Bojangles’, Inc. (Bojangles’) (NASDAQ:BOJA) today announced
financial results for the 13-week second fiscal quarter ended June
25, 2017. Bojangles’ also revised its annual guidance for the
53-week fiscal year 2017 ending on December 31, 2017.
Highlights for the Second Fiscal Quarter
2017 Compared to the Second Fiscal Quarter 2016
- Total revenues increased 2.1% to $134.4 million from $131.6
million;
- System-wide comparable restaurant sales decreased 1.4%, while
company-operated comparable restaurant sales decreased 3.3% and
franchised comparable restaurant sales decreased 0.1%;
- 14 system-wide restaurants were opened – 7 company-operated
restaurants and 7 franchised restaurants – and 5 company-operated
restaurants were refranchised;
- Net Income was $8.6 million as compared to $10.0 million in the
prior year fiscal quarter;
- Diluted Net Income per Share was $0.22 as compared to $0.27 in
the prior year fiscal quarter;
- Adjusted Net Income* was $9.0 million as compared to $10.1
million in the prior year fiscal quarter;
- Adjusted Diluted Net Income per Share* was $0.23 as compared to
$0.27 in the prior year fiscal quarter; and
- Adjusted EBITDA* was $19.5 million as compared to $23.2 million
in the prior year fiscal quarter.
* Descriptions of Adjusted Net Income, Adjusted
Diluted Net Income per Share, Adjusted EBITDA and other non-GAAP
financial measures are provided in “Use and Definition of Non-GAAP
Measures,” and reconciliations to GAAP figures are provided in the
tables at the end of this release.
“The continuing challenging conditions in the
limited service restaurant industry require navigating with
experience, a clearly defined plan and a willingness to make
adjustments when necessary to stay competitive and relevant. We
believe in a steady, deliberate, and measured approach to
expansion, ensuring operational excellence, integrating technology,
and creating the best Bojangles’® experience possible,” said
Bojangles’ President and CEO Clifton Rutledge.
“We are expanding our footprint into adjacent
markets and are pleased to have recently signed several franchise
development agreements. Franchisees will continue to lead our
expansion efforts as we intend to open fewer new company-operated
restaurants on a go-forward basis,” concluded Mr. Rutledge.
Second Fiscal Quarter 2017 Financial
Review
System-wide comparable restaurant sales
decreased 1.4%, consisting of a 3.3% decrease in company-operated
comparable restaurant sales and a 0.1% decrease in franchised
comparable restaurant sales. The comparable restaurant sales
decrease at company-operated restaurants was composed of a decrease
in transactions, partially offset by increases in price and
mix.
Total revenues increased 2.1% to $134.4 million
in the second fiscal quarter of 2017 from $131.6 million in the
prior year fiscal quarter. The increase was primarily due to a net
additional 51 system-wide restaurants at June 25, 2017 compared to
June 26, 2016, partially offset by comparable restaurant sales
declines at our company-operated and franchised restaurants.
Company restaurant revenues increased 1.9% to
$127.1 million in the second fiscal quarter of 2017 from $124.7
million in the prior year fiscal quarter. Franchise royalty
revenues increased 5.4% to $7.0 million in the second fiscal
quarter of 2017 from $6.6 million in the prior year fiscal
quarter.
Restaurant contribution, a non-GAAP measure,
decreased 16.9% to $20.4 million in the second fiscal quarter of
2017 from $24.5 million in the prior year fiscal quarter. As a
percentage of company restaurant revenues, restaurant contribution
margin, a non-GAAP measure, decreased to 16.0% in the second fiscal
quarter of 2017 from 19.7% in the prior year fiscal quarter.
General and administrative expenses increased
4.4% to $9.8 million in the second fiscal quarter of 2017 from $9.4
million in the prior year fiscal quarter.
Net Income decreased 14.1% to $8.6 million in
the second fiscal quarter of 2017 compared to $10.0 million in the
prior year fiscal quarter. Diluted Net Income per Share decreased
18.5% to $0.22 in the second fiscal quarter of 2017 compared to
$0.27 in the prior year fiscal quarter.
