BT Brands(US:BTBD)2025-11-17 22:02Financial Performance - Total sales for the 39 weeks ended September 28, 2025, were $10,864,445, a decrease from $11,649,610 for the same period in 2024, representing a decline of approximately 6.7%[15] - Net income for the 39 weeks ended September 28, 2025, was $640,157, compared to a net loss of $735,131 for the same period in 2024, indicating a significant turnaround[15] - The company reported total costs and expenses of $10,496,720 for the 39 weeks ended September 28, 2025, down from $12,543,993 for the same period in 2024, a decrease of approximately 16.3%[15] - For the 39-week period ended September 28, 2025, BT Brands reported a net income of $640,157, a significant improvement compared to a net loss of $735,131 for the same period in 2024[21] - Basic net income per common share for the 13 weeks ended September 28, 2025, was $0.10, compared to a loss of $(0.12) for the same period in 2024[57] - Net income for the 13 weeks ending September 28, 2025, was $914,975, a significant improvement from a net loss of $219,479 in the same period of 2024[107] - Operating income improved to $367,725 from a loss of $894,383 in 2024, reflecting cost-saving initiatives and a net gain from asset sales[135] Assets and Liabilities - The company reported total current assets of $6,633,241 as of September 28, 2025, an increase from $5,119,404 as of December 29, 2024, reflecting a growth of approximately 29.6%[14] - Total liabilities decreased to $4,214,101 as of September 28, 2025, down from $5,031,570 as of December 29, 2024, showing a reduction of about 16.2%[14] - Cash and cash equivalents decreased to $1,277,738 as of September 28, 2025, from $1,951,415 as of December 29, 2024, a decline of about 34.6%[14] - The company’s accumulated deficit improved to $(3,720,942) as of September 28, 2025, from $(4,361,099) as of December 29, 2024, indicating a reduction in the deficit of approximately 14.7%[14] - The total property and equipment net value decreased from $3,343,340 as of December 29, 2024, to $2,638,957 as of September 28, 2025[62] - The total carrying value of acquired intangible assets as of September 28, 2025, was $319,337, down from $367,799 in December 2024[59] Investments and Impairments - The company incurred a loss of $304,000 related to an equity investment in a related company during the reporting period[15] - The company recorded an impairment charge of $304,000 related to its investment in NGI Corporation, reflecting the impairment of its minority investment[31] - The equity investment in Bagger Dave's was $0 as of September 28, 2025, down from $304,439 as of December 29, 2024, due to cumulative net losses exceeding the recorded investment[39] - The investment in NGI was impaired with a recorded allowance of $304,000 due to recurring operating losses and lack of sufficient capital[88] Cash Flow and Operating Activities - The company reported a net cash provided by operating activities of $402,800 for the 39 weeks ended September 28, 2025, compared to a net cash used of $197,102 in the prior year[21] - Cash flows from operating activities generated $402,800, contrasting with a cash outflow of $197,102 in the previous period[21] - Operating cash flow for the 39 weeks ending September 28, 2025, was $402,800, driven by improved operating income and seasonal patterns[152] Stock and Shareholder Information - The weighted average shares used in computing net income per common share (basic) for the 39 weeks ended September 28, 2025, was 6,154,724, compared to 6,221,154 for the same period in 2024[15] - BT Brands has purchased approximately 339,511 Disney-character aluminum bottles, expecting to generate an estimated $509,266 from their sale[87] - The company has repurchased 306,394 shares under the 2024 Share Repurchase Program, which represents approximately 48.9% of the authorized 625,000 shares[83] - The company entered into an Equity Distribution Agreement to sell shares of common stock with a maximum aggregate sales proceeds of up to $3,005,000[85] Future Plans and Mergers - BT Brands plans to merge with Aero Velocity Inc., with the merger agreement including a spin-off of shares to BT Brands shareholders, retaining 11% ownership in the merged company[32][33] - The proposed merger will involve Aero shareholders receiving convertible preferred stock valued at $101,100,000, convertible into common stock at $1.48 per share[33] - The company plans to pursue a listing for BT Group, Inc., which will retain all restaurant assets and liabilities post-merger[32] Cost Management and Efficiency - Labor costs for the 39 weeks fell to 35.7% of sales from 39.8% in 2024, reflecting improved staffing efficiency[109] - Food and paper costs decreased to 30.5% of sales ($1,176,619) from 35.9% ($1,563,073) in the prior year, reflecting improved margins due to menu price increases and cost-cutting measures[114] - General and administrative costs decreased to $178,389 from $375,451, reducing as a percentage of sales to 4.6% from 8.6% in the prior year[119] - Management plans to focus on operational efficiencies and disciplined expense management to improve profitability in future quarters[140]