<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------------
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED COMMISSION FILE NUMBER
SEPTEMBER 28, 1997 0-19810
BACK BAY RESTAURANT GROUP, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 04-2812651
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
284 NEWBURY STREET, BOSTON, MASSACHUSETTS 02115
(Address of principal executive offices)
(617) 536-2800
(Registrant's telephone number, including area code)
---------------------------
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
----- -----
On October 31, 1997, there were 3,430,843 shares of the registrant's Common
Stock outstanding.
The accompanying notes are an integral part of these consolidated
financial statements.
<PAGE> 2
BACK BAY RESTAURANT GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (in thousands)
<TABLE>
<CAPTION>
ASSETS SEPTEMBER 28, 1997 DECEMBER 29, 1996
------------------ -----------------
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 1,342 $ 1,344
Accounts receivable net of allowance for
doubtful accounts ($970 in 1996 and 1997) 213 252
Inventories 644 687
Prepaid expenses and other current assets 941 904
Deferred income taxes 169 169
------- -------
Total current assets 3,309 3,356
------- -------
Buildings and improvements 4,303 4,303
Furniture, fixtures and equipment 17,354 16,124
Leasehold improvements 31,814 31,965
Lease rights 2,826 2,826
------- -------
56,297 55,218
Less: accumulated depreciation and amortization 26,159 23,436
------- -------
Net property, plant and equipment 30,138 31,782
------- -------
Other assets:
Goodwill, net of accumulated amortization 4,926 5,052
Tradenames and trademarks, net of
accumulated amortization 1,263 1,286
Deferred income taxes 1,698 1,698
Other assets, net of accumulated amortization 791 737
------- -------
Total other assets 8,678 8,773
------- -------
Total assets $42,125 $43,911
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,879 $ 2,709
Accrued expenses 7,583 7,750
Current maturities of long-term debt 500 1,500
Income taxes payable 291 284
------- -------
Total current liabilities 11,253 12,243
------- -------
Deferred rent 222 441
Other long term liability 60 --
Long term debt 4,500 6,025
Commitments and contingencies
Stockholders' equity:
Common stock, $.01 par value; authorized
20,000 shares; 3,434 shares issued and
outstanding in 1996, and 3,431 shares in 1997 36 36
Additional paid-in capital 23,037 23,039
Retained earnings 4,816 3,926
------- -------
27,889 27,001
Less treasury stock, 208 shares at cost in
1996 and 1997 1,799 1,799
------- -------
Total stockholders' equity 26,090 25,202
------- -------
Total liabilities and stockholders' equity $42,125 $43,911
======= =======
</TABLE>
The accompanying notes are an integral part of these consolidated
financial statements.
2
<PAGE> 3
BACK BAY RESTAURANT GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
<TABLE>
<CAPTION>
13 WEEKS ENDED
SEPTEMBER 28, 1997 SEPTEMBER 29, 1996
------------------ ------------------
<S> <C> <C>
Sales $23,859 $21,176
Costs and expenses:
Cost of sales 6,725 5,973
Payroll and related costs 7,678 6,980
Operating expenses 5,617 4,978
Depreciation and amortization 1,088 948
------- -------
Total restaurant operating expenses 21,108 18,879
------- -------
Income from restaurant operations 2,751 2,297
General and administrative expenses 2,038 2,014
------- -------
Operating income 713 283
Interest expense net 116 174
------- -------
Income before income taxes 597 109
Income taxes 221 40
------- -------
Net income $ 376 $ 69
======= =======
Net income per share $ .11 $ .02
======= =======
Weighted average common and common 3,485 3,436
equivalent shares outstanding
</TABLE>
The accompanying notes are an integral part of these consolidated
financial statements.
3
<PAGE> 4
BACK BAY RESTAURANT GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
<TABLE>
<CAPTION>
39 WEEKS ENDED
SEPTEMBER 28, 1997 SEPTEMBER 29, 1996
------------------ ------------------
<S> <C> <C>
Sales $ 69,877 $ 63,824
Costs and expenses:
Cost of sales 19,505 18,100
Payroll and related costs 22,623 20,840
Operating expenses 16,330 15,006
Depreciation and amortization 3,082 2,838
-------- --------
Total restaurant operating expenses 61,540 56,784
-------- --------
Income from restaurant operations 8,337 7,040
General and administrative expenses 6,477 6,608
-------- --------
Operating income 1,860 432
Interest expense net 447 563
-------- --------
Income/(loss) before income taxes 1,413 (131)
Income taxes 523 (48)
-------- --------
Net income/(loss) $ 890 $ (83)
======== ========
Net income/(loss) per share $ .26 $ (.02)
======== ========
Weighted average common and common 3,452 3,436
equivalent shares outstanding
</TABLE>
The accompanying notes are an integral part of these consolidated
financial statements.
