-----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, AagXOkbtyEYMmg08CS6rRgt50TT+uz1A5vUPH76VCtLWIaraozkMHOyZcRrwWUcp Y8wNAFFCvecGJpC0xFPVyQ== 0000813920-06-000014.txt : 20060221 0000813920-06-000014.hdr.sgml : 20060220 20060221160612 ACCESSION NUMBER: 0000813920-06-000014 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060101 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060221 DATE AS OF CHANGE: 20060221 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: 06633058 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 k84th2005earnings.txt 2005 4TH QTR EARNINGS RELEASE 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) February 21, 2006 ---------------------------- 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 February 21, 2006, CEC Entertainment, Inc. issued a press release announcing financial results for the fiscal fourth quarter ended January 1, 2006. 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 February 21, 2006. 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: February 21, 2006 By: /s/ Christopher D. Morris ------------------------------------------------- Christopher D. Morris Executive Vice President, Chief Financial Officer EXHIBIT INDEX Exhibit Number Description - ------- ----------- 99 Press Release of CEC Entertainment, Inc. dated February 21, 2006. EX-99 2 ex994th2005earnings.txt PRESS RELEASE FOR RELEASE CONTACT: Chris Morris February 21, 2006 Executive Vice President 3:05 p.m. Central Time Chief Financial Officer (972) 258-4525 CEC ENTERTAINMENT, INC. REPORTS FOURTH QUARTER AND FISCAL YEAR-END RESULTS IRVING, TEXAS - CEC Entertainment, Inc. (NYSE:"CEC") today announced earnings for the fourth quarter and year ended January 1, 2006. Revenues for the fourth quarter of 2005 decreased to $164.1 million from $172.1 million in the fourth quarter of 2004. Net income was $9.9 million in the fourth quarter of 2005 and $15.6 million in the fourth quarter of 2004. Diluted earnings per share in the fourth quarter of 2005 were $0.28 per share compared to $0.41 per share in the fourth quarter of 2004. Revenues for 2005 decreased to $726.2 million from $728.1 million in 2004. Net income was $72.9 million in 2005 and $82.5 million in 2004. Diluted earnings per share in 2005 were $2.01 per share compared to $2.15 per share in 2004. Chris Morris, Executive Vice President and Chief Financial Officer stated that, "The fourth quarter of 2004 and fiscal year 2004 included an additional week compared to the same periods of 2005. We estimate this extra week contributed $18 million to revenues, $4.3 million to net income and $0.11 to diluted earnings per share in 2004. Comparable store sales declined 1.2% in the fourth quarter. During 2005, the Company generated operating cash flow of $139 million, invested $92 million primarily in new and existing stores and repurchased $117 million of Company stock. Borrowings on our credit facility increased by $59 million." Mr. Morris further added, "Beginning in the first quarter of 2006, the Company will expense stock-based compensation. Had stock-based compensation been expensed in 2005, diluted earnings per share for 2005 would have been $1.88. Based on current estimates, we expect diluted earnings per share to range from $0.80 to $0.85 in the first quarter of 2006 and range from $1.94 to $2.02 per share for the year." Richard M. Frank, Chairman and Chief Executive Officer stated that, "The Company remains financially strong which gives us the opportunity to effectively execute our strategic plan. We believe in our strategies for 2006 and we have talented and motivated people to execute them. We believe quality execution of these long-term strategies of enhancing our value and experience for our guests, reinforced with effective advertising, quality new store development, coupled with 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 522 Chuck E. Cheese's restaurants in 48 states, of which 478 are owned and operated by the Company. # # #