Adjusted Net Income, a non-GAAP measure,
decreased 10.7% to $9.0 million in the second fiscal quarter of
2017 compared to $10.1 million in the prior year fiscal quarter.
Adjusted Diluted Net Income per Share decreased 14.8% to $0.23 in
the second fiscal quarter of 2017 compared to $0.27 in the prior
year fiscal quarter.
Adjusted EBITDA, a non-GAAP measure, decreased
15.8% to $19.5 million in the second fiscal quarter of 2017 from
$23.2 million in the prior year fiscal quarter.
Fiscal Year 2017 Guidance
Bojangles’ has revised its annual outlook for
the 53-week period ending on December 31, 2017 based upon
performance to date and updated expectations for the remainder of
the fiscal year:
- Total revenues of $549.0 million to $553.0 million (previously
$560.0 million to $569.0 million);
- System-wide comparable restaurant sales of negative low-single
digits (previously negative low-single digits to flat);
- The opening of 53 to 56 system-wide restaurants (previously 57
to 62);-- 25 to 26 company-operated restaurants (previously 27 to
28);-- 28 to 30 franchised restaurants (previously 30 to 34);
- Net increase of 45 to 48 system-wide restaurants (previously 49
to 54);-- Net increase of 16 to 17 company-operated restaurants
(previously 19 to 20), which includes the impact of our
refranchising of five company-operated restaurants which took place
on April 24, 2017;-- Net increase of 29 to 31 franchised
restaurants (previously 30 to 34), which includes the impact of our
refranchising of five company-operated restaurants which took place
on April 24, 2017;
- Restaurant contribution margin of 16.0% to 16.3% (previously
17.0% to 17.5%);
- General and administrative expenses of $40.0 million to $41.0
million (previously $40.5 million to $41.5 million);
- Adjusted Diluted Net Income per Share of $0.81 to $0.84
(previously $0.87 to $0.93); and
- Adjusted EBITDA of $78.0 million to $80.0 million (previously
$84.0 million to $89.0 million).
We have not reconciled guidance for Adjusted
Diluted Net Income per Share or Adjusted EBITDA to the
corresponding GAAP financial measures because we do not provide
guidance for the various reconciling items. We are unable to
provide guidance for these reconciling items because we cannot
determine their probable significance, as certain items are outside
of our control and cannot be reasonably predicted due to the fact
that these items could vary significantly from period to period.
Accordingly, reconciliations to the corresponding GAAP financial
measures are not available without unreasonable effort.
Conference Call and Webcast
TodayBojangles’ will host a conference call and webcast to
discuss the second fiscal quarter 2017 results as well as fiscal
year 2017 guidance today at 5:00 p.m. Eastern Time. The conference
call dial-in number is 201-493-6725. A telephone replay will be
available through Sunday, August 27, 2017 and may be accessed by
dialing 412-317-6671. The conference ID is 13663887.
The conference call will also be webcast live
and later archived on the Investors section of our website at
www.bojangles.com.
About Bojangles’,
Inc.Bojangles’, Inc. is a highly differentiated and
growing restaurant operator and franchisor dedicated to serving
customers high-quality, craveable food made from our Southern
recipes. Founded in 1977 in Charlotte, N.C., Bojangles’ serves menu
items such as delicious, famous chicken, made-from-scratch
buttermilk biscuits, flavorful fixin’s and Legendary Iced Tea®. At
June 25, 2017, Bojangles’ had 740 system-wide restaurants, of which
314 were company-operated and 426 were franchised restaurants,
primarily located in the Southeastern United States. For more
information, visit www.bojangles.com or follow Bojangles’ on
Facebook and Twitter.
Note Regarding Comparable Restaurant
SalesComparable restaurant sales reflects the change in
year-over-year sales for the comparable restaurant base (as
applicable, system-wide, franchised or company-operated
restaurants). A restaurant enters our comparable restaurant base
the first full day of the month after being open for 15 months
using a mid-month convention. Refranchised restaurants are excluded
from our comparable restaurant base for the twelve-month period
following the date of the refranchising. If a company-operated
restaurant is temporarily closed for a full calendar week due to
items such as a remodel, scrape and rebuild, casualty event, severe
weather conditions or any other short-term closure, it is removed
from the comparable restaurant sales calculations for such period
it is temporarily closed. If a franchised restaurant is temporarily
closed for a full calendar week due to items such as a remodel,
scrape and rebuild, casualty event, severe weather conditions or
any other short-term closure, it is removed from the comparable
restaurant sales calculations for the entire month(s) impacted by
the temporary closure.