4
<PAGE> 5
BACK BAY RESTAURANT GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(in thousands)
<TABLE>
<CAPTION>
Additional Total
Common Paid-in Retained Treasury Stockholders'
Stock Capital Earnings Stock Equity
------ ---------- -------- -------- -------------
<S> <C> <C> <C> <C> <C>
Balance, December 25, 1994 $ 36 $ 23,031 $ 6,269 $ (1,799) $ 27,537
Net loss -- -- (2,810) -- (2,810)
------ ---------- -------- -------- -------------
Balance, December 31, 1995 36 23,031 3,459 (1,799) 24,727
Net income -- -- 467 -- 467
Restricted stock -- 8 -- -- 8
------ ---------- -------- -------- -------------
Balance, December 29, 1996 36 23,039 3,926 (1,799) 25,202
Net income -- -- 890 -- 890
Exercise of stock option -- 6 -- -- 6
Restricted stock compensation -- (8) -- -- (8)
------ ---------- -------- -------- -------------
Balance, September 28, 1997 $ 36 $ 23,037 $ 4,816 $ (1,799) $ 26,090
====== ========== ======== ======== =============
</TABLE>
The accompanying notes are an integral part of these consolidated
financial statements.
5
<PAGE> 6
BACK BAY RESTAURANT GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
<TABLE>
<CAPTION>
39 WEEKS ENDED
SEPTEMBER 28, 1997 SEPTEMBER 29, 1996
------------------ ------------------
<S> <C> <C>
Cash flows from operating activities:
Net income/(loss) $ 890 $ (83)
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 3,153 2,903
Loss on equity investment -- 473
Changes in operating assets and liabilities:
Decrease in accounts receivable 39 105
Decrease in inventories 43 44
Increase in prepaid expenses and
other current assets (278) (238)
Increase in prepaid income taxes -- (326)
(Increase)/decrease in other assets (87) 2
Increase/(decrease) in accounts payable and
accrued expenses 111 (646)
Increase in income taxes payable 7 --
Decrease in deferred rent (219) (33)
Increase in other long term liability 60 --
------- -------
Net cash provided by operating activities 3,719 2,201
------- -------
Cash flows from investing activities:
Investment in partnership -- (157)
Capital expenditures (2,596) (3,234)
Proceeds from sale of assets 1,382 --
------- -------
Net cash used for investing activities (1,214) (3,391)
------- -------
Cash flows from financing activities:
Proceeds from debt -- 300
Exercise of stock option 6 --
Cancellation of stock option 12 --
Principal payments of debt (2,525) (1,550)
------- -------
Net cash used for financing activities (2,507) (1,250)
------- -------
Net decrease in cash and cash equivalents (2) (2,440)
Cash and cash equivalents at beginning of period 1,344 3,326
------- -------
Cash and cash equivalents at end of period $ 1,342 $ 886
======= =======
Supplemental disclosures of cash flow information:
Interest paid $ 474 $ 621
======= =======
Income taxes paid $ 552 $ 295
======= =======
</TABLE>
The accompanying notes are an integral part of these consolidated
financial statements.
6
<PAGE> 7
BACK BAY RESTAURANT GROUP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THIRTY-NINE WEEKS ENDED
SEPTEMBER 28, 1997 AND SEPTEMBER 29, 1996
NOTE 1 -- BASIS OF PRESENTATION
The preceding data is unaudited but, in the opinion of
management, includes all adjustments (consisting of normal
recurring accruals and deferrals) that management considers
necessary for a fair presentation of the financial position,
results of operations and cash flows for the interim periods
presented in accordance with generally accepted accounting
principles and practices consistently applied.
The results of operations for the thirty-nine weeks ended
September 28, 1997 and September 29, 1996 are not necessarily
indicative of the results that may be expected for the entire
year, because the Company's business is subject to seasonal
influences.
