BBQ Holdings, Inc. (NASDAQ: BBQ) (the “Company”), an innovating
global franchisor, owner and operator of restaurants, today
reported financial results for the third fiscal quarter ended
October 3, 2021.
Third Quarter 2021 Highlights:
Financial:
- Total revenue of $55.4 million vs. $35.5 million in the third
quarter of 2020.
- Net income of $4.8 million vs. $0.3 million in the third
quarter of 2020.
- Adjusted EBITDA, a non-GAAP measure, was $4.4 million vs. $2.0
million in the third quarter of 2020.
- Combined brands restaurant-level margins of 8.6% vs 3.4% last
year.
- Prime costs were 62.6% of sales vs. 67.8% third quarter
2019.
|
Third Quarter Same Store Sales |
|
2021 vs. 2020 |
|
2021 vs. 2019 |
Famous Dave's Company-owned |
19.3 |
% |
|
12.4 |
% |
Famous Dave's
Franchise-operated* |
18.0 |
% |
|
6.9 |
% |
Granite City |
31.4 |
% |
|
(0.5 |
)% |
Village Inn
Company-owned** |
37.0 |
% |
|
(8.1 |
)% |
Village Inn
Franchise-operated* |
48.2 |
% |
|
NA |
% |
Bakers Square** |
32.4 |
% |
|
(20.2 |
)% |
|
|
|
|
|
|
* as reported by
franchisees |
|
|
|
|
|
** includes sales under prior
ownership |
|
|
|
|
|
Executive Comments
Jeff Crivello, CEO, commented, “This was a quarter of strong
execution for BBQ Holdings, as our growth strategies continue to
deliver positive top and bottom-line results, including a steady
improvement in same store sales and solid free cash flow.
Management is focused on executing against our three core growth
initiatives, including accretive M&A, opening new units, and
filling the latent capacity of our current restaurants. During the
third quarter, we completed the highly accretive acquisition of
Village Inn and Bakers Square. Subsequent to the end of the
quarter, we also acquired Tahoe Joe’s. Our goal now is to
reinvigorate these brands and drive consistent unit-level
improvements as we have at Famous Dave’s and other brands. In
addition, the month of October also brought the opening of the
first Famous Dave’s Quick Que in Minnesota. We are excited to
continue to rollout this quick service format, providing a new,
efficient way for our guests to experience Famous Dave’s. Finally,
we launched a virtual burger concept during the quarter, $5
Burgers, providing incremental revenue in the Famous Dave’s
system.”
Growth:
- Purchased Village Inn, 109 franchise and 21 corporate
restaurants, and 11 Bakers Square corporate restaurants in July
2021.
- Purchased five Tahoe Joe’s Steakhouses in October 2021.
- Purchased four Famous Dave’s franchise restaurants in Tennessee
and Kentucky in July 2021.
- Famous Dave’s franchisees opened line-serve restaurants in Las
Vegas, NV in August 2021 and Coon Rapids, MN in October 2021.
- Opened a Real Urban Barbeque restaurant in Chicago, IL in
October 2021.
- Famous Dave’s Drive thru in Salt Lake City, UT expected to open
in December 2021.
- Dual concept Granite City/Village Inn expected to open in
January 2022.
- New Village Inn prototype expected
to open in Omaha, NE early Q1 2022.
