BJ's Restaurants, Inc. (Nasdaq:BJRI) today reported financial
results for the third quarter of fiscal 2011 that ended on Tuesday,
September 27, 2011.
Highlights for the third quarter, compared to the same quarter
last year, were as follows:
- Total revenues increased 17.6% to $151 million
- Comparable restaurant sales increased 6.5%
- Net income increased 14.3% to $6.3 million
- Diluted net income per share increased 10% to $0.22
Results for the third quarter of fiscal 2011 include a pre-tax
charge of approximately $1.0 million, or approximately $0.02 per
diluted share on an after-tax basis, related to the estimated cost
to settle a California employment practices class action lawsuit
that has been outstanding since fiscal 2009. On a non-GAAP basis,
excluding the impact of this cost, net income and net income per
diluted share for the third quarter of 2011 were $7.1 million and
$0.24, respectively. A reconciliation between selected GAAP
financial measures and non-GAAP financial measures is included in
the accompanying financial data.
"Our leadership team is pleased to deliver yet another quarter
of solid increases in BJ's comparable restaurant sales, total
revenues and earnings," said Jerry Deitchle, Chairman and
CEO. "Our 6.5% comparable restaurant sales increase for the
quarter successfully hurdled our 6.7% comparable sales increase in
last year's third quarter, which is an impressive accomplishment
for any casual dining restaurant company in this difficult
operating environment. We continue working very hard offering
consumers a higher quality, more contemporary and differentiated
casual dining experience with greater energy, relevance and value
compared to most of our competitors. Additionally, we will
continue to prudently invest in our menu offerings, restaurant
management talent base, technology and facilities with the goal to
further improve our four-wall sales productivity and operating
efficiency. While we believe BJ's has achieved some solid
success in each of those respects in recent years, we have much
more yet to accomplish."
Four new restaurants were opened during the third quarter of
2011 (College Station, TX; Jacksonville, FL; Pembroke Pines, FL;
Brentwood, CA). The Company currently anticipates opening four
new restaurants during the fourth quarter before Thanksgiving, of
which two have already opened in Dublin, Ohio, at the Tuttle Creek
Mall and in Rancho Santa Margarita, California. By doing so,
the Company will achieve its stated goal to open as many as 13 new
restaurants during fiscal 2011 and its targeted increase in total
restaurant operating weeks for the year. "To date, we remain
very pleased with the initial sales volumes of all of our 2011 new
restaurants," commented Deitchle.
Based on the current status of the Company's new restaurant
development pipeline, as many as 15 new restaurants are currently
planned to open during fiscal 2012. Additionally, the Company
currently expects to relocate one of its older, smaller-format
"Pizza and Grill" restaurants to a new location as a larger-format
"Brewhouse" prototype restaurant next year, thus more than doubling
its square footage. "With our potential 2012 new restaurant
locations identified, our outstanding development team is now
focusing on building a solid pipeline for potential 2013 and 2014
restaurant openings," said Deitchle. "At the end of this year,
we will only have 115 restaurants open in 13 states, and we believe
there are many years of high quality, profitable expansion for the
BJ's concept ahead of us." 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
third quarter earnings release today, October 20, 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 113 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 (55), Texas (23), Arizona (6), Colorado (4), Oregon
(2), Nevada (5), Florida (8), Ohio (3), 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 55 of our current 113 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.
