BJ's Restaurants, Inc. (Nasdaq:BJRI) today reported financial
results for the fourth quarter and fiscal year 2010 that ended on
Tuesday, December 28, 2010.
Highlights for the 13 weeks ended December 28, 2010, compared to
the 13 weeks ended December 29, 2009, were as follows:
- Total revenues increased 18% to $132.9 million
- Comparable restaurant sales increased 5.9%
- Net income and diluted net income per share were $6.9 million
and $0.24, respectively
- Two new restaurants opened
- Total restaurant operating weeks increased approximately
12%
Results for the fourth quarter of fiscal 2010 include an
after-tax benefit of approximately $0.7 million or $0.02 per
diluted share primarily due to a favorable tax rate adjustment
associated with disqualifying dispositions related to incentive
stock options ("ISO"). Additionally, in the fourth quarter of
fiscal 2009, the Company recorded an after-tax charge of
approximately $1.6 million or $0.06 per diluted share related to a
loss and related legal costs for the disposition of the Company's
entire auction rate securities ("ARS") portfolio. Excluding
both of these items from each year's quarterly results, non-GAAP
net income and diluted net income per share for the fourth quarter
of fiscal 2010 would have increased by 90% and 83%, respectively,
to $6.3 million and $0.22 compared to non-GAAP results for the same
quarter last year. A reconciliation between GAAP and these
non-GAAP financial measures is included in the accompanying
financial data.
Highlights for the 52 weeks ended December 28, 2010, compared to
the 52 weeks ended December 29, 2009, were as follows:
- Total revenues increased 20% to $513.9 million
- Comparable restaurant sales increased 5.6%
- Net income and diluted net income per share were $23.2 million
and $0.82, respectively
- Ten new restaurants opened
- Total restaurant operating weeks increased approximately
13%
Excluding the two aforementioned after-tax items for both fiscal
2010 and 2009, non-GAAP net income and diluted net income per
share for fiscal 2010 would have increased by 53% and 51%,
respectively, to $22.5 million and $0.80 compared to non-GAAP
results for fiscal 2009. A reconciliation between GAAP
and these non-GAAP financial measures is included in the
accompanying financial data.
"Our leadership team was very pleased with BJ's strong financial
performance for both the fourth quarter and full year of 2010,"
commented Jerry Deitchle, Chairman and Chief Executive
Officer. "Despite the difficult operating environment during
the past couple of years, we made a decision to continue prudently
investing in the quality of the BJ's restaurant concept and
the strength of our support infrastructure, thereby protecting our
brand and our longer-term growth opportunity. As a result,
fiscal 2010 was a very successful year for BJ's. Not only did
we achieve our targeted capacity growth by opening ten successful
new restaurants this past year, we also achieved four consecutive
quarters of solidly positive comparable restaurant sales that
resulted in a 5.6% increase in that metric for the full
year. Taken together, our capacity growth and comparable
restaurant sales growth enabled BJ's to surpass the half-billion
dollar sales milestone during fiscal 2010. Just as important,
we were able to achieve better leverage of our sales increases to
our bottom-line performance as a result of more effective
operational execution in all aspects of our business. We look
forward to the challenge of surpassing this performance during the
upcoming year."
Two new restaurants opened during the fourth quarter of 2010
(Puente Hills, CA and Shenandoah, TX). "Sales volumes for all
of our new restaurant openings during 2010 remain strong,"
commented Deitchle. As previously announced, the Company
currently expects to open as many as 12 to 13 new restaurants
during 2011. Two new restaurant openings are currently planned
for the latter half of the first quarter of 2011 (Tyler, TX and
Sacramento, CA). As of this date, the Company expects to
open as many as three new restaurants in the second quarter, four
new restaurants in the third quarter and as many as three or four
new restaurants during the fourth quarter. Investors are reminded
that the actual number and timing of new restaurant openings 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 2010 earnings release today,
February 10, 2011, 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 102 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,
entrees 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
(51), Texas (20), Arizona (6), Colorado (4), Oregon (2), Nevada
(4), Florida (6), 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, 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 recent 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 51 of our current 102 restaurants are located, (viii)
restaurant and brewery industry competition, (ix) impact of certain
brewery business considerations, including without limitation,
dependence upon suppliers 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 service-mark 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. 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 2010 will be provided in the
Company's Form 10-K filing, to be filed with the Securities and
Exchange Commission by March 13, 2011.