Use and Definition of Non-GAAP
MeasuresWe utilize certain non-GAAP measures when
assessing the operational strength and the performance of our
business. We believe these non-GAAP measures assist our board of
directors, management and investors in comparing our operating
performance, on a consistent basis from period to period, by
isolating the effects of certain items that vary from period to
period without any correlation to core operating performance or
that vary significantly among similar companies. Bojangles’
cautions that non-GAAP measures should be considered in addition
to, but not as a substitute for, reported GAAP results.
Restaurant contribution is defined as company
restaurant revenues less food and supplies costs, restaurant labor
costs and operating costs, as identified by the reconciliation
table below. Restaurant contribution margin is defined as
restaurant contribution as a percentage of company restaurant
revenues. Restaurant contribution and restaurant contribution
margin are supplemental measures of operating performance of our
company-operated restaurants and our calculations thereof may not
be comparable to those reported by other companies. Restaurant
contribution and restaurant contribution margin have limitations as
analytical tools and should not be considered in isolation or as
substitutes for analysis of our results as reported under GAAP.
Included with the reconciliations to GAAP figures provided in the
tables at the end of this release is a reconciliation of our
restaurant contribution to the line item on the condensed
consolidated statements of operations entitled “Company restaurant
revenues,” which we believe is the most directly comparable GAAP
measure on our condensed consolidated statements of operations.
Adjusted Net Income represents company net
income before items that we do not consider representative of our
ongoing operating performance as identified in the reconciliation
table below. Adjusted Diluted Net Income per Share represents
company diluted net income per share before items that we do not
consider representative of our ongoing operating performance as
identified in the reconciliation table below.
EBITDA represents company net income before
interest expense (net of interest income), provision for income
taxes and depreciation and amortization. Adjusted EBITDA represents
company net income before interest expense (net of interest
income), provision for income taxes, depreciation and amortization,
items that we do not consider representative of our ongoing
operating performance and certain non-cash items, as identified in
the reconciliation table below.
Adjusted Net Income, Adjusted Diluted Net Income
per Share, EBITDA and Adjusted EBITDA are supplemental measures of
our performance that are neither required by, nor presented in
accordance with, GAAP. Adjusted Net Income, Adjusted Diluted Net
Income per Share, EBITDA and Adjusted EBITDA are not measurements
of our financial performance under GAAP and should not be
considered as alternatives to net income, operating income or any
other performance measures derived in accordance with GAAP or as
alternatives to cash flow from operating activities as a measure of
our liquidity. Adjusted Net Income, Adjusted Diluted Net Income per
Share, EBITDA and Adjusted EBITDA have limitations as analytical
tools, and should not be considered in isolation, or as substitutes
for analysis of our results as reported under GAAP. In addition, in
evaluating Adjusted Net Income, Adjusted Diluted Net Income per
Share, EBITDA and Adjusted EBITDA, you should be aware that in the
future we will incur expenses or charges such as those added back
to calculate Adjusted Net Income, Adjusted Diluted Net Income per
Share, EBITDA and Adjusted EBITDA.
Forward-Looking StatementsThis
release contains forward-looking statements. All statements other
than statements of historical or current facts included in this
release are forward-looking statements. Forward-looking statements
discuss our current expectations, projections and guidance relating
to our financial condition, results of operations, plans,
objectives, future performance and business. These statements may
be preceded by, followed by or include the words “aim,”
“anticipate,” “believe,” “estimate,” “expect,” “forecast,”
“intend,” “outlook,” “plan,” “potential,” “project,” “projection,”
“seek,” “may,” “could,” “would,” “will,” “should,” “can,” “can
have,” “likely,” the negatives thereof and other words and terms of
similar meaning.