NOTE 2 -- NEWLY ISSUED ACCOUNTING STANDARD
In February 1997, Statement of Financial Accounting Standards
Number 128, "Earnings Per Share" ("SFAS 128") was issued. SFAS
128, which revises the traditional computation, presentation
and disclosure requirements for earnings per share, is
effective for financial statements issued for periods ending
after December 15, 1997. Adoption of SFAS 128 would not have a
material impact on the Company's reported earnings per share.
In June 1997 the FASB issued Statement No. 130, "Reporting
Comprehensive Income", which establishes standards for
reporting and display of comprehensive income and its
components (revenue, expenses, gains and losses) in a full set
of general-purpose financial statements. This Statement
requires that all items that are required to be recognized
under accounting standards as components of comprehensive
income be reported in a financial statement that is displayed
with the same prominence as other financial statements. This
Statement is effective for fiscal years beginning after
December 15, 1997. Management does not believe the
implementation of this Statement will have any significant
effect on the Company's financial statements.
In June 1997 the FASB issued Statement No. 131, "Disclosures
about Segments of an Enterprise and Related Information",
which establishes standards for the way public enterprises
report information about operating segments in annual
financial statements and requires that those enterprises
report selected information about operating segments in
interim financial reports issued to shareholders. It also
establishes standards for related disclosures about products
and services, geographic areas, and major customers. This
Statement requires that a public business enterprise report
financial and descriptive information about its reportable
operating segments, which are components of an enterprise
about which separate financial information is available that
is evaluated regularly by the chief operating decision maker
in deciding how to allocate resources and in assessing
performance. This Statement is effective for financial
statements for periods beginning after December 15, 1997.
Management is evaluating this Statement to determine what
information will be required to be disclosed.
7
<PAGE> 8
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
THIRTEEN WEEKS ENDED SEPTEMBER 28, 1997 COMPARED TO THIRTEEN WEEKS ENDED
SEPTEMBER 29, 1996
The following table sets forth the percentage of net sales represented by
certain items included in the Company's income statements for the periods
indicated:
<TABLE>
<CAPTION>
13 WEEKS ENDED
SEPTEMBER 28, 1997 SEPTEMBER 29, 1996
------------------ ------------------
<S> <C> <C>
Sales 100.0% 100.0%
Costs and expenses:
Cost of sales 28.2 28.2
Payroll and related costs 32.2 33.0
Operating expenses 23.5 23.5
Depreciation and amortization 4.6 4.5
Total restaurant operating expenses 88.5 89.2
Income from restaurant operations 11.5 10.8
General and administrative expenses 8.5 9.5
Operating income 3.0 1.3
Interest expense net 0.5 0.8
Income before income taxes 2.5 0.5
Income taxes 0.9 0.2
Net income 1.6 0.3
Number of restaurants:
Restaurants open at beginning
of period 34 33
Restaurants open at end of period 34 34
</TABLE>
8
<PAGE> 9
SALES
Sales increased by $2,683,000, or 12.7%, to $23,859,000 in the thirteen
week period ended September 28, 1997, from $21,176,000 in the same period in
1996. Same store sales were essentially flat in the thirteen week period ended
September 28, 1997, compared with the same period in 1996.
The overall increase in sales in the thirteen weeks ended September 28,
1997 compared with the same period in 1996 was principally due to two new
restaurants which opened subsequent to September 17, 1996. The increase in sales
from new stores was approximately $3,039,000. This amount was partially offset
by one store which closed in June 1997. The decrease in sales from the closed
store was approximately $386,000.
The Company operated 34 restaurants at September 28, 1997, and 34
restaurants at September 29, 1996. Total restaurant customer count for the
thirteen weeks ended September 28, 1997 increased 9.2% to 1,362,000 from
1,248,000 in the comparable period in 1996.
COST OF SALES
Cost of sales as a percentage of sales was 28.2% in the thirteen week
period ended September 28, 1997, and was 28.2% in the same period in 1996.
Although cost of sales as a percentage of sales was the same for both periods,
food cost as a percentage of food revenue increased to 30.1% in the 1997 period
versus 29.7% in the 1996 period, and beverage cost as a percentage of beverage
revenue decreased to 23.1% in the 1997 period versus 23.5% in the 1996 period.
The food cost increases were due principally to price increases in some produce
items. The beverage cost decreases were due principally to modest sales price
increases in selected wines.
