Star Buffet, Inc. Announces Fourth Quarter and Fiscal 2001 Year-End Results

Apr 30, 2001, 01:00 ET from Star Buffet, Inc.

    SALT LAKE CITY, April 30 /PRNewswire/ -- Star Buffet, Inc. (Nasdaq: STRZ)
 today reported financial results for the 12-week fourth quarter and 52-week
 fiscal 2001 ended January 29, 2001.  The prior year fourth quarter and fiscal
 year included one extra week of operating results.  Results are as follows:
     Revenues for the 12-week fourth quarter of fiscal 2001 were $20.1 million,
 a $3.3 million or 14.0 percent decrease compared to the 13-week period of the
 prior fiscal year.  The decrease in revenues was primarily attributable to an
 additional week of sales in the prior year and a decrease in unit level sales.
     In the fourth quarter of fiscal year 2001 the company experienced a net
 loss of $157 thousand compared to a net loss of $190 thousand for the same
 period last year.  The loss per share was ($0.05) on a diluted basis on
 2,950,000 shares outstanding for the fourth quarter of fiscal 2001 compared to
 a loss per share of ($0.06) on a diluted basis on 2,950,000 shares outstanding
 for the same quarter last year.
     Revenues for the 52-weeks fiscal 2001 ended January 29, 2001 decreased
 $5.1 million or 5.1 percent from $99.1 million to $94.0 million compared to
 the 53-week period of the prior fiscal year.  The decrease in revenues
 resulted primarily from a decrease in the number of restaurants open and
 operating in the fiscal year 2001 as compared with fiscal 2000, and an
 additional week of operating results in fiscal 2000.
     For fiscal 2001, net income was $1.4 million, a $23,000 or 1.6 percent
 decrease compared to the prior fiscal year.  Earnings per share were $0.48 on
 a diluted basis on 2,950,000 shares outstanding for fiscal 2001 compared to
 earnings per share of $0.48 on a diluted basis on 2,950,000 shares outstanding
 for the 53 weeks last year.
     Statements that are not historical facts contained in this release are
 forward-looking statements that involve risks and uncertainties, and actual
 results could vary materially from the descriptions contained herein due to
 many factors, including, but not limited to, product demand and market
 acceptance risks, the effect of economic conditions, the impact of competitive
 products and pricing, the results of financing efforts, implementation of the
 company's acquisition and strategic alliance strategy, the effect of the
 Company's accounting policies and other risks detailed in the Company's 10-K,
 for the fiscal year ended January 31, 2000, and other filings with the
 Securities and Exchange Commission.
     Star Buffet, through its subsidiaries, currently operates 16 franchised
 HomeTown Buffet restaurants, 15 BuddyFreddys restaurants, 10 franchised JB's
 restaurants, six JJ North's Grand Buffet restaurants, two Casa Bonita Mexican
 theme restaurants, two Holiday House restaurants and two North's Star Buffet
 restaurants.
 
 
                               STAR BUFFET, INC.
                 CONSOLIDATED COMBINED STATEMENTS OF OPERATIONS
                      (In thousands except per share data)
                                  (unaudited)
 
                                    Twelve Weeks Ended    Thirteen Weeks Ended
                                     January 29, 2001        January 31, 2000
 
     Total Revenues                $20,084       100.0%    $23,349      100.0%
 
     Costs and expenses:
      Food costs                     6,767        33.7       7,658       32.8
      Labor costs                    7,373        36.7       8,212       35.2
      Occupancy & other expenses     3,983        19.8       5,125       21.9
      General & administrative
       expenses                        965         4.8       1,445        6.2
      Depreciation and amortization    852         4.3         936        4.0
 
       Total costs and expenses     19,940        99.3      23,376      100.1
 
     Income from operations            144         0.7         (27)      (0.1)
 
     Interest and other income
      (expense):
       Interest expense               (388)       (1.9)       (425)      (1.8)
       Interest income                  14         0.1          12        0.0
       Other income                      0         0.0           0        0.0
 
     Total interest and other
      income (expense)                (374)       (1.8)       (413)      (1.8)
 
     Income before income taxes       (230)       (1.1)       (440)      (1.9)
 
     Income taxes                      (73)       (0.3)       (250)      (1.1)
 
