BJ’s Restaurants, Inc. (NASDAQ: BJRI) today reported financial
results for its 2018 fourth quarter and fiscal year ended
Tuesday, January 1, 2019.
Fourth Quarter 2018 Highlights Compared
to Fourth Quarter 2017
- Total revenues grew 7.4% to $280.5 million
- Total restaurant operating weeks increased approximately
3.0%
- Comparable restaurant sales rose 4.5%
- Net income of $10.7 million compared to $23.5 million- Fourth
quarter 2017 net income included a tax benefit of $15.7 million
from the revaluation of the Company’s net deferred tax liabilities
as a result of the Tax Cuts and Jobs Act of 2017 (“Tax Act”)- Net
income for the 2018 fourth quarter increased 37.3% when excluding
the 2017 fourth quarter tax benefit
- Diluted net income per share of $0.49 compared to $1.12- Fourth
quarter 2017 diluted net income per share included a $0.75 per
share benefit from the revaluation of the Company’s net deferred
tax liabilities as a result of the Tax Cuts and Jobs Act of 2017
(“Tax Act”)- Diluted net income per share for the 2018 fourth
quarter increased 32.4% when excluding the 2017 fourth quarter tax
benefit
Fiscal 2018 Highlights Compared to
Fiscal 2017
- Total revenues grew 8.3% to $1.1 billion
- Total restaurant operating weeks increased approximately
3.6%
- Comparable restaurant sales increased 5.3%
- Net income increased 13.5% to $50.8 million from $44.8 million-
Fiscal 2018 net income includes a $3.9 million excess tax benefit
from equity awards- Fiscal 2017 net income included a tax benefit
of $15.7 million from the revaluation of the Company’s net deferred
tax liabilities, as a result of the Tax Cuts and Jobs Act of 2017
(“Tax Act”), partially offset by $2.8 million of pre-tax expenses
related to hurricanes Harvey and Irma, a reorganization at the
Company’s restaurant support center and the write-off of the
remaining net book value of certain convection ovens and point of
sale terminals as a result of our completed transition to new slow
roasting ovens and server handheld tablets.- Net income increased
52.5% when excluding the above mentioned net benefits in fiscal
2018 and 2017
- Diluted net income per share increased 14.5% to $2.35 from
$2.06- Fiscal 2018 diluted net income per share includes an $0.18
excess tax benefit from equity awards- Fiscal 2017 diluted net
income per share included a tax benefit of $0.72 related to the
revaluation of the Company’s net deferred tax liabilities,
partially offset by $0.13 in total charges related to hurricanes
Harvey and Irma, a reorganization at the Company’s restaurant
support center and the write-off of the remaining net book value of
certain convection ovens and point of sale terminals as a result of
our completed transition to new slow roasting ovens and server
handheld tablets.- Diluted net income per share increased 53.9%
when excluding the above mentioned net benefits in fiscal 2018 and
2017
“BJ’s strong fourth quarter and full year
revenue, comparable restaurant sales increases and restaurant and
operating margin growth reflect the continuing value being derived
from our sales, traffic and hospitality initiatives,” commented
Greg Trojan, Chief Executive Officer. “These ongoing initiatives
drove another quarter of solid growth across all of our key
metrics, with fourth quarter comparable restaurant sales rising
4.5% and guest traffic increasing 1.1%, which contributed to
restaurant margin and operating margin growth of 50 and 90 basis
points, respectively. Together, these factors resulted in fourth
quarter net income and diluted net income per share growth of 37.3%
and 32.4%, respectively, when excluding non-cash tax benefits in
the year ago period. On behalf of our senior management, I want to
thank our 22,000 plus team members for their continued hard work
and dedication to BJ’s. Because of their dual focus on high
quality, memorable guest experiences and industry leading
efficiency, we generated over $1.1 billion in fiscal 2018 sales and
$140.3 million in adjusted EBITDA.”
