EXHIBIT 99.1
[BACK YARD BURGERS LOGO]
Contact: Michael G. Webb
Chief Financial Officer
(901) 367-0888 Ex: 1226
BACK YARD BURGERS ANNOUNCES FOURTH QUARTER
AND YEAR END 2005 RESULTS
MEMPHIS, TENNESSEE (FEBRUARY 24, 2006) - Back Yard Burgers, Inc. (Nasdaq
SmallCap:BYBI) today announced results for the fourth quarter and fiscal year
ended December 31, 2005.
- - Total revenues for the 13-week period ended December 31, 2005, were
$10,458,000 compared with total revenues of $9,649,000 for the 13-week
period ended January 1, 2005. Restaurant sales at Company-operated
restaurants increased $502,000 to $8,749,000 for the 13-week period ended
December 31, 2005, primarily due to the net increase of two
Company-operated restaurants since January 1, 2005. The remainder of the
increase is primarily due to higher royalty and ad fee revenues over the
year-earlier period resulting from a net increase of 13 franchised
restaurants since January 1, 2005.
- - Net loss for the 13-week period ended December 31, 2005, was $639,000, or
$0.13 per diluted share, compared with net income of $261,000, or $0.05
per diluted share, in the year-earlier period. During the 13-week period
ended December 31, 2005, the Company recorded a non-cash impairment charge
of $600,000 (net of a tax benefit of $386,000) under FAS No. 144 relating
to three Company-operated stores.
- - For the fourth quarter of 2005, same-store sales for Company-operated
restaurants increased 0.2% from the comparable period in 2004, and
same-store sales for franchised restaurants decreased 1.2% for the same
period. Year-to-date same-store sales for 2005 decreased 1.8% for
Company-operated restaurants and decreased 2.2% for franchised restaurants
versus the comparable period in 2004.
- - Total revenues for the 52-week period ended December 31, 2005, were
$41,001,000 compared with $40,183,000 in the prior-year period. Net loss
for the 52-week period ended December 31, 2005, was $44,000, or $0.01 per
diluted share, compared with net income of $1,264,000, or $0.25 per
diluted share, in the prior-year period. Net income for the 52-week period
ended December 31, 2005, included a non-cash charge of approximately
$358,000 (net of a tax benefit of $153,000) relating to the extension of
the exercise date of certain stock options upon the resignation of an
officer/director on January 7, 2005, as well as the impairment charge
recorded in the fourth quarter of 2005 as described above.
- - Unit activity for the quarter for Company-operated stores included the
opening of one store, the closing of two stores and the acquisition of
four franchised locations in Florida. Unit activity for the quarter for
franchised stores included the opening of six stores and the closing of
five stores. As of December 31, 2005, the Company's restaurant system
comprised 171 units, including 44 Company- operated stores and 127
franchised stores. Expansion plans for 2006 include the opening of two
Company-operated stores and 25 franchised stores.
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BYBI Announces Fourth Quarter Results
Page 2
February 24, 2006
Back Yard Burgers operates and franchises quick-service restaurants in 20
states, primarily in markets throughout the Southeast region of the United
States. The restaurants specialize in charbroiled, freshly prepared,
great-tasting food. As its name implies, Back Yard Burgers strives to offer the
same high-quality ingredients and special care typified by outdoor grilling in
the backyard. Its menu features made-to-order gourmet Black Angus hamburgers and
chicken sandwiches -charbroiled over an open flame, fresh salads, chili and
other specialty items, including hand-dipped milkshakes, fresh-made lemonade and
fresh-baked cobblers.
This press release contains forward-looking statements within the meaning of the
federal securities laws, including statements regarding the number of
Company-operated and franchised restaurants the Company anticipates opening
during fiscal year 2006. forward-looking statements are based upon estimates,
projections, beliefs and assumptions of management at the time of such
statements and should not be viewed as guarantees of future performance. Such
forward-looking information involves important risks and uncertainties that
could significantly impact anticipated results in the future and, accordingly,
such results may differ materially from those expressed in any forward-looking
statements by or on behalf of the Company. The (actors that could cause our
actual results to differ materially, many of which are beyond our control,
include, but are not limited to, the following: delays in opening new stores or
outlets because of weather, local permitting, and the availability and cost of
land and construction: increases in competition and competitive discounting;
increases in minimum wage and other operating costs; shortages in raw food
products; volatility of commodity prices; consumer preferences, spending
patterns and demographic trends; the possibility of unforeseen events affecting
the industry generally, and other risks described from time to time in our
periodic reports filed with the Securities and Exchange Commission. Back Yard
Burgers, Inc. disclaims any obligation to update or revise any forward- looking
statement based on the occurrence of future events, the receipt of new
information, or otherwise.
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BYBI Announces Fourth Quarter Results
Page 3
February 24, 2006
BACK YARD BURGERS, INC
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
THIRTEEN WEEKS ENDED FIFTY-TWO WEEKS ENDED
------------------------------ ------------------------------
12/31/05 01/01/05 12/31/05 01/01/05
------------- ------------- ------------- -------------
Revenues:
Restaurant sales $ 8,749 $ 8,247 $ 34,479 $ 34,912
Franchise and area development fees 109 185 629 620
Royalty fees 1,115 826 4,143 3,108
Advertising fees 279 248 1,061 866
Other 206 143 689 677
------------- ------------- ------------- -------------
Total revenues 10,458 9,649 41.001 40,183
------------- ------------- ------------- -------------
Expenses:
Cost of restaurant sales 2,786 2,573 11,125 11,066
Restaurant operating expenses 4,539 3,970 16,898 16,726
General and administrative 1,654 1,394 6,818 5,280
Advertising 682 726 2,547 2,652
Depreciation and amortization 605 515 2,206 2,096
Impairment of Long-Lived Assets 986 - 986 -
------------- ------------- ------------- -------------
Total expenses 11,252 9,178 40,580 37,820
------------- ------------- ------------- -------------
Operating income (794) 471 421 2,363
Interest income 7 1 27 5
Interest expense (140) (113) (452) (479)
Other, net (43) (31) (113) (100)
------------- ------------- ------------- -------------
Income before income taxes (970) 328 (117) 1,789
Income tax provision (331) 67 (73) 525
------------- ------------- ------------- -------------
Net income $ (639) $ 261 $ (44) $ 1,264
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Income per share;
Basic $ (0.13) $ 0.05 $ (0.01) $ 0.26
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Diluted $ (0.13) $ 0.05 $ (0.01) $ 0.25
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Weighted average number of common shares and
common equivalent shares outstanding:
Basic 4,900 4,781 4,833 4,774
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Diluted 4,900 5,058 4,833 5,096
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