BJ’s Restaurants, Inc. (NASDAQ: BJRI) today reported financial
results for its fiscal 2019 third quarter ended
Tuesday, October 1, 2019.
Third Quarter 2019 Highlights Compared
to Third Quarter 2018
- Total revenues grew 3.1% to $278.7
million
- Total restaurant operating weeks
increased approximately 2.9%
- Comparable restaurant sales
declined 0.3%
- Net income of $3.7 million compared
to $8.5 million
- Third quarter 2019 net income was
impacted by a $0.6 million expense related to the adoption of ASU
2016-02, regarding lease accounting
- Third quarter 2018 net income
benefited from a $1.7 million excess tax benefit from equity
awards
- Diluted net income per share of
$0.18 compared to $0.39
- Third quarter 2019 diluted net
income per share was impacted by a $0.03 expense related to the
adoption of ASU 2016-02, regarding lease accounting
- Third quarter 2018 diluted net
income per share benefited from a $0.08 excess tax benefit from
equity awards
“Third quarter casual dining sales were soft
across the industry,” commented Greg Trojan, Chief Executive
Officer. “The challenging environment coupled with weakness in
certain California markets and the impact of Hurricane Dorian,
which affected approximately 10% of our restaurants, led to
slightly negative comparable sales. Notwithstanding the challenging
environment, our newest restaurants continue to exceed sales and
profitability expectations as their weekly sales average
outperformed our comparable restaurant sales for the quarter. We
believe this is a testament to the strength of the BJ’s concept and
brand and our prospects for future growth as we continue our
national expansion.
“During the quarter we continued making
important investments in the business focused on building future
sales and improving our already strong operations-based culture.
For example, the recently completed investments in our Gold
Standard Kitchen Systems are improving our daily operations as
reflected by solid increases in our speed of service and food
scores from our guest surveys, increased kitchen labor productivity
and recently improved retention rates for our hourly kitchen team
members. As expected, the addition of our popular slow roasted tri
tip sirloin to our Daily Brewhouse Specials has been well received
by guests and has proven effective in building sales and driving
value as reflected in a 1.5% rise in our guest survey value scores
in the quarter. These investments, coupled with our other ongoing
sales and productivity initiatives, will enable us to continue
expanding our industry leading guest traffic per square
foot.”
During the third quarter, the Company opened its
first Connecticut location in the city of Manchester, as well as
its sixth restaurant in the state of Indiana in Evansville. “We are
on track to open our last two restaurants of the year in the fourth
quarter, thereby achieving our goal of opening seven restaurants in
fiscal 2019. As we look toward 2020, we currently plan to open
eight to ten new restaurants. BJ’s development pipeline is in
excellent shape and we remain committed to restaurant quality over
restaurant quantity. This commitment combined with our ability to
manage capital allocation priorities in the form of share
repurchases, quarterly cash dividends, and sales building
initiatives support our view of the tremendous value in the BJ’s
concept and our ability to drive long-term value for shareholders,”
concluded Trojan.
During the third quarter of 2019, the Company
repurchased and retired approximately 1.1 million shares of its
common stock at a cost of approximately $41.3 million. Since the
Company’s first share repurchase authorization was approved in
April 2014, BJ’s has repurchased and retired approximately 11.6
million shares at a cost of approximately $450.2 million. The
Company has approximately $49.8 million available under its
currently authorized share repurchase program.
