BJ's Restaurants, Inc. (Nasdaq:BJRI) today reported financial
results for the fourth quarter and fiscal year 2009 that ended on
Tuesday, December 29, 2009.
Total revenues for the fourth quarter of fiscal 2009 increased
approximately 13.5% to $112.6 million compared to $99.3 million for
the same quarter last year. Comparable restaurant sales
decreased by 0.2% during the fourth quarter of fiscal 2009 compared
to a decrease of 0.7% during the same quarter last year. Net
income and diluted net income per share for the fourth quarter of
fiscal 2009 were $1.7 million and $0.06, respectively. As
previously announced in our press release on January 7, 2010, the
fourth quarter results include a $1.7 million pre-tax charge
related to the settlement and disposition of the Company's entire
auction rate securities ("ARS") investment portfolio and $0.5
million of legal costs associated with negotiating and documenting
the settlement of the Company's related claim against the
broker-dealer for its ARS portfolio. On a non-GAAP basis,
excluding the aforementioned $2.2 million of pre-tax charges and
their related tax effect, the Company's non-GAAP net income and
non-GAAP net income per diluted share for the fourth quarter were
$3.3 million and $0.12, respectively. A reconciliation between GAAP
and these non-GAAP financial measures is included in the
accompanying financial data.
Total revenues for fiscal 2009 increased approximately 14.1% to
$426.7 million compared to $374.1 million for fiscal
2008. Comparable restaurant sales decreased by 0.8% during
fiscal 2009 compared to a decrease of 0.3% during fiscal
2008. Net income and diluted net income per share for fiscal
2009 were $13.0 million and $0.48, respectively. On a non-GAAP
basis, excluding the $2.2 million of pre-tax charges and their
related tax effect, the Company's non-GAAP net income and non-GAAP
net income per diluted share were $14.7 million and $0.53,
respectively. A reconciliation between GAAP and these non-GAAP
financial measures is included in the accompanying financial
data.
"Given the difficult national economy and its continuing
pressure on consumer spending for restaurant occasions, our
leadership team was pleased with BJ's overall financial performance
for the fourth quarter and full year of 2009," commented Jerry
Deitchle, Chairman and CEO. "Not only did we achieve
double-digit revenue growth for the fourth quarter and full year,
our comparable restaurant sales results continued to outperform
most of our casual dining peers. Our relatively strong
comparable sales performance is a solid testimonial to the
popularity, quality, relevance, approachability and value of the
BJ's restaurant concept and our steadily improving ability to
correctly and consistently execute within the four walls of our
restaurants.
"While we do not expect consumer spending for restaurant
occasions to significantly recover during 2010, we remain confident
in BJ's ability to gain market share in the estimated $80 billion
casual dining segment," said Deitchle. "Our 2010 new
restaurant development pipeline is in excellent shape as of today,
and we are already working on potential locations for 2011
openings. Additionally, we will continue to make prudent
investments in the 'core' of the BJ's concept to further strengthen
its competitive advantages of quality, differentiation and value
for the casual dining consumer."
The Company opened five new restaurants during the fourth
quarter of 2009 (Culver City, CA; Concord, CA; Carlsbad, CA; San
Rafael, CA; and Hurst, TX). As previously announced, the
Company currently expects to open as many as 10 to 11 new
restaurants during 2010. Two new restaurant openings are
currently planned for the latter half of the first quarter of 2010
(Ft. Worth, TX and Escondido, CA). As of this date, for the
remainder of 2010, the Company expects to open as many as two new
restaurants in the second quarter, four new restaurants in the
third quarter and as many as two to three new restaurants during
the fourth quarter. The actual number and timing of new
restaurant openings during 2010 is subject to a number of factors
outside of the Company's control, including weather conditions and
factors under the control of landlords, contractors and
regulatory/licensing authorities.