Forward-looking statements are inherently
subject to risks, uncertainties and assumptions; they are not
guarantees of performance. Actual results may differ materially
from these expectations due to risks relating to, among other
risks, our vulnerability to changes in consumer preferences and
economic conditions; our ability to open restaurants in new and
existing markets and expand our franchise system; our ability to
generate comparable restaurant sales growth; financial or other
difficulties, which could cause our restaurants and our
franchisees’ restaurants to close; our ability to generate
increased sales or profits from new menu items, advertising
campaigns, changes in discounting strategy, technology initiatives
or restaurant designs and remodels; cancellation of or delay in
anticipated future restaurant openings; our reliance on, limited
degree of control over and potential responsibility for, our
franchisees; increases in the cost of chicken, pork, dairy, wheat,
corn and other products; our ability to compete successfully with
other quick-service and fast-casual restaurants; our vulnerability
to conditions in the Southeastern United States; negative
publicity, whether or not valid; concerns about food safety and
quality and about food-borne illnesses, including adverse public
perception due to the occurrence of avian flu, swine flu or other
food-borne illnesses, such as salmonella, E. coli, or others;
changes in employment and labor laws; labor shortages and increases
in labor costs; and our dependence upon frequent and timely
deliveries of restaurant food and other supplies. For further
details and discussion of these and other risks and uncertainties,
see our Annual Report on Form 10-K for the fiscal year ended
December 25, 2016, which was filed with the Securities and Exchange
Commission on March 7, 2017, and which is available at www.sec.gov.
You should not place undue reliance on these statements. We have
based these forward-looking statements on our current expectations
and projections about future events. Although we believe that our
assumptions made in connection with the forward-looking statements
are reasonable, we cannot assure you that the assumptions and
expectations will prove to be correct.
All forward-looking statements are expressly
qualified in their entirety by the foregoing cautionary statements.
In addition, all forward-looking statements speak only as of the
date of this earnings release. We undertake no obligation to update
or revise publicly any forward-looking statements, whether as a
result of new information, future events or otherwise other than as
required under the federal securities laws.
|
|
BOJANGLES’, INC. AND
SUBSIDIARIES |
Unaudited Condensed Consolidated Balance
Sheets |
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
June 25,
2017 |
|
December 25,
2016 |
Current
assets: |
|
|
|
|
|
|
Cash and
cash equivalents |
$ |
14,765 |
|
13,898 |
|
Accounts
and vendor receivables, net |
|
6,252 |
|
5,421 |
|
Accounts
receivable, related parties, net |
|
410 |
|
386 |
|
Inventories, net |
|
3,290 |
|
3,326 |
|
Other
current assets |
|
5,269 |
|
3,033 |
|
|
|
|
|
Total
current assets |
|
29,986 |
|
26,064 |
|
Property
and equipment, net |
|
55,300 |
|
52,275 |
|
Goodwill |
|
|
|
161,140 |
|
161,140 |
|
Brand |
|
|
|
|
290,500 |
|
290,500 |
|
Franchise
rights, net |
|
23,695 |
|
24,243 |
|
Favorable
leases, net |
|
826 |
|
981 |
|
Other
noncurrent assets |
|
3,989 |
|
4,569 |
|
|
|
|
|
Total
assets |
$ |
565,436 |
|
559,772 |