The Company’s Board of Directors increased the
Company’s quarterly cash dividend by 8.3% to $0.13 per share of
common stock, payable November 25, 2019, to shareholders of record
at the close of business on November 11, 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 third quarter 2019 earnings release today, October 24,
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 where craft matters. BJ’s
broad menu with over 140 offerings 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 207 casual dining restaurants. All
restaurants offer dine-in, take-out, delivery and large party
catering. BJ’s restaurants are located in 28 states: Alabama,
Arizona, Arkansas, California, Colorado, Connecticut, 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. |
Unaudited Consolidated Statements of Income |
(Dollars in thousands except for per share
data) |
|
|
|
|
|
Third Quarter Ended |
|
Nine Months Ended |
|
October 1, 2019 |
October 2, 2018 |
|
October 1, 2019 |
October 2, 2018 |
Revenues |
$ |
278,739 |
|
100.0 |
% |
$ |
270,268 |
|
100.0 |
% |
|
$ |
870,383 |
|
100.0 |
% |
$ |
836,425 |
|
100.0 |
% |
Restaurant operating costs (excluding depreciation and
amortization): |
|
|
|
|
|
|
|
|
|
Cost of sales |
|
71,552 |
|
25.7 |
|
|
68,600 |
|
25.4 |
|
|
|
221,739 |
|
25.5 |
|
|
210,597 |
|
25.2 |
|
Labor and benefits |
|
104,660 |
|
37.5 |
|
|
99,061 |
|
36.7 |
|
|
|
318,386 |
|
36.6 |
|
|
301,480 |
|
36.0 |
|
Occupancy and operating |
|
64,921 |
|
23.3 |
|
|
61,102 |
|
22.6 |
|
|
|
191,005 |
|
21.9 |
|
|
177,678 |
|
21.2 |
|
General and administrative |
|
14,272 |
|
5.1 |
|
|
14,661 |
|
5.4 |
|
|
|
47,153 |
|
5.4 |
|
|
45,643 |
|
5.5 |
|
Depreciation and amortization |
|
18,163 |
|
6.5 |
|
|
17,686 |
|
6.5 |
|
|
|
53,644 |
|
6.2 |
|
|
52,760 |
|
6.3 |
|
Restaurant opening |
|
970 |
|
0.3 |
|
|
403 |
|
0.1 |
|
|
|
2,028 |
|
0.2 |
|
|
1,835 |
|
0.2 |
|
Loss on disposal of assets |
|
931 |
|
0.3 |
|
|
865 |
|
0.3 |
|
|
|
3,618 |
|
0.4 |
|
|
3,049 |
|
0.4 |
|
Total costs and expenses |
|
275,469 |
|
98.8 |
|
|
262,378 |
|
97.1 |
|
|
|
837,573 |
|
96.2 |
|
|
793,042 |
|
94.8 |
|
Income from operations |
|
3,270 |
|
1.2 |
|
|
7,890 |
|
2.9 |
|
|
|
32,810 |
|
3.8 |
|
|
43,383 |
|
5.2 |
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
(1,174 |
) |
(0.4 |
) |
|
(1,058 |
) |
(0.4 |
) |
|
|
(3,310 |
) |
(0.4 |
) |
|
(3,826 |
) |
(0.5 |
) |
Other income, net |
|
125 |
|
- |
|
|
239 |
|
0.1 |
|
|
|
1,363 |
|
0.2 |
|
|
220 |
|
- |
|
Total other expense |
|
(1,049 |
) |
(0.4 |
) |
|
(819 |
) |
(0.3 |
) |
|
|
(1,947 |
) |
(0.2 |
) |
|
(3,606 |
) |
(0.4 |
) |
Income before income taxes |
|
2,221 |
|
0.8 |
|
|
7,071 |
|
2.6 |
|
|
|
30,863 |
|
3.5 |
|
|
39,777 |
|
4.8 |
|
|
|
|
|
|
|
|
|
|
|
Income tax (benefit) expense |
|
(1,450 |
) |
(0.5 |
) |
|
(1,445 |
) |
(0.5 |
) |
|
|
136 |
|
- |
|
|
(348 |
) |
- |
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
3,671 |
|
1.3 |
% |
$ |
8,516 |
|
3.2 |
% |
|
$ |
30,727 |
|
3.5 |
% |
$ |
40,125 |
|
4.8 |
% |
|
|
|
|
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.18 |
|
|
$ |
0.40 |
|
|
|
$ |
1.49 |
|
|
$ |
1.92 |
|
|
Diluted |
$ |
0.18 |
|
|
$ |
0.39 |
|
|
|
$ |
1.47 |
|
|
$ |
1.87 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
20,191 |
|
|
|
21,118 |
|
|
|
|
20,646 |
|
|
|
20,861 |
|
|
Diluted |
|
20,441 |
|
|
|
21,807 |
|
|
|
|
20,963 |
|
|
|
21,500 |
|
|
Percentages reflected above may not reconcile due
to rounding.
