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The repurchase plan will be used as a means of enhancing shareholder value. Commenting on the repurchase plan, Lattimore Michael, chairman and CEO stated, "We believe that, at our current market price, the stock is undervalued. This action reflects our ongoing commitment to improving the investment value of our stock.''
The timing and amount of any shares repurchased will be determined by the company, based on its evaluation of market conditions and other factors. Funds used to repurchase shares will come from the company's existing cash, which as of September 30, 2000, was approximately $1.2 million. Currently, there are approximately 4.64 million shares of common stock outstanding.
The company also announced that it expects revenues of approximately $7.1 million for the quarter ended December 30, 2000, and revenues of approximately $29.2 million for the fiscal year ending December 30, 2000. These preliminary revenue estimates compare to revenues of $7.0 million for the fourth quarter of 1999 and $29.3 million for fiscal year 1999. The company also announced that it expects earnings of $0.00 to $0.01 per diluted share for the quarter ended December 30, 2000, and earnings of approximately $0.09 to $0.10 per diluted share for the fiscal year ending December 30, 2000. These preliminary earnings per diluted share estimates compare to a loss per share of $0.17 for the fourth quarter of 1999 and a loss per share of $0.12 for fiscal year 1999. Prior year fourth quarter and annual earnings include a $1.36 million impairment charge related to under-performing assets. Back Yard Burgers, Inc. intends to announce final financial results for the year and quarter ended December 30, 2000, on Tuesday, February 27, 2001, before the market is open.
Same-store sales at company-operated restaurants are projected to decrease approximately 1.0% for the quarter and decrease approximately 5.6% for the year, while franchised restaurant same-store sales are projected to decrease 6.0% for the quarter and decrease approximately 4.7% for the year.
As of January 2, 2001, the company's restaurant system comprised 93 units, including 35 company-operated stores and 58 franchised stores.