BJ's Restaurants, Inc. (Nasdaq:BJRI) today reported financial
results for the second quarter of fiscal 2011 that ended on
Tuesday, June 28, 2011.
Highlights for the second quarter, compared to the same quarter
last year, were as follows:
- Total revenues increased 17% to $152.9 million
- Comparable restaurant sales increased 6.9%
- Net income increased 29% to $8.2 million
- Diluted net income per share increased 22% to $0.28
Results for the second quarter of fiscal 2011 include a pre-tax
charge of approximately $1.0 million, or $0.03 per diluted share
related to the settlement of certain California employment
practices lawsuits that have been outstanding since 2009 and 2010,
partially offset by a pre-tax gain of approximately $0.6 million or
$0.02 per diluted share, pursuant to the settlement agreement with
the Company's broker-dealer for its former auction rate securities
portfolio that was fully liquidated in December 2009. Under the
terms of that settlement agreement, the Company is entitled to
potential future recoveries of its loss on that portfolio based on
the performance of the securities through December 2012. During the
second quarter of 2011, certain of those securities were redeemed
at par, thus resulting in additional cash recoveries for the
Company. Excluding the impact of these two aforementioned items on
a non-GAAP basis, net income and net income per diluted share for
the second quarter of 2011 was $8.5 million and $0.29,
respectively. A reconciliation between GAAP financial measures and
non-GAAP financial measures is included in the accompanying
financial data.
"Our leadership team was pleased with our strong top-line and
bottom-line performance during the second quarter of 2011,"
commented Jerry Deitchle, Chairman and Chief Executive Officer.
"Our focus on providing a higher quality, more differentiated
dining experience with broad consumer approachability continues to
resonate with our guests, as evidenced by our strong comparable
sales increase of 6.9% for the quarter, which successfully hurdled
a solid 5.3% increase for the same quarter last year. During the
second quarter, we introduced our highly successful, lower calorie
Enlightened Entrees™ menu offerings and continued implementing our
seating efficiency, expanded beer taps and other initiatives that
provide us with opportunities to further improve our sales
productivity and operational efficiency. Furthermore, our
restaurant operations team continues to achieve increased leverage
within the four walls of our restaurants. Compared to the same
quarter last year, our estimated four-wall restaurant level
operating cash flow margin increased by 90 basis points to
20.9%. One of the most difficult challenges executing any new
restaurant development plan is to preserve the concept's initial
favorable unit economics as it expands further away from its home
base. At BJ's, we continue to demonstrate our ability
to grow from a small regional California restaurant company into a
national restaurant company while preserving and expanding our
four-wall restaurant level margins. With only 108 restaurants
open today in 13 states, we continue to believe that BJ's best
years are still well ahead of us."
As of the end of the second quarter 2011, the Company has
successfully opened five new restaurants of which three new
restaurants opened during the second quarter (Austin, Texas; Las
Vegas, Nevada; and Century City, California). "Sales for our
new restaurants continue to exceed our initial expectations, and we
remain on track to achieve our stated goal to open as many as 12 to
13 new restaurants this year," said Deitchle. The Company
currently expects to open as many as four new restaurants in the
third quarter, of which one has already opened in College Station,
Texas, and as many as three to four new restaurants in the fourth
quarter of this year. 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
second quarter earnings release today, July 21, 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 108 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, along with its qualified third-party craft brewers,
produces and distributes BJ's critically acclaimed handcrafted
beers throughout the chain. The Company's restaurants are located
in California (53), Texas (23), Arizona (6), Colorado (4), Oregon
(2), Nevada (5), 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 and 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 53 of our current 108 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 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.