BJ’s Restaurants, Inc. |
Selected Consolidated Balance Sheet
Information |
(Dollars in thousands) |
|
October 1, 2019(unaudited) |
|
January 1, 2019 |
Cash and cash equivalents |
$ |
24,373 |
|
$ |
29,224 |
Total assets (1) |
$ |
1,058,202 |
|
$ |
695,107 |
Total debt |
$ |
158,000 |
|
$ |
95,000 |
Shareholders’ equity |
$ |
286,565 |
|
$ |
309,221 |
(1) Total assets includes $374.1 million of lease right
of use assets, as of the third quarter ended October 1, 2019,
related to the adoption of ASU 2016-02. |
BJ’s Restaurants, Inc. |
Unaudited Supplemental Information |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Third Quarter Ended |
|
Nine Months Ended |
|
October 1, 2019 |
October 2, 2018 |
|
October 1, 2019 |
October 2, 2018 |
Stock-based
compensation (1) |
|
|
|
|
|
|
|
|
|
Labor and benefits |
$ |
685 |
|
0.2 |
% |
$ |
577 |
|
0.2 |
% |
|
$ |
1,698 |
|
0.2 |
% |
$ |
1,699 |
|
0.2 |
% |
General and
administrative |
|
1,476 |
|
0.5 |
|
|
1,600 |
|
0.6 |
|
|
|
4,841 |
|
0.6 |
|
|
4,559 |
|
0.5 |
|
Total stock-based
compensation |
$ |
2,161 |
|
0.8 |
% |
$ |
2,177 |
|
0.8 |
% |
|
$ |
6,539 |
|
0.8 |
% |
$ |
6,258 |
|
0.7 |
% |
|
|
|
|
|
|
|
|
|
|
Operating
Data |
|
|
|
|
|
|
|
|
|
Comparable restaurant sales %
change |
|
(0.3 |
%) |
|
|
6.9 |
% |
|
|
|
1.3 |
% |
|
|
5.5 |
% |
|
Restaurants opened during
period |
|
2 |
|
|
|
1 |
|
|
|
|
5 |
|
|
|
4 |
|
|
Restaurants open at
period-end |
|
207 |
|
|
|
201 |
|
|
|
|
207 |
|
|
|
201 |
|
|
Restaurant operating
weeks |
|
2,681 |
|
|
|
2,604 |
|
|
|
|
7,957 |
|
|
|
7,751 |
|
|
(1)
Percentages represent percent of total revenues.
Note Regarding Non-GAAP Financial Measures
The Company is reporting below certain non-GAAP
financial results and related reconciliations to the corresponding
GAAP financial measures. These non-GAAP measures are not in
accordance with, or a substitute for, measures prepared in
accordance with GAAP, and may be different from non-GAAP measures
used by other companies. These measures should only be used to
evaluate the Company's results of operations in conjunction with
corresponding GAAP measures.
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 operating margin differently than we
do, restaurant level operating 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 third quarter and nine
months ended October 1, 2019 and October 2, 2018 is set forth
below:
Supplemental Financial Information – Restaurant Level
Operating Margin |
(Unaudited, dollars in thousands) |
|
|
|
|
|
Third Quarter Ended |
|
Nine Months Ended |
|
October 1, 2019 |
October 2, 2018 |
|
October 1, 2019 |
October 2, 2018 |
|
Income from operations |
$ |
3,270 |
1.2 |
% |
$ |
7,890 |
2.9 |
% |
|
$ |
32,810 |
3.8 |
% |
$ |
43,383 |
5.2 |
% |
|
General and
administrative |
|
14,272 |
5.1 |
|
|
14,661 |
5.4 |
|
|
|
47,153 |
5.4 |
|
|
45,643 |
5.5 |
|
|
Depreciation and
amortization |
|
18,163 |
6.5 |
|
|
17,686 |
6.5 |
|
|
|
53,644 |
6.2 |
|
|
52,760 |
6.3 |
|
|
Restaurant opening |
|
970 |
0.3 |
|
|
403 |
0.1 |
|
|
|
2,028 |
0.2 |
|
|
1,835 |
0.2 |
|
|
Loss on disposal of
assets |
|
931 |
0.3 |
|
|
865 |
0.3 |
|
|
|
3,618 |
0.4 |
|
|
3,049 |
0.4 |
|
|
Restaurant level operating
margin |
$ |
37,606 |
13.5 |
% |
$ |
41,505 |
15.4 |
% |
|
$ |
139,253 |
16.0 |
% |
$ |
146,670 |
17.5 |
% |
|
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 is a non-GAAP financial measure
that represents the sum of net income, interest expense, income tax
expense, depreciation and amortization, stock-based compensation
expense, other expense (income) and loss on disposal of assets
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) |
|
|
|
|
|
Third Quarter Ended |
|
Nine Months Ended |
|
October 1, 2019 |
October 2, 2018 |