“The comprehensive range of sales and
hospitality initiatives we implemented over the last several years
has continued to drive positive comparable restaurant sales in
2019, despite some recent sales momentum challenges from severe
weather throughout much of the country. For 2019, we plan to
continue focusing our sales building initiatives around new slow
roast menu items, Daily Brewhouse Specials and EnLIGHTened
Entrées®, while continuing to grow our off-premise channels through
enhanced take-out and delivery technology and large party/catering.
We also plan on rolling out a new kitchen and prep efficiency
initiative in all of our restaurants, thereby further elevating
hospitality levels and creating continued margin improvement
opportunities. This new kitchen initiative is not targeted at
reducing labor, but will further enhance our higher quality
positioning in the casual dining space as we focus on more
efficiently allocating kitchen labor to improve our food
preparation, kitchen organization, food safety and cook speed. I am
confident that the foundation we have built over the last several
years will drive another year of growth and success for BJ’s as we
are positioned to again drive top line sales and shareholder
value,” said Trojan.
In the fourth quarter of fiscal 2018, BJ’s
opened one new restaurant in Cincinnati, Ohio, thereby achieving
its goal of opening five new restaurants in fiscal 2018. “Our class
of 2018 new restaurants continues to exceed our sales expectations,
and we are excited that the majority of our growth still remains
ahead of us,” Trojan continued. “Our 2019 development pipeline is
in excellent shape to meet our current plan of opening seven to
nine new restaurants. While we plan to accelerate the pace of our
restaurant openings this year, we will maintain a balanced approach
to new restaurant growth with new restaurant quality and
hospitality taking precedence over new restaurant quantity, a
discipline that has served BJ’s, our guests and shareholders well
over the last few years. This approach has provided the financial
flexibility to allocate our strong cash flows to share repurchases,
dividend payments and other initiatives that can enhance
shareholder value.”
During the fourth quarter of 2018, the Company
repurchased and retired approximately 247,000 shares of its common
stock at a cost of approximately $13.6 million. Since the Company’s
first share repurchase authorization was approved in April 2014,
BJ’s has repurchased and retired approximately 9.8 million shares
at a cost of approximately $377.8 million and has reduced its
outstanding share count by approximately 32%. The Company currently
has approximately $22.2 million remaining under its authorized $400
million share repurchase program.
The Company’s Board of Directors declared a cash
dividend of $0.12 per share of common stock payable March 26, 2019,
to shareholders of record at the close of business on March 12,
2019. While the Company intends to pay quarterly cash dividends for
the foreseeable future, dividends will be reviewed quarterly and
declared by the Board of Directors at its discretion.
Investor Conference Call and
Webcast
BJ’s Restaurants, Inc. will conduct a conference
call on its fourth quarter and fiscal year 2018 earnings release
today, February 21, 2019, at 2:00 p.m. Pacific Time (5:00 p.m.
Eastern Time). Senior management will discuss the financial results
and host a question and answer session. In addition, a live audio
webcast of the call will be accessible to the public on the
“Investors” page of the Company’s website located at
http://www.bjsrestaurants.com, and a recording of the webcast will
be archived on the site for 30 days following the live event.
Please allow 15 minutes to register and download and install any
necessary software.
About BJ’s Restaurants,
Inc.
BJ’s Restaurants, Inc. (“BJ’s”) is a national
brand with brewhouse roots and a menu with over 140 offerings where
craft matters. BJ’s broad menu has something for everyone:
slow-roasted entrees, like prime rib, BJ’s EnLIGHTened Entrees®
including Cherry Chipotle Glazed Salmon, signature deep dish pizza
and the often imitated, but never replicated world-famous Pizookie®
dessert. BJ’s has been a pioneer in the craft brewing world since
1996, and takes pride in serving BJ’s award-winning proprietary
handcrafted beers, brewed at its brewing operations in five states
and by independent third-party craft brewers. The BJ’s experience
offers high-quality ingredients, bold flavors, moderate prices,
sincere service and a cool, contemporary atmosphere. Founded in
1978, BJ’s owns and operates 202 casual dining restaurants. All
restaurants offer dine-in, take-out, delivery and large party
catering. BJ’s restaurants are located in 27 states: Alabama,
Arizona, Arkansas, California, Colorado, Florida, Indiana, Kansas,
Kentucky, Louisiana, Maryland, Michigan, Nevada, New Jersey, New
Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon,
Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas,
Virginia and Washington. For more BJ’s information, visit
http://www.bjsrestaurants.com.