Liabilities and Stockholders’
Equity |
|
|
|
|
Current
liabilities: |
|
|
|
|
|
Accounts
payable |
$ |
11,505 |
|
16,818 |
|
Accrued
expenses |
|
23,329 |
|
17,940 |
|
Current
maturities of long-term debt |
|
— |
|
2,132 |
|
Current
maturities of capital lease obligations |
|
7,895 |
|
7,299 |
|
Other
current liabilities |
|
4,798 |
|
4,390 |
|
|
|
|
|
Total
current liabilities |
|
47,527 |
|
48,579 |
|
Long-term
debt, less current maturities and deferred debt issuance costs,
net |
|
141,924 |
|
153,630 |
|
Deferred
income taxes |
|
111,190 |
|
111,312 |
|
Capital
lease obligations, less current maturities |
|
22,887 |
|
22,524 |
|
Other
noncurrent liabilities |
|
13,267 |
|
12,937 |
|
|
|
|
|
Total
liabilities |
|
336,795 |
|
348,982 |
Stockholders’ equity: |
|
|
|
|
|
Preferred
stock |
|
— |
|
— |
|
Common
stock |
|
368 |
|
365 |
|
Additional
paid-in capital |
|
126,412 |
|
124,802 |
|
Retained
earnings |
|
101,611 |
|
85,377 |
|
Accumulated
other comprehensive income |
|
250 |
|
246 |
|
|
|
|
|
Total
stockholders’ equity |
|
228,641 |
|
210,790 |
|
|
|
|
|
Total
liabilities and stockholders’ equity |
$ |
565,436 |
|
559,772 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOJANGLES’, INC. AND
SUBSIDIARIES |
Unaudited Condensed Consolidated Statements of
Operations |
(in thousands, except per share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended |
|
|
Twenty-Six Weeks Ended |
|
|
|
|
|
|
|
|
June 25,
2017 |
|
June 26,
2016 |
|
|
June 25,
2017 |
|
June 26,
2016 |
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Company
restaurant revenues |
$ |
127,058 |
|
|
124,674 |
|
|
|
251,841 |
|
|
246,088 |
|
|
Franchise
royalty revenues |
|
6,978 |
|
|
6,621 |
|
|
|
13,491 |
|
|
12,793 |
|
|
Other
franchise revenues |
|
338 |
|
|
300 |
|
|
|
538 |
|
|
370 |
|
|
|
|
|
|
Total
revenues |
|
134,374 |
|
|
131,595 |
|
|
|
265,870 |
|
|
259,251 |
|
Company
restaurant operating expenses: |
|
|
|
|
|
|
|
|
|
|
Food and
supplies costs |
|
39,998 |
|
|
39,020 |
|
|
|
78,683 |
|
|
77,541 |
|
|
Restaurant
labor costs |
|
36,937 |
|
|
34,525 |
|
|
|
73,284 |
|
|
67,861 |
|
|
Operating
costs |
|
29,741 |
|
|
26,607 |
|
|
|
59,432 |
|
|
55,020 |
|
|
Depreciation and amortization |
|
3,374 |
|
|
3,124 |
|
|
|
6,581 |
|
|
6,207 |
|
|
|
|
|
|
Total
Company restaurant operating expenses |
|
110,050 |
|
|
103,276 |
|
|
|
217,980 |
|
|
206,629 |
|
|
|
|
|
|
Operating
income before other operating expenses |
|
24,324 |
|
|
28,319 |
|
|
|
47,890 |
|
|
52,622 |
|
Other
operating expenses: |
|
|
|
|
|
|
|
|
|
|
General and
administrative |
|
9,817 |
|
|
9,402 |
|
|
|
18,770 |
|
|
18,912 |
|
|
Depreciation and amortization |
|
753 |
|
|
716 |
|
|
|
1,478 |
|
|
1,433 |
|
|
Impairment |
|
|
700 |
|
|
187 |
|
|
|
996 |
|
|
389 |
|
|
(Gain) loss
on disposal of property and equipment and other |
|
(125 |
) |
|
10 |
|
|
|
(104 |
) |
|
(189 |
) |
|
|
|
|
|
Total other
operating expenses |
|
11,145 |
|
|
10,315 |
|
|
|
21,140 |
|
|
20,545 |
|
|
|
|
|
|
Operating
income |
|
13,179 |
|
|
18,004 |
|
|
|
26,750 |
|
|
32,077 |
|
Amortization of deferred debt issuance costs |
|
(176 |
) |
|
(222 |
) |
|
|
(294 |
) |
|
(369 |
) |
Interest
income |
|
|
12 |
|
|
2 |
|
|
|
13 |
|
|
3 |
|
Interest
expense |
|
(1,614 |
) |
|
(1,937 |
) |
|
|
(3,281 |
) |
|
(3,962 |
) |
|
|
|
|
|
Income
before income taxes |
|
11,401 |
|
|
15,847 |
|
|
|
23,188 |
|
|
27,749 |
|
Income
taxes |
|
|
2,784 |
|
|
5,816 |
|
|
|
6,954 |
|
|
9,874 |
|
|
|
|
|
|
Net
income |
$ |
8,617 |
|
|
10,031 |
|
|
|
16,234 |
|
|