Updated 2021 Guidance:
Based on the results to date through the third quarter
2021, and including the uncertainty related to COVID-19, the
Company has updated its 2021 guidance as follows:
- Net Revenue remains at $183 -$188mm
- Increased Net Income range from $20.6 - $21.0mm
to $22.5 - $23.0mm
- Increased Cash EBITDA range from $14.5 - $15.0mm
to $16.5 - $17.0mm
Key Operating Metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
October 3, 2021 |
|
September 27, 2020 |
|
October 3, 2021 |
|
September 27, 2020 |
Restaurant count: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchise-operated |
|
|
213 |
|
|
|
98 |
|
|
|
213 |
|
|
|
98 |
|
Company-owned |
|
|
83 |
|
|
|
49 |
|
|
|
83 |
|
|
|
49 |
|
Total |
|
|
296 |
|
|
|
147 |
|
|
|
296 |
|
|
|
147 |
|
Same store net restaurant
sales %: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchise-operated |
|
|
18.0 |
% |
|
|
(10.0 |
)% |
|
|
25.6 |
% |
|
|
(18.3 |
)% |
Company-owned |
|
|
24.0 |
% |
|
|
(4.6 |
)% |
|
|
36.3 |
% |
|
|
(9.9 |
)% |
Total |
|
|
20.4 |
% |
|
|
(8.7 |
)% |
|
|
29.3 |
% |
|
|
(16.7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, expect per
share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
System-wide restaurant
sales(1) |
|
$ |
141,125 |
|
|
$ |
84,434 |
|
|
$ |
335,421 |
|
|
$ |
222,374 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to
shareholders |
|
$ |
4,834 |
|
|
$ |
328 |
|
|
$ |
21,419 |
|
|
$ |
7,783 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to
shareholders, per diluted share |
|
$ |
0.46 |
|
|
$ |
0.04 |
|
|
$ |
2.20 |
|
|
$ |
0.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA(2) |
|
$ |
4,425 |
|
|
$ |
1,995 |
|
|
$ |
12,649 |
|
|
$ |
2,915 |
|
_________________________ |
|
|
|
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|
|
(1) System-wide restaurant sales include sales
for all Company-owned and franchise-operated restaurants, as
reported by franchisees. Restaurant sales for franchise-operated
restaurants are not revenues of the Company and are not included in
the Company’s consolidated financial
statements.(2) Adjusted EBITDA is a non-GAAP
measure. A reconciliation of all non-GAAP measures to the most
directly comparable GAAP measure is included in the accompanying
financial tables. See “Non-GAAP Reconciliation.”
Third Quarter 2021 Review
Total revenue for the third quarter of 2021 was $55.4 million,
up 56.0% from the third quarter of 2020. The increase in
year-over-year restaurant net sales for the quarter ended October
3, 2021 was driven primarily by the easing of dining restrictions
in the third quarter of 2021 and the acquisition of the Village Inn
and Bakers Square brands.
Net income attributable to shareholders was approximately $4.8
million, or $0.46 per diluted share, in the third quarter of fiscal
2021 compared to $328,000, or $0.04 per diluted share, in the third
quarter of fiscal 2020. Adjusted EBITDA, a non-GAAP measure, was
approximately $4.4 million, compared to adjusted EBITDA of
approximately $2.0 million in the third quarter of fiscal 2020. A
reconciliation between adjusted EBITDA and its most directly
comparable GAAP measure is included in the accompanying financial
tables.
Restaurant-level operating margin as a percentage of restaurant
net sales, a non-GAAP measure, was 8.6% for Company-owned
restaurants in the third quarter of fiscal 2021 compared to 3.4% in
the third quarter of fiscal 2020. This increase in restaurant-level
operating margin as a percentage of net restaurant sales was due
primarily to leverage on our fixed operating costs from the
increased revenue resulting from the easing of dine-in restrictions
and restrictions on large gatherings which were put in place in
2020 due to COVID-19 concerns. A reconciliation of restaurant sales
to restaurant-level margin is included in the accompanying
financial tables. General and administrative expenses for the
quarter ended October 3, 2021 and September 27, 2020 represented
approximately 9.2% and 8.8% of total revenues, respectively. The
increase in general and administrative expenses as a percentage of
revenue in the third quarter of 2021 was due primarily to
acquisition-related expenses incurred as we incorporated the
Village Inn and Bakers Square brands into our portfolio.
About BBQ Holdings
BBQ Holdings, Inc. (NASDAQ: BBQ) is a national restaurant
company engaged in franchising, ownership and operation of casual
and fast dining restaurants. As of November 10, 2021, BBQ Holdings
had seven brands with 303 locations in three countries including 89
Company owned locations and 214 franchised locations. In addition
to these locations, the Company opened eight Company-owned Famous
Dave’s ghost kitchens operating within its Granite City locations,
and 20 Famous Dave’s franchisee ghost kitchens operating out of the
kitchen of another restaurant location or a shared kitchen space.
While BBQ Holdings continues to diversify its ownership in the
restaurant community, it was founded with the principle of
combining the “art and science” of barbecue to serve up the very
best of the best to barbecue lovers everywhere. Along with a wide
variety of BBQ favorites served at their BBQ restaurants, BBQ
Holdings also operates Granite City Food and Brewery restaurants
which offer award winning craft beer and a made-from-scratch, chef
driven menu featuring contemporary American cuisine. Village Inn
and Bakers Square add a legendary Family Dining element to BBQ
Holdings, with these concepts specializing in breakfast and pies.