Forward-Looking Statements
Disclaimer
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 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 and margin growth in future
periods, total potential domestic capacity, the success of various
sales-building and productivity initiatives, future guest traffic
trends, construction cost savings initiatives and the number and
timing of new restaurants expected to be opened in future periods.
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 new restaurant openings,
(ii) construction delays, (iii) labor shortages, (iv)
increases in minimum wage and other employment related costs,
including compliance with the Patient Protection and Affordable
Care Act and minimum salary requirements for exempt team members,
(v) the effect of credit and equity market disruptions on our
ability to finance our continued expansion on acceptable terms,
(vi) food quality and health concerns and the effect of negative
publicity about us, our restaurants, other restaurants, or others
across the food supply chain, due to food borne illness or other
reasons, whether or not accurate, (vii) factors that impact
California, Texas and Florida, where a substantial number of our
restaurants are located, (viii) restaurant and brewery industry
competition, (ix) impact of certain brewing business
considerations, including without limitation, dependence upon
suppliers, third party contractors and distributors, and related
hazards, (x) consumer spending trends in general for casual dining
occasions, (xi) potential uninsured losses and liabilities due to
limitations on insurance coverage, (xii) fluctuating commodity
costs and availability of food in general and certain raw materials
related to the brewing of our craft beers and energy requirements,
(xiii) trademark and service-mark risks, (xiv) government
regulations and licensing costs, (xv) beer and liquor regulations,
(xvi) loss of key personnel, (xvii) inability to secure acceptable
sites, (xviii) legal proceedings, (xix) other general economic and
regulatory conditions and requirements, (xx) the success of our key
sales-building and related operational initiatives, (xxi) any
failure of our information technology or security breaches with
respect to our electronic systems and data, and (xxii) 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.
For further information, please contact Greg
Levin of BJ’s Restaurants, Inc. at (714) 500-2400 or JCIR at (212)
835-8500 or at bjri@jcir.com.
| BJ’s Restaurants, Inc. |
| Consolidated Statements of
Income |
| (Dollars in thousands except for per share
data) |
| |
|
|
|
|
| |
Fourth Quarter Ended |
|
Fiscal Year Ended |
|
| |
January 1,
2019(unaudited) |
January 2,
2018(unaudited) |
|
January 1,
2019(unaudited) |
January 2, 2018 |
|
| Revenues |
$280,523 |
100.0% |
$261,140 |
100.0% |
|
$1,116,948 |
100.0% |
$1,031,782 |
100.0% |
|
| Restaurant operating costs (excluding
depreciation and amortization): |
|
|
|
|
|
|
|
|
|
|
| Cost of sales |
71,356 |
25.4 |
68,242 |
26.1 |
|
281,953 |
25.2 |
268,707 |
26.0 |
|
| Labor and benefits |
99,265 |
35.4 |
93,496 |
35.8 |
|
400,745 |
35.9 |
371,220 |
36.0 |
|
| Occupancy and operating |
61,768 |
22.0 |
55,809 |
21.4 |
|
239,446 |
21.4 |
219,863 |
21.3 |
|
| General and administrative |
14,806 |
5.3 |
13,911 |
5.3 |
|
60,449 |
5.4 |
55,447 |
5.4 |
|
| Depreciation and amortization |
17,679 |
6.3 |
17,434 |
6.7 |
|
70,439 |
6.3 |
68,665 |
6.7 |
|
| Restaurant opening |
463 |
0.2 |
668 |
0.3 |
|
2,298 |
0.2 |
3,873 |
0.4 |
|
| Loss on disposal and impairment of
assets |
999 |
0.4 |
607 |
0.2 |
|
4,048 |
0.4 |
4,775 |
0.5 |
|
| Natural disaster and related |