Unaudited Consolidated
Statements of Income |
(Dollars in thousands
except for per share data) |
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks
Ended |
Thirty-Nine Weeks
Ended |
|
September 27,
2011 |
September 28,
2010 |
September 27,
2011 |
September 28,
2010 |
Revenues |
$151,425 |
100.0% |
$128,781 |
100.0% |
$449,173 |
100.0% |
$380,964 |
100.0% |
Costs and expenses: |
|
|
|
|
|
|
|
|
Cost of sales |
37,383 |
24.7 |
31,358 |
24.3 |
110,988 |
24.7 |
93,129 |
24.4 |
Labor and benefits |
51,774 |
34.2 |
44,260 |
34.4 |
154,554 |
34.4 |
132,775 |
34.9 |
Occupancy and
operating |
31,987 |
21.1 |
27,426 |
21.3 |
92,348 |
20.6 |
81,293 |
21.3 |
General and
administrative |
9,378 |
6.2 |
8,256 |
6.4 |
29,090 |
6.5 |
25,691 |
6.7 |
Depreciation and
amortization |
8,644 |
5.7 |
7,366 |
5.7 |
24,847 |
5.5 |
21,127 |
5.5 |
Restaurant
opening |
2,403 |
1.6 |
1,799 |
1.4 |
5,089 |
1.1 |
4,218 |
1.1 |
Loss on disposal of
assets |
257 |
0.2 |
884 |
0.7 |
925 |
0.2 |
1,024 |
0.3 |
Legal settlements |
1,017 |
0.7 |
– |
– |
2,037 |
0.5 |
– |
– |
Total costs and expenses |
142,843 |
94.4 |
121,349 |
94.2 |
419,878 |
93.5 |
359,257 |
94.2 |
Income from operations |
8,582 |
5.6 |
7,432 |
5.8 |
29,295 |
6.5 |
21,707 |
5.8 |
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
Interest income |
68 |
– |
32 |
– |
156 |
– |
92 |
– |
Interest expense |
(28) |
– |
(23) |
– |
(83) |
– |
(66) |
– |
Gain on investment
settlement |
– |
– |
– |
– |
614 |
0.1 |
– |
– |
Other income, net |
57 |
– |
147 |
0.1 |
391 |
0.1 |
491 |
0.1 |
Total other income (expense) |
97 |
– |
156 |
0.1 |
1,078 |
0.2 |
517 |
0.1 |
Income before income taxes |
8,679 |
5.6 |
7,588 |
5.9 |
30,373 |
6.7 |
22,224 |
5.9 |
|
|
|
|
|
|
|
|
|
Income tax expense |
2,343 |
1.5 |
2,047 |
1.6 |
8,674 |
1.9 |
5,999 |
1.6 |
|
|
|
|
|
|
|
|
|
Net income |
$ 6,336 |
4.1% |
$ 5,541 |
4.3% |
$ 21,699 |
4.8% |
$ 16,225 |
4.3% |
|
|
|
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
|
|
|
Basic |
$ 0.23 |
|
$ 0.20 |
|
$ 0.79 |
|
$ 0.60 |
|
|
|
|
|
|
|
|
|
|
Diluted |
$ 0.22 |
|
$ 0.20 |
|
$ 0.75 |
|
$ 0.58 |
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares
outstanding: |
|
|
|
|
|
|
|
|
Basic |
27,704 |
|
27,113 |
|
27,593 |
|
27,009 |
|
|
|
|
|
|
|
|
|
|
Diluted |
29,223 |
|
28,102 |
|
29,093 |
|
27,943 |
|
|
|
|
|
|
|
|
|
|
Percentages reflected above may
not reconcile due to rounding. |
|
|
|
|
|
|
|
Selected Consolidated
Balance Sheet Information |
|
(Dollars in
thousands) |
|
|
|
|
|
September 27, 2011
(unaudited) |
December 28, 2010
(audited) |
Balance Sheet Data (end of
period): |
|
|
|
|
|
Cash, cash equivalents and short-term
investments |
$ 40,301 |
$ 53,192 |
|
|
|
Non-current investments |
$ 9,077 |
$ 1,005 |
|
|
|
Total assets |
$ 467,285 |
$ 430,085 |
|
|
|
Total long-term debt, including current
portion |
$ -- |
$-- |
|
|
|
Shareholders' equity |
$ 318,764 |
$ 287,826 |
|
Supplemental
Information |
(Dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks
Ended |