BJ's Restaurants,
Inc. |
Unaudited Consolidated
Statements of Income |
(Dollars in thousands
except for per share data) |
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks
Ended |
Twenty-Six Weeks
Ended |
|
June 28,
2011 |
June 29,
2010 |
June 28,
2011 |
June 29,
2010 |
Revenues |
$152,887 |
100.0% |
$130,497 |
100.0% |
$297,749 |
100.0% |
$252,183 |
100.0% |
Costs and expenses: |
|
|
|
|
|
|
|
|
Cost of sales |
37,886 |
24.8 |
31,707 |
24.3 |
73,606 |
24.7 |
61,771 |
24.5 |
Labor and benefits |
52,315 |
34.2 |
45,095 |
34.6 |
102,780 |
34.5 |
88,515 |
35.1 |
Occupancy and operating |
31,045 |
20.3 |
27,855 |
21.3 |
60,361 |
20.3 |
53,867 |
21.4 |
General and administrative |
9,794 |
6.4 |
8,961 |
6.9 |
19,712 |
6.6 |
17,435 |
6.9 |
Depreciation and amortization |
8,256 |
5.4 |
7,030 |
5.4 |
16,203 |
5.4 |
13,761 |
5.5 |
Restaurant opening |
1,685 |
1.1 |
1,290 |
1.0 |
2,686 |
0.9 |
2,419 |
1.0 |
Loss on disposal of assets |
283 |
0.2 |
– |
– |
668 |
0.2 |
140 |
0.1 |
Legal settlements |
1,020 |
0.7 |
– |
– |
1,020 |
0.3 |
– |
– |
Total costs and expenses |
142,284 |
93.1 |
121,938 |
93.5 |
277,036 |
93.0 |
237,908 |
94.5 |
Income from operations |
10,603 |
6.9 |
8,559 |
6.5 |
20,713 |
7.0 |
14,275 |
5.5 |
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
Interest income |
56 |
– |
31 |
– |
88 |
– |
60 |
– |
Interest expense |
(27) |
– |
(22) |
– |
(55) |
– |
(43) |
– |
Gain on investment settlement |
614 |
0.4 |
– |
– |
614 |
0.2 |
– |
– |
Other income, net |
96 |
0.1 |
108 |
0.1 |
334 |
0.1 |
344 |
0.1 |
Total other income (expense) |
739 |
0.5 |
117 |
0.1 |
981 |
0.3 |
361 |
0.1 |
Income before income taxes |
11,342 |
7.4 |
8,676 |
6.6 |
21,694 |
7.3 |
14,636 |
5.6 |
|
|
|
|
|
|
|
|
|
Income tax expense |
3,174 |
2.1 |
2,342 |
1.8 |
6,331 |
2.1 |
3,952 |
1.6 |
|
|
|
|
|
|
|
|
|
Net income |
$ 8,168 |
5.3% |
$ 6,334 |
4.8% |
$ 15,363 |
5.2% |
$ 10,684 |
4.0% |
|
|
|
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
|
|
|
Basic |
$ 0.30 |
|
$ 0.23 |
|
$ 0.56 |
|
$ 0.40 |
|
|
|
|
|
|
|
|
|
|
Diluted |
$ 0.28 |
|
$ 0.23 |
|
$ 0.53 |
|
$ 0.38 |
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares
outstanding: |
|
|
|
|
|
|
|
|
Basic |
27,644 |
|
27,041 |
|
27,537 |
|
26,957 |
|
|
|
|
|
|
|
|
|
|
Diluted |
29,161 |
|
27,963 |
|
29,021 |
|
27,852 |
|
|
|
|
|
|
|
|
|
|
Percentages reflected above may
not reconcile due to rounding. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Consolidated
Balance Sheet Information |
(Dollars in
thousands) |
|
|
|
|
June 28, |
December 28, |
|
2011 |
2010 |
Balance Sheet Data (end of
period): |
(unaudited) |
(audited) |
|
|
|
Cash, cash equivalents and short-term
investments |
$ 55,570 |
$ 53,192 |
|
|
|
Non-current investments |
$ 4,976 |
$ 1,005 |
|
|
|
Total assets |
$ 458,210 |
$ 430,085 |
|
|
|
Total long-term debt, including current
portion |
$ -- |
$ -- |
|
|
|
Shareholders' equity |
$ 310,995 |
$ 287,826 |
|
|
|
Supplemental
Information |
(Dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks
Ended |
Twenty-Six Weeks
Ended |
|
June 28,
2011 |
June 29,
2010 |
June 28,
2011 |
June 29,
2010 |
Stock-based compensation
(1) |
|
|
|
|
|
|
|
|
Labor and benefits |
$ 342 |
0.2% |
$ 205 |
0.2% |
$ 706 |
0.2% |
$ 431 |
0.2% |
