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EX-99
PRESS RELEASE
FOR IMMEDIATE RELEASE Contact:Michael G. Webb
Chief Financial Officer
(901) 367-0888 Ext. 1226
BACK YARD BURGERS ANNOUNCES SHARE REPURCHASE PROGRAM
MEMPHIS, TENNESSEE (JANUARY 2, 2001) - Back Yard Burgers, Inc. (Nasdaq SmallCap:
BYBI) today announced that its board of directors has authorized the repurchase
of up to 500,000 shares or approximately 10.7% of the company's outstanding
common stock. The company expects to purchase common stock from time to time on
the open market.
The repurchase plan will be used as a means of enhancing shareholder value.
Commenting on the repurchase plan, Lattimore M. Michael, Chairman and Chief
Executive Officer 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.
Back Yard Burgers operates and franchises quick-service restaurants in Memphis,
Little Rock, Nashville and other markets across 16 states. The restaurants
specialize in charbroiled, freshly prepared, great-tasting food. As its name
implies, Back Yard Burgers strives to offer the same high-quality ingredients
and special care typified by outdoor grilling in the backyard. Its menu features
made-to-order gourmet hamburgers and chicken sandwiches charbroiled over an open
flame, fresh salads, chili and other special entrees as well as hand-dipped
milkshakes, fresh-made lemonade and fresh-baked cobblers.
This press release contains forward-looking statements within the meaning of the
federal securities laws. There are certain important factors that could cause
actual results to differ materially from those anticipated by the statements
made herein. Among the factors that could cause actual results to differ from
predicted or expected results are: delays in opening new stores because of
weather, local permitting or other reasons; increased competition; cost
increases or shortages in raw food products; and the possibility of unforeseen
events affecting the industry generally. The company undertakes no obligation to
publicly release revisions to these forward-looking statements to reflect events
or circumstances after the date hereof or to reflect the occurrence of
unforeseen events, except as required to be reported under the rules and
regulations of the Securities and Exchange Commission.
