Bravo Brio Restaurant Group, Inc. (NASDAQ:BBRG) (the Company) owner
and operator of the BRAVO! Cucina Italiana (BRAVO!) and BRIO Tuscan
Grille (BRIO) restaurant concepts, today reported financial results
for the thirteen week period ended March 27, 2016. The
Company also reiterated its earnings outlook for the full year
2016.
Selected First Quarter 2016 Highlights
Compared to the First Quarter 2015:
- Revenues increased 0.6% to $108.8 million from $108.2
million.
- Total comparable restaurant sales decreased 2.8%.
- Comparable restaurant sales decreased 4.1% at BRAVO! and 2.1%
at BRIO.
- Restaurant-level operating profit remained flat at $15.8
million.
- Net income was $2.2 million, or $0.15 per diluted share,
compared to net income of $2.5 million, or $0.16 per diluted
share.
Brian O'Malley, President and Chief Executive
Officer, said, “We are fully focused on enhancing the guest
experience through menu innovation, service and restaurant
design. Returning to our heritage of culinary innovation and
implementing other operational programs have already increased
guest satisfaction scores. Our focus on these programs should
ultimately improve guest traffic and comparable restaurant
sales. We have successfully emphasized social media and
digital marketing of limited time offers in the first quarter and
look forward to enhancing our carryout business with the rollout of
our new online ordering platform late in the second quarter.”
O’Malley continued, "We opened two BRAVO!s in
the first quarter in Grand Rapids, Michigan and Beavercreek, Ohio
and are on track to open a third restaurant, a BRIO, in Torrance,
California in the fourth quarter. Additionally, we
repurchased $1.3 million of our common shares under our $15 million
share repurchase program as we continue to return capital to our
shareholders.”
First Quarter 2016 Financial
Results
Revenues increased $0.6 million, or 0.6%, to
$108.8 million in the first quarter of 2016, from $108.2 million in
the first quarter of 2015. The increase in revenues was
primarily due to a net additional 70 operating weeks that was
partially offset by a 2.8% decrease in comparable restaurant
sales. The comparable restaurant sales decrease consisted of
a 3.0% decrease in guest counts partially offset by a 0.2% increase
in average check.
Total restaurant operating costs, which includes
costs of sales, labor costs, operating costs and occupancy costs,
increased $0.6 million, or 0.7%, to $93.0 million in the first
quarter of 2016, from $92.4 million in the first quarter of
2015. Total restaurant-level operating profit remained flat
at $15.8 million as compared to the same period last year. As
a percentage of revenues, total restaurant-level operating profit
in the first quarter of 2016 held steady year-over-year at
14.6%.
Net income in the first quarter of 2016 was $2.2
million, or $0.15 per diluted share, compared to net income of $2.5
million, or $0.16 per diluted share, in the same period last
year.
First Quarter 2016 Brand Operating
Highlights
Comparable restaurant sales decreased 4.1% at
BRAVO! and 2.1% at BRIO. Average weekly sales for BRAVO! and
BRIO were $58,600 and $82,300, respectively.
During the first quarter of 2016, the Company
opened BRAVO restaurants in Grand Rapids, Michigan and Beavercreek,
Ohio. As of March 27, 2016, the Company operated 53
BRAVO! restaurants, 64 BRIO restaurants, and one Bon Vie restaurant
across 33 states. Included in this total is one BRIO
restaurant that is operated under a management agreement.
Additionally, one BRIO restaurant is operated under a franchise
agreement.
2016 Outlook
The Company is providing the following outlook
for the 52-week period ending December 25, 2016:
- Revenues of $424 million to $432 million.
- Total comparable restaurant sales of minus 2.0% to flat.
- Development of three Company-operated restaurants.
- Pre-opening costs of approximately $1.5 million (previously
$1.5 million to $2.0 million).
- Diluted earnings per share of $0.65 to $0.73.
- Capital expenditures of $12.0 million to $14.0 million.
- Diluted share count of approximately 15.5 million.