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 28,
2010 |
December 29,
2009 |
December 28,
2010 |
December 29,
2009 |
Revenues |
$132,896 |
100.0% |
$112,635 |
100.0% |
$513,860 |
100.0% |
$426,707 |
100.0% |
Costs and expenses: |
|
|
|
|
|
|
|
|
Cost of sales |
32,949 |
24.8 |
28,132 |
25.0 |
126,078 |
24.5 |
106,484 |
25.0 |
Labor and benefits |
45,424 |
34.2 |
39,356 |
34.9 |
178,199 |
34.7 |
149,075 |
34.9 |
Occupancy and operating |
28,273 |
21.3 |
24,598 |
21.8 |
109,566 |
21.3 |
92,204 |
21.6 |
General and administrative |
8,941 |
6.7 |
7,694 |
6.8 |
34,632 |
6.7 |
29,484 |
6.9 |
Depreciation and amortization |
7,751 |
5.8 |
6,414 |
5.7 |
28,878 |
5.6 |
24,119 |
5.7 |
Restaurant opening |
971 |
0.7 |
2,174 |
1.9 |
5,189 |
1.0 |
5,327 |
1.2 |
Loss on disposal of assets |
140 |
0.1 |
312 |
0.3 |
1,164 |
0.2 |
312 |
0.1 |
Total costs and expenses |
124,449 |
93.6 |
108,680 |
96.4 |
483,706 |
94.0 |
407,005 |
95.4 |
Income from operations |
8,447 |
6.4 |
3,955 |
3.6 |
30,154 |
6.0 |
19,702 |
4.6 |
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
Interest income |
32 |
– |
37 |
– |
124 |
– |
292 |
0.1 |
Interest expense |
(24) |
– |
(20) |
– |
(90) |
– |
(78) |
– |
Loss on ARS investment disposition |
– |
– |
(1,709) |
(1.5) |
– |
– |
(1,709) |
(0.4) |
Other income, net |
121 |
0.1 |
133 |
0.1 |
612 |
0.1 |
379 |
0.1 |
Total other income (expense) |
129 |
0.1 |
(1,559) |
(1.4) |
646 |
0.1 |
(1,116) |
(0.2) |
Income before income taxes |
8,576 |
6.5 |
2,396 |
2.2 |
30,800 |
6.1 |
18,586 |
4.4 |
|
|
|
|
|
|
|
|
|
Income tax expense |
1,639 |
1.2 |
675 |
0.6 |
7,638 |
1.5 |
5,548 |
1.3 |
|
|
|
|
|
|
|
|
|
Net income |
$ 6,937 |
5.3% |
$ 1,721 |
1.6% |
$ 23,162 |
4.6% |
$ 13,038 |
3.1% |
|
|
|
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
|
|
|
Basic |
$ 0.25 |
|
$ 0.06 |
|
$ 0.86 |
|
$ 0.49 |
|
|
|
|
|
|
|
|
|
|
Diluted |
$ 0.24 |
|
$ 0.06 |
|
$ 0.82 |
|
$ 0.48 |
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares
outstanding: |
|
|
|
|
|
|
|
|
Basic |
27,252 |
|
26,774 |
|
27,073 |
|
26,750 |
|
|
|
|
|
|
|
|
|
|
Diluted |
28,688 |
|
27,298 |
|
28,167 |
|
27,147 |
|
|
|
Selected Consolidated
Balance Sheet Information |
(Dollars in
thousands) |
|
|
|
Balance Sheet Data (end of
period): |
December 28, 2010
(unaudited) |
December 29, 2009
(audited) |
|
|
|
Cash, cash equivalents and short-term
investments |
$ 53,192 |
$ 44,906 |
|
|
|
Non-current investments |
$ 1,005 |
$ -- |
|
|
|
Total assets |
$ 430,085 |
$ 381,122 |
|
|
|
Total long-term debt, including current
portion |
$ -- |
$ 5,000 |
|
|
|
Shareholders' equity |
$ 287,826 |
$ 252,979 |
|
|
Supplemental
Information |
(Dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks
Ended |
Fifty-Two Weeks
Ended |
|
December 28,
2010 |
December 29,
2009 |
December 28,
2010 |
December 29,
2009 |
Stock-based compensation
(1) |
|
|
|
|
|
|
|
|
Labor and benefits |
$ 352 |
0.3% |
$ 231 |
0.2% |
$1,123 |
0.2% |
$ 602 |
0.1% |
General and administrative |
704 |
0.5 |
588 |
0.5 |
2,882 |
0.6 |
2,312 |
0.5 |
Total stock based compensation |
$1,056 |
0.8% |
$ 819 |
0.7% |
$4,005 |
0.8% |
$2,914 |
0.6% |
|
|
|
|
|
|
|
|
|
Unaudited Operating
