Englewood, Colo.-based upscale dining chain Champps Entertainment has posted earnings per share (EPS) of US$0.15 for its Q4 ended 30 June, compared with US$0.03 year on year.

Net income for the Q4 was US$1.92m versus US$316,000 in the comparable period a year ago. Total Q4 revenues increased 26.8% to US$41.92m versus US$33.06m for the Q4 of last fiscal year, but comparable same store sales fell 1% for the Q4. Food sales were modestly positive on a comparable base during the quarter. Liquor sales for the quarter fell 3.2%. A portion of the decline in liquor sales this quarter was the result of the strategic elimination of certain late night promotions in many of the restaurants.

Earnings for the FY ended 30 June were US$0.40 per diluted share on net income of US$5.13m compared with earnings of US$1.10 per diluted share on net income of US$13.54m for last fiscal year.

During the current FY, expenses related to predecessor companies of US$305,000 and a loss related to discontinued operations of US$153,000 were recorded, hitting earnings by US$0.04 per diluted share for the year. During the prior FY expenses related to predecessor companies of US$534,000, a loss related to discontinued operations of

US$77,000, and a benefit from recognition of a deferred tax asset of US$8.07m were recorded increasing earnings by US$0.60 per diluted share.

Preopening expenses for this fiscal year increased US$1.15m to US$2.62m or US$0.20 per diluted share versus US$1.47m or US$0.12 per diluted share for the prior fiscal year. General and administrative expenses were US$8.6m, or 5.4% of revenues for the current fiscal year compared with US$7,69m, or 5.8%, last fiscal year.

William H. Baumhauer, chairman, president and CEO, said: "We are pleased to report strong results for our Q4 allowing us to end our FY very positively. The impact of 11 September and the soft economy have made this past FY a difficult one in which to operate. We look forward to our new FY with optimism, as we evaluate our growth prospects and the strength of the Champps' concept.

"The uncertain economic outlook, however, must temper any optimism especially as it relates to consumer sentiment. We continue to be well positioned in the market place and anticipate opening ten new Champps restaurants this FY and twelve new Champps restaurants in fiscal 2004. We anticipate total revenues to range between US$191m and US$194m for FY 2003 and EPS between US$0.64 and US$0.68 for the FY assuming positive same store sales trends of 1% and depending on the timing of new restaurant openings during the FY. For the Q1 we are estimating revenues to range between US$41m and US$42m and EPS to range between US$0.07 and US$0.08."

Consoldiated statements of operations

(Dollars in thousands, except per share data)

                           Three Months Ended    Twelve Months Ended
                           30 June    1 July    30 June      1 July
                             2002      2001        2002        2001
                             ----      ----        ----        ----
Revenues
 Sales                    $ 41,740   $ 32,882    $157,889   $ 132,672
 Franchising and
  royalty, net                 177        183         648         644
                          --------   --------    --------   ---------
 Total revenues             41,917     33,065     158,537     133,316
                          --------   --------    --------   ---------
Costs and expenses
Restaurant operating expenses:
 Product costs              11,620      9,338      44,583      38,282
 Labor costs                13,562     10,372      51,112      41,916
 Other operating expenses    6,475      5,079      24,229      20,070
 Occupancy                   3,681      2,662      13,560      10,731
 Depreciation and
  amortization               1,715      1,402       6,435       5,517
                          --------   --------    --------   ---------
  Total restaurant
   operating expenses       37,053     28,853     139,919     116,516
Restaurant operating and
 franchise contribution      4,864      4,212      18,618      16,800
Preopening                     415      1,127       2,617       1,470
General and administrative
 expenses                    2,240      2,336       8,599       7,687
Expenses related to
 predecessor companies           -          -         305         534
                          --------   --------    --------   ---------
 Income from operations      2,209        749       7,097       7,109
Interest expense, net          210        433       1,601       1,388
                          --------   --------    --------   ---------
 Income from continuing
  operations                 1,999        316       5,496       5,721
Loss from discontinued
 operations, net of tax          -          -         153          77
                          --------   --------    --------   ---------
 Income before provision
  for income taxes           1,999        316       5,343       5,644
Provision (benefit)
 for income taxes               80          -         209      (7,893)
                          --------   --------    --------   ---------
 Net income               $  1,919   $    316    $  5,134   $  13,537
                          ========   ========    ========   =========
Basic income (loss)
per share:
 Income before
  discontinued operations $   0.16   $   0.03    $   0.43   $    1.15
 Loss from discontinued
  operations                     -          -       (0.01)      (0.01)
                          --------   --------    --------   ---------
  Net income              $   0.16   $   0.03    $   0.42   $    1.14
                          ========   ========    ========   =========
Diluted income (loss)
per share:
 Income before
  discontinued operations $   0.15   $   0.03    $   0.41   $    1.10
 Loss from discontinued
  operations                     -          -       (0.01)          -
                          --------   --------    --------   ---------
   Net income             $   0.15   $   0.03    $   0.40   $    1.10
                          ========   ========    ========   =========

Basic weighted average
 shares outstanding         12,169     11,985      12,104      11,871
Diluted weighted average
 shares outstanding         13,098     12,615      12,864      12,363


Supplemental Information --
Operating Expenses
(Stated as a percentage
 of sales)

Product costs                 27.9%      28.4%       28.2%       28.9%
Labor costs                   32.5%      31.5%       32.4%       31.6%
Other operating costs         15.5%      15.4%       15.3%       15.0%
Occupancy                      8.8%       8.1%        8.6%        8.1%
Depreciation and
 amortization                  4.1%       4.3%        4.1%        4.2%
                          --------   --------    --------   ---------
 Total restaurant
  contribution margin         11.2%      12.3%       11.4%       12.2%
                          ========   ========    ========   =========

 General & admin expenses
 (Stated as a %/revenues)      5.3%       7.1%        5.4%        5.8%
                          --------   --------    --------   ---------