United States
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q/A
AMENDMENT NO. 1
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended July 17, 1996 or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____to_____
Commission File Number: 0-22402
HOMETOWN BUFFET, INC.
(Exact name of registrant as specified in its charter)
Delaware 33-0463002
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation of organization)
9171 Towne Centre Drive, Suite 575
San Diego, California 92122
(Address of principal executive offices) (Zip Code)
(619) 546-9096
(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) had been subject to
such filing requirements for the past 90 days.
Yes [ X ] No [ ]
Number of shares of Common Stock outstanding as of August 27, 1996:
11,667,639
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TABLE OF CONTENTS
Item in
Form 10-Q Page No.
--------- --------
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets-
July 17, 1996 and January 3, 1996 ............................3
Consolidated Income Statements-
Twelve Weeks Ended July 17, 1996 and July 12, 1995
and Twenty-Eight Weeks Ended July 17, 1996 and
July 12, 1995 ................................................4
Consolidated Statements of Cash Flows-
Twenty-Eight Weeks Ended July 17, 1996 and
July 12, 1995 ................................................5
Notes to Consolidated Financial Statements ...................6
2
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PART I FINANCIAL INFORMATION
<TABLE>
<CAPTION>
HomeTown Buffet, Inc. and Subsidiaries
Consolidated Balance Sheets
(In thousands, except share data)
(Unaudited)
July 17, January 3,
Assets 1996 1996
------ ---- ----
<S> <C> <C>
Current assets:
Cash and cash equivalents ................. $ 3,172 $ 1,155
Short-term investments .................... 14,958 27,828
Receivables ............................... 2,321 2,830
Inventories ............................... 1,152 1,094
Prepaid expenses .......................... 1,080 865
Pre-opening costs ......................... 1,471 1,784
-------- --------
Total current assets .................... 24,154 35,556
Property and equipment, net ................. 119,275 107,946
Other assets ................................ 3,283 2,355
-------- --------
$146,712 $145,857
======== ========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable, trade .................... $ 8,437 $ 12,357
Accrued expenses ........................... 8,130 5,453
Deferred income taxes ...................... 469 542
Current portion of capital leases .......... 2,111 2,012
Short-term debt ............................ 0 2,000
-------- --------
Total current liabilities ................. 19,147 22,364
Deferred income taxes ....................... 1,930 1,530
Long-term portion of capital leases ......... 6,045 7,143
Other liabilities ........................... 1,790 1,102
Long-term debt .............................. 41,500 41,500
Stockholders' equity:
Common stock, $.01 par value.
Authorized 20,000,000 shares;
11,654,379 shares and 11,581,779
shares issued and outstanding at the
end of second quarter 1996 and fiscal
1995, respectively ......................... 117 116
Additional paid-in capital ................. 62,265 62,065
Retained earnings .......................... 13,918 10,037
-------- --------
Total stockholders' equity ................ 76,300 72,218
-------- --------
$ 146,712 $ 145,857
======== ========
See accompanying notes to consolidated financial statements.
</TABLE>
3
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<TABLE>
<CAPTION>
HomeTown Buffet, Inc. and Subsidiaries
Consolidated Income Statements
(In thousands, except per share data)
(Unaudited)
Twelve Weeks Twenty-Eight
Ended Weeks Ended
----------------- -----------------
July 17, July 12, July 17, July 12,
1996 1995 1996 1995
------- ------- ------- -------
<S> <C> <C> <C> <C>
Revenues:
Net restaurant sales ............................. $50,965 $34,589 $112,368 $72,923
Franchise income, net (primarily related party) .. 225 226 569 507
------- ------- ------- -------
Total revenues ................................ 51,190 34,815 112,937 73,430
------- ------- ------- -------
Costs and expenses:
Cost of restaurant sales ......................... 17,767 12,551 39,741 26,580
Restaurant operating expenses:
Labor .......................................... 14,473 9,687 32,445 20,973
Occupancy and other ............................ 8,253 5,372 18,084 11,172
General and administrative expenses .............. 3,096 2,233 7,146 4,838
Depreciation and amortization .................... 3,396 2,278 7,600 4,885
------- ------- ------- -------
Total costs and expenses ...................... 46,985 32,121 105,016 68,448
------- ------- ------- -------
Income from operations ........................ 4,205 2,694 7,921 4,982
Interest expense ................................. (900) (230) (2,114) (410)
Interest income .................................. 244 86 643 195
Other income (expense), net ...................... (5) 28 19 29
------- ------- ------- -------
Net income before income taxes .............. 3,544 2,578 6,469 4,796
Income taxes ..................................... 1,418 954 2,588 1,775
------- ------- ------- -------
Net income .................................. $ 2,126 $ 1,624 $ 3,881 $ 3,021
======= ======= ======= =======
Net income per common and
common equivalent shares $ 0.18 $ 0.14 $ 0.32 $ 0.25
======= ======= ======= =======
Weighted average common and common
equivalent shares 12,091 11,976 12,024 11,947
======= ======= ======= =======
See accompanying notes to consolidated financial statements.