Data |
|
|
|
|
|
|
|
|
Comparable restaurant sales % change |
5.9% |
|
-0.2% |
|
5.6% |
|
-0.8% |
|
Restaurants opened during period |
2 |
|
5 |
|
10 |
|
10 |
|
Restaurants open at period-end |
102 |
|
92 |
|
102 |
|
92 |
|
Restaurant operating weeks |
1,319 |
|
1,176 |
|
5,026 |
|
4,455 |
|
|
|
|
|
|
|
|
|
|
(1) Percentages represent percent
of total revenues. |
|
|
|
|
|
|
|
|
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 2010, non-GAAP net income and non-GAAP basic and
diluted net income per share excludes the effect of ISO
disqualified dispositions and other tax related
adjustments. For fiscal 2009, non-GAAP net income and non-GAAP
basic and diluted net income per share exclude the effects of the
loss on ARS investment disposition and the related legal and
related expenses. 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 28,
2010 |
December 29,
2009 |
December 28,
2010 |
December 29,
2009 |
Net income, as reported |
$ 6,937 |
5.3% |
$1,721 |
1.6% |
$23,162 |
4.6% |
$13,038 |
3.1% |
Loss on ARS investment disposition |
-- |
-- |
1,709 |
1.5 |
-- |
-- |
1,709 |
0.4 |
Legal and related costs for ARS
disposition (1) |
-- |
-- |
473 |
0.4 |
-- |
-- |
588 |
0.1 |
Tax effect - loss on ARS investment
disposition |
-- |
-- |
(481) |
(0.4) |
-- |
-- |
(510) |
(0.1) |
Tax effect - legal and related costs for
ARS disposition |
-- |
-- |
(133) |
(0.1) |
-- |
-- |
(176) |
-- |
Tax benefit from ISO disqualifying
dispositions and other tax related adjustments |
(677) |
(0.5) |
-- |
-- |
(677) |
(0.1) |
-- |
-- |
Non-GAAP net income |
$ 6,260 |
4.8% |
$3,289 |
3.0% |
$22,485 |
4.5% |
$14,649 |
3.5% |
|
|
|
|
|
|
|
|
|
Basic net income per share: |
$ 0.25 |
|
$ 0.06 |
|
$ 0.86 |
|
$ 0.49 |
|
Loss on ARS investment disposition |
-- |
|
0.06 |
|
-- |
|
0.06 |
|
Legal and related costs for ARS
disposition (1) |
-- |
|
0.02 |
|
-- |
|
0.02 |
|
Tax effect - loss on ARS investment
disposition |
-- |
|
(0.02) |
|
-- |
|
(0.02) |
|
Tax effect - legal and related costs for
ARS disposition |
-- |
|
-- |
|
-- |
|
(0.01) |
|
Tax benefit from ISO disqualifying
dispositions and other tax related adjustments |
(0.02) |
|
-- |
|
(0.03) |
|
-- |
|
Non-GAAP basic net income per share |
$ 0.23 |
|
$ 0.12 |
|
$ 0.83 |
|
$ 0.54 |
|
|
|
|
|
|
|
|
|
|
Diluted net income per share: |
$ 0.24 |
|
$ 0.06 |
|
$ 0.82 |
|
$ 0.48 |
|
Loss on ARS investment disposition |
-- |
|
0.06 |
|
-- |
|
0.06 |
|
Legal and related costs for ARS
disposition (1) |
-- |
|
0.02 |
|
-- |
|
0.02 |
|
Tax effect - loss on ARS investment
disposition |
-- |
|
(0.02) |
|
-- |
|
(0.02) |
|
Tax effect - legal and related costs for
ARS disposition |
-- |
|
-- |
|
-- |
|
(0.01) |
|
Tax benefit from ISO disqualifying
dispositions and other tax related adjustments |
(0.02) |
|
-- |
|
(0.02) |
|
-- |
|
Non-GAAP diluted net income per share |
$ 0.22 |
|
$ 0.12 |
|
$ 0.80 |
|
$ 0.53 |
|
|
|
|
|
|
|
|
|
|
(1) Amounts included in the
Company's general and administrative expenses for the thirteen and
fifty-two weeks ended December 29, 2009. |
CONTACT: Greg Levin
BJ's Restaurants, Inc.
(714) 500-2400
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