Tahoe Joe’s, the Company’s newest addition, is known for their
pellet-broiler cooked and smoked infused steak.
Non-GAAP Financial Measures
To supplement its condensed consolidated financial statements,
which are prepared and presented in accordance with accounting
principles generally accepted in the United States (“GAAP”), the
Company uses non-GAAP measures including those indicated below.
These non-GAAP measures exclude significant expenses and income
that are required by GAAP to be recorded in the Company’s
consolidated financial statements and are subject to inherent
limitations. By providing non-GAAP measures, together with a
reconciliation to the most comparable GAAP measure, the Company
believes that it is enhancing investors’ understanding of the
Company’s business and results of operations. These measures are
not intended to be considered in isolation of, as substitutes for,
or superior to, financial measures prepared and presented in
accordance with GAAP. The non-GAAP measures presented may be
different from the measures used by other companies. The Company
urges investors to review the reconciliation of its non-GAAP
measures to the most directly comparable GAAP measure, included in
the accompanying financial tables.
Adjusted EBITDA is net income plus asset impairment, estimated
lease termination charges and other closing costs, settlement
agreements, interest expense, net, depreciation and amortization,
net (gain) loss on disposal of equipment, stock-based compensation,
acquisition costs, pre-opening costs, severance, gain on debt
forgiveness, gain on bargain purchase, COVID-19-related expense and
provision (benefit) for income taxes.
Restaurant-level operating margins are equal to net restaurant
sales, less restaurant-level food and beverage cost, labor and
benefit costs, and operating expenses.
Forward-Looking Statements
Statements in this press release that are not strictly
historical, including but not limited to statements regarding the
timing of the Company’s restaurant openings, the timing of
refreshes and the timing or success of refranchising plans, are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements involve known and unknown risks, which may cause the
Company’s actual results to differ materially from expected
results. Although the Company believes the expectations reflected
in any forward-looking statements are based on reasonable
assumptions, it can give no assurance that its expectation will be
attained. Factors that could cause actual results to differ
materially from the Company’s expectation include the impact of the
COVID-19 virus pandemic, financial performance, restaurant industry
conditions, execution of restaurant development and construction
programs, franchisee performance, changes in local or national
economic conditions, availability of financing, governmental
approvals and other risks detailed from time to time in the
Company’s SEC reports.
Contact: |
|
Jeff Crivello
– Chief Executive Officer |
|
|
jeff.crivello@bbq-holdings.com |
BBQ HOLDINGS, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(in thousands, except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
October 3, 2021 |
|
September 27, 2020 |
|
October 3, 2021 |
|
September 27, 2020 |
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
Restaurant sales, net |
$ |
50,374 |
|
|
$ |
32,559 |
|
|
$ |
125,182 |
|
|
$ |
78,251 |
|
Franchise royalty and fee revenue |
