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CEC Entertainment Inc., parent company of Chuck E. Cheese's, has announced its financial results for the third quarter ended Oct. 2, 2011, which included a 3.5 percent decrease in total revenues compared to the same period last year.
CEC's Q3 revenues dropped $7.1 million to $200 million, down from $207.1 million in Q3 2010.
Also, comparable store sales decreased 6.3 percent for Q3 2011 as compared to Q3 2010.
Net income was down to $11.7 million as compared to $12.6 million for Q3 of 2010.
Diluted earnings per share for the third quarter of 2011 were $0.62 as compared to diluted earnings per share of $0.60 for the same period last year. The increase in diluted earnings per share benefited from, among other things, the company's repurchase of approximately 2.8 million shares of its common stock since the beginning of the third quarter of 2010.
Year-to-date results were a bit more positive for the company. For the nine months ended Oct. 2, 2011, total revenues increased 1.3 percent, or $8.1 million, to $642.6 million as compared to $634.5 million for the nine months ended Oct. 3, 2010.
Comparable store sales decreased 1.5 percent for the 9-month period as compared to 2010. The increase in total revenues was primarily related to a weighted average net increase of seven stores, which was offset by lower comparable store sales.
Net income for the 9-month period increased 2.0 percent, or $1.0 million, to $52.2 million as compared to $51.2 million for the nine months ended Oct. 3, 2010.
Year-to-date diluted earnings per share were $2.70 as compared to diluted earnings per share of $2.38 for the nine months ended Oct. 3, 2010.
On Oct. 28, the company amended and restated its revolving credit facility which, among other things, extended the maturity date to Oct. 28, 2016.
On Nov. 1, 2011, the company's Board of Directors approved a 10 percent increase in the CEC Entertainment's quarterly cash dividend to $0.22 per share. This cash dividend will be paid Jan. 5, 2012, to stockholders of record as of Dec. 1, 2011.
Through the third quarter of 2011, CEC Entertainment generated $154.7 million of operating cash flow. Of that, $68.2 million was used to complete 121 existing store enhancements, including expansions, remodels and game enhancements, as well as the opening of two new stores.
"Despite the challenging economic times, our concept remains well-positioned in the marketplace and we continue our focus on enhancing long-term shareholder value by concentrating our efforts on growing our concept both domestically and internationally," said Michael Magusiak, president and CEO. "Our healthy cash flow coupled with the renewal of our credit facility will enable us to continue to improve our restaurant/entertainment product and return capital to shareholders in the form of share repurchases and the payment of cash dividends. We believe that our growth strategies combined with our share repurchase program will enhance long-term shareholder value."
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