     Net income                      ($157)       (0.8)%     ($190)      (0.8)%
 
     Net income per common
      share - basic                 ($0.05)                 ($0.06)
 
     Weighted average shares
      outstanding - basic            2,950                   2,950
 
     Net income per common
      share - diluted               ($0.05)                 ($0.06)
 
     Weighted average shares
      outstanding - diluted          2,950                   2,950
 
 
                               STAR BUFFET, INC.
                 CONSOLIDATED COMBINED STATEMENTS OF OPERATIONS
                      (In thousands except per share data)
                                  (unaudited)
 
 
                                Fifty-two Weeks Ended  Fifty-three Weeks Ended
                                  January 29, 2001           January 31, 2000
 
     Total Revenues                  $94,039    100.0%     $99,066    100.0%
 
     Costs and expenses:
      Food costs                      30,899      32.9      32,644      32.9
      Labor costs                     32,301      34.3      33,650      34.0
      Occupancy & other expenses      18,880      20.1      20,434      20.6
      General & administrative
       expenses                        4,108       4.4       5,148       5.2
      Depreciation and amortization    3,650       3.9       3,733       3.8
      Impairment of long-lived assets    590       0.6          --       0.0
 
       Total costs and expenses       90,428      96.2      95,609      96.5
 
     Income from operations            3,611       3.8       3,457       3.5
 
     Interest and other income
      (expense):
       Interest expense               (1,556)     (1.6)     (1,419)     (1.4)
       Interest income                    44       0.0          43       0.0
       Other income                        8       0.0         170       0.2
 
     Total interest and other
      income (expense)                (1,504)     (1.6)     (1,206)     (1.2)
 
     Income before income taxes        2,107       2.2       2,251       2.3
 
     Income taxes                        705       0.7         826       0.8
 
     Net income                       $1,402       1.5%     $1,425       1.5%
 
     Net income per common
      share - basic                    $0.48                 $0.48
 
     Weighted average shares
      outstanding - basic              2,950                 2,950
 
     Net income per common
      share - diluted                  $0.48                 $0.48
 
     Weighted average shares
      outstanding - diluted            2,950                 2,950
 
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SOURCE Star Buffet, Inc.
    SALT LAKE CITY, April 30 /PRNewswire/ -- Star Buffet, Inc. (Nasdaq: STRZ)
 today reported financial results for the 12-week fourth quarter and 52-week
 fiscal 2001 ended January 29, 2001.  The prior year fourth quarter and fiscal
 year included one extra week of operating results.  Results are as follows:
     Revenues for the 12-week fourth quarter of fiscal 2001 were $20.1 million,
 a $3.3 million or 14.0 percent decrease compared to the 13-week period of the
 prior fiscal year.  The decrease in revenues was primarily attributable to an
 additional week of sales in the prior year and a decrease in unit level sales.
     In the fourth quarter of fiscal year 2001 the company experienced a net
 loss of $157 thousand compared to a net loss of $190 thousand for the same
 period last year.  The loss per share was ($0.05) on a diluted basis on
 2,950,000 shares outstanding for the fourth quarter of fiscal 2001 compared to
 a loss per share of ($0.06) on a diluted basis on 2,950,000 shares outstanding
 for the same quarter last year.
     Revenues for the 52-weeks fiscal 2001 ended January 29, 2001 decreased
 $5.1 million or 5.1 percent from $99.1 million to $94.0 million compared to
 the 53-week period of the prior fiscal year.  The decrease in revenues
 resulted primarily from a decrease in the number of restaurants open and
 operating in the fiscal year 2001 as compared with fiscal 2000, and an
 additional week of operating results in fiscal 2000.
     For fiscal 2001, net income was $1.4 million, a $23,000 or 1.6 percent
 decrease compared to the prior fiscal year.  Earnings per share were $0.48 on
 a diluted basis on 2,950,000 shares outstanding for fiscal 2001 compared to
 earnings per share of $0.48 on a diluted basis on 2,950,000 shares outstanding
 for the 53 weeks last year.
     Statements that are not historical facts contained in this release are
 forward-looking statements that involve risks and uncertainties, and actual
 results could vary materially from the descriptions contained herein due to
 many factors, including, but not limited to, product demand and market
 acceptance risks, the effect of economic conditions, the impact of competitive
 products and pricing, the results of financing efforts, implementation of the
 company's acquisition and strategic alliance strategy, the effect of the
 Company's accounting policies and other risks detailed in the Company's 10-K,
 for the fiscal year ended January 31, 2000, and other filings with the
 Securities and Exchange Commission.
     Star Buffet, through its subsidiaries, currently operates 16 franchised
 HomeTown Buffet restaurants, 15 BuddyFreddys restaurants, 10 franchised JB's
 restaurants, six JJ North's Grand Buffet restaurants, two Casa Bonita Mexican
 theme restaurants, two Holiday House restaurants and two North's Star Buffet
 restaurants.
 
