-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, R7pZdLpV35rHwwshuyEuxKSoTHLvpDx2teu7CHDJvIQmRMHwijlKye32dwaGFXms 9H1wjSGLOc464/crC3RNcQ== 0000813920-03-000043.txt : 20030825 0000813920-03-000043.hdr.sgml : 20030825 20030825162329 ACCESSION NUMBER: 0000813920-03-000043 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030629 ITEM INFORMATION: FILED AS OF DATE: 20030825 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CEC ENTERTAINMENT INC CENTRAL INDEX KEY: 0000813920 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-EATING PLACES [5812] IRS NUMBER: 480905805 STATE OF INCORPORATION: KS FISCAL YEAR END: 1230 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13687 FILM NUMBER: 03864576 BUSINESS ADDRESS: STREET 1: PO BOX 152077 CITY: IRVING STATE: TX ZIP: 75015 BUSINESS PHONE: 9722585403 MAIL ADDRESS: STREET 1: PO BOX 152077 CITY: IRVING STATE: TX ZIP: 75015 FORMER COMPANY: FORMER CONFORMED NAME: SHOWBIZ PIZZA TIME INC DATE OF NAME CHANGE: 19920703 8-K 1 k81st2003.txt PRESS RELEASE UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 8-K Current Report Pursuant to Section 13 or 15(d) of Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): April 15, 2003 Commission File Number 0-15782 CEC ENTERTAINMENT, INC. (Exact name of registrant as specified in its charter) Kansas 48-0905805 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 4441 West Airport Freeway Irving, Texas 75062 (Address of principal executive offices, including zip code) (972) 258-8507 (Registrant's telephone number, including area code) Item 7: Financial Statements and Exhibits. (c) Exhibits 99.1 Press Release of CEC Entertainment, Inc. dated April 15, 2003. Item 12: Results of Operations and Financial Condition The information furnished in this Current Report on Form 8-K and the Exhibit attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of such section. On April 15, 2003, CEC Entertainment, Inc. issued a press release announcing financial results for the fiscal first quarter ended March 30, 2003. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. CEC ENTERTAINMENT, INC. Dated: August 25, 2003 By: /s/ Richard M. Frank ----------------------- Richard M. Frank Chairman of the Board and Chief Executive Officer EXHIBIT INDEX Exhibit Number Description - ------- ----------- 99.1 Press Release of CEC Entertainment, Inc. dated April 15, 2003. EX-99 3 ex9911st2003pr.txt FOR RELEASE CONTACT: Rodney Carter April 15, 2003 Executive Vice President 3:05 p.m. Central Time Chief Financial Officer (972) 258-4525 CEC ENTERTAINMENT, INC. REPORTS FIRST QUARTER RESULTS IRVING, TEXAS - CEC Entertainment, Inc. (NYSE:"CEC") today announced earnings for the first quarter ended March 30, 2003. Revenues for the first quarter of 2003 increased to $184.1 million from $172.8 million in the first quarter of 2002. Net income in the first quarter of 2003 increased to $27.4 million from $26.8 million in the same period of 2002. Earnings per share on a diluted basis in the first quarter of 2003 were $1.00 per share compared to $0.94 per share in the first quarter of 2002. Rodney Carter, Chief Financial Officer said, "Revenue growth from new store development led to increased earnings and strong operating cash flow. Revenue increased 6.6% in the first quarter due to new store development. Comparable store sales decreased 2.9% primarily due to a difficult economic environment and severe weather during the first quarter of 2003. Strong cash flow of $60.5 million during the quarter enabled us to continue executing our capital plan, reduce outstanding debt by $31.0 million and repurchase $5.9 million of treasury shares. We believe the strength of our operations and the strong financial position of our Company provide us the strategic advantage and financial flexibility to execute our plan to drive long-term shareholder value." Mr. Carter further added, "We are on track to achieve the diluted E.P.S. performance anticipated in current analyst earnings estimates of $2.60, which is consistent with prior guidance from $2.58 to $2.66 per diluted share. This reflects the weak economic environment and current cost trends. Diluted earnings per share during the second quarter of 2003 are expected to range from $0.53 to $0.55 per diluted share. Sales comparisons in the second quarter of 2003 will be negatively impacted by the timing of the Easter holiday and the strong comparable store sales gains of almost 4% last year." Richard M. Frank, Chairman and Chief Executive Officer stated that, "The Company generated over $60 million in operating cash flow, funded approximately $19 million back into the business, and increased diluted E.P.S. by 6.4%, despite the difficult economic and consumer environments. New store development, store enhancements and the national rollout of our "More Fun" sales initiative are expected increase long-term earnings. We believe the Chuck E. Cheese brand is well positioned and our strategies will enable us to meet the challenge of the current economic environment and drive long-term shareholder value." 