</TABLE>
4
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<TABLE>
<CAPTION>
HomeTown Buffet, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Twenty-Eight
Weeks Ended
---------------------
July 17, July 12,
1996 1995
-------- --------
<S> <C> <C>
Cash flows from operating activities:
Net income ............................................. $ 3,881 $ 3,021
Adjustments to reconcile net income to cash provided
by operating activities:
Depreciation and amortization .......................... 7,600 4,885
Amortization of premium/discount on investments ........ 0 (41)
Changes in assets and liabilities:
Receivables ............................................ 509 1,832
Inventories ............................................ (58) (161)
Prepaid expenses ....................................... (215) (304)
Pre-opening costs ...................................... (958) (1,035)
Other assets ........................................... (998) 122
Accounts payable, trade ................................ (3,920) (3,827)
Accrued expenses. ...................................... 2,677 1,404
Deferred income taxes .................................. 327 379
Other liabilities ...................................... 688 193
-------- --------
Net cash provided by operating activities............... 9,533 6,468
-------- --------
Cash flows from investing activities:
Purchase of investments ................................ (106,349) (5,645)
Proceeds from sale of investments ...................... 119,219 11,185
Purchase of property and equipment ..................... (17,588) (22,880)
-------- --------
Net cash used in investing activities .................. (4,718) (17,340)
-------- --------
Cash flows from financing activities:
Sale of common stock ................................... 201 84
Proceeds on borrowings ................................. 3,000 20,831
Payments on borrowings ................................. (5,000) (9,375)
Payments on capital leases ............................. (999) (699)
-------- --------
Net cash provided by financing activities .............. (2,798) 10,841
-------- --------
Increase/(decrease) in cash and cash equivalents ...... 2,017 (31)
Cash and cash equivalents at beginning of period ....... 1,155 85
-------- --------
Cash and cash equivalents at end of period ............. $ 3,172 $ 54
======== ========
Supplemental disclosure of cash flow information:
Cash paid for:
Interest ............................................... $ 1,672 $ 410
Income taxes ........................................... $ 1,824 $ 1,435
See accompanying notes to consolidated financial statements.
</TABLE>
5
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HomeTown Buffet, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
1. In the opinion of Management, the accompanying unaudited consolidated
Financial Statements contain all adjustments, which are of a normal
recurring nature, necessary to present fairly the financial position
as of July 17, 1996 and the results of operations for the twelve weeks
ended July 17, 1996 and July 12, 1995 and the results of operations
and cash flows for the twenty-eight weeks ended July 17, 1996 and July
12, 1995. The results of operations for the twelve weeks and
twenty-eight weeks are not necessarily indicative of the results for
the entire fiscal year ending January 1, 1997.
These financial statements have been prepared by HomeTown Buffet, Inc.
(the "Company") pursuant to the rules and regulations of the
Securities and Exchange Commission. Certain information and footnote
disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been
condensed or omitted pursuant to such regulations, although the
Company believes the disclosures provided are adequate to prevent the
information presented from being misleading.
These financial statements should be read in conjunction with the
financial statements and notes thereto included in the Company's
Annual Report for the fiscal year ended January 3, 1996.
2. Primary and fully diluted net income per share are computed using the
weighted average number of common and dilutive common equivalent
shares assumed to be outstanding during the period. Common equivalent
shares consist of options to purchase common shares. The treasury
stock method was used to calculate the common equivalent number of
shares from options.
6
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Signature
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.
HomeTown Buffet, Inc.
(Registrant)
September 17, 1996 GLENN E. GLASSHAGEL
-------------------------------------------
Chief Financial and
Accounting Officer and Authorized
Officer
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