CEC Entertainment, Inc. Reports Record First Quarter Earnings

Apr 17, 2001, 01:00 ET from CEC Entertainment, Inc.

    IRVING, Texas, April 17 /PRNewswire/ -- CEC Entertainment, Inc.
 (NYSE:   CEC) today announced the Company's 18th consecutive quarter of record
 earnings for the first quarter ended April 1, 2001.
     Revenues for the first quarter of 2001 increased to $163.2 million from
 $141.3 million in the first quarter of 2000.  Net income in the first quarter
 of 2001 increased to $25.2 million from $18.7 million in the same period of
 2000.  Earnings per share on a diluted basis in the first quarter of 2001
 increased to $.88 per share from $.68 in the first quarter of 2000.
     Richard M. Frank, Chairman and Chief Executive Officer stated that, "We
 are pleased with the excellent results in the first quarter of 2001 with
 revenues increasing 15.5% and net income increasing 34.4% over a record
 performance in the first quarter of 2000.  This strong performance was driven
 by comparable store sales growth of 5.9% in the first quarter, the continued
 strong sales performance of new stores and improved operating margins,
 including a $.01 earnings per share benefit from a change in selected
 depreciable asset lives."
     Mr. Frank further added, "We believe our concept is very healthy and our
 momentum in the marketplace should be further enhanced by the continued
 evolution of our product.  The Company completed 27 Phase 3 remodels during
 the fourth quarter of 2000 and is on target to complete approximately
 100 additional Phase 3 remodels in 2001.  The early sales and profit results
 of completed Phase 3 remodel stores are very encouraging.  The Company plans
 on growing the number of Company-operated stores by approximately 10% in 2001.
 We believe the combination of a healthy core group of restaurants and quality
 new store development positions the Company well for continued success."
     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 Entertainment'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, success of its franchise operations, negative
 publicity, fluctuations in quarterly results of operations, including
 seasonality and government regulations.
     CEC Entertainment, Inc. operates a system of 384 Chuck E. Cheese's
 restaurants in 45 states, of which 330 are owned and operated by the Company.
 
                              CEC ENTERTAINMENT, INC.
                               RESULTS OF OPERATIONS
 
                         (Thousands, except per share date)
 
                                                     Quarter Ended
                                                4/1/01          4/2/00
 
     Revenues:
       Food and beverage                      $110,822         $93,779
       Games and merchandise                    51,377          46,567
       Franchise fees and royalties                926             942
       Interest income                              83              59
                                               163,208         141,347
 
     Costs and expenses:
       Cost of sales                            68,467          61,550
       Selling, general and
          administrative expenses               21,298          19,996
       Depreciation and amortization             8,286           8,096
       Interest expense                            710             761
       Other operating expenses                 23,161          20,318
                                               121,922         110,721
 
     Income before income taxes                 41,286          30,626
 
     Income taxes:
       Current expense                          14,409          10,750
       Deferred expense                          1,693           1,132
                                                16,102          11,882
 
     Net income                                $25,184         $18,744
 
     Earnings per share:
       Basic                                      $.90            $.69
       Diluted                                    $.88            $.68
 
     Weighted average
        shares outstanding:
       Basic                                    27,745          26,868
       Diluted                                  28,521          27,639
 
 

SOURCE CEC Entertainment, Inc.
    IRVING, Texas, April 17 /PRNewswire/ -- CEC Entertainment, Inc.
 (NYSE:   CEC) today announced the Company's 18th consecutive quarter of record
 earnings for the first quarter ended April 1, 2001.
     Revenues for the first quarter of 2001 increased to $163.2 million from
 $141.3 million in the first quarter of 2000.  Net income in the first quarter
 of 2001 increased to $25.2 million from $18.7 million in the same period of
 2000.  Earnings per share on a diluted basis in the first quarter of 2001
 increased to $.88 per share from $.68 in the first quarter of 2000.
     Richard M. Frank, Chairman and Chief Executive Officer stated that, "We
 are pleased with the excellent results in the first quarter of 2001 with
 revenues increasing 15.5% and net income increasing 34.4% over a record
 performance in the first quarter of 2000.  This strong performance was driven
 by comparable store sales growth of 5.9% in the first quarter, the continued
 strong sales performance of new stores and improved operating margins,
 including a $.01 earnings per share benefit from a change in selected
 depreciable asset lives."
     Mr. Frank further added, "We believe our concept is very healthy and our
 momentum in the marketplace should be further enhanced by the continued
 evolution of our product.  The Company completed 27 Phase 3 remodels during
 the fourth quarter of 2000 and is on target to complete approximately
 100 additional Phase 3 remodels in 2001.  The early sales and profit results
 of completed Phase 3 remodel stores are very encouraging.  The Company plans
 on growing the number of Company-operated stores by approximately 10% in 2001.
 We believe the combination of a healthy core group of restaurants and quality
 new store development positions the Company well for continued success."
     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 Entertainment'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, success of its franchise operations, negative
 publicity, fluctuations in quarterly results of operations, including
 seasonality and government regulations.
     CEC Entertainment, Inc. operates a system of 384 Chuck E. Cheese's
 restaurants in 45 states, of which 330 are owned and operated by the Company.
 
                              CEC ENTERTAINMENT, INC.
                               RESULTS OF OPERATIONS
 
                         (Thousands, except per share date)
 
                                                     Quarter Ended
                                                4/1/01          4/2/00
 
     Revenues:
       Food and beverage                      $110,822         $93,779
       Games and merchandise                    51,377          46,567
       Franchise fees and royalties                926             942
       Interest income                              83              59
                                               163,208         141,347
 
     Costs and expenses:
       Cost of sales                            68,467          61,550
       Selling, general and
          administrative expenses               21,298          19,996
       Depreciation and amortization             8,286           8,096
       Interest expense                            710             761
       Other operating expenses                 23,161          20,318
                                               121,922         110,721
 
     Income before income taxes                 41,286          30,626
 
     Income taxes:
       Current expense                          14,409          10,750
       Deferred expense                          1,693           1,132
                                                16,102          11,882
 
     Net income                                $25,184         $18,744
 
     Earnings per share:
       Basic                                      $.90            $.69
       Diluted                                    $.88            $.68
 
     Weighted average
        shares outstanding:
       Basic                                    27,745          26,868
       Diluted                                  28,521          27,639
 
 SOURCE  CEC Entertainment, Inc.