|
October 1, 2019 |
October 2, 2018 |
Net income |
$ |
3,671 |
|
1.3 |
% |
$ |
8,516 |
|
3.2 |
% |
|
$ |
30,727 |
|
3.5 |
% |
$ |
40,125 |
|
4.8 |
% |
Interest expense,
net |
|
1,174 |
|
0.4 |
|
|
1,058 |
|
0.4 |
|
|
|
3,310 |
|
0.4 |
|
|
3,826 |
|
0.5 |
|
Income tax (benefit)
expense |
|
(1,450 |
) |
(0.5 |
) |
|
(1,445 |
) |
(0.5 |
) |
|
|
136 |
|
- |
|
|
(348 |
) |
- |
|
Depreciation and
amortization |
|
18,163 |
|
6.5 |
|
|
17,686 |
|
6.5 |
|
|
|
53,644 |
|
6.2 |
|
|
52,760 |
|
6.3 |
|
Stock-based
compensation expense |
|
2,161 |
|
0.8 |
|
|
2,177 |
|
0.8 |
|
|
|
6,539 |
|
0.8 |
|
|
6,258 |
|
0.7 |
|
Other (income),
net |
|
(125 |
) |
- |
|
|
(239 |
) |
(0.1 |
) |
|
|
(1,363 |
) |
(0.2 |
) |
|
(220 |
) |
- |
|
Loss on disposal of
assets |
|
931 |
|
0.3 |
|
|
865 |
|
0.3 |
|
|
|
3,618 |
|
0.4 |
|
|
3,049 |
|
0.4 |
|
Adjusted EBITDA |
$ |
24,525 |
|
8.8 |
% |
$ |
28,618 |
|
10.6 |
% |
|
$ |
96,611 |
|
11.1 |
% |
$ |
105,450 |
|
12.6 |
% |
ASU 2016-02 Reconciliation
The following table illustrates the impact from
the adoption of ASU 2016-02 on our results for the third quarter
and nine months ended October 1, 2019. The Company believes the
non-GAAP financial measure and reconciliation below 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 2016-02 was not applied.
BJ’s Restaurants, Inc. |
Supplemental Financial Information –
ASU 2016-02, Leases, Reconciliation |
(Dollars in thousands except for per
share data) |
|
|
|
|
Third Quarter Ended |
|
|
October 1, 2019 |
October 2, 2018 |
|
NewStandard |
TotalAdjustments |
|
PreviousStandard |
PreviousStandard |
Revenues |
$ |
278,739 |
|
$ |
- |
|
|
$ |
278,739 |
|
$ |
270,268 |
|
Restaurant operating costs (excluding depreciation and
amortization): |
|
|
|
|
|
Cost of sales |
|
71,552 |
|
|
96 |
|
(1) |
|
71,648 |
|
|
68,600 |
|
Labor and benefits |
|
104,660 |
|
|
- |
|
|
|
104,660 |
|
|
99,061 |
|
Occupancy and operating |
|
64,921 |
|
|
(677 |
) |
(2) |
|
64,244 |
|
|
61,102 |
|
General and administrative |
|
14,272 |
|
|
- |
|
|
|
14,272 |
|
|
14,661 |
|
Depreciation and amortization |
|
18,163 |
|
|
- |
|
|
|
18,163 |
|
|
17,686 |
|
Restaurant opening |
|
970 |
|
|
- |
|
|
|
970 |
|
|
403 |
|
Loss on disposal of assets |
|
931 |
|
|
- |
|
|
|
931 |
|
|
865 |
|
Total costs and expenses |
|
275,469 |
|
|
(581 |
) |
|
|
274,888 |
|
|
262,378 |
|
Income from operations |
|
3,270 |
|
|
581 |
|
|
|
3,851 |
|
|
7,890 |
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
Interest expense, net |
|
(1,174 |
) |
|
- |
|
|
|
(1,174 |
) |
|
(1,058 |
) |
Other income, net |
|
125 |
|
|
- |
|
|
|
125 |
|
|
239 |
|
Total other expense |
|
(1,049 |
) |
|
- |
|
|
|
(1,049 |
) |
|
(819 |
) |
Income before income taxes |
|
2,221 |
|
|
581 |
|
|
|
2,802 |
|
|
7,071 |
|
|
|
|
|
|
|
Income tax benefit |
|
(1,450 |
) |
|
- |
|
|
|
(1,450 |
) |
|
(1,445 |
) |
|
|
|
|
|
|
Net income |
$ |
3,671 |
|
$ |
581 |
|
|
$ |
4,252 |
|
$ |
8,516 |
|
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
Basic |
$ |
0.18 |
|
$ |
0.03 |
|
|
$ |
0.21 |
|
$ |
0.40 |
|
Diluted |
$ |
0.18 |
|
$ |
0.03 |
|
|
$ |
0.21 |
|
$ |
0.39 |
|
Weighted average number of shares outstanding: |
|
|
|
|
|
Basic |
|
20,191 |
|
|
20,191 |
|
|
|
20,191 |
|
|
21,118 |
|
Diluted |
|
20,441 |
|
|
20,441 |
|
|
|
20,441 |
|
|
21,807 |
|
(1) |
|
Prior to
the adoption of ASU 2016-02, this amount was recorded as “Cost of
sales” expenses. Amount represents contract considerations, which
is now required to be allocated to the lease and non-lease
components and recorded as “Occupancy and operating” expenses. |
(2) |
|
Amount
primarily represents the amortization of deferred sales-leaseback
gain coupled with the contract consideration noted in footnote (1).