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 are 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'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, store sales cannibalization, success of its franchise operations, negative publicity, fluctuations in quarterly results of operations, including seasonality, government regulations, weather, school holidays, commodity, insurance and labor costs. CEC Entertainment, Inc. operates a system of 438 Chuck E. Cheese's restaurants in 47 states, of which 388 are owned and operated by the Company. CEC ENTERTAINMENT, INC. RESULTS OF OPERATIONS (Thousands, except per share date) Quarter Ended 3/30/03 3/31/02 ----------- ----------- Revenues: Food and beverage $ 120,844 $ 114,841 Games and merchandise 62,408 56,950 Franchise fees and royalties 865 926 Interest income 9 76 --------- --------- 184,126 172,793 Costs and expenses: Cost of sales 77,428 73,691 Selling, general and administrative expenses 21,191 19,836 Depreciation and amortization 10,905 9,153 Interest expense 283 293 Other operating expenses 29,537 25,966 --------- --------- 139,344 128,939 --------- --------- Income before income taxes 44,782 43,854 Income taxes 17,375 17,058 --------- --------- Net income $ 27,407 $ 26,796 ========= ========= Earnings per share: Basic $ 1.00 $ .96 Diluted $ 1.00 $ .94 Weighted average shares outstanding: Basic 27,235 27,862 Diluted 27,438 28,555
CEC ENTERTAINMENT, INC. CONSOLIDATED BALANCE SHEETS (Thousands, except share amounts) March 30, December 29, 2003 2002 ----------- ------------ (unaudited) ASSETS Current assets: Cash and cash equivalents...................................... $ 15,823 $ 12,214 Accounts receivable............................................ 7,666 11,270 Inventories.................................................... 9,975 10,716 Prepaid expenses............................................... 8,443 5,500 Deferred tax asset............................................. 1,319 1,319 --------- --------- Total current assets......................................... 43,226 41,019 --------- --------- Property and equipment, net....................................... 501,133 493,533 --------- --------- Notes receivable from related parties ............................ 3,825 --------- --------- Other assets...................................................... 2,273 1,326 --------- --------- $ 546,632 $ 539,703 ========= ========= LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long-term debt.............................. $ 149 $ 143 Accounts payable and accrued liabilities....................... 53,938 43,002 --------- --------- Total current liabilities................................. 54,087 43,145 --------- --------- Long-term debt, less current portion.............................. 31,310 62,349 --------- --------- Deferred rent..................................................... 4,259 4,086 --------- --------- Deferred tax liability............................................ 42,638 38,156 --------- --------- Other liabilities................................................. 4,750 4,750 --------- --------- Commitments and contingencies Redeemable preferred stock, $60 par value, redeemable for $2,797 in 2005.................................. 2,573 2,549 --------- --------- Shareholders' equity: Common stock, $.10 par value; authorized 100,000,000 shares; 35,694,503 and 35,669,773 shares issued, respectively ........ 3,569 3,567 Capital in excess of par value................................. 202,598 201,936 Retained earnings ............................................. 335,599 308,277 Accumulated other comprehensive loss .......................... 192 (91) Less treasury shares of 8,635,269 and 8,409,169, respectively, at cost........................................ (134,943) (129,021) ---------- --------- 407,015 384,668 --------- --------- $ 546,632 $ 539,703 ========= =========
CEC ENTERTAINMENT, INC. SUPPLEMENTAL FINANCIAL INFORMATION (Thousands) Quarter Ended 03/30/03 03/31/02 -------- -------- Cost of sales: Food, beverage and related supplies $ 21,970 $ 21,679 Games and merchandise 7,524 7,097 Labor 47,934 44,915 -------- -------- $ 77,428 $ 73,691 ======== ======== Number of Company-owned stores: Beginning of period 384 350 New 4 5 Acquired from franchisees Closed -------- -------- End of period 388 355 ======== ======== Number of Franchised stores: Beginning of period 50 52 New Acquired from franchisees Closed -------- -------- End of period 50 52 ======== ======== -----END PRIVACY-ENHANCED MESSAGE-----