17,875 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.23 |
|
|
0.28 |
|
|
|
0.44 |
|
|
0.49 |
|
|
|
|
|
|
Diluted |
$ |
0.22 |
|
|
0.27 |
|
|
|
0.42 |
|
|
0.48 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares used in computing net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
36,701 |
|
|
36,207 |
|
|
|
36,634 |
|
|
36,115 |
|
|
|
|
|
|
Diluted |
|
38,588 |
|
|
37,592 |
|
|
|
38,598 |
|
|
37,517 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOJANGLES’, INC. AND
SUBSIDIARIES |
|
Unaudited Condensed Consolidated Statements of
Cash Flows |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twenty-Six Weeks Ended |
|
|
|
|
|
|
|
|
|
|
June 25,
2017 |
|
June 26,
2016 |
|
Cash flows
from operating activities: |
|
|
|
|
|
|
|
Net
income |
|
|
$ |
16,234 |
|
|
17,875 |
|
|
|
Adjustments
to reconcile net income to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
|
Deferred
income tax benefit |
|
|
(125 |
) |
|
(775 |
) |
|
|
|
|
Depreciation and amortization |
|
|
8,059 |
|
|
7,640 |
|
|
|
|
|
Amortization of deferred debt issuance costs |
|
|
294 |
|
|
369 |
|
|
|
|
|
Impairment |
|
|
996 |
|
|
389 |
|
|
|
|
|
Gain on
disposal of property and equipment and other |
|
|
(104 |
) |
|
(189 |
) |
|
|
|
|
Provision
(benefit) for doubtful accounts |
|
|
16 |
|
|
(138 |
) |
|
|
|
|
(Benefit)
provision for inventory spoilage |
|
|
(2 |
) |
|
3 |
|
|
|
|
|
Benefit for
closed stores |
|
|
— |
|
|
(51 |
) |
|
|
|
|
Stock-based
compensation |
|
|
681 |
|
|
549 |
|
|
|
|
|
Excess tax
benefit from stock-based compensation |
|
|
— |
|
|
(1,573 |
) |
|
|
|
|
Changes in
operating assets and liabilities |
|
|
(1,964 |
) |
|
1,188 |
|
|
|
|
|
|
|
Net cash
provided by operating activities |
|
|
24,085 |
|
|
25,287 |
|
|
Cash flows
from investing activities: |
|
|
|
|
|
|
|
Purchases
of property and equipment |
|
|
(6,472 |
) |
|
(3,950 |
) |
|
|
Proceeds
from disposition of property and equipment |
|
|
41 |
|
|
49 |
|
|
|
|
|
|
|
Net cash
used in investing activities |
|
|
(6,431 |
) |
|
(3,901 |
) |
|
Cash flows
from financing activities: |
|
|
|
|
|
|
|
Principal
payments on long-term debt |
|
|
(14,132 |
) |
|
(17,669 |
) |
|
|
Stock
option exercises |
|
|
1,035 |
|
|
756 |
|
|
|
Vesting of
restricted stock units |
|
|
(103 |
) |
|
— |
|
|
|
Excess tax
benefit from stock-based compensation |
|
|
— |
|
|
1,573 |
|
|
|
Principal
payments on capital lease obligations |
|
|
(3,587 |
) |
|
(2,885 |
) |
|
|
|
|
|
|
Net cash
used in financing activities |
|
|
(16,787 |
) |
|
(18,225 |
) |
|
|
|
|
|
|
Net
increase in cash and cash equivalents |
|
|
867 |
|
|
3,161 |
|
|
Cash and
cash equivalents balance, beginning of fiscal period |
|
|
13,898 |
|
|
14,263 |
|
|
Cash and
cash equivalents balance, end of fiscal period |
|
$ |
14,765 |
|
|
17,424 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOJANGLES’, INC. AND
SUBSIDIARIES |
|
Unaudited Reconciliation of Net Income to
Adjusted Net Income |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended |
|
|
Twenty-Six Weeks Ended |
|
|
|
|
|
|
|
|
|
June 25,
2017 |
|
June 26,
2016 |
|
|
June 25,
2017 |
|
June 26,
2016 |
|
Net
income |
|
|
$ |
8,617 |
|
|
10,031 |
|
|
|
16,234 |
|
|
17,875 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain
professional and transaction costs (a) |
|
— |
|
|
9 |
|
|
|
3 |
|
|
42 |
|
|
Payroll
taxes associated with stock option exercises (b) |
|
71 |
|
|
51 |
|
|
|
97 |
|
|
71 |
|
|
Distributor
transition costs (c) |
|
— |
|
|
16 |
|
|
|
— |
|
|
81 |
|
|
Executive
separation expenses (d) |
|
546 |
|
|
— |
|
|
|
551 |
|