|
3,329 |
|
|
|
2,153 |
|
|
|
8,649 |
|
|
|
6,628 |
|
Franchisee national advertising fund contributions |
|
461 |
|
|
|
302 |
|
|
|
1,210 |
|
|
|
826 |
|
Licensing and other revenue |
|
1,219 |
|
|
|
497 |
|
|
|
3,181 |
|
|
|
1,423 |
|
Total revenue |
|
55,383 |
|
|
|
35,511 |
|
|
|
138,222 |
|
|
|
87,128 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses: |
|
|
|
|
|
|
|
|
|
|
|
Food and beverage costs |
|
14,731 |
|
|
|
9,735 |
|
|
|
36,720 |
|
|
|
24,206 |
|
Labor and benefits costs |
|
16,805 |
|
|
|
11,189 |
|
|
|
39,488 |
|
|
|
26,976 |
|
Operating expenses |
|
14,512 |
|
|
|
10,521 |
|
|
|
36,355 |
|
|
|
26,251 |
|
Depreciation and amortization expenses |
|
1,940 |
|
|
|
1,397 |
|
|
|
4,925 |
|
|
|
3,820 |
|
General and administrative expenses |
|
5,109 |
|
|
|
3,138 |
|
|
|
13,691 |
|
|
|
9,973 |
|
National advertising fund expenses |
|
461 |
|
|
|
302 |
|
|
|
1,210 |
|
|
|
826 |
|
Asset impairment, estimated lease termination charges and other
closing costs, net |
|
69 |
|
|
|
(138 |
) |
|
|
106 |
|
|
|
4,814 |
|
Pre-opening expenses |
|
63 |
|
|
|
(120 |
) |
|
|
183 |
|
|
|
(93 |
) |
(Gain) loss on disposal of property, net |
|
(1 |
) |
|
|
(530 |
) |
|
|
134 |
|
|
|
(1,107 |
) |
Total costs and expenses |
|
53,689 |
|
|
|
35,494 |
|
|
|
132,812 |
|
|
|
95,666 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations |
|
1,694 |
|
|
|
17 |
|
|
|
5,410 |
|
|
|
(8,538 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense): |
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
(124 |
) |
|
|
(326 |
) |
|
|
(439 |
) |
|
|
(866 |
) |
Interest income |
|
49 |
|
|
|
94 |
|
|
|
147 |
|
|
|
380 |
|
Gain on forgiveness of debt |
|
— |
|
|
|
— |
|
|
|
14,109 |
|
|
|
— |
|
Gain on bargain purchase |
|
3,203 |
|
|
|
— |
|
|
|
3,203 |
|
|
|
13,675 |
|
Total other income (expense) |
|
3,128 |
|
|
|
(232 |
) |
|
|
17,020 |
|
|
|
13,189 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes |
|
4,822 |
|
|
|
(215 |
) |
|
|
22,430 |
|
|
|
4,651 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (expense)
benefit |
|
(36 |
) |
|
|
273 |
|
|
|
(517 |
) |
|
|
2,519 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
|
4,786 |
|
|
|
58 |
|
|
|
21,913 |
|
|
|
7,170 |
|
Net (income) loss
attributable to non-controlling interest |
|
48 |
|
|
|
270 |
|
|
|
(494 |
) |
|
|
613 |
|
Net income
attributable to shareholders |
$ |
4,834 |
|
|
$ |
328 |
|
|
$ |
21,419 |
|
|
$ |
7,783 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per common
share: |
|
|
|
|
|
|
|
|
|
|
|
Basic net income per
share attributable to shareholders |
$ |
0.47 |
|
|
$ |
0.04 |
|
|
$ |
2.23 |
|
|
$ |
0.85 |
|
Diluted net income per
share attributable to shareholders |
$ |
0.46 |
|
|
$ |
0.04 |
|
|
$ |
2.20 |
|
|
$ |
0.85 |
|
Weighted average
shares outstanding - basic |
|
10,345 |
|
|
|
9,151 |
|
|
|
9,619 |
|
|
|
9,138 |
|
Weighted average
shares outstanding - diluted |
|
10,482 |
|
|
|
9,158 |
|
|
|
9,737 |
|
|
|
9,145 |
|
BBQ HOLDINGS, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(in thousands, except per share data) |
(unaudited) |
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
Current
assets: |
|
October 3, 2021 |
|
January 3, 2021 |
Cash and cash equivalents |
|
$ |
28,977 |
|
|
$ |
18,101 |
|
Restricted cash |
|
|
1,146 |
|
|
|
1,502 |
|
Accounts receivable, net of allowance for doubtful accounts of
$262,000 and $132,000, respectively |
|
|
4,900 |
|
|
|
4,823 |
|
Inventories |
|
