BJ�s Restaurants, Inc. (NASDAQ:BJRI) today reported financial
results for the second quarter of fiscal 2008 that ended on July 1,
2008. Highlights for the second quarter were as follows (compared
to the same quarter last year): Revenues increased approximately
16% to $92.2 million Comparable restaurant sales increased 0.6%,
successfully hurdling a 7.5% increase in the same quarter last year
Net income and diluted net income per share were $2.9 million and
$0.11, respectively Four new restaurants were opened during the
quarter 2008 restaurant expansion plan remains solidly on track
�Our leadership team was pleased with our solid overall financial
results for the second quarter, particularly after considering the
conditions in the macro environment and a difficult quarterly
comparison to overcome,� commented Jerry Deitchle, Chairman and
CEO. �Not only did we achieve a positive comparable sales
comparison for the quarter, we also achieved a slight sequential
quarterly improvement in estimated four-wall restaurant operating
cash flow margins while doing our best to navigate through the
continuing challenges of the overall environment for consumer
spending and the costs of key inputs to our operations.
Additionally, our diluted net income per share comparison for the
quarter was impacted by approximately $0.03 per share due to asset
disposal costs related to selected restaurant remodels in the
current quarter, as well as reduced amounts of interest and other
income compared to the same quarter last year.� �Our 0.6% increase
in comparable restaurant sales for the quarter successfully hurdled
a 7.5% increase for the same quarter last year, which also
represented our strongest quarterly comparable sales comparison
since fiscal 2004,� said Deitchle. �Additionally, BJ�s positive
comparable restaurant sales metric for the second quarter compares
favorably to the estimated 1.1% decrease in comparable restaurant
sales for the June quarter according to the Knapp-Track(TM)
industry data for casual dining.� �So far this year, we have
successfully implemented many of our planned 2008 key
sales-building initiatives which include curbside cashiering
service, call-ahead seating service, expanded delivery service, new
lunch specials, enhanced happy hour programs and additional print
media support for our new menu entr�es,� said Deitchle. �During the
second half of this year, we plan to promote our new online
ordering service, new menu entr�es, an updated wine program and our
new seasonal beers which are all scheduled to be rolled out later
this year. In this tough environment, we will continue to drive
BJ�s top-of-mind awareness and reinforce our points of quality
differentiation with our consumers.� The Company opened four new
restaurants during the second quarter of 2008 in Orlando, Florida;
Indianapolis, Indiana; Baton Rouge, Louisiana; and Torrance,
California. Three of these four new restaurants were opened in the
latter half of the quarter. The Company continues to target as many
as 15 new restaurant openings in total during 2008, of which six
have opened as of the end of the second quarter. The Company
currently expects to open as many as five new restaurants in the
third quarter (of which two have already opened), and as many as
four new restaurants in the fourth quarter. The actual timing of
restaurant openings is inherently difficult to precisely predict
and is subject to a number of factors outside of the Company�s
control, including factors that are under the control of the
Company�s landlords, municipalities and contractors. Investor
Conference Call and Webcast BJ�s Restaurants, Inc. will conduct a
conference call on its second quarter earnings release today, July
24, 2008, at 5:00 p.m. (Eastern Time). The Company will provide an
Internet simulcast of the conference call. To listen to the
conference call, please visit the �Investors� page of the Company's
website located at http://www.bjsrestaurants.com several minutes
prior to the start of the call to register and download any
necessary audio software. An archive of the presentation will be
available for 30 days following the call. BJ's Restaurants, Inc.
currently owns and operates 75 casual dining restaurants under the
BJ's Restaurant & Brewery, BJ's Restaurant & Brewhouse or
BJ's Pizza & 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, entr�es and desserts.
