-----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, NhF37gDKXs5dhL6qvYyIddMX261vVG3LkVDSEC8rC1yY9TGL1jYQ4uxwG8cP5Xgb H1xgRiwzpN7y3pDFGUTitQ== 0000813920-05-000079.txt : 20051025 0000813920-05-000079.hdr.sgml : 20051025 20051025161628 ACCESSION NUMBER: 0000813920-05-000079 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20051002 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20051025 DATE AS OF CHANGE: 20051025 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: 051154614 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 k83rd2005earnings.txt 2005 3RD QUARTER UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ----------------------------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report: (Date of earliest event reported) October 25, 2005 ---------------------------- CEC ENTERTAINMENT, INC. (Exact name of registrant as specified in charter) Kansas 0-15782 48-0905805 (State or other jurisdiction of (Commission File Number) (IRS Employer incorporation or organization) Identification No.) 4441 West Airport Freeway Irving, Texas 75062 (Address of principal executive offices and zip code) (972) 258-8507 (Registrant's telephone number, including area code) N/A (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions (see General Instruction A.2. below): |_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425). |_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12). |_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)). |_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)). Item 2.02: 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 the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of such section. On October 25, 2005, CEC Entertainment, Inc. issued a press release announcing financial results for the fiscal third quarter ended October 2, 2005. A copy of the press release is attached as Exhibit 99 to this Current Report on Form 8-K. Item 9.01: Financial Statements and Exhibits (c) Exhibits 99 Press Release of CEC Entertainment, Inc. dated October 25, 2005. 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 hereunto duly authorized. CEC ENTERTAINMENT, INC. Date: October 25, 2005 By: /s/ Christopher D. Morris ---------------------------------------------- Christopher D. Morris Senior Vice President, Chief Financial Officer EXHIBIT INDEX Exhibit Number Description - ------- ----------- 99 Press Release of CEC Entertainment, Inc. dated October 25, 2005. EX-99 2 ex993rd2005earn.txt PRESS RELEASE FOR RELEASE CONTACT: Chris Morris October 25, 2005 Senior Vice President 3:05 p.m. Central Time Chief Financial Officer (972) 258-4525 CEC ENTERTAINMENT, INC. REPORTS THIRD QUARTER RESULTS IRVING, TEXAS - CEC Entertainment, Inc. (NYSE:"CEC") today announced earnings for the third quarter ended October 2, 2005. Revenues for the third quarter of 2005 decreased to $179.6 million from $183.6 million in the third quarter of 2004. Net income was $16.3 million in the third quarter of 2005 and $21.1 million in the third quarter of 2004. Diluted earnings per share in the third quarter of 2005 were $0.45 per share compared to $0.56 per share in the third quarter of 2004. Revenues for the first nine months of 2005 increased to $562.1 million from $556.0 million in the first nine months of 2004. Net income was $63.0 million in the first nine months of 2005 and $67.0 million in the same period of 2004. Diluted earnings per share in the first nine months of 2005 were $1.72 per share compared to $1.73 per share in the first nine months of 2004. Chris Morris, Senior Vice President and Chief Financial Officer stated that, "Total revenues in the third quarter decreased $4.0 million over the prior year. Comparable store sales in the third quarter declined 5.1%. We believe the decline in comparable store sales was primarily due to unsuccessful promotions in the quarter, the effect of higher gasoline prices on the spending decisions of our customers and lost sales due to Hurricanes Katrina and Rita. During the first three quarters of 2005, the Company generated operating cash flow of $111 million, invested $58 million primarily in new and existing stores and repurchased $88 million of Company stock. Borrowings on our credit facility increased by $26 million." Mr. Morris further added, "Based on current estimates, we expect diluted earnings per share to range from $2.02 to $2.08 per share for the 2005 fiscal year and $0.30 to $0.36 in the fourth quarter of 2005. Our estimates include the assumption that comparable store sales are flat to negative 3% during the fourth quarter of 2005. Our preliminary estimate for diluted earnings per share for the first quarter of 2006 is a range from $0.93 to $0.96, excluding the effects of expensing stock options. We expect diluted earnings per share for fiscal year 2006 to increase 10% to 12% over fiscal year 2005." Richard M. Frank, Chairman and Chief Executive Officer stated that, "Although significantly challenged by the current external environment, we believe the continued execution of our long-term strategies of enhancing our value and experience for our guests, implementing effective advertising, continued new store development, building on operational execution and strategically repurchasing Company stock will 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, success of its franchise operations, negative publicity, fluctuations in quarterly results of operations, including seasonality, government regulations, weather, school holidays, commodity and labor costs. CEC Entertainment, Inc. operates a system of 507 Chuck E. Cheese's restaurants in 48 states, of which 462 are owned and operated by the Company. # # #