- Estimated annual tax rate of approximately 19% to 22%
(previously 20% to 23%).
Investor Conference Call and
Webcast
The Company will host an investor conference
call to discuss first quarter 2016 financial results today at 5:30
PM ET. Hosting the call will be Brian O'Malley, President and
Chief Executive Officer and Jim O'Connor, Chief Financial
Officer.
The conference call can be accessed live over
the phone by dialing (888) 397-5352, or for international callers
(719) 457-2645. A replay will be available one hour after the call
and can be accessed by dialing (877) 870-5176 or (858) 384-5517 for
international callers; the conference ID is 2410473. The
replay will be available until Monday, May 9, 2016.
The call will also be webcast live and later
archived on the Company's investor relations website at
http://investors.bbrg.com in the ‘Presentations & Events’
section.
About Bravo Brio Restaurant Group,
Inc.
Bravo Brio Restaurant Group, Inc. is a leading
owner and operator of two distinct Italian restaurant brands,
BRAVO! Cucina Italiana and BRIO Tuscan Grille. BBRG has positioned
its brands as multifaceted culinary destinations that deliver the
ambiance, design elements and food quality reminiscent of fine
dining restaurants at a value typically offered by casual dining
establishments, a combination known as the upscale affordable
dining segment. Each of BBRG's brands provides its guests with a
fine dining experience and value by serving affordable cuisine
prepared using fresh flavorful ingredients and authentic Italian
cooking methods, combined with attentive service in an attractive,
lively atmosphere. BBRG strives to be the best Italian restaurant
company in America and is focused on providing its guests an
excellent dining experience through consistency of execution.
Forward-Looking Statements
Some of the statements in this release contain
forward-looking statements, which involve risks and
uncertainties. These statements relate to future events or
Bravo Brio Restaurant Group, Inc.'s future financial
performance. The Company has attempted to identify
forward-looking statements by terminology including “anticipates,”
“believes,” “can,” “continue,” “could,” “estimates,” “expects,”
“intends,” “may,” “plans,” “potential,” “predicts,” “should” or
“will” or the negative of these terms or other comparable
terminology. These statements are only predictions and involve
known and unknown risks, uncertainties, and other factors,
including those discussed under the heading “Risk Factors” in
the Annual Report on Form 10-K filed by the Company with the
Securities and Exchange Commission on February 29, 2016.
Although Bravo Brio Restaurant Group, Inc.
believes that the expectations reflected in the forward-looking
statements are reasonable based on its current knowledge of the
business and operations, it cannot guarantee future results, levels
of activity, performance or achievements. The Company assumes
no obligation to provide revisions to any forward-looking
statements should circumstances change.
|
BRAVO BRIO RESTAURANT GROUP, INC. AND
SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF
OPERATIONS |
FOR THE THIRTEEN WEEKS ENDED MARCH 27,
2016 AND MARCH 29, 2015 (UNAUDITED) |
(in thousands except per share
data) |
|
|
Thirteen Weeks Ended |
|
March 27, 2016 |
|
March 29, 2015 |
Revenues |
$ |
108,800 |
|
|
|
