BJ's Restaurants, Inc. (Nasdaq:BJRI) today reported financial
results for its fiscal 2015 first quarter that ended on Tuesday,
March 31, 2015.
First Quarter 2015 Highlights Compared to First Quarter
2014
- Total revenues increased 9.4% to $225.1 million
- Total restaurant operating weeks increased approximately
7%
- Comparable restaurant sales increased 3.2%
- Net income increased to $9.6 million from $4.7 million
- Diluted net income per share increased to $0.36 from $0.16
(first quarter 2014 diluted net income per share of $0.16 was
inclusive of a $0.04 diluted net income per share charge related to
shareholder settlement costs)
"The continued success from our sales driving initiatives
combined with our cost containment programs and efficiencies
derived from Project Q resulted in a solid start to fiscal 2015 and
record first quarter results," commented Greg Trojan, President and
CEO. "The 3.2% increase in first quarter comparable restaurant
sales is our third consecutive quarter of positive comparable sales
as our new menu offerings and food innovation combined with our
focus on affordability, speed and hospitality are being well
received by guests."
Trojan continued, "Importantly, our restaurant operators
continue improving the guest experience through Project Q while
simultaneously driving cost efficiencies. As a result, we
again achieved solid leverage on our positive comparable restaurant
sales and generated first quarter four-wall restaurant level
operating margins of 18.9%, marking a 180 basis point improvement
from the prior year's first quarter. In addition, we continue
to leverage our general and administrative expenses and
depreciation and amortization through our cost management
initiatives, new restaurant growth and lower depreciation from our
more cost-effective new restaurant prototype. This resulted in
significant growth in our consolidated income from operations
margin to 5.8%, representing a 300 basis point year-over-year
gain. We believe the strength of our model and operating
leverage position us well for continued financial growth in
2015."
In the fiscal 2015 first quarter, BJ's opened two new
restaurants in Nanuet, New York and Slidell, Louisiana, and in the
second fiscal quarter to date, the Company opened a new restaurant
in Albuquerque, New Mexico. Trojan added, "Our 2015
restaurant pipeline remains in excellent shape. We currently
have 12 new restaurants under construction and are on track to open
at least 15 new restaurants this year. As of this date, we
expect to open five new restaurants in the second quarter,
including the restaurant which recently opened in Albuquerque, New
Mexico, six new restaurants in the third quarter and two new
restaurants during the fourth quarter. At the same time, our
development team is building a solid pipeline for our fiscal 2016
and 2017 new restaurant openings and we remain committed to our
long term annual goal of a 10% increase in operating weeks through
new restaurant openings."
The Company repurchased and retired approximately 0.1 million
shares of its common stock for approximately $6.8 million during
the 2015 first quarter. Since the first share repurchase
authorization was approved in April 2014, the Company has
repurchased and retired approximately 3.0 million shares for
approximately $107 million. The Company has approximately $43
million remaining under its current $150 million share repurchase
authorization.
Investor Conference Call and Webcast
BJ's Restaurants, Inc. will conduct a conference call on its
first quarter 2015 earnings release today, April 23, 2015, at 2:00
p.m. Pacific Time (5:00 p.m. Eastern Time). Senior management
will discuss the financial results and host a question and answer
session. In addition, a live audio webcast of the call will be
accessible to the public on the "Investors" page of the Company's
website located at http://www.bjsrestaurants.com and a recording of
the webcast will be archived on the site for 30 days following the
live event. Please allow 15 minutes to register and download
and install any necessary software.
BJ's Restaurants, Inc. currently owns and operates 159 casual
dining restaurants under the BJ's Restaurant & Brewery®, BJ's
Restaurant & Brewhouse®, BJ's Pizza & Grill® and BJ's
Grill® brand names. BJ's Restaurants offer an innovative and
broad menu featuring award-winning, signature deep-dish pizza
complemented with generously portioned salads, appetizers,
sandwiches, soups, pastas, entrees and desserts, including the
Pizookie® dessert. Quality, flavor, value, moderate prices and
sincere service remain distinct attributes of the BJ's
experience. All restaurants feature BJ's critically acclaimed
proprietary craft beers, which are produced at several of the
Company's restaurant and brewery locations in addition to using
independent third party craft brewers. The Company's
restaurants are located in the states of Arizona, Arkansas,
California, Colorado, Florida, Indiana, Kansas, Kentucky,
Louisiana, Maryland, Nevada, New Mexico, New York, Ohio, Oklahoma,
Oregon, Texas, Virginia and Washington. Visit BJ's
Restaurants, Inc. on the Web at http://www.bjsrestaurants.com.