|
— |
|
|
Tax impact
of adjustments (e) |
|
(233 |
) |
|
(29 |
) |
|
|
(244 |
) |
|
(74 |
) |
|
Total adjustments |
|
384 |
|
|
47 |
|
|
|
407 |
|
|
120 |
|
|
Adjusted Net Income |
$ |
9,001 |
|
|
10,078 |
|
|
|
16,641 |
|
|
17,995 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOJANGLES’, INC. AND
SUBSIDIARIES |
|
Unaudited Reconciliation of Diluted Net Income
Per Share to Adjusted Diluted Net Income Per Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended |
|
|
Twenty-Six Weeks Ended |
|
|
|
|
|
|
|
|
|
June 25,
2017 |
|
June 26,
2016 |
|
|
June 25,
2017 |
|
June 26,
2016 |
|
Diluted net income per share |
$ |
0.22 |
|
|
0.27 |
|
|
|
0.42 |
|
|
0.48 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain
professional and transaction costs (a) |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
Payroll
taxes associated with stock option exercises (b) |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
Distributor
transition costs (c) |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
Executive
separation expenses (d) |
|
0.02 |
|
|
— |
|
|
|
0.02 |
|
|
— |
|
|
Tax impact
of adjustments (e) |
|
(0.01 |
) |
|
— |
|
|
|
(0.01 |
) |
|
— |
|
|
Total adjustments |
|
0.01 |
|
|
— |
|
|
|
0.01 |
|
|
— |
|
|
Adjusted Diluted Net Income per Share |
$ |
0.23 |
|
|
0.27 |
|
|
|
0.43 |
|
|
0.48 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Includes costs associated with third-party consultants for
one-time projects and public offering expenses. We could incur
similar expenses in future periods if we commence additional public
offerings, financing transactions or other one-time projects. |
|
(b) |
Represents payroll taxes associated with stock option
exercises related to stock options that were outstanding prior to
our initial public offering. We expect to incur similar expenses in
future periods when our directors or employees exercise stock
options that were outstanding prior to our initial public
offering. |
|
(c) |
Includes expenses incurred in connection with the transition
to our new distributor. |
|
(d) |
Represents severance and legal fees associated with a former
executive's departure from the Company. |
|
(e) |
Represents the income tax expense associated with the
adjustments in (a) through (d) that are deductible for income tax
purposes. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOJANGLES’, INC. AND
SUBSIDIARIES |
|
Unaudited Reconciliation of Net Income to
EBITDA and Adjusted EBITDA |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended |
|
|
Twenty-Six Weeks Ended |
|
|
|
|
|
|
|
|
|
June 25,
2017 |
|
June 26,
2016 |
|
|
June 25,
2017 |
|
June 26,
2016 |
|
Net
income |
|
|
$ |
8,617 |
|
10,031 |
|
|
16,234 |
|
17,875 |
|
Income
taxes |
|
|
|
2,784 |
|
5,816 |
|
|
6,954 |
|
9,874 |
|
Interest
expense, net |
|
1,602 |
|
1,935 |
|
|
3,268 |
|
3,959 |
|
Depreciation and amortization (a) |
|
4,303 |
|
4,062 |
|
|
8,353 |
|
8,009 |
|
EBITDA |
|
|
|
|
|
17,306 |
|
21,844 |
|
|
34,809 |
|
39,717 |
|
Non-cash
rent (b) |
|
|
363 |
|
394 |
|
|
768 |
|
771 |
|
Stock-based
compensation (c) |
|
307 |
|
272 |
|
|
681 |
|
549 |
|
Payroll
taxes associated with stock option exercises (d) |
|
71 |
|
51 |
|
|
97 |
|
71 |
|
Preopening
expenses (e) |
|
350 |
|
379 |
|
|
724 |
|
596 |
|
Certain
professional and transaction costs (f) |
|
— |
|
9 |
|
|
3 |
|
42 |
|
Distributor
transition costs (g) |
|
— |
|
16 |
|
|
— |
|
81 |
|
Executive
separation expenses (h) |
|
546 |
|
— |
|
|
551 |
|
— |
|
Impairment
and dispositions (i) |
|
601 |
|
237 |
|
|
933 |
|
