UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) August 8, 1996
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HOMETOWN BUFFET, INC.
Delaware 0-22402 33-0463002
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(State or other jurisdiction of (Commission (IRS Employer
incorporation or organization) File No.) Identification No.)
9171 Towne Centre Drive, Suite 575, San Diego, CA 92122
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(Address of principal executive offices) (Zip Code)
(619) 546-9096
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(Registrant's telephone number, including area code)
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Item 5. Other Events
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On August 6, 1996, HomeTown Buffet, Inc. (the "Company") announced
results for the twelve-week and twenty-eight week periods ended July 17,
1996. A discussion of those results is contained in the Press Release of
the Company dated August 6, 1996 which is incorporated by reference and
filed as an Exhibit to this Report.
Item 7. Exhibits
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99.1 Press release dated August 6, 1996.
2
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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 hereunto duly authorized.
Dated: August 8, 1996
HOMETOWN BUFFET, INC.
By GLENN E. GLASSHAGEL
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Glenn E. Glasshagel
(Chief Financial and Accounting Officer
and Authorized Officer)
3
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EXHIBIT INDEX
Exhibit Description
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99.1 Press release dated August 6, 1996
4
EXHIBIT 99.1
FOR IMMEDIATE RELEASE TO BUSINESS EDITORS:
August 6, 1996
HOMETOWN BUFFET REPORTS SECOND QUARTER RESULTS
SAN DIEGO, CA--HomeTown Buffet, Inc. (Nasdaq: HTBB) today reported net
income of $2,126,000 for the twelve weeks ended July 17, 1996, a 31%
increase over the 1995 comparable twelve-week period net income of
$1,624,000. Per share results amounted to $0.18 per common share for the
second quarter of 1996 versus $0.14 per common share for the same period of
1995. Total revenues for the quarter increased 47% to $51.2 million from
$34.8 million in the same period of 1995, reflecting revenues generated by
additional Company-owned restaurants opened since the second quarter of
fiscal 1995.
For the first twenty-eight weeks of fiscal 1996 revenues totaled $112.9
million, a 54% increase from $73.4 million for the same period of 1995. Net
income for the twenty-eight week period of 1996 amounted to $3,881,000 or
$0.32 per common share compared to net income of $3,021,000 or $0.25 per
common share for the same period of 1995.
Average weekly net restaurant sales amounted to $54,775 in the second
quarter of 1996 versus $56,350 in the same period of the prior year, a 2.8%
decrease. For the first twenty-eight weeks of 1996 average weekly net
restaurant sales amounted to $53,802 compared to $54,893 in the same period
of 1995, a 2.0% decrease. C. Dennis Scott, Chairman and Chief Executive
Officer of the Company, said, "While average weekly sales weakened slightly
compared to first quarter results, we are nonetheless pleased that the
impact on overall Company profitability has been negligible. Also new store
volumes continue to be very strong and exceed Company averages."
Three new restaurants were opened in the second quarter of 1996. Mr. Scott
said this was slightly behind the expected number of openings for the
quarter. He also said the third quarter and the full year new openings will
be behind expectations. Mr. Scott noted, "Due to the pending merger with
Buffets, Inc. (Nasdaq: BOCB) and to avoid overlap, the Company has dropped
a couple of sites from its development roster for the year. Also, in recent
months management has shifted its focus from 1996 development to
integration with Buffets, Inc. As things now stand, we expect to open three
new restaurants in the third quarter, two of which have already opened, and
12 in the fourth quarter. This adds up to 24 new restaurant openings for
the entire 1996 fiscal year, approximately four short of original plans. We
do not expect that being four units short will have a significant impact on
profitability for the year."
The Company also reported that its franchisee with exclusive development
rights for the Rocky Mountain states was served notice by the Company that
it was in default of its development requirements. The franchisee has
sought arbitration proceedings in this matter.
However, a date has not yet been set to arbitrate.
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HomeTown Buffet, Inc.
Second Quarter Press Release
Page 2.
The Company further reported that the pending merger with Buffets, Inc.,
operator of Old Country Buffet restaurants, has been scheduled for
shareholder vote September 19, 1996 for shareholders of record on August
16, 1996. A joint proxy statement is expected to be mailed to the Company's
shareholders on or about August 19, 1996.
There are currently 98 HomeTown Buffet restaurants in operation, consisting
of 79 Company-owned restaurants in 12 states and an additional 19
franchised restaurants in eight states. The Company also owns and operates
two Roadhouse Grill restaurants, a Texas style steakhouse concept, in two
states. The Roadhouse Grill restaurants are operated under a consulting
agreement with Roadhouse Grill, Incorporated.
This press release contains forward-looking statements, including
statements about expected new restaurant openings for 1996. The Company's
ability to open new restaurants depends on a number of factors including
locating suitable sites, negotiating acceptable leases and land purchase
agreements and obtaining permits and approvals. A more complete discussion
of the various factors that could cause the Company to fail to meet its
expansion plans can be found at pages 10 and 11 of the Company's Quarterly
Report on Form 10-Q filed with the Securities and Exchange Commission on
June 10, 1996.
For more information contact:
Glenn E. Glasshagel, Chief Financial Officer,
HomeTown Buffet, Inc. (619) 546-9096
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HomeTown Buffet, Inc.
Second Quarter Press Release
Page 3.
<TABLE>
<CAPTION>
HomeTown Buffet, Inc. & Subsidiaries
Income Statement
(in thousands except store and per share data)
(Unaudited)
Twelve Weeks Ended Twenty-eight Weeks Ended
July 17, July 12, July 17, July 12,
1996 1995 1996 1995
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<S> <C> <C> <C> <C>
Total revenues $51,190 $34,815 $112,937 $73,430
Costs and expenses 43,889 29,854 97,870 63,554
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Gross profit 7,301 4,961 15,067 9,876
G&A Expenses 3,096 2,267 7,146 4,894
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Operating income 4,205 2,694 7,921 4,982
Interest and other income (expense) (661) (116) (1,452) (186)
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Income before taxes 3,544 2,578 6,469 4,796
Income taxes 1,418 954 2,588 1,775
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Net income $2,126 $1,624 $3,881 $ 3,021
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Earnings per share $0.18 $0.14 $0.32 $0.25
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Shares used in computing
net income per share 12,091 11,976 12,024 11,947
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Number of stores open at end of period 79 55
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Note 1
The estimated effective tax rate on corporate earnings for the second
quarter of 1996 was 40% compared to 37% for the same period in 1995
</TABLE>