Prior to the adoption of ASU 2016-02, sales-leaseback gains were
deferred and amortized over the life of the lease as a credit to
“Occupancy and operating” expenses. |
BJ’s Restaurants, Inc. |
Supplemental Financial Information –
ASU 2016-02, Leases, Reconciliation |
(Dollars in thousands except for per
share data) |
|
|
|
|
Nine Months Ended |
|
|
October 1, 2019 |
October 2, 2018 |
|
NewStandard |
TotalAdjustments |
|
PreviousStandard |
PreviousStandard |
Revenues |
$ |
870,383 |
|
$ |
- |
|
|
$ |
870,383 |
|
$ |
836,425 |
|
Restaurant operating costs (excluding depreciation and
amortization): |
|
|
|
|
|
Cost of sales |
|
221,739 |
|
|
284 |
|
(1) |
|
222,023 |
|
|
210,597 |
|
Labor and benefits |
|
318,386 |
|
|
- |
|
|
|
318,386 |
|
|
301,480 |
|
Occupancy and operating |
|
191,005 |
|
|
(1,937 |
) |
(2) |
|
189,068 |
|
|
177,678 |
|
General and administrative |
|
47,153 |
|
|
- |
|
|
|
47,153 |
|
|
45,643 |
|
Depreciation and amortization |
|
53,644 |
|
|
- |
|
|
|
53,644 |
|
|
52,760 |
|
Restaurant opening |
|
2,028 |
|
|
- |
|
|
|
2,028 |
|
|
1,835 |
|
Loss on disposal of assets |
|
3,618 |
|
|
- |
|
|
|
3,618 |
|
|
3,049 |
|
Total costs and expenses |
|
837,573 |
|
|
(1,653 |
) |
|
|
835,920 |
|
|
793,042 |
|
Income from operations |
|
32,810 |
|
|
1,653 |
|
|
|
34,463 |
|
|
43,383 |
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
Interest expense, net |
|
(3,310 |
) |
|
- |
|
|
|
(3,310 |
) |
|
(3,826 |
) |
Other income, net |
|
1,363 |
|
|
- |
|
|
|
1,363 |
|
|
220 |
|
Total other expense |
|
(1,947 |
) |
|
- |
|
|
|
(1,947 |
) |
|
(3,606 |
) |
Income before income taxes |
|
30,863 |
|
|
1,653 |
|
|
|
32,516 |
|
|
39,777 |
|
|
|
|
|
|
|
Income tax expense (benefit) |
|
136 |
|
|
- |
|
|
|
136 |
|
|
(348 |
) |
|
|
|
|
|
|
Net income |
$ |
30,727 |
|
$ |
1,653 |
|
|
$ |
32,380 |
|
$ |
40,125 |
|
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
Basic |
$ |
1.49 |
|
$ |
0.08 |
|
|
$ |
1.57 |
|
$ |
1.92 |
|
Diluted |
$ |
1.47 |
|
$ |
0.08 |
|
|
$ |
1.54 |
|
$ |
1.87 |
|
Weighted average number of shares outstanding: |
|
|
|
|
|
Basic |
|
20,646 |
|
|
20,646 |
|
|
|
20,646 |
|
|
20,861 |
|
Diluted |
|
20,963 |
|
|
20,963 |
|
|
|
20,963 |
|
|
21,500 |
|
(1) |
|
Prior to the adoption of ASU 2016-02, this amount was recorded
as “Cost of sales” expenses. Amount represents contract
considerations, which is now required to be allocated to the lease
and non-lease components and recorded as “Occupancy and operating”
expenses. |
(2) |
|
Amount primarily represents the amortization of deferred
sales-leaseback gain coupled with the contract consideration noted
in footnote (1). Prior to the adoption of ASU 2016-02,
sales-leaseback gains were deferred and amortized over the life of
the lease as a credit to “Occupancy and operating” expenses. |
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