CEC ENTERTAINMENT, INC. CONDENSED CONSOLIDATED RESULTS OF OPERATIONS (Thousands, except per share date) Quarter Ended Year Ended 01/01/06 01/02/05 01/01/06 01/02/05 --------- --------- --------- --------- Revenues: Food and beverage................................ $ 105,977 $ 114,247 $ 468,760 $ 479,741 Games and merchandise............................ 57,400 57,127 254,422 245,088 Franchise fees and royalties..................... 656 700 2,905 3,220 Interest income.................................. 54 11 76 30 --------- --------- --------- --------- 164,087 172,085 726,163 728,079 --------- --------- --------- --------- Costs and expenses: Cost of sales: Food, beverage and related supplies........... 19,991 21,291 86,712 89,228 Games and merchandise......................... 7,091 6,613 29,997 30,395 Labor......................................... 49,311 49,699 201,646 200,554 Selling, general and administrative expenses....................... 21,342 21,182 89,553 86,471 Depreciation and amortization.................... 15,659 14,293 61,213 55,771 Interest expense................................. 1,588 919 4,367 2,486 Other operating expenses......................... 33,212 32,853 134,724 129,409 --------- --------- --------- --------- 148,194 146,850 608,212 594,314 --------- --------- --------- --------- Income before income taxes.......................... 15,893 25,235 117,951 133,765 Income taxes........................................ 5,986 9,666 45,074 51,233 --------- --------- --------- --------- Net income.......................................... $ 9,907 $ 15,569 $ 72,877 $ 82,532 ========= ========= ========= ========= Earnings per share: Basic............................................ $ .29 $ .43 $ 2.08 $ 2.22 Diluted.......................................... $ .28 $ .41 $ 2.01 $ 2.15 Weighted average shares outstanding: Basic............................................ 33,935 36,416 35,091 37,251 Diluted.......................................... 34,825 37,734 36,188 38,472
CEC ENTERTAINMENT, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Thousands, except share amounts) January 1, January 2, 2006 2005 ---------- ---------- ASSETS Current assets: Cash and cash equivalents......................................... $ 12,184 $ 11,798 Accounts receivable............................................... 20,323 13,482 Inventories....................................................... 13,659 12,171 Prepaid expenses.................................................. 7,882 7,444 Deferred tax asset................................................ 1,824 1,763 --------- --------- Total current assets........................................... 55,872 46,658 --------- --------- Property and equipment, net.......................................... 592,255 563,081 --------- --------- Other assets ........................................................ 2,201 2,278 --------- --------- $ 650,328 $ 612,017 ========= ========= LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long-term debt................................. $ 594 $ 78,279 Accounts payable.................................................. 30,264 24,294 Accrued liabilities............................................... 27,791 36,329 --------- --------- Total current liabilities...................................... 58,649 138,902 --------- --------- Long-term debt, less current portion................................. 148,974 11,673 --------- --------- Deferred rent........................................................ 61,877 53,427 --------- --------- Deferred tax liability............................................... 30,019 36,429 --------- --------- Accrued insurance ................................................... 17,000 10,856 --------- --------- Shareholders' equity: Common stock, $.10 par value; authorized 100,000,000 shares; 56,115,658 and 55,556,857 shares issued, respectively ......... 5,612 5,556 Capital in excess of par value.................................... 262,846 245,991 Retained earnings ................................................ 506,144 433,267 Accumulated other comprehensive income ........................... 1,699 1,476 Less treasury shares of 22,499,815 and 19,210,568, respectively, at cost.......................... (442,492) (325,560) --------- --------- 333,809 360,730 --------- --------- $ 650,328 $ 612,017 ========= =========
CEC ENTERTAINMENT, INC. SUPPLEMENTAL FINANCIAL INFORMATION (Thousands) Quarter Ended Year Ended 01/01/06 01/02/05 01/01/06 01/02/05 -------- -------- -------- -------- Number of Company-owned stores: Beginning of period...................... 462 439 449 418 New...................................... 13 9 25 29 Company purchased franchise stores....... 1 1 2 3 Closed................................... (1) (1) (1) ---- ---- ---- ---- End of period............................ 475 449 475 449 Number of franchise stores: Beginning of period...................... 45 47 46 48 New...................................... 1 1 Company purchased franchise stores....... (1) (1) (2) (3) Closed................................... (1) ---- ---- ---- ---- End of period............................ 44 46 44 46
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