248 |
|
Adjusted EBITDA |
$ |
19,544 |
|
23,202 |
|
|
38,566 |
|
42,075 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Includes amortization of deferred debt issuance costs. |
|
(b) |
Includes deferred rent, which represents the extent to which
our rent expense has been above or below our cash rent payments,
amortization of favorable (unfavorable) leases and closed store
reserves for rent net of cash payments. We expect to continue to
incur similar expenses in future periods as we record rent expense
in accordance with GAAP, as well as continue to amortize favorable
(unfavorable) leases and record closed store reserves. |
|
(c) |
Represents non-cash, stock-based compensation. We expect to
incur similar expenses in future periods as we record stock-based
compensation related to existing grants (and any potential future
grants) in accordance with GAAP. |
|
(d) |
Represents payroll taxes associated with stock option
exercises related to stock options that were outstanding prior to
our initial public offering. We expect to incur similar expenses in
future periods when our directors or employees exercise stock
options that were outstanding prior to our initial public
offering. |
|
(e) |
Includes expenses directly associated with the opening of
company-operated restaurants and incurred prior to the opening of a
company-operated restaurant. We expect to continue to incur similar
expenses as we open company-operated restaurants. |
|
(f) |
Includes costs associated with third-party consultants for
one-time projects and public offering expenses. We could incur
similar expenses in future periods if we commence additional public
offerings, financing transactions or other one-time projects. |
|
(g) |
Includes expenses incurred in connection with the transition
to our new distributor. |
|
(h) |
Represents severance and legal fees associated with a former
executive's departure from the Company. |
|
(i) |
Includes (gain) loss on disposal of property and equipment and
other, impairment and cash proceeds on disposals from disposition
of property and equipment. We could continue to record impairment
expense in future periods if performance of company-operated
restaurants is not sufficient to recover the carrying amount of the
related long-lived assets. We may incur future (gains) loss and
receive cash proceeds on disposal of property and equipment
associated with retirement, replacement or write-off of fixed
assets. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOJANGLES’, INC. AND
SUBSIDIARIES |
|
Unaudited Reconciliation of Company Restaurant
Revenues to Restaurant Contribution |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended |
|
|
Twenty-Six Weeks Ended |
|
|
|
|
|
|
|
|
|
June 25,
2017 |
|
June 26,
2016 |
|
|
June 25,
2017 |
|
June 26,
2016 |
|
Company
restaurant revenues |
$ |
127,058 |
|
|
124,674 |
|
|
|
251,841 |
|
|
246,088 |
|
|
Food and
supplies costs |
|
(39,998 |
) |
|
(39,020 |
) |
|
|
(78,683 |
) |
|
(77,541 |
) |
|
Restaurant
labor costs |
|
(36,937 |
) |
|
(34,525 |
) |
|
|
(73,284 |
) |
|
(67,861 |
) |
|
Operating
costs |
|
(29,741 |
) |
|
(26,607 |
) |
|
|
(59,432 |
) |
|
(55,020 |
) |
|
Restaurant contribution |
$ |
20,382 |
|
|
24,522 |
|
|
|
40,442 |
|
|
45,666 |
|
|
Restaurant contribution margin |
|
16.0 |
% |
|
19.7 |
% |
|
|
16.1 |
% |
|
18.6 |
% |
|
For Investor Relations Inquiries:
Raphael Gross of ICR
203.682.8253
For Media Inquiries:
Brian Little of Bojangles’ Restaurants, Inc.
704.519.2118
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