Quality, flavor, value, moderate prices and sincere service remain
distinct attributes of the BJ's experience. The Company operates
several microbreweries which produce and distribute BJ's critically
acclaimed handcrafted beers throughout the chain. The Company's
restaurants are located in California (40), Texas (12), Arizona
(5), Colorado (3), Oregon (2), Nevada (2), Florida (4), Ohio (2),
Oklahoma (2), Kentucky (1), Indiana (1) and Louisiana (1). The
Company also has a licensing interest in a BJ's restaurant in
Lahaina, Maui. 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 growth in
2008, those regarding the effect of new sales-building initiatives,
as well as those regarding the number of restaurants expected to be
opened in 2008 and the timing and location of such openings. 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) minimum wage increases, (v) food quality and health
concerns, (vi) factors that impact California, where 40 of our
current 75 restaurants are located, (vii) restaurant and brewery
industry competition, (viii) impact of certain brewery business
considerations, including without limitation, dependence upon
suppliers and related hazards, (ix) consumer spending trends in
general for casual dining occasions, (x) potential uninsured losses
and liabilities, (xi) fluctuating commodity costs and availability
of food in general and certain raw materials related to the brewing
of our handcrafted beers and energy, (xii) trademark and
servicemark risks, (xiii) government regulations, (xiv) licensing
costs, (xv) beer and liquor regulations, (xvi) loss of key
personnel, (xvii) inability to secure acceptable sites, (xviii)
limitations on insurance coverage, (xix) legal proceedings, (xx)
other general economic and regulatory conditions and requirements,
(xxi) the success of our key sales-building and related operational
initiatives and (xxii) numerous other matters discussed in the
Company's filings with the Securities and Exchange Commission. 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. Further information concerning the
Company�s results of operations for the second quarter 2008 will be
provided in the Company�s Form 10-Q filing, to be filed with the
Securities and Exchange Commission by August 11, 2008. BJ�s
Restaurants, Inc. Unaudited Consolidated Statements of Income
(Dollars in thousands except for per share data) � Thirteen Weeks
Ended Twenty-Six Weeks Ended July 1, � ��July 3, July 1, � July 3,
2008 � 2007 2008 � 2007 � � � � Revenues $ 92,227 100.0 % $ 79,305
100.0 % $ 179,049 100.0 % $ 150,508 100.0 % Costs and expenses:
Cost of sales 23,026 25.0 20,323 25.6 44,923 25.1 38,351 25.5 Labor
and benefits 32,490 35.2 28,080 35.4 63,161 35.3 53,709 35.7
Occupancy & operating expenses 19,077 20.7 15,208 19.2 36,823
20.6 28,600 19.0 General and administrative 6,998 7.6 6,737 8.5
14,394 8.0 12,975 8.6 Depreciation and amortization 4,484 4.9 3,435
4.3 8,752 4.9 6,487 4.3 Restaurant opening expense 2,215 2.4 1,794
2.3 3,342 1.9 3,214 2.1 Loss on disposal of assets � 299 0.3 � � �
� � � 351 0.2 � � 2,004 1.3 � Total costs and expenses � 88,589
96.1 � � 75,577 95.3 � � 171,746 96.0 � � 145,340 96.5 � Income
from operations 3,638 3.9 3,728 4.7 7,303 4.0 5,168 3.5 � Other
income: Interest income, net 375 0.4 849 1.1 1,026 0.6 1,825 1.2
Other income, net � 61 0.1 � � 290 0.4 � � 201 0.1 � � 312 0.2 �
Total other income � 436 0.5 � � 1,139 1.5 � � 1,227 0.7 � � 2,137
1.4 � Income before income taxes 4,074 4.4 4,867 6.2 8,530 4.7
7,305 4.9 � Income tax expense � 1,181 1.3 � � 1,593 2.0 � � 2,517
1.4 � � 2,405 1.6 � � Net income $ 2,893 3.1 % $ 3,274 4.2 % $
6,013 3.3 % $ 4,900 3.3 % � Net income per share: Basic $ 0.11 $
0.13 $ 0.23 $ 0.19 � Diluted $ 0.11 $ 0.12 $ 0.23 $ 0.18 � Weighted
average number of shares outstanding: Basic � 26,361 � 26,094 �
26,359 � 26,083 � Diluted � 26,707 � 26,828 � 26,719 � 26,826
Selected Consolidated Balance Sheet Information (Dollars in
thousands) � Balance Sheet Data (end of period): July 1, 2008
(unaudited) � January 1, 2008 (audited) � Cash and cash equivalents
$6,677 $11,617 � Investments (1) $35,095 $41,100 � Total assets
$309,925 $285,299 � Total long-term debt, including current portion
$ 5,000 $ � � Shareholders� equity $226,409 $220,523 (1)
Investments are comprised of auction rate securities classified as
available for sale and recorded at their fair value as of July 1,
2008. As disclosed in previous periodic reports, due to significant
disruptions in the market for auction rate securities, the Company
may be required to make adjustments in the reported fair value of
these instruments in future quarterly periods. Thirteen Weeks Ended
� Twenty-Six Weeks Ended July 1, � July 3, � July 1, � July 3,
Supplemental (Unaudited) Information (2) 2008 � 2007 � 2008 � 2007
� Comparable restaurant sales % change 0.6 % 7.5 % 0.4 % 7.2 %
Restaurants opened during period 4 3 6 5 Restaurants open at
period-end 73 60 73 60 Restaurant operating weeks 914 769 1,808
1,490 (2) Excludes the one licensed restaurant. Reconciliation of
Non-GAAP 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 financial measures in this press release or in
the webcast to discuss the Company's financial results for the
second quarter which may be accessed via the Company's website at
http://www.bjsrestaurants.com: (i) non-GAAP net income, and (ii)
non-GAAP basic and diluted net income per share. Each of these
non-GAAP financial measures is adjusted from results based on GAAP
to exclude certain expenses and gains. As a general matter, the
Company uses these non-GAAP measures in addition to and in
conjunction with results presented in accordance with GAAP. Among
other things, the Company uses such non-GAAP financial measures in
addition to and in conjunction with corresponding GAAP measures to
help analyze the performance of its core business. In addition, the
Company believes that such non-GAAP 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 measures,
could result in confusion among analysts and others and a misplaced
perception that the Company's results have underperformed or
exceeded expectations or the results of its competitors. These
non-GAAP 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 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. Non-GAAP net income and non-GAAP basic and diluted net
income per share exclude the effects of (i) stock-based
compensation expense, and (ii) loss on disposal of certain assets.
