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CEC Entertainment Q1 2008 Earnings Call Transcript

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2008-04-22 23:11:07.0

Tags: CEC Entertainment Inc.

Question-and-Answer Session

Operator

(Operator Instructions) We’ll begin today’s question with a question from Robert Derrington representing Morgan, Keegan.

Robert Derrington - Morgan, Keegan & Company, Inc.

Thank you. Eye-popping numbers -- congrats, guys. I’ve got to ask the question and I guess I’ll direct it to you, Mike, if you could help us; you know, obviously this -- you know, the weather thing, we are constantly asked how much of the business is affected by that. But you’ve got so many positive things going at the restaurant level, is there any way to separate out the impact of the business between all those things?

Michael H. Magusiak

It’s very hard, Bob. You know, if we go back to our last conference call, we thought that weather may have somewhat favorably impacted comparable store sales. After that earnings release, there was a few weekends that we believed that it probably hurt some of our sales.

With that being said, net net it may have helped the first quarter but as we look back on the year now through 16 weeks, we really believe that the execution of our strategies and the new sales strategies that we’ve shared with you both last conference call and this conference call is what is really driving comparable stores sales.

Robert Derrington - Morgan, Keegan & Company, Inc.

Sure. Mike, as you look forward, do we essentially have all of the calendar mismatch with Easter and spring breaks, are those essentially behind us after these first three weeks?

Michael H. Magusiak

Yes, we believe that they are, Bob.

Robert Derrington - Morgan, Keegan & Company, Inc.

Okay, and then Chris, there are a couple of statistics that were mentioned that may have gotten wrong and one of those was talking about the advertising spend year over year. And Mike, you may have mentioned it. I think you mentioned 10% more impressions in the first quarter versus last year, but I got the dollar amount incorrect. I think you mentioned the company spent $10.1 million on advertising this year and what was it last year?

Michael H. Magusiak

You know, I misspoke, Bob. We need to work on our presentation skills. We’ve been working more on sales. But the correct dollars -- Chris, do you have it there? Yeah, this year we spent $10.1 million compared to 8.4. I misspoke on last year’s.

Robert Derrington - Morgan, Keegan & Company, Inc.

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