PAYROLL AND RELATED COSTS
Payroll and related costs as a percentage of sales decreased to 32.2% in
the thirteen weeks ended September 28, 1997, from 33.0% in the same period in
1996. Payroll and related costs increased by $698,000 in the thirteen weeks
ended September 28, 1997, to $7,678,000 from $6,980,000 in the same period in
1996. The increase in dollars is primarily attributable to the Company having
payroll for two new restaurants which opened subsequent to September 17, 1996.
The decrease in payroll and related costs as a percentage of sales is
attributable to the two new restaurants which opened subsequent to September 17,
1996 and more effective controls.
OPERATING EXPENSES
Operating expenses increased by $639,000 in the thirteen weeks ended
September 28, 1997 to $5,617,000 from $4,978,000 in the same period in 1996. The
increase in operating expenses is primarily attributable to two new restaurants
which opened subsequent to September 17, 1996.
9
<PAGE> 10
DEPRECIATION AND AMORTIZATION
Depreciation and amortization increased by $140,000 in the thirteen weeks
ended September 28, 1997 to $1,088,000 from $948,000 in the same period in 1996.
The increase is principally attributable to two new restaurants which opened
subsequent to September 17, 1996. Included in the 1997 amortization is the
amortization of pre-opening costs of new restaurants opened during the prior
12-month period. The Company amortizes such pre-opening costs over the 12-month
period immediately following an opening or conversion.
GENERAL AND ADMINISTRATIVE EXPENSES
General and administrative expenses increased by $24,000 in the thirteen
weeks ended September 28, 1997 to $2,038,000 from $2,014,000 in the same period
in 1996. The increase is primarily attributable to increases in salaries and
wages which were offset by a decrease in insurance expense.
INTEREST EXPENSE
Interest expense decreased by $58,000 in the thirteen weeks ended
September 28, 1997 to $116,000 from $174,000 in the same period in 1996. This
decrease was attributable to the Company's reduced borrowings at September 28,
1997 compared with the same period in 1996.
INCOME TAXES
Income taxes increased by $181,000 in the thirteen weeks ended September
28, 1997 to $221,000 from $40,000 in the same period in 1996. The increased
expense in the thirteen weeks ended September 28, 1997 reflects the pre-tax
income of $597,000 as compared to the pre-tax income of $109,000 for the same
period in 1996. The estimated effective tax rate was 37% for both periods.
10
<PAGE> 11
THIRTY-NINE WEEKS ENDED SEPTEMBER 28, 1997 COMPARED TO THIRTY-NINE WEEKS ENDED
SEPTEMBER 29, 1996
The following table sets forth the percentage of net sales represented by
certain items included in the Company's income statements for the periods
indicated:
<TABLE>
<CAPTION>
39 WEEKS ENDED
SEPTEMBER 28, 1997 SEPTEMBER 29, 1996
------------------ ------------------
<S> <C> <C>
Sales 100.0% 100.0%
Costs and expenses:
Cost of sales 27.9 28.4
Payroll and related costs 32.4 32.7
Operating expenses 23.4 23.5
Depreciation and amortization 4.4 4.4
Total restaurant operating expenses 88.1 89.0
Income from restaurant operations 11.9 11.0
General and administrative expenses 9.3 10.3
Operating income 2.6 0.7
Interest expense net 0.6 0.9
Income/(loss) before income taxes 2.0 (0.2)
Income taxes 0.7 (0.1)
Net income/(loss) 1.3 (0.1)
Number of restaurants:
Restaurants open at beginning
of period 34 33
Restaurants open at end of period 34 34
</TABLE>
11
<PAGE> 12
SALES
Sales increased by $6,053,000, or 9.5%, to $69,877,000 in the thirty-nine
week period ended September 28, 1997, from $63,824,000 in the same period in
1996. Same store sales decreased $306,000, or 0.5%, in the thirty-nine week
period ended September 28, 1997, compared with the same period in 1996.
The overall increase in sales in the thirty-nine weeks ended September
28, 1997, compared with the same period in 1996 was primarily attributable to
sales from new stores, which contributed $6,903,000. This amount was partially
offset by one store which closed in June 1997. The decrease in sales from the
closed store was approximately $516,000.
The Company operated 34 restaurants at September 28, 1997, and 34
restaurants at September 29, 1996. Total restaurant customer count for the
thirty-nine weeks ended September 28, 1997 increased 6.4% to 3,950,000 from
3,713,000 in the comparable period in 1996.
