Total revenues for the thirteen weeks ended April 1, 2000 decreased 4.0% to $6,574,000 from $6,851,000 in the year-earlier period, due to the closing of two underperforming stores at the end of 1999 and one during the first quarter of 2000 and a decrease in same-store sales. Inclement weather during the last week of January 2000 resulted in the loss of one to three business days at several restaurants in Nashville, Memphis and Little Rock, as well as some franchised markets, which also negatively impacted sales and margins for the quarter compared with the prior year. These declines were offset by an increase in royalty fees from a net increase of four new franchised stores. EBITDA increased 3.8% to $544,000 for the first quarter of 2000 from $524,000 in the year-earlier period. Net income increased 54.8% for the quarter to $65,000 or $.01 per diluted share, from $42,000 or $.01 per diluted share, during the first quarter of 1999. EBITDA and net income for the quarter were positively impacted by a $131,000 gain on the sale of unutilized assets during the quarter.
Same-store sales for the first quarter decreased 8.2% for company-operated restaurants and 2.9% for franchised restaurants.
Commenting on the results, Lattimore M. Michael, Chairman and Chief Executive Officer, stated, "We are continuing to expand the business by opening new franchised restaurants, and are also focusing on sales and profitability of existing company-operated restaurants. Beginning in the second quarter, the company will commit additional marketing funds for the remainder of the year to allow us to communicate our quality message at a greater media level. Although the company has experienced a decline in company-operated same-store sales, we believe the implementation of our new targeted local store marketing plan combined with a broader media campaign will aid in the reversal of this negative trend."
During the first quarter of 2000, one company-operated restaurant was closed in downtown Memphis. One franchised store opened in each of Southern Pines, North Carolina, Austin, Texas, and Independence, Missouri. Other franchised store activity included the closing of one franchised store in Hope Mills, North Carolina. The company anticipates one company-operated and at least twelve franchised restaurants to open during 2000.
As of April 1, 2000, the Company's restaurant system comprised 87 units, including 34 company-operated stores and 53 franchised stores.
Back Yard Burgers operates and franchises quick-service restaurants in Memphis, Little Rock, Nashville and other markets across 16 states.
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