- |
- |
- |
- |
|
- |
- |
905 |
0.1 |
|
| Severance and legal
settlements |
- |
- |
- |
- |
|
- |
- |
423 |
- |
|
| Total costs and expenses |
266,336 |
94.9 |
250,167 |
95.8 |
|
1,059,378 |
94.8 |
993,878 |
96.3 |
|
| Income from operations |
14,187 |
5.1 |
10,973 |
4.2 |
|
57,570 |
5.2 |
37,904 |
3.7 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Other (expense) income: |
|
|
|
|
|
|
|
|
|
|
| Interest expense, net |
(1,012) |
(0.4) |
(1,323) |
(0.5) |
|
(4,838) |
(0.4) |
(4,501) |
(0.4) |
|
| Other (expense) income, net |
(955) |
(0.3) |
513 |
0.2 |
|
(735) |
(0.1) |
1,987 |
0.2 |
|
| Total other expense |
(1,967) |
(0.7) |
(810) |
(0.3) |
|
(5,573) |
(0.5) |
(2,514) |
(0.2) |
|
| Income before income taxes |
12,220 |
4.4 |
10,163 |
3.9 |
|
51,997 |
4.7 |
35,390 |
3.4 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Income tax expense (benefit) |
1,535 |
0.5 |
(13,323) |
(5.1) |
|
1,187 |
0.1 |
(9,390) |
(0.9) |
|
| |
|
|
|
|
|
|
|
|
|
|
| Net income |
$10,685 |
3.8% |
$23,486 |
9.0% |
|
$50,810 |
4.5% |
$44,780 |
4.3% |
|
| |
|
|
|
|
|
|
|
|
|
|
| Net income per share: |
|
|
|
|
|
|
|
|
|
|
| Basic |
$0.50 |
|
$1.14 |
|
|
$2.42 |
|
$2.10 |
|
|
| Diluted |
$0.49 |
|
$1.12 |
|
|
$2.35 |
|
$2.06 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Weighted average number of shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
| Basic |
21,247 |
|
20,637 |
|
|
20,958 |
|
21,374 |
|
|
| Diluted |
21,791 |
|
20,988 |
|
|
21,584 |
|
21,772 |
|
|
Percentages reflected above may not reconcile due
to rounding.
| BJ’s Restaurants, Inc. |
| Selected Consolidated Balance Sheet
Information |
| (Dollars in thousands) |
| |
January 1, 2019(unaudited) |
|
January 2, 2018 |
| Cash and cash
equivalents |
$29,224 |
|
$24,335 |
| Total assets |
$695,107 |
|
$683,550 |
| Total debt |
$95,000 |
|
$63,500 |
| Shareholders’ equity |
$309,221 |
|
$258,729 |
| BJ’s Restaurants, Inc. |
| Unaudited Supplemental
Information |
| (Dollars in thousands) |
| |
|
|
|
|
|
|
|
|
|
| |
Fourth Quarter Ended |
|
Fiscal Year Ended |
| |
January 1, 2019 |
January 2, 2018 |
|
January 1, 2019 |
January 2, 2018 |
| Stock-based
compensation (1) |
|
|
|
|
|
|
|
|
|
| Labor and benefits |
$554 |
0.2% |
$473 |
0.2% |
|
$2,253 |
0.2% |
$1,877 |
0.2% |
| General and
administrative |
1,444 |
0.5 |
1,202 |
0.5 |
|
6,003 |
0.5 |
5,069 |
0.5 |
| Total stock-based
compensation |
$1,998 |
0.7% |
$1,675 |
0.6% |
|
$8,256 |
0.7% |
$6,946 |
0.7% |
| |
|
|
|
|
|
|
|
|
|
| Operating
Data |
|
|
|
|
|
|
|
|
|
| Comparable restaurant
sales % change |
4.5% |
|
1.6% |
|
|
5.3% |
|
(0.7%) |
|
| Restaurants opened
during period |
1 |
|
2 |
|
|
5 |
|
10 |
|
| Restaurants open at
period-end |
202 |
|
197 |
|
|
202 |
|
197 |
|
| Restaurant operating
weeks |
2,619 |
|
2,544 |
|
|
10,370 |
|
10,012 |
|
|
(1) |
Percentages represent percent of total revenues. |
Reconciliation of Selected GAAP Financial Measures to
Non-GAAP Adjusted 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 adjusted financial measures. Each of these
non-GAAP adjusted financial measures is adjusted from results based
on GAAP to exclude certain expenses and benefits. As a general
matter, the Company uses these non-GAAP adjusted financial measures
in addition to and in conjunction with results presented in
accordance with GAAP to help analyze the performance of its core
business. The Company believes that such non-GAAP adjusted
financial 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 adjusted measures may result in confusion
among analysts and others and a misplaced perception that the
Company’s results have underperformed or exceeded expectations.