Certain statements in the preceding paragraphs and all other
statements that are not purely historical constitute
"forward-looking" statements for purposes of the Securities Act of
1933 and the Securities and Exchange Act of 1934, as amended, and
are intended to be covered by the safe harbors created
thereby. Such statements include, but are not limited to,
those regarding expected comparable restaurant sales and margin
growth in future periods, total potential domestic capacity, the
success of various sales-building and productivity initiatives,
future guest traffic trends, construction cost savings initiatives
and the number and timing of new restaurants expected to be opened
in future periods. These "forward-looking" statements involve
known and unknown risks, uncertainties and other factors which may
cause actual results to be materially different from those
projected or anticipated. Factors that might cause such
differences include, but are not limited to: (i) our ability to
manage an increasing number of new restaurant openings,
(ii) construction delays, (iii) labor shortages, (iv) increase
in minimum wage and other employment related costs, including the
potential impact of the Patient Protection and Affordable Care Act
on our operations, (v) the effect of credit and equity market
disruptions on our ability to finance our continued expansion on
acceptable terms, (vi) food quality and health concerns, (vii)
factors that impact California, where 63 of our current 159
restaurants are located, (viii) restaurant and brewery industry
competition, (ix) impact of certain brewery business
considerations, including without limitation, dependence upon
suppliers, third party contractors and related hazards, (x)
consumer spending trends in general for casual dining occasions,
(xi) potential uninsured losses and liabilities due to limitations
on insurance coverage, (xii) fluctuating commodity costs and
availability of food in general and certain raw materials related
to the brewing of our craft beers and energy, (xiii) trademark and
service-mark risks, (xiv) government regulations and licensing
costs, (xv) beer and liquor regulations, (xvi) loss of key
personnel, (xvii) inability to secure acceptable sites, (xviii)
legal proceedings, (xix) other general economic and regulatory
conditions and requirements, (xx) the success of our key
sales-building and related operational initiatives, and (xxi)
numerous other matters discussed in the Company's filings with the
Securities and Exchange Commission, including its recent reports on
Forms 10-K, 10-Q and 8-K. The "forward-looking" statements
contained in this press release are based on current assumptions
and expectations and, BJ's Restaurants, Inc. undertakes no
obligation to update or alter its "forward-looking" statements
whether as a result of new information, future events or
otherwise.
BJ's
Restaurants, Inc. |
Unaudited Consolidated
Statements of Income |
(Dollars in thousands
except for per share data) |
|
|
|
|
First Quarter
Ended |
|
|
March 31,
2015 |
April 1,
2014 |
|
Revenues |
$225,069 |
100.0% |
$205,822 |
100.0% |
|
Costs and expenses: |
|
|
|
|
|
Cost of sales |
56,171 |
25.0 |
51,187 |
24.9 |
|
Labor and benefits |
79,695 |
35.4 |
74,396 |
36.1 |
|
Occupancy and operating |
46,590 |
20.7 |
45,074 |
21.9 |
|
General and administrative |
13,493 |
6.0 |
12,826 |
6.2 |
|
Depreciation and
amortization |
14,361 |
6.4 |
13,452 |
6.5 |
|
Restaurant opening |
1,284 |
0.6 |
1,128 |
0.5 |
|
Loss on disposal of assets and
impairments |
383 |
0.2 |
422 |
0.2 |
|
Legal and other
settlements |
-- |
-- |
1,550 |
0.8 |
|
Total costs and expenses |
211,977 |
94.2 |
200,035 |
97.2 |
|
Income from operations |
13,092 |
5.8 |
5,787 |
2.8 |
|
|
|
|
|
|
|
Other income: |
|
|
|
|
|
Interest (expense) income,
net |
(241) |
(0.1) |
7 |
-- |
|
Other income, net |
336 |
0.1 |
386 |
0.2 |
|
Total other income |
95 |
-- |
393 |
0.2 |
|
Income before income taxes |
13,187 |
5.9 |
6,180 |
3.0 |
|
|
|
|
|
|
|
Income tax expense |
3,572 |
1.6 |
1,522 |
0.7 |
|
|
|
|
|
|
|
Net income |
$9,615 |
4.3% |
$4,658 |
2.3% |
|
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
Basic |
$0.37 |
|
$0.16 |
|
|
Diluted |
$0.36 |
|
$0.16 |
|
|
|
|
|
|
|
|
Weighted average number of shares
outstanding: |
|
|
|
|
|
Basic |
26,310 |
|
28,369 |
|
|
Diluted |
26,916 |
|
28,978 |
|
|
|