 
                               STAR BUFFET, INC.
                 CONSOLIDATED COMBINED STATEMENTS OF OPERATIONS
                      (In thousands except per share data)
                                  (unaudited)
 
                                    Twelve Weeks Ended    Thirteen Weeks Ended
                                     January 29, 2001        January 31, 2000
 
     Total Revenues                $20,084       100.0%    $23,349      100.0%
 
     Costs and expenses:
      Food costs                     6,767        33.7       7,658       32.8
      Labor costs                    7,373        36.7       8,212       35.2
      Occupancy & other expenses     3,983        19.8       5,125       21.9
      General & administrative
       expenses                        965         4.8       1,445        6.2
      Depreciation and amortization    852         4.3         936        4.0
 
       Total costs and expenses     19,940        99.3      23,376      100.1
 
     Income from operations            144         0.7         (27)      (0.1)
 
     Interest and other income
      (expense):
       Interest expense               (388)       (1.9)       (425)      (1.8)
       Interest income                  14         0.1          12        0.0
       Other income                      0         0.0           0        0.0
 
     Total interest and other
      income (expense)                (374)       (1.8)       (413)      (1.8)
 
     Income before income taxes       (230)       (1.1)       (440)      (1.9)
 
     Income taxes                      (73)       (0.3)       (250)      (1.1)
 
     Net income                      ($157)       (0.8)%     ($190)      (0.8)%
 
     Net income per common
      share - basic                 ($0.05)                 ($0.06)
 
     Weighted average shares
      outstanding - basic            2,950                   2,950
 
     Net income per common
      share - diluted               ($0.05)                 ($0.06)
 
     Weighted average shares
      outstanding - diluted          2,950                   2,950
 
 
                               STAR BUFFET, INC.
                 CONSOLIDATED COMBINED STATEMENTS OF OPERATIONS
                      (In thousands except per share data)
                                  (unaudited)
 
 
                                Fifty-two Weeks Ended  Fifty-three Weeks Ended
                                  January 29, 2001           January 31, 2000
 
     Total Revenues                  $94,039    100.0%     $99,066    100.0%
 
     Costs and expenses:
      Food costs                      30,899      32.9      32,644      32.9
      Labor costs                     32,301      34.3      33,650      34.0
      Occupancy & other expenses      18,880      20.1      20,434      20.6
      General & administrative
       expenses                        4,108       4.4       5,148       5.2
      Depreciation and amortization    3,650       3.9       3,733       3.8
      Impairment of long-lived assets    590       0.6          --       0.0
 
       Total costs and expenses       90,428      96.2      95,609      96.5
 
     Income from operations            3,611       3.8       3,457       3.5
 
     Interest and other income
      (expense):
       Interest expense               (1,556)     (1.6)     (1,419)     (1.4)
       Interest income                    44       0.0          43       0.0
       Other income                        8       0.0         170       0.2
 
     Total interest and other
      income (expense)                (1,504)     (1.6)     (1,206)     (1.2)
 
     Income before income taxes        2,107       2.2       2,251       2.3
 
     Income taxes                        705       0.7         826       0.8
 
     Net income                       $1,402       1.5%     $1,425       1.5%
 
     Net income per common
      share - basic                    $0.48                 $0.48
 
     Weighted average shares
      outstanding - basic              2,950                 2,950
 
     Net income per common
      share - diluted                  $0.48                 $0.48
 
     Weighted average shares
      outstanding - diluted            2,950                 2,950
 
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 SOURCE  Star Buffet, Inc.