COST OF SALES
Cost of sales as a percentage of sales decreased to 27.9% in the
thirty-nine week period ended September 28, 1997, from 28.4% in the same period
in 1996. This decrease was attributable to a 0.3% decrease in food cost as a
percentage of food revenue (29.7% in the 1997 period versus 30.0% in the 1996
period), and a 0.5% decrease in beverage cost as a percentage of beverage
revenue (23.1% in the 1997 period versus 23.6% in the 1996 period). The food
cost decreases were due principally to price decreases in olive oil and pasta.
The beverage cost decreases were due principally to modest sales price increases
in selected wines.
PAYROLL AND RELATED COSTS
Payroll and related costs as a percentage of sales decreased to 32.4% in
the thirty-nine weeks ended September 28, 1997, from 32.7% in the same period in
1996. Payroll and related costs increased by $1,783,000 in the thirty-nine weeks
ended September 28, 1997, to $22,623,000 from $20,840,000 in the same period in
1996. The increase in dollars is primarily attributable to the Company having
payroll for two new restaurants.
OPERATING EXPENSES
Operating expenses increased by $1,324,000 in the thirty-nine weeks ended
September 28, 1997 to $16,330,000 from $15,006,000 in the same period in 1996.
The increase in operating expenses is primarily attributable to the Company
opening two new restaurants.
12
<PAGE> 13
DEPRECIATION AND AMORTIZATION
Depreciation and amortization increased by $244,000 in the thirty-nine
weeks ended September 28, 1997 to $3,082,000 from $2,838,000 in the same period
in 1996. The increase is principally attributable to two new restaurants which
opened subsequent to September 17, 1996. Included in the 1997 and 1996
amortization is the amortization of pre-opening costs of new restaurants opened
during the prior 12-month period. The Company amortizes such pre-opening costs
over the 12-month period immediately following an opening or conversion.
GENERAL AND ADMINISTRATIVE EXPENSES
General and administrative expenses decreased by $131,000 in the
thirty-nine weeks ended September 28, 1997 to $6,477,000 from $6,608,000 in the
same period in 1996. The decrease is primarily attributable to a decrease in
insurance expense.
INTEREST EXPENSE
Interest expense decreased by $116,000 in the thirty-nine weeks ended
September 28, 1997 to $447,000 from $563,000 in the same period in 1996. This
decrease was attributable to the Company's reduced borrowings at September 28,
1997 compared to the same period in 1996.
INCOME TAXES
Income taxes increased by $571,000 in the thirty-nine weeks ended
September 28, 1997 to an expense of $523,000 from a benefit of $48,000 in the
same period in 1996. The increased expense in the thirty-nine weeks ended
September 28, 1997 reflects the pre-tax income of $1,413,000 as compared to the
pre-tax loss of $131,000 for the same period in 1996. The estimated effective
tax rate was 37% for both periods.
LIQUIDITY AND CAPITAL RESOURCES
The Company, similar to many restaurant businesses, requires little
working capital because it does not have significant inventory or trade
receivables and receives several weeks of trade credit in purchasing food and
supplies. At September 28, 1997, the Company's cash position was $1,342,000 and
the Company had a net working capital deficit of $7,944,000.
The Company requires capital primarily for the development and
construction of new restaurants and the conversion of existing restaurants. In
recent years, the Company's primary sources of capital have been cash flow from
its operations, borrowings and landlord contributions to restaurant construction
costs. The Company intends to be very selective in its approval of sites for new
units and will be limiting the number of restaurant openings in 1997. The
Company expects to fund any capital expenditures for the remainder of 1997 from
internally generated cash. The Company believes that cash flow from operations
will be sufficient to meet future needs.
13
<PAGE> 14
CAUTIONARY STATEMENT
The foregoing Management's Discussion and Analysis of Financial Condition
and Results of Operations contains various "forward-looking statements" within
the meaning of Section 27A of the Securities Exchange Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements represent the Company's expectations or belief
concerning future events, including the following: any statements regarding
future sales and gross profits percentages, any statements regarding the
continuation of historical trends, and any statements regarding the sufficiency
of the Company's cash balances and cash generated from operating and financing
activities for the Company's future liquidity and capital resource needs.