These non-GAAP adjusted financial measures
reflect an additional way of viewing aspects of the Company’s
operations that, when viewed with the reconciliation to the
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 adjusted financial 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 fourth quarter ended January 2, 2018,
non-GAAP adjusted net income and non-GAAP adjusted diluted net
income per share excludes the tax benefit resulting from changes in
U.S. tax law.
For fiscal year 2017, non-GAAP adjusted net
income and non-GAAP adjusted diluted net income per share excludes
the write-off of the remaining net book value of certain convection
ovens and point of sale terminals, as a result of our new slow
roasting oven and server handheld tablet rollouts, natural disaster
and related expense resulting from Hurricanes Harvey/Irma, as well
as severance related expenses incurred to reorganize the Company’s
restaurant support center, offset by the tax benefit resulting from
changes in U.S. tax law.
| Reconciliation of Non-GAAP Adjusted Financial
Measures |
| (Unaudited, dollars in thousands except for per
share data) |
| |
|
| |
Fourth Quarter Ended |
| |
January 1, 2019 |
January 2, 2018 |
|
|
$ |
% |
PerShare |
$ |
% |
PerShare |
| Net income &
diluted net income per share, as reported |
$10,685 |
3.8% |
$0.49 |
$23,486 |
9.0% |
$1.12 |
|
Re-measurement of net deferred tax liability to new corporate tax
rate |
- |
- |
- |
(15,705) |
(6.0) |
(0.75) |
| Non-GAAP adjusted net
income & diluted net income per share |
$10,685 |
3.8% |
$0.49 |
$ 7,781 |
3.0% |
$0.37 |
| |
|
| |
Fiscal Year Ended |
| |
January 1, 2019 |
January 2, 2018 |
|
|
$ |
% |
PerShare |
$ |
% |
PerShare |
| Net income &
diluted net income per share, as reported |
$50,810 |
4.5% |
$2.35 |
$44,780 |
4.3% |
$2.06 |
| Loss on
disposal and impairment of certain assets |
- |
- |
- |
1,426 |
0.1 |
0.07 |
| Natural
disaster related expenses |
- |
- |
- |
905 |
0.1 |
0.04 |
| Severance
related expenses |
- |
- |
- |
423 |
- |
0.02 |
| Income
tax effect of reconciling items (1) |
- |
- |
- |
(1,057) |
(0.1) |
(0.05) |
|
Re-measurement of net deferred tax liability to new corporate tax
rate |
- |
- |
- |
(15,705) |
(1.5) |
(0.72) |
| Non-GAAP adjusted net
income & diluted net income per share |
$50,810 |
4.5% |
$2.35 |
$30,772 |
3.0% |
$1.41 |
Per share amounts and percentages reflected above
may not reconcile due to rounding. Percentages represent percent of
total revenues.
| (1) |
The income tax effect of
the reconciling items was calculated based on the change in the tax
provision calculation after adjusting for the reconciling
items. |
Restaurant Level Operating
Margin
Restaurant level operating margin, a non-GAAP
financial measure, is equal to the revenues generated by our
restaurants less their direct operating costs which consist of cost
of sales, labor and benefits, and occupancy and operating costs.
