BT Brands(US:BTBD)2021-05-17 16:00Financial Performance - Net sales for the first quarter of fiscal 2021 increased by $637,442 or 48.9% to $1,940,872 from $1,303,430 in the first quarter of fiscal 2020[45] - For the 13-week period ending April 4, 2021, the Company reported revenues of $1,940,872, a 49% increase from $1,303,430 in the same period of the previous year[52] - Income from operations for the 13-week period was $223,495 in fiscal 2021 compared to a loss of $116,244 in the same period in 2020[50] - Restaurant-level EBITDA for the same period was $383,670, resulting in a margin of 19.8%, compared to a margin of 2.4% in the prior year[52] - The Company generated an after-tax profit of $791,992 for the 53 weeks ended January 3, 2021[54] Cost Management - Cost of sales for food and paper decreased to 37.7% of restaurant sales from 41.4% in the first quarter of fiscal 2020[46] - Labor costs as a percentage of sales declined to 29.1% from 37.1% in fiscal 2020's first quarter[47] - Occupancy and other operating expenses as a percentage of sales declined to 13.4% from 19.1% in the similar period in 2020[48] - A 10% increase in beef costs would result in approximately $175,000 of additional food costs annually for the Company[56] Business Strategy - The company expects to pursue acquisitions of multi-unit restaurant concepts and individual restaurant properties to grow its business[41] - The company plans to develop additional Burger Time locations through the acquisition and conversion of existing properties[41] - The company is focused on leveraging corporate services to quickly and cost-effectively scale its growth[42] Operational Challenges - The company anticipates challenges in attracting and hiring workers due to labor shortages in the restaurant industry[40] - The Company anticipates that working capital deficits may be incurred in the future due to its operational model, which typically operates with negative working capital[54] - Seasonal factors and adverse weather conditions may impact revenue, particularly in the first and fourth quarters[57] Financial Position - As of April 4, 2021, the Company had cash of $1,460,098 and working capital of $296,321, reflecting a decrease of $21,628 from January 3, 2021[54] - The Company has $3.2 million in contractual obligations primarily related to mortgages, with monthly payments of approximately $32,000[55] - The Company received pandemic-related loans totaling $487,900, including $460,400 under the PPP, which were forgiven in 2021[54] - The Company does not currently have any off-balance sheet arrangements as defined by SEC regulations[58]