General and administrative |
753 |
0.5 |
739 |
0.6 |
1,433 |
0.5 |
1,517 |
0.6 |
Total stock-based compensation |
$1,095 |
0.7% |
$ 944 |
0.8% |
$2,139 |
0.7% |
$1,948 |
0.8% |
|
|
|
|
|
|
|
|
|
Unaudited Operating
Data |
|
|
|
|
|
|
|
|
Comparable restaurant sales % change |
6.9% |
|
5.3% |
|
7.3% |
|
4.9% |
|
Restaurants opened during period |
3 |
|
2 |
|
5 |
|
4 |
|
Restaurants open at period-end |
107 |
|
96 |
|
107 |
|
96 |
|
Restaurant operating weeks |
1,362 |
|
1,236 |
|
2,693 |
|
2,435 |
|
|
|
|
|
|
|
|
|
|
(1) Percentages
represent percent of total revenues. |
|
|
|
|
|
|
|
|
|
Reconciliation of Selected GAAP Financial Measures to
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 of fiscal year
2011 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 the thirteen weeks and twenty-six weeks ended June 28, 2011,
non-GAAP net income and non-GAAP basic and diluted net income per
share excludes the effect from the settlement of certain California
employment practices lawsuits and the gain pursuant to the
settlement agreement with the Company's broker-dealer for its
former auction rate securities portfolio that was fully liquidated
in December 2009. 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 these items are non-routine in
nature. Furthermore, the Company believes that presentation of
a measure of non-GAAP net income and non-GAAP net income per share
that excludes such items 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 |
Twenty-Six Weeks
Ended |
|
June
28, 2011 |
June 29,
2010 |
June
28, 2011 |
June 29,
2010 |
Net income, as reported |
$ 8,168 |
5.3% |
$ 6,334 |
4.8% |
$15,363 |
5.2% |
$10,684 |
4.0% |
Legal settlements |
1,020 |
0.7 |
-- |
-- |
1,020 |
0.3 |
-- |
-- |
Gain on investment settlement |
(614) |
(0.4) |
-- |
-- |
(614) |
(0.2) |
-- |
-- |
Tax effect - legal settlements (1) |
(298) |
(0.2) |
-- |
-- |
(298) |
(0.1) |
-- |
-- |
Tax effect - gain on investment
settlement (1) |
179 |
0.1 |
-- |
-- |
179 |
0.1 |
-- |
-- |
Non-GAAP net income |
$ 8,455 |
5.5% |
$ 6,334 |
4.8% |
$15,650 |
5.3% |
$10,684 |
4.0% |
|
|
|
|
|
|
|
|
|
Basic net income per share: |
$ 0.30 |
|
$ 0.23 |
|
$ 0.56 |
|
$ 0.40 |
|
Legal settlements |
0.04 |
|
-- |
|
0.04 |
|
-- |
|
Gain on investment settlement |
(0.02) |
|
-- |
|
(0.02) |
|
-- |
|
Tax effect - legal settlements (1) |
(0.01) |
|
-- |
|
(0.01) |
|
-- |
|
Tax effect - gain on investment
settlement (1) |
0.01 |
|
-- |
|
0.01 |
|
-- |
|
Non-GAAP basic net income per
share |
$ 0.31 |
|
$ 0.23 |
|
$ 0.57 |
|
$ 0.40 |
|
|
|
|
|
|
|
|
|
|
Diluted net income per share: |
$ 0.28 |
|
$ 0.23 |
|
$ 0.53 |
|
$ 0.38 |
|
Legal settlements |
0.03 |
|
-- |
|
0.04 |
|
-- |
|
Gain on investment settlement |
(0.02) |
|
-- |
|
(0.02) |
|
-- |
|
Tax effect - legal settlements (1) |
(0.01) |
|
-- |
|
(0.01) |
|
-- |
|
Tax effect - gain on investment
settlement (1) |
0.01 |
|
-- |
|
0.01 |
|
-- |
|
Non-GAAP basic net income per
share |
$ 0.29 |
|
$ 0.23 |
|
$ 0.54 |
|
$ 0.38 |
|
|
|
|
|
|
|
|
|
|
Per share amounts reflected above
may not reconcile due to rounding. |
|
(1) The tax
effect is based on the Company's annual estimated tax rate of
29.2%. |
CONTACT: Greg Levin
BJ's Restaurants, Inc.
(714) 500-2400
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