This performance measure includes only the costs that restaurant
level managers can directly control and excludes other operating
costs that are essential to conduct the Company’s business, as
detailed in the table below. Management uses restaurant level
operating margin as a supplemental measure of restaurant
performance. Management believes restaurant level operating margin
is useful to investors in that it highlights trends in our core
business that may not otherwise be apparent to investors when
relying solely on GAAP financial measures. Because other companies
may calculate restaurant level margin differently than we do,
restaurant level margin as presented herein may not be comparable
to similarly titled measures reported by other companies.
A reconciliation of income from operations to
restaurant level operating margin for the fourth quarter and fiscal
year ended January 1, 2019 and January 2, 2018 is set forth
below:
| Supplemental Financial Information –
Restaurant Level Operating Margin |
| (Unaudited, dollars in
thousands) |
| |
|
|
|
| |
Fourth Quarter Ended |
|
Fiscal Year Ended |
| |
January 1, 2019 |
January 2, 2018 |
|
January 1, 2019 |
January 2, 2018 |
| Income from
operations |
$14,187 |
5.1% |
$10,973 |
4.2% |
|
$57,570 |
5.2% |
$37,904 |
3.7% |
| General
and administrative |
14,806 |
5.3 |
13,911 |
5.3 |
|
60,449 |
5.4 |
55,447 |
5.4 |
|
Depreciation and amortization |
17,679 |
6.3 |
17,434 |
6.7 |
|
70,439 |
6.3 |
68,665 |
6.7 |
|
Restaurant opening |
463 |
0.2 |
668 |
0.3 |
|
2,298 |
0.2 |
3,873 |
0.4 |
| Loss on
disposal and impairment of assets |
999 |
0.4 |
607 |
0.2 |
|
4,048 |
0.4 |
4,775 |
0.5 |
| Natural
disaster and related |
- |
- |
- |
- |
|
- |
- |
905 |
0.1 |
| Severance
related expenses |
- |
- |
- |
- |
|
- |
- |
423 |
- |
| Restaurant level
operating margin |
$48,134 |
17.2% |
$43,593 |
16.7% |
|
$194,804 |
17.4% |
$171,992 |
16.7% |
Percentages above represent percent of total
revenues and may not reconcile due to rounding.
Adjusted Earnings Before Interest, Taxes, Depreciation
and Amortization (“Adjusted EBITDA”)
Adjusted EBITDA represents the sum of net
income, interest expense, income tax expense (benefit),
depreciation and amortization, stock-based compensation expense,
other expense (income), loss on disposal and impairment of assets
and certain expenses or benefits detailed within the reconciliation
below. Management uses Adjusted EBITDA as a supplemental measure of
our performance. Management believes these measures are useful to
investors in that they highlight cash flow and trends in our core
business that may not otherwise be apparent to investors when
relying solely on GAAP financial measures. Because other companies
may calculate these measures differently than we do, Adjusted
EBITDA as presented herein may not be comparable to similarly
titled measures reported by other companies.