|
2,949 |
|
|
|
2,271 |
|
Prepaid expenses and other current assets |
|
|
2,367 |
|
|
|
1,252 |
|
Assets held for sale |
|
|
1,024 |
|
|
|
1,070 |
|
Total current
assets |
|
|
41,363 |
|
|
|
29,019 |
|
|
|
|
|
|
|
|
Property, equipment
and leasehold improvements, net |
|
|
39,174 |
|
|
|
32,389 |
|
|
|
|
|
|
|
|
Other
assets: |
|
|
|
|
|
|
Operating lease right-of-use assets |
|
|
78,581 |
|
|
|
61,634 |
|
Goodwill |
|
|
1,071 |
|
|
|
601 |
|
Intangible assets, net |
|
|
23,231 |
|
|
|
9,967 |
|
Deferred tax asset, net |
|
|
3,382 |
|
|
|
4,934 |
|
Other assets |
|
|
1,129 |
|
|
|
1,724 |
|
Total
assets |
|
$ |
187,931 |
|
|
$ |
140,268 |
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
7,092 |
|
|
$ |
6,385 |
|
Current portion of lease liabilities |
|
|
10,624 |
|
|
|
6,185 |
|
Current portion of long-term debt |
|
|
2,192 |
|
|
|
2,111 |
|
Accrued compensation and benefits |
|
|
7,929 |
|
|
|
2,390 |
|
Other current liabilities |
|
|
12,014 |
|
|
|
9,766 |
|
Total current liabilities |
|
|
39,851 |
|
|
|
26,837 |
|
|
|
|
|
|
|
|
Long-term
liabilities: |
|
|
|
|
|
|
Lease liabilities, less current portion |
|
|
78,470 |
|
|
|
63,105 |
|
Long-term debt, less current portion |
|
|
6,578 |
|
|
|
22,169 |
|
Other liabilities |
|
|
1,458 |
|
|
|
1,224 |
|
Total liabilities |
|
|
126,357 |
|
|
|
113,335 |
|
|
|
|
|
|
|
|
Shareholders’
equity: |
|
|
|
|
|
|
Common stock, $.01 par value, 100,000 shares authorized, 10,495 and
9,307 shares issued and outstanding at October 3, 2021
and January 3, 2021, respectively |
|
|
105 |
|
|
|
93 |
|
Additional paid-in capital |
|
|
21,464 |
|
|
|
8,748 |
|
Retained earnings |
|
|
40,789 |
|
|
|
19,370 |
|
Total shareholders’
equity |
|
|
62,358 |
|
|
|
28,211 |
|
Non-controlling interest |
|
|
(784 |
) |
|
|
(1,278 |
) |
Total
equity |
|
|
61,574 |
|
|
|
26,933 |
|
Total liabilities and
equity |
|
$ |
187,931 |
|
|
$ |
140,268 |
|
BBQ HOLDINGS, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(in thousands) |
(unaudited) |
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
October 3, 2021 |
|
September 27, 2020 |
Cash flows from
operating activities: |
|
|
|
|
|
|
Net income |
|
$ |
21,913 |
|
|
$ |
7,170 |
|
Adjustments to reconcile net income to cash flows provided by
operations: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
4,925 |
|
|
|
3,820 |
|
Stock-based compensation |
|
|
932 |
|
|
|
422 |
|
Net loss (gain) on disposal |
|
|
134 |
|
|
|
(1,080 |
) |
Asset impairment, estimated lease termination charges and other
closing costs, net |
|
|
— |
|
|
|
4,788 |
|
Gain on forgiveness of debt |
|
|
(14,109 |
) |
|
|
— |
|
Gain on bargain purchase |
|
|
(3,203 |
) |
|
|
(13,675 |
) |
Amortization of operating right-of-use assets |
|
|
5,194 |
|
|
|
5,818 |
|
Deferred tax asset |
|
|
441 |
|
|
|
(2,569 |
) |
Other non-cash items |
|
|
(49 |
) |
|
|
488 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
Accounts receivable, net |
|
|
(126 |
) |
|
|
494 |
|
Prepaid expenses and other assets |
|
|
(1,368 |
) |
|
|
102 |
|
Accounts payable |
|
|
707 |
|
|
|
985 |
|
Accrued compensation |
|
|
4,445 |
|
|
|
(408 |
) |
Lease liabilities |
|
|
(5,000 |
) |
|
|
(5,067 |
) |
Accrued and other liabilities |
|
|
505 |
|
|
|
(641 |
) |
Cash flows provided by operating activities |
|
|
15,341 |
|
|
|
647 |
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
Proceeds from the sale of assets |
|
|
— |
|
|
|
27 |
|
