CEC Entertainment Inc., parent company of Chuck E. Cheese's, announced financial results for the first quarter ended April 3.
Total revenues for the quarter were up 4.1 percent to $256.4 million from $246.3 million in Q1 '10. The increase was primarily attributed to a weighted average company-owned store increase of approximately eight units, as compared to the same period in 2010.
Additionally, first quarter comparable store sales were up 1.1 percent.
Net income for the first quarter ended at $34.1 million compared to net income of $33.9 million in Q1 '10.
Diluted earnings per share was $1.71 for the first quarter of 2011 compared to diluted earnings per share of $1.53 in the same period last year, an increase of 11.8 percent. The increase was favorably impacted by the repurchase of 2.8 million shares of stock since the first quarter of 2010.
"Our financial performance during the first quarter of 2011, including a comparable store sales increase of 1.1 percent and operating cash flow of $88.5 million, reflects the strength of our brand and the quality implementation of our strategies. Our significant operating cash flow enables us to grow our concept with new stores, execute a strong existing store capital plan that will impact approximately 200 stores this year, and continue to return a significant amount of capital to our shareholders in the form of share repurchases and cash dividends," said Michael Magusiak, president and CEO.
Based on its current estimates, the company is projecting fiscal year 2011 diluted earnings per share to be in a range of $3.00 to $3.10. This guidance incorporates the following assumptions for the 2011 fiscal year:
- Comparable store sales up 1 percent to 2 percent;
- Five additional company-owned stores, inclusive of three relocations;
- Capital expenditures will range from $92.0 million to $93.0 million, impacting approximately 200 stores and the development of approximately five company-owned stores, inclusive of three relocations;
- Intention to repurchase company common stock on an opportunistic basis; and
- Two additional quarterly dividend payments during fiscal 2011.
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