Without limiting the foregoing, the words "believes," "anticipates," "plans,"
"expects," and similar expressions are intended to identify forward-looking
statements. The Company cautions that these statements are further qualified by
important economic and competitive factors that could cause actual results to
differ materially from those in the forward-looking statements including,
without limitation, risks of the restaurant industry, including a highly
competitive industry with many well-established competitors with greater
financial and other resources than the Company, and the impact of changes in
consumer tastes, local, regional and national economic conditions, demographic
trends, traffic patterns, employee availability and cost increases. In addition,
the Company's ability to expand is dependent upon various factors, such as the
availability of attractive sites for new restaurants, the ability to negotiate
suitable lease terms, the ability to generate or borrow funds to develop new
restaurants and obtain various government permits and licenses and the
recruitment and training of skilled management and restaurant employees.
Accordingly, such forward-looking statements do not purport to be predictions of
future events or circumstances and may not be realized.
14
<PAGE> 15
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None
ITEM 2. CHANGES IN SECURITIES
None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) EXHIBITS
Exhibit 11 Computation of Earnings Per Share
Exhibit 27 Financial Data Schedule
(b) REPORTS ON FORM 8-K
None
15
<PAGE> 16
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.
BACK BAY RESTAURANT GROUP, INC.
October 31, 1997 /s/ Francis P. Bissaillon
----------------------------------
Francis P. Bissaillon
Director, Executive Vice President
and Chief Financial Officer
October 31, 1997 /s/ Robert J. Ciampa
----------------------------------
Robert J. Ciampa
Vice President, Chief Accounting
Officer and Treasurer
16
<PAGE> 17
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT NO. DESCRIPTION
- ----------- -----------
<S> <C>
11 Computation of Earnings Per Share
27 Financial Data Schedule
</TABLE>
17
<PAGE> 1
EXHIBIT 11
BACK BAY RESTAURANT GROUP, INC.
AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
(in thousands, except per share data)
<TABLE>
<CAPTION>
13 WEEKS ENDED
SEPTEMBER 28, 1997 SEPTEMBER 29, 1996
------------------ ------------------
<S> <C> <C>
Net income $ 376 $ 69
====== ======
Weighted average number of common
shares outstanding 3,431 3,434
Add
Weighted average number of common
equivalent shares outstanding 54 2
------ ------
Weighted average number of common
and common equivalent shares
outstanding 3,485 3,436
====== ======
Net income per share $ .11 $ .02
====== ======
</TABLE>
18
<PAGE> 2
EXHIBIT 11
BACK BAY RESTAURANT GROUP, INC.
AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
(in thousands, except per share data)
39 WEEKS ENDED
SEPTEMBER 28, 1997 SEPTEMBER 29, 1996
------------------ ------------------
Net income/(loss) $ 890 $ (83)
====== ======
Weighted average number of common 3,433 3,434
shares outstanding
Add
Weighted average number of common
equivalent shares outstanding 19 2
------ ------
Weighted average number of common
and common equivalent shares
outstanding 3,452 3,436
====== ======
Net income/(loss) per share $ .26 $ (.02)
====== ======
19
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from (A) The
financial statements of Back Bay Restaurant Group, Inc. for the quarter ended
September 28, 1997. And is Qualified in its entirety by reference to such (B)
Financial Statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> OTHER
<FISCAL-YEAR-END> DEC-28-1997
<PERIOD-START> DEC-30-1996
<PERIOD-END> SEP-28-1997
<CASH> 1,342,000
<SECURITIES> 0
<RECEIVABLES> 213,000
<ALLOWANCES> 0
<INVENTORY> 644,000
<CURRENT-ASSETS> 3,309,000
<PP&E> 56,297,000
<DEPRECIATION> 26,159,000
<TOTAL-ASSETS> 42,125,000
<CURRENT-LIABILITIES> 11,253,000
<BONDS> 4,782,000
0
0
<COMMON> 3,430,643
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 42,125,000
<SALES> 23,859,000
<TOTAL-REVENUES> 23,859,000
<CGS> 6,725,000
<TOTAL-COSTS> 21,108,000
<OTHER-EXPENSES> 2,038,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 116,000
<INCOME-PRETAX> 597,000
<INCOME-TAX> 221,000
<INCOME-CONTINUING> 376,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 376,000
<EPS-PRIMARY> .11
<EPS-DILUTED> .11
</TABLE>