Thirty-Nine Weeks
Ended |
|
September 27,
2011 |
September 28,
2010 |
September 27,
2011 |
September 28,
2010 |
Stock-based compensation
(1) |
|
|
|
|
|
|
|
|
Labor and benefits |
$ 465 |
0.3% |
$ 341 |
0.3% |
$1,172 |
0.3% |
$ 772 |
0.2% |
General and administrative |
771 |
0.5 |
661 |
0.5 |
2,204 |
0.5 |
2,178 |
0.6 |
Total stock-based compensation |
$1,236 |
0.8% |
$1,002 |
0.8% |
$3,376 |
0.8% |
$2,950 |
0.8% |
|
|
|
|
|
|
|
|
|
Unaudited Operating
Data |
|
|
|
|
|
|
|
|
Comparable restaurant sales % change |
6.5% |
|
6.7% |
|
7.1% |
|
5.8% |
|
Restaurants opened during period |
4 |
|
4 |
|
9 |
|
8 |
|
Restaurants open at period-end |
111 |
|
100 |
|
111 |
|
100 |
|
Restaurant operating weeks |
1,407 |
|
1,272 |
|
4,100 |
|
3,707 |
|
|
|
|
|
|
|
|
|
|
(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 third 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 ended September 27, 2011, non-GAAP net
income and non-GAAP basic and diluted net income per share excludes
the effect from the settlement of a California employment practices
class action lawsuit. For the thirty-nine weeks ended
September 27, 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 generally
considered 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 |
Thirty-Nine Weeks
Ended |
|
September
27, 2011 |
September 28,
2010 |
September 27,
2011 |
September 28,
2010 |
Net income, as reported |
$ 6,336 |
4.1% |
$ 5,541 |
4.3% |
$21,699 |
4.8% |
$ 16,225 |
4.3% |
Legal settlements |
1,017 |
0.7 |
-- |
-- |
2,037 |
0.5 |
-- |
-- |
Gain on investment
settlement |
-- |
-- |
-- |
-- |
(614) |
0.1 |
-- |
-- |
Tax effect - legal settlements
(1) |
(290) |
(0.2) |
-- |
-- |
(582) |
(0.1) |
-- |
-- |
Tax effect - gain on investment
settlement (1) |
-- |
-- |
-- |
-- |
175 |
-- |
-- |
-- |
Non-GAAP net income |
$ 7,063 |
4.6% |
$ 5,541 |
4.3% |
$22,715 |
5.3% |
$ 16,225 |
4.3% |
|
|
|
|
|
|
|
|
|
Basic net income per share, as reported |
$ 0.23 |
|
$ 0.20 |
|
$ 0.79 |
|
$ 0.60 |
|
Legal settlements |
0.04 |
|
-- |
|
0.07 |
|
-- |
|
Gain on investment
settlement |
-- |
|
-- |
|
(0.02) |
|
|
|
Tax effect - legal settlements
(1) |
(0.01) |
|
-- |
|
(0.02) |
|
-- |
|
Tax effect - gain on investment
settlement (1) |
-- |
|
-- |
|
0.01 |
|
|
|
Non-GAAP basic net income per
share |
$ 0.25 |
|
$ 0.20 |
|
$ 0.82 |
|
$ 0.60 |
|
|
|
|
|
|
|
|
|
|
Diluted net income per share, as
reported |
$ 0.22 |
|
$ 0.20 |
|
$ 0.75 |
|
$ 0.58 |
|
Legal settlements |
0.03 |
|
-- |
|
0.07 |
|
-- |
|
Gain on investment
settlement |
-- |
|
-- |
|
(0.02) |
|
|
|
Tax effect - legal settlements
(1) |
(0.01) |
|
-- |
|
(0.02) |
|
-- |
|
Tax effect - gain on investment
settlement (1) |
-- |
|
-- |
|
0.01 |
|
|
|
Non-GAAP diluted net income per
share |
$ 0.24 |
|
$ 0.20 |
|
$ 0.78 |
|
$ 0.58 |
|
|
|
|
|
|
|
|
|
|
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 28.6%. |
|
|
|
|
|
CONTACT: Greg Levin
BJ's Restaurants, Inc.
(714) 500-2400
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