Purchases of property, equipment and leasehold improvements |
|
|
(2,416 |
) |
|
|
(2,671 |
) |
Payments for acquired restaurants |
|
|
(14,548 |
) |
|
|
(4,952 |
) |
Transfer from HFS |
|
|
46 |
|
|
|
— |
|
Payments received on note receivable |
|
|
779 |
|
|
|
24 |
|
Cash flows used for investing activities |
|
|
(16,139 |
) |
|
|
(7,572 |
) |
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
Proceeds from long-term debt |
|
|
— |
|
|
|
22,058 |
|
Payments for debt issuance costs |
|
|
— |
|
|
|
(45 |
) |
Payments on long-term debt |
|
|
(1,572 |
) |
|
|
(664 |
) |
Proceeds from sale of common stock, net of offering costs |
|
|
12,445 |
|
|
|
— |
|
Proceeds from exercise of stock options |
|
|
445 |
|
|
|
— |
|
Cash provided by financing activities |
|
|
11,318 |
|
|
|
21,349 |
|
|
|
|
|
|
|
|
Increase in cash, cash
equivalents and restricted cash |
|
|
10,520 |
|
|
|
14,424 |
|
Cash, cash equivalents
and restricted cash, beginning of period |
|
|
19,603 |
|
|
|
6,086 |
|
Cash, cash equivalents
and restricted cash, end of period |
|
$ |
30,123 |
|
|
$ |
20,510 |
|
|
|
|
|
|
|
|
Supplemental
Disclosures |
|
|
|
|
|
|
Cash paid for interest,
net |
|
$ |
769 |
|
|
$ |
829 |
|
Cash paid for income taxes,
net |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
Non-cash investing and
financing activities: |
|
|
|
|
|
|
Operating right-of-use assets
acquired |
|
|
19,339 |
|
|
|
51,682 |
|
Lease liabilities assumed
pursuant to acquisitions |
|
|
21,830 |
|
|
|
51,682 |
|
Gift card liability assumed
pursuant to acquisitions |
|
|
1,202 |
|
|
|
3,923 |
|
BBQ HOLDINGS, INC. AND SUBSIDIARIES |
OPERATING RESULTS |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
October 3, 2021 |
|
September 27, 2020 |
|
October 3, 2021 |
|
September 27, 2020 |
Food and beverage
costs(1) |
|
29.2 |
% |
|
29.9 |
% |
|
29.3 |
% |
|
30.9 |
% |
Labor and benefits
costs(1) |
|
33.4 |
% |
|
34.4 |
% |
|
31.5 |
% |
|
34.5 |
% |
Operating expenses(1) |
|
28.8 |
% |
|
32.3 |
% |
|
29.0 |
% |
|
33.5 |
% |
Restaurant-level operating margin(1)(2) |
|
8.6 |
% |
|
3.4 |
% |
|
10.1 |
% |
|
1.0 |
% |
Depreciation and amortization
expenses(3) |
|
3.5 |
% |
|
3.9 |
% |
|
3.6 |
% |
|
4.4 |
% |
General and administrative
expenses(3) |
|
9.2 |
% |
|
8.8 |
% |
|
9.9 |
% |
|
11.4 |
% |
Income (loss) from
operations(3) |
|
3.1 |
% |
|
0.0 |
% |
|
3.9 |
% |
|
(9.8 |
)% |
________________________ |
|
|
|
|
|
|
|
|
|
|
|
|
(1) As a percentage of restaurant sales,
net(2) Restaurant-level operating margins are
equal to restaurant sales, net, less restaurant-level food and
beverage costs, labor and benefit costs, and operating
expense.(3) As a percentage of total revenue
BBQ HOLDINGS, INC. AND SUBSIDIARIES |
RESTAURANT-LEVEL PROFIT AND RESTAURANT-LEVEL
MARGIN |
NON-GAAP RECONCILIATION |
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
October 3, 2021 |
|
September 27, 2020 |
|
October 3, 2021 |
|
September 27, 2020 |
Restaurant sales, net |
$ |
50,374 |
|
|
$ |
32,559 |
|
|
$ |
125,182 |
|
|
$ |
78,251 |
|
Restaurant operating costs
(1) |
|
46,048 |
|
|
|
31,445 |
|
|
|
112,563 |
|
|
|
77,433 |
|
Restaurant-level profit |
$ |
4,326 |
|
|
$ |
1,114 |
|
|
$ |
12,619 |
|
|
$ |
818 |
|
Restaurant-level margin |
|
8.6 |
% |
|
|
3.4 |
% |
|
|
10.1 |
% |
|
|
1.0 |
% |
________________________ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Restaurant operating cost
consist of food and beverage cost, labor and benefits costs and
operating expenses.