Investor Conference Call and Webcast
BJ's Restaurants, Inc. will conduct a conference call on its
fourth quarter and fiscal year 2009 earnings release today,
February 11, 2010, at 2:00 p.m. (Pacific Time). The Company will
provide an Internet simulcast, as well as a replay 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 92 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,
entrées 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
(49), Texas (16), Arizona (5), Colorado (3), Oregon (2), Nevada
(3), Florida (5), Ohio (2), Oklahoma (2), Kentucky (1), Indiana
(1), Louisiana (1) and Washington (2). 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
future periods, those regarding the effect of new sales-building
initiatives, future guest traffic, as well as those regarding the
number of restaurants expected to be opened in future periods 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) the effect of
credit and equity market disruptions on our ability to finance our
continued expansion on acceptable terms, (ii) our ability to manage
an increasing number of new restaurant openings, (iii) construction
delays, (iv) labor shortages, (v) minimum wage increases, (vi) food
quality and health concerns, (vii) factors that impact California,
where 49 of our current 92 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, (xii)
fluctuating commodity costs and availability of food in general and
certain raw materials related to the brewing of our handcrafted
beers and energy, (xiii) trademark and servicemark risks, (xiv)
government regulations, (xv) licensing costs, (xvi) beer and liquor
regulations, (xvii) loss of key personnel, (xviii) inability to
secure acceptable sites, (xix) limitations on insurance coverage,
(xx) legal proceedings, (xxi) other general economic and regulatory
conditions and requirements, (xxii) the success of our key
sales-building and related operational initiatives and (xxiii)
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.
Further information concerning the Company's results of
operations for fourth quarter 2009 will be provided in the
Company's Form 10-K filing, to be filed with the Securities and
Exchange Commission by March 15, 2010.
BJ's Restaurants, Inc.
Unaudited Consolidated Statements of Income
(Dollars in thousands except for per share
data)
|
|
|
Thirteen Weeks Ended
|
Fifty-Two Weeks Ended
|
|
December 29,
2009
|
December 30,
2008
|
December 29,
2009
|
December 30,
2008
|
|
|
|
|
|
|
|
|
|
Revenues
|
$112,635
|
100.0%
|
$99,276
|
100.0%
|
$426,707
|
100.0%
|
$374,076
|
100.0%
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
Cost of sales
|
28,132
|
25.0
|
25,191
|
25.4
|
106,484
|
25.0
|
94,412
|
25.2
|
Labor and benefits
|
39,356
|
34.9
|
34,707
|
35.0
|
149,075
|
34.9
|
131,328
|
35.1
|
Occupancy and operating
|
24,598
|
21.8
|
21,473
|
21.6
|
92,204
|
21.6
|
80,212
|
21.4
|
General and administrative
|
7,694
|
6.8
|
7,187
|
7.2
|
29,484
|
6.9
|
27,264
|
7.3
|
Depreciation and amortization
|
6,414
|
5.7
|
5,440
|
5.5
|
24,119
|
5.7
|
19,184
|
5.1
|
Restaurant opening
|
2,174
|
1.9
|
1,369
|
1.4
|
5,327
|
1.2
|
7,384
|
2.0
|
Loss on disposal of assets
|
312
|
0.3
|
504
|
0.5
|
312
|
0.1
|
855
|
0.2
|
Natural disaster and related
|
–
|
–
|
–
|
–
|
–
|
–
|
446
|
0.1
|
Legal settlements and terminations
|
–
|
–
|
2,086
|
2.1
|
–
|
–
|
2,086
|
0.6
|
Total costs and expenses
|
108,680
|
96.4
|
97,957
|
98.7
|
407,005
|
95.4
|
363,171
|
97.0
|
Income from operations
|
3,955
|
3.6
|
1,319
|
1.3
|
19,702
|
4.6
|
10,905
|
3.0
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
Interest income, net
|
17
|
–
|
454
|
0.5
|
214
|
0.1
|
1,764
|
0.5
|
Loss on investment settlement
|
(1,709)
|
(1.5)
|
–
|
–
|
(1,709)
|
(0.4)
|
–
|
–
|
Other income, net
|
133
|
0.1
|
96
|
0.1
|
379
|
0.1
|
376
|
0.1
|
Total other (expense) income
|
(1,559)
|
(1.4)
|
550
|
0.6
|
(1,116)
|
(0.2)
|
2,140
|
0.6
|
Income before income taxes
|
2,396
|
2.2
|
1,869
|
1.9
|
18,586
|
4.4
|
13,045
|
3.6
|
|
|
|
|
|
|
|
|
|
Income tax expense (benefit)
|
675
|
0.6
|
(386)
|
(0.4)
|
5,548
|
1.3
|
2,737
|
0.7
|
|
|
|
|
|
|
|
|
|
Net income
|
$1,721
|
1.6%
|
$2,255
|
2.3%
|
$13,038
|
3.1%
|
$10,308
|
2.9%
|
|
|
|
|
|
|
|
|
|
Net income per share:
|
|
|
|
|
|
|
|
|
Basic
|
$0.06
|
|
$0.08
|
|
$0.49
|
|
$0.39
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
$0.06
|
|
$0.08
|
|
$0.48
|
|
$0.39
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
26,774
|
|
26,718
|
|
26,750
|
|
26,484
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
27,298
|
|
26,816
|
|
27,147
|
|
26,749
|
|
Selected Consolidated Balance Sheet Information
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet Data (end of period):
|
December 29,
2009
(unaudited)
|
December 30,
2008
(audited)
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents and short-term investments
|
$44,906
|
$8,852
|
|
|
|
|
|
|
|
|
|
|
|
Investments (1)
|
$ –
|
$30,617
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$381,122
|
$335,209
|
|
|
|
|
|
|
|
|
|
|
|
Total long-term debt, including current portion
|
$5,000
|
$9,500
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
$252,979
|
$232,277
|
|
|
|
|
(1) Investments are comprised of auction rate securities
classified as available
for sale and recorded
at their fair value as of December 30, 2008.
