Source: CEC Entertainment | Released May 2, 2013
IRVING, Texas -- (BUSINESS WIRE) -- May 2, 2013 -- CEC Entertainment Inc. (NYSE: CEC) today announced its financial results for its first quarter, ended March 31, 2013. Total revenues for the first quarter of 2013 increased 3.4%, or $8.5 million, to $255.3 million from $246.8 million for the first quarter of 2012. The increase primarily related to a 1.6% increase in comparable store sales, as well as additional revenue from six net new stores opened since the first quarter of 2012.
Net income for the first quarter ended March 31, 2013, increased to $33.3 million compared to $32.3 million for the first quarter of 2012. Diluted earnings per share for the first quarter of 2013 was$1.90 compared to diluted earnings per share of $1.81 for the first quarter of 2012. We believe that first quarter 2013 diluted earnings per share benefited by $0.04 as a result of our repurchase of 718,816 shares of our common stock since the beginning of the first quarter of 2012 through the end of the first quarter of 2013.
On April 30, 2013, the Company’s Board of Directors declared a cash dividend of $0.24 per share. This cash dividend is scheduled to be paid on July 2, 2013 to stockholders of record as ofJune 6, 2013.
The Company also announced that on April 30, 2013, our Board of Directors authorized the purchase of up to an additional $100 million of common stock under its stock repurchase program. With this increase, the Company currently has authorization to purchase approximately $137.0 million of its common stock.
Michael Magusiak, president and chief executive officer, stated, "During the first quarter of 2013, our new value pricing, marketing and operational strategies were fully implemented for the first time. While we recognize that considerable uncertainty remains in the U.S. economy and that consumers continue to experience various financial pressures, we are encouraged by the 1.6% increase in comparable store sales this quarter. We are fully committed to our strategic plan, and to returning capital to our shareholders as evidenced by our recently announced quarterly cash dividend of $0.24 per share and an additional authorization to repurchase $100 million under our stock repurchase plan."
We are projecting comparable store sales of 1.5% to 2.5% for fiscal 2013 and diluted earnings per share to be in a range of $2.80 to $2.95, including the following assumptions:
» 12-15 new Company-owned stores, including one store relocation;
» Average cheese block prices in the range of $1.75 to $1.85 per pound;
» Depreciation and amortization to remain relatively flat;
» Rent expense to increase approximately 4-5% from the prior year;
» Advertising expense to increase approximately $6 million from the prior year;
» Capital expenditures to range from approximately $82 to $84 million; and
» Payment of four quarterly dividends totaling approximately $17 million.
Non-GAAP Financial Measures
The Company reports and discusses its operating results using financial measures consistent with accounting principles generally accepted in the United States ("GAAP"). From time to time in the course of financial presentations, earnings conference calls or otherwise, the Company may disclose certain non-GAAP financial measures such as Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") and Free Cash Flow. The non-GAAP financial measures presented in this earnings release should not be viewed as alternatives or substitutes for the Company's reported GAAP results. A reconciliation of the most directly comparable GAAP financial measure to EBITDA and Free Cash Flow is set forth in a table accompanying this release.
See CEC's Consolidated Statements of Earnings
About CEC Entertainment Inc.
For more than 30 years, CEC Entertainment has served as the nationally recognized leader in family dining and entertainment and the place Where a Kid can be a Kid®. The Company and its franchisees operate a system of 566 Chuck E. Cheese’s stores located in 47 states and eight foreign countries and territories. Currently, 515 locations in the United States and Canada are owned and operated by the Company. CEC Entertainment, Inc. and its franchises have the common goal of creating lifelong memories for families through fun, food, and play. Each Chuck E. Cheese’s features musical and comic robotic entertainment, games, rides, and play areas, as well as a variety of dining options including pizzas, sandwiches, wings, appetizers, a salad bar, and desserts. Committed to providing a fun, safe environment, Chuck E. Cheese’s helps protect families through industry-leading programs such as Kid Check®.
Chuck E. Cheese’s aims to promote positive, lifelong memories inside and outside of its stores. In addition to providing a fun entertainment experience for millions of families across the world, Chuck E. Cheese’s has donated more than $10 million to schools and non-profit institutions through its fundraising programs. For more information, see the Company's website at www.chuckecheese.com.
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