BBQ HOLDINGS, INC. AND SUBSIDIARIES |
NON-GAAP RECONCILIATION |
(in thousands, except per share data) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
(dollars in thousands) |
|
October 3, 2021 |
|
September 27, 2020 |
|
October 3, 2021 |
|
September 27, 2020 |
Net income |
|
$ |
4,786 |
|
|
$ |
58 |
|
|
$ |
21,913 |
|
|
$ |
7,170 |
|
Asset impairment and estimated
lease termination charges and other closing costs |
|
|
69 |
|
|
|
(138 |
) |
|
|
106 |
|
|
|
4,814 |
|
Depreciation and
amortization |
|
|
1,940 |
|
|
|
1,397 |
|
|
|
4,925 |
|
|
|
3,820 |
|
Interest expense, net |
|
|
75 |
|
|
|
232 |
|
|
|
292 |
|
|
|
486 |
|
Net (gain) loss on disposal of
equipment |
|
|
(1 |
) |
|
|
(530 |
) |
|
|
134 |
|
|
|
(1,107 |
) |
Stock-based compensation |
|
|
294 |
|
|
|
174 |
|
|
|
932 |
|
|
|
422 |
|
Acquisition costs |
|
|
366 |
|
|
|
29 |
|
|
|
550 |
|
|
|
(46 |
) |
Pre-opening costs |
|
|
63 |
|
|
|
(120 |
) |
|
|
183 |
|
|
|
(93 |
) |
Severance |
|
|
— |
|
|
|
21 |
|
|
|
— |
|
|
|
52 |
|
Gain on debt forgiveness |
|
|
— |
|
|
|
— |
|
|
|
(14,109 |
) |
|
|
— |
|
Gain on bargain purchase |
|
|
(3,203 |
) |
|
|
— |
|
|
|
(3,203 |
) |
|
|
(13,675 |
) |
Provision for income
taxes |
|
|
36 |
|
|
|
(273 |
) |
|
|
517 |
|
|
|
(2,519 |
) |
COVID-19-related expense |
|
|
— |
|
|
|
1,145 |
|
|
|
409 |
|
|
|
3,591 |
|
Adjusted EBITDA |
|
$ |
4,425 |
|
|
$ |
1,995 |
|
|
$ |
12,649 |
|
|
$ |
2,915 |
|
(1) COVID-19 expenses consisted primarily of
cleaning and sanitation supplies, payments to employees for
unemployment related costs, inventory waste, rent and rent-related
costs for limited-operations restaurants from the day that the
restaurant dining room partially or fully closed.
|
|
Nine Months Ended |
|
|
October 3, 2021 |
|
September 27, 2020 |
(dollars in thousands) |
|
|
|
|
|
|
Net income |
|
$ |
21,913 |
|
|
$ |
7,170 |
|
Asset impairment and estimated
lease termination charges and other closing costs |
|
|
106 |
|
|
|
4,814 |
|
Depreciation and
amortization |
|
|
4,925 |
|
|
|
3,820 |
|
Interest expense, net |
|
|
292 |
|
|
|
486 |
|
Net (gain) loss on disposal of
equipment |
|
|
134 |
|
|
|
(1,107 |
) |
Stock-based compensation |
|
|
932 |
|
|
|
422 |
|
Acquisition costs |
|
|
550 |
|
|
|
(46 |
) |
Pre-opening costs |
|
|
183 |
|
|
|
(93 |
) |
Severance |
|
|
- |
|
|
|
52 |
|
Gain on debt forgiveness |
|
|
(14,109 |
) |
|
|
- |
|
Gain on bargain purchase |
|
|
(3,203 |
) |
|
|
(13,675 |
) |
Provision for income
taxes |
|
|
517 |
|
|
|
(2,519 |
) |
Non-Cash Rent |
|
|
660 |
|
|
|
1,540 |
|
Cash EBITDA |
|
$ |
12,900 |
|
|
$ |
864 |
|
A presentation accompanying this announcement is available
at: https://www.globenewswire.com/NewsRoom/AttachmentNg/17a0cc25-b1e9-4157-8f49-2310e2b70624
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