| Supplemental Financial Information – Net
Income to Adjusted EBITDA |
| (Unaudited, dollars in
thousands) |
| |
|
|
|
| |
Fourth Quarter Ended |
|
Fiscal Year Ended |
| |
January 1, 2019 |
January 2, 2018 |
|
January 1, 2019 |
January 2, 2018 |
| Net Income |
$10,685 |
3.8% |
$23,486 |
9.0% |
|
$50,810 |
4.5% |
$44,780 |
4.3% |
| Interest
expense, net |
1,012 |
0.4 |
1,323 |
0.5 |
|
4,838 |
0.4 |
4,501 |
0.4 |
| Income
tax expense (benefit) |
1,535 |
0.5 |
(13,323) |
(5.1) |
|
1,187 |
0.1 |
(9,390) |
(0.9) |
|
Depreciation and amortization |
17,679 |
6.3 |
17,434 |
6.7 |
|
70,439 |
6.3 |
68,665 |
6.7 |
|
Stock-based compensation expense |
1,998 |
0.7 |
1,675 |
0.6 |
|
8,256 |
0.7 |
6,946 |
0.7 |
| Other
expense (income), net |
955 |
0.3 |
(513) |
0.2 |
|
735 |
0.1 |
(1,987) |
(0.2) |
| Loss on
disposal and impairment of assets |
999 |
0.4 |
607 |
0.2 |
|
4,048 |
0.4 |
4,775 |
0.5 |
| Natural
disaster and related |
- |
- |
- |
- |
|
- |
- |
905 |
0.1 |
| Severance
related expenses |
- |
- |
- |
- |
|
- |
- |
423 |
- |
| Adjusted EBITDA |
$34,863 |
12.4% |
$30,689 |
11.8% |
|
$140,313 |
12.6% |
$119,618 |
11.6% |
ASU 2016-10 Reconciliation
The following tables illustrate the impact from
the adoption of ASU 2016-10 on our results for the fourth quarter
and fiscal year ended January 1, 2019. As a general matter, these
non-GAAP adjusted financial measures and the related reconciliation
should be used in conjunction with results presented in accordance
with GAAP. The Company believes this reconciliation provides
analysts and others in the investment community a way to analyze
and compare the Company’s results to prior period results in which
ASU 2016-10 was not applied.
| BJ’s Restaurants, Inc. |
| Supplemental Financial
Information – ASU 2016-10 Reconciliation |
| (Dollars in thousands except for
per share data) |
| |
|
|
| |
Fourth Quarter Ended |
| |
January 1,
2019 |
January 2, 2018 |
| |
NewStandard |
TotalAdjustments |
|
PreviousStandard |
PreviousStandard |
| Revenues |
$280,523 |
$(744) |
(1) |
$279,779 |
$261,140 |
| Restaurant operating costs (excluding
depreciation and amortization): |
|
|
|
|
|
| Cost of sales |
71,356 |
- |
|
71,356 |
68,242 |
| Labor and benefits |
99,265 |
- |
|
99,265 |
93,496 |
| Occupancy and
operating |
61,768 |
(2) |
(2) |
61,766 |
55,809 |
| General and
administrative |
14,806 |
- |
|
14,806 |
13,911 |
| Depreciation and
amortization |
17,679 |
- |
|
17,679 |
17,434 |
| Restaurant opening |
463 |
- |
|
463 |
668 |
| Loss on disposal and
impairment of assets |
999 |
- |
|
999 |
607 |
| Natural disaster and
related |
- |
- |
|
- |
- |
| Severance related
expenses |
- |
- |
|
- |
- |
| Total costs and expenses |
266,336 |
(2) |
|
266,334 |
250,167 |
| Income from
operations |
14,187 |
(742) |
|
13,445 |
10,973 |
| |
|
|
|
|
|
| Other (expense) income: |
|
|
|
|
|
| Interest expense,
net |
(1,012) |
- |
|
(1,012) |
(1,323) |
| Other (expense) income,
net |
(955) |
300 |
(3) |
(655) |
513 |
| Total other (expense) income |
(1,967) |
300 |
|
(1,667) |
(810) |
| Income before income
taxes |
12,220 |
(442) |
|
11,778 |
10,163 |
| |
|
|
|
|
|
| Income tax (benefit) expense |
1,535 |
(109) |
(4) |
1,426 |
(13,323) |
| |
|
|
|
|
|
| Net income |
$10,685 |
$(333) |
|
$10,352 |
$23,486 |
| |
|
|
|
|
|
| Net income per share: |
|
|
|
|
|
| Basic |
$0.50 |
$(0.02) |
|
$0.49 |
$1.14 |
| Diluted |
$0.49 |
$(0.02) |
|
$0.48 |
$1.12 |
| Weighted average number of shares
outstanding: |
|
|
|
|
|
| Basic |
