December 29, 2001. * Unit activity for the quarter included four franchised store openings and one company-operated store opening. * The company also reported record fiscal year revenues for the year ended December 29, 2001. Year-to- date revenues for the company increased 6.4% to $31,138,000 from $29,260,000 in the prior year. Net income increased 120.4% to $1,027,000, or $0.22 per diluted share, from $466,000, or $0.10 per diluted share in the prior year. Prior year-to-date pre-tax income included $271,000 in gains on the sales of unutilized assets. As of December 29, 2001, the company's restaurant system comprised 104 units, including 37 company- operated stores and 67 franchised stores. Expansion plans for fiscal year 2002 include seven company- operated stores, eight or more franchised stores and six outlets co-branded with Taco Bell, Pizza Hut and/or KFC operations under our Multi-Brand Development Agreement with Tricon Global Restaurants, Inc.
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