In addition, non-GAAP net income and non-GAAP diluted net income
per share reflect an adjustment of income tax expense associated
with exclusion of the foregoing expense items. The adjustment of
income taxes is required in order to provide management and
investors a more accurate assessment of the taxes that would have
been payable on net income, as adjusted by exclusion of the effects
of the above listed items. The Company believes that presentation
of measures of net income and diluted net income per share that
exclude these items assists management and investors in evaluating
the period over period performance of the Company's ongoing core
business operations because the expenses are non-cash in nature.
Additionally, although the sizes of the Company�s grants of various
equity awards are within the Company's control, the amount of stock
compensation expense varies depending on factors such as short-term
fluctuations in stock price and volatility which can be unrelated
to the operational performance of the Company during the period in
question and generally is outside the control of management during
the period in which the expense is recognized. Moreover, the
Company believes that the exclusion of stock-based compensation in
presenting non-GAAP financial measures is useful to investors to
understand the impact of the expensing of stock-based compensation
to the Company's net income and net income per share in comparison
to prior periods as well as to its competitors. Furthermore, with
the respect to the exclusion of charges relating to the disposal of
certain assets, the Company believes that presentation of a measure
of non-GAAP net income and net income per share that excludes such
charges is useful to management and investors in evaluating the
performance of the Company�s ongoing operations on a
period-to-period basis and relative to the Company�s competitors.
The Company believes disclosure of non-GAAP net income and non-GAAP
basic and diluted net income per share has economic substance
because the excluded expenses are infrequent in nature and do not
represent current cash expenditures. A material limitation
associated with the use of this measure as compared to the GAAP
measures of net income and diluted net income per share is that
they may not be comparable with the calculation of net income and
diluted net income per share for other companies in the Company's
industry. The Company compensates for these limitations by
providing full disclosure of the effects of this non-GAAP measure,
by presenting the corresponding GAAP financial measure in this
release and in the Company�s financial statements and by providing
a reconciliation to the corresponding GAAP measure to enable
investors to perform their own analysis. (Unaudited, dollars in
thousands except for per share data) � Thirteen Weeks Ended
Twenty-Six Weeks Ended July 1, � July 3, July 1, � July 3, 2008 �
2007 2008 � 2007 � � � � Net income as reported $ 2,893 3.1 %
$3,274 4.2 % $ 6,013 3.3 % $ 4,900 3.3 % Stock-based compensation:
Labor and benefits 221 0.2 162 0.2 429 0.2 323 0.2 General and
administrative 617 0.7 555 0.7 1,225 0.7 1,094 0.7 Loss on disposal
of assets 299 0.3 � � 351 0.2 2,004 1.3 Tax effect - stock-based
compensation (243 ) (0.3 ) (235 ) (0.3 ) (488 ) (0.3 ) (468 ) (0.3
) Tax effect - loss on disposal of assets � (87 ) (0.1 ) � � � � �
(104 ) (0.1 ) � (667 ) (0.5 ) Non-GAAP net income $ 3,700 � 3.9 %
$3,756 � 4.8 % $ 7,426 � 4.0 % $ 7,186 � 4.7 % � Basic net income
per share: $ 0.11 $0.13 $ 0.23 $ 0.19 Stock-based compensation 0.03
0.03 0.06 0.05 Loss on disposal of assets 0.01 0.00 0.01 0.08 Tax
effect - stock-based compensation (0.01 ) (0.01 ) (0.02 ) (0.02 )
Tax effect - loss on disposal of assets � (0.00 ) (0.00 ) � (0.00 )
� (0.02 ) Non-GAAP basic net income per share $ 0.14 � $0.15 � $
0.28 � $ 0.28 � � Diluted net income per share: $ 0.11 $0.12 $ 0.23
$ 0.18 Stock-based compensation 0.03 0.03 0.06 0.05 Loss on
disposal of assets 0.01 0.00 0.01 0.07 Tax effect - stock-based
compensation (0.01 ) (0.01 ) (0.02 ) (0.02 ) Tax effect - loss on
disposal of assets � (0.00 ) (0.00 ) � (0.00 ) � (0.02 ) Non-GAAP
diluted net income per share $ 0.14 � $0.14 � $ 0.28 � $ 0.26 �
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