|
Supplemental Information
|
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended
|
Fifty-Two Weeks Ended
|
|
|
|
December 29,
2009
|
December 30,
2008
|
December 29,
2009
|
December 30,
2008
|
|
|
Stock-based compensation (2)
|
|
|
|
|
|
|
|
|
|
|
Labor and benefits (3)
|
$231
|
0.2%
|
$243
|
0.2%
|
$602
|
0.1%
|
849
|
0.2%
|
|
|
General and administrative
|
588
|
0.5
|
634
|
0.6
|
2,312
|
0.5
|
2,495
|
0.7
|
|
|
Total stock based compensation
|
$819
|
0.7%
|
$877
|
0.8%
|
$2,914
|
0.6%
|
$3,344
|
0.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited Operating Data
|
|
|
|
|
|
|
|
|
|
|
Comparable restaurant sales % change
|
-0.2%
|
|
-0.7%
|
|
-0.8%
|
|
-0.3%
|
|
|
|
Restaurants opened during period
|
5
|
|
3
|
|
10
|
|
15
|
|
|
|
Restaurants open at period-end
|
92
|
|
82
|
|
92
|
|
82
|
|
|
|
Restaurant operating weeks
|
1,176
|
|
1,052
|
|
4,455
|
|
3,857
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Percentages represent percent of total revenues.
|
|
|
|
|
|
|
|
|
(3) In September 2009, the Company reassessed
its forfeiture rate for equity
compensation resulting
in a one-time reduction in equity compensation.
|
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 fourth quarter and fiscal year
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.
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.
For fiscal 2009, non-GAAP net income and non-GAAP basic and
diluted net income per share exclude the effects of the settlement
of ARS investments and the related legal and related
expenses. For fiscal 2008, non-GAAP net income and non-GAAP
basic and diluted net income per share exclude the effects of (i)
natural disaster and related expense and (ii) legal settlements and
related expenses arising from the prior termination of certain
executive officers. In addition, for fiscal 2008, 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 and an estimated effective tax rate that
the Company would have incurred if they excluded these
charges. 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 either non-cash or non-routine in
nature. Furthermore, 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.