CEC ENTERTAINMENT, INC. CONDENSED CONSOLIDATED RESULTS OF OPERATIONS (Thousands, except per share date) Quarter Ended Year to Date Ended 10/02/05 09/26/04 10/02/05 09/26/04 -------- -------- -------- -------- Revenues: Food and beverage $ 114,284 $ 120,416 $ 362,783 $ 365,494 Games and merchandise 64,527 62,394 197,022 187,961 Franchise fees and royalties 769 807 2,249 2,520 Interest income 9 5 22 19 --------- --------- --------- --------- 179,589 183,622 562,076 555,994 --------- --------- --------- --------- Costs and expenses: Cost of sales: Food, beverage and related supplies 21,316 22,152 66,721 67,937 Games and merchandise 7,875 7,922 22,906 23,782 Labor 49,888 49,928 152,335 150,855 Selling, general and administrative expenses 21,378 21,410 68,211 65,289 Depreciation and amortization 15,377 14,220 45,554 41,478 Interest expense 1,072 599 2,779 1,567 Other operating expenses 36,298 33,169 101,512 96,556 --------- --------- --------- --------- 153,204 149,400 460,018 447,464 --------- --------- --------- --------- Income before income taxes 26,385 34,222 102,058 108,530 Income taxes 10,105 13,108 39,088 41,567 --------- --------- --------- --------- Net income $ 16,280 $ 21,114 $ 62,970 $ 66,963 ========= ========= ========= ========= Earnings per share: Basic $ .47 $ .57 $ 1.78 $ 1.78 Diluted $ .45 $ .56 $ 1.72 $ 1.73 Weighted average shares outstanding: Basic 34,954 36,834 35,475 37,551 Diluted 36,004 37,970 36,658 38,726
CEC ENTERTAINMENT, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Thousands, except share amounts) Oct. 2, January 2, 2005 2005 --------- ---------- (unaudited) ASSETS Current assets: Cash and cash equivalents........................................... $ 10,781 $ 11,798 Accounts receivable................................................. 18,109 13,482 Inventories......................................................... 14,088 12,171 Prepaid expenses.................................................... 9,078 7,444 Deferred tax asset.................................................. 1,763 1,763 --------- --------- Total current assets............................................. 53,819 46,658 --------- --------- Property and equipment, net.......................................... 575,741 563,081 --------- --------- Other assets ........................................................ 2,043 2,278 --------- --------- $ 631,603 $ 612,017 ========= ========= LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long-term debt................................... $ 590 $ 78,279 Accounts payable.................................................... 26,469 24,294 Accrued liabilities................................................. 37,150 36,329 --------- --------- Total current liabilities........................................ 64,209 138,902 --------- --------- Long-term debt, less current portion................................... 115,468 11,673 --------- --------- Deferred rent.......................................................... 59,113 53,427 --------- --------- Deferred tax liability................................................. 33,673 36,429 --------- --------- Accrued insurance ..................................................... 10,750 10,856 --------- --------- Shareholders' equity: Common stock, $.10 par value; authorized 100,000,000 shares; 56,000,490 and 55,556,857 shares issued, respectively ........... 5,600 5,556 Capital in excess of par value...................................... 258,581 245,991 Retained earnings .................................................. 496,237 433,267 Accumulated other comprehensive income ............................. 1,650 1,476 Less treasury shares of 21,676,588 and 19,210,568, respectively, at cost............................ (413,678) (325,560) --------- --------- 348,390 360,730 --------- --------- $ 631,603 $ 612,017 ========= =========
CEC ENTERTAINMENT, INC. SUPPLEMENTAL FINANCIAL INFORMATION (Thousands) Quarter Ended Year to Date Ended 10/02/05 09/26/04 10/02/05 09/26/04 -------- -------- -------- -------- Number of Company-owned stores: Beginning of period 455 430 449 418 New 7 8 12 20 Company purchased franchise stores 1 Closed ---- ---- ---- ---- End of period 462 438 462 438 Number of franchise stores: Beginning of period 45 49 46 48 New 1 1 Company purchased franchise stores 2 (1) 2 Closed (1) (1) (1) ---- ---- ---- ---- End of period 45 50 45 50
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