$ |
108,169 |
|
|
Costs and expenses |
|
|
|
|
|
Cost of sales |
28,007 |
|
25.7 |
% |
|
27,906 |
|
25.8 |
% |
Labor |
39,265 |
|
36.1 |
% |
|
38,850 |
|
35.9 |
% |
Operating |
17,582 |
|
16.2 |
% |
|
17,522 |
|
16.2 |
% |
Occupancy |
8,109 |
|
7.5 |
% |
|
8,082 |
|
7.5 |
% |
General and administrative
expenses |
6,671 |
|
6.1 |
% |
|
5,782 |
|
5.3 |
% |
Restaurant preopening costs |
441 |
|
0.4 |
% |
|
937 |
|
0.9 |
% |
Depreciation and amortization |
5,533 |
|
5.1 |
% |
|
5,438 |
|
5.0 |
% |
Total costs and expenses |
105,608 |
|
97.1 |
% |
|
104,517 |
|
96.6 |
% |
Income from
operations |
3,192 |
|
2.9 |
% |
|
3,652 |
|
3.4 |
% |
Interest expense,
net |
348 |
|
0.3 |
% |
|
405 |
|
0.4 |
% |
Income before income
taxes |
2,844 |
|
2.6 |
% |
|
3,247 |
|
3.0 |
% |
Income tax expense |
596 |
|
0.5 |
% |
|
714 |
|
0.7 |
% |
Net income |
$ |
2,248 |
|
2.1 |
% |
|
$ |
2,533 |
|
2.3 |
% |
|
|
|
|
|
|
Net income per basic
share |
$ |
0.15 |
|
|
|
$ |
0.17 |
|
|
Net income per diluted
share |
$ |
0.15 |
|
|
|
$ |
0.16 |
|
|
Weighted average shares
outstanding-basic |
14,766 |
|
|
|
15,122 |
|
|
Weighted average shares
outstanding-diluted |
15,416 |
|
|
|
15,870 |
|
|
|
|
|
|
|
|
Certain
percentage amounts may not sum due to rounding. |
|
|
BRAVO BRIO RESTAURANT GROUP, INC. AND
SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
AS OF MARCH 27, 2016 AND DECEMBER 27,
2015 |
(Dollars in thousands) |
|
|
March 27, 2016 |
|
December 27, 2015 |
|
(Unaudited) |
|
|
Assets |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
$ |
320 |
|
|
$ |
447 |
|
Accounts receivable |
7,537 |
|
|
9,617 |
|
Tenant improvement allowance
receivable |
205 |
|
|
286 |
|
Inventories |
3,167 |
|
|
3,163 |
|
Prepaid expenses and other current
assets |
1,103 |
|
|
1,859 |
|
Total current assets |
12,332 |
|
|
15,372 |
|
Property and equipment
— net |
167,408 |
|
|
170,463 |
|
Deferred income taxes —
net |
57,497 |
|
|
58,054 |
|
Other assets — net |
4,140 |
|
|
4,171 |
|
Total assets |
$ |
241,377 |
|
|
$ |
248,060 |
|
|
|
|
|
Liabilities and
stockholders’ equity |
|
|
|
Current
liabilities |
|
|
|
Trade and construction
payables |
$ |
14,647 |
|
|
$ |
16,283 |
|
Accrued expenses |
24,663 |
|
|
28,869 |
|
Deferred lease incentives |
7,412 |
|
|
7,230 |
|
Deferred gift card revenue |
11,864 |
|
|
14,728 |
|
Total current liabilities |
58,586 |
|
|
67,110 |
|
Deferred lease
incentives |
58,001 |
|
|
59,553 |
|
Long-term debt |
45,900 |
|
|
43,300 |
|
Other long-term
liabilities |
23,030 |
|
|
23,273 |
|
Commitments and
contingencies |
|
|
|
Stockholders’
equity |
|
|
|
Common shares, no par value per
share— authorized 100,000,000 shares; 20,376,207 shares issued at
March 27, 2016 and 20,293,296 shares issued at December 27, 2015
|
200,794 |
|
|
200,739 |
|
Preferred shares, no par value per
share— authorized 5,000,000 shares; issued and outstanding, 0
shares at March 27, 2016 and December 27, 2015 |
— |
|
|
— |
|
Treasury shares, 5,680,385 shares
at March 27, 2016 and 5,534,308 shares at December 27, 2015 |
(78,825 |
) |
|
(77,558 |
) |
Retained deficit |
(66,109 |
) |
|
(68,357 |
) |
Total stockholders’ equity |
55,860 |
|
|
54,824 |
|
Total liabilities and
stockholders’ equity |
$ |
241,377 |
|
|
$ |
248,060 |
|
|
|
|
|
Contacts:
Investor Relations
Don Duffy / Raphael Gross
(203) 682-8200
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