21,247 |
21,247 |
|
21,247 |
20,637 |
| Diluted |
21,791 |
21,791 |
|
21,791 |
20,988 |
| (1) |
Amount represents
approximately $0.4 million of revenues recognized related to
Premier Rewards loyalty points redeemed, coupled with approximately
$0.3 million of gift card breakage revenue previously recorded in
“Other (expense) income, net” prior to the adoption of ASU
2016-10. |
| (2) |
Prior to the adoption of
ASU 2016-10, the estimated food and beverage cost of the loyalty
rewards was charged to “Occupancy and operating” expenses. |
| (3) |
Prior to the adoption of
ASU 2016-10, gift card breakage revenue was recorded as “Other
(expense) income, net.” |
| (4) |
The income tax effect of
the reconciling items was calculated based on our statutory income
tax rate for fiscal year 2018. |
| BJ’s Restaurants, Inc. |
| Supplemental Financial
Information – ASU 2016-10 Reconciliation |
| (Dollars in thousands except for
per share data) |
| |
|
|
| |
Fiscal Year Ended |
| |
January 1,
2019 |
January 2, 2018 |
| |
NewStandard |
TotalAdjustments |
|
PreviousStandard |
PreviousStandard |
| Revenues |
$1,116,948 |
$(479) |
(1) |
$1,116,469 |
$1,031,782 |
| Restaurant operating costs (excluding
depreciation and amortization): |
|
|
|
|
|
| Cost of sales |
281,953 |
- |
|
281,953 |
268,707 |
| Labor and benefits |
400,745 |
- |
|
400,745 |
371,220 |
| Occupancy and
operating |
239,446 |
226 |
(2) |
239,672 |
219,863 |
| General and
administrative |
60,449 |
- |
|
60,449 |
55,447 |
| Depreciation and
amortization |
70,439 |
- |
|
70,439 |
68,665 |
| Restaurant opening |
2,298 |
- |
|
2,298 |
3,873 |
| Loss on disposal and
impairment of assets |
4,048 |
- |
|
4,048 |
4,775 |
| Natural disaster and
related |
- |
- |
|
- |
905 |
| Severance related
expenses |
- |
- |
|
- |
423 |
| Total costs and expenses |
1,059,378 |
226 |
|
1,059,604 |
993,878 |
| Income from
operations |
57,570 |
(705) |
|
56,865 |
37,904 |
| |
|
|
|
|
|
| Other (expense) income: |
|
|
|
|
|
| Interest expense,
net |
(4,838) |
- |
|
(4,838) |
(4,501) |
| Other (expense) income,
net |
(735) |
1,370 |
(3) |
635 |
1,987 |
| Total other (expense) income |
(5,573) |
1,370 |
|
(4,203) |
(2,514) |
| Income before income
taxes |
51,997 |
665 |
|
52,662 |
35,390 |
| |
|
|
|
|
|
| Income tax (benefit) expense |
1,187 |
164 |
(4) |
1,351 |
(9,390) |
| |
|
|
|
|
|
| Net income |
$50,810 |
$501 |
|
$51,311 |
$44,780 |
| |
|
|
|
|
|
| Net income per share: |
|
|
|
|
|
| Basic |
$2.42 |
$0.02 |
|
$2.45 |
$2.10 |
| Diluted |
$2.35 |
$0.02 |
|
$2.38 |
$2.06 |
| Weighted average number of shares
outstanding: |
|
|
|
|
|
| Basic |
20,958 |
20,958 |
|
20,958 |
21,374 |
| Diluted |
21,584 |
21,584 |
|
21,584 |
21,772 |
| (1) |
Amount represents
approximately $0.9 million of revenues which have been deferred
until the related Premier Rewards loyalty points are redeemed,
offset by approximately $1.4 million of gift card breakage revenue
previously recorded in “Other (expense) income, net” prior to the
adoption of ASU 2016-10. |
| (2) |
Prior to the adoption of
ASU 2016-10, the estimated food and beverage cost of the loyalty
rewards was charged to “Occupancy and operating” expenses. |
| (3) |
Prior to the adoption of
ASU 2016-10, gift card breakage revenue was recorded as “Other
(expense) income, net.” |
| (4) |
The income tax effect of
the reconciling items was calculated based on our statutory income
tax rate for fiscal year 2018. |
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