Reconciliation of Non-GAAP Financial
Measures
|
(Unaudited, dollars in thousands except for per share
data)
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended
|
Fifty-Two Weeks Ended
|
|
December 29,
2009
|
December 30,
2008
|
December 29,
2009
|
December 30,
2008
|
|
|
|
|
|
|
|
|
|
Net income, as reported
|
$1,721
|
1.6%
|
$2,255
|
2.3%
|
$13,038
|
3.1%
|
$10,308
|
2.9%
|
Loss on investment settlement
|
1,709
|
1.5
|
–
|
–
|
1,709
|
0.4
|
–
|
–
|
Legal and related ARS settlement (1)
|
473
|
0.4
|
–
|
–
|
588
|
0.1
|
–
|
–
|
Natural disaster and related
|
–
|
–
|
–
|
–
|
–
|
–
|
446
|
0.1
|
Legal settlements and terminations
|
–
|
–
|
2,086
|
2.1
|
–
|
–
|
2,086
|
0.6
|
Tax effect - loss on investment settlement
|
(481)
|
(0.4)
|
–
|
–
|
(510)
|
(0.1)
|
–
|
–
|
Tax effect - legal and related ARS settlement
|
(133)
|
(0.1)
|
–
|
–
|
(176)
|
–
|
–
|
–
|
Tax effect - natural disaster and related (2)
|
–
|
–
|
–
|
–
|
–
|
–
|
(110)
|
–
|
Tax effect - legal settlements and terminations (2)
|
–
|
–
|
(513)
|
(0.5)
|
–
|
–
|
(513)
|
(0.1)
|
Income tax adjustment (3)
|
–
|
–
|
(845)
|
(0.9)
|
–
|
–
|
(469)
|
(0.1)
|
Non-GAAP net income
|
$3,289
|
3.0%
|
$2,983
|
3.0%
|
$14,649
|
3.5%
|
$11,748
|
3.4%
|
|
|
|
|
|
|
|
|
|
Basic net income per share:
|
$0.06
|
|
$0.08
|
|
$0.49
|
|
$0.39
|
|
Loss on investment settlement
|
0.06
|
|
–
|
|
0.06
|
|
–
|
|
Legal and related ARS settlement (1)
|
0.02
|
|
–
|
|
0.02
|
|
–
|
|
Natural disaster and related
|
–
|
|
–
|
|
–
|
|
0.02
|
|
Legal settlements and terminations
|
–
|
|
0.08
|
|
–
|
|
0.08
|
|
Tax effect - loss on investment settlement
|
(0.02)
|
|
–
|
|
(0.02)
|
|
–
|
|
Tax effect - legal and related ARS settlement
|
–
|
|
–
|
|
(0.01)
|
|
–
|
|
Tax effect - natural disaster and related (2)
|
–
|
|
–
|
|
–
|
|
–
|
|
Tax effect - legal settlements and terminations (2)
|
–
|
|
(0.02)
|
|
–
|
|
(0.02)
|
|
Income tax adjustment (3)
|
–
|
|
(0.03)
|
|
–
|
|
(0.02)
|
|
Non-GAAP basic net income per share
|
$0.12
|
|
$0.11
|
|
$0.54
|
|
$0.45
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per share:
|
$0.06
|
|
$0.08
|
|
$0.48
|
|
$0.39
|
|
Loss on investment settlement
|
0.06
|
|
–
|
|
0.06
|
|
–
|
|
Legal and related ARS settlement (1)
|
0.02
|
|
–
|
|
0.02
|
|
–
|
|
Natural disaster and related
|
–
|
|
–
|
|
–
|
|
0.02
|
|
Legal settlements and terminations
|
–
|
|
0.08
|
|
–
|
|
0.08
|
|
Tax effect - loss on investment settlement
|
(0.02)
|
|
–
|
|
(0.02)
|
|
–
|
|
Tax effect - legal and related ARS settlement
|
–
|
|
–
|
|
(0.01)
|
|
–
|
|
Tax effect - natural disaster and related (2)
|
–
|
|
–
|
|
–
|
|
–
|
|
Tax effect - legal settlements and terminations (2)
|
–
|
|
(0.02)
|
|
–
|
|
(0.02)
|
|
Income tax adjustment (3)
|
–
|
|
(0.03)
|
|
–
|
|
(0.02)
|
|
Non-GAAP diluted net income per share
|
$0.12
|
|
$0.11
|
|
$0.53
|
|
$0.45
|
|
(1) Amounts included in the Company's general and
administrative expenses for the thirteen and
fifty-two weeks ended
December 29, 2009.
(2) The Company's tax rate for the thirteen and
fifty-two weeks ended December 30, 2008, was
impacted by the
charges listed in the reconciliation schedule above. Excluding
these charges
the Company estimates
that its effective annual tax rate would have been 24.6%.
Accordingly,
for this
reconciliation of non-GAAP related financial matters the Company
used the 24.6%
effective tax rate for
the thirteen and fifty-two weeks ended December 30, 2008, as if
these
charges did not
occur.
(3) Represents the incremental difference between
the Company's recorded annual effective tax rate
and its estimated
effective annual tax rate of 24.6% as noted previously for the
thirteen and
fifty-two weeks ended
December 30, 2008.
CONTACT: BJ's Restaurants, Inc.
Greg Levin
(714) 500-2400
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