|
Percentages reflected above may
not reconcile due to rounding. |
|
|
BJ's
Restaurants, Inc. |
Selected Consolidated
Balance Sheet Information |
(Dollars in
thousands) |
|
March 31,
2015 (unaudited) |
December 30,
2014 (audited) |
Cash, cash equivalents and marketable
securities |
$ 25,961 |
$ 30,683 |
Total assets |
$ 643,441 |
$ 647,083 |
Total long-term debt, including current
portion |
$ 38,600 |
$ 58,000 |
Shareholders' equity |
$ 359,222 |
$ 348,689 |
|
BJ's Restaurants,
Inc. |
Unaudited Supplemental
Information |
(Dollars in
thousands) |
|
|
|
First Quarter
Ended |
|
March 31,
2015 |
April 1,
2014 |
Stock-based compensation
(1) |
|
|
|
|
Labor and benefits |
$ 339 |
0.2% |
$ 517 |
0.3% |
General and administrative |
920 |
0.4 |
725 |
0.4 |
Total stock-based compensation |
$ 1,259 |
0.6% |
$ 1,242 |
0.7% |
|
|
|
|
|
Operating Data |
|
|
|
|
Comparable restaurant sales % change |
3.2% |
|
(2.9%) |
|
Restaurants opened during period |
2 |
|
2 |
|
Restaurants open at period-end |
158 |
|
148 |
|
Restaurant operating weeks |
2,044 |
|
1,908 |
|
|
|
|
|
|
(1) Percentages represent percent
of total revenues.
Reconciliation of Selected GAAP Financial Measures to
Non-GAAP Adjusted Financial Measures
To supplement the consolidated financial statements presented in
accordance with U.S. generally accepted accounting principles
("GAAP"), the Company has included the following non-GAAP adjusted
financial measures in this press release or in the webcast to
discuss the Company's financial results for first quarter 2015
which may be accessed via the Company's website at
http://www.bjsrestaurants.com: (i) non-GAAP adjusted net
income and (ii) non-GAAP adjusted diluted net income per
share. Each of these non-GAAP adjusted financial measures is
adjusted from results based on GAAP to exclude certain
expenses. As a general matter, the Company uses these non-GAAP
adjusted financial measures in addition to and in conjunction with
results presented in accordance with GAAP to help analyze the
performance of its core business. The Company believes that
such non-GAAP adjusted financial information is provided by its
competitors and such information is used by analysts and others in
the investment community to analyze the Company's results and in
formulating estimates of future performance and that failure to
report these non-GAAP adjusted measures could result in confusion
among analysts and others and a misplaced perception that the
Company's results have underperformed or exceeded expectations.
These non-GAAP adjusted financial measures reflect an additional
way of viewing aspects of the Company's operations that, when
viewed with the GAAP results and the reconciliations to
corresponding GAAP financial measures, provide a more complete
understanding of the Company's results of operations and the
factors and trends affecting the Company's business. However,
these non-GAAP adjusted financial measures should be considered as
a supplement to, and not as a substitute for, or superior to, the
corresponding measures calculated in accordance with GAAP.
For the first quarter of fiscal 2014, non-GAAP adjusted net
income and non-GAAP adjusted diluted net income per share exclude
professional fees incurred in connection with the shareholder
settlement agreement announced on April 22, 2014.
|
|
Reconciliation of
Non-GAAP Adjusted Financial Measures |
|
(Unaudited, dollars in
thousands except for per share data) |
|
|
|
|
First Quarter
Ended |
|
March 31,
2015 |
April 1,
2014 |
|
$ |
% |
Per Share |
$ |
% |
Per
Share |
Net income & diluted net income per
share, as reported |
$9,615 |
4.3% |
$0.36 |
$4,658 |
2.3% |
$0.16 |
Shareholder settlement costs
(1) |
-- |
-- |
-- |
1,550 |
0.8 |
0.05 |
Tax effect -- shareholder
settlement costs (2) |
-- |
-- |
-- |
(381) |
(0.2) |
(0.1) |
Non-GAAP adjusted net income & diluted
net income per share |
$9,615 |
4.3% |
$0.36 |
$5,827 |
2.8% |
$0.20 |
|
|
Per share amounts and
percentages reflected above may not reconcile due to rounding.
Percentages represent percent of total revenues.
|
(1) Included in legal and other
settlements.
(2) The tax effect is based on
the Company's effective tax rate of 24.6% for the first quarter
2014.
CONTACT: For further information, please contact
Greg Levin
of BJ's Restaurants, Inc. at (714) 500-2400
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